Document:

U.S. $352,600,000.00

                                 LOAN AGREEMENT

                                     BETWEEN

                      WELLSFORD/WHITEHALL HOLDINGS, L.L.C.,

                                   AS BORROWER

                                       AND

                      GENERAL ELECTRIC CAPITAL CORPORATION,

                                    AS LENDER

                                  JUNE 25, 2001

                         (WHITEHALL/WELLSFORD PORTFOLIO)

                                TABLE OF CONTENTS

                                                                          Page

ARTICLE 1         CERTAIN DEFINITIONS........................................1
Section 1.1       Certain Definitions........................................1

ARTICLE 2         LOAN TERMS................................................19
Section 2.1       The Loan Advances.........................................19
Section 2.2       Interest Rate; Late Charge................................23
Section 2.3       Terms of Payment..........................................23
Section 2.4       Collateral; Releases of Collateral........................26
Section 2.5       Releases of Nomura Properties.............................29
Section 2.6       Adjustments to Adjusted Loan Basis........................31
Section 2.7       Capital Adequacy; Increased Costs; Illegality.............32
Section 2.8       Application of Nomura Provisions Prior to First Advance
                  from Nomura Holdback......................................32
Section 2.9       Gateway Tower Reserve.....................................33
Section 2.10      Transfer of Gateway Tower Property to Borrower............33

ARTICLE 3         INSURANCE, CONDEMNATION, DEPOSITS AND RESERVES............35
Section 3.1       Insurance.................................................35
Section 3.2       Casualty; Use and Application of Insurance Proceeds.......37
Section 3.3       Condemnation..............................................40
Section 3.4       Deposits..................................................41

ARTICLE 4         ENVIRONMENTAL MATTERS.....................................43
Section 4.1       Certain Definitions.......................................43
Section 4.2       Representations and Warranties on Environmental Matters...44
Section 4.3       Covenants on Environmental Matters........................45
Section 4.4       No Waiver.................................................47

ARTICLE 5         LEASING MATTERS...........................................48
Section 5.1       Representations and Warranties on Leases..................48
Section 5.2       General Lease Requirements................................48
Section 5.3       Covenants.................................................49
Section 5.4       Additional Covenants Regarding Material Leases............49
Section 5.5       Lender's Consent to Deviations............................50
Section 5.6       Security Deposits; Lease Buy Out Consideration............50
Section 5.7       Subordination Agreements; Tenant Estoppels................52

ARTICLE 6         REPRESENTATIONS AND WARRANTIES............................53
Section 6.1       Organizational Existence; Compliance with Law.............53
Section 6.2       Organizational Power; Authorization; Enforceable Obligations
                  ..........................................................53
Section 6.3       Ownership of Collateral; Liens............................54
Section 6.4       Condemnation..............................................54
Section 6.5       Casualty..................................................54
Section 6.6       Material Agreements.......................................54
Section 6.7       Property Compliance.......................................54
Section 6.8       Access....................................................55
Section 6.9       Utility Services..........................................55
Section 6.10      Permits...................................................55
Section 6.11      No Default................................................55
Section 6.12      Other Ventures/Single Purpose Entity......................55
Section 6.13      Investment Company Act....................................55
Section 6.14      Margin Regulations........................................55
Section 6.15      Taxes.....................................................56
Section 6.16      ERISA.....................................................56
Section 6.17      No Litigation.............................................56
Section 6.18      Brokers...................................................56
Section 6.19      Employment and Labor Agreements...........................56
Section 6.20      Liens.....................................................56
Section 6.21      Full Disclosure...........................................57
Section 6.22      Property Documents........................................57
Section 6.23      Rent Roll.................................................57
Section 6.24      Ground Lease Representations..............................57
Section 6.25      Property Information......................................57
Section 6.26      Affiliate Indebtedness....................................57
Section 6.27      Equity Investment in the Properties.......................57
Section 6.28      Shattuck Office Center Property...........................58

ARTICLE 7         FINANCIAL REPORTING AND INFORMATION.......................58
Section 7.1       Financial Statements and Notices..........................58
Section 7.2       Other Information.........................................59
Section 7.3       Audits....................................................59
Section 7.4       Communication with Accountants............................60

ARTICLE 8         AFFIRMATIVE COVENANTS.....................................60
Section 8.1       Maintenance of Existence and Conduct of Business..........60
Section 8.2       Payment of Indebtedness...................................60
Section 8.3       Books and Records.........................................61
Section 8.4       Litigation................................................61
Section 8.5       Compliance with Law.......................................62
Section 8.6       Maintenance of Property...................................62
Section 8.7       Agreements................................................63
Section 8.8       Employee Plans............................................63
Section 8.9       Access....................................................63
Section 8.10      Taxes on Payments or Security.............................63
Section 8.11      Enforcement...............................................65
Section 8.12      Asset Management..........................................65
Section 8.13      Maintenance of Representations; Supplemental Disclosure...65
Section 8.14      Property Documents; Asset Business Plans..................66
Section 8.15      Interest Rate Cap Agreement...............................66
Section 8.16      Indemnification...........................................66
Section 8.17      Impaired Property.........................................66
Section 8.18      Curing....................................................67
Section 8.19      Property-Specific Covenants...............................67
Section 8.20      Compliance With Nomura Loan Documents.....................67
Section 8.21      Shattuck Office Center Property...........................68

ARTICLE 9         NEGATIVE COVENANTS........................................68
Section 9.1       Mergers, Etc..............................................68
Section 9.2       Investments; Loans and Advances...........................68
Section 9.3       Indebtedness..............................................68
Section 9.4       Structure; Transfers......................................69
Section 9.5       Maintenance of Business...................................70
Section 9.6       Affiliate Transactions....................................70
Section 9.7       Liens.....................................................71
Section 9.8       Events of Default.........................................71
Section 9.9       Ground Leases.............................................72
Section 9.10      Material Agreements.......................................72
Section 9.11      Limitation on Securities Issuances........................72
Section 9.12      Approval Rights of Borrower With Respect to the Nomura
                    Borrower ...............................................72

ARTICLE 10        EVENTS OF DEFAULT; RIGHTS AND REMEDIES....................73
Section 10.1      Events of Default.........................................73
Section 10.2      Remedies..................................................76
Section 10.3      Waivers by Borrower.......................................77
Section 10.4      Right of Set-Off..........................................77

ARTICLE 11        MISCELLANEOUS.............................................77
Section 11.1      Notices...................................................77
Section 11.2      Amendments and Waivers....................................80
Section 11.3      Limitation on Interest....................................80
Section 11.4      Invalid Provisions........................................80
Section 11.5      Reimbursement of Expenses.................................80
Section 11.6      Approvals; Third Parties; Conditions......................81
Section 11.7      Lender Not in Control; No Partnership/Membership..........82
Section 11.8      Time of the Essence.......................................82
Section 11.9      Successors and Assigns....................................82
Section 11.10     Renewal, Extension or Rearrangement.......................83
Section 11.11     Waivers...................................................83
Section 11.12     Cumulative Rights.........................................83
Section 11.13     Construction..............................................83
Section 11.14     Phrases...................................................84
Section 11.15     Exhibits and Schedules....................................84
Section 11.16     Titles of Articles, Sections and Subsections..............84
Section 11.17     Publicity.................................................84
Section 11.18     Survival..................................................84
Section 11.19     GOVERNING LAW.............................................85
Section 11.20     Entire Agreement..........................................85
Section 11.21     Counterparts..............................................85
Section 11.22     WAIVER OF JURY TRIAL......................................85
Section 11.23     Authorized Signature......................................86
Section 11.24     Power of Attorney.........................................86

ARTICLE 12        LIMITATIONS ON LIABILITY..................................86
Section 12.1      Limitation on Liability...................................86
Section 12.2      Limitation on Liability of Lender's Officers, Employees, Etc
                                                  ..........................87

                                    SCHEDULES

SCHEDULE 1.1(A)   -    PROPERTY INFORMATION

SCHEDULE 1.1(B)   -     BASIS ALLOCATIONS

SCHEDULE 2.1      -    ADVANCE CONDITIONS

SCHEDULE 2.1(5)   -    WORKING CAPITAL BUDGETS FOR PROPERTIES

SCHEDULE 4.2      -    ENVIRONMENTAL REPORTS

SCHEDULE 5.1(A)   -    TENANT DELINQUENCIES

SCHEDULE 5.1(B)   -    NOTICES OF TERMINATION OR DEFAULT

SCHEDULE 5.1(C)   -    PURCHASE OPTIONS

SCHEDULE 5.1(D)   -    LEASE TERMINATION RIGHTS

SCHEDULE 5.1(E)   -    LEASING COMMISSIONS OWING

SCHEDULE 5.1(F)   -    PREPAID RENTS

SCHEDULE 6.4      -    CONDEMNATION PROCEEDINGS

SCHEDULE 6.5      -    CASUALTIES AND FLOOD ZONE PROPERTIES

SCHEDULE 6.6      -    MATERIAL AGREEMENTS

SCHEDULE 6.7      -    PROPERTY COMPLIANCE

SCHEDULE 6.10     -    PERMITS

SCHEDULE 6.17     -    LITIGATION

SCHEDULE 6.26     -    AFFILIATE INDEBTEDNESS

SCHEDULE 6.27     -    CASH EQUITY INVESTMENT

SCHEDULE 8.19     -    PROPERTY-SPECIFIC COVENANTS

SCHEDULE 11.23    -    AUTHORIZED SIGNATORIES

                            EXHIBITS

EXHIBIT "A"        -   FORM OF NOTICE OF ADDITIONAL ADVANCE

EXHIBIT "B"        -   FORM OF DEPOSIT ACCOUNT AGREEMENT

EXHIBIT "C"        -   FORM OF COLLATERAL ASSIGNMENT OF INTEREST RATE CAP
                       AGREEMENT

EXHIBIT "D-1"      -   PROPERTY DESCRIPTION (Cutler Lake Corp. Center)

EXHIBIT "D-2"      -   PROPERTY DESCRIPTION (Shattuck Office Center)

EXHIBIT "D-3"      -   PROPERTY DESCRIPTION (60 Turner Street)

EXHIBIT "D-4"      -   PROPERTY DESCRIPTION (24 Federal/3 P.O. Square)

EXHIBIT "D-5"      -   PROPERTY DESCRIPTION (Gateway Tower)

EXHIBIT "D-6"      -   PROPERTY DESCRIPTION (300 Atrium)

EXHIBIT "D-7"      -   PROPERTY DESCRIPTION (400 Atrium)

EXHIBIT "D-8"      -   PROPERTY DESCRIPTION (500 Atrium)

EXHIBIT "D-9"      -   PROPERTY DESCRIPTION (700 Atrium)

EXHIBIT "D-10"     -   PROPERTY DESCRIPTION (Mountain Heights I & II)

EXHIBIT "D-11"     -   PROPERTY DESCRIPTION (105 Challenger Road)

EXHIBIT "D-12"     -   PROPERTY DESCRIPTION (Greenbrook Corporate Center)

EXHIBIT "D-13"     -   PROPERTY DESCRIPTION (Campus Drive)

EXHIBIT "D-14"     -   PROPERTY DESCRIPTION (180/188 Mount Airy Road)

EXHIBIT "D-15"     -   PROPERTY DESCRIPTION (Chatham Executive Center)

EXHIBIT "D-16"     -   PROPERTY DESCRIPTION (Garden State Convention Center)

EXHIBIT "D-17"     -   PROPERTY DESCRIPTION (1800 Valley Road)

EXHIBIT "D-18"     -   PROPERTY DESCRIPTION (Wells Research Center)

EXHIBIT "D-19"     -   PROPERTY DESCRIPTION (7/57 Wells Avenue)

EXHIBIT "D-20"     -   PROPERTY DESCRIPTION (Dedham Place)

EXHIBIT "D-21"     -   PROPERTY DESCRIPTION (333 Elm Street)

EXHIBIT "D-22"     -   PROPERTY DESCRIPTION (128 Tech Center)

EXHIBIT "D-23"     -   PROPERTY DESCRIPTION (201 University Avenue)

                              LIST OF DEFINED TERMS

                                                                           Page

Adjusted Annual Debt Service............................................... 1
Adjusted Loan Basis........................................................ 2
Adjusted Operating Cash Flow............................................... 2
Advance   2
Affiliate.................................................................. 3
Agreement.................................................................. 3
Agreement Regarding Asset Management....................................... 3
Ancillary Agreements....................................................... 3
Approved Plans............................................................. 3
Architect.................................................................. 3
Asset Business Plan........................................................ 3
Asset Management Fee....................................................... 3
Asset Manager.............................................................. 3
Assignment of Leases....................................................... 3
Borrower  1
Borrower Party............................................................. 3
Borrower Properties........................................................ 3
Borrower's Interest........................................................33
Borrowing Date Certificate................................................. 4
British Banker Association Interest Settlement Rates.......................11
Business Day............................................................... 4
Capital Expenditures....................................................... 4
Capital Lease.............................................................. 4
Capital Lease Obligation................................................... 4
Capital Transaction........................................................ 4
Cash Management Agreement.................................................. 4
Cash On Cash Limit Amount.................................................. 4
Cash On Cash Return........................................................ 5
Challenger Road Ground Lease............................................... 5
Challenger Road Property................................................... 6
Charges   6
Charges Account............................................................ 6
Closing Date............................................................... 6
Code      6
Collateral................................................................. 6
Collateral Assignment of Contracts......................................... 6
Collateral Assignment of Interest Rate Cap Agreement....................... 6
Collateral Documents....................................................... 6
Complete Taking............................................................ 6
Contract Rate.............................................................. 6
Debt Service Coverage Ratio................................................ 6
Debt Service Coverage Ratio Limit Amount................................... 7
Deed of Trust.............................................................. 7
Default Property........................................................... 7
Default Rate............................................................... 7
Depository Institution.....................................................33
Designated Property........................................................ 7
Draw Event................................................................. 8
Early Termination Date..................................................... 8
Environmental Laws......................................................... 8
Environmental Liabilities and Costs........................................ 8
Environmental Site Assessment.............................................. 8
ERISA     8
Eurodollar Business Day....................................................12
Event of Default........................................................... 8
Extension Notice........................................................... 8
Extension Period...........................................................23
Federal Reserve Board...................................................... 8
Fiscal Year................................................................ 8
GAAP      8
Gateway Pledge Agreement................................................... 8
Gateway Tower Guaranty..................................................... 8
Gateway Tower Holdback..................................................... 9
Gateway Tower Owner........................................................ 9
Gateway Tower Property..................................................... 9
Gateway Tower Reserve...................................................... 9
GECC      9
Governmental Authority..................................................... 9
Gross Receipts............................................................. 9
Guaranteed Indebtedness.................................................... 9
Hazardous Materials........................................................10
Hazardous Substances Indemnity Agreement...................................10
Holdbacks..................................................................10
Impaired Property..........................................................10
Indebtedness...............................................................10
Indemnification Agreement..................................................10
Indemnitors' Net Worth.....................................................10
Initial Advance............................................................11
Interest Payment Date......................................................11
IRC      11
IRS      11
Joinder  11
Laws     11
Lease Buy Out Consideration................................................11
Leases   11
Leasing Costs..............................................................11
Lender   11
LIBOR Rate.................................................................11
Lien     12
Loan.......................................................................12
Loan Documents.............................................................12
Loan Year..................................................................12
Major Work.................................................................12
Material Adverse Effect....................................................12
Material Agreement.........................................................12
Material Lease.............................................................12
Material Leases............................................................49
Maturity Date..............................................................13
Maximum Liability..........................................................13
Maximum Loan Amount........................................................13
Maximum Working Capital Amount.............................................13
Mount Airy Holdback........................................................13
NACC     13
Net Capital Proceeds.......................................................13
Nomura Borrower............................................................13
Nomura Consent and Estoppel................................................13
Nomura Holdback............................................................13
Nomura Lender..............................................................13
Nomura Loan................................................................13
Nomura Loan Agreement......................................................13
Nomura Loan Documents......................................................14
Nomura Note................................................................14
Nomura Payment.............................................................14
Nomura Properties..........................................................14
Nomura Release Notice......................................................29
Note     14
Notice of Additional Advance...............................................14
Obligations................................................................14
Operating Agreement........................................................14
Operating Cash Flow........................................................14
Operating Expenses.........................................................15
Other Taxes................................................................15
Partial Release Notice.....................................................15
Permitted Encumbrances.....................................................15
Person   16
Plan     16
Potential Default..........................................................16
primary obligations........................................................ 9
primary obligor............................................................ 9
Properties.................................................................16
Property Basis.............................................................16
Property Documents.........................................................16
Refinance..................................................................16
Release  16
Release Payment............................................................16
Remedial Action............................................................16
Reserves 16
Security Deposits..........................................................17
Shattuck Office Center Holdback............................................17
Shattuck Office Center Property............................................17
State    17
Taxes    17
Tenant   17
Tenant Allowances..........................................................17
Tenant Deposit Letter of Credit............................................17
Tenant Improvements........................................................17
Term     17
Title Company..............................................................17
Title Policy...............................................................18
Transfers..................................................................69
WAH Pledge Agreement.......................................................18
WASH Manager...............................................................18
WCPT     18
Wells Avenue Holdings......................................................18
Wellsford..................................................................18
Whitehall Parties..........................................................18
WHWEL    18
Work     18
Working Capital Advance....................................................18
Working Capital Advance Allocation.........................................18
Working Capital Budgets....................................................18
WP Commercial..............................................................18
WWG      19
WWG Operating Agreement....................................................19
W/WGH    19
WWPII    19
WXI/WWG  19

                                     JOINDER

Maximum Liability...........................................................1
Nonrecourse Carve-Outs......................................................1
Third Party Obligor.........................................................1

                                 LOAN AGREEMENT

     This Loan  Agreement  ("AGREEMENT")  is  entered  into as of June 25,  2001
between GENERAL ELECTRIC CAPITAL CORPORATION, a New York corporation ("LENDER"),
and WELLSFORD/WHITEHALL  HOLDINGS,  L.L.C., a Delaware limited liability company
("BORROWER").  Capitalized  terms used in the  Recitals  shall have the meanings
ascribed to such terms hereinbelow.

                                    RECITALS

     WHEREAS,  Borrower  desires to obtain the Loan from Lender for the purposes
of (i)  financing  or  refinancing  the  Properties  to repay  certain  existing
indebtedness  and to return a portion of  Borrower's  equity,  and (ii)  funding
Working Capital Advances;

     WHEREAS,  Borrower and Lender desire to set forth the terms and  conditions
of the Loan and of each Advance made hereunder;

     NOW,  THEREFORE,  in consideration of the mutual promises  contained herein
and the payment of $10 and other good and  valuable  consideration,  the receipt
and sufficiency of which are hereby  acknowledged,  Lender and Borrower agree as
follows:

                                    ARTICLE 1

                               CERTAIN DEFINITIONS

SECTION 1.1 CERTAIN  DEFINITIONS.  As used herein,  the following terms have the
meanings indicated:

(1)  "ADJUSTED  ANNUAL  DEBT  SERVICE"  means,  as of the  date of  calculation,
     subject to the adjustment set forth below in this paragraph, the sum of (a)
     annual debt service on the Nomura Loan (taking into account, in the case of
     a request to permit the release of a Nomura  Property  from the Nomura Loan
     Documents,  the  reduction in such annual debt service  resulting  from the
     reduction in the Nomura Loan in  connection  with such  release),  plus (b)
     annual debt service at the then  current  interest  rate payable  under the
     Loan,  calculated on the outstanding balance of the Loan on the calculation
     date  (taking  into  account,  in the case of a release of a Property,  the
     application of the Release Payment or Nomura Payment, as applicable, to the
     outstanding  balance of the Loan),  provided  in each case that such annual
     debt  service on the Loan shall be reduced by amounts that would be payable
     (based on such  interest  rate) to Borrower  under any interest  rate swap,
     cap,  collar or similar  agreement  entered into by Borrower in  connection
     with the Loan,  provided  the  benefits  of such  agreement  are pledged to
     Lender as further security for the Loan. Any calculation of Adjusted Annual
     Debt Service  during,  or as a condition to, an extension of the Term shall
     include in the  amount of annual  debt  service  on the Loan the  principal
     amortization  payments to be made for such  period,  as required by Section
     2.3(2).

(2)  "ADJUSTED LOAN BASIS" means,  with respect to any Property,  the amount set
     forth  opposite the  reference to such  Property in Schedule  1.1(B) hereto
     under the caption  "Loan Basis," and as such Loan Basis may be increased or
     decreased pursuant to the terms hereof.

(3)  "ADJUSTED  OPERATING  CASH FLOW" shall mean, as of any date, (a) cumulative
     annualized Gross Receipts from all Properties,  based on Tenants who are in
     occupancy and current on their rental and other payment  obligations  as of
     such date, less (b) cumulative  Operating Expenses (excluding debt service)
     for all Properties for the twelve (12)  calendar-month  period prior to the
     date of calculation;  provided that the  calculation of Adjusted  Operating
     Cash Flow shall exclude Gross Receipts from, or Operating  Expenses related
     to, (i) any interest rate swap, cap, collar,  or similar  agreement entered
     into by  Borrower  in  connection  with the Loan,  and (ii) any  Properties
     previously released or to be released in connection with the calculation of
     Adjusted Operating Cash Flow.  Notwithstanding  the foregoing,  no lump sum
     nonrecurring  Operating Expense or Gross Receipt, as reasonably  determined
     by Lender,  shall be included in determining  annualized Adjusted Operating
     Cash Flow for purposes of this definition.  Similarly, the determination of
     annualized  Adjusted  Operating  Cash Flow for  purposes of this  paragraph
     shall  be  adjusted,   as  reasonably  determined  by  Lender,  to  reflect
     annualized  decreases or increases in Operating  Expenses or Gross Receipts
     resulting from  anticipated  major events.  The  determination  of Adjusted
     Operating Cash Flow for purposes of this definition shall be based upon the
     lesser of market  occupancy or the actual  occupancy  rate of each Property
     (but in no event  greater  than a 95%  occupancy  rate)  unless  the entire
     Property is leased to a single  Tenant  with  investment  grade  credit (in
     which case no occupancy adjustment shall be made), and shall assume as part
     of  Operating  Expenses (A) the greater of the actual  property  management
     fees or a fee equal to 3% of gross rental receipts from the Properties, and
     (B) annual  replacement  reserves of $0.25 per square foot,  or such higher
     replacement reserve amounts as Lender's engineering  consultant  reasonably
     determines are  appropriate.  In addition,  based upon, among other things,
     the  operating  statements  provided to Lender by Borrower (if  available),
     Lender shall consider such adjustments to the annualized Adjusted Operating
     Cash Flow as it deems reasonably appropriate, which considerations may take
     into account  nonrecurring  periods where one or more  Properties  were not
     generating  gross  receipts or were  generating  significantly  lower gross
     receipts.  Solely for the purposes of calculating Cash On Cash Limit Amount
     and Debt Service  Coverage Ratio Limit Amount,  the calculation of Adjusted
     Operating  Cash  Flow  shall  be  further  adjusted,  as set  forth  in the
     definitions  of Cash On Cash Limit Amount and Debt Service  Coverage  Ratio
     Limit Amount.

(4)  "ADVANCE"  means  each  advance  of the Loan  made by  Lender  to  Borrower
     pursuant  to and in  accordance  with  the  terms  and  conditions  of this
     Agreement,  including the Initial Advance, each Working Capital Advance and
     each Advance from any Holdback.

(5)  "AFFILIATE"  means, with respect to any Person, any Person that directly or
     indirectly through one or more intermediaries  controls or is controlled by
     or is under common control with such Person.

(6)  "AGREEMENT"  means this Loan  Agreement,  together  with all  Exhibits  and
     Schedules hereto.

(7)  "AGREEMENT  REGARDING ASSET MANAGEMENT" means the Agreement Regarding Asset
     Management  executed by WWG and Asset  Manager in favor of Lender,  in form
     and substance satisfactory to Lender.

(8)  "ANCILLARY  AGREEMENTS"  means  any  supplemental  agreement,  undertaking,
     instrument,  document or other writing  executed by Borrower as a condition
     to Advances  under this  Agreement  or otherwise  in  connection  herewith,
     including the Loan Documents.

(9)  "APPROVED PLANS" has the meaning set forth in Section 3.2 hereof.

(10) "ARCHITECT"  means any  architect  and/or  inspecting  engineer,  chosen by
     Borrower or the Nomura Borrower and reasonably satisfactory to Lender, that
     is retained in connection with any Work or the  construction of any capital
     improvements or Tenant Improvements.

(11) "ASSET  BUSINESS  PLAN"  means a  "Business  Plan"  as  defined  in the WWG
     Operating Agreement.

(12) "ASSET  MANAGEMENT  FEE"  means the  portion  of the asset  management  fee
     payable to Asset  Manager  pursuant to Section  9.2(a) of the WWG Operating
     Agreement which is fairly allocable to the Properties.

(13) "ASSET  MANAGER"  means  WP  Commercial,  or its  permitted  successors  or
     assigns, or any replacement asset manager reasonably acceptable to Lender.

(14) "ASSIGNMENT  OF LEASES" means each first  priority  assignment of rents and
     leases  executed by Borrower  (or, as to the Gateway  Tower  Property,  the
     Gateway  Tower  Owner) for the benefit of Lender with respect to a Borrower
     Property, in form and substance satisfactory to Lender.

(15) "BORROWER PARTY" means each Whitehall Party, Wellsford, WWPII and WWG.

(16) "BORROWER PROPERTIES" means, collectively,  (a) the properties described in
     Exhibit "D-1" and Exhibits "D-3" through "D-17" attached hereto, (b) if and
     when the Shattuck  Office Center  Holdback is funded to (or for the benefit
     of)  Borrower,  the Shattuck  Office  Center  Property,  and (c) as to each
     property  described  in  clauses  (a) and (b) above,  all other  "Property"
     described in the Deed of Trust encumbering such property.

(17) "BORROWING DATE  CERTIFICATE"  means a certificate  executed by Borrower in
     favor of Lender,  in form and substance  satisfactory  to Lender,  in which
     Borrower  shall  confirm  certain  matters   regarding   Borrower  and  the
     Properties as of the Closing Date.

(18) "BUSINESS  DAY" means a day other than a  Saturday,  a Sunday,  or a day on
     which  national  banks  located  in the  State of New York are not open for
     general banking business.

(19) "CAPITAL  EXPENDITURES"  means all  commercially  reasonable  payments  for
     necessary and customary  items for or work to any Property,  which would be
     classified as capital expenditures under GAAP.

(20) "CAPITAL LEASE" means,  with respect to any Person, a lease of any property
     (whether  real,  personal  or mixed) by such  Person  as  lessee  that,  in
     accordance  with  GAAP,  either  would be  required  to be  classified  and
     accounted  for as a  capital  lease on a  balance  sheet of such  Person or
     otherwise be disclosed as such in a note to such balance sheet.

(21) "CAPITAL LEASE  OBLIGATION"  means,  with respect to any Capital Lease, the
     amount of the obligation of the lessee  thereunder that, in accordance with
     GAAP,  would  appear on a balance  sheet of such  lessee in respect of such
     Capital  Lease or  otherwise  be disclosed as a liability in a note to such
     balance sheet.

(22) "CAPITAL  TRANSACTION"  means,  with  respect to any Property (a) a sale or
     refinancing of the whole of such  Property,  (b) an event giving rise to an
     insurance  recovery or a  condemnation  award to the extent such  insurance
     recovery or  condemnation  award exceeds the actual  out-of-pocket  cost of
     repair or restoration to such Property or the portion  thereof  affected by
     the event which gave rise to such insurance recovery or condemnation award,
     (c) a Complete Taking or (d) any financing or refinancing of, or sale of, a
     partial  interest in such  Property,  if permitted  under the terms of this
     Agreement.

(23) "CASH MANAGEMENT AGREEMENT" means the Cash Management Agreement executed by
     Borrower, the Nomura Borrower, a national banking association acceptable to
     Lender,  and Lender,  together  with the Consent and  Agreement  of LaSalle
     attached  thereto  executed  by  LaSalle  National  Bank,  all in form  and
     substance satisfactory to Lender.

(24) "CASH ON CASH LIMIT  AMOUNT"  means,  (a) during the first Loan Year, as of
     the date of  calculation,  the Loan  balance  resulting in a 10.50% Cash On
     Cash Return,  calculated by  subtracting  (i) the Nomura Loan balance as of
     such date,  from (ii) the amount  obtained  by  dividing  (A) the amount of
     Adjusted  Operating  Cash  Flow  which  would  be used  as of such  date in
     calculating  Cash On Cash  Return by (B)  .1050,  and (b) during the second
     Loan Year, as of the date of calculation,  the Loan balance resulting in an
     11.50% Cash On Cash Return,  calculated by subtracting  (i) the Nomura Loan
     balance as of such date,  from (ii) the amount obtained by dividing (A) the
     amount of  Adjusted  Operating  Cash Flow which  would be used as of such a
     date in  calculating  Cash On Cash  Return by (B) .1150.  For  purposes  of
     calculating  the Cash On Cash  Limit  Amount  in  connection  with  Working
     Capital  Advances for Tenant  Improvements  and/or Leasing Costs associated
     with a new Lease,  the  determination  of the Adjusted  Operating Cash Flow
     shall include the projected  income and expenses  associated  with such new
     Lease,  as if the Tenant  under such new Lease was in  occupancy,  provided
     that if such new Lease provides the Tenant with any free rent period at the
     beginning  of the lease term,  then such Lease shall not be included in any
     calculations  until the Tenant is in  occupancy  and has  commenced  paying
     regular  monthly rent. The calculation of Cash On Cash Limit Amount is also
     expressed by the following formula:

                      Adjusted Operating Cash Flow - [Nomura Loan balance]
       Loan balance = ----------------------------------------------------
                                     .105*

     * .115 after the first Loan Year

(25) "CASH ON CASH RETURN" means, as of the date of  calculation,  the quotient,
     expressed as a percentage, obtained by dividing (a) Adjusted Operating Cash
     Flow from all Properties  which  constitute  Collateral or are owned by the
     Nomura Borrower on the calculation  date, by (b) an amount equal to (i) the
     outstanding  balance  of the  Loan on the  calculation  date  (taking  into
     account,  in the case of a release of a Property,  the  application  of the
     Release Payment or Nomura Payment,  as applicable,  to the outstanding Loan
     balance), plus (ii) the outstanding principal balance of the Nomura Loan on
     the  calculation  date  (taking into  account,  in the case of a request to
     permit the release of a Nomura Property from the Nomura Loan Documents, the
     reduction in the amount of the Nomura Note  resulting  from such  release).
     Lender  agrees that  calculations  of Cash On Cash Return after the Closing
     Date  will  be  performed  in  a  manner  reasonably  consistent  with  the
     underwriting  practices,  procedures  and policies  which were  followed by
     Lender  in  verifying  satisfaction  of the  Cash  On Cash  Return  closing
     condition contained in Part A of Schedule 2.1.

(26) "CHALLENGER   ROAD  GROUND   LEASE"  means  that  certain  Lease  of  Sixth
     Redevelopment  Parcel  between  the  Village of  Ridgefield  Park and Hartz
     Mountain  Industries,  Inc.  dated  November 21, 1990; as assigned by Hartz
     Mountain Industries,  Inc. to Samsung America,  Inc. pursuant to Assignment
     and Assumption of Ground Lease dated November 21, 1990; as amended by First
     American  to Sixth  Redevelopment  Parcel  Lease  between  the  Village  of
     Ridgefield Park and Samsung America,  Inc. dated June 14, 1993; as assigned
     (to the extent of a 50%  undivided  interest) by Samsung  America,  Inc. to
     Samsung  Semiconductor,  Inc.  pursuant to an Assignment  and Assumption of
     Lease  dated  September  1995;  as  amended  by Second  Amendment  to Sixth
     Redevelopment  Parcel  Lease  between  the Village of  Ridgefield  Park and
     Samsung America,  Inc. and Samsung  Semiconductor,  Inc. dated February 11,
     1997; and as amended by Third Amendment to Sixth Redevelopment Parcel Lease
     between the Village of Ridgefield  Park and  Wellsford/Whitehall  Holdings,
     L.L.C. dated December 22, 1998.

(27) "CHALLENGER  ROAD PROPERTY" means the Property  described in Exhibit "D-11"
     attached hereto.

(28) "CHARGES" means all federal, state, county, city, municipal, local, foreign
     or other  governmental  (including PBGC) taxes at the time due and payable,
     levies,  assessments,  charges,  liens,  claims  or  encumbrances  upon  or
     relating to (i) the Properties,  (ii) the Obligations,  (iii) Borrower's or
     Nomura  Borrower's  employees,  payroll,  income  or gross  receipts,  (iv)
     Borrower's or Nomura Borrower's  ownership or use of any of the Properties,
     or (v) any other aspect of Borrower's or Nomura Borrower's business.

(29) "CHARGES ACCOUNT" has the meaning set forth in Section 3.4 hereof.

(30) "CLOSING DATE" means the date on which Lender makes the Initial Advance.

(31) "CODE" means the Uniform  Commercial Code of the jurisdiction  with respect
     to which such term is used, as in effect from time to time.

(32) "COLLATERAL" means the collateral covered by the Collateral Documents.

(33) "COLLATERAL  ASSIGNMENT OF CONTRACTS"  means each Collateral  Assignment of
     Contracts, Licenses and Permits executed by Borrower (or, as to the Gateway
     Tower  Property,  the Gateway Tower Owner) in favor of Lender,  in form and
     substance satisfactory to Lender.

(34) "COLLATERAL ASSIGNMENT OF INTEREST RATE CAP AGREEMENT" means the Collateral
     Assignment of Interest Rate Cap Agreement  executed by Borrower in favor of
     Lender, substantially in the form of Exhibit "C" hereto.

(35) "COLLATERAL DOCUMENTS" means the Collateral  Assignments of Contracts,  the
     Assignments of Leases,  the Deeds of Trust,  the  Collateral  Assignment of
     Interest Rate Cap Agreement,  the Gateway Pledge Agreement,  the WAH Pledge
     Agreement  and any other deeds of trust,  mortgages,  security  agreements,
     pledge  agreements,  financing  statements  or  similar  documents  now  or
     hereafter  executed  to secure (or perfect a security  interest  granted to
     secure) any or all of the Obligations.

(36) "COMPLETE   TAKING"  means  a  taking  or  condemnation  by  any  competent
     Governmental Authority of the whole of any Property or so much thereof that
     the part not so taken or condemned  cannot  feasibly be used or reconverted
     for use as a building of the type and character existing  immediately prior
     to such taking or condemnation.

(37) "CONTRACT RATE" has the meaning set forth in Section 2.2 hereof.

(38) "DEBT SERVICE  COVERAGE RATIO" means,  as of the date of  calculation,  the
     ratio  of (a)  Adjusted  Operating  Cash  Flow  from all  Properties  which
     constitute   Collateral  or  are  owned  by  the  Nomura  Borrower  on  the
     calculation date, to (b) Adjusted Annual Debt Service.

(39) "DEBT SERVICE COVERAGE RATIO LIMIT AMOUNT" means, (a) during the first Loan
     Year, as of the date of calculation,  the Loan balance  resulting in a 1.20
     to 1.00  Debt  Service  Coverage  Ratio,  calculated  by  dividing  (i) the
     difference  obtained  by  subtracting  (A) the annual  debt  service on the
     Nomura  Loan from (B) the amount  obtained  by  dividing  (x) the amount of
     Adjusted  Operating  Cash  Flow  which  would  be used  as of such  date in
     calculating  the  Debt  Service  Coverage  Ratio by (y)  1.20,  by (ii) the
     Contract Rate (expressed as a decimal); (b) during the second Loan Year, as
     of the date of  calculation,  the Loan balance  resulting in a 1.30 to 1.00
     Debt Service  Coverage  Ratio,  calculated  by dividing (i) the  difference
     obtained by subtracting (A) the annual debt service on the Nomura Loan from
     (B) the amount  obtained by dividing  (x) the amount of Adjusted  Operating
     Cash  Flow  which  would be used as of such  date in  calculating  the Debt
     Service Coverage Ratio by (y) 1.30, by (ii) the Contract Rate (expressed as
     a decimal).  For purposes of  calculating  the Debt Service  Coverage Ratio
     Limit  Amount in  connection  with  Working  Capital  Advances  for  Tenant
     Improvements  and/or  Leasing  Costs  associated  with  a  new  Lease,  the
     determination  of the  Adjusted  Operating  Cash  Flow  shall  include  the
     projected  income and expenses  associated  with such new Lease,  as if the
     Tenant  under such new Lease was in  occupancy,  provided  that if such new
     Lease provides the Tenant with any free rent period at the beginning of the
     lease term, then such Lease shall not be included in any calculations until
     the Tenant is in occupancy and has commenced  paying regular monthly rent..
     The  calculation  of Debt  Service  Coverage  Ratio  Limit  Amount  is also
     expressed by the following formula:

                Adjusted Operating Cash Flow - [Nomura Loan debt service]
Loan balance =  ---------------------------------------------------------
                                      1.2*

     Contract Rate (expressed as a decimal)

     * 1.3 after the first Loan Year

(40) "DEED OF TRUST"  means  each first  priority  deed of trust,  mortgage  and
     security  agreement  executed  by Borrower  (or,  as to the  Gateway  Tower
     Property,  the Gateway  Tower  Owner) in favor of Lender,  creating a first
     priority  lien  against  a  Borrower   Property,   in  form  and  substance
     satisfactory to Lender.

(41) "DEFAULT PROPERTY" has the meaning set forth in Section 10.1 hereof.

(42) "DEFAULT RATE" means the lesser of (a) the maximum rate of interest allowed
     by applicable  Laws,  and (b) three percent (3%) per annum in excess of the
     Contract Rate.

(43) "DESIGNATED  PROPERTY"  means  each of the  following  Properties:  (a) the
     Property  described in Schedule 1.1(A) as "Chatham  Executive Center" (more
     particularly  described  in Exhibit  "D-15"  attached  hereto,  and (b) the
     Property   described  in  Schedule  1.1(A)  as  "1800  Valley  Road"  (more
     particularly described in Exhibit "D-17" attached hereto.

(44) "DRAW  EVENT"  shall mean,  with  respect to any Tenant  Deposit  Letter of
     Credit,  any event  which,  pursuant  to the terms of such  Tenant  Deposit
     Letter of Credit or the terms of Lease for which such Tenant Deposit Letter
     of Credit was issued, entitles the beneficiary thereunder to draw thereon.

(45) "EARLY TERMINATION DATE" has the meaning set forth in Section 2.3 hereof.

(46) "ENVIRONMENTAL LAWS" has the meaning set forth in Section 4.1 hereof.

(47) "ENVIRONMENTAL  LIABILITIES AND COSTS" has the meaning set forth in Section
     4.1 hereof.

(48) "ENVIRONMENTAL  SITE ASSESSMENT" means an environmental  engineering report
     (Phase I and, when necessary or appropriate in Lender's judgment, Phase II)
     for each Property  prepared by an engineer  engaged by Lender at Borrower's
     expense,   and  in  a  manner   satisfactory  to  Lender,   based  upon  an
     investigation  relating to and making appropriate  inquiries concerning the
     existence of Hazardous Materials on or about such Property, and the past or
     present discharge,  disposal, release or escape of any such substances, all
     consistent with good customary and commercial practice.

(49) "ERISA" means the Employee  Retirement  Income Security Act of 1974 (or any
     successor legislation thereto), as amended from time to time.

(50) "EVENT OF DEFAULT" has the meaning set forth in Section 10.1.

(51) "EXTENSION NOTICE" has the meaning set forth in Section 2.3 hereof.

(52) "FEDERAL RESERVE BOARD" has the meaning set forth in Section 6.14 hereof.

(53) "FISCAL  YEAR" means the calendar  year.  Subsequent  changes of the fiscal
     year of Borrower  shall not change the term "Fiscal  Year,"  unless  Lender
     shall consent in writing to such changes.

(54) "GAAP" means generally accepted accounting  principles in the United States
     of America as in effect from time to time.

(55) "GATEWAY  PLEDGE   AGREEMENT"  means  that  certain  Pledge  of  Membership
     Interests (WWG 401 North Washington LLC) of even date herewith, executed by
     Borrower in favor of Lender, in form and substance satisfactory to Lender.

(56) "GATEWAY TOWER GUARANTY" means that certain  Guaranty of even date herewith
     executed by Gateway Tower Owner in favor of Lender in  connection  with the
     Loan.

(57) "GATEWAY TOWER  HOLDBACK"  means a holdback from the Initial Advance in the
     amount of $1,800,000.00.

(58) "GATEWAY  TOWER  OWNER"  means WWG 401 North  Washington  LLC,  a  Delaware
     limited liability company.

(59) "GATEWAY TOWER PROPERTY" means the Property described in Exhibit "D-5".

(60) "GATEWAY TOWER RESERVE" has the meaning set forth in Section 2.9 hereof.

(61) "GECC" means General Electric Capital Corporation, a New York corporation.

(62) "GOVERNMENTAL AUTHORITY" means any nation or government, any state or other
     political  subdivision thereof, and any agency,  department or other entity
     exercising executive,  legislative,  judicial, regulatory or administrative
     functions of or pertaining to government.

(63) "GROSS RECEIPTS"  means,  for any period,  all rental and other cash income
     (other  than any  proceeds  in respect of a Capital  Transaction)  actually
     received  by,  on behalf  of,  or for the  account  of  Borrower  or Nomura
     Borrower  from any source in respect of the  Properties,  including  rental
     receipts  (including  percentage  rents  and room  charges)  from  Tenants,
     advance rentals or prepaid rents (but only to the extent not required to be
     segregated under any applicable Law), reimbursements from Tenants for their
     share of  utilities,  services and supplies  and other  operating  expenses
     under Leases, Security Deposit forfeitures, proceeds from letters of credit
     or other  credit  enhancements  (except to the  extent  applied to the Loan
     balance or to the items for which such credit  enhancements were originally
     provided, as otherwise required in this Agreement), proceeds from rental or
     business  interruption  insurance,  parking,  concessions and vending fees,
     food and beverage  income,  laundry  income,  and  furniture  rentals,  but
     excluding  (a) Security  Deposits  made by Tenants  until such deposits are
     applied by Borrower or Nomura  Borrower  pursuant to the applicable  Lease,
     (b) capital  contributions  or loans made to Borrower by any of the members
     in Borrower, and (c) Advances under the Loan.

(64) "GUARANTEED  INDEBTEDNESS"  means, as to any Person, any obligation of such
     Person guaranteeing any indebtedness,  lease, dividend, or other obligation
     ("PRIMARY  OBLIGATIONS") of any other Person (the "PRIMARY OBLIGOR") in any
     manner  including  any  obligation  or  arrangement  of such  Person (a) to
     purchase  or  repurchase  any such  primary  obligation,  (b) to advance or
     supply funds (i) for the purchase or payment of any such primary obligation
     or (ii) to  maintain  working  capital  or equity  capital  of the  primary
     obligor or  otherwise  to maintain the net worth or solvency or any balance
     sheet  condition  of  the  primary  obligor,   (c)  to  purchase  property,
     securities  or services  primarily for the purpose of assuring the owner of
     any such primary  obligation of the ability of the primary  obligor to make
     payment of such primary  obligation,  or (d) to indemnify the owner of such
     primary obligation against loss in respect thereof.

(65) "HAZARDOUS MATERIALS" has the meaning set forth in Section 4.1 hereof.

(66) "HAZARDOUS  SUBSTANCES  INDEMNITY AGREEMENT" means the hazardous substances
     indemnity  agreement  executed by Borrower,  Gateway Tower Owner, WWPII and
     WWG in  favor  of  Lender  with  respect  to the  Properties,  in form  and
     substance satisfactory to Lender.

(67) "HOLDBACKS" means, collectively, the Gateway Tower Holdback, the Mount Airy
     Holdback,  the Nomura Holdback, the Shattuck Office Center Holdback and the
     other  holdbacks  (if any) from the Initial  Advance which are described in
     Part D of Schedule 2.1 hereto.

(68) "IMPAIRED PROPERTY" has the meaning set forth in Section 8.17.

(69) "INDEBTEDNESS" of any Person shall mean (a) all indebtedness of such Person
     for  borrowed  money or for the  deferred  purchase  price of  property  or
     services (including reimbursement and all other obligations with respect to
     surety bonds,  letters of credit and bankers'  acceptances,  whether or not
     matured,  but not including  obligations to trade creditors incurred in the
     ordinary course of business),  (b) all obligations of such Person evidenced
     by notes, bonds,  debentures or similar  instruments,  (c) all indebtedness
     created or arising  under any  conditional  sale or other  title  retention
     agreements  with  respect to  property  acquired  by such  Person,  (d) all
     Capital  Lease  Obligations,  (e)  all  Guaranteed  Indebtedness,  (f)  all
     Indebtedness  referred to in clause (a), (b), (c), (d) or (e) above secured
     by (or for which the holder of such  Indebtedness  has an  existing  right,
     contingent  or  otherwise,  to be secured  by) any Lien upon or in property
     (including  accounts and contract rights) owned by such Person, even though
     such  Person  has not  assumed  or become  liable  for the  payment of such
     Indebtedness,  (g) as to Borrower, the Obligations, (h) as to each Borrower
     Party,  those  Obligations  for which such Borrower Party has agreed (under
     this Agreement or any other Loan Document  executed by such Borrower Party)
     to be liable, and (i) all liabilities under Title IV of ERISA.

(70) "INDEMNIFICATION  AGREEMENT"  means the  Indemnification  Agreement of even
     date herewith  executed by  Wellsford,  the  Whitehall  Parties,  Whitehall
     Street Real Estate Limited Partnership VI, a Delaware limited  partnership,
     Whitehall Street Real Estate Limited  Partnership  VIII, a Delaware limited
     partnership  and Whitehall  Street Real Estate Limited  Partnership  XII, a
     Delaware  limited  partnership,  in favor of Lender,  in form and substance
     satisfactory to Lender.

(71) "INDEMNITORS'  NET  WORTH"  means  the  total  "Net  Worth"  of  all of the
     "Indemnitors" under the Indemnification Agreement, as defined therein.

(72) "INITIAL  ADVANCE" means the initial  Advance made by Lender to Borrower on
     the Closing Date in the maximum amount of $310,000,000.00,  less the amount
     of the Holdbacks,  for the purpose of refinancing the Properties and paying
     certain Loan closing costs.

(73) "INTEREST PAYMENT DATE" has the meaning set forth in Section 2.3 hereof.

(74) "IRC"  means  the  Internal  Revenue  Code of  1986,  as  amended,  and any
     successor thereto.

(75) "IRS" means the Internal Revenue Service, or any successor thereto.

(76) "JOINDER"  means the Joinder  attached  hereto,  executed  by the  Borrower
     Parties in favor of Lender, in form and substance satisfactory to Lender.

(77) "LAWS"  means  all  federal,  state  and local  laws,  rules,  regulations,
     ordinances and codes.

(78) "LEASE BUY OUT  CONSIDERATION"  means all  amounts  paid to Borrower by any
     tenant under a Lease as  consideration  for terminating such Lease prior to
     its stated expiration date.

(79) "LEASES"  means all written  rights to use any  portion of any  Property in
     which Borrower (or, as to the Nomura  Properties,  Nomura  Borrower) is the
     lessor.

(80) "LEASING COSTS" means,  with respect to any Property,  leasing  commissions
     payable to brokers, which are commercially reasonable and customary for the
     area where the  Property is  located.  Leasing  Costs may  include  leasing
     commissions  payable to brokers who are Affiliates of Borrower,  so long as
     the  contractual  arrangements  with such  Affiliates  fully  complies with
     Section 9.6(1)(b).

(81) "LENDER"  means  GECC and any  future  holder of all or any  portion of the
     Note.

(82) "LIBOR  RATE" means the U.S.  Dollar  rate  listed on page 3750 (I.E.,  the
     LIBOR  page)  of  the  Telerate  News  Services   titled   "BRITISH  BANKER
     ASSOCIATION INTEREST SETTLEMENT RATES" for a designated maturity of one (1)
     month  determined  as of 11:00 a.m.  London  Time on the second  (2nd) full
     Eurodollar  Business  Day next  preceding  the first day of each month with
     respect to which  interest is payable  under the Loan  (unless such date is
     not a Business Day in which event the next succeeding  Eurodollar  Business
     Day  which is also a  Business  Day will be  used).  If the  Telerate  News
     Services (1)  publishes  more than one (1) such LIBOR Rate,  the average of
     such rates shall apply,  or (2) ceases to publish the LIBOR Rate,  then the
     LIBOR Rate shall be determined  from such  substitute  financial  reporting
     service as Lender in its discretion shall  determine.  The term "EURODOLLAR
     BUSINESS DAY",  shall mean any day on which banks in the City of London are
     generally open for interbank or foreign exchange transactions.

(83) "LIEN" means any mortgage or deed of trust  (including  any Deed of Trust),
     pledge, hypothecation,  assignment,  deposit arrangement, lien, Charge that
     becomes a lien on real  property,  claim,  security  interest,  easement or
     encumbrance,  or preference,  priority or other  security  agreement of any
     kind  or  nature  whatsoever   (including  any  lease  or  title  retention
     agreement,  any  financing  lease having  substantially  the same  economic
     effect as any of the  foregoing,  and the filing of, or  agreement to give,
     any financing  statement  perfecting a security  interest under the Code or
     comparable Law of any jurisdiction).

(84) "LOAN" means the loan to be made by Lender to Borrower under this Agreement
     up to the Maximum Loan Amount.

(85) "LOAN  DOCUMENTS"  means  this  Agreement,  the Note,  the  Borrowing  Date
     Certificate,  the Collateral  Documents,  the Gateway Tower  Guaranty,  the
     Hazardous  Substances  Indemnity  Agreement,  the Agreement Regarding Asset
     Management, the Indemnification Agreement, the Nomura Consent and Estoppel,
     the  Cash  Management  Agreement  and all  other  agreements,  instruments,
     documents and  certificates  evidencing,  securing,  governing or otherwise
     pertaining to the Loan.

(86) "LOAN YEAR" means the period between the Closing Date and June 30, 2002 for
     the first Loan Year and the period between each  succeeding July 1 and June
     30 until the Maturity Date.

(87) "MAJOR WORK" has the meaning set forth in Section 3.2 hereof.

(88) "MATERIAL  ADVERSE EFFECT" shall mean a material  adverse effect on (a) the
     assets, operations or financial condition of Borrower taken as a whole, (b)
     Borrower's  ability to pay the  Obligations  in  accordance  with the terms
     thereof  and  otherwise  comply with the terms of this  Agreement,  (c) any
     Property  individually or (d) Lender's Liens (individually or collectively)
     on the Collateral or the priority of any such Lien.

(89) "MATERIAL  AGREEMENT"  shall mean any material  written or oral  agreement,
     contract,  commitment or  understanding  requiring  payments,  pledges,  or
     performance   executed  or  assumed  by  Borrower  or  Nomura  Borrower  in
     connection  with the  Properties  (other  than the  Loan  Documents)  which
     provides for payments by Borrower or Nomura  Borrower  over the term of any
     such  agreement,  contract,  commitment or  understanding  in excess of One
     Hundred  Thousand  and  No/100  Dollars  ($100,000.00)  and  which  is  not
     cancelable  by  Borrower or Nomura  Borrower  upon sixty (60) days' or less
     notice without  liability for further  payment other than a nominal penalty
     and which is not assignable without consent of the other party thereto. For
     purposes of clarification,  this term shall not include Leases currently in
     effect or entered into in accordance with the terms hereof.

(90) "MATERIAL LEASE" has the meaning set forth in Section 5.4 hereof.

(91) "MATURITY  DATE" means the earliest of (a) June 30, 2004,  as such date may
     be extended  pursuant to the  provisions of Section  2.3(3),  (b) the Early
     Termination  Date,  or (c) any  other  date on  which  the  entire  Loan is
     required  to be paid in full,  by  acceleration  or  otherwise,  under this
     Agreement or any of the other Loan Documents.

(92) "MAXIMUM LIABILITY" has the meaning set forth in the Joinder.

(93) "MAXIMUM LOAN AMOUNT" means $352,600,000.00

(94) "MAXIMUM WORKING CAPITAL AMOUNT" means $42,600,000.00

(95) "MOUNT AIRY  HOLDBACK"  means a holdback  from the  Initial  Advance in the
     amount of $200,000.00.

(96) "NET CAPITAL  PROCEEDS" shall mean, with respect to a Capital  Transaction,
     (a) the cash proceeds  (including cash equivalents)  therefrom plus (b) the
     cash  proceeds  (including  cash  equivalents)  of the  disposition  of any
     non-cash  consideration,  in each case  received  by or for the  account of
     Borrower  (or,  as to the Nomura  Properties,  Nomura  Borrower),  less the
     ordinary and customary direct selling expenses incurred by Borrower (or, as
     to the Nomura Properties,  Nomura Borrower) in connection with such Capital
     Transaction  (including  then customary  brokerage  commissions  for assets
     similar to the affected Property),  and, as to the Nomura Properties,  less
     amounts payable to the Nomura Lender under the Nomura Loan Documents.

(97) "NOMURA  BORROWER"  means Wells Avenue Senior Holdings LLC, a Massachusetts
     limited liability company.

(98) "NOMURA CONSENT AND ESTOPPEL" means,  collectively,  (a) that certain Third
     Amendment to Loan  Agreement  and Consent of Lender  executed by the Nomura
     Lender, the Nomura Borrower,  Wells Avenue Holdings,  and WASH Manager, and
     (b) that certain Estoppel  Statement executed by the Nomura Lender in favor
     of Lender, each in form and substance satisfactory to Lender.

(99) "NOMURA  HOLDBACK"  means a holdback from the Initial Advance in the amount
     of $28,000,000.00.

(100)"NOMURA  LENDER"  means  LaSalle   National  Bank,  as  Trustee  for  Asset
     Securitization  Corporation  Commercial Mortgage Pass-Through  Certificates
     Series 1997-D4.

(101)"NOMURA  LOAN"  means  the loan to the  Nomura  Borrower  in the  principal
     amount of  $69,000,000.00  evidenced by the Nomura Note and governed by the
     Nomura Loan Agreement and other Nomura Loan Documents.

(102)"NOMURA  LOAN  AGREEMENT"  means that certain  Loan  Agreement  dated as of
     December 31, 1996, by and between Nomura  Borrower and Nomura Asset Capital
     Corporation,  a Delaware  corporation  ("NACC") as amended by that  certain
     First  Amendment to Loan  Agreement  dated as of December 31, 1996,  by and
     between Nomura Borrower and NACC, by that certain Second  Amendment to Loan
     Agreement  and  Consent of Lender  dated as of May 15,  1998,  by and among
     Nomura Lender, Nomura Borrower, Wells Avenue Holdings and WASH Manager, and
     by that certain Third  Amendment to Loan Agreement and Consent of Lender of
     even date herewith,  by and among Nomura  Lender,  Nomura  Borrower,  Wells
     Avenue Holdings and WASH Manager, and as it may hereafter from time to time
     be amended or modified.

(103)"NOMURA LOAN  DOCUMENTS"  means,  collectively,  the Nomura Loan Agreement,
     the Nomura Note and the other "Loan Documents" described in the Nomura Loan
     Agreement.

(104)"NOMURA  NOTE" means the "Note"  described  in the Nomura  Loan  Agreement,
     including any "Undefeased Note" as defined in the Nomura Loan Agreement.

(105) "NOMURA PAYMENT" has the meaning set forth in Section 2.5(2).

(106)"NOMURA  PROPERTIES"  means,  collectively,  the  properties  described  in
     Exhibits "D-18" through "D-23" attached  hereto,  together with any real or
     personal property, fixtures, leases and other property or rights pertaining
     thereto.

(107)"NOTE"  means the  Promissory  Note of even date  herewith,  in the  stated
     principal  amount of Three Hundred  Fifty-Two  Million Six Hundred Thousand
     and No/100 Dollars  ($352,600,000.00)  executed by Borrower, and payable to
     the order of Lender, in evidence of the Loan.

(108)"NOTICE OF ADDITIONAL  ADVANCE" means a notice,  substantially  in the form
     of Exhibit "A" hereto, which Borrower shall deliver to Lender in connection
     with each requested  Advance and which shall specify the requested date and
     amount of such Advance.

(109)"OBLIGATIONS"  shall  mean all  loans,  advances,  debts,  liabilities  and
     obligations  for monetary  amounts  (whether such amounts are liquidated or
     determinable)  owing by  Borrower  to  Lender,  and all  present  or future
     covenants and duties regarding such amounts, of any kind or nature, whether
     evidenced by any note, agreement or other instrument,  arising under any of
     the Loan  Documents.  This term includes all interest,  charges,  expenses,
     attorneys'  fees and any other sum  chargeable to Borrower under any of the
     Loan Documents.

(110)"OPERATING  AGREEMENT"  means that  certain  Amended and  Restated  Limited
     Liability  Company  Operating  Agreement of  Wellsford/Whitehall  Holdings,
     L.L.C., dated as of July 16, 1998, executed by WWPII.

(111)"OPERATING  CASH FLOW" shall mean, for any period,  the excess,  if any, of
     (a) cumulative Gross Receipts from all Properties and from any other source
     of Borrower for the period in question  (including  from any interest  rate
     cap or  other  hedging  device)  over  (b)  cumulative  Operating  Expenses
     (excluding debt service) for all Properties for such period.

(112)"OPERATING  EXPENSES" shall mean, for any period, all ordinary,  normal and
     necessary  cash  expenses  directly  or  indirectly  incurred by or for the
     account of Borrower (or, as to the Nomura  Properties,  Nomura Borrower) in
     respect of any Property as would be incurred by owners of assets similar to
     the Properties and which would be considered operating expenses under GAAP,
     including  payments  under the  Challenger  Road Ground Lease and any other
     ground leases (if any), repair and maintenance costs, Charges in respect of
     the  Properties,  litigation  costs,  fees paid to  property  managers  and
     expenses  properly  reimbursable  to the property  managers and which would
     otherwise be an operating expense  hereunder,  including Reserves therefor;
     but  excluding  (a) any  completed  Capital  Transactions  and the expenses
     (including  adjustments and prorations)  incurred in any completed  Capital
     Transaction,  (b) any amounts in respect of the Asset Management Fee or any
     other fee, compensation or reimbursement payable to Asset Manager under the
     WWG Operating Agreement, or Asset Manager's or Borrower's managing member's
     overhead and operating expenses,  (c) any item for which a Reserve has been
     previously  established  and considered an Operating  Expense,  and (d) any
     costs, fees or expenses related to or in connection with the negotiation or
     consummation   of  the   transactions   contemplated   by  this  Agreement.
     Notwithstanding  the  foregoing,  it is  understood  and agreed that to the
     extent that any of the foregoing are funded out of the Loan,  such expenses
     shall not be deemed to be Operating Expenses.

(113) "OTHER TAXES" has the meaning set forth in Section 8.10 hereof.

(114) "PARTIAL RELEASE NOTICE" has the meaning set forth in Section 2.4 hereof.

(115)"PERMITTED ENCUMBRANCES" means, with respect to the Nomura Properties,  the
     "Permitted  Encumbrances" as defined in the Nomura Loan Agreement,  and, as
     to all other Properties, the following encumbrances: (a) Liens for taxes or
     assessments or other governmental charges or levies, either not yet due and
     payable or to the extent that nonpayment  thereof is permitted by the terms
     of this Agreement; (b) workers',  mechanics', or other similar liens on the
     Properties  arising  after  the  Closing  Date in the  ordinary  course  of
     business and securing  indebtedness which can be realized by foreclosure on
     any Property and which (i) with respect to such  Property  shall not exceed
     $100,000  at any time  outstanding,  and (ii)  with  respect  to all of the
     Properties  shall not  exceed,  in the  aggregate,  $1,000,000  at any time
     outstanding,  and which are being contested in good faith to the extent and
     in the manner  expressly  permitted  under  this  Agreement;  (c)  deposits
     securing or in lieu of surety,  appeal or customs bonds in  proceedings  to
     which Borrower is a party;  (d) any  attachment or judgment Lien,  provided
     that the judgment it secures shall, within 60 days after the entry thereof,
     have been discharged or execution  thereof stayed pending appeal,  or shall
     have been discharged  within 60 days after the expiration of any such stay;
     (e) any additional  permitted liens  expressly  allowed by any provision of
     the Loan Documents; (f) mechanics' liens, which are subordinate to the Lien
     of the  applicable  Deed of  Trust,  arising  out of work  performed  by or
     materials  furnished  to or on behalf of Tenants for which  Borrower is not
     indebted;  (g) with respect to each Property,  such  exceptions to title as
     appear on  Schedule B to the Title  Policy  delivered  to and  accepted  by
     Lender with respect to such  Property;  and (h)  easements,  rights-of-way,
     restrictions (including zoning restrictions),  defects or irregularities in
     title and  other  similar  title  matters  not,  in any  material  respect,
     interfering with the operation,  use or value of the property encumbered or
     affected  (provided that the foregoing clause (h) shall in no way be deemed
     a waiver by Lender  of, or  otherwise  operate  to  impair,  any  rights or
     remedies  Lender may have under the Title  Policies  with  respect to items
     described in such clause which are not excluded  from  coverage  under such
     policies).

(116)"PERSON" means any  individual,  corporation,  partnership,  joint venture,
     association, joint stock company, trust, trustee, estate, limited liability
     company,   unincorporated  organization,   real  estate  investment  trust,
     government  or any agency or political  subdivision  thereof,  or any other
     form of entity.

(117)"PLAN" means,  with respect to Borrower,  at any time, an employee  benefit
     plan,  as defined  in  Section  3(3) of ERISA,  which  Borrower  maintains,
     contributes  to,  or  has an  obligation  to  contribute  to on  behalf  of
     participants employed by Borrower.

(118)"POTENTIAL  DEFAULT" means the occurrence of any event or condition  which,
     with the giving of notice,  the passage of time, or both,  would constitute
     an Event of Default.

(119)"PROPERTIES"  means,  collectively,  the Borrower Properties and the Nomura
     Properties.

(120)"PROPERTY BASIS" means, with respect to a particular  Property,  the amount
     set forth opposite the reference to such Property in Schedule 1.1(B) hereto
     under the caption "Property Basis."

(121)"PROPERTY   DOCUMENTS"   has  the  meaning  set  forth  in  Section   6.22.

(122)"REFINANCE"  means (i) a refinance  of one or more  Properties  (whether by
     third party financing, additional capital contributions or otherwise), (ii)
     a sale or other  transfer or  conveyance  of one or more  Properties  to an
     Affiliate of Borrower or any Borrower  Party,  or (iii) any  combination of
     (i) or (ii) immediately above.

(123) "RELEASE" has the meaning set forth in Section 4.1 hereof.

(124) "RELEASE PAYMENT" has the meaning set forth in Section 2.4 hereof.

(125) "REMEDIAL ACTION" has the meaning set forth in Section 4.1 hereof.

(126)"RESERVES"  means  (a) any  reserves  required  by the  terms  of the  Loan
     Documents,  (b) reserves for ordinary trade payables  coming due within the
     next 30 day  period,  (c)  reserves  established  by  Borrower  (or  Nomura
     Borrower)  and  approved  by  Lender,  for  doubtful   accounts,   returns,
     allowances,  contingent  liabilities,  Operating  Expenses and the like, in
     each case as may be, or as may  otherwise  be required in  accordance  with
     GAAP, and (d) any reserves  required by Nomura Lender under the Nomura Loan
     Documents.

(127)"SECURITY  DEPOSITS"  shall  have the  meaning  set  forth in  Section  5.6
     hereof.

(128)"SHATTUCK  OFFICE  CENTER  HOLDBACK"  means a  holdback  from  the  Initial
     Advance in the amount of $7,088,000.00.

(129)"SHATTUCK OFFICE CENTER  PROPERTY" means the Property  described in Exhibit
     "D-2" attached hereto.

(130) "STATE" means the State of New York.

(131)"TAXES" has the meaning set forth in Section 8.10 hereof.

(132)"TENANT"  means the tenant or lessee under any Lease or any other  occupant
     of any Property pursuant to any legal right.

(133)"TENANT  ALLOWANCES"  means,  with  respect  to Leases  executed  after the
     Closing Date (a) moving  expenses of the Tenant not to exceed three dollars
     ($3.00) per square foot of rentable space to be leased by such Tenant under
     the Lease and/or (b) buyout  payments to a Tenant to pay or reimburse  such
     Tenant for amounts  required to be paid to the  landlord of the space which
     was leased and surrendered by such Tenant for terminating  such lease prior
     to its stated  expiration  date,  provided  that such moving  expenses  and
     buyout payments are  commercially  reasonable and customary for the area in
     which the particular Property is located.

(134)"TENANT  DEPOSIT  LETTER  OF  CREDIT"  shall  mean  each  letter  of credit
     provided by a Tenant as all or a portion of such Tenant's  Security Deposit
     or as credit support for any of such Tenant's  obligations  under its Lease
     or with respect to its leased premises at a Borrower Property,  as any such
     Tenant  Deposit  Letter  of Credit  may from time to time be  supplemented,
     extended, amended, replaced or reissued.

(135)"TENANT  IMPROVEMENTS"  means (a) tenant improvements which are paid for by
     Borrower or  reimbursed  to Tenants in  connection  with  Leases  which are
     commercially  reasonable and customary for the area in which the particular
     Property is located,  including  architect fees,  general  contractor fees,
     fees for permits and approvals of applicable Governmental Authorities,  and
     other  commercially  reasonable  and  customary  "soft"  costs  incurred in
     connection with such tenant improvements, and (b) Tenant Allowances.

(136)"TERM"  means the period  commencing  as of the Closing  Date and ending on
     the close of business on the Maturity Date.

(137)"TITLE COMPANY" means  Commonwealth Land Title Insurance  Company,  or such
     other  nationally  recognized  title  insurance  company  as is  reasonably
     approved by Lender.

(138)"TITLE  POLICY"  means with  respect  to each  Borrower  Property,  an ALTA
     mortgagee's  title  insurance  policy  as more  particularly  described  on
     Schedule 2.1 attached hereto.

(139)"WAH PLEDGE  AGREEMENT"  means that certain Pledge of Membership  Interests
     (Wells Avenue Holdings L.L.C.) which shall be executed by Borrower in favor
     of Lender as a condition to the first Advance from the Nomura Holdback,  in
     form and substance satisfactory to Lender.

(140)"WASH  MANAGER" means WASH Manager  L.L.C.,  a Delaware  limited  liability
     company.

(141)"WCPT" means Wellsford Commercial  Properties Trust, a Maryland real estate
     investment trust.

(142)"WELLS  AVENUE  HOLDINGS"  mean Wells Avenue  Holdings  L.L.C.,  a Delaware
     limited liability company.

(143) "WELLSFORD" means Wellsford Real Properties, Inc., a Maryland corporation.

(144)"WHITEHALL  PARTIES"  means,  collectively,  Whitehall  Street  Real Estate
     Limited  Partnership V, a Delaware  limited  partnership,  Whitehall Street
     Real Estate Limited  Partnership VII, a Delaware limited  partnership,  and
     Whitehall  Street Real Estate Limited  Partnership  XI, a Delaware  limited
     partnership.

(145)"WHWEL" means WHWEL Real Estate  Limited  Partnership,  a Delaware  limited
     partnership.

(146) "WORK" has the meaning set forth in Section 3.2 hereof.

(147)"WORKING  CAPITAL  ADVANCE" means an Advance made by Lender to Borrower for
     the purpose of  reimbursing  Borrower for, or paying for,  certain costs in
     respect of Capital Expenditures, Tenant Improvements and/or Leasing Costs.

(148)"WORKING CAPITAL ADVANCE  ALLOCATION"  means Forty-Two  Million Six Hundred
     Thousand and No/100 Dollars ($42,600,000.00).

(149)"WORKING CAPITAL  BUDGETS" means, for any Property,  the budget approved by
     Lender setting forth the amount of Working  Capital  Advances  allocated to
     pay Capital Expenditures, Tenant Improvements and Leasing Costs incurred in
     connection with such Property.

(150)"WP COMMERCIAL"  means WP Commercial,  L.L.C., a Delaware limited liability
     company.

(151)"WWG"  means   Wellsford/Whitehall   Group,   L.L.C.,  a  Delaware  limited
     liability company.

(152)"WWG OPERATING  AGREEMENT"  means that certain  Limited  Liability  Company
     Operating  Agreement  of  Wellsford/Whitehall  Group,  L.L.C.,  a  Delaware
     limited  liability  company,  dated as of May 28, 1999, by and among WHWEL,
     WCPT,  WXI/WWG,  W/WGH,  and  additional  members  set forth on  Schedule 1
     annexed thereto,  as amended by that certain First Amendment to the Limited
     Liability Company Operating Agreement of Wellsford/Whitehall  Group, L.L.C.
     dated as of December 21, 2000, by and among WHWEL, WCPT, WXI/WWG, W/WGH and
     WP Commercial.

(153)"W/WGH" means W/W Group  Holdings,  L.L.C.,  a Delaware  limited  liability
     company.

(154)"WWPII"  means  Wellsford/Whitehall   Properties  II,  L.L.C.,  a  Delaware
     limited liability company.

(155)"WXI/WWG"  means  WXI/WWG  Realty,  L.L.C.,  a Delaware  limited  liability
     company.

                                    ARTICLE 2

                                   LOAN TERMS

SECTION 1.2 THE LOAN ADVANCES.

(1)  PURPOSES.  Lender  agrees to make to Borrower the Loan, to be funded in one
     or more  Advances and repaid in  accordance  with this  Agreement,  for the
     following  purposes:  (a) to finance or refinance the  Properties and repay
     certain existing indebtedness and return a portion of Borrower's equity and
     to pay  certain  Loan  closing  costs;  and  (b) to  fund  Working  Capital
     Advances.

(2)  AMOUNTS.  The aggregate  amount of all Advances on a cumulative basis shall
     not exceed the Maximum Loan Amount.  In addition,  the aggregate  amount of
     all Working Capital Advances,  on a cumulative basis,  shall not exceed the
     Working Capital Advance Allocation.

(3)  FREQUENCY.  Advances  shall  not be made  more  frequently  than  once  per
     calendar month.

(4)  INITIAL ADVANCE.  Provided  Borrower has satisfied all terms and conditions
     described  in Part A of Schedule  2.1 hereto,  Lender  shall  disburse  the
     Initial Advance on the Closing Date as follows:

(1)  An amount equal to the commitment  fee owing to Lender,  plus the amount to
     be held by Lender in the Gateway Tower  Reserve,  plus all other sums owing
     to Lender described in Part A of Schedule 2.1 hereto, shall be disbursed to
     Lender in payment of such sums; and

(2)  The amount  specified  in Lender's  loan  funding  statement  or escrow and
     recording  instructions  shall be disbursed  by wire  transfer to the Title
     Company  for  credit  to the  escrow  established  to  consummate  the Loan
     closing,  and shall be disbursed by the Title  Company in  accordance  with
     Lender's   escrow  and   recording   instructions   (i)  to  repay  certain
     indebtedness  secured by the  Borrower  Properties  and to pay Loan closing
     costs,  and (ii) to Borrower (or as otherwise  requested by  Borrower),  in
     accordance with Borrower's escrow instructions to the Title Company.

(5)  WORKING CAPITAL  ADVANCES.  Lender shall make Working  Capital  Advances to
     Borrower  subject  to  and in  accordance  with  the  following  terms  and
     conditions:

(1)  Working Capital Advances for each Property shall be made in accordance with
     the  allocations set forth in the Working Capital Budget for such Property.
     The Working  Capital  Budgets for the  Properties are set forth in Schedule
     2.1(5) hereto. Unless Lender otherwise consents in writing,  Borrower shall
     not, on a cumulative,  aggregate  basis,  reallocate more than five percent
     (5.0%) of the Loan funds among categories  within a Working Capital Budget.
     Subject to Lender's prior written  consent in each  instance,  Borrower may
     reallocate  demonstrated surplus Loan funds (i) among categories within any
     Working  Capital  Budget  (except  that such consent is not required to the
     extent such  reallocation  is  permitted  under the  immediately  preceding
     sentence),  or (ii)  subject  to  subparagraph  (g)(iii)  below,  under any
     Working  Capital Budget to the Working  Capital Budget of one or more other
     Properties  (whether such  reallocation  is requested in connection  with a
     sale of a Property, or otherwise).

(2)  Unless Lender otherwise consents in writing,  the Capital  Expenditures for
     which  Working  Capital  Advances are  available  shall be limited to those
     Capital  Expenditures  set forth in the  two-year  capital  budget  for the
     Properties approved by Lender as a condition to the Initial Advance.

(3)  As to each Working Capital Advance, Borrower shall have satisfied the terms
     and conditions set forth in Parts B and C of Schedule 2.1 hereto.

(4)  The amount of each  Working  Capital  Advance  shall in no event exceed the
     least of:

(1)  an amount which,  when added to the  aggregate  amount of all prior Working
     Capital Advances, equals the Working Capital Advance Allocation;

(2)  subject to paragraph  (e) below,  an amount  which,  when added to the Loan
     balance and all undisbursed Loan funds allocated to the Mount Airy Holdback
     and the Gateway Tower  Holdback,  is equal to the lesser of (A) the Cash On
     Cash Limit Amount and (B) the Debt Service Coverage Ratio Limit Amount;

(3)  eighty percent (80%) of the actual costs incurred by Borrower or the Nomura
     Borrower in respect of the Tenant  Improvements,  Leasing  Costs or Capital
     Expenditures for which such Advance is requested.

     In no event shall any Working  Capital  Advance be used to pay or reimburse
     Borrower for any commissions,  fees,  expenses or costs charged by or to be
     paid  for  services  rendered  by  Borrower  or  the  Nomura  Borrower,  or
     Affiliates  of either of them,  unless,  as to such  Affiliates  only,  the
     contractual  arrangements  with such  Affiliates  fully comply with Section
     9.6(1)(b).

(5)  Each  Working  Capital  Advance  shall be in an  amount  not less  than Two
     Hundred Fifty Thousand Dollars ($250,000).

(6)  No Working Capital Advances may be made for any Property until Borrower has
     complied  with  Section  8.15  with  respect  to the  Initial  Advance.  In
     addition, each Working Capital Advance shall be covered by an interest rate
     cap agreement in accordance with Section 8.15 below.

(7)  As to any Working  Capital  Advance for a Nomura  Property,  the  following
     additional conditions shall apply:

(1)  The  Borrower  shall have  received  at least one  Advance  from the Nomura
     Holdback;

(2)  If the requested Advance is for Tenant  Improvements  and/or Leasing Costs,
     the Nomura Borrower shall have fully exhausted the "Rollover  Reserve Fund"
     (as  defined in the Nomura Loan  Agreement),  provided  that the  foregoing
     shall not prohibit  Borrower from requesting the Advance  concurrently with
     the Nomura Borrower's request of such funds from the Nomura Lender (so that
     the Advance is made at  substantially  the same time, but not before,  such
     funds are exhausted);

(3)  If the requested Advance is for Capital  Expenditures,  the Nomura Borrower
     shall have fully  exhausted  the "Capital  Reserve Fund" (as defined in the
     Nomura Loan  Agreement),  provided  that the  foregoing  shall not prohibit
     Borrower  from  requesting  the  Advance   concurrently   with  the  Nomura
     Borrower's  request  of such  funds  from the  Nomura  Lender  (so that the
     Advance is made at substantially the same time, but not before,  such funds
     are exhausted); and

(4)  The Nomura  Properties  shall have  maintained  (or  exceeded) the "Manager
     Termination  Ratio" (as described in the Nomura Loan  Agreement) as of each
     of the three (3) "DSCR Determination  Dates" (as defined in the Nomura Loan
     Agreement)  immediately  preceding the date of the requested  Advance,  and
     Borrower shall have delivered to Lender copies of the evidence delivered to
     the Nomura  Lender  (pursuant to Section 9.5 of the Nomura Loan  Agreement)
     that the Nomura  Properties have met or exceeded such ratio as of each such
     date.  Alternatively,  Borrower  shall have delivered to Lender an estoppel
     from the Nomura  Lender  stating that to the knowledge of the Nomura Lender
     (or of the  servicer  of the Nomura  Loan),  the Nomura  Borrower is not in
     default under the Nomura Loan.

(8)  As to any Working Capital Advance for the Shattuck Office Center  Property,
     the Borrower shall have received the Advance of the Shattuck  Office Center
     Holdback.

(9)  Except as  provided  below in this  paragraph  (i),  Lender  shall  have no
     obligation  to make any Working  Capital  Advances  after the end of second
     Loan Year, and any undisbursed Working Capital Allocation shall be canceled
     as of the last day of the second Loan Year. If Borrower enters into a Lease
     in accordance  with the terms and conditions of this Agreement prior to the
     end of the second  Loan Year,  then  Borrower  may obtain  Working  Capital
     Advances for Leasing  Costs and Tenant  Improvements  associated  with such
     Lease  after  the  second  Loan  Year,  provided  that  Borrower  otherwise
     satisfies all  conditions  set forth in this Agreement to such Advances and
     in no event shall  Lender be  obligated to make any Advance with respect to
     such a Lease after the end of the sixth month of the third Loan Year.

(6)  HOLDBACK  ADVANCES.  Lender  shall  make  Advances  from the  Holdbacks  to
     Borrower provided that, as to each such Advance:

(1)  Borrower  shall have satisfied the terms and conditions set forth in Part B
     of Schedule 2.1 hereto;

(2)  Borrower  shall  have  satisfied  the  additional  disbursement  conditions
     applicable  to the Holdback  from which such Advance is  requested,  as set
     forth in Part D of Schedule 2.1 hereto; and

(3)  Each  Advance  from a Holdback  shall be covered  by an  interest  rate cap
     agreement in accordance with Section 8.15 below.

(7)  TIMING OF ADDITIONAL  ADVANCES.  Each Advance following the Initial Advance
     shall be made no later  than  5:00 p.m.  (New York City  time) on the fifth
     (5th)  Business  Day after  receipt  by  Lender  of a Notice of  Additional
     Advance for the requested  Advance and  satisfaction  of all  conditions to
     making such  Advance (as  specified in this Section 2.1 and in Schedule 2.1
     hereof).

(8)  NO  REVOLVING  ADVANCES.  The  Loan is not a  revolving  credit  loan,  and
     Borrower is not entitled to any readvances of any portion of the Loan which
     it may (or is otherwise  required to) prepay  pursuant to the provisions of
     this Agreement.

SECTION 1.3 INTEREST RATE; LATE CHARGE.

(1)  CONTRACT RATE. The outstanding principal balance of the Loan (including any
     amounts added to principal under the Loan Documents) shall bear interest at
     a rate of interest equal to two hundred ninety (290) basis points in excess
     of the LIBOR Rate (the "CONTRACT RATE").

(2)  COMPUTATION  OF  INTEREST.  Interest  shall be  computed  on the basis of a
     fraction,  the  denominator  of which is three  hundred sixty (360) and the
     numerator  of which is the actual  number of days  elapsed from the date of
     the Initial Advance or the date on which the immediately  preceding payment
     was due.

(3)  LATE  CHARGE.  If  Borrower  fails to pay any  installment  of  interest or
     principal  within  five (5) days  after  the date on which  the same is due
     (other than the payment due on the Maturity  Date),  Borrower  shall pay to
     Lender a late charge on such past-due amount, as liquidated damages and not
     as a penalty, equal to two percent (2%) of such amount, notwithstanding the
     date on which such payment is actually paid to Lender;  provided,  however,
     that  if  any  court  of  competent   jurisdiction   determines  that  such
     delinquency  charge under this Section 2.2(3) is not liquidated damages for
     such delinquency (as contemplated by Borrower and Lender), and is deemed to
     be  interest  in  excess  of the  maximum  amount of  interest  allowed  by
     applicable Law, the amount  actually  collected by Lender in excess of such
     lawful amount shall be applied in accordance with the provisions of Section
     11.3  hereof.  While any  Event of  Default  exists,  the Loan  shall  bear
     interest at the Default Rate.

SECTION 1.4 TERMS OF PAYMENT. The Loan shall be payable as follows:

(1)  INTEREST.  Commencing  on August 1, 2001,  Borrower  shall pay  interest in
     arrears on the first  Business  Day of each month  (the  "INTEREST  PAYMENT
     DATE") until the Maturity Date, when all amounts secured by and outstanding
     under the Loan Documents shall be paid in full.

(2)  PRINCIPAL  AMORTIZATION.  During  the  initial  Term,  the Loan shall be an
     interest-only loan and Borrower shall not be required to make any regularly
     scheduled principal  amortization payments. If the Term is extended for one
     or both of the 12-month periods contemplated by Section 2.3(3) below (each,
     an "EXTENSION  PERIOD"),  then commencing on August 1, 2004, and continuing
     on each Interest  Payment Date thereafter until all Obligations are paid in
     full,  Borrower  shall make  monthly  principal  amortization  payments  in
     accordance with this Section 2.3(2), which payments shall be applied to the
     outstanding  principal  balance  of the Loan.  For each  Extension  Period,
     Lender shall calculate the total amount of principal  payments  payable for
     such  Extension  Period  based  upon a 25-year  amortization  schedule,  an
     amortization  period which begins on July 1, 2004,  a fixed  interest  rate
     equal to the Contract Rate in effect as of July 1 of such Extension Period,
     and the  outstanding  principal  balance  of the  Loan as of July 1 of such
     Extension Period. The amount of the monthly principal  amortization payment
     for a given Extension Period shall be the amount determined by dividing the
     aggregate amount of all monthly principal amortization payments payable for
     such Extension  Period  (calculated as set forth above) by twelve (12). The
     foregoing  notwithstanding,  upon application of any Release Payment to the
     Loan  balance  or  any  other  prepayment  of  the  Loan  (other  than  the
     amortization  payments  required  by this  Section  2.3(2)),  Lender  shall
     recalculate the amount of the monthly principal amortization payments owing
     for the remainder of the then current Extension Period,  based upon the new
     Loan  balance  and the  Contract  Rate  then in  effect,  and such  revised
     principal  amortization  payment  shall  be due  commencing  on  the  first
     Interest Payment Date occurring after the date the Release Payment is made.

(3)  MATURITY.   On  the  Maturity  Date,  Borrower  shall  pay  to  Lender  all
     outstanding  principal,  accrued and unpaid interest, and any other amounts
     due under the Loan Documents.  Subject to the provisions of this paragraph,
     Borrower,  at its option, may extend the Term for two (2) 12-month periods,
     by giving written notice (the  "EXTENSION  NOTICE") to Lender of Borrower's
     election to obtain each such  extension not less than sixty (60) days prior
     to the expiration of the original Term or the first  extension  period,  as
     applicable.  If  Borrower  elects to so extend  the Term,  all of the other
     terms and conditions of this  Agreement and the other Loan Documents  shall
     remain in full force and effect and unmodified  except that all undisbursed
     Loan funds not  previously  canceled  (if any) shall be  canceled as of the
     original  Maturity Date and Borrower  shall have no further right to extend
     the Term after the second extension. Borrower's right to extend the Term is
     subject to the satisfaction of each of the following  conditions as to each
     extension:

(1)  No Event of Default has  occurred  and is  continuing  on the date on which
     Borrower gives Lender the Extension  Notice and on the last day of the then
     existing Term;

(2)  The Cash On Cash Return equals or exceeds thirteen percent (13.0%), and (b)
     the Debt Service  Coverage Ratio equals or exceeds 1.35 to 1.00;  provided,
     however,  that if, based on the outstanding  Loan balance as of the date of
     calculation,  Borrower  fails to satisfy the foregoing  Cash On Cash Return
     and/or Debt Service Coverage Ratio condition(s),  Borrower may satisfy such
     condition(s) by paying down the outstanding Loan balance to an amount which
     would result in such condition(s) being satisfied;

(3)  Borrower  shall  have  paid to  Lender  an  extension  fee (for  each  such
     extension)  equal to one-quarter of one percent  (0.25%) of the outstanding
     principal  balance  of the Loan (it being the  parties'  understanding  and
     agreement  that any portion of the Maximum Loan Amount which is undisbursed
     as of the end of the initial Term shall be canceled and no longer available
     for disbursement);

(4)  Borrower shall have provided Lender with evidence  reasonably  satisfactory
     to Lender that  Borrower has an interest  rate cap agreement in place which
     complies  with  Section  8.15 (and will comply  therewith  throughout  such
     extension);

(5)  Borrower  shall  have  provided  Lender  (at  Borrower's  expense)  updated
     environmental  reports and engineering  reports for each of the Properties,
     in form and substance satisfactory Lender;

(6)  Borrower  shall execute and deliver such other  instruments,  certificates,
     opinions of counsel and documentation as Lender shall reasonably request in
     order to  preserve,  confirm  or secure the Liens and  security  granted to
     Lender by the Loan Documents,  including any amendments,  modifications  or
     supplements to any of the Loan  Documents,  endorsements  to Title Policies
     and, if required by Lender, estoppel and other certificates; and

(7)  Borrower  shall  pay for any and all  reasonable  out-of-pocket  costs  and
     expenses, including reasonable attorneys' fees and disbursements,  incurred
     by Lender in connection with or arising out of the extension of the Term.

(4)  PREPAYMENT. Except as provided below, at any time during the Term, upon not
     less than ten (10)  days'  prior  written  notice to Lender,  Borrower  may
     prepay the Loan in whole or in part  without  premium or penalty,  provided
     that each such  prepayment  shall be  accompanied by the payment of accrued
     and unpaid interest on the principal amount being prepaid, through the date
     of prepayment,  and any other costs or expenses which are payable to Lender
     in  accordance  with the  terms  hereof  or any other  Loan  Document.  The
     foregoing notwithstanding,  during the first Loan Year prepayment (in whole
     or in part)  shall only be  permitted  in  connection  with a sale or other
     transfer of a Property to a Person which is not an Affiliate of Borrower or
     of any  Borrower  Party.  From and after the  beginning  of the second Loan
     Year,  Loan  shall  be  closed  to  partial  prepayment  from  a  Refinance
     (including  a  Refinance  of  any  or all  of  the  Nomura  Properties).  A
     prepayment premium equal to two percent (2.0%) of the outstanding principal
     balance of the Loan shall be payable if an Event of Default  occurs and the
     Loan is  accelerated  prior to the  commencement  of the second  Loan Year.
     Borrower  acknowledges that the prepayment premium required by this Section
     2.3(4)  constitutes  partial  compensation  to  Lender  for  the  costs  of
     reinvesting the Loan proceeds and for loss of the contracted rate of return
     on the Loan.  Furthermore,  Borrower acknowledges that the loss that may be
     sustained  by Lender  as a result of such  prepayment  by  Borrower  is not
     susceptible of precise  calculation and the prepayment  premium  represents
     the good faith effort of Borrower and Lender to compensate  Lender for such
     loss.  Borrower  confirms that  Lender's  agreement to make the Loan at the
     interest rate and on the other terms set forth herein constitutes  adequate
     and valuable  consideration,  given individual weight by Borrower,  for the
     prepayment provision set forth in this Section.

(5)  EARLY LOAN ACCELERATION. Notwithstanding anything to the contrary contained
     in this Agreement,  if at any time the outstanding principal balance of the
     Loan is less than Thirty-Five Million Dollars  ($35,000,000),  Lender shall
     have the right to accelerate the Loan,  whereupon all amounts due under the
     Loan Documents  shall become due and payable without any penalty or premium
     on the date which is ninety (90) days (the "EARLY  TERMINATION DATE") after
     the date  that  Lender  provides  Borrower  with  notice  of its  intent to
     accelerate the Loan pursuant to the provisions of this paragraph;  provided
     that  Borrower  shall have the right to repay the Loan  without  penalty or
     premium  (including the premium  contemplated  in Section 2.3(4) above,  if
     payable)  on any  earlier  date after  Borrower's  receipt of such  notice.
     Borrower  shall  pay  to  Lender,  in  immediately   available  funds,  all
     outstanding  principal,  accrued and unpaid interest, and any other amounts
     due under the Loan  Documents  as of the Early  Termination  Date (or as of
     such earlier date on which Borrower  elects to repay the Loan, as permitted
     in this paragraph).

(6)  APPLICATION  OF PAYMENTS.  All  payments  received by Lender under the Loan
     Documents  shall be applied:  first, to any fees and expenses due to Lender
     under the Loan  Documents;  second,  to any Default  Rate  interest or late
     charges;  third,  to  accrued  and  unpaid  interest;  and  fourth,  to the
     principal sum and other amounts owing under the Loan Documents.

(7)  LENDER ADVANCES TO COVER BORROWER'S PAYMENTS.  Lender is authorized to, and
     at is sole option may,  make  advances on behalf of Borrower for payment of
     all fees,  expenses,  charges,  costs,  principal,  interest and other sums
     incurred or payable by  Borrower  hereunder  when and as Borrower  fails to
     promptly pay any such amounts (after any applicable  grace period).  To the
     extent permitted by Law, any such advances made by Lender shall be added to
     the  Obligations,  shall bear interest from the date advanced until paid at
     the Default Rate and shall be secured by the Collateral.

(8)  RECEIPT OF PAYMENTS.  Borrower shall make each payment under this Agreement
     not later than 2:00 p.m. (New York City time) on the day when due in lawful
     money of the United  States of America in  immediately  available  funds to
     Lender's  depository bank in the United States as designated by Lender from
     time to time for deposit in Lender's depositary account.  For purposes only
     of computing interest hereunder, all payments shall be applied by Lender to
     the Loan on the date payment has been credited by Lender's  depository bank
     to Lender's account in immediately available funds.

SECTION  1.5  COLLATERAL;  RELEASES  OF  COLLATERAL.  The  Loan  and  all  other
Obligations  (other than Borrower's  Obligations under the Hazardous  Substances
Indemnity Agreement) shall be secured by the Collateral. Except as expressly set
forth below in this  Section,  Lender shall have no obligation to release any of
the Collateral  until all  Obligations  have been paid and performed in full and
all obligations of Lender under this Agreement and the other Loan Documents have
terminated.  Borrower  shall be  entitled  to obtain  the  release of a Borrower
Property  from the Lien of the  Loan  Documents  in  connection  with a  Capital
Transaction  (excluding a Capital Transaction consisting of an event giving rise
to an insurance recovery or condemnation  award in excess of  repair/restoration
costs), provided that all of the following conditions are satisfied:

(1)  Borrower provides Lender with reasonable prior written notice (the "PARTIAL
     RELEASE  NOTICE")  of the  proposed  release  together  with  copies of any
     documents  which Borrower  requests that Lender execute in connection  with
     such proposed release.

(2)  Concurrently  with Lender's release of the Property,  Borrower shall pay to
     Lender an amount (the "RELEASE Payment") determined as follows:

(1)  if the release occurs during the first Loan Year, the Release Payment shall
     be the greater of (i) one hundred  twenty  percent  (120%) of the  Adjusted
     Loan Basis of the  Property to be  released,  and (ii) the  minimum  amount
     which, when applied to the outstanding principal balance of the Loan, would
     result  in a Cash On Cash  Return  of at  least  ten and  one-half  percent
     (10.5%) and a Debt Service Coverage Ratio of at least 1.20 to 1.0;

(2)  if the  release  occurs  during the second Loan Year,  the Release  Payment
     shall be the  greater  of (i) one  hundred  twenty  percent  (120%)  of the
     Adjusted  Loan Basis of the Property to be  released,  and (ii) the minimum
     amount  which,  when applied to the  outstanding  principal  balance of the
     Loan,  would  result in a Cash On Cash  Return of at least  eleven  percent
     (11%) and a Debt Service Coverage Ratio of at least 1.25 to 1.0;

(3)  if the release occurs after the second Loan Year, the Release Payment shall
     be the greater of (i) one hundred  twenty  percent  (120%) of the  Adjusted
     Loan Basis of the  Property to be  released,  and (ii) the  minimum  amount
     which, when applied to the outstanding principal balance of the Loan, would
     result in a Cash On Cash  Return of at least  eleven and  one-half  percent
     (11.5%) and a Debt Service Coverage Ratio of at least 1.30 to 1.0;

(4)  notwithstanding  subparagraphs  (a), (b) and (c) above, the Release Payment
     shall be equal to one hundred  fifteen  percent (115%) of the Adjusted Loan
     Basis of the  Property  to be  released  if,  after  giving  effect  to the
     proposed release,  the Cash On Cash Return is at least twelve percent (12%)
     and the Debt Service Coverage Ratio is at least 1.30 to 1.0;

(5)  notwithstanding  subparagraphs (a), (b), (c) and (d) above, if the Property
     to be released is a Designated Property, the Release Payment shall be equal
     to one  hundred  five  percent  (105%) of the  Adjusted  Loan  Basis of the
     Designated  Property  to be  released  if (i) the  release  occurs (and the
     Release  Payment is paid) within the first six (6) months after the Closing
     Date,  and (ii)  after  giving  effect  to the  proposed  release,  (A) the
     aggregate  amount of  Release  Payments  paid with  respect  to  Designated
     Properties  is less  than  $50,000,000,  (B) the Cash On Cash  Return is at
     least ten and one-half percent  (10.5%),  and (C) the Debt Service Coverage
     Ratio is at least 1.20 to 1.0;

provided,  however,  if the release  involves an Impaired  Property or a Default
Property (pursuant to Borrower's rights to obtain a release of such Property set
forth elsewhere in this  Agreement),  then the Release Payment shall be equal to
the Adjusted Loan Basis of such Property.  Notwithstanding the foregoing,  in no
event shall the Release  Payment for any  Property  exceed the then  outstanding
Obligations.

(3)  No release shall be permitted (except in connection with the full repayment
     of the  Loan  and  termination  of  Lender's  obligations  under  the  Loan
     Documents) if, after giving effect to such release, either of the following
     circumstances exist:

(1)  all of the Borrower Properties have been released; or

(2)  the outstanding  balance of the Loan is less than $100,000,000 and the Cash
     On Cash Return is less than twelve percent (12%);  provided,  however, that
     if Borrower fails to satisfy the foregoing  Cash On Cash Return  condition,
     then Borrower may satisfy such condition by paying down  (concurrently with
     such release) the outstanding  Loan balance to an amount which would result
     in such Cash On Cash Return condition being satisfied.

(4)  Except as provided in this paragraph,  no Event of Default has occurred and
     is  continuing  on the date on which  Borrower  gives  Lender  the  Partial
     Release  Notice  and on the  date of  delivery  of the  release;  provided,
     however,  if the Property to be released is a Default Property and the only
     Event of Default  which  exists is the Event of Default  which  caused such
     Property to be designated as a Default  Property (and which arises from the
     occurrence  of a breach,  default,  failure of condition or other event for
     which no cure period is provided),  then this condition  shall be waived so
     long as the  Default  Property  is  released  within 10 days of notice from
     Lender,  as required in the last  paragraph of Section  10.1.  In addition,
     Lender shall release a Property  which is the subject of a Complete  Taking
     notwithstanding  the  existence of an Event of Default,  if and only if (a)
     Borrower has otherwise  satisfied the  conditions set forth in this Section
     2.4 to the release of such  Property,  and (b) Borrower pays to Lender,  as
     the Release  Payment for such Property,  an amount equal to 100% of the Net
     Capital  Proceeds  from the  Complete  Taking (it being  understood  by the
     parties  that if no Event  of  Default  exists,  the  amount  to be paid by
     Borrower  shall be the Release  Payment as determined  in  accordance  with
     paragraph (2) above).

(5)  Borrower  shall execute and deliver such other  instruments,  certificates,
     opinions of counsel and documentation as Lender shall reasonably request in
     order to  preserve,  confirm  or secure the Liens and  security  granted to
     Lender by the Loan Documents,  including any amendments,  modifications  or
     supplements to any of the Loan Documents and partial  release  endorsements
     to the existing Title Policies.

(6)  Borrower  shall  pay for any and all  reasonable  out-of-pocket  costs  and
     expenses  incurred  in  connection  with any  proposed  release,  including
     reasonable  attorneys'  fees  and  disbursements  and all  title  insurance
     premiums for any  endorsements  to any existing Title  Policies  reasonably
     required by Lender in connection with such proposed release.

(7)  Borrower shall deliver to Lender evidence reasonably satisfactory to Lender
     that all amounts  owing to any parties in connection  with the  transaction
     relating  to  the  proposed   release  have  been  paid  in  full,  or  are
     simultaneously  paid in full at closing,  or adequate Reserves therefor are
     established  by  Borrower  in cash  with  respect  to  contingent  or other
     liabilities that may arise out of such transaction.

(8)  Unless the proposed  release will repay the Loan in full (and terminate all
     of Lender's  obligations  hereunder),  or the proposed  release involves an
     Impaired Property or a Default Property, the release shall be in connection
     with a sale or other  transfer of the  Property to a Person which is not an
     Affiliate of Borrower or of any  Borrower  Party.  If the proposed  release
     involves an Impaired Property or a Default Property, then concurrently with
     the release  Borrower shall transfer the Property to an entity which may be
     related to  Borrower,  so long as  Borrower is not  directly or  indirectly
     liable  on a  recourse  basis  for any of  such  entity's  indebtedness  or
     obligations to any Person.

SECTION 1.6 RELEASES OF NOMURA PROPERTIES. Borrower shall not permit or give its
consent or approval to any Capital Transaction  (excluding a Capital Transaction
consisting  of an event  giving rise to an  insurance  recovery or  condemnation
award in  excess of  repair/restoration  costs) or other  event,  including  any
defeasance of any or all of the Nomura Loan, which results in the release of any
of the Nomura Properties from the Lien of the Nomura Loan Documents,  unless all
of the following conditions are satisfied:

(1)  Borrower  provides Lender with reasonable prior written notice (the "NOMURA
     RELEASE NOTICE") of the proposed release.

(2)  Concurrently  with the  consummation of the release,  Borrower shall pay to
     Lender an amount (the "NOMURA Payment") determined as follows:

(1)  If the release  occurs during the first Loan Year, the Nomura Payment shall
     be the greater of (i) one hundred ten percent  (110%) of the Adjusted  Loan
     Basis of the subject  Nomura  Property,  and (ii) the minimum amount which,
     when applied to the outstanding principal balance of the Loan, would result
     in a Cash On Cash Return of at least ten and one-half percent (10.5%) and a
     Debt Service Coverage Ratio of at least 1.20 to 1.0.

(2)  If the release occurs during the second Loan Year, the Nomura Payment shall
     be the greater of (i) one hundred ten percent  (110%) of the Adjusted  Loan
     Basis of the subject  Nomura  Property,  and (ii) the minimum amount which,
     when applied to the outstanding principal balance of the Loan, would result
     in a Cash On Cash  Return  of at  least  eleven  percent  (11%)  and a Debt
     Service Coverage Ratio of at least 1.25 to 1.0.

(3)  If the release  occurs after the second Loan Year, the Nomura Payment shall
     be the greater of (i) one hundred ten percent  (110%) of the Adjusted  Loan
     Basis of the subject  Nomura  Property,  and (ii) the minimum amount which,
     when  applied  to the  outstanding  principal  balance  of the Loan  (after
     application  of the Nomura  Payment to the Loan balance)  would result in a
     Cash On Cash Return of at least eleven and one-half  percent  (11.5%) and a
     Debt Service Coverage Ratio of at least 1.30 to 1.0.

(4)  Notwithstanding  subparagraphs  (a), (b) and (c) above,  the Nomura Payment
     for the final Nomura Property to be released shall include,  in addition to
     the applicable amount set forth in subparagraphs  (a), (b) or (c) above, an
     amount equal to the difference  between (i) the aggregate  amount of Nomura
     Payments made with respect to all Nomura  Properties  (including the amount
     of such payment for the final Nomura  Property,  calculated  in  accordance
     with  subparagraph  (a), (b) or (c) above, as  applicable),  except for any
     Nomura Properties  excluded by the next sentence of this subparagraph,  and
     (ii) the aggregate amount of the Nomura Payments which would have been made
     with  respect to all Nomura  Properties  (except for any Nomura  Properties
     excluded by the next sentence of this  subparagraph)  if the  percentage in
     clause (i) of  subparagraphs  (a),  (b) and (c) above had been one  hundred
     twenty  percent  (120%)  instead  of  110%;  provided,  however,  that  the
     foregoing 120% amount shall be changed to 115% for any Nomura  Property if,
     at the time of (and  after  giving  effect to) the  release of such  Nomura
     Property, the Cash On Cash Return was at least twelve percent (12%) and the
     Debt  Service  Coverage  Ratio  was at  least  1.30 to 1.0.  The  foregoing
     calculation shall exclude (and no additional  amounts shall be due upon the
     release of the final Nomura Property with respect to) any Nomura  Property,
     other than the last  remaining  Nomura  Property,  released  as an Impaired
     Property,  a Default  Property  or a  Property  which is the  subject  of a
     Complete  Taking  and is  released  while an Event of  Default  exists  (in
     accordance with paragraph (4) below).

(5)  Notwithstanding  subparagraphs  (a),  (b) and (c)  above,  but  subject  to
     subparagraph  (d), if the release  involves a Nomura  Property  which is an
     Impaired Property or a Default  Property,  then the Nomura Payment shall be
     equal to the Adjusted Loan Basis of such Property (plus, if the Property is
     the last remaining Nomura Property to be released,  such additional amount,
     if any, as is payable pursuant to subparagraph (d) above).

(6)  Notwithstanding any of the foregoing (including subparagraph (d) above), in
     no event shall the Nomura Payment for any Nomura  Property  exceed the then
     outstanding Obligations.

(3)  No such release shall be permitted if, after giving effect to such release,
     the outstanding  balance of the Loan is less than $100,000,000 and the Cash
     On Cash Return is less than twelve percent (12%);  provided,  however, that
     if Borrower fails to satisfy the foregoing  Cash On Cash Return  condition,
     then  Borrower  may satisfy such  condition by paying down the  outstanding
     Loan  balance to an amount  which would  result in such Cash On Cash Return
     condition being satisfied.

(4)  Except as provided in this paragraph,  no Event of Default has occurred and
     is continuing on the date on which Borrower gives Lender the Nomura Release
     Notice and on the date the  release is closed;  provided,  however,  if the
     subject Nomura Property is a Default Property and the only Event of Default
     which  exists is the Event of Default  which  caused  such  Property  to be
     designated as a Default Property (and which arises from the occurrence of a
     breach,  default,  failure of  condition  or other  event for which no cure
     period is  provided),  then this  condition  shall be waived so long as the
     release  involving the Default  Property is  consummated  within 10 days of
     notice from Lender,  as required in the last  paragraph of Section 10.1. In
     addition,  Lender shall permit a transaction involving a Complete Taking of
     a Nomura Property  notwithstanding the existence of an Event of Default, if
     and only if (a) Borrower has otherwise  satisfied the  conditions set forth
     in this Section 2.5 to the  consummation of the proposed  release,  and (b)
     Borrower pays to Lender, as the Nomura Payment for such Property, an amount
     equal to 100% of the Net Capital Proceeds from the Complete Taking plus (if
     such  Property is the last  remaining  Nomura  Property to be released) any
     additional  amount payable pursuant to subparagraph  (1)(d) above (it being
     understood by the parties that if no Event of Default exists, the amount to
     be paid by Borrower shall be the Nomura Payment as determined in accordance
     with paragraph (2) above).

(5)  Borrower  shall execute and deliver such other  instruments,  certificates,
     opinions of counsel and documentation as Lender shall reasonably request in
     order to  preserve,  confirm  or secure the Liens and  security  granted to
     Lender by the Loan Documents,  including any amendments,  modifications  or
     supplements to any of the Loan Documents.

(6)  Borrower  shall  pay for any and all  reasonable  out-of-pocket  costs  and
     expenses  incurred  by  Lender  in  connection  with any  proposed  release
     including reasonable attorneys' fees and disbursements.

(7)  Borrower shall deliver to Lender evidence reasonably satisfactory to Lender
     that all  amounts  owing to any  parties in  connection  with the  proposed
     release  have  been  paid in full,  or are  simultaneously  paid in full at
     closing,  or adequate  Reserves therefor are established by Borrower or the
     Nomura  Borrower in cash with respect to  contingent  or other  liabilities
     that may arise out of such transaction.

(8)  Unless the proposed  release will repay the Loan in full (and terminate all
     of Lender's  obligations  hereunder),  or the proposed  release involves an
     Impaired  Property or a Default  Property,  the release  shall consist of a
     sale or other  transfer of the Nomura  Property to a Person which is not an
     Affiliate of Borrower,  of the Nomura Borrower or of any Borrower Party. If
     the proposed release involves an Impaired  Property or a Default  Property,
     then  concurrently with the closing of the release Borrower shall cause the
     Nomura  Borrower to transfer the Property to an entity which may be related
     to the Nomura Borrower, so long as neither the Nomura Borrower nor Borrower
     is  directly  or  indirectly  liable  on a  recourse  basis for any of such
     entity's indebtedness or obligations to any Person.

SECTION 1.7 ADJUSTMENTS TO ADJUSTED LOAN BASIS. The Adjusted Loan Basis for each
Property shall be increased  dollar for dollar for Working Capital  Advances and
other Advances which relate  directly to such Property.  The Adjusted Loan Basis
for each  Property  shall be  decreased  dollar for dollar  for  prepayments  of
principal which relate directly to such Property (e.g., casualty or condemnation
proceeds, or a Release Payment or Nomura Payment) and any prepayment proceeds in
excess of the  Adjusted  Loan Basis  (e.g.,  the excess  portion of the  Release
Payment or Nomura Payment for any specific Property) and any other prepayment of
principal  not  directly  related to a specific  Property  shall be allocated by
Lender  among the  Properties,  on a pro rata  basis,  in  accordance  with each
Property's Adjusted Loan Basis.

SECTION 1.8 CAPITAL ADEQUACY; INCREASED COSTS; ILLEGALITY.

(1)  If Lender shall  determine  that any new  applicable  Law adopted after the
     Closing Date regarding  capital  adequacy,  or any change after the Closing
     Date in any  existing  Law,  or any change  after the  Closing  Date in the
     interpretation  or  administration  thereof by any Governmental  Authority,
     central  bank or  comparable  agency  charged  with the  interpretation  or
     administration thereof or compliance by Lender (or its lending office) with
     any request or directive  regarding capital adequacy (whether or not having
     the  force  of law) of any such  Governmental  Authority,  central  bank or
     comparable  agency,  has or would have the effect of  reducing  the rate of
     return on Lender's capital as a consequence of its obligations hereunder or
     credit  extended by it  hereunder  to a level below that which Lender could
     have  achieved but for such  adoption,  change or  compliance  by an amount
     deemed  by  Lender  to be  material,  then  from  time to time as  promptly
     specified by Lender in writing,  Borrower shall pay such additional  amount
     or amounts as will  compensate  Lender for such  reduction;  provided  that
     Borrower  shall  not be  required  to pay  any  amounts  pursuant  to  this
     paragraph  (1) to a  subsequent  holder of the Note to the extent that such
     amounts would not have been payable had GECC continued to hold the Note.

(2)  Upon the  occurrence of any of the events set forth in paragraph (1) above,
     Lender shall promptly  notify Borrower in writing of the occurrence of such
     event. If requested by Borrower,  in connection with any demand for payment
     pursuant  to this  Section,  Lender  shall  provide  to  Borrower a summary
     setting  forth in reasonable  detail the basis for such demand,  the amount
     required  to be paid by  Borrower  to Lender and the  computations  made by
     Lender  to  determine  such  amount  (which  computations  shall be  deemed
     conclusive absent manifest error).

SECTION 1.9 APPLICATION OF NOMURA  PROVISIONS PRIOR TO FIRST ADVANCE FROM NOMURA
HOLDBACK.  Notwithstanding  anything to the contrary contained in this Agreement
or the other Loan  Documents,  unless and until Lender makes an Advance from the
Nomura  Holdback,  (1) a breach  or  default  of any  representation,  warranty,
covenant or agreement in any Loan Document regarding the Nomura Loan, the Nomura
Properties,  the Nomura  Borrower  and/or the Nomura  Loan  Documents  shall not
constitute  a  Potential  Default or Event of Default,  and (2) for  purposes of
calculating Adjusted Annual Debt Service,  Adjusted Operating Cash Flow, Cash On
Cash Limit Amount,  Cash On Cash Return,  Debt Service  Coverage  Ratio and Debt
Service  Coverage  Ratio Limit Amount,  the parties  hereto shall  disregard (as
applicable for each  calculation) debt service on the Nomura Loan, the principal
balance of the Nomura Loan,  Gross  Receipts from the Nomura  Properties  and/or
Operating Expenses from Nomura Properties; provided, however, that it shall be a
condition  precedent to the first Advance from the Nomura  Holdback that (a) all
representations  and warranties  under the Loan  Documents  regarding the Nomura
Loan,  the Nomura  Properties,  the  Nomura  Borrower  and/or  the  Nomura  Loan
Documents be true and correct as of the date of such  Advance,  (b) no breach or
default  shall exist under any covenant or agreement  regarding the Nomura Loan,
the Nomura  Properties,  the Nomura  Borrower  and/or the Nomura Loan  Documents
contained  in the  Loan  Documents,  and  (c) in  determining  whether  Borrower
satisfies the  applicable  Cash On Cash Return and Debt Service  Coverage  Ratio
conditions  to such Advance  contained  in Section 1 of Part D of Schedule  2.1,
such  calculations  shall  account  for debt  service  on the Nomura  Loan,  the
principal  balance of the Nomura Loan, Gross Receipts from the Nomura Properties
and/or Operating  Expenses from Nomura  Properties.  For example (but not in any
way  limiting  the  foregoing),  prior to the  first  Advance  from  the  Nomura
Holdback,  any  calculation  of Debt Service  Coverage Ratio (not related to the
first Nomura Holdback  Advance) shall exclude Adjusted  Operating Cash Flow from
the Nomura  Properties  and the annual debt service on the Nomura Loan, but such
amounts  shall be  included  in  calculating  Debt  Service  Coverage  Ratio for
purposes of  determining  whether the Borrower  satisfies  the  applicable  Debt
Service  Coverage  Ratio  conditions in Part D of Schedule 2.1 for obtaining the
first Advance from the Nomura Holdback.

SECTION 1.10 GATEWAY TOWER  RESERVE.  On the Closing Date,  Lender shall fund to
itself (by book entry transfer) from the Initial Advance the sum of $150,000.00,
which shall be held by Lender in a reserve  (the  "GATEWAY  TOWER  RESERVE")  in
accordance  with this Section 2.9. The Gateway  Tower  Reserve  shall be held by
Lender,  with  interest  as provided  below,  and shall be released by Lender to
Borrower upon the first to occur of (1) release of the Gateway Tower Property in
accordance  with Section 2.4, (2) transfer of the Gateway Tower  Property by the
Gateway  Tower Owner to Borrower in accordance  with Section 2.10,  and (3) full
payment and performance of all Obligations  (and  termination of all obligations
of Lender under the Loan Documents). As additional security for the Obligations,
Borrower  hereby  grants  to  Lender a  security  interest  in all  funds now or
hereafter held in the Gateway Tower Reserve.  Upon any Event of Default,  Lender
may apply any funds held in the  Gateway  Tower  Reserve to the payment of or to
the  performance of any Obligation,  in any order.  All monies on deposit in the
Gateway Tower Reserve shall be deposited into interest  bearing  accounts of the
type  customarily  maintained  by  Lender  for the  investment  of  (and  may be
commingled  with)  similar  reserves,  which  accounts may not yield the highest
interest  rate then  available.  The Gateway  Tower  Reserve shall be held in an
account in Lender's  name (or such other  account name as Lender may elect) at a
financial  institution  or  other  depository  selected  by  Lender  in its sole
discretion (collectively, the "DEPOSITORY INSTITUTION").  Borrower shall earn no
more than an amount of interest on the Gateway  Tower Reserve equal to an amount
determined  by  applying  to the average  monthly  balance of the Gateway  Tower
Reserve the quoted interest rate for the Depository  Institution's  money market
savings  account,  as such rate is determined  from time to time (such allocated
amount being  referred to as  "BORROWER'S  Interest").  Lender or its Depository
Institution   shall  be  entitled  to  report  under   Borrower's   Federal  tax
identification  number the Borrower's  Interest on the Gateway Tower Reserve. If
the Depository  Institution  does not have an  established  money market savings
account (or if an interest rate for such account cannot  otherwise be determined
in  connection  with the deposit of the Gateway  Tower  Reserve),  a  comparable
interest rate quoted by the Depository  Institution  and acceptable to Lender in
its  reasonable  discretion  shall be used.  The amount of  Borrower's  Interest
allocated  to the Gateway  Tower  Reserve  shall be added to the balance in, and
shall become a part of, the Gateway Tower Reserve. Any interest earned above the
Borrower's  Interest  shall  be  retained  by  Lender  as  compensation  for its
administration and investment of the Gateway Tower Reserve.

SECTION 1.11 TRANSFER OF GATEWAY TOWER PROPERTY TO BORROWER.  At any time during
the Term,  Borrower  shall have the right to cause the Gateway Tower Property to
be  transferred  by the Gateway Tower Owner to Borrower in  accordance  with the
terms of this Section 2.10.  Upon completion of such transfer in accordance with
this Section 2.10,  the Gateway Pledge  Agreement  shall  terminate  (subject to
Section 15 thereof),  the Gateway  Tower Owner's  obligations  under the Gateway
Tower  Guaranty  shall  terminate  (subject to the second  sentence of Section 2
thereof),  and the obligation to maintain a minimum Indemnitors' Net Worth under
the Indemnification Agreement shall terminate. Any transfer of the Gateway Tower
Property to Borrower  shall be subject to  satisfaction  of all of the following
conditions  precedent  (any of which  may be  waived  by  Lender in its sole and
absolute discretion):

(1)  Borrower  shall have  provided  Lender  with at least five (5) days'  prior
     written  notice of its intent to cause the  transfer of the  Gateway  Tower
     Property to Borrower.

(2)  Such  written  notice  shall be  accompanied  by copies  of the  conveyance
     documents  for the proposed  transfer,  along with all other  documents (if
     any)  which  Borrower  intends  to  execute  (or cause to be  executed)  in
     connection with such transfer.

(3)  The Gateway  Tower Owner and Borrower  shall have executed and delivered to
     Lender such amendments to the Collateral Documents and other Loan Documents
     as Lender shall reasonably  request to reflect the proposed transfer of the
     Gateway  Tower  Property to  Borrower,  and  Borrower's  assumption  of the
     Gateway Tower Owner's obligations under the Loan Documents.

(4)  Lender shall have received such  endorsements to Lender's Title Policies as
     Lender shall reasonably require, including endorsements to the Title Policy
     insuring the Deed of Trust that  encumbers the Gateway Tower Property which
     insure  (a) that  Borrower  owns fee  simple  title  to the  Gateway  Tower
     Property  and (b) the  Deed of  Trust  that  encumbers  the  Gateway  Tower
     Property  continues  to  constitute  a  valid,  first-priority  Lien on the
     Gateway Tower Property, subject only to Permitted Encumbrances.

(5)  Lender shall have received  such  opinions of Borrowers  counsel , and such
     opinions of Lender's  local  counsel (if any),  as Lender shall  reasonably
     specify.

(6)  Borrower shall have delivered to Lender evidence that Borrower is qualified
     as a foreign  limited  liability  company in good  standing in the State of
     Maryland.

(7)  Borrower  shall  have  executed  and/or  delivered  to  Lender  such  other
     documents or items as Lender may reasonably require.

Borrower shall pay for any and all reasonable  out-of-pocket  costs and expenses
incurred  in  connection  with  any  proposed  transfer,   including  reasonable
attorneys'  fees and  disbursements  and all title  insurance  premiums  for any
endorsements  to any existing  Title Policies  reasonably  required by Lender in
connection with any such transfer.

                                    ARTICLE 3

                 INSURANCE, CONDEMNATION, DEPOSITS AND RESERVES

SECTION 1.12  INSURANCE.  Borrower shall  maintain,  and cause the Gateway Tower
Owner and the  Nomura  Borrower  to  maintain,  insurance  with  respect  to the
Properties as follows:

(1)  PROPERTY; BUSINESS INTERRUPTION.  Borrower shall keep (or cause the Gateway
     Tower Owner to keep) the  buildings  and the  improvements  located on each
     Borrower  Property  insured (a) against loss or damage by fire,  lightning,
     windstorm,  tornado,  hail and such other further and additional hazards of
     whatever  kind or nature as are now or hereafter may be covered by standard
     extended coverage "all risk" endorsements  (including vandalism,  malicious
     mischief and damage by water (other than flood)) of whatsoever  kind, in an
     amount not less than one  hundred  percent  (100%) of the full  replacement
     cost  of such  improvements  including  the  cost of  debris  removal,  but
     excluding the value of foundations and excavation and surface parking,  (b)
     against loss or damage by earthquake,  including subsidence,  as reasonably
     required  by  Lender,   and  (c)  against  loss  of  rentals  and  business
     interruption due to any of the foregoing causes, in an amount not less than
     twelve  (12)  months  anticipated  gross  rental  income or gross  business
     earnings, as applicable.

(2)  LIABILITY.  Borrower  shall  maintain (or cause the Gateway  Tower Owner to
     maintain)  commercial  general  liability  insurance  with  respect to each
     Borrower Property and the operations related thereto,  whether conducted on
     or off such  Borrower  Property,  against  liability  for personal  injury,
     including  bodily  injury and death,  and property  damage in an amount not
     less than  $1,000,000  per  Borrower  Property and per  occurrence,  with a
     $4,000,000 per property umbrella policy.  Such liability insurance shall be
     on an occurrence basis, shall provide (but need not specifically  describe)
     coverage for sprinkler  leakage liability and water damage legal liability,
     and shall specifically include premises operations, products liability, and
     broad form contractual coverage. Borrower also shall maintain (or cause the
     Gateway Tower Owner to maintain) motor vehicle  liability for all owned and
     non-owned vehicles, including rented and leased vehicles.

(3)  WORKERS' COMPENSATION.  Workers' compensation for employees of Borrower and
     the Gateway Tower Owner as required by applicable Law.

(4)  FORM AND QUALITY.  All property and business  interruption or rental income
     insurance   provided   hereunder   shall  name  Lender   under  a  standard
     "non-contributory  mortgagee" endorsement or its equivalent, which shall be
     acceptable  to  Lender,  and  liability  insurance  shall be  evidenced  by
     certificates of insurance  issued to Lender and naming Lender as additional
     insured. All property insurance shall provide for loss payable to Lender as
     provided in this Agreement,  shall be provided by insurance companies which
     have a Best's rating of at least "A-IX" or otherwise shall be acceptable to
     Lender  in its  reasonable  discretion.  Every  policy of  insurance  shall
     contain an  agreement  by the  insurer  that it will not cancel such policy
     except after thirty (30) days prior written notice to Lender, if obtainable
     (but in no  event  less  than  ten (10)  days)  and  that any loss  payable
     thereunder  shall  be  payable  notwithstanding  any act or  negligence  of
     Lender,  Borrower  and/or the Gateway Tower Owner which might,  absent such
     agreement,  result  in a  forfeiture  of all or a part  of  such  insurance
     payment and  notwithstanding  (a) occupancy or use of the Borrower Property
     for purposes more hazardous than permitted by the terms of such policy, (b)
     any  foreclosure or other action or proceeding  taken by Lender pursuant to
     the Deed of Trust  encumbering  the Borrower  Property or (c) any change in
     title to or ownership  of the Borrower  Property.  All  deductible  amounts
     under the  insurance  policies  required  to be  carried  pursuant  to this
     Section 3.1 shall be subject to Lender's reasonable  approval.  At Lender's
     request,  Borrower  shall  deliver to Lender  copies of, or (at  Borrower's
     option)  certificates of insurance for, all such policies of insurance.  If
     any insurance required to be provided hereunder shall expire, be withdrawn,
     become void by breach of any  condition  thereof by Borrower or the Gateway
     Tower  Owner  with  respect to any  Borrower  Property,  or become  void or
     questionable  by reason of the failure or  impairment of the capital of any
     insurer,  Borrower  immediately  shall obtain new or  additional  insurance
     which shall conform to the requirements hereof. Borrower shall not take out
     any separate or additional  insurance which is contributing in the event of
     loss unless it is properly endorsed and otherwise satisfactory to Lender in
     all  respects.  Lender shall have the right to conduct a periodic  audit of
     Borrower's  procedures in respect of insurance  matters and Borrower  shall
     cooperate with Lender therein.

(5)  INSURANCE ON NOMURA PROPERTIES. Borrower shall cause the Nomura Borrower to
     maintain  insurance  on and with respect to the Nomura  Properties  in such
     amounts and against such  insurable  events or  occurrences as are required
     under the Nomura Loan Documents, including Section 7.1.1 of the Nomura Loan
     Agreement.  Borrower shall  promptly  notify Lender if the Nomura Lender at
     any time  agrees to waive or diminish  in any  material  respect any of the
     insurance requirements set forth in the Nomura Loan Documents,  and in such
     event,  if required by Lender,  Borrower shall cause the Nomura Borrower to
     nevertheless  obtain all insurance  required  under the terms of the Nomura
     Loan  Documents  (without  regard  to any such  waiver or  agreement),  and
     Borrower shall promptly provide Lender with evidence thereof.

(6)  EVIDENCE OF INSURANCE. Borrower shall (a) pay, or cause the Nomura Borrower
     or the Gateway  Tower Owner to pay, as they become due all premiums for the
     insurance  required  hereunder,  and (b) not later than thirty (30) days if
     available (but in no event less than ten (10) days) prior to the expiration
     of each such policy,  deliver a  certificate  of insurance  evidencing  the
     insurance required to be provided hereunder  (including with respect to the
     Nomura  Properties) for a period of not less than one year, marked "premium
     paid,"  or  accompanied  by such  other  evidence  of  payment  as shall be
     reasonably satisfactory to Lender.

(7)  LENDER'S RIGHT TO PLACE  INSURANCE.  If Borrower shall be in default of its
     obligation to insure any Property in accordance with the provisions hereof,
     Lender, at its option and without notice, may (but shall have no obligation
     to)  obtain  such  insurance  from  year to year,  and pay the  premium  or
     premiums therefor, and, in such event, the amount of all such premiums paid
     by Lender  (a) shall be deemed to be  Obligations,  (b) shall be secured by
     the  Collateral  prior to any right or title to, or  interest  in, or claim
     upon, the Collateral  subordinate to the Lien of Lender on the  Collateral,
     and (c) shall be  immediately  due and payable,  on demand,  together  with
     interest  thereon at the Default Rate, from the date of any such payment by
     Lender to the date of repayment to Lender.

(8)  INCREASES  IN  INSURANCE  AMOUNTS.  Borrower  shall  increase the amount of
     all-risk  property  insurance  required  to be  provided  pursuant  to  the
     provisions  of  Section  3.1  hereof at the time  that each such  policy of
     insurance is renewed  (but,  in any event,  not less  frequently  than once
     during  each  twelve (12) month  period) by using the F.W.  Dodge  Building
     Index  (or,  if such  index is no  longer  available,  such  other  similar
     available index acceptable to Lender) to determine whether there shall have
     been an increase in the replacement cost of the improvement  since the most
     recent adjustment to any such policy and, if there shall have been any such
     increase,  the amount of insurance  required to be provided hereunder shall
     be adjusted accordingly.

(9)  COMPLIANCE WITH POLICY  REQUIREMENTS.  Borrower promptly shall comply,  and
     cause the Gateway Tower Owner and the Nomura  Borrower to comply,  with (a)
     all  of  the  provisions  of  each  such  insurance  policy  affecting  the
     Properties,  and (b) all of the  requirements  of the  insurers  thereunder
     applicable to Borrower, the Gateway Tower Owner and the Nomura Borrower (as
     applicable) or to any improvements located on the Properties or to the use,
     manner of use, occupancy, possession, operation,  maintenance,  alteration,
     repair or restoration of any of the improvements located on the Properties,
     even  if  such  compliance   would   necessitate   structural   changes  or
     improvements or would result in  interference  with the use or enjoyment of
     the Properties or any portion thereof.

(10) ADDITIONAL  INSURANCE.  Lender  shall  have the right  from time to time to
     require  Borrower  to procure  such  other and  additional  insurance,  and
     increased  amounts,  relating to the Properties in such amounts and against
     such insurable  events or occurrences as Lender may reasonably  require and
     which are  consistent  with  industry  practice  for assets  similar to the
     Properties,  including  (a) if  the  Property  is  located  in a  federally
     designated "special flood hazard zone", flood, including surface water; and
     (b) contingent liability from the operation of any building Laws pertaining
     to non-conforming property.

SECTION 1.13 CASUALTY;  USE AND APPLICATION OF INSURANCE PROCEEDS.  In the event
of damage or  destruction  to any  Property,  or any  portion  thereof,  whether
insured or uninsured, Borrower and Lender shall proceed as follows:

(1)  As to any Borrower Property, Borrower promptly shall give written notice of
     such damage or destruction to Lender (and upon such notification,  Schedule
     6.5 hereof  shall be deemed to have been  automatically  amended to reflect
     the matters  contained in such  notification)  and promptly shall cause the
     Property to be secured in a safe manner (including  spending necessary sums
     to address any immediate threats to life, health and safety)and  thereafter
     to prepare and submit a budget, and after approval thereof,  shall commence
     and diligently  continue to perform  repair,  restoration and rebuilding of
     the portion of the Property so damaged or destroyed (the "Work") to restore
     the Property in full  compliance  with all legal  requirements  so that the
     Property  shall be at least equal in value and quality and general  utility
     as it was prior to the damage or  destruction  and, if the cost of the Work
     as estimated by Lender  shall  exceed the sum of $250,000  ("MAJOR  WORK"),
     then  Borrower,  prior to the  commencement  of the Work,  shall furnish to
     Lender (a) complete plans and  specifications for the Work (approved by all
     Governmental  Authorities  whose  approval is  required at such time),  for
     Lender's  approval,  which approval shall not be  unreasonably  withheld or
     delayed,  which  plans and  specifications  (as  approved  by  Lender,  the
     "APPROVED  PLANS") shall bear the signed approval  thereof by the Architect
     and shall be accompanied by the Architect's  signed  estimate,  bearing the
     Architect's  seal, of the entire cost of completing the Work; (b) certified
     or  photostatic  copies of all  permits  and  approvals  required by Law in
     connection with the commencement and conduct of the Work; and (c) a payment
     and performance  bond for and/or guaranty of the payment for and completion
     of,  the  Work,  which  bond  or  guaranty  shall  be  in  form  reasonably
     satisfactory  to  Lender,  shall be  signed  by a surety  or  sureties,  or
     guarantor or guarantors,  as the case may be, who are reasonably acceptable
     to  Lender,  and shall be in an amount  of not less  than one  hundred  ten
     percent (110%) of the Architect's estimate of the entire cost of completing
     the Work.

(2)  Borrower  shall not commence any Work until  Borrower  shall have  complied
     with the  requirements  referred  to in  paragraph  (1)  above,  and  after
     commencing the Work,  Borrower shall perform the Work  diligently in a good
     and  workmanlike  manner and in good faith in accordance  with the Approved
     Plans, if applicable, and in compliance with all applicable Laws.

(3)  The property  insurance policies required to be maintained for the Borrower
     Properties  in  accordance  with  this  Agreement  shall  provide  that the
     proceeds shall be paid in accordance with the provisions of this paragraph.
     If the  proceeds  exceed Two Hundred  Fifty  Thousand  Dollars  ($250,000),
     Borrower  promptly  shall  deliver  to Lender any  proceeds  which are paid
     directly  to Borrower  by the  property  insurance  carrier.  All  proceeds
     delivered to Lender as aforesaid,  together with all proceeds paid directly
     to Lender on account of damage or  destruction  to the  Property,  less the
     cost,  if any, to Lender of such  recovery and of paying out such  proceeds
     (including  reasonable  attorneys' fees and other third party out-of-pocket
     costs  allocable  to  inspecting  the  Work and  reviewing  the  plans  and
     specifications  therefor),  upon  written  request  of  Borrower,  shall be
     applied by Lender to the  payment of the cost of the Work and shall be paid
     out  from  time to time as the  Work  progresses  to  Borrower  and/or,  at
     Lender's option exercisable from time to time,  directly to the contractor,
     subcontractors,  materialmen,  laborers,  engineers,  architects  and other
     persons rendering services or materials in connection with the Work, except
     as otherwise hereinafter provided, but subject to the following conditions,
     any of which Lender may waive:

(1)  If the Work to be done is Major Work, as  reasonably  determined by Lender,
     the Architect shall administer the Work.

(2)  Each request for payment  shall be made at least ten (10) days prior to the
     requested date of disbursement and shall be accompanied by a certificate of
     an officer of WP Commercial  (as the manager of the sole member of the sole
     member of  Borrower)  stating that (i) all of the Work  completed  has been
     done in a good and workmanlike  manner and in material  compliance with the
     Approved  Plans (if  applicable),  and in  accordance  with all  applicable
     provisions of Law;  (ii) the sum requested is justly  required to reimburse
     Borrower for payments by Borrower to, or is justly due to, the  contractor,
     subcontractors,  materialmen,  laborers,  engineers,  architects  or  other
     persons  rendering  services or supplying  materials in connection with the
     Work (giving a brief description of such services and materials),  and that
     when added to all sums previously paid out by Lender, if any, the resulting
     sum  does  not  exceed  the  value  of the  Work  done to the  date of such
     certificate;  and (iii) the amount of  proceeds  remaining  in the hands of
     Lender,  together with other funds otherwise available to Borrower, will be
     sufficient on completion of the Work to pay for the same in full (giving in
     such  reasonable  detail as Lender may  require an  estimate of the cost of
     such completion and, if such other funds are required, as to the sources of
     such  funds).  If the Work is  structural  or  Major  Work,  as  reasonably
     determined by Lender,  then each request for payment therefor also shall be
     accompanied  by a certificate of the Architect  confirming,  in Architect's
     professional  opinion,  the  matters  listed in clauses (i) and (ii) of the
     preceding sentence.

(3)  Each  request  shall be  accompanied  by  waivers  or  releases  of  liens,
     reasonably   satisfactory  to  Lender,  covering  that  part  of  the  Work
     previously paid for, if any, and by a search prepared by a title company or
     other evidence  satisfactory  to Lender showing that any mechanic's lien or
     other lien or instrument  for the  retention of title  relative to the Work
     which has been filed  with  respect to the  Property  or any part  thereof,
     other than Permitted Encumbrances and those which may have been approved by
     Lender, have been discharged of record by bonding or otherwise.

(4)  None of the Material  Leases in effect  immediately  prior to the damage or
     destruction (i) shall have been canceled due to such damage or destruction,
     or (ii) shall  contain  any still  exercisable  right to cancel due to such
     damage or  destruction;  provided  that if such right to cancel  exists but
     cannot be exercised by the Tenant  under a Material  Lease unless  Borrower
     fails to complete the Work within a time period  specified in such Material
     Lease, then Lender also shall have reasonably  determined that the Borrower
     will not be able to complete  the Work  within the time  period  prescribed
     under such Material Lease.

(5)  There  shall be no Event of  Default  on the part of  Borrower  under  this
     Agreement or any other Loan Documents.

(6)  With respect to the final  advance only (which shall  include any retainage
     previously  held back by Lender) the request for any payment after the Work
     has been completed  shall be  accompanied  by a copy of any  certificate or
     certificates  required  by Law to render  occupancy  and  operation  of the
     Property legal.

(4)  Upon  completion of the Work and payment in full therefor,  or upon failure
     on the part of Borrower  promptly to commence or diligently to continue the
     Work,  or at any time upon request by Borrower,  the amount of any proceeds
     then or thereafter in the hands of Lender shall be applied by Lender to the
     Loan balance.

(5)  In the event the Work to be done is not Major Work,  the proceeds  shall be
     paid to Borrower to be applied toward the cost of the Work,  subject to the
     provisions of the foregoing  paragraphs (1), (2), (3) and (4) above,  other
     than those applicable to Major Work.

(6)  If:  (a) within  ninety  (90) days  after the  occurrence  of any damage or
     destruction to a Borrower  Property or any portion thereof  requiring Major
     Work in order to restore the Property,  Borrower  fails to submit to Lender
     for Lender's approval plans and specifications for the repair,  restoration
     and  rebuilding  of the Property so damaged or  destroyed  (approved by the
     Architect and by all Governmental Authorities whose approval is required at
     such  time);   or  (b)  within  ninety  (90)  days  after  such  plans  and
     specifications  are approved by all such  Governmental  Authorities,  other
     parties  and  Lender,  Borrower  fails to promptly  commence  such  repair,
     restoration and rebuilding;  or (c) thereafter Borrower fails to diligently
     continue such repair,  restoration  and  rebuilding or is more than 30 days
     delinquent in the payment to mechanics,  materialmen or others of the costs
     incurred in  connection  with such Work (other than as a result of Lender's
     improper failure to release the insurance  proceeds for such Work and other
     than payment delays associated with amounts which Borrower is contesting in
     good faith to the extent and in the manner  expressly  permitted under this
     Agreement); or (d) in the case of any damage or destruction to the Property
     or any part  thereof  not  requiring  Major  Work in order to  restore  the
     Property,  as determined by Lender,  if Borrower fails to promptly  repair,
     restore and rebuild the Property so damaged or destroyed, or if Borrower in
     any other respect fails to comply with its  restoration  obligations  under
     this Section 3.2,  then,  in addition to all other rights herein set forth,
     and  after  giving   Borrower  ten  (10)  days'   written   notice  of  the
     nonfulfillment of one or more of the foregoing  conditions,  Lender may, at
     its option,  perform or cause to be performed such repair,  restoration and
     rebuilding,  and may take such other steps as it deems advisable to perform
     such Work; provided,  however,  that Lender shall be permitted to give such
     shorter  notice (and in such manner) as is reasonably  practical in case of
     emergency circumstances.  Lender may apply all or a portion of the proceeds
     (without the need to fulfill any other requirements of this Section 3.2) to
     reimburse  Lender for all amounts  expended or incurred by it in connection
     with the  performance  of such work,  and any excess costs shall be paid by
     Borrower to Lender upon demand.

(7)  As to any Nomura  Property,  Borrower  shall  cause the Nomura  Borrower to
     comply with the provisions of the Nomura Loan Documents governing damage or
     destruction  to the Nomura  Properties  and the  application  of  insurance
     proceeds  with respect  thereto.  Upon  completion  of any Work at a Nomura
     Property,  and payment in full therefore,  any remaining insurance proceeds
     which the  Nomura  Lender  does not  require be used to pay down the Nomura
     Loan shall be  delivered  promptly to Lender and shall be applied by Lender
     to the Loan balance.

SECTION 1.14      CONDEMNATION.

(1)  Borrower, immediately upon obtaining actual knowledge of the institution of
     any  proceedings  for  the  condemnation  of any  Property  or any  portion
     thereof,  shall notify Lender of the pendency of such proceedings (and upon
     such   notification,   Schedule   6.4  hereof   shall  be  deemed  to  have
     automatically  been  modified  to reflect  the  matters  contained  in such
     notification).   Lender,  at  its  election  and  in  its  discretion,  may
     participate  in any such  proceedings  affecting  a Borrower  Property  and
     Borrower,  from  time to time,  shall  deliver  to Lender  all  instruments
     requested  by Lender to permit  such  participation.  All awards  which are
     payable to Borrower from a  condemnation  or other  taking,  or purchase in
     lieu thereof,  of any Borrower  Property or any portion  thereof,  shall be
     paid and applied in accordance with the provisions of this Section 3.3. All
     such awards are hereby  assigned to and shall be paid to Lender.  Borrower,
     upon  request  by Lender,  shall  make,  execute  and  deliver  any and all
     instruments  requested for the purposes of confirming the assignment of the
     aforesaid  awards and  compensation  to Lender free and clear of any Liens.
     Borrower hereby  authorizes  Lender to collect and receive such awards,  to
     give proper  receipts and  acquittances  therefor and, to apply the same in
     the manner set forth in this Agreement.

(2)  In the event that a portion of any Borrower  Property is taken or condemned
     so that there is less than a Complete Taking,  then Borrower promptly shall
     commence and diligently continue to repair, restore, replace or rebuild the
     Property in accordance  with the  provisions  of Section 3.2 hereof,  as if
     such taking or condemnation had resulted in a casualty to the Property, and
     the proceeds of any award paid to Lender in connection therewith,  shall be
     made available to Borrower for such purposes;  provided,  however,  that in
     such event Borrower shall comply with, and such proceeds shall be disbursed
     to Borrower in accordance  with, the  provisions of Section 3.2 hereof.  In
     the event of a Complete Taking, all Net Capital Proceeds therefrom shall be
     applied in accordance with the release provisions in Section 2.4.

(3)  Notwithstanding  any taking by eminent  domain,  alteration of the grade of
     any street or other  injury to or decrease in value of any  Property by any
     Governmental  Authority,  Borrower  shall continue to make all payments due
     hereunder and under the other Loan Documents.

(4)  In the event of any condemnation or eminent domain  proceeding  affecting a
     Nomura  Property,  the  Borrower  shall cause the Nomura  Borrower to fully
     comply with the  provisions  of the Nomura Loan  Documents  governing  such
     proceedings.  In the event of a Complete Taking of a Nomura  Property,  all
     Net Capital  Proceeds  therefrom  shall be applied in  accordance  with the
     provisions of Section 2.5.

SECTION 1.15      DEPOSITS.

(1)  CHARGES. Borrower shall segregate in a separate account held by Borrower in
     a  depository  acceptable  to Lender (the  "CHARGES  ACCOUNT")  and deposit
     therein  on or before  the  twenty-fifth  (25th) day of each month from and
     after the Closing  Date until the  Obligations  have been paid in full,  an
     amount equal to  one-twelfth  (1/12th) of the annual  Charges in respect of
     all Borrower  Properties.  Such  deposits  shall be used by Borrower to pay
     such Charges prior to  delinquency or any earlier date that any interest or
     penalty can be imposed thereon. On the Closing Date, Borrower shall deposit
     into the Charges Account an amount which when added to the monthly deposits
     required to be made  thereafter  pursuant to this Section is  sufficient to
     pay the next  installment of such Charges.  From time to time, on demand by
     Lender,  Borrower  shall  pay  into the  Charges  Account  additional  sums
     sufficient to permit payment of the next due  installments of such Charges,
     if,  and to the extent  that,  the  required  monthly  deposits  thereafter
     falling  due  before  the  respective  payment  dates  would  otherwise  be
     insufficient to permit the full payment thereof.

(2)  GENERAL  REQUIREMENTS  FOR FUNDS IN  SEGREGATED  ACCOUNTS.  Borrower  shall
     irrevocably  instruct  and shall  cause all  depositories  maintaining  any
     segregated  accounts required under the terms of this Agreement  (including
     the Charges Account,  the Security Deposits and Lease Buy Out Consideration
     accounts  and accounts in respect of any Impaired  Properties)  to,  within
     five (5) days after demand from Lender, deposit all funds deposited in such
     segregated   accounts  maintained  by  Borrower  into  segregated  accounts
     maintained by Lender.  Thereafter,  Borrower shall cause all deposits which
     Borrower  otherwise  would  have  been  required  to make  into  Borrower's
     segregated  accounts to be deposited in such accounts maintained by Lender.
     Contemporaneously  with the delivery of such  deposits to Lender,  Borrower
     shall  deliver  to Lender any  Security  Deposit in the form of a letter of
     credit  (including  any Tenant Deposit  Letters of Credit),  certificate of
     deposit  or  similar  non-cash  form of credit  enhancement  which  exceeds
     $50,000. Upon any Event of Default, Lender may apply any funds deposited in
     the accounts  maintained  by Lender or Borrower to the payment of or to the
     performance of any Obligation, except for any Security Deposit which, under
     the terms of the Lease to which it relates or pursuant to applicable  state
     Law, must be maintained in a segregated account. Borrower hereby designates
     Lender  as its  attorney-in-fact,  which  designation  is  irrevocable  and
     coupled with an interest, to draw upon the accounts of Borrower in the name
     of Borrower and to apply the funds  therein as provided in the  immediately
     preceding sentence.  As additional  security for the Obligations,  Borrower
     hereby pledges and assigns to Lender, and grants to Lender a first priority
     security  interest  in,  all  Charges  Accounts  and all  other  segregated
     accounts required under this Agreement  (including the accounts  maintained
     by Lender to the extent Borrower has any interest  therein),  and all funds
     at any time on deposit  therein,  and any and all Security  Deposits in the
     form of a letter of credit,  certificate  of  deposit  or  similar  form of
     non-cash credit enhancement.  Prior to the Closing Date,  Borrower,  Lender
     and the  depository  at which any such  account is held shall have  entered
     into a deposit account  agreement  substantially in the form of Exhibit "B"
     hereto (provided that if, based upon the jurisdiction in which such account
     is located,  Lender  determines  that an  agreement  of  different  form or
     substance is necessary or appropriate to perfect Lender's security interest
     in such account, then such deposit account agreement shall be of such other
     form  and  substance  as  Lender  determines  is  reasonably  necessary  or
     appropriate  for such  jurisdiction).  Borrower  shall  deliver  to  Lender
     monthly  reports of (a) all balances  and activity  with respect to each of
     the segregated  accounts  required by the terms of this Agreement,  (b) all
     Tenant  Deposit  Letters of Credit then held by Borrower and any draws made
     by Borrower thereon, and (c) any other information  reasonably requested by
     Lender.

                                    ARTICLE 4

                              ENVIRONMENTAL MATTERS

SECTION 1.16 CERTAIN  DEFINITIONS.  As used herein, the following terms have the
meanings indicated:

(1)  "ENVIRONMENTAL  LAWS" means all Laws,  now or hereafter  in effect,  and in
     each case as amended or supplemented from time to time, and any judicial or
     administrative interpretation thereof, including any applicable judicial or
     administrative   order,  consent  decree  or  judgment,   relative  to  the
     applicable  Property,  relating to the  regulation  and  protection  of the
     environment and natural  resources  (including  ambient air, surface water,
     groundwater, wetlands, land surface or subsurface strata, wildlife, aquatic
     species and vegetation).  "Environmental Laws" shall include  Comprehensive
     Environmental Response, Compensation, and Liability Act of 1980, as amended
     (42  U.S.C.ss.   9601  et  seq.)   ("CERCLA");   the   Hazardous   Material
     Transportation  Act, as amended (49  U.S.C.ss.  1801 et seq.);  the Federal
     Insecticide, Fungicide, and Rodenticide Act, as amended (7 U.S.C.ss. 136 et
     seq.); the Resource Conservation and Recovery Act, as amended (42 U.S.C.ss.
     6901 et seq.)  ("RCRA");  the Toxic  Substance  Control Act, as amended (15
     U.S.C.ss. 2601 et seq.); the Clean Air Act, as amended (42 U.S.C.ss. 740 et
     seq.);  the Federal Water  Pollution  Control Act, as amended (33 U.S.C.ss.
     1251 et seq.); those portions of the Occupational Safety and Health Act, as
     amended (29 U.S.C.ss. 651 et seq.) ("OSHA") concerning Hazardous Materials;
     and the Safe Drinking  Water Act, as amended (42  U.S.C.ss.  300f et seq.),
     and any and all regulations promulgated thereunder, and all analogous state
     and local  counterparts  or equivalents and any  environmental  transfer of
     ownership  notification  or  approval  statutes  such  as  the  New  Jersey
     Industrial Site Recovery Act (N.J. Stat. Ann.ss. 13:1K-6 et seq.) ("ISRA").

(2)  "ENVIRONMENTAL  LIABILITIES  AND  COSTS"  means,  as  to  any  Person,  all
     liabilities,  obligations,  responsibilities,   Remedial  Actions,  losses,
     damages, punitive damages, consequential damages, treble damages, costs and
     expenses  (including  all fees,  disbursements  and  expenses  of  counsel,
     experts  and  consultants  and  costs  of  investigation   and  feasibility
     studies), fines, penalties,  sanctions and interest incurred as a result of
     any claim or demand  pending or  threatened  by any other  Person,  whether
     based in contract,  tort,  implied or express  warranty,  strict liability,
     criminal or civil  statute or common law  (including  any  thereof  arising
     under  any  Environmental   Law,  permit,   order  or  agreement  with  any
     Governmental   Authority   or  other   Person)  and  which  relate  to  any
     environmental  condition  regulated  under  any  Environmental  Law  or  in
     connection with any other  environmental  matter or a Release or threatened
     Release in connection with any Property.

(3)  "HAZARDOUS MATERIALS" means (a) petroleum or chemical products,  whether in
     liquid,  solid, or gaseous form, or any fraction or by-product thereof, (b)
     asbestos or asbestos-containing  materials,  (c) polychlorinated  biphenyls
     (pcbs), (d) radon gas, (e) underground  storage tanks, (f) any explosive or
     radioactive  substances,  (g) lead or  lead-based  paint,  or (h) any other
     substance, material, waste or mixture which is or shall be listed, defined,
     or otherwise  determined  by any  Governmental  Authority to be  hazardous,
     toxic,  dangerous  or  otherwise  regulated,  controlled  or giving rise to
     liability under any Environmental Laws.

(4)  "RELEASE" means, as to any Person, any release,  spill, emission,  leaking,
     pumping, injection,  deposit, disposal,  discharge,  dispersal, leaching or
     migration of any Hazardous Materials in violation of Environmental Law into
     the indoor or outdoor  environment  or into or out of any property owned by
     such Person,  including the movement of Hazardous Materials in violation of
     Environmental Law through or in the air, soil, surface water,  ground water
     or property,  any disposal,  any discharge,  spillage,  uncontrolled  loss,
     seepage  or  filtration   of  any  Hazardous   Materials  in  violation  of
     Environmental Law.

(5)  "REMEDIAL  ACTION" means all actions required by  Environmental  Law to (a)
     clean up, remove,  treat or in any other way address Hazardous Materials in
     the indoor or outdoor  environment,  (b)  prevent  the Release or threat of
     Release or minimize the further  Release of Hazardous  Materials so they do
     not migrate or endanger or threaten to endanger public health or welfare or
     the indoor or outdoor environment,  or (c) perform pre-remedial studies and
     investigations and post-remedial monitoring and care.

SECTION 1.17 REPRESENTATIONS AND WARRANTIES ON ENVIRONMENTAL  MATTERS. As of the
Closing Date,  except as disclosed in the reports listed on Schedule 4.2 hereof,
to Borrower's knowledge,  (1) no Hazardous Material is now or was formerly used,
stored, generated, manufactured,  installed, disposed of or otherwise present at
or about any  Property or any  property  adjacent to such  Property  (except for
cleaning  and other  products  currently  used in  connection  with the  routine
maintenance  or repair of any  Property in full  compliance  with  Environmental
Laws),   (2)  all  permits,   licenses,   approvals  and  filings   required  by
Environmental  Laws have been obtained,  and the use, operation and condition of
the Property does not, and did not previously,  violate any Environmental  Laws,
and (3) no civil,  criminal or  administrative  action,  suit,  claim,  hearing,
investigation  or proceeding has been brought or been  threatened,  nor have any
settlements  been  reached  by or with  any  parties  or any  liens  imposed  in
connection with any Property  concerning  Hazardous  Materials or  Environmental
Laws,  nor  have  any  written  notices   concerning   Hazardous   Materials  or
Environmental  Laws been received from any Person in connection  with any assets
or activities of Borrower, the Gateway Tower Owner or the Nomura Borrower or any
Property.  Borrower further  represents and warrants that (a) neither  Borrower,
the Nomura  Borrower,  the Gateway Tower Owner nor, to its knowledge,  any other
party has  been,  is or will be  involved  in  operations  at or near any of the
Properties  which  operations  could lead to (i) the  imposition of liability on
Borrower,  the Gateway Tower Owner or the Nomura Borrower,  or on any subsequent
or former owner of any of the  Properties  or (ii) the creation of a lien on any
of the  Properties  under the  Environmental  Laws or under any similar  laws or
regulations,  and (b) Borrower  will not permit,  and will not allow the Gateway
Tower Owner or Nomura  Borrower to permit,  any tenant or occupant of any of the
Properties  to engage in any  activity  that could  impose  liability  under the
Environmental  Laws on Borrower,  the Gateway Tower Owner or the Nomura Borrower
or any other owner of any of the Properties.

SECTION 1.18      COVENANTS ON ENVIRONMENTAL MATTERS.

(1)  Borrower shall (a) comply, and cause the Gateway Tower Owner and the Nomura
     Borrower to comply,  strictly and in all respects with the  requirements of
     the Environmental Laws and shall notify Lender within 10 days of Borrower's
     obtaining  knowledge  in the event of (i) any  Release at,  upon,  under or
     within any of the Properties or (ii)  discovery of any Hazardous  Materials
     at,  upon,  under or within any of the  Properties  where  such  discovered
     Hazardous  Materials may result in Environmental  Liabilities and Costs and
     (b) forward  promptly to Lender  copies of all  orders,  notices,  permits,
     applications and other  communications  and reports  Borrower,  the Gateway
     Tower Owner or the Nomura Borrower  receives in connection with any Release
     or the presence of any Hazardous Materials or any other matters relating to
     the Environmental Laws as all of the above may affect any of the Properties
     or any other properties  owned by Borrower,  the Gateway Tower Owner or the
     Nomura  Borrower.  Without  limiting the foregoing,  Borrower  specifically
     covenants and agrees to complete the Remedial Action described in paragraph
     2 of Schedule 8.19 hereof for the Properties.

(2)  To the extent that Lender reasonably believes that circumstances exist that
     require additional environmental testing to be performed on the Properties,
     promptly  upon the written  request of Lender  from time to time,  Borrower
     shall provide Lender,  at Borrower's  expense,  with an environmental  site
     assessment  or  environmental  audit  report  prepared by an  environmental
     engineering firm mutually acceptable to Lender and Borrower (and, as to any
     Nomura Property,  the Nomura Lender), to assess with a reasonable degree of
     certainty  the  presence  or absence  of any  Hazardous  Materials  and the
     potential  costs  in  connection  with  Remedial  Action  of any  Hazardous
     Materials found on, under, at or within any of the Properties.

(3)  Borrower and, subject to the provisions of the Joinder, WWPII and WWG shall
     at all times  indemnify and hold harmless  Lender  against and from any and
     all Environmental  Liabilities and Costs,  including reasonable  attorneys'
     fees, litigation costs and any costs of settlement, suffered or incurred by
     Lender, including those with respect to:

(1)  any  Release,  the threat of a Release,  or the  presence of any  Hazardous
     Materials  affecting  any of  the  Properties,  whether  or  not  the  same
     originates or emanates from any of the  Properties or any  contiguous  real
     property,  including any loss of value of any of the Properties as a result
     of any of the foregoing;

(2)  any costs of Remedial  Action  incurred by the United States  Government or
     any  costs  incurred  by any  other  Person  or  damages  from  injury  to,
     destruction of, or loss of natural resources, including reasonable costs of
     assessing  such  injury,  destruction  or  loss  incurred  pursuant  to any
     Environmental Laws; and/or

(3)  liability  for  personal  injury  or  property  damage  arising  under  any
     statutory or common law tort  theory,  including  damages  assessed for the
     maintenance  of a public or private  nuisance or for the  carrying on of an
     abnormally dangerous activity at or near any of the Properties.

The provisions of this Section 4.3 shall apply whether or not the  Environmental
Protection Agency, any other federal agency or any state or local  environmental
agency has taken or threatened any action in connection with the presence of any
Hazardous  Materials.  Notwithstanding  the  foregoing  or anything  else to the
contrary  in the  Loan  Documents,  in no  event  shall  Borrower,  WWPII or WWG
indemnify  Lender  for any  Environmental  Liabilities  and Costs  caused by (i)
actions  taken solely and  negligently  by Lender,  its  successors  and assigns
(including  any  purchaser  at a  foreclosure  sale),  or (ii) the  presence  of
Hazardous  Materials on any Property  which is brought on a Property  during the
time that  Lender or its  successors  or assigns  (including  a  purchaser  at a
foreclosure sale) takes actual physical  possession and control of such Property
(except to the extent caused by Borrower).

(4)  In the event of any  Release,  the threat of a Release,  or the presence of
     any Hazardous Materials, where such may result in Environmental Liabilities
     and Costs,  affecting any Property,  whether or not the same  originates or
     emanates from any Property or any contiguous real property, or if Borrower,
     the Gateway  Tower Owner or the Nomura  Borrower  shall fail to comply with
     any of  the  requirements  of the  Environmental  Laws,  Lender  may at its
     election,  but without the  obligation  so to do, give such notices  and/or
     cause such work to be  performed  and/or take any and all other  actions as
     Lender shall  reasonably  deem  necessary  in order to abate such  Release,
     remove the Hazardous  Materials to the extent required by the Environmental
     Laws, cure Borrower's,  the Gateway Tower Owner's or the Nomura  Borrower's
     noncompliance  with  Environmental  Laws or take  such  steps  as it  deems
     necessary to remove any lien imposed by federal or state  authorities under
     Environmental Laws.

(5)  If  prior  to  the  Maturity  Date  Lender   reasonably   determines  after
     consultation  with Borrower (a) that  Borrower,  the Gateway Tower Owner or
     the Nomura  Borrower  faces a material risk of sustaining an  Environmental
     Liability  and Cost (other than the cost of any Remedial  Action in respect
     of any Property  that will  continue to be owned by Borrower) and (b) that,
     taking into account  Borrower's then existing assets and other liabilities,
     the outstanding Obligations, available insurance coverage, the availability
     of indemnification or contribution from other parties (such as prior owners
     or owners of nearby  properties)  and other  relevant  factors,  such as an
     orderly (not forced)  disposition  of the  Properties,  there is a material
     risk that Borrower may be unable to satisfy such  contingent  Environmental
     Liability and Cost if and when it becomes due and to pay and perform all of
     the  Obligations  when due in full, such that the members in Borrower might
     become  obligated in respect of the Loan on a recourse basis as provided in
     the  Joinder,  then by notice to Borrower,  Lender may require  Borrower to
     establish and fund to the extent of monies otherwise  available to Borrower
     for  distribution  to its  members,  a Reserve  in a  reasonable  amount to
     satisfy  such  material  risk and to maintain  such funded  Reserve in such
     amount  and until such time as Lender can  reasonably  determine  that such
     Reserve is no longer needed to satisfy the  requirements of clauses (a) and
     (b)  of  this  sentence.  In  such  event,  Borrower,  notwithstanding  the
     foregoing  provisions of this Section 4.3, shall be required,  after making
     payments otherwise required on the Loan (and causing the Nomura Borrower to
     make  payments  otherwise  required  on the  Nomura  Loan),  to  apply  any
     additional Operating Cash Flow or Net Capital Proceeds to fund such Reserve
     before making any  distributions to the members in Borrower.  Borrower may,
     not more often than once each  quarter,  require  Lender to confirm that it
     requires  continuation  of such  Reserve  and  Lender  shall  set forth its
     reasons for so  requiring.  Borrower  will  cooperate  with Lender and make
     available  to it such  information  as Lender may  reasonably  request  for
     purposes of making any such determination  regarding a Reserve,  and Lender
     shall in good faith  consider any relevant  information  in respect of such
     matter provided to it by Borrower or any of its members.

(6)  In the event of a dispute  between Lender and Borrower,  WWPII or WWG as to
     whether  Borrower  or the  Gateway  Tower  Owner  faces a material  risk of
     sustaining an  Environmental  Liability and Cost as set forth in clause (a)
     of paragraph  (5) above or the  estimated  dollar  amount of such  material
     risk,  then Borrower shall pick an appropriate  consultant and Lender shall
     pick an appropriate  consultant,  and the two consultants  shall confer and
     jointly determine whether or not Borrower, or the Gateway Tower Owner faces
     a material  risk and the  estimated  dollar amount of such material risk as
     more  fully set forth in clause  (a) of  paragraph  (5)  above.  If the two
     consultants  cannot agree within thirty (30) days after being  appointed as
     consultants  as to whether  such a material  risk  exists or the  estimated
     dollar amount of such material risk, the two consultants will, within seven
     (7) days after the  expiration  or such  thirty  (30) day  period,  jointly
     select a third consultant and within thirty (30) days of its selection, the
     third consultant shall issue its written determination as to whether such a
     material risk exists and the estimated dollar amount of such material risk,
     which determination shall be final and binding on all parties. In the event
     that the two  consultants  shall be unable to timely agree on the selection
     of a third  consultant,  the  third  consultant  shall be  selected  by the
     President  of the  American  Arbitration  Association.  In the  event  of a
     dispute  between  Lender  and  Borrower,  WWPII  or WWG in  respect  of the
     establishment  or continuation  of any such Reserve,  such Reserve shall be
     established or continued in the interim while such dispute is resolved.  No
     such  resolution  shall  constitute a  limitation  on or waiver of Lender's
     right to seek  recourse  (subject to the  provisions  of the Joinder)  from
     WWPII or WWG to the extent of distributions made to them by Borrower in the
     event Lender becomes liable in respect of any  Environmental  Liability and
     Cost of Borrower against which it is entitled to indemnity from Borrower or
     in the  event  the  Loan  is not  repaid  in  full by  reason  of  Borrower
     sustaining any such Environmental Liability and Cost.

SECTION  1.19 NO WAIVER.  Notwithstanding  any  provision  in this  Article 4 or
elsewhere in the Loan Documents,  or any rights or remedies  granted by the Loan
Documents,  Lender does not waive and expressly reserves all rights and benefits
now or hereafter  accruing to Lender under any  "security  interest" or "secured
creditor"  exceptions  under applicable  Environmental  Laws, as the same may be
amended.  No action  taken by Lender  pursuant  to the Loan  Documents  shall be
deemed or  construed  to be a waiver  or  relinquishment  of any such  rights or
benefits under the "security interest exception."

                                    ARTICLE 5

                                 LEASING MATTERS

SECTION 1.20  REPRESENTATIONS AND WARRANTIES ON LEASES.  Borrower represents and
warrants to Lender with respect to all Leases that:  (1) the rent roll delivered
to Lender for each Property is true and correct as of the date of such rent roll
(provided that as to any rent roll delivered for a Property owned by Borrower or
an Affiliate of Borrower for less than two (2) months prior to the Closing Date,
the foregoing representation and warranty is made to Borrower's knowledge),  and
the  Leases are valid and in and full  force and  effect;  (2) the Leases are in
writing,  and there are no oral agreements with respect thereto;  (3) the copies
of the Leases  delivered  to Lender  are true and  complete;  (4) to  Borrower's
knowledge,  except as set forth in Schedule 5.1(A), neither the landlord nor any
Tenant is in material  default under any of the Leases;  (5) except as set forth
in Schedule 5.1(B), Borrower has no knowledge,  after due inquiry, of any notice
of termination or default with respect to any Lease;  (6) with respect to Leases
of space at the Borrower  Properties,  neither  Borrower  nor the Gateway  Tower
Owner has  assigned  or pledged any of the  Leases,  the rents or any  interests
therein  except to  Lender;  (7) with  respect  to Leases of space at the Nomura
Properties,  the Nomura  Borrower has not assigned or pledged any of the Leases,
the rents or any interests  therein except to the Nomura  Lender;  (8) except as
set forth in Schedule 5.1(C), no Tenant or other party has an option to purchase
all or any portion of any Property;  (9) except as set forth in Schedule 5.1(D),
no Tenant has the right to terminate its Lease prior to expiration of the stated
term of such lease;  (10) except as set forth in Schedule  5.1(E),  there are no
leasing commissions that are owing in connection with any Leases or tenancies in
effect as of the Closing Date; and (11) except as set forth in Schedule  5.1(F),
no tenant has  prepaid  more than one month's  rent in advance  (except for bona
fide security deposits not in excess of an amount equal to three month's rent).

SECTION 1.21 GENERAL LEASE  REQUIREMENTS.  Each Lease hereafter  entered into by
Borrower or the Gateway  Tower Owner shall (1) not permit the Tenant  thereunder
to  terminate  or  invalidate  the terms of the Lease as a result of any  action
taken by  Lender to  enforce  any  right or  remedy  under  the Loan  Documents,
including any sale of the Property or any portion thereof  pursuant to the power
of sale or otherwise,  (2) include a  subordination  clause  providing  that the
Lease and the  interest  of the Tenant  thereunder  in the  Property  are in all
respects subject and subordinate to the Loan Documents, (3) provide that, at the
option of Lender or the  purchaser  at a  foreclosure  sale or the  grantee in a
voluntary conveyance in lieu of such sale, the Tenant thereunder shall attorn to
Lender or to such  purchaser or grantee  under all of the terms of the Lease and
recognize  such entity as the lessor under the Lease for the balance of the term
of the Lease, and (4) provide that, in the event of the enforcement by Lender of
the rights and remedies  provided by law or in equity or by the Loan  Documents,
any Person  succeeding to the interest of Borrower or the Gateway Tower Owner as
a  result  of  such  enforcement  shall  not  be  bound  by  any  prepayment  of
installments  of rent for more than thirty (30) days in advance of the time when
the  same  shall  become  due  or  any   amendment,   modification,   extension,
cancellation  or renewal of the Lease made without the prior written  consent of
Lender.  Any Lease which is in a form  approved by Lender after the Closing Date
shall be deemed to comply with this  Section.  All Leases of space at the Nomura
Properties  shall  comply with the  leasing  requirements  contained  in Section
5.1(u)(i) of the Nomura Loan Agreement, and Borrower shall not permit the Nomura
Borrower  to seek a waiver  of any such  requirements  without  first  obtaining
Lender's consent to such waiver.

SECTION 1.22 COVENANTS.  Borrower shall deliver to Lender, promptly after demand
by Lender,  a rent roll for each Property in form and substance  satisfactory to
Lender.  Borrower shall promptly  deliver to Lender a fully executed copy of any
new Lease upon execution of the same, and shall promptly  deliver to Lender upon
Lender's  request a fully  executed  copy of all  other  Leases  not  previously
delivered to Lender.  Borrower  shall not, and Borrower  shall cause the Gateway
Tower Owner and the Nomura  Borrower  not to, (1) assign,  mortgage or otherwise
encumber  any of the Leases or any of the rents due or to become due  thereunder
or to which  Lender may now or  hereafter  become  entitled  (except,  as to the
Nomura  Properties,  Liens in favor of the Nomura Lender  pursuant to the Nomura
Loan Documents), or (2) accept prepayments of installments of rent for more than
thirty  (30) days in advance  of the time when the same  shall  become due or to
anticipate the rents thereunder, except for Security Deposits.

SECTION 1.23 ADDITIONAL COVENANTS REGARDING MATERIAL LEASES. All Leases covering
at least  20,000  rentable  square  feet,  and any  combination  of Leases which
collectively  cover at least  20,000  rentable  square feet of any  Property and
which are entered into with a single  Tenant or with Tenants who are  Affiliates
of each  other,  shall be  referred  to herein as  "MATERIAL  LEASES".  The term
"Material Leases" also shall include any Lease which covers 100% of the rentable
square feet at any Property,  and any  combination of Leases which  collectively
cover 100% of the  rentable  square feet of any  Property  and which are entered
into with a single Tenant or with Tenants who are  Affiliates of each other.  As
to any Material  Leases,  Borrower  shall, or shall cause the Nomura Borrower or
the Gateway Tower Owner to, (1) promptly perform all of the material  provisions
of the Material Leases on the part of the lessor thereunder to be performed; (2)
promptly  enforce all of the material  provisions of the Material  Leases on the
part of the Tenants  thereunder  to be performed;  (3) not cancel,  terminate or
accept a surrender  of any  Material  Lease,  or refrain  from taking any action
which  would  result  in the  termination  of a  Material  Lease  by any  Tenant
thereunder,  unless  the  Tenant  thereunder  is in  default  or such  action is
otherwise  commercially prudent and all Lease Buy Out Consideration,  if any, is
deposited  and used in the manner set forth  below in this  Article 5  (provided
that Borrower shall not be in breach of this clause (3) if a Tenant  exercises a
termination  right or option  expressly  provided for in such Tenant's  Material
Lease, and such right or option is not contingent or conditioned upon any act or
failure to act by Borrower,  the Gateway Tower Owner or the Nomura Borrower,  as
applicable);  (4) appear in and  prosecute  or defend  any action or  proceeding
arising  under,  growing out of, or in any manner  connected  with, the Material
Leases or the obligations of the lessor or the lessees  thereunder,  as the case
may be; (5) provide  Lender  with a copy of each  notice of default  received by
Borrower,  the Gateway Tower Owner or the Nomura  Borrower from the Tenant under
any Material Lease immediately upon receipt thereof and deliver to Lender a copy
of each  notice of default  sent by  Borrower,  the  Gateway  Tower Owner or the
Nomura  Borrower to a Tenant under any Material  Lease  simultaneously  with its
delivery of such notice  under such  Material  Lease;  and (6)  promptly  notify
Lender of all material disputes and claims in respect of any Material Leases and
not settle or adjust  any such  material  claims or  disputes  without  Lender's
consent.  In addition,  Borrower shall not, and Borrower shall cause the Gateway
Tower Owner and the Nomura  Borrower  not to, (a) consent to any  assignment  or
subletting of any Material  Lease if the assignor or sublessor  thereof would be
relieved from  liability  thereafter  accruing  under such Material  Lease;  (b)
discount any rents under any Material Lease or otherwise refrain from taking any
action with respect to a Material  Lease which would result in the diminution of
the rents  thereunder;  and (c)  without  Lender's  prior  consent,  enter into,
modify, amend, extend, renew, or otherwise change in any material manner, any of
the terms covenants or conditions of, any Material Lease.  Without  limiting the
foregoing,  Borrower shall not, and Borrower shall cause the Gateway Tower Owner
and the Nomura Borrower not to, enter into, extend or modify any new or existing
Material  Lease  affecting a Property for base  rentals  which are less than the
lesser of (i) the average  aggregate base rentals for all Leases  affecting such
Property,  and (ii) the fair market rental for similar space in other  buildings
similarly situated.

SECTION 1.24 LENDER'S  CONSENT TO  DEVIATIONS.  Borrower  shall obtain  Lender's
prior, written consent to any deviations from the leasing covenants set forth in
this Article 5 and (with  respect to the Nomura  Properties)  to any  deviations
from the leasing covenants set forth in the Nomura Loan Documents.  Lender shall
not unreasonably  withhold its consent to any such request,  except with respect
to requests to deviate from the minimum rent requirements for Material Leases as
set forth above,  in which event Lender may withhold its consent in its sole and
absolute  discretion.  If Lender  does not  respond to  Borrower's  request  for
consent to a deviation  from the leasing  covenants  set forth herein within ten
(10) days after  receipt of Borrower's  request,  Lender shall be deemed to have
consented to such request,  provided,  however, that with respect to any request
to deviate from the minimum  rent  requirements  for  Material  Leases set forth
above,  Lender's  failure to respond within such 10-day period shall be deemed a
rejection of such request.

SECTION  1.25  SECURITY  DEPOSITS;  LEASE BUY OUT  CONSIDERATION.  All  security
deposits paid or payable under any Lease covering space at a Borrower  Property,
including proceeds from any draw on a Tenant Deposit Letter of Credit ("SECURITY
DEPOSITS"),  and all  Lease  Buy  Out  Consideration  shall  be  maintained  and
administered by Borrower as follows:

(1)  Borrower shall maintain all Security  Deposits and separately  maintain all
     Lease Buy Out Consideration  paid by Tenants,  in separate accounts held by
     Borrower  in  a  depository   institution  acceptable  to  Lender.  Nothing
     contained  herein  shall be deemed to require  Borrower to deposit into any
     such account an amount equal to the Security Deposit required under a Lease
     if  either  Borrower  or a prior  landlord  under  such  Lease  waived  the
     obligation of Tenant under such Lease to pay such Security  Deposit (and as
     a result,  Borrower has no obligation to such Tenant for the return of such
     Security Deposit).  The segregated accounts for Security Deposits and Lease
     Buy Out  Consideration  required  by this  Section  shall be subject to the
     general  provisions of this Agreement  pertaining to any segregated account
     which Borrower is required to maintain in accordance with the terms of this
     Agreement.

(2)  Security  Deposit funds held in such account for any Lease shall be used to
     repay  the  Tenant  which  paid the  Security  Deposit  to  Borrower  or as
     otherwise provided in the applicable Lease. Forfeited Security Deposits and
     any other Security Deposits which Borrower is otherwise  entitled to retain
     due to a default by a Tenant under its Lease,  including  the draw proceeds
     from a Tenant  Deposit  Letter of Credit,  shall be used by Borrower to pay
     for Tenant Improvements, Capital Expenditures and Leasing Costs incurred in
     connection  with  re-leasing  the space  vacated  by the  Tenant  under the
     defaulted  Lease (or in repairing any damage to the Property  caused by the
     Tenant  default),  and  Borrower  shall have  exhausted  all such  Security
     Deposit funds in payment of such costs and expenses before Borrower may use
     or request any Working  Capital  Advances  for such  vacated  space  (I.E.,
     Borrower  may only  request  Working  Capital  Advances  to pay for  eighty
     percent (80%) of the costs which exceed the amount of such Security Deposit
     funds). Any excess Security Deposit funds remaining after payment of Tenant
     Improvements, Capital Expenditures and Leasing Costs incurred in connection
     with  re-leasing  the  space  vacated  by the  defaulting  Tenant  shall be
     retained in the segregated account to pay for Tenant Improvements,  Capital
     Expenditures  and Leasing  Costs  incurred in  connection  with other space
     within the  Property,  provided  that Borrower may use such excess funds to
     pay its 20% share of such costs,  in  conjunction  with  obtaining  Working
     Capital Advances therefor; provided further, however, that if (a) the space
     vacated by the  defaulting  Tenant has been  re-leased  at  then-prevailing
     market  rents  (and  otherwise  in  accordance  with the  terms of the Loan
     Agreement),  (b) the Debt Service  Coverage  Ratio is at least 1.20 to 1.0,
     and (c) no Event of  Default  has  occurred  and is  continuing,  then upon
     Borrower's  request Lender will consent to the release of such excess funds
     to Borrower.

(3)  Any Lease Buy Out  Consideration  received by Borrower or the Gateway Tower
     Owner or their agents with respect to space within a Property shall be used
     by Borrower or the Gateway Tower Owner to pay for any Tenant  Improvements,
     Capital  Expenditures,  Leasing Costs or marketing costs in connection with
     that Property.

(4)  Provided no Event of Default shall then be existing  under this  Agreement,
     if a Property in connection with which any Lease Buy Out  Consideration was
     paid or any Security  Deposits  are held will be released  from the lien of
     the applicable Deed of Trust in accordance with this Agreement, any amounts
     in the account  holding such Lease Buy Out  Consideration  and/or  Security
     Deposits  applicable to such Property shall be released,  concurrently with
     such release, to Borrower.

(5)  Borrower  shall  promptly  notify  Lender  of any draw on a Tenant  Deposit
     Letter of Credit,  and shall provide Lender with  reasonable  evidence that
     the proceeds from such draw have been deposited  into a segregated  account
     as  required  by this  Agreement.  The monthly  reports  which  Borrower is
     required  to  provide  Lender  in  connection  with the  Security  Deposits
     accounts and Lease Buy Out  Consideration  accounts shall  identify,  as to
     each such account,  the source Properties of the Security Deposits or Lease
     Buy Out Consideration  therein, and the amount of Security Deposit or Lease
     Buy  Out  Consideration  funds  in such  account  allocable  to  each  such
     Property.

(6)  If an Event of Default occurs and, as a result thereof,  Lender accelerates
     the Loan,  then upon  Lender's  demand  Borrower  shall deliver any and all
     original  Tenant  Deposit  Letters  of Credit to  Lender,  along  with such
     documentation  as is required by the issuing  banks to transfer  the Tenant
     Deposit  Letters of Credit  (including all draw rights and all other rights
     of the beneficiary thereunder) from Borrower to Lender or Lender's nominee.
     In addition, if a Draw Event occurs under a Tenant Deposit Letter of Credit
     after the Loan has been  accelerated  but before such Tenant Deposit Letter
     of Credit has been transferred to Lender or its nominee, then upon Lender's
     demand  Borrower  shall draw on such  Tenant  Deposit  Letter of Credit (in
     accordance  with the terms of the  applicable  Lease) and shall  direct the
     issuing  bank to wire  transfer  the  proceeds of such draw into an account
     designated  and  controlled  by Lender or its nominee.  Such draw  proceeds
     shall be governed by Section 3.4(2) of this Agreement.

(7)  Without  limiting  any  obligations  of  Borrower or the  Borrower  Parties
     hereunder,  any one of the following  acts shall be deemed to be, and shall
     constitute,  a  misappropriation  of  Security  Deposits  or other  amounts
     required to be held by Borrower in escrow or segregated  accounts  pursuant
     to the terms of the Loan  Agreement,  for which  Borrower  and the Borrower
     Parties  shall have  personal  liability  pursuant to clause (3) of Section
     12.1 and the Joinder:  (a)  Borrower's  failure to deposit  Tenant  Deposit
     Letter of Credit draw  proceeds  into a  segregated  account as required by
     paragraph (1) above,  (b) Borrower's  failure to use Security Deposit funds
     (including  Tenant  Deposit  Letter of Credit  draw  proceeds)  for  Tenant
     Improvements,  Capital  Expenditures  and  Leasing  Costs  as  required  by
     paragraph  (2)  above,  (c)  Borrower's  breach  of its  obligations  under
     paragraph (6) above.

Borrower shall cause the Nomura  Borrower to fully comply with the provisions of
the Nomura Loan  Documents  governing  the  maintenance  and  administration  of
Security  Deposits  and  Lease  Buyout  consideration  and,  to the  extent  not
addressed  by or  otherwise  in  conflict  with the Nomura Loan  Documents,  the
foregoing provisions of this Section 5.6.

SECTION  1.26  SUBORDINATION  AGREEMENTS;  TENANT  ESTOPPELS.  Without  limiting
Borrower's  obligation to provide Lender with subordination,  nondisturbance and
attornment  agreements  as  required  by Lender as a  condition  to the  Initial
Advance and the Advance of the Shattuck Office Center Holdback,  upon request by
Lender, Borrower shall use reasonable good faith efforts to cause the Tenants at
the Borrower  Properties,  under Material Leases selected by Lender,  to execute
and deliver to Lender  subordination,  nondisturbance and attornment  agreements
with respect to such Tenant's Lease within  forty-five (45) calendar days of the
date of Lender's request (on a form provided by Lender to Borrower).  Borrower's
failure to obtain a subordination, nondisturbance and attornment agreement as to
any Material Lease within the aforementioned  45-day period shall not constitute
a Potential Default so long as Borrower has used reasonable,  good faith efforts
to obtain such  subordination,  nondisturbance  and attornment  agreement during
such period. In addition, from time to time at Lender's request,  Borrower shall
request,  and shall cause the Nomura Borrower to request,  from each Tenant (and
shall deliver to Lender upon receipt from such Tenant) a written estoppel in the
form  required by such Tenant's  Lease (or if no form is specified,  in form and
substance  satisfactory  to Lender)  confirming,  among other things,  the term,
rent,  and other  provisions  and  matters  relating  to such  Lease;  provided,
however,  that Borrower's  obligation with respect to such estoppel certificates
shall be limited to requesting  (or causing the Nomura  Borrower to request,  as
applicable) such estoppel  certificates from Tenants and (if accurate) informing
such Tenants of their Lease obligation to provide such estoppel certificates. No
Potential  Default  shall be caused by the  failure  of one or more  Tenants  to
provide an estoppel certificate after such request is made.

                                    ARTICLE 6

                         REPRESENTATIONS AND WARRANTIES

To induce Lender to make the Loan, Borrower makes the following  representations
and warranties to Lender,  each and all of which shall be true and correct as of
the date of execution  and  delivery of this  Agreement,  and shall  survive the
execution  and  delivery  of  this  Agreement;   provided,   however,  that  the
representations and warranties  contained herein and in the other Loan Documents
with respect to the Properties are subject to the matters  detailed in Schedules
6.4, 6.5, 6.6, 6.7, 6.17 and 6.19 hereof.

SECTION 1.27  ORGANIZATIONAL  EXISTENCE;  COMPLIANCE WITH LAW. Each of Borrower,
the Gateway Tower Owner and the Nomura Borrower (1) is a limited  partnership or
limited liability company, as the case may be, duly organized,  validly existing
and in good standing  under the laws of its state of  organization;  (2) is duly
qualified  to do  business  and is in  good  standing  under  the  laws  of each
jurisdiction  where its  ownership  or lease of  property  or the conduct of its
business requires such  qualification;  (3) has the requisite  organizational or
partnership  (as  applicable)  power and  authority  and the legal right to own,
pledge, mortgage or otherwise encumber and operate its properties,  to lease the
properties  it  operates  under  lease,  and to  conduct  its  business  as now,
heretofore and proposed to be conducted; (4) has all material licenses, permits,
consents or approvals  from or by, and has made all material  filings with,  and
has  given  all  material  notices  to,  all  Governmental   Authorities  having
jurisdiction, to the extent required for such ownership,  operation and conduct;
(5) is in compliance with its  certificate of formation and operating  agreement
or certificate of limited partnership and partnership agreement (as applicable);
and (6) is in compliance with all applicable provisions of Law, except where the
failure to be in compliance would not have a Material Adverse Effect.

SECTION 1.28 ORGANIZATIONAL POWER; AUTHORIZATION;  ENFORCEABLE OBLIGATIONS.  The
execution, delivery and performance by Borrower of the Loan Documents, Ancillary
Agreements and all  instruments and documents to be delivered by Borrower and by
the Gateway Tower Owner, the Borrower Parties and/or the Nomura Borrower, to the
extent they are parties  thereto,  and the  creation of all Liens  provided  for
herein and therein:  (1) are within Borrower's,  the Gateway Tower Owner's,  the
Nomura Borrower's and the Borrower Parties'  partnership  and/or  organizational
power;  (2) have been duly  authorized  by all  necessary or proper  partnership
and/or  organizational  action; (3) are not in contravention of any provision of
Borrower's,  the Gateway Tower  Owner's,  the Nomura  Borrower's or the Borrower
Parties' respective  partnership  agreement and/or certificate or certificate of
formation and/or operating  agreement;  (4) do not violate any Law, or any order
or decree of any court or  Governmental  Authority;  (5) do not conflict with or
result in the breach or termination of, constitute a default under or accelerate
any  performance  required by, any indenture,  mortgage,  deed of trust,  lease,
agreement or other  instrument to which Borrower,  the Gateway Tower Owner,  the
Nomura  Borrower  or any  Borrower  Party is a party or by which  Borrower,  the
Gateway Tower Owner,  the Nomura  Borrower or any Borrower Party or any of their
property is bound;  (6) do not result in the creation or  imposition of any Lien
upon any of the  property of  Borrower,  the  Gateway  Tower  Owner,  the Nomura
Borrower or any Borrower Party other than those in favor of Lender, all pursuant
to the Loan  Documents;  and (7) do not  require  the consent or approval of any
Governmental  Authority  or any  other  Person,  other  than such  consents  and
approvals as have been duly  obtained,  made or complied with on or prior to the
Closing  Date.  Each of the Loan  Documents has been duly executed and delivered
for the  benefit of or on behalf of Borrower  and,  where a party  thereto,  the
Gateway  Tower Owner,  the Nomura  Borrower and the Borrower  Parties,  and each
constitutes  a legal,  valid and binding  obligation  of  Borrower,  and, to the
extent they are parties  thereto,  the Gateway Tower Owner,  the Nomura Borrower
and the Borrower  Parties,  enforceable  against each of them in accordance with
its terms.

SECTION  1.29  OWNERSHIP  OF  COLLATERAL;  LIENS.  (1)  Borrower  owns  good and
marketable title to the Collateral other than the Gateway Tower Property,  as to
which the Gateway Tower Owner owns good and  marketable  title;  (2) none of the
Collateral is subject to any Liens, except Permitted  Encumbrances;  (3) each of
Borrower  and the Gateway  Tower Owner has received  all  assignments,  waivers,
consents and other  documents,  and duly  effected all  recordings,  filings and
other actions  necessary to establish,  protect and perfect  Borrower's  and the
Gateway Tower Owner's right,  title and interest in and to the  Collateral;  (4)
the Nomura Borrower owns good and marketable title to the Nomura Properties; (5)
none  of the  Nomura  Properties  is  subject  to any  Liens,  except  Permitted
Encumbrances; and (6) the Nomura Borrower has received all assignments, waivers,
consents and other  documents,  and duly  effected all  recordings,  filings and
other actions necessary to establish,  protect and perfect the Nomura Borrower's
right, title and interest in and to the Nomura Properties.

SECTION 1.30 CONDEMNATION. As of the Closing Date, except as expressly set forth
in Schedule 6.4 hereof,  neither Borrower,  nor the Gateway Tower Owner, nor the
Nomura Borrower has received any notice, nor has any knowledge,  of any pending,
threatened or contemplated condemnation proceeding affecting any Property or any
part thereof,  or any proposed  termination  or impairment of any parking at any
Property or any part thereof in lieu of condemnation.

SECTION 1.31 CASUALTY. To Borrower's  knowledge,  as of the Closing Date, except
as expressly  set forth in Schedule  6.5 hereof,  no portion of any Property has
suffered  any  material  damage  by fire or other  casualty  loss  which has not
heretofore been completely  repaired and restored to its original  condition and
no  portion  of any  Property  is  located  in a special  flood  hazard  area as
designated by any Federal  Governmental  Authorities and which is not covered by
flood insurance required pursuant to insurance provisions hereof.

SECTION 1.32 MATERIAL AGREEMENTS.  As of the Closing Date, neither Borrower, nor
the Gateway  Tower Owner,  nor the Nomura  Borrower is directly,  indirectly  or
contingently  obligated with respect to any Material  Agreement  relating to any
Property except as expressly set forth in Schedule 6.6 hereof.

SECTION 1.33 PROPERTY  COMPLIANCE.  To Borrower's  knowledge,  as of the Closing
Date,  except as  expressly  set forth in  Schedule  6.7 hereof,  each  Property
complies  with  all  applicable  subdivision,   platting,  building,  land  use,
environmental,  safety,  traffic, fire and zoning Laws and requirements,  except
when the failure to so comply would not have a Material  Adverse Effect for such
Property.

SECTION 1.34 ACCESS.  To  Borrower's  knowledge,  as of the Closing  Date,  each
Property  has  access to and from  public  streets  and roads  adequate  for its
intended use, and all such streets and roads have been  completed,  dedicated to
the public use and  accepted for all  purposes  (including,  but not limited to,
maintenance) by the appropriate Governmental Authority.

SECTION 1.35 UTILITY SERVICES. To Borrower's knowledge,  as of the Closing Date,
all utility  services are  available  and  operational  in  sufficient  size and
capacity for the operation of each Property.

SECTION 1.36 PERMITS. To Borrower's knowledge, as of the Closing Date, except as
set forth in Schedule 6.10 hereof, all material licenses, permits,  inspections,
authorizations,  certifications  and  approvals  required  by  all  Governmental
Authorities having jurisdiction over each Property have been performed or issued
and paid for and are in full force and effect.

SECTION  1.37 NO DEFAULT.  To  Borrower's  knowledge,  neither  Borrower nor the
Nomura Borrower is in default, nor is any third party in default,  under or with
respect to any contract, agreement, lease or other instrument to which either is
a party, except for any default which (either  individually or collectively with
other  defaults  arising  out of the same  event  or  events)  would  not have a
Material Adverse Effect.

SECTION 1.38 OTHER  VENTURES/SINGLE  PURPOSE ENTITY.  Borrower is not engaged in
any joint venture or partnership with any other Person.  Borrower's sole purpose
is to own and operate the Borrower  Properties  and the Shattuck  Office  Center
Property  and to own the Gateway  Tower  Owner and Wells  Avenue  Holdings,  and
Borrower  does not own any  assets  other  than  the  Properties  and the  other
Collateral.  Borrower will not conduct any other business transactions except as
contemplated by this Loan Agreement.

SECTION 1.39 INVESTMENT  COMPANY ACT. Borrower is not required to register as an
"investment  company" under the Investment Company Act of 1940, as amended.  The
making of the Loan by Lender,  the  application  of the proceeds  and  repayment
thereof by Borrower and the  consummation  of the  transactions  contemplated by
this  Agreement  and the other Loan  Documents  will not violate any  applicable
provision of such Act or any applicable rule,  regulation or order issued by the
Securities and Exchange Commission thereunder which is binding on Borrower.

SECTION 1.40 MARGIN REGULATIONS. Borrower does not own any "margin security," as
that term is defined in  Regulation  U of the Board of  Governors of the Federal
Reserve System (the "FEDERAL RESERVE BOARD"),  and the proceeds of the Loan will
be used only for the purposes contemplated hereunder. The Loan will not be used,
directly or  indirectly,  for the purpose of  purchasing  or carrying any margin
security,  for the purpose of reducing or retiring  any  indebtedness  which was
originally  incurred to  purchase or carry any margin  security or for any other
purpose which might cause any of the loans under this Agreement to be considered
a "purpose  credit"  within the meaning of  Regulations T, U or X of the Federal
Reserve  Board.  Borrower will not take or permit any agent acting on its behalf
to take  any  action  which  might  cause  this  Agreement  or any  document  or
instrument  delivered  pursuant  hereto to violate any regulation of the Federal
Reserve Board.

SECTION 1.41 TAXES. All federal,  state, local and foreign tax returns,  reports
and statements required to be filed by Borrower, the Gateway Tower Owner and the
Nomura Borrower have been filed with the appropriate  Governmental Authority and
all Charges and other  impositions shown thereon to be due and payable have been
paid prior to the date on which any fine,  penalty,  interest or late charge may
be added thereto for nonpayment thereof,  or any such fine,  penalty,  interest,
late charge or loss has been paid.  Borrower,  the  Gateway  Tower Owner and the
Nomura  Borrower  each has paid when due and payable all Charges  required to be
paid by it.  Proper and  accurate  amounts have been  withheld by Borrower,  the
Gateway Tower Owner and the Nomura Borrower from their respective  employees for
all periods in full and complete  compliance  with the tax,  social security and
unemployment withholding provisions of applicable Law and such withholdings have
been timely paid to the respective Governmental  Authorities.  Neither Borrower,
nor the Gateway Tower Owner,  nor the Nomura Borrower has executed or filed with
the IRS or any other  Governmental  Authority  any  agreement or other  document
extending,  or having the effect of  extending,  the  period for  assessment  or
collection of any Charges.  Neither  Borrower,  nor the Gateway Tower Owner, nor
the Nomura  Borrower has agreed or been requested to make any  adjustment  under
IRC  Section  481(a) by reason of a change in  accounting  method or  otherwise.
Neither  Borrower,  nor the Gateway Tower Owner, nor the Nomura Borrower has any
obligation under any written tax sharing agreement.

SECTION 1.42 ERISA. There are no Plans maintained or contributed to by Borrower,
the Gateway Tower Owner or the Nomura Borrower.

SECTION 1.43 NO  LITIGATION.  Except as set forth in Schedule  6.17  hereof,  no
action,  claim or  proceeding  is now pending or, to the  knowledge of Borrower,
threatened  against  Borrower  or the  Nomura  Borrower,  at law,  in  equity or
otherwise, before any court, board, commission, agency or instrumentality of any
federal,  state, or local government or of any agency or subdivision thereof, or
before any arbitrator or panel of arbitrators,  which, if determined  adversely,
could  have a Material  Adverse  Effect.  No such  claim,  action or  proceeding
questions the validity of any of the Loan Documents or any action taken or to be
taken pursuant thereto,  or would have either individually or in the aggregate a
Material Adverse Effect.

SECTION 1.44 BROKERS.  No broker or finder  acting on behalf of Borrower  (other
than Goldman, Sachs & Co.) brought about the obtaining, making or closing of the
loans made  pursuant to this  Agreement  and Borrower has no  obligation  to any
Person (other than Goldman, Sachs & Co.) in respect of any finder's or brokerage
fees in connection with the loan contemplated by this Agreement.

SECTION  1.45  EMPLOYMENT  AND  LABOR  AGREEMENTS.   There  are  no  employment,
consulting or management agreements covering management of Borrower, the Gateway
Tower  Owner or the  Nomura  Borrower  and  there are no  collective  bargaining
agreements or other labor  agreements  covering any employees of Borrower or the
Nomura Borrower.

SECTION  1.46 LIENS.  The Liens  granted to Lender  pursuant  to the  Collateral
Documents are first priority Liens in and to the Collateral  described  therein,
subject to Permitted Encumbrances,  and upon completion of any necessary filings
and recordings, will be fully perfected.

SECTION 1.47 FULL DISCLOSURE.  To Borrower's knowledge, no information contained
in this Agreement,  the other Loan Documents, or any written statement furnished
by or on behalf of Borrower pursuant to the terms of this Agreement contains any
untrue  statement of a material fact or omits to state a material fact necessary
to make the  statements  contained  herein or therein not misleading in light of
the circumstances  under which made and in light of the written disclosures made
by Borrower to Lender.

SECTION  1.48  PROPERTY  DOCUMENTS.  Borrower  has  delivered to Lender true and
correct  copies  of  all  material   documents  related  to  the  Properties  in
Borrower's,  the Gateway Tower Owner's or the Nomura Borrower's possession or in
the possession of any agent or Affiliate of Borrower, the Gateway Tower Owner or
the  Nomura  Borrower  immediately  prior  to the  Closing  Date  (collectively,
"PROPERTY  DOCUMENTS")  prior  to the  Closing  Date  (other  than  confidential
internal  Borrower,  Gateway  Tower  Owner  or  Nomura  Borrower  memoranda  and
privileged  communications  between  Borrower,  the  Gateway  Tower Owner or the
Nomura Borrower and their respective attorneys), and there are no other material
documents,  reports (including  environmental and engineering  reports),  files,
correspondence,  surveys and other material  information of any kind  whatsoever
which are in  Borrower's,  the  Gateway  Tower  Owner's or the  Nomura  Borrower
possession  or in the  possession  of any agent or Affiliate  of  Borrower,  the
Gateway Tower Owner or the Nomura Borrower immediately prior to the Closing Date
and which have not been delivered to Lender.

SECTION 1.49 RENT ROLL. The rent roll previously delivered by Borrower to Lender
for each Property is a true and accurate copy of the rent roll for such Property
as of the date of such rent roll;  provided  that as to any  Property  which has
been owned by Borrower or an  Affiliate of Borrower for less than two (2) months
prior to the Closing Date,  the foregoing  representation  is made to Borrower's
knowledge.

SECTION 1.50 GROUND LEASE REPRESENTATIONS.  There are no ground leases affecting
any of the Properties other than the Challenger Road Ground Lease.

SECTION 1.51 PROPERTY  INFORMATION.  The  information in Schedule  1.1(A) hereof
with  respect to each  Property is correct  except to the extent that the actual
square  footage,  acreage  or number of units is not less than 95% of the square
footage,  acreage or number of units set forth on said Schedule  1.1(A) for each
Property.

SECTION 1.52 AFFILIATE INDEBTEDNESS. Except as set forth in Schedule 6.26, as of
the Closing  Date (a) WWPII,  Wells  Avenue  Holdings  and WASH  Manager have no
Indebtedness,  and (b) the Nomura  Borrower has no  Indebtedness  other than the
Nomura  Loan  and  "Permitted  Indebtedness"  (as  defined  in the  Nomura  Loan
Agreement).

SECTION 1.53 EQUITY  INVESTMENT IN THE  PROPERTIES.  The information in Schedule
6.27 hereof sets forth  Borrower's  cost basis for each Property and  Borrower's
total  cash  equity  (after  giving  effect  to  the  Initial  Advance)  in  the
Properties.

SECTION  1.54  SHATTUCK  OFFICE  CENTER  PROPERTY.  The Shattuck  Office  Center
Property is not subject to any Liens, other than Permitted Encumbrances. Without
limiting the foregoing,  the Shattuck  Office Center  Property is not subject to
any Liens securing any Indebtedness.

                                    ARTICLE 7

                       FINANCIAL REPORTING AND INFORMATION

SECTION 1.55  FINANCIAL  STATEMENTS AND NOTICES.  Borrower  covenants and agrees
that from and after the Closing Date it shall deliver to Lender:

(1)  MONTHLY REPORTS.  Monthly,  all written  statements,  reports and financial
     information  regarding the  Properties,  Borrower,  the Gateway Tower Owner
     and/or  the Nomura  Borrower  prepared  by the Asset  Manager  pursuant  to
     Section  11.3  (and any other  provision)  of the WWG  Operating  Agreement
     including monthly property operating  statements,  monthly rent rolls, aged
     tenant  delinquency  reports,  and monthly  accounting and (if requested by
     Lender) bank statements of all escrow and segregated accounts maintained by
     Borrower  pursuant to this  Agreement or maintained by the Nomura  Borrower
     pursuant to the Nomura Loan Documents.

(2)  QUARTERLY  REPORTS.  Within 45 days after the end of each  fiscal  quarter,
     commencing  with the quarter  ending June 30, 2001, a copy of the unaudited
     balance  sheet of Borrower  and the Gateway  Tower Owner as of the close of
     such  quarter and the related  statement  of income for that portion of the
     Fiscal Year  ending as of the close of such  quarter,  all  prepared by the
     manager or chief  financial  officer (if any) of Borrower and Asset Manager
     in  accordance  with GAAP  (subject  to the terms set forth  herein  and to
     normal  year-end   adjustments  and  excluding   footnotes  and  supporting
     schedules,  if same are not  available  (provided  that such  footnotes and
     supporting  schedules  are  promptly  delivered  to Lender when same become
     available)) and accompanied by the  certification  on behalf of Borrower of
     the manager or chief  financial  officer (if any) of Borrower that all such
     financial  statements  are  complete  and  correct  and  present  fairly in
     accordance with GAAP (subject to normal year-end adjustments) the financial
     position,  the results of operations and the cash flows of Borrower and the
     Gateway  Tower Owner as at the end of such  quarter and for the period then
     ended, and that there was no Event of Default in existence as of such time.

(3)  ANNUAL  REPORTS.  Within  ninety  (90) days after the close of each  Fiscal
     Year,  commencing  with the Fiscal Year ending December 31, 2001, a copy of
     the annual audited financial  statements of WWG, prepared on a consolidated
     and (except with respect to statements of cash flows)  consolidating  basis
     to include  direct and  indirect  subsidiaries  including  Borrower and the
     Gateway Tower Owner,  consisting of balance sheets and statements of income
     and capital  accounts  and cash flows  (setting  forth  beginning  with the
     reports for the Fiscal Year ending December 31, 2002 in comparative form in
     each case the  figures  for the  previous  Fiscal  Year),  which  financial
     statements  shall be prepared in accordance  with GAAP,  shall be certified
     (only with respect to the financial  statements)  without  qualification by
     the independent  certified public accountants regularly retained by WWG, or
     any other firm of independent  certified  public  accountants of recognized
     national standing selected by WWG, and acceptable to Lender,  shall include
     a statement  from such  accountants  to the effect that in connection  with
     their audit examination,  nothing has come to their attention to cause them
     to believe that a Potential  Default or Event of Default had occurred,  and
     shall be accompanied by a  certification  of the manager or chief financial
     officer (if any) of Borrower and the Gateway  Tower Owner that (a) all such
     financial  statements  are  complete  and  correct  and  present  fairly in
     accordance with GAAP the financial position,  the results of operations and
     the cash flows of  Borrower  and the  Gateway  Tower Owner as at the end of
     such year and for the period then ended,  (b) all  Operating  Cash Flow and
     Net Capital Proceeds have been applied in accordance with the provisions of
     this  Agreement  and (c) that there was no Event of Default in existence as
     of such time.

(4)  NOMURA  BORROWER  REPORTS.  As and when  required  under  the  Nomura  Loan
     Documents,  all periodic  financial  statements,  officer  certificates and
     other  information  which the Nomura Borrower is required to deliver to the
     Nomura Lender pursuant to Section 5.1(k) of the Nomura Loan Agreement.

(5)  BUDGETS.  Within  thirty  (30) days prior to the  beginning  of each Fiscal
     Year,  Borrower  shall  submit to Lender,  for  Lender's  review,  detailed
     operating and capital  budgets for each Property for such Fiscal Year. Such
     capital budgets shall include, where applicable, any then-remaining capital
     repair work identified in paragraph 1 of Schedule 8.19 (if any).

(6)  EVENTS OF DEFAULT;  MATERIAL  EVENTS.  As soon as  practicable,  but in any
     event  within two (2) Business  Days after  Borrower  becomes  aware of the
     existence of any Event of Default,  or any development or other information
     which would have a Material Adverse Effect,  telephonic or facsimile notice
     specifying   the  nature  of  such  Event  of  Default  or  development  or
     information,  including the anticipated effect thereof,  which notice shall
     be promptly confirmed in writing within five (5) days.

(7)  PAYMENT OF CHARGES.  Periodic  accounting  of  payments  made in respect of
     Charges  imposed upon each  Property  and amounts  available in the Charges
     Account in respect of the Property and, at Lender's request,  copies of tax
     bills  marked  "paid"  in  respect  of each  Property  or  canceled  checks
     evidencing payment of such tax bills.

SECTION 1.56 OTHER INFORMATION. Borrower shall deliver to Lender such additional
information  regarding Borrower,  its subsidiaries  (including the Gateway Tower
Owner and the Nomura  Borrower),  its business,  and any Property within 30 days
after  Lender's   reasonable  request  therefor,   provided  that  Borrower  has
reasonable access to such information at reasonable cost.

SECTION 1.57 AUDITS. At Lender's request,  Lender may audit the determination of
Gross Receipts,  Operating Expenses,  Operating Cash Flow, Capital Expenditures,
Net  Capital  Proceeds  and all  escrow or  segregated  accounts  maintained  by
Borrower including escrow or segregated accounts for Security Deposits, Charges,
Lease Buy Out  Consideration,  and Operating Cash Flow required to be maintained
by Borrower pursuant to the terms hereof, which audit may be conducted by Lender
or its representatives  reviewing Borrower's and the Gateway Tower Owner's books
and records (at Lender's expense except as provided  below).  Borrower shall pay
to Lender, travel expenses and reasonable out-of-pocket costs incurred by Lender
in  performing  any single audit in any  calendar  year and, in addition to such
audit, any audit performed by Lender or its agent in connection with (1) Working
Capital  Advances or Holdback  Advances,  (2) a request from Borrower to release
any  Property  from the Lien of the Loan  Documents or to consent to a sale of a
Nomura Property,  or (3) an extension of the Term. If any audit performed by, or
on behalf of, Lender  discloses  that  Borrower's  statement of Gross  Receipts,
Operating  Expenses,  Operating  Cash  Flow,  Capital  Expenditures,  escrow  or
segregated accounts (for Security Deposits, Charges, Lease Buy Out Consideration
or Operating Cash Flow), Net Capital Proceeds or similar  financial  information
is misstated or is otherwise incorrect by greater than 5% of Borrower's reported
amount,  then  Borrower  shall pay to Lender  the full cost of  Lender's  audit.
Notwithstanding  the  foregoing,  during any period that an Event of Default has
occurred and is continuing,  Borrower shall be responsible for the full cost and
expense of any Lender investigation or audit conducted by Lender.

SECTION 1.58  COMMUNICATION  WITH ACCOUNTANTS.  Borrower  authorizes,  and shall
cause the Gateway Tower Owner and the Nomura  Borrower to  authorize,  Lender to
communicate  directly with Borrower's,  the Gateway Tower Owner's and the Nomura
Borrower's  independent  certified public accountants,  and Borrower authorizes,
and shall cause the Gateway  Tower Owner and the Nomura  Borrower to  authorize,
those  accountants  to disclose to Lender any and all financial  statements  and
other  supporting  financial  documents  and schedules  including  copies of any
management  letter with respect to the business,  financial  condition and other
affairs of Borrower, the Gateway Tower Owner and the Nomura Borrower.

                                    ARTICLE 8

                              AFFIRMATIVE COVENANTS

Borrower  covenants and agrees that,  unless Lender shall  otherwise  consent in
writing, from and after the Closing Date and until the Maturity Date:

SECTION 1.59  MAINTENANCE OF EXISTENCE AND CONDUCT OF BUSINESS.  Borrower shall,
and shall cause the Gateway  Tower Owner and the Nomura  Borrower  to, (1) do or
cause to be done all things  necessary  to  preserve  and keep in full force and
effect its existence as a limited  liability  company,  and,  unless the loss of
same shall not have a Material Adverse Effect, its rights, licenses,  privileges
and  franchises;  (2)  continue  to  conduct  its  business  only  as  permitted
hereunder;  (3) not make any  changes in its  business  objectives,  purposes or
operations  in any way  that  would  have a  Material  Adverse  Effect;  and (4)
transact business only in the name of Wellsford/Whitehall  Holdings,  L.L.C. (as
to Borrower),  WWG 401 North  Washington LLC (as to the Gateway Tower Owner) and
Wells Avenue Senior  Holdings,  L.L.C. (as to the Nomura  Borrower),  or in each
case such other  names as Borrower  shall  specify to Lender in writing not less
than thirty (30) days prior to the first date such name is used by Borrower, the
Gateway Tower Owner or the Nomura Borrower.

SECTION 1.60 PAYMENT OF INDEBTEDNESS.

(1)  Borrower  shall,  using Gross Receipts from all of the Borrower  Properties
     and Operating Cash Flow (after debt service on the Nomura Loan) from all of
     the  Nomura  Properties,  (a) pay and  discharge  or  cause  to be paid and
     discharged  all  Obligations,  as and when due and payable  (subject to any
     notice  or  grace  periods  provided  in the Loan  Documents),  (b) pay and
     discharge or cause to be paid and  discharged (i) prior to the day that any
     interest  or penalty  can be imposed  thereon,  all  Charges  imposed  upon
     Borrower, its income and profits, or any of its property (real, personal or
     mixed), and (ii) lawful claims for labor, materials,  supplies and services
     used by or supplied to Borrower  before any thereof shall become in default
     (subject to any  applicable  notice or grace periods) and (c) to the extent
     not paid  from  Loan  proceeds,  pay all  Capital  Expenditures  and  other
     Indebtedness  related to any of the  Borrower  Properties  as and when such
     amounts come due.

(2)  Borrower may in good faith contest, by proper legal actions or proceedings,
     the validity or amount of any Charges or claims arising under clause (b) of
     paragraph (1) above,  provided that at the time of commencement of any such
     action or  proceeding,  and during  the  pendency  thereof  (a) no Event of
     Default shall be continuing; (b) adequate Reserves with respect thereto are
     maintained  on the books of Borrower,  in  accordance  with GAAP;  (c) such
     contest operates to suspend  collection of the contested  Charges or claims
     and is maintained and prosecuted  continuously with diligence;  (d) none of
     the Borrower  Properties would be subject to forfeiture or loss or any Lien
     by reason of the  institution or prosecution of such contest;  (e) Borrower
     shall promptly pay or discharge  such contested  Charges and all additional
     charges,  interest,  penalties and  expenses,  if any, and shall deliver to
     Lender  evidence  acceptable  to  Lender  of such  compliance,  payment  or
     discharge,  if such  contest is  terminated  or  discontinued  adversely to
     Borrower;  and (f) Lender has not advised  Borrower in writing  that Lender
     reasonably  believes that nonpayment or  nondischarge  thereof would have a
     Material Adverse Effect. Notwithstanding the foregoing, Borrower shall have
     the  right  to pay the  Charges  or  claims  arising  under  clause  (b) of
     paragraph  (1) above and in good faith  contest by proper  legal  action or
     proceedings, the validity or amount of such Charges or claims.

(3)  If Borrower shall be in default of its obligations to pay and discharge any
     Charges as  provided  in  paragraph  (1) above and  provided  no contest as
     described  in and as  permitted  under  paragraph  (2) above is in process,
     Lender, at its option and without notice, may pay such Charges and, in such
     event,  the amount of such  Charges so paid by Lender (a) shall be added to
     the Obligations,  (b) shall be secured by the Collateral,  and (c) shall be
     immediately due and payable,  on demand,  together with interest thereon at
     the Default Rate from the date of any such payment by Lender to the date of
     any repayment to Lender.

SECTION 1.61 BOOKS AND RECORDS.  Borrower shall keep adequate  records and books
of account with respect to its business  activities and the business  activities
of its  subsidiaries,  in which proper entries,  reflecting all of its financial
transactions, are made in accordance with GAAP.

SECTION 1.62 LITIGATION.  Borrower shall notify Lender in writing, promptly upon
learning thereof,  of any litigation  commenced  against  Borrower,  the Gateway
Tower Owner or the Nomura Borrower, and of the institution against Borrower, the
Gateway  Tower  Owner  or  the  Nomura   Borrower  of  any  uninsured   suit  or
administrative  proceeding  that, in either case, if determined  adversely would
have a  Material  Adverse  Effect.  Any such  notification  shall be  deemed  to
automatically  update  Schedule 6.17 hereto to reflect the matters  contained in
such notification.

SECTION 1.63 COMPLIANCE WITH LAW. Subject to Borrower's right to contest Charges
to the extent and in the manner expressly permitted elsewhere in this Agreement,
Borrower  shall comply with all Laws  applicable to Borrower,  the Gateway Tower
Owner,  and each Property,  including,  with respect to Borrower and the Gateway
Tower Owner only, ERISA, those regarding the collection,  payment and deposit of
employees' income,  unemployment and social security taxes,  except in each case
where the failure to so comply will not have a Material Adverse Effect.

SECTION 1.64 MAINTENANCE OF PROPERTY.

(1)  Borrower  shall,  and shall  cause the  Gateway  Tower Owner and the Nomura
     Borrower to, with respect to each  Property,  (a) maintain the Property and
     the improvements located thereon in good repair,  order and condition;  (b)
     make  all  necessary  repairs,   renewals,   replacements,   additions  and
     improvements to the Property;  (c) not abandon the Property; (d) not permit
     or suffer any waste to occur in respect of the  Property;  (e) refrain from
     impairing or  diminishing  the value or integrity of the Property or, as to
     each Borrower Property,  the priority and security of the Lien of Lender on
     the  Property;  (f)  except  for the work at the "128 Tech  Center"  Nomura
     Property, as described in the 2-year capital budget approved by Lender as a
     condition to the Initial Advance, not remove,  demolish or materially alter
     any of the  Property  without the prior  written  consent of Lender in each
     instance,  except that, Borrower shall have the right to remove and dispose
     of, free of the Lien of Lender,  such  fixtures as may,  from time to time,
     become  worn out or  obsolete,  provided  that,  simultaneously  with  such
     removal, any such fixtures shall be replaced with other fixtures that shall
     have the value and utility equal to that of the replaced fixtures and which
     shall  be free of any  security  agreement  or  other  Liens of any kind or
     nature whatsoever,  and by such removal and replacement,  Borrower shall be
     deemed to have subjected such replacement  fixtures to the Lien of the Deed
     of Trust encumbering such Property; (g) not execute any conditional bill of
     sale,  chattel  mortgage or other security  instrument  covering any of the
     equipment  located  at  any  Property  or  purchase  any  equipment  unless
     ownership  of the same will vest  unconditionally  in  Borrower,  free from
     encumbrances on delivery to the Property; (h) not make or permit to be made
     or  installed,  any  alterations  or  additions to the Property if doing so
     would,  in the  opinion  of  Lender,  impair to any extent the value of the
     Property;  and (i) not make,  suffer or permit any nuisance to exist on the
     Property or any portions  thereof,  except as to each of the  covenants (a)
     through  (i), to the extent  that the failure to do so (or to refrain  from
     doing so, as applicable) would not have a Material Adverse Effect.

(2)  Borrower shall not permit,  and shall cause the Gateway Tower Owner and the
     Nomura Borrower to not permit, by any act or omission,  any building or any
     other improvement  located on any property which is not subject to the Lien
     of a Deed of Trust (or a  mortgage  or deed of trust  securing  the  Nomura
     Loan) to rely upon any  Property  or any  portion  thereof or any  interest
     therein to fulfill  any legal  requirements.  Borrower  shall not impair or
     permit the  impairment  of, by any act or  omission,  the  integrity of any
     Property  as one or more lots  separate  and apart from all other  premises
     owned by any other Person. Except as reflected in or otherwise contemplated
     by an Asset  Business  Plan,  Borrower  shall not  initiate,  or permit the
     initiation  of,  or  join  in,  any  zoning   change,   easement  or  other
     modification  of zoning  regulations  in respect of any Property that would
     result in a Material Adverse Effect.  Except as otherwise permitted herein,
     Borrower  shall not, and Borrower  shall not permit the Gateway Tower Owner
     or the  Nomura  Borrower  to,  (i) impose  any  restrictions,  covenant  or
     encumbrance  upon  any  Property,  execute  or file  any  subdivision  plot
     affecting any Property or consent to the  annexation of any Property to any
     municipality that would result in a Material Adverse Effect, or (ii) permit
     or suffer  the  Property  to be used by the  public  or any  Person in such
     manner as might make  possible a claim of adverse usage or possession or of
     any implied right or easement.

SECTION 1.65 AGREEMENTS. Borrower shall, and shall cause the Gateway Tower Owner
and the Nomura  Borrower to,  perform,  within all required time periods  (after
giving effect to any applicable notice or grace periods), all of its obligations
and enforce all of its rights  under each  Material  Agreement  to which it is a
party if the failure to perform  such  obligations  or enforce such rights would
have a Material Adverse Effect.

SECTION 1.66 EMPLOYEE  PLANS.  Borrower  shall not adopt any Plan, and shall not
permit the Gateway Tower Owner or the Nomura Borrower to adopt any Plan, without
the consent of Lender.

SECTION 1.67 ACCESS.  Lender and any of its  officers,  employees  and/or agents
shall have the right, exercisable as frequently as Lender (or any representative
of Lender) reasonably determines to be appropriate, during normal business hours
(or at such  other  times  as may  reasonably  be  requested  by  Lender  or any
representative  of  Lender)  to  inspect  any  Property.  Lender  and any of its
officers,   employees  and/or  agents  shall  have  the  right,  exercisable  as
frequently as Lender (or any representative of Lender) reasonably  determines to
be  appropriate,  during  normal  business  hours (or at such other times as may
reasonably be requested by Lender or any representative of Lender),  to inspect,
audit and make  extracts from all of  Borrower's,  the Gateway Tower Owner's and
the Nomura  Borrower's  records,  files and books of account  at  Lender's  cost
except  in those  instances  in which  Lender's  audit  costs  are to be paid by
Borrower, as provided for elsewhere in this Agreement. Borrower shall, and shall
cause the Gateway Tower Owner and the Nomura  Borrower to,  deliver any document
or instrument reasonably necessary for Lender (or any representative of Lender),
as  any of  them  may  request,  to  obtain  records  from  any  service  bureau
maintaining  records  for  Borrower,  the  Gateway  Tower  Owner  or the  Nomura
Borrower. Borrower shall, and shall cause the Gateway Tower Owner and the Nomura
Borrower to, instruct its banking and other financial institutions and the Asset
Manager to make available to Lender such  information  and records as Lender (or
any representative of Lender) may reasonably request.

Section 8.1 TAXES ON PAYMENTS OR SECURITY.

(1)  To the extent  permitted by applicable Law and subject to the last sentence
     of this paragraph,  any and all payments by Borrower hereunder or under the
     Note shall be made free and clear of and without  deduction for any and all
     present  or  future  taxes,  levies,  mortgage  recording  taxes,  imposts,
     deductions,  charges or  withholdings,  and all  liabilities  with  respect
     thereto,  excluding  franchise taxes or taxes imposed on or measured by the
     net or gross  income,  capital  or  gross  receipts  of  Lender  (all  such
     non-excluded taxes, levies, imposts, deductions,  charges, withholdings and
     liabilities being hereinafter referred to as "TAXES"). If Borrower shall be
     required  by Law to deduct any Taxes from or in respect of any sum  payable
     hereunder  or under the Note (for which Lender will not be able to obtain a
     refund or credit  against  taxes other than with  respect to the receipt of
     payments  pursuant  to the Note),  (a) the sum  payable to Lender  shall be
     increased as may be necessary so that after making all required  deductions
     (including  deductions  applicable  to  additional  sums payable under this
     Section), Lender receives an amount equal to the sum it would have received
     had no such deductions been made (but only to the extent that Lender is not
     able to obtain a refund or credit of such amounts  deducted),  (b) Borrower
     shall make such  deductions,  and (c)  Borrower  shall pay the full  amount
     deducted to the  relevant  taxing or other  authority  in  accordance  with
     applicable Law.  Borrower will not be required to pay any amounts  pursuant
     to this  paragraph (1) for Taxes to a subsequent  holder of the Note to the
     extent that GECC would not have been required to pay such Taxes.

(2)  To the extent  permitted by applicable Law and subject to the last sentence
     of this  paragraph,  Borrower  agrees to pay any present or future stamp or
     documentary taxes or any other sales,  transfer,  excise or property taxes,
     charges or similar  levies that arise from any payment  made  hereunder  or
     under  the  Note  or  from  the  execution,  sale,  transfer,  delivery  or
     registration  of, or otherwise with respect to, this Agreement or the Note,
     the Loan Documents and any other  agreements and  instruments  contemplated
     thereby  (hereinafter  referred to as "OTHER  Taxes")  except for  excluded
     taxes  described in paragraph  (1) above.  Borrower will not be required to
     pay any  amounts to a  subsequent  holder of the Note as  provided  in this
     paragraph  (2) to the extent that Other  Taxes would not have been  payable
     had GECC continued to hold the Note.

(3)  To the extent permitted by applicable Law,  Borrower shall indemnify Lender
     for the full amount of Taxes or Other Taxes  (including  any Taxes or Other
     Taxes imposed by any  jurisdiction  on amounts payable under this Section),
     but not excluded  taxes  described in paragraph (1) above or Taxes or Other
     Taxes imposed due to any action of Lender, paid by Lender and any liability
     (including  penalties,  interest and  expenses)  arising  therefrom or with
     respect thereto, whether or not such Taxes or Other Taxes were correctly or
     legally  asserted.  This  indemnification  shall be made within ninety (90)
     days from the date Lender makes written demand therefor.

(4)  Within  ninety (90) days after the date of any  payment of Taxes,  Borrower
     shall  furnish to Lender,  at the address to which notices to Lender are to
     be sent under this Agreement, the original or a certified copy of a receipt
     evidencing payment thereof.

(5)  Without  prejudice to the survival of any other agreement of Borrower,  the
     agreements and obligations of Borrower and Lender contained in this Section
     shall survive the payment in full of principal  and interest  hereunder and
     under the Note and the termination of this Agreement.

(6)  Lender shall promptly  notify Borrower in writing upon receipt by Lender of
     notice of any pending or threatened  federal,  state or local tax audits or
     assessments  for which  Borrower  would be  required  to  indemnify  Lender
     pursuant to this Section.  Borrower shall be entitled to participate at its
     own  expense  in the  defense  of any tax  claim  which may be  subject  to
     indemnification  by Borrower  pursuant to this  Section.  Lender  shall not
     settle any such tax claim without the prior written consent of Borrower.

(7)  If Lender is  entitled  to a refund or credit  relating  to  amounts  which
     Borrower has paid Lender  pursuant to this Section,  Lender shall  promptly
     pay to  Borrower  the  amount of such  refund or credit  together  with any
     interest  thereon  upon  receipt  thereof.  Upon  reliance of an opinion of
     counsel  that  provides  that there is a  reasonable  basis for such claim,
     Borrower can require Lender to file all necessary or appropriate  tax forms
     to  obtain  a  refund  or  credit  of an  amount  for  which  Borrower  has
     indemnified Lender.

SECTION 1.68  ENFORCEMENT.  At Borrower's  sole cost and expense,  Borrower will
appear in and defend any action  growing out of or in any manner  connected with
any of the Collateral  Documents,  or the obligations or liabilities of Borrower
or any other party thereunder,  or any guarantee thereof,  and Lender, if made a
party to any such  action,  may employ  counsel and incur and pay the  necessary
costs and expenses and reasonable  attorneys' fees, and all such sums,  together
with  interest  thereon  at the  Default  Rate,  shall  immediately  be due from
Borrower, shall be added to the Obligations and secured by the Collateral.

SECTION 1.69 ASSET MANAGEMENT.

(1)  Borrower  shall  not take or permit  the  Gateway  Tower  Owner to take any
     action that is in contravention of the Agreement Regarding Asset Management
     (including  the  payment  to Asset  Manager  of any fee prior to making the
     payment of any  principal,  interest  or other sums then due under the Loan
     Documents).

(2)  At Borrower's sole cost and expense, Borrower will appear in and defend any
     action growing out of or in any manner  connected with the Asset  Manager's
     obligations  (with  respect  to the  Properties)  under  the WWG  Operating
     Agreement or the  obligations or liabilities of Borrower or any other party
     thereunder,  and  Lender,  if made a party to any such  action,  may employ
     counsel and incur and pay the  necessary  out-of-pocket  costs and expenses
     and reasonable  attorneys' fees, and all such sums,  together with interest
     thereon at the Default Rate, shall immediately be due from Borrower,  shall
     be added to the Obligations and secured by the Collateral.

SECTION 1.70 MAINTENANCE OF REPRESENTATIONS;  SUPPLEMENTAL DISCLOSURE.  Borrower
shall cause the  representations  set forth in Article 6 hereof (other than with
respect to the representations  that are given to the knowledge of Borrower,  as
to which no further  representation  shall be deemed given) to remain true as of
the date of the  funding of any  Advance  (I.E.,  the  representations  shall be
updated and made as of such later dates rather than restated at such later dates
as of the Closing  Date,  except  that no such  update  shall be required if the
matter to be  disclosed  would not have a  Material  Adverse  Effect).  Lender's
remedies for a breach of any such updated representation  regarding any Property
shall be the same as for a breach of a  representation,  as described in Section
8.17. From time to time as may be necessary (in the event that such  information
is not otherwise delivered by Borrower to Lender pursuant to this Agreement), so
long as there are Obligations outstanding hereunder, Borrower will supplement or
amend  each  Schedule  or  representation  herein  with  respect  to any  matter
hereafter arising which, if existing or occurring at the date of this Agreement,
would have been  required to be set forth or described in such Schedule or as an
exception  to  such   representation  or  which  is  necessary  to  correct  any
information  in  such  Schedule  or  representation   which  has  been  rendered
inaccurate  thereby,  provided,  however,  that any notice  delivered  to Lender
hereunder in respect of any information that relates to a  representation  shall
be deemed to constitute an exception to such representation  whether or not such
information would otherwise appear on a Schedule.

SECTION 1.71 PROPERTY DOCUMENTS;  ASSET BUSINESS PLANS.  Borrower shall promptly
deliver to Lender  true and  correct  copies of any and all  Property  Documents
(other than internal Borrower, Gateway Tower Owner and Nomura Borrower memoranda
and communications between Borrower, Gateway Tower Owner and Nomura Borrower and
their respective  counsel)  received by Borrower,  Gateway Tower Owner or Nomura
Borrower  at any time  during the term of the Loan.  Borrower  shall  deliver to
Lender copies of all Asset Business Plans (including  annual budgets) within the
time  periods set forth for  delivery of such Asset  Business  Plans  (including
annual budgets) to Borrower pursuant to the WWG Operating Agreement,  subject to
reasonable extensions.

SECTION 1.72 INTEREST RATE CAP  AGREEMENT.  Within  fourteen (14) days after the
Closing Date, Borrower agrees to enter into and at all times thereafter maintain
an interest rate cap agreement or other  hedging  device in connection  with the
Loan,  which  agreement or hedging device shall have a notional  amount not less
than the  outstanding  Loan  balance and shall have a strike  price of, or shall
otherwise cap Borrower's  LIBOR Rate exposure at, not more than 300 basis points
in excess of the LIBOR  Rate in  effect  on the  Closing  Date.  The form of the
interest rate cap agreement or other hedging  device  required  pursuant to this
Section,   and  the   counterparty  to  such  agreement,   shall  be  reasonably
satisfactory  to Lender.  Borrower  shall,  upon  execution  of such  agreement,
deliver to Lender the Collateral Assignment of Interest Rate Cap Agreement, duly
executed and delivered by Borrower in favor of Lender, together with the consent
of the counterparty thereunder to such collateral assignment.  The interest rate
cap agreement shall at all times cover the outstanding Loan balance.

SECTION 1.73 INDEMNIFICATION.  Subject to the provisions of Section 12.1 hereof,
Borrower shall  indemnify and hold Lender  harmless from and against any and all
suits, actions,  proceedings,  claims, damages, losses, liabilities and expenses
(including  reasonable  attorneys'  fees  and  disbursements,   including  those
incurred  upon any  appeal)  which may be  instituted  or  asserted  against  or
incurred  by Lender as the  result of its  having  entered  into any of the Loan
Documents or extended  credit  hereunder  (excluding  those  arising  solely and
directly from Lender's gross  negligence or willful  misconduct),  including any
suits, actions,  proceedings,  claims, damages, losses,  liabilities or expenses
arising in connection with any brokerage,  finders' or other commissions or fees
which any broker or other Person claims is owing in connection  with  Borrower's
or the Gateway  Tower  Owner's  acquisition  of the  Borrower  Properties  or in
connection with the Loan or the transactions  contemplated by the Loan Documents
(except to the extent such Person claims that such commissions or fees are owing
solely by virtue of its dealings with Lender).

SECTION 1.74 IMPAIRED PROPERTY. Notwithstanding anything herein to the contrary,
if any  representation or covenant herein,  or in any other Loan Document,  with
respect to any Property has been breached and, in Lender's  reasonable  opinion,
such breach impairs the value of such Property (any such Property being referred
to  herein as an  "IMPAIRED  PROPERTY")  by at least  five  percent  (5%) of its
Property Basis or $250,000,  whichever is less, then (unless  Borrower proves to
Lender's reasonable  satisfaction that such breach was appropriately  considered
in the determination of the initial Property Basis of the Impaired Property,  or
Borrower  establishes a cash Reserve which is sufficient in Lender's  reasonable
judgment to cure such breach and is deposited into a segregated  account pledged
to Lender such that Lender shall have a first priority  perfected lien upon such
Reserve,  in either which case,  no default  shall be deemed to exist)  Borrower
shall either (1) cure such breach to Lender's reasonable satisfaction, or (2) at
Borrower's  option (a) pay to Lender the  Adjusted  Loan Basis for the  Impaired
Property and the other sums  payable to Lender under  Section 2.4 or Section 2.5
(as  applicable)  in  connection  with a release of such  Property from the Loan
Documents  or the Nomura Loan  Documents,  as  applicable  (at which time Lender
shall release such Property,  if a Borrower Property,  from the Lien of the Loan
Documents),  or (b) pay to  Lender  such sum as  will,  in  Lender's  reasonable
opinion,  reduce the Adjusted Loan Basis of such Impaired  Property to an amount
equal to not more than eighty  percent  (80%) of the fair  market  value of such
Property (provided that if the Impaired Property is a Nomura Property,  then the
Adjusted  Loan Basis shall be reduced to an amount  equal to (i) 80% of the fair
market value of such Property minus (ii) the Nomura Loan balance), as determined
by Lender in its  reasonable  discretion;  provided,  however,  that the  option
described in clause (b) shall not be available if such breach  impairs the value
of the Impaired Property by at least  twenty-five  percent (25%) of its Property
Basis. At Borrower's option, and without prepayment premium or penalty, Borrower
can pay the amount  described in clauses (a) or (b) either in a lump sum payment
or through  payment to Lender of one hundred  percent  (100%) of Operating  Cash
Flow,  after  payment of (1) debt service on the Loan and on the Nomura Loan and
(2) the Asset  Management  Fee (except to the extent  deducted  as an  Operating
Expense in  determining  Operating  Cash Flow),  until such sum has been paid in
full. In the event  Borrower has elected to make such  payments  from  Operating
Cash  Flow and such  Operating  Cash  Flow is not  sufficient  to  complete  the
payments  required  by said  clauses  (a) or (b)  within 180 days after the date
Lender asserted the respective  breach in question,  then upon the expiration of
said 180 day period, Borrower shall be required to pay an amount which, together
with all such prior payments  received by Lender from Operating Cash Flow, shall
be  sufficient  to make such  payment as  described in clauses (a) or (b) above.
Lender's remedies as set forth in this Section shall be exercisable by Lender at
any time and from time to time during the term of the Loan.

SECTION  1.75  CURING.  Lender  shall  have the  right,  but  shall not have the
obligation,  to cure any "Event of  Default"  under the Nomura  Loan  Documents.
Borrower agrees to reimburse Lender on demand for any and all costs and expenses
incurred by Lender in connection  with curing such an Event of Default under the
Nomura Loan Documents.

SECTION 1.76 PROPERTY-SPECIFIC COVENANTS. Borrower shall perform, or shall cause
the Gateway  Tower Owner or the Nomura  Borrower to perform,  the  covenants (if
any) set  forth in  Schedule  8.19  hereto  applicable  to one or more  specific
Properties.

SECTION 1.77  COMPLIANCE  WITH NOMURA LOAN  DOCUMENTS.  Borrower shall cause the
Nomura  Borrower  to pay and perform  when due all  obligations,  covenants  and
agreements  of Nomura  Borrower  under the Nomura Loan  Documents,  and Borrower
shall not permit the Nomura Borrower to obtain or otherwise agree to any release
or forbearance of any of the Nomura Borrower's obligations under the Nomura Loan
Documents  without  Lender's  prior written  consent.  If at any time the Nomura
Properties  (or any of them)  cease to be subject to the Lien of the Nomura Loan
Documents or the Lien of the loan  documents  evidencing or securing a refinance
of the Nomura  Properties  permitted  under  Section  9.11 (but such  Properties
continue  to be owned by the Nomura  Borrower),  then  Borrower  shall cause the
Nomura Borrower to lease, manage and otherwise operate such Nomura Properties in
accordance with the requirements  contained in this Agreement and the other Loan
Documents,  and shall cause the Nomura Borrower to execute and deliver to Lender
such deeds of trust and other  security  documents,  and to obtain for  Lender's
benefit such title insurance,  as Lender reasonably  requires in order to obtain
valid,  insured,  first  position Liens on such Nomura  Properties  insuring the
Obligations.

SECTION 1.78 SHATTUCK  OFFICE  CENTER  PROPERTY.  If the Shattuck  Office Center
Holdback is not advanced in  accordance  with  paragraph 3 in Part D of Schedule
2.1, and such Loan funds are canceled in accordance  with such  paragraph,  then
within  seventy-five  (75) days after the Closing Date Borrower shall deliver to
Lender evidence reasonably  satisfactory to Lender that Borrower has transferred
the  Shattuck  Office  Center  Property to another  Person,  which Person may be
related to Borrower so long as Borrower is not directly or indirectly  liable on
a recourse basis for any such Person's  indebtedness or obligations to any other
Person.

                                    ARTICLE 9

                               NEGATIVE COVENANTS

Borrower covenants and agrees that, without Lender's prior written consent, from
and after the Closing Date:

SECTION 1.79 MERGERS, ETC. Neither Borrower,  WWPII, Wells Avenue Holdings, WASH
Manager,  Nomura  Borrower  nor  the  Gateway  Tower  Owner  shall  directly  or
indirectly,  by operation of law or  otherwise,  merge with,  consolidate  with,
acquire all or substantially all of the assets or capital stock of, or otherwise
combine with, any Person.

SECTION 1.80 INVESTMENTS;  LOANS AND ADVANCES.  Except as otherwise permitted by
Sections 9.3 or 9.5 hereof, neither Borrower, WWPII, Wells Avenue Holdings, WASH
Manager,  Nomura  Borrower nor the Gateway Tower Owner shall make any investment
in, or make or accrue  loans or  advances  of money to, any Person  through  the
direct or  indirect  holding  of  securities  or  otherwise,  except  (1) direct
obligations of the United States, or obligations  unconditionally  guaranteed by
the United States, (2) commercial paper rated in the highest grade by Standard &
Poor's or Moody's Investors Service, Inc., and (3) time deposits with, including
certificates of deposit issued by, bankers acceptances issued by, and repurchase
agreements  with respect to  investments  described in clauses (1) and (2) with,
any office  located in the United  States of any bank,  trust company or savings
association  which is organized under the Laws of the United States or any state
thereof and has total assets aggregating at least $500,000,000, provided in each
case that such  investment  matures within one year from the date of acquisition
thereof.

SECTION 1.81      INDEBTEDNESS.

(1)  Borrower  shall  not,  and shall not  permit the  Gateway  Tower  Owner to,
     create,  incur,  assume or permit to exist any  Indebtedness,  except,  (a)
     Indebtedness  secured by Liens permitted under Section 9.7 hereof,  (b) the
     Loan,  (c)  Indebtedness  specifically  approved in writing by Lender,  (d)
     Guaranteed  Indebtedness  incurred  solely by endorsement of instruments or
     items of payment for  deposit to the general  account of Borrower or of the
     Gateway  Tower Owner  except for surety  bonds and  performance  guarantees
     entered  into in the ordinary  course of  Borrower's  or the Gateway  Tower
     Owner's  business,  and (e)  Indebtedness  incurred in connection  with the
     indemnifications given to the Title Company in connection with the issuance
     of the Title  Policies  and  endorsements  required  pursuant  hereto which
     Indebtedness  shall be subordinate in all respects to the  Obligations  (it
     being  specifically   agreed,   however,   that  payments  made  under  the
     indemnifications  prior to an Event of  Default  for the  purpose of paying
     delinquent real estate taxes shall not be a default hereunder).

(2)  Borrower shall not, and shall not permit the Gateway Tower Owner to, engage
     in  any  sale-leaseback  or  similar  transaction   involving  any  of  the
     Collateral.

(3)  Borrower shall not permit or give its consent or approval to the incurrence
     or assumption of any Indebtedness by Wells Avenue Holdings or WASH Manager.
     In addition,  WWPII shall not incur or assume any  Indebtedness  other than
     any  Indebtedness  that may arise under the existing  agreements  listed on
     Schedule 6.26 hereto.

SECTION 1.82      STRUCTURE; TRANSFERS.

(1)  Borrower shall not amend the Operating Agreement,  and shall not permit the
     Gateway Tower Owner, Wells Avenue Holdings, WASH Manager or Nomura Borrower
     to amend their respective operating agreements,  in any way that would have
     a Material Adverse Effect.

(2)  No member of Borrower,  the Gateway Tower Owner,  WWG, WWPII,  Wells Avenue
     Holdings,  WASH Manager or Nomura  Borrower shall assign,  transfer,  sell,
     convey, encumber, pledge or hypothecate, whether directly or indirectly, by
     operation  of  law or  otherwise  (collectively,  "TRANSFERS"),  any of the
     membership  interests in Borrower,  the Gateway  Tower Owner,  WWG,  WWPII,
     Wells Avenue Holdings, WASH Manager or Nomura Borrower or permit any change
     in its ownership. Notwithstanding the foregoing (and without limiting other
     Transfers not prohibited by the foregoing),  the following  Transfers shall
     be  permitted  so long as one or more of the  Whitehall  Parties  or (after
     January 1, 2004 only) Wellsford, individually or collectively, at all times
     during  the  Term  retain  ultimate  decision  making  authority  over  the
     management and operations of Borrower:  (a) Transfers of interests  between
     WHWEL,  WXI/WWG and W/WGH and transfers of interests in WHWEL,  WXI/WWG and
     W/WGH between Whitehall Parties,  provided that in each instance no cash is
     distributed  by WWG or any  subsidiary  thereof  to or for the  benefit  or
     account of the transferor in connection  with such transfer,  (b) Transfers
     of  interests  in WCPT not held by  Wellsford as of the Closing Date (which
     interests do not, and shall not,  exceed 2% of the interests in WCPT),  (c)
     any  conversion or Transfer (as defined in the WWG Operating  Agreement) of
     any interest  held by any Saracen  Member (as defined in the WWG  Operating
     Agreement),  (d) from and after January 1, 2004, the  acquisition by either
     the  Whitehall  Parties  or  Wellsford  of  all of  the  other's  ownership
     interests in WWG pursuant to the "buy-sell" provisions in Section 8.2(c) of
     the WWG  Operating  Agreement,  and (e)  Transfers  (as  defined in the WWG
     Operating  Agreement)  by the  Whitehall  Parties or Wellsford of up to ten
     percent (10%) of their respective interests in WWG for the benefit of their
     respective  employees,  subject  to  and  in  strict  accordance  with  the
     provisions added to Section 8.1(a) of the WWG Operating  Agreement pursuant
     to Section  2.24 of the First  Amendment  thereto  dated  December 21, 2000
     (with no further  revision or  amendment  to such  section).  If either the
     Whitehall  Parties or Wellsford  sells or otherwise  transfers to the other
     100% of their ownership  interests in WWG as permitted in clause (d) of the
     preceding  sentence,  (i) such  selling/transferring  Persons shall have no
     liability  under the Joinder  with respect to events  occurring  after such
     Persons  cease to have any interest in WWG, and (ii) unless the  obligation
     to maintain the Indemnitors'  Net Worth  requirement has been terminated in
     accordance  with Section 2.10, it shall be a condition to any such transfer
     between the Whitehall Parties and Wellsford that the transferee can satisfy
     the Indemnitors' Net Worth requirement under the Indemnification Agreement,
     without regard to the Net Worth of the transferor. Notwithstanding anything
     contained  in  this  Agreement  to  the  contrary,  the  occurrence  of any
     violation of this Section  9.4(2),  shall  constitute an immediate Event of
     Default under this  Agreement  which shall not be subject to any notice and
     cure  provisions set forth in Section 10.1 hereof,  and which shall entitle
     Lender to immediately commence exercising its remedies hereunder.

(3)  Borrower  shall not, and shall not permit the Gateway  Tower Owner to, take
     any  action  or  forbear  from  taking  any  action   (including,   without
     limitation,  the  granting of  consents to actions  taken or proposed to be
     taken by others) that would cause Borrower or the Gateway Tower Owner to be
     taxable as a corporation for federal income tax purposes.

SECTION 1.83 MAINTENANCE OF BUSINESS.  Borrower shall not engage in any business
other than the  business of owning and  operating  the Borrower  Properties  and
owning 100% of the  membership  interests  in the Gateway  Tower Owner and Wells
Avenue Holdings.  Borrower shall not permit the Gateway Tower Owner to engage in
any business  other than the business of owning and  operating the Gateway Tower
Property.  WWPII  shall not engage in any  business  other than the  business of
owning  100% of the  membership  interests  in  Borrower  and owning 100% of the
membership  interests in Wellsford One Mall,  L.L.C.,  which  indirectly owns an
office property located at 10025 Governor Warfield Parkway, Columbia, Maryland.

SECTION 1.84      AFFILIATE TRANSACTIONS.

(1)  Borrower  shall not, and shall not permit the Gateway Tower Owner to, enter
     into or be a party to any  transaction  with  any  Affiliate  of  Borrower,
     except for (a) transactions  contemplated by this Agreement with respect to
     the refinancing of a Property, and (b) any other arrangement, provided that
     the terms are (i) commercially reasonable and competitive with amounts that
     would be paid to or received from third parties on an "arm's-length"  basis
     and (ii)  reduced  to a  writing  covering  all  material  aspects  of such
     arrangement.  Lender  acknowledges  that,  pursuant  to the  WWG  Operating
     Agreement,  the Asset  Manager  may  receive  additional  compensation  (in
     addition to the Asset  Management  Fee) for performing  certain  additional
     services  for  Borrower  and the Gateway  Tower  Owner with  respect to the
     Properties,  as described in Section 9.2(b) to the WWG Operating Agreement.
     Nothing contained in this Agreement shall prohibit Borrower and the Gateway
     Tower Owner from compensating the Asset Manager for performing  services in
     addition to the asset  management  services for which the Asset  Manager is
     compensated  by the  Asset  Management  Fee,  so long as in each  case  the
     arrangement  complies  with the  requirements  of  clause  (b) of the first
     sentence of this Section 9.6(1).

(2)  Borrower  shall not, and shall not permit the Gateway Tower Owner to, enter
     into any agreement or  transaction  to pay to any Person any  management or
     similar fee based on or related to  Borrower's or the Gateway Tower Owner's
     operating  performance  or income or any  percentage  thereof,  nor pay any
     management  or similar fee to an  Affiliate,  provided  that the  foregoing
     shall not prohibit  Borrower from making  distributions to WWPII which will
     ultimately be used to compensate  the Asset Manager under the WWG Operating
     Agreement.

SECTION 1.85 LIENS.  Borrower shall not create or permit, and Borrower shall not
allow the Gateway Tower Owner, Wells Avenue Holdings, WASH Manager or the Nomura
Borrower  to create or permit,  any Lien  (unless  Borrower  proves to  Lender's
reasonable  satisfaction that any such Lien was appropriately  considered in the
determination  of the initial  Property  Basis of such  Property)  on any of its
properties or assets  (including the Shattuck Office Center Property) except, as
to Borrower, the Gateway Tower Owner and Nomura Borrower only:

(1)  presently existing or hereinafter  created Liens in favor of Lender (or, as
     to the Nomura Borrower, the Nomura Lender);

(2)  Permitted  Encumbrances  (provided  that Borrower also may permit a Lien on
     each Property and the Shattuck  Office Center  Property for current but not
     delinquent  property taxes,  assessments or other  governmental  charges or
     levies  against such Property or the Shattuck  Office Center  Property,  as
     applicable);

(3)  Liens securing Indebtedness specifically approved by Lender in writing;

(4)  non-monetary  Liens which individually or in the aggregate would not have a
     Material Adverse Effect; and

(5)  monetary  Liens which  individually  or in the  aggregate  would not have a
     Material Adverse Effect and for which Borrower (or the Nomura Borrower) has
     established a reserve with Lender (or the Nomura  Lender,  as to the Nomura
     Borrower)  necessary  for  the  removal  of  such  Lien,  and  Borrower  is
     diligently  pursuing cure and/or  contesting  the Lien in  accordance  with
     Section 8.2(2) hereof (or, as to the Nomura  Borrower,  in accordance  with
     the Nomura Loan Documents).

SECTION  1.86  EVENTS OF  DEFAULT.  Borrower  shall not take or omit to take any
action,  and shall not permit the Gateway Tower Owner or the Nomura  Borrower to
take or omit to take any action,  which act or omission  would  constitute (1) a
Potential Default or an Event of Default pursuant to, or noncompliance  with any
of, the terms of any of the Loan  Documents or the Ancillary  Agreements,  (2) a
"Default" or an "Event of Default" pursuant to the Nomura Loan Documents, or (3)
a material  default or an event of default  (after notice and  applicable  grace
periods  set  forth in such  other  contract  or  instrument)  pursuant  to,  or
noncompliance  with,  any other contract or instrument to which it is a party or
by which it or any of its property is bound,  or any  document  creating a Lien,
unless  such  default,  event of  default  or  non-compliance  would  not have a
Material  Adverse Effect;  provided,  however,  that for purposes of this clause
(3), no Material  Adverse Effect shall be deemed to have occurred as a result of
a material  adverse  effect on any Property  individually  unless such  material
adverse effect shall also result in a Material Adverse Effect on Borrower or the
Properties as a whole.

SECTION  1.87  GROUND  LEASES.  Except for the  Challenger  Road  Ground  Lease,
Borrower will not directly or indirectly become or remain liable as lessee or as
guarantor or other surety with respect to any ground leases.

SECTION 1.88 MATERIAL  AGREEMENTS.  Borrower shall not enter into, and shall not
permit  the  Gateway  Tower  Owner or the Nomura  Borrower  to enter  into,  any
Material Agreements.  Notwithstanding the foregoing,  Lender's consent shall not
be required for  Borrower or the Gateway  Tower Owner to enter into any contract
for work to be  performed  or services to be  rendered  in  connection  with (1)
Tenant  Improvements  for Leases which are entered into in accordance  with this
Agreement and (2) Capital Expenditures approved by Lender.

SECTION 1.89 LIMITATION ON SECURITIES  ISSUANCES.  Borrower shall not permit the
Gateway Tower Owner, Wells Avenue Holdings,  WASH Manager or the Nomura Borrower
to issue, any membership  interests or securities other than those issued on the
date hereof; provided, however, that this provision is not intended to limit the
ability of the existing members in these entities to provide  additional capital
contributions to such entities.

SECTION 1.90 APPROVAL  RIGHTS OF BORROWER  WITH RESPECT TO THE NOMURA  BORROWER.
Borrower shall not, without the prior written consent of Lender,  permit or give
its consent or approval to the  cancellation,  surrender or  termination  of any
Lease  within the Nomura  Properties  except as  expressly  permitted  under the
Nomura  Loan  Documents.  In  addition,  Borrower  shall not,  without the prior
written consent of Lender,  permit or give its consent or approval to any of the
following actions:

(1)  Any refinancing of the Nomura Loan, any sale (except as permitted  pursuant
     to Section  2.5  above),  transfer,  assignment,  conveyance,  encumbrance,
     pledge or hypothecation of any of the Nomura  Properties,  or any action in
     connection with or in furtherance of any of the foregoing.

(2)  Any material modification, amendment, consolidation, spread, restatement or
     waiver of any provision of any of the Nomura Loan Documents.

(3)  Replacement  of  WASH  Manager  or the  property  manager  for  the  Nomura
     Properties,  or any amendment,  modification,  termination or waiver of the
     operating  agreement of WASH Manager or the property  management  agreement
     covering the Nomura  Properties,  other than a replacement  or amendment of
     such property  management  agreement effected by the Nomura Lender pursuant
     to the Nomura Loan Agreement.

(4)  The  distribution  of any Nomura  Borrower  property other than cash to the
     members of Nomura Borrower.

(5)  The loaning by Nomura Borrower of any money to any Person.

(6)  The incurrence or assumption on behalf of the Nomura Borrower,  directly or
     indirectly,  of any  Indebtedness  other than (a) the  Nomura  Loan and (b)
     "Permitted Indebtedness" (as defined in the Nomura Loan Agreement).

(7)  Causing or  permitting  the Nomura  Borrower,  WASH Manager or Wells Avenue
     Holdings  to (a)  merge,  convert  or  consolidate  with or into any  other
     business entity,  (b) dissolve,  wind up or liquidate or take any action or
     omit to take any action, as a result of which Nomura Borrower, WASH Manager
     or Wells Avenue  Holdings  would be  dissolved,  wound up or  liquidated in
     whole or in  part,  (c)  engage  in any  business  activity  not  currently
     described in the certificate of formation or operating  agreement of Nomura
     Borrower,  WASH Manager or Wells Avenue Holdings,  (d) amend, modify, waive
     or terminate the certificate of formation or operating  agreement of Nomura
     Borrower, WASH Manager or Wells Avenue Holdings, or (e) take any action not
     in compliance with Section 4.1(dd) of the Nomura Loan Agreement.

                                   ARTICLE 10

                     EVENTS OF DEFAULT; RIGHTS AND REMEDIES

SECTION  1.91  EVENTS  OF  DEFAULT.  The  occurrence  of any  one or more of the
following events  (regardless of the reason therefor) shall constitute an "EVENT
OF DEFAULT" hereunder:

(1)  Borrower  shall fail to make any payment of principal of, or interest on or
     any  other  amount  owing in  respect  of,  the  Loan,  or any of the other
     Obligations  when due and payable or  declared  due and  payable,  and such
     failure  shall have remained  unremedied  for a period of five (5) Business
     Days after such failure, except that with respect to expenses payable under
     this Agreement,  or other  Obligations  owing under any Loan Document other
     than this  Agreement,  such failure  shall have remained  unremedied  for a
     period of five (5) Business Days after Borrower has received notice of such
     failure from Lender.

(2)  Borrower  shall  fail or  neglect to  perform,  keep or  observe  any other
     provision  of this  Agreement  or of any of the other  Loan  Documents,  or
     Borrower  shall  fail or  neglect to  perform,  keep or observe  any of the
     provisions of any other Loan Document and the same shall remain  unremedied
     for a period of thirty  (30) days  after  Borrower  shall  receive  written
     notice of any such failure from Lender; provided,  however, if such failure
     or neglect is of the type which is curable but which cannot be cured within
     such  30-day  period,  such  failure  or  neglect  shall not be an Event of
     Default  if  Borrower,   within  such  30-day  period,  has  commenced  and
     thereafter is diligently  pursuing such cure, in which event Borrower shall
     have such  additional  time as is reasonably  required to effect such cure,
     but in no event in excess of 180 days;  and provided  further that a breach
     of a covenant with respect to one or more  Properties  shall not constitute
     an Event  of  Default  hereunder  if such  breach  gives  rise to  Lender's
     remedies  with  respect to an  Impaired  Property,  so long as  Borrower is
     performing its obligations under the provisions hereof concerning  Impaired
     Properties.

(3)  Any representation or warranty herein, or in any other Loan Document, or in
     any  written  statement  pursuant  thereto  or  hereto,  report,  financial
     statement,  or certificate made or delivered to Lender by Borrower shall be
     untrue or incorrect in any  material  respect,  as of the date when made or
     deemed made  (including  those made or deemed made in connection  with each
     Advance) and such representation or warranty, if made by Borrower after the
     Closing  Date,  shall,  if the  condition  that gave rise to the  breach of
     representation  or warranty  is capable of being  cured,  remain  untrue or
     incorrect for a period ending on the first to occur of (a) thirty (30) days
     after Borrower has received  written notice of the falsity or inaccuracy of
     such  representation or warranty from Lender, or (b) thirty (30) days after
     Borrower  shall  become  aware of such  falsity  or  inaccuracy;  provided,
     however,  that if the  breach of the  representation  or  warranty  is of a
     nature which is curable but which cannot be cured within such 30-day period
     such  failure  shall not be an Event of Default if  Borrower,  within  such
     30-day period, shall have commenced to cure the condition that gave rise to
     the breach of representation or warranty and thereafter  diligently pursues
     such cure, in which event  Borrower shall have such  additional  time as is
     reasonably  required to effect such cure,  but in no event in excess of one
     hundred  eighty  (180)  days;  and  provided  further  that a  breach  of a
     representation  or  warranty  shall  not  constitute  an Event  of  Default
     hereunder if such breach gives rise to Lender's remedies with respect to an
     Impaired Property,  so long as Borrower is performing its obligations under
     the provisions hereof concerning Impaired Properties.

(4)  Any of the assets of Borrower or the Gateway Tower Owner to which in excess
     of $100,000 in aggregate  Adjusted Loan Basis has been  allocated  shall be
     attached,  seized,  levied upon or subjected to a writ or distress warrant,
     or come  within the  possession  of any  receiver,  trustee,  custodian  or
     assignee  for the benefit of  creditors  of  Borrower or the Gateway  Tower
     Owner and shall remain unstayed or undismissed for thirty (30)  consecutive
     days;  or any Person other than  Borrower or the Gateway  Tower Owner shall
     apply for the  appointment  of a receiver,  trustee or custodian for any of
     the assets of  Borrower or the  Gateway  Tower  Owner and such  application
     shall remain unstayed or undismissed for thirty (30)  consecutive  days; or
     Borrower  or the  Gateway  Tower  Owner  shall have  concealed,  removed or
     permitted to be concealed or removed, any part of its property, with intent
     to  hinder,  delay  or  defraud  its  creditors  or any of  them or made or
     suffered  a  transfer  of any  of  its  property  or  the  incurring  of an
     obligation  which  may  be  fraudulent  under  any  bankruptcy,  fraudulent
     conveyance or other similar Law.

(5)  A case or  proceeding  shall have been  commenced  against  Borrower or the
     Gateway  Tower Owner in a court  having  competent  jurisdiction  seeking a
     decree or order in respect of Borrower or the Gateway Tower Owner (a) under
     Title  11 of the  United  States  Code,  as now  constituted  or  hereafter
     amended,  or any other applicable  federal,  state or foreign bankruptcy or
     other  similar Law,  (b)  appointing  a  custodian,  receiver,  liquidator,
     assignee,  trustee or sequestrator (or similar official) of Borrower or the
     Gateway Tower Owner or of any substantial part of Borrower's or the Gateway
     Tower Owner's properties,  or (c) ordering the winding-up or liquidation of
     the  affairs of  Borrower  or the  Gateway  Tower  Owner,  and such case or
     proceeding shall remain undismissed or unstayed for thirty (30) consecutive
     days or such court shall enter a decree or order granting the relief sought
     in such case or proceeding.

(6)  Borrower  or the  Gateway  Tower  Owner  shall (a) file a petition  seeking
     relief under Title 11 of the United  States  Code,  as now  constituted  or
     hereafter  amended,  or any  other  applicable  federal,  state or  foreign
     bankruptcy  or  other  similar  Law,  (b)  consent  to the  institution  of
     proceedings  thereunder  or to the  filing of any such  petition  or to the
     appointment of or taking possession by a custodian,  receiver,  liquidator,
     assignee,  trustee or sequestrator (or similar official) of Borrower or the
     Gateway Tower Owner or of any substantial part of Borrower's or the Gateway
     Tower  Owner's  properties,  (c) admit in writing its  inability to pay its
     debts  generally  as such  debts  become  due,  or (d) take any  action  in
     furtherance of any such action.

(7)  Final  judgment or judgments  (after the  expiration of all times to appeal
     therefrom)  for the payment of money in excess of $250,000 in the aggregate
     shall be rendered  against Borrower or the Gateway Tower Owner and the same
     shall not be (i) fully  covered  (taking  into account the  deductible)  by
     insurance  maintained  by Borrower or the Gateway Tower Owner in accordance
     with the requirements of this Agreement,  or (ii) vacated,  stayed, bonded,
     paid or discharged for a period of thirty (30) days.

(8)  Any provision of any Collateral Document,  after delivery thereof shall for
     any reason (other than being  contrary to applicable  Law or public policy,
     and  other  than by  Lender's  acts)  cease to be valid or  enforceable  in
     accordance  with its terms,  or any  security  interest  created  under any
     Collateral  Document shall cease to be a valid and perfected first priority
     security interest or Lien (subject to Permitted  Encumbrances and except as
     otherwise stated therein and other than being contrary to applicable Law or
     public  policy,  and other than by Lender's  acts) in any of the Collateral
     purported to be covered thereby.

(9)  Asset Manager  defaults under the WWG Operating  Agreement (with respect to
     its obligations thereunder regarding the Properties, or any of them) beyond
     applicable  grace  periods  or  ceases  to act as  asset  manager  for  the
     Properties  under the WWG Operating  Agreement unless in each case Borrower
     has replaced Asset Manager as manager with a manager satisfactory to Lender
     in its reasonable  discretion within thirty (30) days. Lender  acknowledges
     and agrees that, subject to Section 9.6(1)(b),  Archon Group, L.P. would be
     an acceptable  replacement manager, so long as Archon Group, L.P. is not in
     breach or default of its obligations  under any asset management  agreement
     or collateral  assignment  thereof  entered into by Archon  Group,  L.P. in
     connection with other loans by Lender to Affiliates of any of the Whitehall
     Parties.

(10) The  occurrence of any breach or default under the  Challenger  Road Ground
     Lease beyond any applicable grace or cure period,  or the occurrence of any
     other event which would  entitle the landlord to terminate  the  Challenger
     Road Ground Lease.

(11) Any "Event of Default" occurs under the Nomura Loan Documents.

(12) At any time prior to the first to occur of (a) the  release of the  Gateway
     Tower Property from the Lien of the Loan Documents, and Lender's receipt of
     the Release  Payment in connection  therewith,  in accordance  with Section
     2.4,  or (b) the  transfer  of the  Gateway  Tower  Property to Borrower in
     accordance  with  Section  2.10,  the  Indemnitors'  Net Worth is less than
     $100,000,000;  provided,  however, that an Event of Default shall not exist
     under this Section  10.1(12) if, within thirty (30) days after Borrower has
     received  written notice from Lender,  (i) the  Indemnitors'  Net Worth has
     been increased to at least $100,000,000, (ii) the Gateway Tower Property is
     released from the Lien of the Loan  Documents,  and Lender has received the
     Release Payment in connection therewith, in accordance with Section 2.4, or
     (iii) the Gateway Tower  Property is  transferred to Borrower in accordance
     with Section 2.10,  provided that if, within five (5) days after receipt of
     Lender's  default notice,  Lender receives  written notice from Borrower of
     Borrower's  intention to cure the default in  accordance  with clause (iii)
     above,  then such 30-day cure period shall  commence  running from the date
     Borrower has received  both (A) written  notice from Lender  describing  in
     reasonable  detail all items  Lender will  require  Borrower to execute and
     deliver  pursuant  to Section  2.10 and (B) copies of the  documents  which
     Lender will require to be executed pursuant to Sections 2.10(3) and (7).

Notwithstanding  anything to the contrary herein or in the other Loan Documents,
if an Event of Default (which arises from the  occurrence of a breach,  default,
failure of condition or other event for which no cure period is provided herein)
or a Potential Default occurs hereunder or under another Loan Document because a
representation  or warranty or a covenant is breached as it affects a particular
Property (a "DEFAULT PROPERTY"),  such Event of Default or Potential Default may
be cured by paying to  Lender,  as the  Release  Payment or Nomura  Payment  (as
applicable) for such Default  Property,  the Adjusted Loan Basis for the Default
Property  plus (if such  Property is the last  remaining  Nomura  Property to be
released) any additional  amount  payable  pursuant to Section  2.5(1)(d)  above
(together with all other sums payable to Lender in connection  with a release of
such Property pursuant to Section 2.4 or, as to the Nomura Properties, a release
pursuant to Section 2.5) within ten (10) days of written  notice from Lender (as
to any such Event of Default),  or within the applicable cure period provided in
this Section  10.1 (as to any such  Potential  Default),  in which event (if the
Default  Property is a Borrower  Property) Lender shall release all of its Liens
on the Default  Property and all of the  personal  property  Collateral  related
solely  thereto.  Lender  agrees that an Event of Default  arising under Section
10.1(10) shall cause the Challenger Road Property to be a Default Property,  and
that such an Event of Default is curable under this paragraph.

SECTION 1.92      REMEDIES.

(1)  If any Event of Default  (other  than an Event of Default  which is curable
     under the last  paragraph  of Section 10.1 and as to which the ten-day cure
     period has not yet  expired)  shall have  occurred and be  continuing,  (a)
     Lender may, without notice, terminate this facility with respect to funding
     further  Advances,  whereupon no additional  Loan proceeds  shall be funded
     hereunder,   and/or  (b)  Lender  may:  (i)  without  notice,  declare  all
     Obligations to be forthwith due and payable, whereupon all such Obligations
     shall become and be due and payable,  without presentment,  demand, protest
     or  further  notice  of any  kind,  all of which  are  expressly  waived by
     Borrower;  provided,  however,  that  upon  the  occurrence  of an Event of
     Default specified in Sections 10.1(4),  (5) or (6) hereof, such Obligations
     shall  become  due and  payable  without  declaration,  notice or demand by
     Lender;  and (ii)  exercise  all  remedies  available to Lender in the Loan
     Documents, at law, in equity or otherwise.

(2)  Upon the  occurrence of an Event of Default  Lender shall have the right to
     request Borrower to, and Borrower shall,  execute new promissory notes (and
     appropriate  amendments to the other Loan  Documents)  aggregating the then
     outstanding  balance due on the Loan.  Borrower hereby designates Lender as
     its  attorney-in-fact  to execute any such documents on behalf of Borrower,
     such appointment being coupled with interest, and such designation shall be
     irrevocable.

SECTION  1.93  WAIVERS BY  BORROWER  Except as  otherwise  provided  for in this
Agreement  and  applicable  Law,  Borrower  waives (1)  presentment,  demand and
protest and notice of presentment,  dishonor, notice of intent to accelerate and
notice of acceleration, (2) all rights to notice and a hearing prior to Lender's
taking  possession  or control of, or to Lender's  replevy,  attachment  or levy
upon,  the  Collateral  or any bond or  security  which might be required by any
court prior to  allowing  Lender to exercise  any of its  remedies,  and (3) the
benefit of all valuation,  appraisal and exemption Laws.  Borrower  acknowledges
that  it has  been  advised  by  counsel  of its  choice  with  respect  to this
Agreement,  the other Loan  Documents  and the  transactions  evidenced  by this
Agreement and the other Loan Documents.

SECTION 1.94 RIGHT OF SET-OFF. Upon the occurrence and during the continuance of
any Event of Default,  Lender is hereby  authorized at any time and from time to
time, to the fullest  extent  permitted by Law, to set off and apply any and all
deposits (general or special, time or demand,  provisional or final) at any time
held (other than deposits held by Borrower in trust for other  persons,  such as
Security  Deposits,  and other such deposits) and other indebtedness at any time
owing by Lender to or for the credit or the account of Borrower  against any and
all of  the  Obligations  of  Borrower  now or  hereafter  existing  under  this
Agreement  and the Note held by  Lender,  irrespective  of whether or not Lender
shall have made any demand  under this  Agreement  or any such Note and although
such  obligations  may be unmatured.  Lender agrees  promptly to notify Borrower
after any such set-off and application made by such Lender;  provided,  however,
that the  failure to give such  notice  shall not affect  the  validity  of such
set-off and application. The rights of Lender under this Section are in addition
to other rights and remedies  (including  other rights of set-off)  which Lender
may have.

                                   ARTICLE 11

                                  MISCELLANEOUS

SECTION  1.95  NOTICES.  Except as  otherwise  provided  herein,  whenever it is
provided herein that any notice, demand, request, consent, approval, declaration
or  other  communication  shall or may be  given  to or  served  upon any of the
parties by another, or whenever any of the parties desires to give or serve upon
another any  communication  with  respect to this  Agreement,  each such notice,
demand, request, consent, approval,  declaration or other communication shall be
in writing and either shall be delivered in person with receipt acknowledged, by
a nationally recognized overnight delivery service (such as Federal Express), or
by registered or certified mail, return receipt requested,  postage prepaid,  or
telecopied and confirmed by telecopy answerback, addressed as follows:

  (a)      If to Lender, at:

           General Electric Capital Corporation
           c/o GE Capital Realty Group, Inc.
           16479 Dallas Parkway, Suite 600
           Addison, Texas  75001-2512
           Attention:  Asset Manager (Whitehall/Wellsford)
           Telecopy Number:  (972) 447-2667

           with copies to:

           General Electric Capital Corporation
           292 Long Ridge Road
           Stamford, Connecticut  06927
           Attention: Kevin L. Korsh, Esq. (Whitehall/Wellsford)
           Telecopy Number:  (203) 357-6768

  (b)      If to Borrower, at:

           Wellsford/Whitehall Holdings, L.L.C.
           c/o WP Commercial, L.L.C.
           26 Main Street
           Chatham, New Jersey  07928
           Attention:  Mr. Richard Previdi and Steven Jason, Esq.
           Telecopy Number:  (973) 701-1115

           with copies to:

           Whitehall Street Real Estate Limited Partnership XI
           85 Broad Street, 10th Floor
           New York, New York  10004
           Attention:  Chief Financial Officer
           Telecopy Number:  (212) 357-5505

           and to:

           Sullivan & Cromwell
           125 Broad Street
           New York, New York  10004
           Attention:  Anthony Colletta, Esq.
           Telecopy Number:  (212) 558-3588

  (c)      If to the Whitehall Parties, at:

           Whitehall Street Real Estate Limited Partnership XI
           85 Broad Street, 10th Floor
           New York, New York  10004
           Attention:  Chief Financial Officer
           Telecopy Number:  (212) 357-5505

           and to:

           Sullivan & Cromwell
           125 Broad Street
           New York, New York  10004
           Attention:  Anthony Colletta, Esq.
           Telecopy Number:  (212) 558-3588

  (d)      If to Wellsford, at:

           Wellsford Real Properties, Inc.
           535 Madison Avenue, 26th Floor
           New York, New York  10022
           Attention:  President
           Telecopy Number:  (212) 421-7244

  (e)      If to WWG or  WWPII at:

           c/o WP Commercial, L.L.C.
           26 Main Street
           Chatham, New Jersey  07928
           Attention:  Mr. Richard Previdi and Steven Jason, Esq.
           Telecopy Number:  (973) 701-1115

or at such  other  address  as may be  substituted  by  notice  given as  herein
provided.  The giving of any notice required  hereunder may be waived in writing
by the party  entitled to receive such notice.  Every notice,  demand,  request,
consent, approval,  declaration or other communication hereunder shall be deemed
to have been duly  given or  served on the date on which  personally  delivered,
with receipt acknowledged,  telecopied and confirmed by telecopy answerback,  or
the next Business Day if sent by a nationally  recognized  courier  service,  or
three (3) Business  Days after the same shall have been  deposited in the United
States  mail.  Failure  or delay in  delivering  copies of any  notice,  demand,
request,  consent,  approval,  declaration or other communication to the persons
designated  above  to  receive  copies  shall  in no way  adversely  affect  the
effectiveness of such notice, demand, request, consent, approval, declaration or
other communication. Any notice, demand, request, consent, approval, declaration
or  other  communication  received  by  Whitehall  Street  Real  Estate  Limited
Partnership  XI in  accordance  with this  Section  shall be deemed to have been
received by all Whitehall Parties.

SECTION 1.96 AMENDMENTS AND WAIVERS.  No amendment or waiver of any provision of
the Loan Documents shall be effective  unless in writing and signed by the party
against whom enforcement is sought.

SECTION 1.97  LIMITATION ON INTEREST.  It is the intention of the parties hereto
to conform  strictly to  applicable  usury  Laws.  Accordingly,  all  agreements
between  Borrower  and Lender  with  respect  to the Loan are  hereby  expressly
limited so that in no event,  whether by reason of  acceleration  of maturity or
otherwise,  shall the  amount  paid or agreed to be paid to Lender or charged by
Lender for the use,  forbearance  or detention of the money to be lent hereunder
or  otherwise,  exceed the maximum  amount  allowed by Law. If the Loan would be
usurious  under  applicable Law (including the Laws of the State and the Laws of
the United States of America), then, notwithstanding anything to the contrary in
the Loan Documents:  (1) the aggregate of all  consideration  which  constitutes
interest under applicable Law that is contracted for, taken,  reserved,  charged
or received under the Loan  Documents  shall under no  circumstances  exceed the
maximum  amount of interest  allowed by applicable  Law, and any excess shall be
credited  on the Note by the holder  thereof  (or,  if the Note has been paid in
full, refunded to Borrower);  and (2) if maturity is accelerated by reason of an
election by Lender,  or in the event of any prepayment,  then any  consideration
which  constitutes  interest  may never  include  more than the  maximum  amount
allowed by applicable Law. In such case,  excess interest,  if any, provided for
in the Loan Documents or otherwise,  to the extent  permitted by applicable Law,
shall be  amortized,  prorated,  allocated  and spread  from the date of advance
until payment in full so that the actual rate of interest is uniform through the
term hereof. If such  amortization,  proration,  allocation and spreading is not
permitted  under  applicable  Law, then such excess  interest  shall be canceled
automatically  as of the  date  of  such  acceleration  or  prepayment  and,  if
theretofore  paid,  shall be credited on the Note (or, if the Note has been paid
in full,  refunded to Borrower).  The terms and provisions of this Section shall
control and  supersede  every other  provision of the Loan  Documents.  The Loan
Documents are contracts made under and shall be construed in accordance with and
governed  by the Laws of the State,  except  that if at any time the Laws of the
United States of America permit Lender to contract for, take, reserve, charge or
receive  a higher  rate of  interest  than is  allowed  by the Laws of the State
(whether  such  federal  laws  directly  so  provide  or refer to the Law of any
state),  then such  federal  Laws shall to such extent  govern as to the rate of
interest which Lender may contract for, take,  reserve,  charge or receive under
the Loan Documents.

SECTION 1.98 INVALID  PROVISIONS.  If any provision of any Loan Document is held
to  be  illegal,  invalid  or  unenforceable,  such  provision  shall  be  fully
severable;  the  Loan  Documents  shall be  construed  and  enforced  as if such
illegal,  invalid or unenforceable provision had never comprised a part thereof;
the  remaining  provisions  thereof shall remain in full effect and shall not be
affected by the illegal, invalid, or unenforceable provision or by its severance
therefrom; and in lieu of such illegal, invalid or unenforceable provision there
shall be added  automatically  as a part of such Loan  Document a  provision  as
similar in terms to such illegal,  invalid or unenforceable  provision as may be
possible to be legal, valid and enforceable.

SECTION  1.99  REIMBURSEMENT  OF  EXPENSES.  Borrower  shall pay all  reasonable
out-of-pocket  expenses of Lender in connection with  underwriting this Loan and
the preparation of the Loan Documents  (including all environmental  appraisals,
structural appraisals and travel expenses (whether or not such travel expense is
incurred by third parties or in-house staff)) and the closing and administration
of the Loan made pursuant hereto  (including the reasonable fees and expenses of
all of its counsel and advisors  retained in connection  with the Loan Documents
and the transactions  contemplated  thereby and advice in connection  therewith)
and all fees and expenses of Lender. If, at any time or times, regardless of the
existence of an Event of Default  (except with respect to paragraphs (3) and (4)
below,  which  shall be subject to an Event of Default  having  occurred  and be
continuing),  Lender shall employ  counsel or other advisors for advice or other
representation  or shall incur  reasonable  legal or other costs and expenses in
connection with:

(1)  any amendment,  modification  or waiver of, or consent with respect to, any
     of the Loan Documents or advice in connection  with the  administration  of
     the Loan made pursuant hereto or its rights hereunder or thereunder;

(2)  any  litigation,  contest,  dispute,  suit,  proceeding or action,  whether
     instituted by Lender,  Borrower or any other Person, in any way relating to
     the Properties, or any other Collateral, or any portion thereof, any of the
     Loan  Documents  or any other  agreements  to be executed or  delivered  in
     connection  herewith  (including  any lenders'  liability  claim,  contest,
     dispute, suit, proceeding or action);

(3)  any attempt to enforce any rights of Lender  against  Borrower or any other
     Person,  that may be  obligated  to  Lender  by  virtue  of any of the Loan
     Documents;

(4)  any attempt to verify,  protect,  collect,  sell,  liquidate  or  otherwise
     dispose of the Properties, or any other Collateral, or any portion thereof;

then, and in any such event, the attorneys' and other parties' fees arising from
such services,  including those of any appellate proceedings, and all reasonable
expenses,  costs,  charges and other fees incurred by such counsel and others in
any way or respect  arising in connection  with or relating to any of the events
or actions described in this Section shall be payable, on demand, by Borrower to
Lender and shall be additional  Obligations secured under this Agreement and the
other Loan  Documents.  Without  limiting the generality of the foregoing,  such
expenses, costs, charges and fees may include:  reasonable paralegal fees, costs
and expenses;  accountants'  and investment  bankers' fees,  costs and expenses;
court costs and expenses;  photocopying and duplicating expenses; court reporter
fees, costs and expenses;  long distance telephone charges; air express charges;
telegram charges; secretarial overtime charges; and expenses for travel, lodging
and food paid or  incurred  in  connection  with the  performance  of such legal
services.

SECTION 1.100 APPROVALS; THIRD PARTIES; CONDITIONS. All approval rights retained
or  exercised by Lender with respect to leases,  contracts,  plans,  studies and
other matters are solely to facilitate Lender's credit  underwriting,  and shall
not be deemed or  construed  as a  determination  that  Lender has passed on the
adequacy thereof for any other purpose and may not be relied upon by Borrower or
any other Person. This Agreement is for the sole and exclusive use of Lender and
Borrower  and may not be  enforced,  nor relied  upon,  by any Person other than
Lender and Borrower.  All  conditions of the  obligations  of Lender  hereunder,
including the  obligation to make Advances,  are imposed solely and  exclusively
for the benefit of Lender, its successors and assigns, and no other Person shall
have  standing  to require  satisfaction  of such  conditions  or be entitled to
assume  that  Lender  will  refuse to make  Advances  in the  absence  of strict
compliance with any or all of such conditions,  and no other Person shall, under
any circumstances, be deemed to be a beneficiary of such conditions, any and all
of which  may be  freely  waived  in whole or in part by  Lender  at any time in
Lender's sole discretion.

SECTION  1.101  LENDER NOT IN CONTROL;  NO  PARTNERSHIP/MEMBERSHIP.  None of the
covenants or other  provisions  contained in this Agreement  shall,  or shall be
deemed to, give Lender the right or power to exercise  control  over the affairs
or  management  of Borrower,  the power of Lender being limited to the rights to
exercise  the  remedies  referred  to in the Loan  Documents.  The  relationship
between  Borrower and Lender is, and at all times shall  remain,  solely that of
debtor and creditor. No covenant or provision of the Loan Documents is intended,
nor shall it be deemed or construed,  to create a  partnership,  joint  venture,
agency or common interest in profits or income between Lender and Borrower or to
create an equity in any  Property  in  Lender.  Lender  neither  undertakes  nor
assumes  any  responsibility  or duty to  Borrower  or to any other  person with
respect to any Property or the Loan,  except as  expressly  provided in the Loan
Documents;  and notwithstanding  any other provision of the Loan Documents:  (1)
Lender is not, and shall not be construed as, a partner,  joint venturer,  alter
ego, manager,  controlling  person or other business associate or participant of
any kind of Borrower or its stockholders,  members,  or partners and Lender does
not intend to ever assume such  status;  (2) Lender  shall in no event be liable
for any Indebtedness,  expenses or losses incurred or sustained by Borrower; and
(3) Lender shall not be deemed  responsible  for or a  participant  in any acts,
omissions or decisions of Borrower or its  stockholders,  members,  or partners.
Lender and Borrower  disclaim any  intention  to create any  partnership,  joint
venture,  agency or common  interest  in  profits or income  between  Lender and
Borrower,  or to create an equity in any  Property in Lender,  or any sharing of
liabilities, losses, costs or expenses.

SECTION  1.102 TIME OF THE ESSENCE.  Time is of the essence with respect to this
Agreement.

SECTION 1.103  SUCCESSORS AND ASSIGNS.  This Agreement shall be binding upon and
inure to the benefit of Lender and Borrower and the  respective  successors  and
assigns of Lender and  Borrower,  provided  that neither  Borrower nor any other
Borrower Party shall,  without the prior written  consent of Lender,  assign any
rights, duties or obligations  hereunder.  Lender may sell, assign,  transfer or
negotiate to one or more other lenders,  commercial banks,  insurance companies,
other financial  institutions or any other Person  acceptable to Lender all or a
portion  of its  rights  and  obligations  under the Loan  Documents,  provided,
however, that (1) each such sale,  assignment,  transfer or negotiation shall be
of a constant,  and not a varying,  percentage of all of the assigning  Lender's
rights and obligations under the Loan Documents,  (2) any such sale, assignment,
transfer  or  negotiation  shall not  require  Borrower  to file a  registration
statement with the  Securities  and Exchange  Commission or apply to qualify the
Note  under the blue sky laws of any  state,  or  otherwise  participate  in the
selling process in a manner which could give rise to liability of Borrower under
Sections  11 or 12 of the  Securities  Act of 1933 or  other  federal  or  state
securities  Laws,  (3)  acceptance  of such  assignment  by any  assignee  shall
constitute  the  agreement  of such  assignee  to be bound by the  terms of this
Agreement  applicable  to Lender,  (4) GECC shall  have the  exclusive  right to
control all  decisions  by Lender under the Loan  Documents,  and (5) such sale,
assignment or other transfer shall not result in any increased cost to Borrower.
From and  after  the  effective  date of such an  assignment,  (a) the  assignee
thereunder shall, in addition to the rights and obligations hereunder held by it
immediately  prior to such  effective  date,  have the  rights  and  obligations
hereunder that have been assigned to it pursuant to such  assignment and (b) the
assignor  Lender  thereunder  shall,  to the extent that rights and  obligations
hereunder have been assigned by it pursuant to such  assignment,  relinquish its
rights and be released from its  obligations  under this Agreement  (and, in the
case of an assignment and acceptance covering all or the remaining portion of an
assigning  Lender's  rights and obligations  under this  Agreement,  such Lender
shall  cease to be a party  hereto).  Borrower  agrees that it will use its best
efforts to assist and  cooperate,  at Lender's cost and expense,  with Lender in
any  manner   reasonably   requested  by  Lender  to  effect  the  sale  of  any
participation  in, or any  assignment  of, any of the Loan  Documents  or of any
portion thereof or interest therein,  including assistance in the preparation of
appropriate  disclosure  documents or placement  memoranda.  In the event Lender
assigns or otherwise  transfers all or any part of the Note in  accordance  with
the  provisions of this  Section,  Borrower  shall,  upon the request of Lender,
issue a new Note (which shall be  substantially in the same form as the Note) to
effectuate such assignment or transfer, provided that the total principal amount
of all of the Notes does not exceed the outstanding Loan balance plus the amount
of undisbursed Loan funds then available for disbursement, and the total amounts
payable  under the Notes are not greater than the amounts  payable prior to such
assignment or transfer.

SECTION 1.104 RENEWAL,  EXTENSION OR  REARRANGEMENT.  All provisions of the Loan
Documents  shall apply with equal  effect to each and all  promissory  notes and
amendments  thereof  hereinafter  executed which in whole or in part represent a
renewal,  extension,  increase  or  rearrangement  of the  Loan.  For  portfolio
management  purposes,  during the Term  Lender may elect to divide the Loan into
two or more separate loans evidenced by separate promissory notes so long as the
payment and other  obligations  of Borrower  are not  effectively  increased  or
otherwise modified. Borrower agrees to cooperate with Lender and to execute such
documents as Lender reasonably may request to effect such division of the Loan.

SECTION 1.105 WAIVERS. No course of dealing on the part of Lender, its officers,
employees,  consultants  or  agents,  nor any  failure  or delay by Lender  with
respect to exercising  any right,  power or privilege of Lender under any of the
Loan Documents,  shall operate as a waiver thereof, it being understood that any
waivers must be in writing and executed by the party giving such waiver.

SECTION 1.106  CUMULATIVE  RIGHTS.  Rights and remedies of Lender under the Loan
Documents shall be cumulative,  and the exercise or partial exercise of any such
right or remedy shall not preclude the exercise of any other right or remedy.

SECTION  1.107  CONSTRUCTION.  Words used in this  Agreement  and the other Loan
Documents  in the  singular,  where the context so  permits,  shall be deemed to
include the plural and vice versa.  The  definitions of words in the singular in
this Agreement and the other Loan Documents  shall apply to such words when used
in the plural  where the context so permits and vice versa.  Any  reference to a
Schedule hereto, a Loan Document or Ancillary  Agreement shall be deemed to be a
reference  to such  Schedule,  Loan  Document or  Ancillary  Agreement as it may
hereafter  from time to time be  amended,  modified,  supplemented,  updated  or
restated in accordance  with the terms hereof.  Any accounting term used in this
Agreement shall have, unless otherwise specifically provided herein, the meaning
customarily  given  such  term  in  accordance  with  GAAP,  and  all  financial
computations hereunder shall be computed, unless otherwise specifically provided
herein,  in accordance  with GAAP  consistently  applied.  That certain terms or
computations  are explicitly  modified by the phrase "in  accordance  with GAAP"
shall in no way be construed to limit the foregoing.

SECTION 1.108 PHRASES. When used in this Agreement and the other Loan Documents,
the  word  "include(s)"  means  "include(s),   without   limitation,"  the  word
"including" means "including,  but not limited to," the phrase  "satisfactory to
Lender" means "in form and substance  satisfactory  to Lender in all  respects,"
the phrase  "with  Lender's  consent"  or "with  Lender's  approval"  means such
consent or  approval  at  Lender's  discretion,  and the phrase  "acceptable  to
Lender"  means  "acceptable  to Lender at Lender's sole  discretion."  The words
"herein,"  "hereof" and  "hereunder"  and other words of similar import refer to
this Agreement as a whole,  including the Exhibits and Schedules  hereto, as the
same may from time to time be amended,  modified or supplemented  and not to any
particular section, subsection or clause contained in this Agreement.

SECTION 1.109  EXHIBITS AND  SCHEDULES.  The Exhibits and Schedules  attached to
this  Agreement are  incorporated  herein and shall be considered a part of this
Agreement for the purposes stated herein.

SECTION  1.110  TITLES OF  ARTICLES,  SECTIONS  AND  SUBSECTIONS.  All titles or
headings to articles, sections, subsections or other divisions of this Agreement
and the other Loan Documents or the Exhibits hereto and thereto are only for the
convenience  of the  parties  and shall not be  construed  to have any effect or
meaning  with  respect  to  the  other  content  of  such  articles,   sections,
subsections or other divisions,  such other content being  controlling as to the
agreement between the parties hereto.

SECTION 1.111  PUBLICITY.  Lender and Borrower will cooperate with respect to an
agreed-upon  press  release  and any  other  official  public  statements  to be
released  by either  of them with  respect  to the  making of the Loan.  Neither
Lender nor Borrower  shall issue or shall permit any of its  Affiliates to issue
any other press release or other official  public  statement with respect to the
making of the Loan except with the consent of the other,  provided  that nothing
contained  herein  shall  restrict  either  Lender or Borrower or any  Affiliate
thereof from making any public disclosure it reasonably  believes is required by
Law or any oral response to any press inquiry.

SECTION 1.112 SURVIVAL.  Except as otherwise  expressly provided for in the Loan
Documents, no termination or cancellation  (regardless of cause or procedure) of
any financing arrangement under this Agreement shall in any way affect or impair
the  powers,  obligations,  duties,  rights and  liabilities  of Borrower or the
rights of Lender  relating to any  transaction or event  occurring prior to such
termination.  Except as otherwise expressly provided herein or in any other Loan
Document,   all   undertakings,    agreements,    covenants,    warranties   and
representations  contained in the Loan Documents shall survive such  termination
or  cancellation  and shall continue in full force and effect until such time as
all of the  Obligations  have been paid in full in accordance  with the terms of
the  agreements  creating  such  Obligations,  at  which  time  the  same  shall
terminate.  Notwithstanding  anything to the contrary set forth herein or in the
Hazardous  Substances  Indemnity  Agreement,  Lender,  Borrower and the Borrower
Parties (by executing the Joinder attached to this Agreement) specifically agree
that  the  indemnities  set  forth in  Article  4  hereof  and in the  Hazardous
Substances   Indemnity  Agreement  shall  survive  the  full  repayment  of  the
Obligations  only with respect to any claim or demand  pending or threatened for
Environmental Liabilities and Costs that is actually known to Borrower as of the
date all Obligations are satisfied.

SECTION 1.113  GOVERNING LAW. EXCEPT AS OTHERWISE  EXPRESSLY  PROVIDED IN ANY OF
THE LOAN  DOCUMENTS,  IN ALL RESPECTS,  INCLUDING  ALL MATTERS OF  CONSTRUCTION,
VALIDITY AND PERFORMANCE,  THIS AGREEMENT AND THE OBLIGATIONS  ARISING HEREUNDER
SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK  APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE,
WITHOUT REGARD TO THE  PRINCIPLES  THEREOF  REGARDING  CONFLICT OF LAWS, AND ANY
APPLICABLE  LAWS OF THE UNITED STATES OF AMERICA.  LENDER AND BORROWER  AGREE TO
SUBMIT TO PERSONAL  JURISDICTION  AND TO WAIVE ANY  OBJECTION AS TO VENUE IN THE
COUNTY OF NEW YORK,  STATE OF NEW YORK.  NOTHING HEREIN SHALL PRECLUDE LENDER OR
BORROWER  FROM  BRINGING  SUIT  OR  TAKING  OTHER  LEGAL  ACTION  IN  ANY  OTHER
JURISDICTION.

SECTION 1.114 ENTIRE  AGREEMENT.  This  Agreement  and the other Loan  Documents
embody the entire  agreement and  understanding  between Lender and Borrower and
supersede all prior agreements and understandings  between such parties relating
to the subject  matter hereof and thereof.  Accordingly,  the Loan Documents may
not be  contradicted by evidence of prior,  contemporaneous,  or subsequent oral
agreements of the parties.  There are no unwritten oral  agreements  between the
parties with  respect to the Loan  Documents  or the  transactions  contemplated
thereby. Except as otherwise provided in this Agreement or any of the other Loan
Documents by specific reference to the applicable  provisions of this Agreement,
if  any  provision   contained  in  this  Agreement  is  in  conflict  with,  or
inconsistent  with,  any  provision  in any of the  other  Loan  Documents,  the
provision contained in this Agreement shall govern and control.

SECTION  1.115  COUNTERPARTS.   This  Agreement  may  be  executed  in  multiple
counterparts, each of which shall constitute an original, but all of which shall
constitute one document.

SECTION  1.116  WAIVER OF JURY TRIAL.  TO THE MAXIMUM  EXTENT  PERMITTED BY LAW,
BORROWER AND LENDER HEREBY KNOWINGLY,  VOLUNTARILY AND  INTENTIONALLY  WAIVE THE
RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION  BASED ON, ARISING OUT OF,
UNDER OR IN CONNECTION  WITH THIS AGREEMENT OR ANY OTHER LOAN  DOCUMENT,  OR ANY
COURSE OF CONDUCT,  COURSE OF DEALING,  STATEMENT (WHETHER VERBAL OR WRITTEN) OR
ACTION OF ANY PARTY OR ANY  EXERCISE  BY ANY  PARTY OF THEIR  RESPECTIVE  RIGHTS
UNDER THE LOAN  DOCUMENTS  OR IN ANY WAY  RELATING  TO THE LOAN OR ANY  PROPERTY
(INCLUDING  ANY  ACTION TO RESCIND OR CANCEL  THIS  AGREEMENT,  AND ANY CLAIM OR
DEFENSE  ASSERTING THAT THIS AGREEMENT WAS FRAUDULENTLY  INDUCED OR IS OTHERWISE
VOID OR VOIDABLE). THIS WAIVER IS A MATERIAL INDUCEMENT FOR LENDER TO ENTER THIS
AGREEMENT.

SECTION 1.117 AUTHORIZED  SIGNATURE.  Until Lender shall be notified by Borrower
to the  contrary,  the  signature  upon any  document  or  instrument  delivered
pursuant  hereto of any one (1) of the officers of WP Commercial (as the manager
of the sole member of the sole  member of  Borrower)  listed in  Schedule  11.23
hereto  (as the same may be  amended  by  notice  given  hereunder)  shall  bind
Borrower  and be deemed to be the act of  Borrower,  affixed  pursuant to and in
accordance with the Operating  Agreement and the WWG Operating Agreement and the
approval of the member(s) of Borrower and WWG.

SECTION 1.118 POWER OF ATTORNEY. Notwithstanding anything contained herein or in
any other Loan Document to the contrary,  in the exercise of any remedy pursuant
to any of the Loan Documents,  Lender shall act as a prudent lender would act in
similar  circumstances  in creating  liabilities  for,  or settling  liabilities
against Borrower pursuant to any power of attorney granted under any of the Loan
Documents.

                                   ARTICLE 12

                            LIMITATIONS ON LIABILITY

SECTION  1.119  LIMITATION  ON LIABILITY.  Except as otherwise  provided  below,
Lender's  recourse shall be limited to the Collateral and no members of Borrower
or any of their Affiliates or their affiliated companies,  officers,  directors,
shareholders,  members or any other Person,  disclosed or undisclosed,  shall be
personally  liable for the repayment of any of the Obligations,  except that the
Borrower and the Borrower Parties (to the extent provided in, and subject to the
terms of, the Joinder  attached  hereto) (but not The Goldman Sachs Group,  Inc.
and not any direct or  indirect  general or limited  partners  or  shareholders,
members, officers, directors or employees of the general or limited partners in,
or members of, the Borrower Parties which are not themselves  Borrower  Parties)
shall be  personally  liable (1) for the  portion of the  outstanding  principal
balance of the Loan  allocable  to the Nomura  Properties,  as  evidenced by the
Adjusted Loan Basis for such  Properties,  and all accrued and unpaid  interest,
fees and other sums owing under the Loan Documents which are attributable to, or
otherwise  fairly allocable to, such principal  balance,  (2) for the Borrower's
fraud (but only to the extent of actual  damages  suffered  by Lender  caused by
such  fraud),  (3)  whether  prior  to or after  an  Event  of  Default  for the
Borrower's misappropriation (I.E., application in violation of the terms of this
Agreement) of insurance proceeds,  condemnation awards, Operating Cash Flow, Net
Capital Proceeds,  Lease Buy Out Consideration,  Security Deposits and any other
amounts  required  to be held by  Borrower  in  escrow  or  segregated  accounts
pursuant  to the terms  hereof and any other  escrow  deposits,  but only to the
extent of the amounts so misapplied and received by such Borrower Party, (4) for
all  Environmental  Liabilities  and  Costs to the  extent  indemnifiable  under
Article 4 hereof or under the Hazardous Substances Indemnity Agreement,  (5) for
failure to maintain any insurance  coverage required under this Agreement or any
other Loan Document  (including any insurance  coverage required with respect to
the Nomura  Properties),  (6) a breach of (i) the representations and warranties
set forth in  Section  6.18,  or (ii) the  covenants  in  Section  9.7,  as such
covenants  pertain to the Shattuck Office Center Property  (excluding,  however,
any such breach under  Section 9.7  occurring  after the Shattuck  Office Center
Property  becomes a  Property  under  this  Agreement),  and (7) for any and all
matters covered by the Indemnification Agreement. Lender agrees to look first to
the assets of  Borrower  in  connection  with the  satisfaction  of any claim or
liability  arising from Section 8.16 or this Section (except with respect to any
claim  or  liability  arising  under  clause  (7)  above,  as to  which  no such
limitation  shall apply) but Lender shall have the right to proceed  against any
Borrower  Party  with  respect  to the  Nonrecourse  Carve-Outs  for which  such
Borrower  Party is liable (as set forth in the  Joinder)  in the event  Borrower
disputes or denies such liability or otherwise  fails to hold Lender harmless in
accordance with the terms of Section 8.16.

SECTION 1.120 LIMITATION ON LIABILITY OF LENDER'S OFFICERS,  EMPLOYEES, ETC. Any
obligation  or liability  whatsoever of Lender which may arise at any time under
this Agreement or any other Loan Document shall be satisfied,  if at all, out of
the Lender's  assets only. No such  obligation or liability  shall be personally
binding  upon,  nor shall  resort  for the  enforcement  thereof  be had to, the
property of any of Lender's  shareholders,  directors,  officers,  employees  or
agents,  regardless of whether such  obligation or liability is in the nature of
contract, tort or otherwise.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

EXECUTED as of the date first written above.

            "LENDER":

            GENERAL ELECTRIC CAPITAL CORPORATION, a New York corporation

            By:     /s/ Paul St. Arnauld
                    --------------------
                    Paul St. Arnauld, Authorized Signatory

            "BORROWER":

            WELLSFORD/WHITEHALL HOLDINGS, L.L.C., a Delaware limited liability
            company

            By:  Wellsford/Whitehall Properties II, L.L.C., a Delaware limited
                 liability company, its managing member

                 By:   Wellsford/Whitehall Group, L.L.C., a Delaware limited
                       liability company, its sole member

                       By:   WP Commercial, L.L.C., a Delaware limited liability
                             company, its manager

                             By:   /s/ Alan Kava
                                   --------------------
                                   Name:    Alan Kava
                                   Title:   Authorized Signatory

                                     JOINDER

By executing this Joinder (the "JOINDER") and as further  consideration  for the
making  of the Loan by  Lender,  each  Borrower  Party  agrees  that it shall be
personally  liable and responsible,  jointly and severally  (except as otherwise
expressly stated in this Joinder), for the obligations and liabilities for which
Borrower  is  personally  liable  under  Section  12.1  of this  Agreement  (the
"NONRECOURSE  CARVE-OUTS"),  subject  to the  limitations  set  forth  below for
certain  of the  Borrower  Parties.  This  Joinder  is a  guarantee  of full and
complete payment and performance and not of collectibility.

1.   LIMITATIONS.  The  liability  of the Borrower  Parties for the  Nonrecourse
     Carve-Outs shall be subject to the following limitations:

(1)  Each of the Whitehall  Parties and Wellsford shall be jointly and severally
     liable for  Nonrecourse  Carve-Outs  described  in  clauses  (2) and (3) of
     Section  12.1,  but  shall  not be liable  for the  Nonrecourse  Carve-Outs
     described in clauses (1), (4), (5) and (6) of Section 12.1;

(2)  WWG shall be jointly and severally  liable for the  Nonrecourse  Carve-Outs
     described in clauses (2), (3), (4), (5), (6) and (7) of Section 12.1;

(3)  WWPII  shall be jointly  and  severally  liable for all of the  Nonrecourse
     Carve-Outs; and

(4)  Notwithstanding  the  foregoing,  the  liability  of WWG and  WWPII for the
     Nonrecourse Carve-Outs described in clauses (2) through (6) of Section 12.1
     shall be  limited,  in the  aggregate,  to:  (i) until such time all of the
     Obligations  have been  paid in full,  an amount  equal to the  greater  of
     ("MAXIMUM LIABILITY"):  (A) Thirty-Six Million Dollars  ($36,000,000),  and
     (B) fifty percent (50%) of the outstanding  principal  balance of the Loan,
     calculated as of the date Lender delivers written notice to Borrower and/or
     WWG or WWPII of the existence of a claim, and (ii) from and after such time
     as all of the  Obligations  have been paid in full,  Thirty Million Dollars
     ($30,000,000),  and in all cases the Maximum  Liability shall be reduced by
     amounts  theretofore  paid by the Borrower Parties pursuant to this Joinder
     (excluding  amounts paid by WWPII in respect of the  Nonrecourse  Carve-Out
     described in clause (1) of Section 12.1).

Nothing  contained in this Joinder or in Section 12.1 of this  Agreement  (or in
any other provision of this  Agreement)  shall in any way limit the liability of
the Whitehall Parties or Wellsford under the Indemnification Agreement.

2. THIRD PARTY OBLIGATIONS.  Except as expressly provided herein,  each Borrower
Party (each  referred to herein as a "THIRD  PARTY  OBLIGOR")  waives  notice of
default, presentment,  demand for payment, protest, notice of protest, notice of
nonpayment  or  dishonor,  and  all  other  notices  and  demands  of  any  kind
whatsoever;  and each Third Party  Obligor  consents and agrees that Lender may,
from  time  to  time,  without  notice  or  demand  and  without  affecting  the
enforceability of this Joinder: (a) supplement,  modify,  amend, extend,  renew,
accelerate  or  otherwise  change  the  time  for  payment  or the  terms of the
Obligations  or any part  thereof,  including  any  increase  or decrease of the
rate(s) of interest thereon; (b) supplement,  modify,  amend, or waive, or enter
into or give any agreement, approval or consent with respect to, the Obligations
or any part thereof, or any security or guaranties, or any condition,  covenant,
default, remedy, right, representation or term thereof or thereunder; (c) accept
new or  additional  instruments,  documents  or  agreements  in exchange  for or
relative to the Obligations or any part thereof;  (d) accept partial payments on
the Obligations;  (e) receive and hold additional security or guaranties for the
Obligations  or any part  thereof;  (f)  release,  reconvey,  terminate,  waive,
abandon, fail to perfect,  subordinate,  exchange,  substitute,  transfer and/or
enforce any security or guaranties,  and apply any security and direct the order
or manner of sale  thereof  as Lender in its sole and  absolute  discretion  may
determine;  (g) release any Person from any personal  liability  with respect to
the Obligations or any part thereof;  (h) settle,  release on terms satisfactory
to Lender or by operation of applicable Laws, or otherwise  liquidate or enforce
any Obligations, including any of the Nonrecourse Carve-Outs and any security or
guaranty in any manner,  consent to the  transfer of any  security,  and bid and
purchase at any sale; (i) amend, modify, waive, supplement or terminate the Loan
Agreement,  the Note or any of the other Loan Documents;  and (j) consent to the
merger,  change or any other  restructuring  or  termination of the existence of
Borrower or any other Person, and  correspondingly  restructure the Obligations,
and any such merger,  change,  restructuring or termination shall not affect the
enforceability or security hereof.

3. RIGHTS  INDEPENDENT.  Each Third Party Obligor's  obligations with respect to
the  Nonrecourse  Carve-Outs  are  independent  of  those  of any  other  Person
(including the other Third Party  Obligors),  and upon the occurrence and during
the continuance of an Event of Default  (subject to the limitations set forth in
Paragraph  1 of this  Joinder),  Lender may proceed in the  enforcement  of each
Third Party  Obligor's  obligations  independently  of any other right or remedy
that Lender may at any time hold with respect to the  Nonrecourse  Carve-Outs or
any  security  therefor  (except as  expressly  set forth in Paragraph 1 of this
Joinder).  Except as set forth in Section 12.1,  each Third Party Obligor waives
any right to require Lender to: (a) proceed against Borrower or any guarantor or
other Person,  including any other Third Party  Obligor  (regardless  of whether
such other Third Party  Obligor's  liability for the  Nonrecourse  Carve-Outs is
more or less extensive (or the same) as that of such Third Party  Obligor);  (b)
proceed against or exhaust any security for the Nonrecourse Carve-Outs; (c) give
notice of the terms, time and place of any public or private sale of any real or
personal  property  security for the Nonrecourse  Carve-Outs;  or (d) pursue any
other remedy in Lender's power whatsoever.

4. DEFERRAL OF RIGHTS OF SUBROGATION.  Notwithstanding  anything to the contrary
elsewhere  contained  herein or in any other  document  to which any Third Party
Obligor is a party, each Third Party Obligor hereby expressly agrees that, until
payment and  performance  in full of all  Obligations,  such Third Party Obligor
shall not  assert,  with  respect to  Borrower  and its  successors  and assigns
(including  any  surety) and any other  Person,  any and all rights at law or in
equity to subrogation,  to reimbursement,  to exoneration,  to contribution,  to
setoff or to any other rights that could accrue to a surety against a principal,
to a guarantor against a maker or obligor, to an accommodation party against the
party accommodated, or to a holder or transferee against a maker, and which such
Third Party Obligor may have or hereafter  acquire against Borrower or any other
Person  in  connection  with  or as a  result  of  such  Third  Party  Obligor's
execution,  delivery  and/or  performance  of this Joinder or any other document
relating to the  Nonrecourse  Carve-Outs  to which such Third Party Obligor is a
party.  Each Third Party Obligor agrees that,  until payment and  performance in
full of all  Obligations,  it shall not have or assert any such  rights  against
Borrower  or its  successors  and  assigns or any other  Person  (including  any
surety),  either  directly  or as an  attempted  setoff to any action  commenced
against  such Third  Party  Obligor by  Borrower  (as  borrower  or in any other
capacity),  Lender  or  any  other  Person.  Each  Third  Party  Obligor  hereby
acknowledges  and agrees that this waiver is  intended to benefit  Borrower  and
Lender  and shall not limit or  otherwise  affect  such  Third  Party  Obligor's
liability hereunder,  under any other document to which such Third Party Obligor
is a party, or the enforceability hereof or thereof.

5.  CONDITION OF BORROWER.  Each Third Party Obligor  represents and warrants to
Lender that: (a) this Joinder is being  separately  executed by such Third Party
Obligor at Borrower's request;  and (b) such Third Party Obligor has established
adequate  means of obtaining from Borrower on a continuing  basis  financial and
other information pertaining to Borrower's businesses.  Each Third Party Obligor
hereby waives and relinquishes any duty on the part of Lender to disclose to any
matter,  fact or thing  relating to the  business,  operation  or  condition  of
Borrower and its assets now known or hereafter  known by Lender  during the life
of the Loan Agreement. With respect to any Obligations,  Lender need not inquire
into the  power of  Borrower  or the  officers,  partners  or  agents  acting or
purporting to act on its behalf.

6. DEED OF TRUST ON REAL PROPERTY.  Each Third Party Obligor  acknowledges  that
all or a portion of the  Nonrecourse  Carve-Outs  is or may be secured by one or
more  deed(s) of trust and/or  mortgage(s)  covering  certain  interests in real
property.  Each Third  Party  Obligor  authorizes  Lender,  at its sole  option,
without notice or demand and without affecting the liability of such Third Party
Obligor for the Nonrecourse  Carve-Outs,  to foreclose any or all of the deed(s)
of trust and/or  mortgage(s) and the interests in real property  secured thereby
by  nonjudicial  sale,  or to exercise any other right or remedy with respect to
the deed(s) of trust and/or mortgage(s) or the property covered thereby. No such
action by Lender shall release or limit the liability of any Third Party Obligor
for the Nonrecourse Carve-Outs,  even if the effect of that action is to deprive
Third Party  Obligors of the right to  reimbursement  from Borrower for any sums
paid  by  Third  Party  Obligors  to  Lender  with  respect  to the  Nonrecourse
Carve-outs.  Each Third Party Obligor  waives any right to receive notice of any
judicial or nonjudicial  sale or foreclosure of any real property subject to any
deed of trust or mortgage securing the Nonrecourse Carve-Outs and the failure of
any Third Party  Obligor to receive  any such notice  shall not impair or affect
any Third Party Obligor's liability hereunder.

7.  LIMITATION  REGARDING  WAIVERS.  Notwithstanding  anything  to the  contrary
contained in this  Joinder,  Third Party  Obligors do not waive,  and each shall
retain  the right to raise,  defenses  or rights of setoff  that would have been
available to such Third Party  Obligor had it been named as a  "Borrower"  under
the Loan Agreement, other than any defenses available to the Borrower based upon
any applicable  anti-deficiency laws or "one form of action" or "security first"
laws (the  benefits  and  protections  of which are waived by each  Third  Party
Obligor).

8.  WAIVER OF JURY TRIAL.  TO THE  MAXIMUM  EXTENT  PERMITTED  BY LAW,  BORROWER
PARTIES HEREBY  KNOWINGLY,  VOLUNTARILY AND  INTENTIONALLY  WAIVE THE RIGHT TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS JOINDER, THE LOAN AGREEMENT OR ANY OTHER LOAN DOCUMENT,  OR
ANY COURSE OF CONDUCT, COURSE OF DEALING,  STATEMENT (WHETHER VERBAL OR WRITTEN)
OR ACTION OF ANY PARTY OR ANY EXERCISE BY ANY PARTY OF THEIR  RESPECTIVE  RIGHTS
UNDER THE LOAN  DOCUMENTS  OR IN ANY WAY  RELATING  TO THE LOAN OR ANY  PROPERTY
(INCLUDING  ANY  ACTION TO  RESCIND  OR CANCEL  THIS  JOINDER  AND/OR  THIS LOAN
AGREEMENT  AND ANY CLAIM OR  DEFENSE  ASSERTING  THAT THIS  JOINDER  OR THE LOAN
AGREEMENT  WAS  FRAUDULENTLY  INDUCED OR IS OTHERWISE  VOID OR  VOIDABLE).  THIS
WAIVER IS A MATERIAL INDUCEMENT FOR LENDER TO ENTER THIS LOAN AGREEMENT.

    WHITEHALL STREET REAL ESTATE LIMITED PARTNERSHIP XI, a Delaware limited
    partnership

    By:     WH Advisors, L.L.C. XI, a Delaware limited liability company,
            its General Partner

                        By:      /s/ Alan Kava
                                 -------------
                        Name:   Alan Kava
                        Title:  Authorized Signatory

                              [Printed Name and Title]

    WHITEHALL REAL ESTATE LIMITED PARTNERSHIP VII, a Delaware limited
    partnership

    By:     WH Advisors, L.L.C. VII, a Delaware limited liability company,
            its General Partner

                        By:      /s/ Alan Kava
                                 -------------
                        Name:   Alan Kava
                        Title:  Authorized Signatory

                              [Printed Name and Title]

WHITEHALL REAL ESTATE LIMITED PARTNERSHIP V, a Delaware limited partnership

By:  WH Advisors,  L.L.C. V, a Delaware limited liability  company,  its General
     Partner

                        By:      /s/ Alan Kava
                                 -------------
                        Name:   Alan Kava
                        Title:  Authorized Signatory

                              [Printed Name and Title]

WELLSFORD REAL PROPERTIES, INC., a Maryland corporation

                        By:      /s/ Edward Lowenthal
                                 --------------------
                        Name:   Edward Lowenthal
                        Title:  President

                              [Printed Name and Title]

WELLSFORD/WHITEHALL GROUP, L.L.C., a Delaware limited liability company

By:   WP Commercial, L.L.C., a Delaware limited liability company, its manager

                        By:      /s/ Alan Kava
                                 -------------
                        Name:   Alan Kava
                        Title:  Authorized Signatory

                              [Printed Name and Title]

WELLSFORD/WHITEHALL PROPERTIES II, L.L.C., a Delaware limited liability company

By:  Wellsford/Whitehall  Group,  L.L.C., a Delaware limited liability  company,
     its sole member

By:  WP Commercial, L.L.C., a Delaware limited liability company, its manager

                         By:      /s/ Alan Kava
                                 -------------
                        Name:   Alan Kava
                        Title:  Authorized Signatory

                              [Printed Name and Title]

                                 SCHEDULE 1.1(A)

                              PROPERTY INFORMATION
<TABLE>
<CAPTION>

PROPERTY                           ADDRESS                         CITY      STATE    UNITS/NRSF/ASSETS   PROPERTY TYPE

<S>                             <C>                            <C>              <C>          <C>            <C>
Cutler Lake Corp Center         177 Kendrick Street            Needham          MA           211,556        office
Shattuck Office Center**        138 River Road                 Andover          MA            62,701        office
60 Turner Street                60 Turner Street               Waltham          MA            15,876        office
24 Federal/3 P.O. Square        24 Federal St. and 79 Milk St. Boston           MA            74,353        office
                                                                                              65,007
                                                                                             =======
Gateway Tower                   401 N. Washington Street       Rockville        MD           248,463        office
300 Atrium                      300 Atrium Drive               Franklin         NJ           147,474        office
400 Atrium                      400 Atrium Drive               Franklin         NJ           354,669        office
500 Atrium                      500 Atrium Drive               Franklin         NJ           169,752        office
700 Atrium                      700 Atrium Drive               Franklin         NJ           181,069        office
Mountain Heights I & II         420-430 Mountain Avenue        Berkeley         NJ           182,588        office
                                                               Heights
                                                                                             123,082
                                                                                             =======
105 Challenger Road             105 Challenger Road            Ridgefield       NJ           153,550        office
                                                               Park
Greenbrook Corporate Center     100 Passaic Avenue             Fairfield        NJ           201,350        office
Campus Drive                    379-399 Campus Drive           Franklin         NJ           199,110        office
180/188 Mount Airy Road         180/188 Mount Airy Road        Basking Ridge    NJ           103,668        office
Chatham Executive Center        26 Main Street                 Chatham          NJ            63,346        office
Garden State Convention Center  50 Atrium Drive                Franklin         NJ            82,300        office
1800 Valley Road                1800 Valley Road               Wayne            NJ            56,375        office
Wells Research Center*          75, 85, 95 Wells Avenue        Newton           MA           241,761        office
7/57 Wells Avenue*              7/57 Wells Avenue              Newton           MA            89,215        office
Dedham Place*                   9 - 11 Allied Drive            Dedham           MA           160,004        office
333 Elm Street*                 333 Elm Street                 Dedham           MA            47,662        office
128 Tech Center*                128 Technology Drive           Waltham          MA           217,501        office
201 University Avenue*          201 University Avenue          Westwood         MA            82,000        office

<FN>

*    Nomura Property
**   Not  included  among the  Properties  unless  the  Shattuck  Office  Center
     Holdback is Advanced.
</FN>
</TABLE>

                                 SCHEDULE 1.1(B)

                                BASIS ALLOCATIONS

        PROPERTY                        PROPERTY BASIS             LOAN BASIS

Cutler Lake Corp. Center                $ 26,997,000              $ 22,111,000
Shattuck Office Center                   $ 8,655,000               $ 7,088,000
60 Turner Street                          $  741,000                $  607,000
24 Federal/3 P.O. Square                $ 35,975,000              $ 29,465,000
Gateway Tower                           $ 36,859,000              $ 30,189,000
300 Atrium                              $ 16,514,000              $ 13,526,000
400 Atrium                              $ 30,687,000              $ 25,133,000
500 Atrium                              $ 18,245,000              $ 14,943,000
700 Atrium                              $ 19,498,000              $ 15,970,000
Mountain Heights I & II                 $ 50,469,000              $ 41,335,000
105 Challenger Road                     $ 21,492,000              $ 17,602,000
Greenbrook Corporate Center             $ 24,946,000              $ 20,431,000
Campus Drive                            $ 16,092,000              $ 13,179,000
180/188 Mount Airy Road                 $ 14,824,000              $ 12,141,000
Chatham Executive Center                $ 11,003,000               $ 9,012,000
Garden State Convention Center           $ 5,039,000               $ 4,127,000
1800 Valley Road                         $ 6,278,000               $ 5,141,000
Wells Research Center                   $ 41,875,000                 $     -0-
7/57 Wells Avenue                       $ 13,917,000                 $     -0-
Dedham Place                            $ 14,504,000                 $     -0-
333 Elm Street                           $ 6,001,000                 $     -0-
128 Tech Center                         $ 33,249,000                 $     -0-
201 University Avenue                    $ 9,339,000                 $     -0-
             TOTAL:                    $ 463,199,000             $ 282,000,000
                                       =============             =============

                                  SCHEDULE 2.1

                               ADVANCE CONDITIONS

         Part A -   Initial Advance
         Part B -   General Conditions to Subsequent Advances
         Part C -   Working Capital Advances
         Part D -   Holdback Advances

                            PART A - INITIAL ADVANCE

Lender  shall  not be  obligated  to make any  portion  of the  Initial  Advance
available to Borrower  unless and until Borrower shall have delivered to Lender,
in form and substance  satisfactory  to Lender and, as to any documents  (unless
otherwise indicated), dated the Closing Date:

9.  This  Agreement,  the  Note  and the  Collateral  Documents,  the  Hazardous
Substances Indemnity Agreement, the Indemnification Agreement, the Gateway Tower
Guaranty and all other Ancillary  Agreements  reasonably requested by Lender, in
each case executed by Borrower and, as applicable,  each Borrower Party (and any
other party thereto other than Lender).

10. The payment to Lender of a commitment fee of $3,238,160 (less any portion of
Borrower's $300,000 good faith deposit applied thereto). The parties acknowledge
that the commitment fee payable as a condition to the Initial  Advance  includes
only one-half of the  commitment  fee payable in connection  with the Loan funds
allocated  to the Nomura  Holdback  and the Loan funds  allocated to the Working
Capital Budgets for the Nomura Properties,  and only one-third of the commitment
fee payable in connection  with the Loan funds  allocated to the Shattuck Office
Center  Holdback and the Loan funds  allocated to the Working Capital Budget for
the Shattuck Office Center Property. The remaining portion of the commitment fee
allocated to such Loan funds for the Nomura  Properties  (0.5%) shall be payable
in accordance with paragraph 1 of Part D of this Schedule 2.1, and the remaining
portion of the  commitment  fee  allocated  to such Loan funds for the  Shattuck
Office Center Property (1.0%) shall be payable in accordance with paragraph 3 of
Part D of this Schedule 2.1.

11. A Borrowing Date Certificate, duly executed and delivered by Borrower.

12. Opinions of Sullivan & Cromwell,  counsel to Borrower in respect of the Loan
Documents governed by New York law and formation and authority matters regarding
Borrower,  the Gateway  Tower Owner and the  Borrower  Parties;  and opinions of
local  counsel  of Lender  in each  jurisdiction  in which one or more  Borrower
Properties  are located;  in each case  addressing  such matters  regarding  the
Borrower,  the Gateway Tower Owner,  each  Borrower  Party,  the Loan,  the Loan
Documents and/or the Borrower Properties as Lender may reasonably specify.

13. A copy of the Operating Agreement, and all amendments thereto,  certified as
true and correct as of the Closing Date by the Secretary or Assistant  Secretary
of Borrower,  and a copy of the Gateway Tower Owner's operating  agreement,  and
all amendments thereto,  certified as true and correct as of the Closing Date by
the Secretary or Assistant Secretary of the Gateway Tower Owner.

14. A copy of Borrower's certificate of formation from Delaware, certified as of
a  recent  date by the  appropriate  Governmental  Authority,  and a copy of the
Gateway Tower Owner's certificate of formation from Delaware,  certified as of a
recent date by the appropriate Governmental Authority.

15.  Resolutions  of the  management  committee  of the sole  member of the sole
member of Borrower, certified by an authorized signatory of such sole member (or
the manager  thereof)  of such member  within a recent date prior to the Closing
Date, to be duly adopted and in full force and effect on such date,  authorizing
(a) the consummation of each of the transactions  contemplated by this Agreement
and the Loan  Documents and Ancillary  Agreements to which  Borrower  and/or the
Gateway  Tower  Owner is a party  and (b)  specific  authorized  signatories  to
execute and deliver this  Agreement,  the other Loan Documents and the Ancillary
Agreements to which Borrower and/or the Gateway Tower Owner is a party.

16.  Certificates of an authorized  signatory of the sole member (or the manager
thereof) of the sole member of Borrower, dated within a recent date prior to the
Closing Date, as to the incumbency of the authorized  signatories  authorized by
the resolutions delivered to Lender (pursuant to paragraph (7) above) to execute
and deliver (on behalf of Borrower and the Gateway  Tower Owner (as  applicable)
this Agreement, the other Loan Documents and other Ancillary Agreements, and any
other certificate or other document to be delivered  pursuant hereto or thereto,
together with a certification of the incumbency of such authorized signatory.

17. Governmental  certificates,  dated the most recent practicable date prior to
the Closing Date, with telecopy updates where  available,  showing that Borrower
and the  Gateway  Tower  Owner are each  organized  and in good  standing in the
jurisdiction  of its  organization  and showing that  Borrower is qualified as a
foreign  limited  liability  company in good standing in all states in which the
Borrower  Properties are located,  and that the Gateway Tower Owner is qualified
as a  foreign  limited  liability  company  in good  standing  in the  state  of
Maryland,  (except  to the  extent  that the local  counsel  opinions  delivered
pursuant to paragraph (4) above provide that  qualification in such state is not
required in order to own,  operate,  lease,  finance or otherwise  deal with the
Borrower Properties located in such state).

18. A copy of the  organizational  charter  and all  amendments  thereto of WWG,
WWPII,  Wells Avenue Holdings,  WASH Manager and Nomura  Borrower,  in each case
certified as of a recent date by the Secretary of State of the  jurisdiction  of
its  organization,  and a copy of the operating  agreement of WWG, WWPII,  Wells
Avenue Holdings,  WASH Manager and Nomura Borrower, in each case certified by an
authorized  officer,  manager or signatory of such entity as true and correct as
of a recent date.

19.  Resolutions of the management  committee of WWG, certified by an authorized
signatory  of WWG (or the  manager  thereof)  within a recent  date prior to the
Closing  Date,  to be duly  adopted  and in full  force and effect on such date,
authorizing  (a)  the  consummation  of the  transactions  contemplated  by this
Agreement and the other Loan Documents and Ancillary  Agreements to which WWG is
a party,  and (b) specific  authorized  signatories  to execute and deliver this
Agreement and the other Loan Documents and Ancillary  Agreements to which WWG is
a party.

20.  Resolutions  of the  management  committee  of the sole  member  of  WWPII,
certified by an  authorized  signatory  of such member (or the manager  thereof)
within a recent date prior to the Closing  Date,  to be duly adopted and in full
force and effect on such date,  authorizing (a) the  consummation of each of the
transactions  contemplated  by this  Agreement and the other Loan  Documents and
Ancillary  Agreements  to which WWPII is a party,  and (b)  specific  authorized
signatories  to execute and deliver this  Agreement and the other Loan Documents
and Ancillary Agreements to which WWPII is a party.

21.  Certificates of an authorized  signatory of the sole or managing member (as
applicable) of WWG and WWPII (or the manager thereof), in each case dated within
a recent date prior to the Closing Date, as to the  incumbency of the authorized
signatories  of such member (or the manager  thereof)  authorized by the company
resolutions  or consent  delivered to Lender (as  required  herein for each such
party) to execute and deliver the Loan  Documents  and  Ancillary  Agreements to
which such entity is a party, and any other  certificate or other document to be
delivered  by  such  party   pursuant   hereto  or  thereto,   together  with  a
certification of the incumbency of such authorized signatory.

22. A partnership  certificate of each Whitehall  Party and a consent of manager
of each  Whitehall  Party's  general  partner  certified by the  Secretary or an
Assistant  Secretary of such general partner,  in each case within a recent date
prior to the Closing  Date,  to be duly  adopted and in force and effect on such
date, authorizing (a) the consummation of the transactions  contemplated by this
Agreement  and the  Loan  Documents  and  Ancillary  Agreements  to  which  such
Whitehall  Party is a party,  and (b)  specific  officers to execute and deliver
this  Agreement and the other Loan  Documents and Ancillary  Agreements to which
such Whitehall Party is a party.

23. Certificates of the Secretary, an Assistant Secretary or a Vice President of
the general partner of each Whitehall Party, dated within a recent date prior to
the Closing Date, as to the  incumbency  of the officers or  representatives  of
such general partner  authorized by the company consent  delivered to Lender (as
required  herein) to  execute  and  deliver  this  Agreement  and the other Loan
Documents and Ancillary Agreements to which such Whitehall Party is a party, and
any other  certificate or other document to be delivered by such Whitehall Party
pursuant hereto or thereto,  together with a certification  of the incumbency of
such Secretary or Assistant Secretary, as the case may be.

24. A board  resolution of Wellsford  certified by the Secretary or an Assistant
Secretary of  Wellsford,  in each case within a recent date prior to the Closing
Date, to be duly adopted and in force and effect on such date,  authorizing  (a)
the  consummation  of the  transactions  contemplated  by this Agreement and the
other Loan Documents and Ancillary Agreements to which Wellsford is a party, and
(b) specific  officers to execute and deliver this  Agreement and the other Loan
Documents and Ancillary Agreements to which Wellsford is a party.

25. Certificates of the Secretary, an Assistant Secretary or a Vice President of
Wellsford,  dated  within a recent  date prior to the  Closing  Date,  as to the
incumbency  of the officers or  representatives  of Wellsford  authorized by the
company consent  delivered to Lender (as required herein) to execute and deliver
this  Agreement and the other Loan  Documents and Ancillary  Agreements to which
Wellsford  is a  party,  and any  other  certificate  or  other  document  to be
delivered by Wellsford pursuant hereto or thereto, together with a certification
of the incumbency of such Secretary or Assistant Secretary, as the case may be.

26. Financing  Statements (Form UCC-1) in form sufficient to be duly filed under
the Uniform  Commercial Code of each jurisdiction as may be necessary or, in the
reasonable  opinion  of Lender,  desirable  to perfect  the  security  interests
created by the Deeds of Trust and the other Collateral  Documents  pertaining to
the  Borrower  Properties,  in the  personal  property  and  fixtures  described
therein.

27.  Certified  copies of Requests for  Information or Copies (Form UCC-11),  or
equivalent  reports in respect of Borrower  and the  Gateway  Tower Owner in the
jurisdictions for which UCC-1 Financing  Statements are required,  together with
copies of financing  statements  referenced  therein  (none of which shall cover
property  to be  covered  by the  Deeds of Trust or other  Collateral  Documents
pertaining to the Properties).

28.  Evidence  that all other  actions  necessary  or, in the opinion of Lender,
desirable to perfect and protect the security  interests created by the Deeds of
Trust and the other Collateral  Documents pertaining to the Borrower Properties,
have been or will be taken.

29. An ALTA 1970 mortgagee policy of title insurance issued by the Title Company
for each of the Deeds of Trust,  naming Lender as the insured,  with reinsurance
and  endorsements  as Lender  may  require  (including  variable  rate,  survey,
creditors' rights (if applicable),  comprehensive coverage,  first loss, tie-in,
last dollar, future advances, access, zoning (with parking),  subdivision, doing
business,  usury, separate tax lot and contiguity  endorsements),  containing no
exceptions or exclusions other than Permitted Encumbrances or as may be approved
by  Lender  in  writing,  insuring  that the  insured  Deed of Trust is a valid,
first-priority  Lien on the  Borrower  Property  encumbered  thereby and related
collateral,  and in an insured  amount not to exceed  120% of the sum of (a) the
initial Loan Basis for the Borrower  Property  plus (b) the amount of Loan funds
allocated to the Working Capital Budget for the Borrower Property.

30. Current title,  municipal  violation,  tax and bankruptcy  searches (and any
other searches which Lender may require) for Borrower,  the Gateway Tower Owner,
any Borrower  Party and such other  parties as Lender shall  require in its sole
discretion.

31. Evidence of insurance as required by this Agreement.

32. A current "as-built" survey of each Borrower Property, dated or updated to a
date not earlier than thirty (30) days prior to the Closing  Date,  certified to
Lender  and the  Title  Company,  prepared  by a  licensed  surveyor  reasonably
acceptable to Lender and the Title Company,  and conforming to Lender's  current
standard survey requirements.

33. A current engineering report with respect to each Property,  covering, among
other matters,  inspection of heating and cooling  systems,  roof and structural
details  and  showing  no  failure  of  compliance   with  building   plans  and
specifications,  applicable legal  requirements  (including  requirements of the
Americans  with  Disabilities  Act) and fire,  safety and health  standards.  As
requested  by Lender,  such  report  shall also  include an  assessment  of such
Property's  tolerance for earthquake and seismic  activity.  Borrower shall also
provide Lender with copies of utility letters from applicable  service providers
evidencing  that each Property has adequate and sufficient  utility  service for
the use and purposes intended by Borrower.

34. A current Environmental Site Assessment for each Property.

35. If required by Lender, a current MAI appraisal for each Property.

36. A current rent roll for each Property,  certified by Borrower (provided that
any rent roll  delivered  for a Property  owned by Borrower or an  Affiliate  of
Borrower  for  less  than two (2)  months  prior to the  Closing  Date  shall be
certified by Borrower to its knowledge), together with all Leases not previously
delivered to Lender.  Such rent roll shall include the categories of information
contained in the rent rolls previously delivered to Lender for the Properties.

37. Copies of the property management  agreements for the Properties,  certified
by Borrower as being true, correct and complete.

38.  Copies  of all  Material  Agreements,  which  Material  Agreements  must be
approved in advance by Lender and, if required by Lender,  must be subordinated,
in all respects, to the Loan Documents.

39.  Borrower shall  establish all accounts and escrows as required by the terms
of this Agreement and deliver to Lender satisfactory evidence thereof.

40. Evidence that the Properties and the operation thereof comply with all legal
requirements,  including that all requisite certificates of occupancy,  building
permits, and other licenses, certificates, approvals or consents required of any
Governmental  Authority have been issued without  variance or condition and that
there is no litigation, action, citation, injunctive proceedings, or like matter
pending or  threatened  with respect to the validity of such  matters.  Borrower
shall  provide  Lender  with copies of all  certificates  of  occupancy  and, if
required by Lender,  shall deliver letters from applicable zoning,  building and
municipal agencies evidencing the foregoing.

41. No change shall have  occurred in the financial  condition of Borrower,  the
Gateway Tower Owner or any Borrower  Party or in the Operating  Cash Flow of any
of the Properties,  or in the financial condition of any major or anchor tenant,
which would have, in Lender's reasonable judgment, a Material Adverse Effect.

42. No  condemnation  or adverse  zoning or usage change  proceeding  shall have
occurred or shall have been threatened  against any of the  Properties;  none of
the  Properties  shall have  suffered  any  significant  damage by fire or other
casualty which has not been repaired; no Law, moratorium, injunctive proceeding,
restriction,  litigation, action, citation or similar proceeding or matter shall
have been enacted,  adopted, or threatened by any Governmental Authority,  which
would have, in Lender's judgment, a Material Adverse Effect.

43. All fees and commissions  payable to real estate brokers,  mortgage brokers,
or any other brokers or agents in connection with the Loan or the acquisition of
the Properties have been paid.

44. The representations  and warranties  contained in this Loan Agreement and in
all other Loan Documents are true and correct as of the date of the disbursement
of the Initial Advance.

45. No Potential Default or Event of Default has occurred and is continuing.

46. A letter,  executed by  Borrower,  addressed  to its  independent  certified
public accountants instructing them to comply with the provisions of Section 7.4
hereof.

47. To the extent  invoices  have been  submitted to Borrower  and  evidenced to
Lender,  payment of all  reasonable  fees and expenses of (a)  Lender's  outside
counsel,  Sheppard, Mullin, Richter & Hampton LLP, (b) all special local counsel
retained  by  Lender  in  connection  with  any of the  Loan  Documents  and the
transactions  contemplated  hereby and (c) all third  party  costs and  expenses
incurred  by Lender in  connection  with the  transaction  contemplated  by this
Agreement,  including costs of environmental appraisals,  structural reports and
travel expenses.

48.  Estoppel  certificates  and,  where  required  by  Lender,   subordination,
nondisturbance  and attornment  agreements from Tenants under Leases as shall be
satisfactory to Lender.

49. Lender shall have verified, based upon Lender's audit, a Cash On Cash Return
of at least 10.5% and a Debt Service Coverage Ratio of at least 1.20 to 1.0.

50. Lender shall have  verified that the amount of the Initial  Advance does not
exceed  eighty-five  percent (85%) of the aggregate  acquisition  and renovation
costs for all Borrower Properties.

51. Lender shall have  verified that the amount of the Initial  Advance does not
exceed eighty-two percent (82%) of Lender's determination of the aggregate value
of the  Borrower  Properties,  as set forth in the  "Property  Basis"  column of
Schedule 1.1(B).

52. Lender shall have verified that, after giving effect to the Initial Advance,
the Borrower's cash equity invested in the Properties is at least $40,000,000.

53. Borrower shall have delivered to Lender,  and Lender shall have approved,  a
detailed two-year capital budget for each of the Properties.

54. Such other documents or items as Lender reasonably may require. All material
documents  related to the Properties and other  Property  Documents,  if any, in
Borrower's possession (other than internal Borrower memoranda and communications
between  Borrower  and its  counsel)  prior to  Closing  Date  shall  have  been
delivered to Lender.

55. Lender shall have received a copy of an  indemnification  agreement executed
by Borrower in favor of the Gateway Tower Owner,  pursuant to which the Borrower
shall agree to indemnify and hold harmless the Gateway Tower Owner to the extent
Lender receives from the Gateway Tower Owner property (whether the Gateway Tower
Property,  cash or otherwise) in an amount in excess of the amount of Loan funds
used to repay the  indebtedness  secured by the Gateway Tower  Property prior to
the Closing Date plus the amount of all Working Capital Advances made in respect
of the Gateway Tower Property.

Lender agrees that upon funding the Initial Advance, the conditions set forth in
this Part A shall be deemed satisfied  (other than those conditions  waived as a
requirement  of the  initial  funding  but  reserved  in  writing by Lender as a
condition to subsequent Advances).

               PART B - GENERAL CONDITIONS TO SUBSEQUENT ADVANCES

In addition to the specific conditions set forth elsewhere in this Agreement for
the particular  type of Advance  requested,  each Advance  following the Initial
Advance  shall  be  subject  to  Lender's  receipt,   review,   approval  and/or
confirmation of the following,  each in form and content  satisfactory to Lender
in its reasonable discretion:

56.  Borrower shall have delivered to Lender a Notice of Additional  Advance for
the requested Advance.

57.  Borrower  shall  have  satisfied  any  conditions  waived  by  Lender  as a
requirement to funding the Initial  Advance but reserved in writing by Lender as
a condition for subsequent Advances.

58.  There shall exist no Potential  Default and no Event of Default  (currently
and after giving  effect to the  requested  Advance);  provided  that (a) if the
Advance is a Working Capital Advance,  then the foregoing  requirement regarding
Potential Defaults shall apply only to monetary Potential  Defaults,  and (b) if
the  Advance  is from  one of the  Holdbacks,  then  the  foregoing  requirement
regarding Potential Defaults shall apply only to monetary Potential Defaults and
those  nonmonetary  Potential  Defaults for which Lender has delivered notice to
Borrower under Section 10.1(2) and which Lender reasonably determined would have
a Material Adverse Effect.

59. The representations  and warranties  contained in this Loan Agreement and in
all other Loan  Documents  are true and correct  (other than with respect to the
representations  that are given to the  knowledge  of  Borrower,  as to which no
further  representation shall be deemed given) on and as of the Closing Date and
as of the date of the requested  Advance  (I.E.,  the  representations  shall be
updated as of such dates  rather  than  restated  at such time as of the Closing
Date, except that no such update shall be required if the matter to be disclosed
would  not  have  a  Material   Adverse   Effect),   other  than   breaches   of
representations  or warranties  for which Lender has remedies under Section 8.17
so long as Borrower is performing its obligations thereunder.

60. The requested  Advance shall be secured by the Loan Documents,  subject only
to Permitted Encumbrances and to those exceptions to title approved by Lender at
the  time  of  Loan  closing,  provided  that  if the  Title  Policies  and  the
endorsements  originally  issued  thereto  do not  insure  the  priority  of the
requested  Advance as required herein,  such priority shall be evidenced by such
additional endorsements to each Title Policy as are satisfactory to Lender.

61. If the Adjusted Loan Basis for a Property is being  increased to reflect the
requested Advance, or a portion thereof (if the Advance relates to more than one
Property),   Borrower  shall  have  provided  Lender  with  evidence  reasonably
satisfactory  to  Lender  that the  interest  rate cap  agreement  covering  the
Adjusted  Loan Basis of such  Property has been amended to increase the notional
amount  thereunder to an amount equal to the  increased  Adjusted Loan Basis for
such Property.

62.  Borrower  shall  have  paid  Lender's  reasonable  out-of-pocket  costs and
expenses in connection with such advance (including title and recording charges,
taxes and filing fees and costs and expenses of Lender's inspecting engineer and
attorneys).

63. A certification  from the manager or a duly authorized  officer of Borrower,
certifying that there have been (a) no additional building improvements,  and no
expansion  of  existing  building  improvements,  at  any  Property,  except  as
previously  approved by Lender or otherwise not prohibited under this Agreement,
and (b) no other  changes,  alterations  or  improvements  to any Property which
would cause a Material Adverse Effect with respect to such Property.

64. If the Adjusted Loan Basis for any Property is being adjusted to reflect the
Advance,  Borrower  shall have amended any applicable  Collateral  Document that
contains a maximum indebtedness  provision that is based upon such Adjusted Loan
Basis to increase such maximum indebtedness, if it is not already equal, to 120%
of the Adjusted Loan Basis  calculated  after such Advance,  and Borrower  shall
have paid all additional mortgage recording taxes which may be due on account of
such  reallocation  and all  recording  charges  and  filing  fees  incurred  in
connection with recording any amended Collateral Documents.

The  acceptance  by Borrower of the  proceeds of any Advance  shall be deemed to
constitute, as of the date of such acceptance, a confirmation by Borrower of the
granting and continuance of Lender's Liens pursuant to the Collateral Documents.

                        PART C - WORKING CAPITAL ADVANCES

In  addition to the  applicable  terms and  conditions  set forth in Section 2.1
hereof,  and the  general  conditions  set forth in Part B above,  each  Working
Capital  Advance  shall also be subject to Lender's  receipt,  review,  approval
and/or  confirmation of the following,  at Borrower's cost and expense,  each in
form and substance reasonably satisfactory to Lender:

65. Lender shall have approved the Working  Capital  Budget for the Property for
which the Working Capital Advance is requested.

66. Copies of any invoices to be paid with such Working  Capital Advance and, to
the extent not  previously  delivered to Lender,  evidence of the payment of any
invoice  submitted with the immediately  preceding request for a Working Capital
Advance.

67.  Borrower  shall  have  executed  and  delivered  to  Lender  copies  of all
documents, agreements,  certificates,  affidavits, searches or other instruments
which Lender and its counsel  determine  are necessary to comply with state Laws
applicable to building and construction loans.

68.  Borrower  shall not use any  portion of any  Working  Capital  Advance  for
payment of any costs or  expenses  other than those for which such  Advance  was
requested and approved.

69. A certificate of the Architect stating that, in the professional  opinion of
the Architect (or such other  professional as may be reasonably  satisfactory to
Lender),  if an  architect  customarily  would  be  retained  for  such  Capital
Expenditures  and Tenant  Improvements,  or a  certificate  of the manager or an
officer of Borrower stating that:

(1)  all of such Capital  Expenditures  and Tenant  Improvements  completed have
     been done in a good and workmanlike manner and in material  compliance with
     the approved plans and  specifications,  if any, and in accordance with all
     applicable provisions of Law;

(2)  the sum requested is justly  required to reimburse  Borrower (or the Nomura
     Borrower)  for  payments by  Borrower  (or the Nomura  Borrower)  to, or is
     justly  due to,  the  contractor,  subcontractors,  materialmen,  laborers,
     engineers,  architects  or other  persons  rendering  services or supplying
     materials  in  connection  with  such  Capital   Expenditures   and  Tenant
     Improvements  (giving a brief  description of such services and materials),
     and that when added to all sums previously paid out by Lender,  if any, the
     resulting  sum does not exceed the value of the such  Capital  Expenditures
     and Tenant Improvements done to the date of such certificate; and

(3)  with  respect to the  certificate  of the manager or an officer of Borrower
     only, the amount of the requested  Working Capital Advance (as allocated to
     such  Property)  will be sufficient  (together  with other funds  otherwise
     available to  Borrower) on  completion  of such  Capital  Expenditures  and
     Tenant  Improvements to pay for the same in full (giving in such reasonable
     detail as Lender may require an estimate of the cost of such completion and
     if such other funds are required as to the sources of such funds).

70. With  respect to Capital  Expenditures  or Tenant  Improvements  the cost of
which (in the aggregate with respect to the completion of the entire project) is
or is estimated to equal or exceed $150,000:

(1)  waivers or releases of liens,  reasonably  satisfactory to Lender, covering
     that part of such Capital  Expenditures and Tenant Improvements  previously
     paid for, if any;

(2)  the request  for any payment  after such  Capital  Expenditures  and Tenant
     Improvements  have been  completed  shall be  accompanied  by a copy of any
     certificate  or  certificates  required  by Law  to  render  occupancy  and
     operation of the Property legal;

(3)  a  construction  consultant  retained by Lender  shall have  inspected  and
     approved such Capital  Expenditures or Tenant Improvements (as applicable),
     at Borrower's cost and expense;

(4)  a certification  from the Borrower that, to its knowledge,  the Property in
     connection  with which the Working  Capital Advance is being made is not in
     violation of any zoning,  building,  health, fire, traffic,  environmental,
     wetlands,  coastal or other rules,  regulations,  ordinances,  statutes and
     requirements applicable thereto;

(5)  Lender  shall  retain an amount  equal to 10% of the cost to  perform  such
     Capital  Expenditures,  until delivery of acceptable  final lien waivers or
     releases from all contractors performing such Capital Expenditures; and

(6)  Lender  shall  retain an amount  equal to 10% of the cost to  perform  such
     Tenant Improvements until Lender receives delivery of acceptable final lien
     waivers  or  releases   from  all   contractors   performing   such  Tenant
     Improvements.

71.  As to  Tenant  Improvements  in  which  the cost in the  aggregate  for the
completion  of the  entire  project  equals  or  exceeds  $50,000,  an  estoppel
certificate,  from the  Tenant  for which  such  Tenant  Improvements  are being
performed, in form and content reasonably acceptable to Lender.

72. Proof  reasonably  satisfactory  to Lender that the respective  expenses for
which any prior Working Capital Advance was funded have been paid in full.

73. With respect to any Tenant  Improvement or Leasing Cost to be paid with such
Working Capital Advance, copies of the applicable Leases in the form required in
this  Agreement  and, with respect to Leasing  Costs,  a copy of the  commission
agreement (or other evidence reasonably  satisfactory to Lender) indicating that
no more than one-half of the  commission  is payable on the date the  applicable
Lease is  executed  and the  balance  is payable on or after the date the Tenant
occupies  the premises  which are being leased to the Tenant.  In no event shall
any Working Capital Advance with respect to a Leasing Cost exceed the portion of
the Leasing Cost then due and payable as provided in the  immediately  preceding
sentence.

74. With respect to any Tenant  Allowance,  such  supporting  documentation  and
information as may reasonably be required by Lender.

75.  With  respect to any  funding to be advanced  for Tenant  Improvements  and
Leasing  Costs:  (a) the aggregate  amount of all Working  Capital  Advances for
Tenant Improvements for any Lease shall not exceed (i) $4.00 per square foot for
each year of the initial Lease term not subject to a Tenant termination right or
option, up to 5 years (plus $1.00 per square foot for each  non-terminable  year
of the  initial  term of such Lease in excess of 5 years,  up to a maximum of an
additional  $5.00) for space which has been previously  leased by the current or
any prior  Tenant,  and (ii) $5.00 per square  foot for each year of the initial
Lease term not subject to a Tenant  termination  right or option,  up to 5 years
(plus $1.00 per square foot for each  non-terminable year of the initial term of
such  Lease in excess of 5 years,  up to a maximum of an  additional  $5.00) for
space which has not been previously  leased by the Tenant under such Lease or by
a prior Tenant;  (b) the aggregate  amount of Working  Capital  Advances for any
Leasing  Costs  shall  not  exceed  7.0% of the  total  rent  payable  under the
respective Lease during the initial term of the Lease, or as to any renewal,  5%
of the total rent payable  under the  respective  Lease during the renewal term;
(c) in the event the amount of Working Capital Advances for Tenant  Improvements
and Leasing  Costs for any single Lease exceeds  $600,000.00,  Lender shall have
the right to  approve  such  Lease  prior to making  any such  advance;  (d) any
remaining balance of the Lease Buy Out  Consideration  with respect to the space
for which the Tenant Improvement will be constructed,  shall be used by Borrower
for such Tenant  Improvement  prior to using or requesting  any Working  Capital
Advance  therefor.  Notwithstanding  the foregoing,  the  limitations for Tenant
Improvements  and Leasing Costs set forth in the immediately  preceding  clauses
(a) and (b)  respectively  may be reasonably  increased to such amount as may be
requested by Borrower, provided that Borrower is able to demonstrate to Lender's
reasonable  satisfaction  that the  increased  amount  requested  by Borrower is
consistent with the market in the relevant geographic market.

76. The Lease, with respect to which a Working Capital Advance is being made for
Tenant  Improvements,  Leasing  Costs or Capital  Expenditures,  shall have been
entered  into on or after the Closing  Date (or the renewal  thereof  shall have
been entered into on or after the Closing Date) and, unless the Lease previously
was  expressly  approved  by Lender  in  writing,  (a) shall be in a lease  form
reasonably  acceptable to Lender;  (b) shall contain standard  subordination and
attornment provisions and shall otherwise contain terms and provisions which are
consistent with market terms for similar  properties in the area,  including the
terms regarding rents, concessions,  tenant improvements,  term (which shall not
in any event be less than three (3) years in order for such Lease to qualify for
a Working Capital Advance),  renewals and leasing costs; (c) shall provide for a
rental  rate in any one year of not  less  than  eighty  percent  of the  annual
average rental for the entire term thereof,  provided that if the Lease provides
for any free rent  during  the first year of its term  (which in no event  shall
exceed six (6) months of free  rent),  then no income  from such Lease  shall be
included in calculating  Adjusted Operating Cash Flow for any purpose under this
Agreement until the free rent period has expired and the Tenant commences paying
rent;  (d) shall  provide  with  respect to Leases which are not triple net, for
base year  operating  expense  stops for purposes of  calculating  each Tenant's
operating  expense  escalation  for each Property  which are, in the  aggregate,
equal to then current  operating  expenses for such  Property  plus or minus ten
percent  (10%);  and (e) if the Tenant has the right or option to terminate  the
Lease prior to its stated  expiration  date,  either (i) the Lease shall provide
that such Tenant shall  reimburse  Borrower for the  unamortized  cost of Tenant
Improvements  and Leasing  Costs paid for by Borrower,  or (ii) the total amount
advanced  for Tenant  Improvements  and Leasing  Costs with respect to the Lease
pursuant to paragraph 11 above shall be calculated assuming the Lease terminated
on the first date on which the  Tenant  could  exercise  such right or option to
terminate.

77. With respect to any funding to be advanced for Capital  Expenditures,  in no
event shall the Working  Capital  Advances  with respect to any single  Property
exceed (in the  aggregate for all Capital  Expenditures  made in respect of such
Property) the total amount of Loan funds  allocated to Capital  Expenditures  in
the  approved  Working  Capital  Budget for such  Property.  In no event shall a
Working Capital Advance for Capital Expenditures, Tenant Improvements or Leasing
Costs be  available  for Work or Major  Work  required  in  connection  with any
casualty or condemnation.

78. With respect to Capital Expenditures and Tenant Improvements, Borrower shall
have delivered to Lender, to the extent not previously delivered to Lender:

(1)  if the cost thereof is equal to or greater than  $150,000,  complete  plans
     and  specifications for such Capital  Expenditures and Tenant  Improvements
     (approved by all  Governmental  Authorities  whose  approval is required at
     such time), for Lender's approval, which approval shall not be unreasonably
     withheld or delayed,  which plans and specifications  shall bear the signed
     approval   thereof  by  an  Architect  and  shall  be  accompanied  by  the
     Architect's  signed estimate,  bearing the Architect's  seal, of the entire
     cost of completing such Capital Expenditures and Tenant Improvements;

(2)  certified or  photostatic  copies of all permits and approvals  required by
     Law  in  connection  with  the   commencement   and  conduct  such  Capital
     Expenditures and Tenant Improvements; and

(3)  if the cost thereof is equal to or greater than  $250,000,  and if required
     by  Lender,  a payment  and  performance  bond for and/or  guaranty  of the
     payment  for  and  completion  of  such  Capital  Expenditures  and  Tenant
     Improvements,   which  bond  or  guaranty  shall  be  in  form   reasonably
     satisfactory  to Lender,  and shall be signed by a surety or  sureties,  or
     guarantor or guarantors,  as the case may be, who are reasonably acceptable
     to  Lender,  and shall be in an amount  of not less  than one  hundred  ten
     percent (110%) of the Architect's estimate of the entire cost of completing
     such Capital Expenditures and Tenant Improvements;  provided, however, that
     no such  performance  bond or guaranty  shall be  required if Borrower  has
     completed and paid for such Capital Expenditures or Tenant Improvements and
     is seeking a Loan disbursement to reimburse Borrower for such costs.

                           PART D - HOLDBACK ADVANCES

In  addition to the  applicable  terms and  conditions  set forth in Section 2.1
hereof,  and the general conditions set forth in Part B above, each Advance from
a  Holdback  shall be subject  to  Lender's  receipt,  review,  approval  and/or
confirmation of the following,  at Borrower's cost and expense, each in form and
substance reasonably satisfactory to Lender:

79. NOMURA HOLDBACK. Disbursement of the Nomura Holdback shall be subject to the
following  additional  terms  and  conditions,  which  shall be  satisfied  as a
condition to each Advance (unless otherwise expressly provided below):

(a) As to the first Advance from the Nomura Holdback only:

(i)  Borrower shall have delivered to Lender the WAH Pledge Agreement,  executed
     by  Borrower,  together  with  Financing  Statements  (Form  UCC-1) in form
     sufficient  to be duly  filed  under the  Uniform  Commercial  Code of each
     jurisdiction as may be necessary or, in their reasonable opinion of Lender,
     desirable  to  perfect  the  security  interests  created by the WAH Pledge
     Agreement  in  the  membership  interest(s)  and  other  personal  property
     described therein.

(ii) Evidence  that all other  actions  necessary  or, in the opinion of Lender,
     desirable to perfect and protect the security  interests created by the WAH
     Pledge  Agreement  have  been  or  will  be  taken.  Without  limiting  the
     foregoing,  Borrower  shall  have  delivered  to Lender (A)  evidence  that
     Certificate  #1,  which was  previously  issued in  respect  of  Borrower's
     membership  interest in Wells Avenue  Holdings,  has been canceled;  (B) an
     original Certificate #2 issued to Borrower, evidencing Borrower's ownership
     of one hundred  percent (100%) of the membership  interests in Wells Avenue
     Holdings, which Certificate shall bear a legend on its face identifying the
     Loan and the WAH Pledge Agreement  (substantially in the form of the legend
     on  Certificate  #1 in  favor  of  BankBoston);  and (C) an  assignment  of
     membership  interest  separate  from  certificate,  in blank,  executed  by
     Borrower, with Borrower's signature thereto notarized and guaranteed.

(iii)Borrower  shall have  delivered  to Lender the Nomura  Consent and Estoppel
     and the  Cash  Management  Agreement,  executed  by  Borrower,  the  Nomura
     Borrower and each other party thereto (other than Lender).

(iv) The Cash Management  Account shall have been established in accordance with
     the Cash Management Agreement.

(v)  Borrower shall have delivered to Lender, in form and substance satisfactory
     to Lender, and dated as of the date of the requested  Advance,  opinions of
     Sullivan  &  Cromwell,  counsel  to  Borrower,  regarding  the  WAH  Pledge
     Agreement and other documents delivered pursuant to subparagraphs (i), (ii)
     and  (iii)  immediately  above,   addressing  such  matters  regarding  the
     Borrower, and such documents as Lender may reasonably specify.

(vi) The representations and warranties  contained in this Loan Agreement and in
     all other Loan  Documents  regarding  the  Nomura  Borrower,  Wells  Avenue
     Holdings,  WASH  Manager,  the Nomura  Properties,  the Nomura Loan and the
     Nomura  Loan  documents  are true and  correct on and as of the date of the
     requested Advance, and Borrower shall have executed and delivered to Lender
     a certification,  in form and substance satisfactory to Lender,  confirming
     the accuracy of such representations and warranties.

(vii)No breach or default shall exist under any covenant or agreement  contained
     in the Loan Documents regarding the Nomura Loan, the Nomura Properties, the
     Nomura Borrower  and/or the Nomura Loan Documents,  and Borrower shall have
     executed and  delivered to Lender a  certification,  in form and  substance
     satisfactory to Lender, confirming that no such breach or default exists.

(1)  Borrower shall have delivered to Lender evidence reasonably satisfactory to
     Lender that the then-current  principal balance of the Nomura Loan does not
     exceed $66,900,000.

(2)  Lender  shall have  approved  the Working  Capital  budgets for each Nomura
     Property  and  approved  a  Capital  Expenditures  budget  for  the  Nomura
     Properties in form and detail acceptable to Lender.

(viii) Since the Closing Date,  there shall have been no material  modification,
     amendment, consolidation, spread, restatement or waiver of any provision of
     any of the Nomura Loan Documents (except pursuant to the Nomura Consent and
     Estoppel), unless approved by Lender.

(ix) Resolutions of the board of directors or board of managers (as  applicable)
     of the managing member of the Nomura  Borrower,  certified by an authorized
     officer or manager of such  managing  member  within a recent date prior to
     the date of the requested Advance, to be duly adopted and in full force and
     effect  on  such  date,  authorizing  (A) the  consummation  of each of the
     transactions  contemplated  by this  Agreement and the other Loan Documents
     and Ancillary  Agreements to which the Nomura Borrower is a party,  and (B)
     specific managers or officers to execute and deliver the Loan Documents and
     Ancillary Agreements to which the Nomura Borrower is a party.

(x)  Borrower shall have delivered to Lender evidence reasonably satisfactory to
     Lender that the Nomura Borrower has completed,  Lien-free and in accordance
     with applicable Laws, the structural  repairs and environmental work to the
     Nomura  Properties  required  under in  paragraphs  (1) and (2) of Schedule
     8.19.

(3)  A current engineering report with respect to each Nomura Property covering,
     among other matters,  inspection of heating and cooling  systems,  roof and
     structural details and showing no failure of compliance with building plans
     and specifications,  applicable legal requirements  (including requirements
     of the  Americans  with  Disabilities  Act) and  fire,  safety  and  health
     standards.  As  requested  by Lender,  such  report  shall also  include an
     assessment of such Nomura  Property's  tolerance for earthquake and seismic
     activity. Borrower shall also provide Lender with copies of utility letters
     from applicable service providers  evidencing that each Nomura Property has
     adequate and sufficient  utility service for the use and purposes  intended
     by Nomura Borrower

(4)  A current Environmental Site Assessment for each Nomura Property.

(xi) Borrower  shall have  delivered  to Lender,  with  respect to each  owners'
     policy of title insurance  covering a Nomura  Property,  such  endorsements
     thereto as Lender may require.

(5)  Borrower shall have delivered to Lender, with respect to each Title Policy,
     endorsements to increase the aggregate insurance coverage thereunder by the
     amount of the Nomura  Holdback,  plus the amount of Loan funds allocated to
     the Working Capital  Budgets for the Nomura  Properties,  which  additional
     insurance  coverage  shall be allocated  among the Borrower  Properties  as
     determined  by Lender.  Borrower  shall also deliver to Lender such amended
     "tie-in"  (aggregation of coverage)  endorsements,  and amended reinsurance
     agreements,  as Lender  shall  require to reflect  the amount of the Nomura
     Holdback,  plus the amount of Loan funds  allocated to the Working  Capital
     Budgets for the Nomura Properties.

(xii)Borrower shall have  delivered to Lender,  as to each Nomura  Property,  an
     "as-built"  survey of each such  Property,  dated or  updated to a date not
     earlier than thirty (30) days prior to the closing date of the Nomura Loan,
     certified  to the  Nomura  Lender  (or  its  predecessor-in-interest),  and
     conforming to typical commercial mortgage lender survey requirements.

(xiii) Borrower shall have delivered to Lender such other  documents or items as
     Lender reasonably may require. All material documents related to the Nomura
     Properties and other Property  Documents,  if any, in the Nomura Borrower's
     possession   (other   than   internal   Nomura   Borrower   memoranda   and
     communications  between  Nomura  Borrower and its counsel) prior to Closing
     Date shall have been delivered to Lender.

(6)  Borrower  shall have complied with Section 8.15 with respect to the Initial
     Advance.

(b)  Borrower  shall have paid to Lender a  commitment  fee equal to one-half of
     one percent (0.5%) of the amount of the Advance. In addition,  with respect
     to the first Advance from the Nomura Holdback,  Borrower shall have paid to
     Lender an additional commitment fee equal to one-half of one percent (0.5%)
     of the  aggregate  amount of Loan funds  allocated  to the Working  Capital
     Budgets for the Nomura Properties.

(c)  If required by Lender,  Borrower  shall have  delivered  to Lender  written
     estoppel  certificates from Tenants under Leases at the Nomura  Properties,
     substantially  in the  form  delivered  by  Lender  to  Borrower  for  such
     Properties prior to the Closing Date.

(d)  As to the second Advance from the Nomura  Holdback,  an Estoppel  Statement
     executed by the Nomura Lender and dated as of a date not more than ten (10)
     days  prior to the date the  requested  Advance is to be  disbursed,  which
     Estoppel Statement shall be in form and substance substantially the same as
     the  Estoppel  Statement  executed by the Nomura  Lender and  delivered  to
     Lender prior to the first Advance.

(e)  The  Debt  Service  Coverage  Ratio  for the  Nomura  Loan  and the  Nomura
     Properties  only (I.E.,  Debt Service  Coverage  Ratio shall be  calculated
     based on Adjusted  Operating Cash Flow from the Nomura  Properties only and
     the outstanding  principal  balance of the Nomura Loan) is at least 1.15 to
     1.0.

(f)  The Nomura  Properties  shall have  maintained  (or  exceeded) the "Manager
     Termination  Ratio" (as described in the Nomura Loan  Agreement) as of each
     of the three (3) "DSCR Determination  Dates" (as defined in the Nomura Loan
     Agreement)  immediately  preceding the date of the requested  Advance,  and
     Borrower shall have delivered to Lender copies of the evidence delivered to
     the Nomura  Lender  (pursuant to Section 9.5 of the Nomura Loan  Agreement)
     that the Nomura  Properties have met or exceeded such ratio as of each such
     date.  Alternatively,  Borrower  shall have delivered to Lender an estoppel
     from the Nomura  Lender  stating that to the knowledge of the Nomura Lender
     (or of the  servicer  of the Nomura  Loan),  the Nomura  Borrower is not in
     default under the Nomura Loan.

(g)  If the  Advance is to be made  during the first  Loan  Year,  after  giving
     effect to such  Advance,  the Cash On Cash Return is at least 10.5% and the
     Debt Service Coverage Ratio is at least 1.20 to 1.0.

(h)  If the  Advance is to be made  during the second  Loan Year,  after  giving
     effect to such  Advance,  the Cash On Cash Return is at least 11.5% and the
     Debt Service Coverage Ratio is at least 1.30 to 1.0.

(i)  Lender  shall have  verified  that,  after giving  effect to the  requested
     Advance,  the amount of the  outstanding  Loan balance,  plus the principal
     amount of the Nomura Loan, does not exceed eighty-five percent (85%) of the
     aggregate acquisition and renovation costs for all Properties.

(j)  Lender  shall have  verified  that,  after giving  effect to the  requested
     Advance,  the amount of the  outstanding  Loan balance,  plus the principal
     amount of the Nomura  Loan,  does not exceed  eighty-two  percent  (82%) of
     Lender's  determination  of the aggregate value of the  Properties,  as set
     forth in the "Property Basis" column of Schedule 1.1(B).

(k)  Not more than two (2) Advances shall be made from the Nomura Holdback,  nor
     shall any such Advance be made after the second Loan Year.

(l)  Advances shall be in a minimum funding amount not less than $1,000,000.00.

(m)  Lender  shall have no  obligation  to make any  further  Advances  from the
     Nomura Holdback after the second Loan Year, and any Loan funds remaining in
     the Nomura Holdback shall be canceled as of the last day of the second Loan
     Year.

80. MOUNT AIRY HOLDBACK.  The Mount Airy Holdback shall be disbursed in a single
Advance,  subject to Borrower's  satisfaction of the following  additional terms
and conditions:

(1)  Borrower shall have completed all Remedial  Action required with respect to
     the  "180/188  Mount Airy Road"  Property,  as required  in  paragraph 2 of
     Schedule 8.19, including obtaining an appropriate  "closure" or "no further
     action"  letter as required  therein.  Alternatively,  Borrower  shall have
     delivered to Lender a copy of an existing  "closure" or "no further action"
     letter with supporting  documentation (including analytical data and a site
     location  map) which  addresses the subject  matter of the Remedial  Action
     described  in Schedule  8.19,  all in form and  substance  satisfactory  to
     Lender (in which event  Borrower  shall not be  required  to  complete  the
     Remedial  Action for this  Property  described  in  paragraph 2 of Schedule
     8.19).

81. SHATTUCK OFFICE CENTER  HOLDBACK.  The Shattuck Office Center Holdback shall
be disbursed  in a single  Advance,  subject to  satisfaction  of the  following
additional terms and conditions:

(1)  Borrower  shall have paid to Lender a  commitment  fee equal to one percent
     (1.0%) of the amount of the Advance. In addition,  Borrower shall have paid
     to Lender an additional  commitment  fee equal to one percent (1.0%) of the
     amount of Loan  funds  allocated  to the  Working  Capital  Budget  for the
     Shattuck Office Center Property.

(2)  Borrower shall have satisfied the conditions  specified in paragraphs 1, 4,
     9, 18,  19, 20, 21, 23, 24, 28, 30, 32, 33, 34, 35, 36, 39, 40, 41, 42, 43,
     44, 45 and 46 of Part A above;  provided that paragraph 36 shall be limited
     to only those  representations  and  warranties  relating  to the  Shattuck
     Office Center Property (all other  representations  and warranties shall be
     subject  to the  condition  set  forth  in  paragraph  4 of  Part B of this
     Schedule  2.1).  Lender  shall  determine  Borrower's  satisfaction  of the
     condition specified in paragraphs 41 and 42 of Part A based upon an updated
     Operating Cash Flow audit of the Shattuck  Office Center  Property and each
     of the Properties.

(3)  Borrower shall have delivered to Lender, with respect to each Title Policy,
     endorsements to increase the aggregate insurance coverage thereunder by the
     amount of the  Shattuck  Office  Center  Holdback,  plus the amount of Loan
     funds  allocated  to the Working  Capital  Budget for the  Shattuck  Office
     Center  Property,  which additional  insurance  coverage shall be allocated
     among the Borrower Properties as determined by Lender.  Borrower shall also
     deliver  to  Lender  such  amended   "tie-in"   (aggregation  of  coverage)
     endorsements,  and amended reinsurance agreements,  as Lender shall require
     to reflect the amount of the  Shattuck  Office  Center  Holdback,  plus the
     amount of Loan  funds  allocated  to the  Working  Capital  Budget  for the
     Shattuck Office Center Property.

(4)  Not more than one (1) Advance shall be made from the Shattuck Office Center
     Holdback.

(5)  No new or  additional  information  shall have become known to Lender since
     the Closing Date which Lender,  in its sole  discretion,  determines  would
     cause any of the environmental or engineering reports covering the Shattuck
     Office Center Property,  which were reviewed by Lender prior to the Closing
     Date, to be inaccurate in any material respect.

(6)  Notwithstanding  anything  to the  contrary  contained  in this  Agreement,
     Borrower shall not be entitled to obtain an Advance of the Shattuck  Office
     Center  Holdback  after the date which is sixty (60) days after the Closing
     Date (at which time all  undisbursed  Loan funds  allocated to the Shattuck
     Office Center Holdback, and all Loan funds allocated to the Working Capital
     Budget for the Shattuck Office Center Property, shall be canceled).

82. GATEWAY TOWER HOLDBACK.  The Gateway Tower Holdback shall be disbursed in up
to three (3) Advances, subject to satisfaction of the following additional terms
and conditions:

(1)  Borrower  shall have complied with Section 8.15 with respect to the Initial
     Advance.

(2)  At such time as Borrower has  delivered to Lender  evidence  acceptable  to
     Lender that the  post-closing  structural  repairs  for the  Gateway  Tower
     Property  identified  as "Garage  Repairs" (as  described in paragraph 1 of
     Schedule 8.19) have been fully completed,  Lien-free and in accordance with
     all applicable  Laws,  Borrower shall be entitled to obtain an Advance from
     the Gateway Tower Holdback of $400,000.00.

(3)  The balance of the Gateway Tower  Holdback  shall be disbursed in up to two
     (2) Advances to pay amounts owing by the Gateway Tower Owner under its June
     30, 2000 contract with Riparius  Construction,  Inc. for the "Base Building
     Renovation"  (as  described  in paragraph 1 of Schedule  8.19),  subject to
     Lender's receipt,  review approval and/or confirmation of the following, at
     Borrower's  cost  and  expense,  each  in  form  and  substance  reasonably
     satisfactory to Lender:

(i)  for  each  Advance,  a  copy  of  the  completed  and  signed  contractor's
     application and  certification  for payment (AIA Document  G702),  together
     with all  attachments,  for the  work to be paid  for  with  the  requested
     Advance;

(2)  for each Advance,  waivers or releases of liens, reasonably satisfactory to
     Lender,  covering that part of such work  previously  paid for, if any, and
     conditional lien releases  covering the work to paid for with the requested
     Advance;

(3)  for each Advance, a construction  consultant  retained by Lender shall have
     inspected and approved such work, at Borrower's cost and expense;

(4)  if the  request is the second  request  (or the only  request,  if Borrower
     elects  to  request  a  single  Advance  for  this  work),  a  copy  of any
     certificate  or  certificates  required  by Law  to  render  occupancy  and
     operation of the Gateway  Tower  Property (or portion  thereof  affected by
     such work) legal; and

(5)  if the  request is the second  request  (or the only  request,  if Borrower
     elects to request a single  Advance  for this  work),  Borrower  shall have
     completed all such work,  Lien-free and in accordance  with all  applicable
     Laws.

                                 SCHEDULE 2.1(5)

                     WORKING CAPITAL BUDGETS FOR PROPERTIES

<TABLE>
<CAPTION>

                                     TENANT             LEASING     CAPITAL
PROPERTY NAME                     IMPROVEMENTS           COSTS    EXPENDITURES            TOTAL

<S>                               <C>                <C>            <C>               <C>
Cutler Lake Corp Center           $ 2,432,000        $ 881,000      $ 199,000         $ 3,512,000
Shattuck Office Center                259,000           99,000         12,000             370,000
60 Turner Street                       63,000                0         16,000              79,000
24 Federal/3 P.O. Square            1,560,000          336,000        506,000           2,402,000
Gateway Tower                       1,725,000          661,000        393,000           2,778,000
300 Atrium                                  0                0         40,000              40,000
400 Atrium                          2,915,000        1,184,000        363,000           4,462,000
500 Atrium                                  0                0         44,000              44,000
700 Atrium                            704,000                0              0             704,000
Mountain Heights I & II               241,000          139,000        400,000             780,000
105 Challenger Road                   128,000           51,000        125,000             304,000
Greenbrook Corporate Center           260,000           94,000         18,000             371,000
Campus Drive                        3,186,000                0        797,000           3,982,000
180/188 Mount Airy Road               223,000          144,000        125,000             492,000
Chatham Executive Center                    0                0              0                   0
Garden State Convention Center              0                0        100,000             100,000
1800 Valley Road                            0                0         68,000              68,000
Wells Research Center*                390,000          191,000        866,000           1,447,000
7/57 Wells Avenue*                    356,000          177,000        370,000             903,000
Dedham Place*                       2,290,000          859,000      1,360,000           4,510,000
333 Elm Street*                       256,000          122,000        199,000             578,000
128 Tech Center*                    5,039,000        1,636,000      7,982,000          14,658,000
201 University Avenue*                      0                0         15,000              15,000
         TOTAL                    $22,028,000       $6,574,000    $13,998,000        $ 42,600,000

* Nomura Property. As a condition to the first Advance from the Nomura Holdback,
Lender and Borrower  shall discuss and agree upon the final  allocations of Loan
funds among the Working Capital Budgets for the Nomura Properties (provided that
the total amount of such Loan funds shall not be increased or decreased).
</TABLE>

                                  SCHEDULE 4.2

                              ENVIRONMENTAL REPORTS

<TABLE>
<CAPTION>

         PROPERTY NAME                             REPORT TITLE                  CONSULTANT                    DATE

<S>                             <C>                                                <C>                       <C>
Cutler Lake Corp Center         Release Notification and Downgradient Property     ENSR                      05/04/01
                                Status Submittal
60 Turner Street                Phase I Environmental Site Assessment &            ENSR                      02/98
                                Subsurface Investigation
Gateway Tower                   Phase I Environmental Site Assessment              I'VE Environmental        11/23/94
                                Phase I & II Environmental Site Assessment         ENSR                      10/99
                                Comprehensive Asbestos Survey                      ENSR                      10/99
                                Asbestos Abatement Final Compliance Report         ENSR                      01/00
300 Atrium Drive                Review of Environmental Assessments Report         PMK Group                 08/01/97
400 Atrium Drive                Review of Environmental Assessments Report         PMK Group                 08/01/97
                                Final UST Investigation                            ATC Associates, Inc.      05/15/01
500 Atrium Drive                Review of Environmental Assessments Report         PMK Group                 08/01/97
700 Atrium Drive                Review of Environmental Assessments Report         PMK Group                 08/01/97
Greenbrook Corp Center          Environmental Site Assessment                      First Environmental       04/97
                                Site Assessment                                    PMK Group                 02/18/98
180/188 Mount Airy Rd.          Environmental Assessment Report                    PMK Group                 06/02/98
Mountain Heights I & II         Phase I Environmental Report                       Kaselaan & D'Angelo       03/30/94
                                                                                   Associates
                                Report of Preliminary Asbestos Survey              PMK Group                 11/03/97
                                Environmental Site Assessment                      PMK Group                 10/15/99
                                Letter                                             Environmental Health      10/19/99
                                                                                   Investigations, Inc.
Wells Research Center           Phase I Environmental Report                       ENSR                      03/98
                                Due Diligence Report                               Environmental Waste       03/98
                                                                                   Management
Dedham Place                    Phase I Environmental Report                       ENSR                      03/98
                                Underground Storage Tank Report                    ENSR                      09/08/99
333 Elm Street                  Phase I Environmental Site Assessment              ENSR                      02/98
128 Technology Center           Phase I Environmental Report                       EMG                       11/25/96
                                Limited Subsurface Investigation                   Rizzo Associates          01/30/97
201 University Avenue           Phase I Environmental Report                       ENSR                      02/98
                                Method 3 Risk Assessment Report                    ENSR                      03/99

                                 SCHEDULE 5.1(A)

                              TENANT DELINQUENCIES

        PROPERTY NAME               SECTION               COMMENT

                       [SEE ATTACHED DELINQUENCY REPORTS]

                                 SCHEDULE 5.1(B)

                        NOTICES OF TERMINATION OR DEFAULT

           PROPERTY NAME                                                COMMENT
Greenbrook Corporate Center          1.   Tenant: First Bankers; payment default; tenant has vacated; pending suit
                                          for damages of $226,166.
                                     2.   Tenant: Mortgage Plus; payment default; tenant has vacated; suit for
                                          damages of $400,092; judgment in favor of Borrower.
                                     3.   Tenant: Copy-Quik; TI costs payment default of $22,407.82.

                                 SCHEDULE 5.1(C)

                                PURCHASE OPTIONS

           PROPERTY NAME                                                COMMENT

Mountain Heights I & II   Tenant: Compaq; has right of first offer to purchase building (420 Mountain
                          Avenue).

Gateway Tower             Tenant: ADP; has option to purchase building which expires 12/31/01.
                          Purchase price as of 06/15/01 is approximately $44.6 million.

                                 SCHEDULE 5.1(D)

                            LEASE TERMINATION RIGHTS

         PROPERTY NAME                     TENANT                                     COMMENT

300 Atrium Drive                 IMS America                 Termination option effective 4/04; penalty 3 months
                                                             rent + unamortized TI
Mountain Heights I & II          Santa Cruz                  Termination option effective 9/04; penalty $529,000
                                 (430 Mountain Ave)
                                 Compaq                      One time right at the end of the seventh lease year
                                 (420 Mountain Ave)          (8/07), with 12 months written notice and termination
                                                             fee of $3,630,919 ($29.50 ? 123,082 sf)
Chatham Executive Center         WP Commercial               Termination option at 2/1/03 to terminate on the last
                                                             day of the 9th month following termination notice;
                                                             6 mos. rent penalty
                                 Appaloosa                   Termination option effective 2/04; no penalty
                                 Quadrant                    Cancellation option after 95th month (7/05); penalty
                                                             6 months rent
                                 Hilton (Park Place)         Termination option effective 4/03; penalty $57,000
180/188 Mount Airy Road          Research International      Termination option effective 12/01 - 12/03 with 6 months
                                                             penalty only if Tenant wants 15,000 sf in market and
                                                             Landlord cannot deliver
Dedham Place                     Kramer   &   Flgman         Termination   right after  the 5th year (3/04), with 6
                                                             months notice and 2 months  rent and operating expense
                                                             penalty
                                 Paging Network              Right to terminate anytime
                                 Cellco  Partnership d/b/a   Termination option at sole discretion if unable to use Verizon
                                                             Wireless property for its intended purpose by written notice
                                                             via certified mail
7/57 Wells Avenue                EMC                         Either party may terminate at the end of any monthly
                                                             extension with no less than 15 days notice
                                 GEO Centers                 May terminate after 12/1/95 with 6 months notice.
                                 Jungbunziauer               May terminate with 120 days prior written notice and
                                                             rent penalty
                                 Charles Murray              Right to terminate upon death or disability
Wells Research Center            Provident Mutual            Right to terminate after 5th lease year (6/04), with no
                                                             less than 9 months notice
                                 Sodexho Marriott            May terminate with/without cause with 60 days written
                                                             notice
60 Turner Street                 Brandels University         May terminate in entirety or partially (2,500 sf
                                                             minimum) with 6 months written notice after 7/1997
24 Federal/3 P.O. Square         WP Commercial               Floating termination option upon 9 months written notice
                                 (3 P.O. Square)             with a partial termination right not to exceed 50% of
                                                             Premises as long as the space is "feasible".  Tenant to
                                                             pay all separation costs.
Gateway Tower                    WP  Commercial              Floating termination  option upon 9 months written notice with
                                                             a partial  termination right not to  exceed  50% of Premises as long
                                                             as  the   space  is "feasible".  Tenant to  pay all separation costs.

                                 SCHEDULE 5.1(E)

                            LEASING COMMISSIONS OWING

           PROPERTY NAME                                                COMMENT

300 Atrium                           Tenant: Multilink; $56,427 commission owed
Mountain Heights I & II              Tenant: Havas (430 Mountain Avenue); $82,282.70 commission owed
180/188 Mount Airy Road              Tenant: Dynamic Research; $4,742 commission owed
Gateway Tower                        Tenant: ADP; $299,169.71 commission owed
                  Tenant: Emmes Corp; $273,062 commission owed
24 Federal/3 P.O. Square             Tenant: Care Guard (24 Federal) $21,761.25 commission owed
                                     Tenant: TD Waterhouse (24 Federal) $53,840 commission owed
                                     Tenant: Care Guard (3 P.O. Square) $22,376.25 commission owed
                                     Tenant: Cohen Silvestri (3 P.O. Square) $13,425.75 commission owed
Cutler Lake Corp Center              Tenant: Key3Media; $500,000 commission owed
                  Tenant: marchFirst; $536,000 commission owed

</TABLE>

                                 SCHEDULE 5.1(F)

                                  PREPAID RENTS

        PROPERTY NAME               SECTION                     COMMENT

                      [SEE ATTACHMENTS TO SCHEDULE 5.1(A)]

                                  SCHEDULE 6.4

                            CONDEMNATION PROCEEDINGS

None.

                                  SCHEDULE 6.5

                      CASUALTIES AND FLOOD ZONE PROPERTIES

1.   The Chatham Executive Center Property is located in a designated flood zone
     (Flood Zone S A-6, B and C).

                                  SCHEDULE 6.6

                               MATERIAL AGREEMENTS

1.   Environmental  Services Procurement and Coordination  Agreement dated as of
     January 1, 2001 between WWG and BTS Solutions LLC.

                                  SCHEDULE 6.7

                               PROPERTY COMPLIANCE

None.

                                  SCHEDULE 6.10

                                     PERMITS

None.

                                  SCHEDULE 6.17

                                   LITIGATION

None.

                                  SCHEDULE 6.26

                             AFFILIATE INDEBTEDNESS

Wellsford/Whitehall  Properties  II,  L.L.C.  ("WWPII") is liable under (i) that
certain  Guaranty and  Indemnity  Agreement,  dated as of July 16, 1999,  by and
between  WWPII  and IDS  Life  Insurance  Company  ("IDS"),  (ii)  that  certain
Hazardous  Materials  Indemnity  Agreement,  dated as of July __,  1999,  by and
between  WWPII and IDS and (iii)  that  certain  Guaranty,  dated as of July 16,
1999, by and between WWPII and Leonard Grebow, Steven J. Grebow, Marc G. Grebow,
Ronald S. Deutsch and Governor Warfield LLC, and (iii) that certain Contribution
Agreement,  dated as of June 27, 2001, by and among WWPII,  WWG, WP  Commercial,
Wellsford,   the  Whitehall  Parties,   Whitehall  Street  Real  Estate  Limited
Partnership VI, a Delaware  limited  partnership,  Whitehall  Street Real Estate
Limited  Partnership  VIII, a Delaware limited  partnership and Whitehall Street
Real Estate Limited Partnership XII, a Delaware limited partnership.

                                  SCHEDULE 6.27

                             CASH EQUITY INVESTMENT

 Cost Basis:
 ----------
 Cutler Lake Corp. Center                     $   31,931,021
 60 Turner St.                                     1,153,246
 24 Federal/3 P.O. Square                         33,747,429
 Gateway Tower                                    28,397,784
 300 Atrium                                       19,330,542
 400 Atrium                                       35,741,267
 500 Atrium                                       21,107,527
 700 Atrium                                       18,187,226
 Mountain Heights I & II                          47,284,567
 105 Challenger Rd.                               21,230,969
 Greenbrook Corp. Center                          25,549,069
 Campus Drive                                     23,309,418
 180/188 Mt. Airy Road                            16,255,373
 Chatham Executive Center                         10,897,604
 Garden St. Convention Center                      6,134,396
 1800 Valley Road                                  5,525,219
                                               -------------
 Subtotal                                      $ 345,782,657

 Less:
 ----
 GECC Loan                                      (282,000,000)

 Net Cash Equity                              $   63,782,657
                                               =============

                                  SCHEDULE 8.19

                           PROPERTY-SPECIFIC COVENANTS

1.   POST CLOSING  STRUCTURAL  REPAIRS.  Within six (6) months after the Closing
     Date  (except as set forth below for the Nomura  Properties  and except for
     the repairs  identified with two asterisks (**), as to which different time
     periods  shall  apply),  Borrower  shall have  completed,  Lien-free and in
     accordance  with  applicable  Laws, the repairs  described in the table set
     forth  below  for  the   designated   Properties  (as  such  work  is  more
     particularly  described  in the  engineering  reports  for such  Properties
     prepared by Lender's consultant(s) in connection with the Loan closing):

<TABLE>
<CAPTION>

                     PROPERTY                                STRUCTURAL REPAIRS                     ESTIMATED COST

<S>                                <C>                                                         <C>
60 Turner Street                   -  Roof covering, built-up system (active leak              $      6,300
                                              repairs)
                                   -  Repair tread damage to main entry stair and              $      1,800
                                              adjacent retaining wall
   TOTAL                                                                                       $      8,100
24 Federal/3 P.O. Square           -  Existing built-up roof system requires immediate         $     24,000
                                              replacement (Bldg. A)
                                   -  Install sump pump in basement to address dampness        $      1,500
                                              and history of slow groundwater
                                              infiltration (Bldg. A)
                                   -  Repair existing built-up roof system (Bldg. B)           $     22,000
                                   -  Replace main electrical switchgear (Bldg. B)**           $     71,500
   TOTAL                                                                                       $    119,000
Gateway Tower                      -  Provide waterproofing Sealcoat over all floors of        $     64,680
                                              concrete parking structure
                                   -  Repair/replace concrete post-tension cables              $    400,000
                                              within parking garage and repair surface
                                              cracks and delamination ("GARAGE REPAIRS")
                                   -  Complete the base building renovations under the         $  1,400,000
                                              contract dated 6/30/00 with Riparius
                                              Construction ("BASE BUILDING RENOVATION")
   TOTAL                                                                                       $  1,864,680
300 Atrium                         -  Earthwork, grading & erosion control at retention        $      2,000
                                              pond
                                   -  Asphalt repair (cut & patch, full depth)                 $      5,000
                                   -  Asphalt overlay repairs**                                $     24,000
                                   -  Exterior walls, painting & coating                       $      1,500
   TOTAL                                                                                       $     32,500
400 Atrium                         -  Earthwork, grading & erosion control around              $      2,000
                                      retention pool
                                   -  Sidewalk, stone paver repair                             $      2,000
                                   -  Exterior doors, full glass (north side entrance)         $        500
                                   -  Exterior doors, revolving (north side entrance)          $      2,500
                                   -  ADA compliance items                                     $      2,250
   TOTAL                                                                                       $      9,250
500 Atrium                         -  Asphalt repair (cut and patch, full depth)               $      5,750
                                   -  Asphalt overlay repairs**                                $     42,000
                                   -  Emergency generator (recommission)                       $      2.000
                                   -  ADA compliance items                                     $      2,050
   TOTAL                                                                                       $     51,800
700 Atrium                         -  Asphalt repair (cut and patch, full depth)               $     16,250
                                   -  Asphalt overlay**                                        $     60,000
                                   -  Sidewalk, stone paver repairs                            $      2,000
                                   -  ADA compliance items                                     $      1,200
   TOTAL                                                                                       $     79,450
Mountain Heights II                -  Exterior wall, caulking & sealants                       $     75,000
   TOTAL                                                                                       $     75,000
105 Challenger Road                -  Sealcoat upper parking garage deck                       $      6,200
   TOTAL                                                                                       $      6,200
Campus Drive                       -  ADA compliance items                                     $      1,200
   TOTAL                                                                                       $      1,200
Wells Research Center*             -  Exterior walls, masonry cleaning                         $      4,000
                                   -  ADA compliance items                                     $      1,010
   TOTAL                                                                                       $      5,010
7/57 Wells Avenue*                 -  Exterior walls, masonry cleaning                         $      2,000
                                   -  Repair metal screen wall on roof                         $      1,000
                                   -  ADA compliance items                                     $      2,450
   TOTAL                                                                                       $      5,450
Dedham Place*                      -  Repair spalling concrete on parking garage deck          $      1,000
                                   -  Repair damaged fireproofing on steel in garage           $      4,000
                                   -  Repair damaged skylight                                  $        500
                                   -  ADA compliance items                                     $      1,810
   TOTAL                                                                                       $      7,310
333 Elm Street*                    -  ADA compliance items                                     $      1,270
   TOTAL                                                                                       $      1,270
128 Tech Center*                   -  Replace Tower patio membrane roofing                     $     18,750
                                   -  Tower roof patio tiles (failed)                          $     45,000
   TOTAL                                                                                       $     63,750

</TABLE>

*    Nomura  Property.  As a  condition  to the first  Advance  from the  Nomura
     Holdback, Borrower shall deliver to Lender reasonably satisfactory evidence
     that the Nomura  Borrower has completed  the listed  repairs for the Nomura
     Properties prior to the date of the first Advance from the Nomura Holdback.
**   Borrower shall have 12 months to complete these repairs.

2.   POST CLOSING REMEDIAL ACTION.  Borrower shall complete (or cause the Nomura
     Borrower to complete) the Remedial Action  described in the table set forth
     below  for the  designated  Properties,  which  Remedial  Action  shall  be
     completed Lien-free, in accordance with all applicable  Environmental Laws,
     and within the applicable time period (if any) set forth below.

<TABLE>
<CAPTION>

    PROPERTY                                  REMEDIAL ACTION                      COMPLETION DATE

<S>                         <C>                                                          <C>
60 Turner Street            Borrower acknowledges that asbestos-containing               N/A
24 Federal/3 P.O. Square    materials and lead-based paint have been identified
Mountain Heights I & II     at each of these Properties.  Within 45 days after
Chatham Executive Center    the Closing Date, Borrower shall establish its
                            standard  operations and maintenance
                            program at each of these  Properties
                            for the removal,  encapsulation  of,
                            or   other   action   for   handling
                            asbestos-containing   materials  and
                            lead-based     paint     at    these
                            Properties,  and thereafter Borrower
                            shall,  or  shall  cause  the  Asset
                            Manager  to,  continue to manage and
                            otherwise  operate these  Properties
                            in a manner which conforms to and is
                            otherwise   consistent   with   such
                            operations and maintenance  programs
                            and applicable  Environmental  Laws.
                            Among other things,  Borrower  shall
                            promptly     abate    any    damaged
                            asbestos-containing   materials   or
                            items containing  lead-based  paint.
                            Sampling and abatement are necessary
                            before  any  renovations  that  will
                            disturb                    suspected
                            asbestos-containing materials and/or
                            potential lead-base paint.

60 Turner Street            Borrower shall maintain, handle and
                            dispose of N/A  Mountain Heights I & II
                            flourescent light ballasts in accordance
                            with (420 Mountain Avenue) applicable Toxic
                            Substances Control Act regulations.

60 Turner Street            Install air venting system to ensure that radon        90 days after
                            concentration in lowest building level (I.E.,          Closing Date
                            classrooms and theater) remains consistently below
                            4 pCi/l (picocuries per liter).

                            Borrower  to  provide   Lender  with
                            reasonably     60  days
                            after satisfactory evidence that the
                            out-of-service     Closing
                            Date    generator   and   associated
                            above-ground  propane  storage  tank
                            have been  removed from the Property
                            and disposed of.

Cutler Lake Corp. Center    Borrower to provide Lender with reasonably             180 days after
                            satisfactory evidence that it has made commercially    Closing Date
                            reasonable efforts to obtain an indemnity from Coca
                            Cola Corporation with respect to groundwater
                            contamination originating from an upgradient
                            property owned and/or occupied by Coca Cola
                            Corporation.

400 Atrium                  Borrower shall cause its Lender-approved consultant    45 days after
                            to complete a Phase II environmental study of the      Closing Date
                            portion of the Property in the vicinity of the         (complete
                            active 3,500-gallon underground storage tank           Ph. II); 90 days
                            currently located at the Property, which Phase II      after Closing
                            study shall be sufficient in scope to identify the     Date
                            extent of any subsurface contamination associated      (remediation);
                            with such underground storage tank.  Borrower shall    12 mos. after
                            cause such consultant to remediate such                Closing Date
                            contamination to applicable legal standards, and       (closure letter)
                            Borrower shall obtain a "closure" or "no further
                            action" letter from the lead Governmental Authority
                            having jurisdiction over the Remedial Action and the
                            Property.

180/188 Mount Airy Rd.      Borrower shall cause its Lender-approved consultant    45 days after
                            to conduct additional investigation of the area of     Closing Date
                            the Property in the vicinity of the former location    (study); 90 mos.
                            of three underground storage tanks.  The scope of      after Closing
                            such investigation shall be reasonably satisfactory    date
                            to Lender.  Borrower shall cause such consultant to    (remediation);
                            remediate any contamination identified to applicable   12 mos. after
                            legal standards, and Borrower shall obtain a           Closing date
                            "closure" or "no further action" letter from the       (closure letter)
                            lead Governmental Authority having jurisdiction over
                            the Remedial Action and the Property.

Garden State Convention Center Borrower acknowledges that asbestos-containing                 N/A
                               materials and lead-based paint have been identified
                               at this Property.  Within 45 days after the Closing
                               Date, Borrower shall establish its standard
                               operations and maintenance program for the removal,
                               encapsulation of, or other action for handling
                               asbestos-containing materials and lead-based paint
                               at this Property, and thereafter Borrower shall, or
                               shall cause the Asset Manager to, continue to manage
                               and otherwise operate this Property in a manner
                               which conforms to and is otherwise consistent with
                               such operations and maintenance program and
                               applicable Environmental Laws.  Among other things,
                               Borrower shall promptly abate any damaged
                               asbestos-containing materials or items containing
                               lead-based paint.  Sampling and abatement are
                               necessary before any renovations that will disturb
                               suspected asbestos-containing materials and/or
                               potential lead-base paint.

Wells Research Center          Borrower  shall provide  Lender with
                               reasonably      *
                               satisfactory   evidence   that   the
                               hydraulic   oil  release   near  the
                               electric  generator  at the Property

     *   Nomura  Property.  As a condition to the first  Advance from the Nomura
         Holdback,  Borrower  shall  deliver to Lender  reasonably  satisfactory
         evidence   that  the  Nomura   Borrower   has   completed   the  listed
         environmental  work for the  Nomura  Property  prior to the date of the
         first Advance from the Nomura Holdback.

</TABLE>

3.   TERMINATION  OF MASTER  LEASING AND OPTION  AGREEMENT  AT  CHALLENGER  ROAD
     PROPERTY.  Borrower shall use commercially reasonably efforts to obtain, as
     soon as possible following the Closing Date, from the Village of Ridgefield
     Park (as the ground  lessor  under the  Challenger  Road Ground  Lease),  a
     document to be  recorded  in the  Official  Records of Bergen  County,  New
     Jersey,  which will establish of record (to the reasonable  satisfaction of
     Title  Company and  Lender)  that the Master  Leasing and Option  Agreement
     dated as of June 30, 1981,  between such ground  lessor and Hartz  Mountain
     Industries,  Inc, a New York  corporation,  as evidenced by a Memorandum of
     Master Leasing and Option  Agreement  recorded in Deed Book 6890, page 355,
     in the Official Records of Bergen County,  New Jersey,  as amended to date,
     no longer encumbers or has any effect on the Challenger Road Property. Upon
     recordation of such document, Borrower shall obtain from the Title Company,
     at  Borrower's  expense,  an  endorsement  to Lender's  Title  Policy which
     insures  that  the  Master  Leasing  and  Option   Agreement  (and  related
     Memorandum)  no  longer  constitute  a Lien  against  the  Challenger  Road
     Property.

4.   SUBORDINATION, NONDISTURBANCE AND ATTORNMENT AGREEMENTS. Borrower shall use
     commercially reasonable efforts to obtain and deliver to Lender, as soon as
     reasonably   practical   after   the   Closing   Date,   a   Subordination,
     Nondisturbance  and  Attornment   Agreement   (substantially  in  the  form
     previously provided to Borrower by Lender) from the following tenants:  (a)
     AT&T at 500  Atrium;  (b)  Information  Resource  at  Greenbrook  Corporate
     Center;  (c) Siemens Info & Comm at Mountain Heights I; (d) Avaya,  Inc. at
     180/188 Mount Airy Road, (e) AT&T at 379-399  Campus Drive;  and (f) Lucent
     Technologies at 24 Federal/3 P.O. Square.

5.   ACCESS  EASEMENT FOR 60 TURNER STREET  PROPERTY.  Within 180 days after the
     Closing Date,  Borrower  shall (a) obtain and record for the benefit of the
     "60 Turner  Street"  Property  (described  in Exhibit  "D-3") a  perpetual,
     unconditional easement for vehicular and pedestrian ingress and egress over
     the driveway  which  connects the northwest  corner of the 60 Turner Street
     Property to Turner Street,  which driveway is located on adjacent  property
     owned by Borrower and/or  Affiliates of the Borrower (the document granting
     such easement shall be subject to Lender's prior review and approval);  (b)
     obtain  such   endorsements  to  Lender's  Title  Policy  as  Lender  shall
     reasonably require insuring that the Property includes such easement,  that
     such easement provides the Property with access to and from a public street
     known as Turner Street,  and that the Deed of Trust encumbers such easement
     as a  first-position  lien  thereon,  subject to no other  Liens other than
     Permitted  Encumbrances  (and if necessary to obtain such title  insurance,
     Borrower shall execute such amendments to the Deed of Trust as are required
     by the Title Company as a condition to issuing such endorsements);  and (c)
     deliver a  revised  survey  covering  the 60 Turner  Street  Property  (and
     revised survey endorsement to the Title Policy), which survey shall add the
     easement as an additional parcel depicted thereon.

6.   FINAL  SURVEYS  FOR 400  ATRIUM AND 1800  VALLEY  ROAD  PROPERTIES.  Within
     fourteen (14) days after the Closing Date, Borrower shall have delivered to
     Lender final surveys  (conforming  to the  requirements  of paragraph 24 in
     Part A of  Schedule  2.1) for the  "400  Atrium"  and  "1800  Valley  Road"
     Properties,  which surveys shall be in conformance with the pro forma title
     insurance  policies  approved  by Lender with  respect to these  Properties
     prior to the Closing Date (and in substantial conformance, as determined by
     Lender,  with  Lender's  written  comments  to the draft  surveys  for such
     Properties delivered prior to Closing, as determined), without any material
     new items (not  reflected on the draft surveys  reviewed by Lender prior to
     the Closing Date) shown.

                                 SCHEDULE 11.23

                             AUTHORIZED SIGNATORIES

1.   Authorized Signatories of WP Commercial:

               NAME                                 TITLE

        Ronald L. Bernstein                  Authorized Signatory
------------------------------------------------------------------------
        Richard L. Previdi                   Authorized Signatory
------------------------------------------------------------------------
           Alan S. Kava                      Authorized Signatory
------------------------------------------------------------------------

                                   EXHIBIT "A"

                                     FORM OF
                          NOTICE OF ADDITIONAL ADVANCE

Date:

General Electric Capital Corporation

Attention:  Region Operations Manager

Gentlemen:

     The undersigned,  Wellsford/Whitehall  Holdings, L.L.C., refers to the Loan
Agreement,  dated as of June 25, 2001 (the "Loan  Agreement",  the terms defined
therein  being used  herein as therein  defined),  between the  undersigned  and
GENERAL ELECTRIC CAPITAL CORPORATION,  and hereby gives you notice, irrevocably,
pursuant to the Loan Agreement,  that the undersigned hereby requests an Advance
under  the  Loan  Agreement,  and  in  that  connection  sets  forth  below  the
information relating to such Advance as required by the Loan Agreement:

     The date of the requested Advance shall be __________, 200__.

     The aggregate amount of the requested Advance is $__________.

     The Advance  shall be [A "WORKING  CAPITAL"  ADVANCE]  [AN ADVANCE FROM THE
____________   HOLDBACK],   and  shall  be  used  for  the  following  purposes:

--------------------------------------------------------------------------
---------------------------------------------------------------------------.

     The  undersigned  hereby  certifies  that (a) the  statements  contained in
paragraph 4 of Part B of Schedule 2.1 of the Loan Agreement are true on the date
hereof, and will be true on the date of the requested Advance,  before and after
giving effect  thereto and to the  application  of the proceeds  therefrom,  (b)
there  have  been no  additional  building  improvements,  and no  expansion  of
existing building improvements,  at any Property,  except as previously approved
by Lender or otherwise  permitted under the Loan  Agreement,  and (c) there have
been no other changes,  alterations or  improvements to any Property which would
cause a Material Adverse Effect with respect to such Property.  Attached are all
invoices and documents required by the applicable  provisions of Schedule 2.1 to
the Loan Agreement and the amended Collateral Documents referred to in Part B of
Schedule 2.1 of the Loan Agreement.

     Very truly yours,

ELLSFORD/WHITEHALL  HOLDINGS,  L.L.C.,  a Delaware  limited liability
ompany

y:   Wellsford/Whitehall  Properties II,  L.L.C.,  a Delaware limited
     liability company, its managing member

     By:  Wellsford/Whitehall   Group,  L.L.C.,  a  Delaware  limited
          liability company, its sole member

          By:    WP   Commercial,    L.L.C.,   a   Delaware   limited
                 liability company, its manager

                 By:  ____________________________
                      Name:    ______________________
                      Title:   ______________________

                                   EXHIBIT "B"

                                     FORM OF

                            DEPOSIT ACCOUNT AGREEMENT

______________, 2001

General Electric Capital Corporation
c/o GE Capital Realty Group, Inc.
Two Bent Tree Tower
16479 Dallas Parkway, Suite 600
Addison, Texas  75001-2512
Attention:  Ms. Bonni K. Gibson

Re:  Deposit Account - Wellsford/Whitehall Holdings, L.L.C. ("CUSTOMER")

Ladies and Gentlemen:

     At the request and instruction of Customer, we confirm to you that Customer
maintains with us at our offices at  _________________________,  ______________,
New    York,    an    Account    No.     ___________     in    the    name    of
"___________________________________________"  (the "DEPOSIT ACCOUNT"). Customer
may not make  any  withdrawals  from  this  Deposit  Account,  except  as may be
provided below.  The aggregate amount on deposit in the Deposit Account shall be
referred to as the "DEPOSITS".

     In addition we acknowledge and agree as follows:

     (1) Customer has notified us that it has pledged and assigned its rights in
the Deposit  Account  and the  Deposits  to Lender as  security  for  Customer's
obligations  under that certain Loan Agreement between Lender and Customer dated
June ___, 2001.

     (2) The Deposit  Account has been  established  and will be  maintained  to
allow  withdrawals  by  Customer  alone  until  one  business  day after we have
received notice (in accordance  with the notice  provision set forth below) from
Lender that an Event of Default has  occurred  with  respect to the  obligations
secured by the Account, after which withdrawals may be made only by Lender or as
Lender expressly  instructs us in writing.  We will be fully protected in acting
on any  instructions  signed by the Lender regarding the Deposit Account without
making  any  inquiry  as  to  the  Lender's  right  or  authority  to  give  the
instructions or as to the application of any payment made pursuant thereto,  and
any payment of all or part of the Deposit Account made to the Lender or pursuant
to  instructions  received on Lender's  letterhead will satisfy any liability we
have to the  Lender,  and  relieve us of all  liability  to the  Customer,  with
respect to such payment.

     (3) We retain  the right to debit the  Deposit  Account at any time for (i)
the amount of any  overdraft in the Account,  (ii) the amount of any  electronic
credit or paper item deposited to the Deposit Account and subsequently  reversed
or returned  for any reason,  and (iii) the amount of all service fees and other
charges  associated  with the  Deposit  Account  (collectively,  the  "PERMITTED
DEBITS").  If we are  unable  to debit the  Deposit  Account  of if the  Deposit
Account contains  insufficient  available  balances at the time of any attempted
Permitted Debit, Customer agrees to promptly reimburse us for the face amount of
the Permitted Debit.

     (4) This  agreement  shall be  effective  upon our receipt of an  original,
executed counterpart of this agreement.

     We hereby  confirm to you that we have not received any notice of any other
lien,  pledge,  charge assignment,  attachment,  claim or other encumbrance with
respect  to  Customer's  rights in the  Deposit  Account  or the  Deposits.  Our
responsibilities  under this  agreement  pertain to the Deposit  Account and all
funds on deposit in the Deposit  Account.  We do not  represent  or warrant that
Lender's lien is valid or enforceable.

     In  furtherance  of the pledge and  assignment of Customer's  rights in the
Deposit  Account and the  Deposits in your favor,  we agree that we will execute
such  further  documents  as you may  reasonably  request  at your sole cost and
expense with respect to such pledge and  assignment.  Lender's rights under this
agreement may be assigned only if the assignee  agrees to assume all obligations
of the assignor.

     By its signature  below,  Customer agrees to indemnify and hold us harmless
from and against  all claims,  expenses,  liabilities  or damages  that we shall
incur or suffer by reason of our entry into or  performance  of this  agreement,
except for the undersigned's  failure to exercise  reasonable care in accordance
with such practices as depository institutions would follow in the normal course
of their  business with respect to this  agreement and Deposit  Account.  To the
maximum  extent   permitted  by  law  we  will  not  be  liable  for  events  or
circumstances  beyond our reasonable  control. IN NO EVENT WILL WE BE LIABLE FOR
ANY INDIRECT DAMAGES,  LOST PROFITS,  SPECIAL PUNITIVE OR CONSEQUENTIAL  DAMAGES
WHICH  ARISE OUT OF OR IN  CONNECTION  WITH THE  SERVICES  CONTEMPLATED  BY THIS
AGREEMENT WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE (WHETHER OR NOT WE WERE
ADVISED OF THE  POSSIBILITY  OF SUCH LOSSES OR DAMAGES.) The  provisions of this
paragraph will survive termination of this agreement.

     Customer's  tax  identification   number  for  tax  reporting  purposes  is
13-3962862, and Customer agrees that it shall treat all income, gains and losses
from amounts in the Deposit  Account as its income or loss for Federal and State
income tax purposes.

     Nothing  in  this  agreement  requires  that  we  act in  violation  of any
applicable laws, any court order, or the instructions of any bankruptcy trustee.

     Notices may be delivered by certified mail, return receipt requested, or by
overnight or local delivery  courier.  All notices provided under this agreement
will be  effective  when  actually  received  by the  addressee,  except for fax
notices, which are effective when the addressee  telephonically confirms receipt
to the sender. Notices to Bank and Lender must be addressed as follows:

                  If to Bank:

Attention:  ______________________
Telephone No.:  __________________
Facsimile No.:  ___________________

                  with a copy to:

Attention:  ______________________
Telephone No.:  __________________
Facsimile No.:  ___________________

                  If to Lender:

General Electric Capital Corporation
c/o GE Capital Realty Group, Inc.
Two Bent Tree Tower
16479 Dallas Parkway, Suite 600
Addison, Texas  75001-2512
Attention:  Ms. Bonni K. Gibson
Telephone No.:  (972) 447-2613
Facsimile No.:  (972) 447-2667

                  with a copy to:

General Electric Capital Corporation
292 Long Ridge Road
Stamford, Connecticut  06927
Attention:  Kevin L. Korsh, Esquire
Telephone No.:  (203) 357-4725
Facsimile No.:  (203) 357-6768

     This agreement  represents the final agreement  between the parties and may
not be  contradicted by evidence of prior,  contemporaneous,  or subsequent oral
agreements of the parties.  We are not bound by any provisions  contained in any
other document  executed between the Customer and the Lender and to which we are
not a party, even if we have been provided with a copy of that document.

     None of the provisions in this agreement  limits our rights under any other
agreement between us and the Lender,  including any  participation  agreement or
participation  certificate.  If we  participate  in the  loan  facility  between
Customer and Lender,  nothing in this  agreement will limit our right to receive
our pro-rata share of any amounts to which we are entitled.

     This letter  agreement  shall  remain in full force and effect until (a) we
have received notice from you that this agreement has been terminated, or (b) 30
days after you have received  written notice from us that we are terminating our
obligations under this agreement. Additionally, we may terminate with 5 business
days prior written  notice if either of you or the Customer fails to comply with
this agreement.

     Except as modified by this  agreement,  the Deposit Account remains subject
to our Terms and  Conditions  of  Deposit  Accounts,  and,  if  applicable,  our
Treasury Solutions Service Agreement, however, we agree that except as otherwise
provided in this agreement,  we shall have no right of set-off against any funds
in the Deposit Account and hereby waive any such rights, until this agreement is
terminated.

     This agreement which relates solely to our duties shall be governed by, and
construed in accordance with, the laws of the State of New York.

       Very truly yours,

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

       By:    ___________________________________________
              Name:    _____________________________________
              Title:   _____________________________________

ACKNOWLEDGED AND AGREED:

WELLSFORD/WHITEHALL   HOLDINGS,   L.L.C.,   a Delaware  limited  liability
company

By:   Wellsford/Whitehall   Properties II,   L.L.C.,  a  Delaware  limited
      liability company, its managing member

      By:   Wellsford/Whitehall   Group,   L.L.C.,   a  Delaware   limited
            liability company, its sole member

            By:   WP  Commercial,  L.L.C.,  a Delaware  limited  liability
                  company, its manager

                  By:   _____________________________
                        Name:    _______________________
                        Time:    _______________________

GENERAL ELECTRIC CAPITAL CORPORATION, a New York corporation

By:   _________________________________________
      Name:    ___________________________________
      Title:   ___________________________________

                                   EXHIBIT "C"

                                     FORM OF

              COLLATERAL ASSIGNMENT OF INTEREST RATE CAP AGREEMENT

                                   [Attached]

                                  EXHIBIT "D-1"

                              PROPERTY DESCRIPTION
                              --------------------
                           (Cutler Lake Corp. Center)

That  certain  real  property  situated  in  Norfolk  County,   Commonwealth  of
Massachusetts, described as follows:

Said parcel is shown as lot numbered 3 upon plan numbered 29185A, which is filed
in Norfolk Registry District with Certificate No. 72051,  Sheet 1, Book 361, the
same being compiled from a plan drawn by Cheney  Engineering Co. dated March 16,
1959,  October  27,  1959,  July  1962 and  additional  data on file in the Land
Registration office, all as modified and approved by the Land Court.  (Excepting
fee in Kendrick Street.)

Also  another  certain  parcel of land  situate in said  NEEDHAM,  described  as
follows:

Said parcel is shown as lot  numbered  20 upon plan  numbered  24606A,  which is
filed in Norfolk  Registry  District with  Certificate No. 56443,  Sheet 5, Book
283,  the same being  compiled  from a plan drawn by William S.  Crocker,  Civil
Engineer,  dated  September  11, 1953,  November 30, 1953,  September  25, 1953,
October 28, 1953,  February 2, 1954,  February 8, 1954, March 10, 1954, November
29,  1954  and  September  1,  1955  and  additional  data on  file in the  Land
Registration office, all as modified and approved by the Land Court.  (Excepting
fee in Kendrick Street.)

                                  EXHIBIT "D-2"

                              PROPERTY DESCRIPTION
                              --------------------
                            (Shattuck Office Center)

That certain  real  property  situated in the Town of Andover,  County of Essex,
State of Massachusetts, described as follows:

                                  EXHIBIT "D-3"

                              PROPERTY DESCRIPTION
                              --------------------
                               (60 Turner Street)

That  certain  real  property  situated in  Middlesex  County,  Commonwealth  of
Massachusetts, described as follows:

The land with the improvements  thereon situated on the southerly side of Turner
Street and the  northeasterly  side of  Hartwell  Street in  Waltham,  Middlesex
County, Massachusetts,  as shown on a plan entitled "Plan of Land Waltham Mass."
dated September 30, 1980, by Harry R. Feldman, Inc., and recorded with Middlesex
South  District  Registry  of  Deeds as Plan No.  1286 of 1980,  the land  being
bounded and described according to the plan as follows:

NORTHERLY:      by Turner Street, 120 feet;
EASTERLY:       by land now or formerly of Corrall, 103 feet;
SOUTHERLY:      by land now or formerly of Govoni, 28.35 feet;
EASTERLY:       by the Govoni land, 52.66 feet;
SOUTHWESTERLY:  by Hartwell Street, 100.53 feet;
WESTERLY:       by land now or formerly of United Wood Heel Co., 62.10 feet;
NORTHWESTERLY:  by land now or formerly of White Pigment Corp., 40.86 feet; and
WESTERLY:       by the White Pigment land, 20.83 feet.

Together with the benefit of a Declaration  of Easement by WEL/WH 1275 K Street,
LLC, dated May 15, 1998, recorded with said Deeds, Book 28805, Page 199.

                                  EXHIBIT "D-4"

                              PROPERTY DESCRIPTION
                              --------------------
                           (24 Federal/3 P.O. Square)

That certain  real  property  located in the City of Boston,  County of Suffolk,
Commonwealth of Massachusetts, described as follows:

PARCEL 1

A certain parcel of land with the buildings thereon situated in Boston,  Suffolk
County,  Massachusetts,  and known and  numbered  as 14-24  Federal  Street  and
113-121  Congress  Street,  the  same  being  shown  on "Plan of Land in Ward 5,
Boston"  dated  October 11, 1920,  by Aspinwall & Lincoln  recorded with Suffolk
County Registry of Deeds in Book 4263, Page 615, and being bounded and described
as follows:

WESTERLY:         on said Federal Street, 81.57 feet;
NORTHERLY:        on land now or formerly of Cotting et al., Trustees, by a line
                  through the wall, 37.32 feet;
WESTERLY:         on the same, .64 of a foot;
NORTHERLY:        again on the same by a line through the wall, 28.47 feet;
EASTERLY:         on said Congress Street, 79.63 feet; and
SOUTHERLY:        by land now or formerly of Harold J. Coolidge et al, Trustees,
                  by a line  through the middle of a 20 inch wall, 75.97 feet.

Containing 5,616 square feet of land according to said Plan.

PARCEL 2

The land  with  the  buildings  thereon  situated  in  Boston,  Suffolk  County,
Massachusetts, bounded and described as follows:

NORTHERLY         by Milk Street, 57.36 feet;
EASTERLY          by Congress Street, 95.07 feet;
SOUTHERLY         by land now or formerly of Federal Street Building Trust, by a
                  line through a brick partition wall, 28.47 feet;
EASTERLY          by said land now or formerly of Federal Street Building Trust,
                  0.68 feet;
SOUTHERLY         by said land now or formerly of Federal Street Building Trust,
                  by a line through a brick partition wall, 37.32 feet; and
WESTERLY          by Federal Street, 92.83 feet.

                                  EXHIBIT "D-5"

                              PROPERTY DESCRIPTION

                                 (Gateway Tower)

That certain real property in Montgomery County, State of Maryland, described as
follows:

BEING KNOWN AND  DESIGNATED  as Lot Numbered 11, as depicted on a Plat  entitled
"MARYLAND NATIONAL BANK PROPERTY CITY CENTER",  which Plat is recorded among the
Land Records of Montgomery County, Maryland in Plat Book 89, as Plat No. 9588.

                                  EXHIBIT "D-6"

                              PROPERTY DESCRIPTION
                              --------------------
                                  (300 Atrium)

That  certain  real  property  located in the  Township of  Franklin,  County of
Somerset, State of New Jersey, described as follows:

ALL that certain plot,  piece or parcel of land, with buildings and improvements
thereon erected, situate, lying and being in the Township of Franklin, County of
Somerset, and State of New Jersey, being described as follows:

BEING  known as Block  468.01,  Lot  21.03 as shown on a map  entitled  "Amended
Section One of the Atrium at  Somerset"  filed in the  Somerset  County  Clerk's
Office on June 4, 1982 as Map No. 1963. Being further  described as Beginning at
a point  being the  following  two  courses  and  distances  from a point in the
southeasterly  sideline  of  Davidson  Avenue,  66 feet in  width,  where  it is
intersected by the northeasterly line of the whole tract of which this is a part
and the  southwesterly  line of the lands  now or  formerly  of Lester M.  Entin
Associates:  (a)  along  said line of Entin  Associates  on a course of South 42
degrees 30 minutes 34 seconds East a distance of 550.81 feet to a point;  (b) in
a  southeasterly  direction along a curve to the right having a radius of 221.20
feet an arc  distance  of  10.35  feet to a point  being  the  point or place of
Beginning, and running thence,

1.   On a  southerly  direction  along a curve to the  right  having a radius of
     221.20 feet an arc distance of 213.97 feet to a point; thence

2.   On a course of South 16 degrees 35  minutes 40 seconds  West a distance  of
     265.27 feet to a point; thence

3.   In a  southerly  direction  along a curve  to the left  having a radius  of
     100.00 feet an arc distance of 157.08 feet to a point; thence

4.   On a course of South 73 degrees 24  minutes 20 seconds  East a distance  of
     139.30 feet to a point; thence

5.   In a  southeasterly  direction along a curve to the left having a radius of
     250.00 feet an arc distance of 59.25 feet to a point; thence

6.   On a course of South 3 degrees 00 minutes  57  seconds  West a distance  of
     60.00 feet to a point; thence

7.   In a  southerly  direction  along a curve to the  right  having a radius of
     35.00 feet an arc distance of 48.34 feet to a point; thence

8.   On a course of South 7 degrees 50 minutes  38  seconds  East a distance  of
     7.40 feet to a point; thence

9.   In a southwesterly  direction along a curve to the right having a radius of
     195.00 feet an arc distance of 192.08 feet to a point; thence

10.  On a course of South 48 degrees 35  minutes 40 seconds  West a distance  of
     324.59 feet to a point in the outside line of the whole tract of which this
     is a part  being  a  common  corner  from  the  lands  now or  formerly  of
     Distribution Engineering Company, Inc; thence

11.  Along said line of Distribution  Engineering  Company,  Inc. on a course of
     North 38 degrees 29 minutes 34 seconds  West a distance of 801.83 feet to a
     point; thence

12.  On a course of North 48 degrees 35  minutes 40 seconds  East a distance  of
     737.43 feet to a point being the point or place of BEGINNING.

Together with all those appurtenant easements, rights and other benefits created
by and described in that certain  Declaration of Easements  dated April 15, 1982
by S/A Associates and recorded in Deed Book 1457, page 828 on April 20, 1982, as
amended by Amendment  to  Declaration  of Easements  dated April 15, 1983 by S/A
Associates and recorded in Deed Book 1488, page 315 on September 16, 1983.

Together with the rights of ingress and egress to and from Davidson  Avenue over
the private Street as shown on the Filed Map "Amended Section 1 of the Atrium at
Somerset" Map #1963 and as described in the Declaration of Easement  recorded in
Deed Book 1457, page 828.

FOR INFORMATIONAL PURPOSES ONLY:
"In compliance  with Chapter 157, Laws of 1977,  premises herein is Lot 21.03 in
Block 468.01 on the Tax Map of the Township of Franklin,  County of Union, State
of New Jersey."

                                  EXHIBIT "D-7"

                              PROPERTY DESCRIPTION
                              --------------------
                                  (400 Atrium)

That certain  real  property  situated in the  Township of  Franklin,  County of
Somerset, State of New Jersey, described as follows:

                                  EXHIBIT "D-8"

                              PROPERTY DESCRIPTION
                              --------------------
                                  (500 Atrium)

That  certain  real  property  located in the  Township of  Franklin,  County of
Somerset, State of New Jersey, described as follows:

All that certain plot,  piece or parcel of land, with buildings and improvements
thereon erected, situate, lying and being in the Township of Franklin, County of
Somerset and State of new Jersey being described as follows:

BEING  KNOWN  AND  DESIGNATED  as Lot  21.07 in Block  468.01  as set forth on a
certain map entitled,  "Amended Section Two of The Atrium at Somerset,  Township
of Franklin,  Somerset  County,  New Jersey" dated  October 5, 1982,  revised to
October 8, 1983 which map was filed in the Somerset County Clerk's Office as Map
Number 2067 on December 14, 1983.

BEGINNING at a point being the most westerly  corner of the whole tract of which
this is a part and corner of the lands of Worlds  Fair  Associates  and  running
thence:

1.   Along a line of the  whole  tract  of which  this is a part on a course  of
     North 48 degrees 49 minutes 16 seconds East a distance of 1102.72 feet to a
     point; thence

2.   Along  the  southwesterly  line of Lot  21.06 as shown on a map  referenced
     above on a course of South 40 degrees 51 minutes 00 second  East a distance
     of 319.66 feet to a point; thence

3.   Still along said  southwesterly  line in a southeasterly  direction along a
     curve to the left having a radius of 40 feet an arc  distance of 31.82 feet
     to a point; thence

4.   Still along said  southwesterly  line in a southeasterly  direction along a
     curve to the right having a radius of 60 feet an arc distance of 30.17 feet
     to a point; thence

5.   Along the  northwesterly  line of Lot 21.06 as shown on the map  referenced
     above on a course of South 48 degrees 44 minutes 36 seconds West a distance
     of 115.14 feet to a point; thence

6.   Along the  northwesterly  line of lot 21.08 as shown on the map  referenced
     above on a course of South 48 degrees 49 minutes 16 seconds West a distance
     of 1018.78  feet to a point in an outside  line of the whole tract of which
     this is a part; thence

7.   Along said outside  line and a line of the lands of Worlds Fair  Associates
     on a course of North 40 degrees 16  minutes 30 seconds  West a distance  of
     374.12 feet to a point, being the point and place of BEGINNING.

Together  with that  certain  Declaration  of  Easements  dated April 15,  1982,
recorded April 20, 1982 in Deed Book 1457,  page 828, as amended by Amendment to
Declaration of Easements  dated April 15, 1983,  recorded  September 16, 1983 in
Deed Book 1488, page 315.

Together with the  appurtenant  rights as set forth in a certain  Cross-Easement
Agreement recorded in Deed Book 2028, page 591.

Together  with the rights of ingress and egress to and from  Davidson  Avenue of
the Private Street as shown on the Filed Map "Amended  Section Two of the Atrium
at Somerset,  Township of Franklin,  Somerset County, New Jersey" Map #2067, and
as described in the  Declaration  of Easement  recorded in Deed Book 1457,  page
828.

FOR INFORMATIONAL PURPOSES ONLY:
"In compliance  with Chapter 157, Laws of 1977,  premises herein is Lot 21.07 in
Block  468.01 on the Tax Map of the  Township of  Franklin,  County of Somerset,
State of New Jersey."

                                  EXHIBIT "D-9"

                              PROPERTY DESCRIPTION
                              --------------------
                                  (700 Atrium)

That  certain  real  property  located in the  Township of  Franklin,  County of
Somerset, State of New Jersey, described as follows:

All that certain real property  known as Block  468.01,  Lot 21.08 as shown on a
map  entitled  "Amended  Section  Two of the  Atrium at  Somerset,  Township  of
Franklin,  somerset  County,  New Jersey" filed in the Somerset  County  Clerk's
Office December 14, 1983 as Map Number 2067. Being further described as follows:

Beginning at a point being the most  southwesterly  corner of the whole tract of
which this is a part and corner of lands of Worlds Fair  Associates  and running
thence

1.   Along the most  southwesterly  line of the whole  tract of which  this is a
     part on a course of North 40 degrees 16 minutes 30 seconds  West a distance
     of 375.94 feet to a point; thence

2.   Along the southerly line of Lot 21.07 as shown on the above  referenced map
     on a course of North 48 degrees 49  minutes 16 seconds  East a distance  of
     1018.78 feet to a point; thence

3.   Along the southwesterly  line of Lot 21.06 as shown on the above referenced
     map in a southerly  direction  along a curve to the left having a radius of
     60.00 feet and an arc distance of 79.54 feet to a point; thence

4.   Still along said line on a course of South 40 degrees 51 minutes 00 seconds
     East a distance of 308.94 feet to a point in the most southeasterly line of
     the whole tract of which this is a part; thence

5.   Along said southeasterly line on a course of South 48 degrees 54 minutes 40
     seconds West a distance of 1050.23 feet to a point being the point or place
     of BEGINNING.

Together with all those appurtenant easements, rights and other benefits created
by and described in that certain  Declaration of Easements  dated April 15, 1982
by S/A Associates and recorded in Deed Book 1457, page 828 on April 20, 1982, as
amended by Amendment  to  Declaration  of Easements  dated April 15, 1983 by S/A
Associates and recorded in Deed Book 1488, page 315 on September 16, 1983.

Together with the rights of ingress and egress to and from Davidson  Avenue over
the private Street as shown on the Filed Map "Amended Section 1 of the Atrium at
Somerset" Map #1963 and as described in the Declaration of Easement  recorded in
Deed Book 1457, page 828.

FOR INFORMATIONAL PURPOSES ONLY:
"In compliance  with Chapter 157, Laws of 1977,  premises herein is Lot 21.08 in
Block  468.01 on the Tax Map of the  Township of  Franklin,  County of Somerset,
State of New Jersey."

                                 EXHIBIT "D-10"

                              PROPERTY DESCRIPTION

                            (Mountain Heights I & II)

That certain real property situated in the Township of Berkeley Heights,  County
of Union, State of New Jersey, described as follows:

                                 EXHIBIT "D-11"

                              PROPERTY DESCRIPTION

                              (105 Challenger Road)

That certain real property located in the Village of Ridgefield Park,  County of
Bergen, State of New Jersey, described as follows:

Beginning at a point in the easterly  line of Challenger  Boulevard  (60.00 feet
wide)  where  the same is  intersected  by the  division  line of  lands  now or
formerly  of the Bergen  County  Park  Commission  on the north and lands now or
formerly of the Village of Ridgefield Park on the south said point being located
the  following  bearings  and  distances  from the  intersection  formed  by the
aforesaid  easterly line of Challenger  Boulevard with the centerline of Emerson
Street produced easterly,  all as shown on plan entitled  "Subdivision Plat, Lot
1,  Block  24.02  prepared  for Hartz  Mountain  Development  Corp.,  Village of
Ridgefield Park, Bergen County,  N.J.", dated February 12, 1990, revised to June
18, 1990, and prepared by Azzolina & Feury Engineering  Company of Paramus,  New
Jersey.

1.   North 24  degrees  10  minutes  40  seconds  East,  213.00  feet  along the
     aforementioned  easterly  line  of  Challenger  Boulevard  to  a  point  of
     curvature; thence

2.   Northerly  on a curve to the left  having a radius of  1000.00  feet an arc
     length of 421.98 feet along the same to a point of tangency; thence

3.   Due north along the same, 175.98 feet to a point of curvature; thence

4.   Northeasterly  on a curve to the right having a radius of 960.00  feet,  an
     arc distance of 330.73 feet along the same to a point of tangency; thence

5.   North 19 degrees 44 minutes 21 seconds  East  966.21 feet along the same to
     the point and place of beginning, and running; thence

6.   South 73  degrees  41  minutes  52  seconds  East  542.83  feet  along  the
     aforementioned  division  line of lands to a point on the U.S.  Pierhead as
     Bulkhead Line; thence

7.   South 24 degrees 55 minutes 40 seconds West,  243.64 feet along the same to
     a point; thence

8.   North 73 degrees 41 minutes 52 seconds  West,  60.00 feet through  lands of
     the Village of Ridgefield Park to a point; thence

9.   South 24 degrees 55 minutes 40 seconds West, 170.00 feet to a point; thence

10.  North 70 degrees 15 minutes 39 seconds West,  444.55 feet to a point in the
     aforementioned easterly line of Challenger Boulevard; thence

11.  North 19 degrees 44 minutes 21 seconds  East,  383.00  feet to the point or
     place of beginning.

Above  description  being drawn in accordance with a survey prepared by Azzolina
Feury & Raimondi Engineering Group dated May 22, 2001.

Together with the easement and rights contained in the Reciprocal  Construction,
Operation  and  Easement  Agreement,  Hartz  Mountain  Industries,  Inc. for the
Overpeck  Corporate Park Development,  dated June 27, 1986, Book 7019, page 360,
Bergen County,  New Jersey Records,  as amended by First Amendment to Reciprocal
Construction,  Operation and Easement  Agreement for The Overpeck Corporate Park
Development, dated November 21, 1990, recorded in Book 7411, page 459, aforesaid
records  and by Second  Amendment  to  Reciprocal  Construction,  Operation  and
Easement  Agreement for The Overpeck Park Development,  dated September 8, 1992,
recorded in Book 7545, page 862, aforesaid records.

FOR INFORMATIONAL PURPOSES ONLY:
"In compliance  with Chapter 157, Laws of 1977,  premises  herein is Lot 4.01 in
Block 24.03 on the Tax Map of the Village of Ridgefield Park,  County of Bergen,
State of New Jersey."

                                 EXHIBIT "D-12"

                              PROPERTY DESCRIPTION

                          (Greenbrook Corporate Center)

That certain real property  located in the City of  Fairfield,  County of Essex,
State of New Jersey, described as follows:

All those certain tracts,  lots and parcels of land situate,  lying and being in
the Township of Fairfield,  County of Essex and State of New Jersey,  being more
particularly bounded and described as follows:

Parcel I:

     Beginning at a point in the easterly  line of Passaic  Avenue (80' right of
way),  said point being the  intersection of the easterly line of Passaic Avenue
with the line  dividing  Lot 8.01 Block 2101 as shown on a certain map  entitled
"Minor  Subdivision  of Lots 8 and 10 Block  2101",  situate in the  Township of
Fairfield,  County if Essex,  New Jersey,  Prepared by  G.C.Stewart  Associates,
Inc., dated October 31, 1985 and running; thence,

     14.  North 36 degrees 02 minutes  03 seconds  East,  362.28  feet along the
easterly  line of  Passaic  Avenue to a point in the  easterly  line of  Passaic
Avenue; thence,

     15.  South 53 degrees 57 minutes 57 seconds  East,  200.00 feet to a point;
thence

     16.  North 86 degrees 39 minutes 20 seconds  East,  773.89 feet to a point;
thence

     17. North 40 degrees 13 minutes 33 seconds East,  497.32 feet to a point in
the southerly line of West Greenbrook Road (49.5' right of way); thence

     18.  South 45 degrees 03 minutes  37 seconds  east,  145.54  feet along the
southerly line of West  Greenbrook Road to a point in the southerly line of West
Greenbrook Road; thence

     19.  South 37 degrees 09 minutes 43 seconds  West,  248.14 feet to a point;
thence

     20.  North 77 degrees 22  minutes 07 seconds  West,  16.49 feet to a point;
thence

     21. South 37 degrees 09 minutes 43 seconds West,  1,115.00 feet to a point;
thence

     22.  South 14 degrees 42 minutes 41 seconds  West,  247.57 feet to a point;
thence

     23.  South 74 degrees 30 minutes 56 seconds  West,  136.92 feet to a point;
thence

     24.  North 50 degrees 26 minutes 37 seconds  West,  492.82 feet to a point;
thence

     25.  North 39 degrees 33 minutes 23 seconds  East,  371.84 feet to a point;
thence

     26. North 56 degrees 29 minutes 57 seconds  West,  472.61 feet to the point
and place of beginning

Parcel II:

     Beginning at a point in the easterly  line of Passaic  Avenue(80'  right of
way),  said point of  beginning of  intersection  of the said  easterly  line of
Passaic  Avenue  with the  dividing  line of Lot 8.02 Block 2101 and Lot 9 Block
2101 as shown on a certain  map  entitled  "Minor  Subdivision  of Lots 8 and 10
Block 2101," situate in the Township of Fairfield,  County of Essex, New Jersey,
prepared by G.C.Stewart  Associates,  Inc., dated October 31, 1985, and running:
thence

     1. South 59 degrees 31  minutes 38 seconds  East,  811.52  feet to a point;
thence

     2. South 40 degrees 13  minutes  33  seconds  West,  130.00  feet to point;
thence

     3. South 86 degrees 39  minutes 20 seconds  West,  773.89  feet to a point;
thence

     4. North 53 degrees 57 minutes 57 seconds  West,  200.00 feet to a point in
the easterly line of Passaic Avenue; thence

     5. North 36 degrees 02  minutes  03  seconds  East,  542.00  feet along the
easterly line of Passaic Avenue to the point and Place of Beginning.

     Together  with an exclusive  easement of ingress and egress as described in
Easement in Deed Book 4929,  Page 156,  being more  particularly  describe ed as
follows:

     Beginning at a point lying in the division line between Lot 9 in Block 2101
(lying to the northwest) and Lot 10 in Block 2101 (lying in the southeast), said
point being distant  along the division line 292.32 feet measured  southwesterly
on a course of South 40 degrees 13  minutes 33 seconds  West from a point  where
the said division line  intersects the  southwesterly  right of Way line of West
Greenbrook  Road and running  from the  Beginning  point of the  hereindescribed
tract; thence

     1. South 40 degrees 13 minutes 33 seconds West along the aforesaid division
line between Lots 9 and 10 in Block 2101, 75.00 feet to a point; thence

     2. North 59 degrees 31  minutes 37 seconds  West along the  division  line,
95.00 feet to a point, thence

     3. North 86 degrees 00 minutes 43 seconds  East,  130.63  feet to the point
and place of Beginning.

     Together  with  all  easements  appurtenant  to  the  subject  property  as
contained in that certain Easement Agreement as set forth in Deed Book 4587 Page
948.

     This  description is in accordance  with a survey prepared by Glen Lloyd of
Schoor Depalma, Surveyors dated 1/22/97 and updated to 5/21/01.

FOR INFORMATIONAL PURPOSES ONLY:
"In compliance with Chapter 157, Laws of 1977, premises herein is Lot 8.01, 8.02
in Block  2101 on the Tax Map of the  Township  of  Fairfield,  County of Essex,
State of New Jersey."

                                 EXHIBIT "D-13"

                              PROPERTY DESCRIPTION
                              --------------------
                                 (Campus Drive)

That  certain  real  property  located in the  Township of  Franklin,  County of
Somerset, State of New Jersey, described as follows:

Tract I:

Beginning at a point in the easterly  sideline of Campus Drive, said point being
the common corner of the  southwesterly  corner of Lot 34.03 in Block 531, lands
of PMC, Inc. with the most southerly  corner of the herein described tract known
as Lot 8.01 on map entitled  "Minor  Subdivision  of Lands of Campus Drive LTD.,
Partnership,  Block  530.04  Lots 4, 5,  6,  7,  8, 9 & 10,  Franklin  Township,
Somerset County,  N.J.",  prepared by Pluymers,  Williamson & Associates,  Inc.,
Engineers,  Land Planners & Land  Surveyors  from said  beginning  point running
thence;

1.   Along the easterly side line of Campus Drive on a curve to the right,  said
     curve  having a radius of 324.59  feet,  an arc length of 116.72  feet to a
     point of tangency; thence

2.   Along the easterly  sideline of Campus Drive North 29 degrees 30 minutes 48
     seconds   West,  a  distance  of  671.89  feet  to  a  point   marking  the
     northwesterly corner of the herein described lot; thence

3.   Along  the  dividing  line of Lot  8.01 and Lot 4.01  North 60  degrees  29
     minutes 12 seconds East, 560.17 feet to a point in the westerly line of Lot
     1.01, Block 531, land of CP III Assoc.  said point being the  northeasterly
     corner of the herein described tract; thence

4.   Along the westerly line of Lots 1.01, 33, 32, 31, 30 and 34.03,  Block 531,
     South 04 degrees 56 minutes 39 seconds  West,  953.38 feet to the  easterly
     sideline of Campus Drive and the point and place of beginning.

The above  description  is in accordance  with a survey made by Daniel E. Yuhas,
P.L.S., dated August 1, 1998.

The above tract is designated as Lot 8.01 in Block 530.04 on map entitled "Minor
Subdivision of lands of Campus Drive LTD. Partnership,  Block 530.03, Lots 4, 5,
6, 7, 8, 9 & 10, Franklin Township, Somerset County, N.J." prepared by Pluymers,
Williamson & Associates, Inc., Engineers, Land Planners and Land Surveyors.

Together with the benefit of a 30-foot wide access  easement across adjacent Lot
4.01, more particularly described as follows:

Beginning  at a point in the  easterly  sideline  of Campus  Drive,  said  point
marking the terminus of the second course in the above  described  Tract I, from
said point running; thence

1.   Along the easterly sideline of Campus Drive, North 29 degrees 30 minutes 48
     seconds West, 30.00 feet to a point; thence

2.   Passing  through  Lot 4.01,  North 60 degrees  29 minutes 12 seconds  East,
     580.76 feet to a point in the westerly line of Lot 1.01,  Block 531,  lands
     of CP III Associates; thence

3.   Along lands of CP III Assoc.,  South 04 degrees 56 minutes 39 seconds West,
     36.39  feet to a point  marking  the  southeasterly  corner  of the  herein
     described easement as well as being the southeasterly corner of Lot 4.01 on
     the above referenced map; thence

4.   Along the  dividing  line of Lot 4.01 and Lot 8.01 on the above  referenced
     map, South 60 degrees 29 minutes 12 seconds West, 560.17 feet to a point in
     the easterly  sideline of Campus  Drive,  said point  marking the point and
     place of beginning.

Tract II:

Beginning  at a point  marked by an iron pipe,  where the  easterly  sideline of
Campus Drive is  intersected  by the southerly  line of Lot 2.03,  Block 530.04,
said lot  formerly  being known as Lot 2.01,  Block 530, as shown on Sheet 94 of
the Tax Map for Franklin Township, New Jersey; thence

1.   Easterly  along the  southerly  line of Lot 2.03,  Block  530.04,  South 84
     degrees 14 minutes 05 seconds  East,  a distance  of 417.78 feet to an iron
     pipe; thence

2.   Northerly  along the  easterly  line of Lot 2.03,  Block  530.04,  North 06
     degrees 41 minutes 35 seconds  East,  a distance of 126.95 feet to a point;
     thence

3.   South 84 degrees 19 minutes 14 seconds  East, a distance of 49.48 feet to a
     point on the westerly sideline of N.J.S.H. Route 287; thence

4.   Along the  westerly  sideline  of N.J.S.H.  Route 287,  South 09 degrees 22
     minutes 06 seconds East, a distance of 176.66 feet to a point; thence

5.   Along the  westerly  sideline  of N.J.S.H.  Route 287,  South 37 degrees 27
     minutes 35 seconds East, a distance of 235.24 feet to a point; thence

6.   Along the  westerly  sideline  of N.J.S.H.  Route 287,  North 87 degrees 29
     minutes 04 seconds East, a distance of 44.25 feet to a point; thence

7.   South 04 degrees 56 minutes 39 seconds West, 130.00 feet along the easterly
     line of Lot 4 to a point in the easterly  line of Lot 7, said point marking
     the southeasterly corner of the herein described Lot 4.01; thence

8.   Along the  dividing  line of Lot 8.01 and Lot  4.01,  South 60  degrees  29
     minutes 12 seconds West, 560.17 feet to a point in the easterly sideline of
     Campus Drive; thence

9.   Along the easterly sideline of Campus Drive, North 29 degrees 30 minutes 48
     seconds, West 306.39 feet to a point of curvature; thence

10.  Along the easterly line of Campus Drive on a curve to the right, said curve
     having a radius of 470.00 feet,  an arc length of 284.05 feet to a point of
     tangency to Campus Drive; thence

11.  Along the  easterly  line of Campus  Drive,  North 05 degrees 06 minutes 51
     seconds East, a distance of 145.93 feet to the point of beginning.

The above  description  is in accordance  with a survey made by Daniel E. Yuhas,
P.L.S. dated August 1, 1998.

The above tract is  designated  as Lot 4.01 in Block  530.04 on the map entitled
"Minor  Subdivision  of lands of Campus Drive LTD.,  Partnership,  Block 530.04,
Lots 4, 5, 6, 7, 8, 9 & 10, Franklin Township,  Somerset County, New Jersey" and
prepared by Pluymers, Williamson & Associates, Inc.

Together with the benefit of a 30-foot wide access  easement across adjacent Lot
8.01, more particularly described as follows:

Beginning  at a point in the  easterly  sideline  of Campus  Drive,  said  point
marking the terminus point of the second course in the above  described Tract I,
and from said point running; thence

1.   Along the  dividing  line of Lot 8.01,  Block  4.01,  North 60  degrees  29
     minutes 12 seconds East, 560.17 feet to a point in the westerly line of Lot
     1.01, Block 531, lands of CP III Assoc.; thence

2.   Along the westerly line of Lot 1.01, Block 531, South 04 degrees 56 minutes
     39 seconds West, 36.39 feet to a point; thence

3.   Passing  through  Lot 8.01,  South 60 degrees  29 minutes 12 seconds  West,
     539.59 feet to a point in the easterly sideline of Campus Drive; thence

4.   Along the easterly sideline of Campus Drive, North 29 degrees 30 minutes 48
     seconds West, 30.00 feet to the point and place of beginning.

Note:  Being also known as Lot 4.01 and Lot 6.01 in Block 530.04 on the official
Tax Map of Franklin Township.

Tract I and Tract II:  Being the same  property  conveyed to  Townsend  Property
Trust Limited  Partnership by Deed dated August 19, 1996 and recorded August 30,
1996 in Book 2076, page 298.

FOR INFORMATIONAL PURPOSES ONLY:
"In compliance  with Chapter 157, Laws of 1977,  premises herein is Lot 4.01 and
8.01 in Block  530.04  on the Tax Map of the  Township  of  Franklin,  County of
Somerset, State of New Jersey."

                                 EXHIBIT "D-14"

                              PROPERTY DESCRIPTION

                            (180/188 Mount Airy Road)

That certain  real  property  situated in the  Township of  Bernards,  County of
Somerset, State of New Jersey, described as follows:

                                 EXHIBIT "D-15"

                              PROPERTY DESCRIPTION
                              --------------------
                           (Chatham Executive Center)

         That certain real property located in the Borough of Chatham, County of
Morris, State of New Jersey, described as follows:

All that certain tract, lot and parcel of land lying and being in the Borough of
Chatham,  County  of Morris  and State of New  Jersey  being  more  particularly
described as follows:

BEGINNING  at a point in the  northerly  line of Main  Street,  distant  therein
easterly  235.82 feet from the  intersection  thereof with the easterly  line of
University Avenue; and thence running

1.       North 9 degrees 13 minutes 10 seconds East 315.43 feet; thence

2.       North 85 degrees 26 minutes West 141.28 feet; thence

3.       North 80 degrees 52 minutes West 13.65 feet; thence

4.       North 07 degrees 45 minutes East 73.00 feet; thence

5.       North 09 degrees 04 minutes East 385.28 feet; thence

6.   South 78 degrees 11 minutes  East  crossing the Grist Mill Race 336.60 feet
     to the west edge of the Passaic River; thence

7.   Along the west edge of the  Passaic  River  South 13  degrees 49 minutes 40
     seconds West 346.50 feet; thence

8.   Still  along the same,  South 05 degrees 46 minutes 10 seconds  East 270.85
     feet; thence

9.   South 82 degrees 35 minutes 20 seconds West 37.49 feet; thence

10.      South 04 degrees 06 minutes 20 seconds East 57.14 feet; thence

11.  South 15 degrees  53  minutes 40 seconds  West 76.14 feet to a point in the
     northerly line of Main Street; thence

12.  Along the same North 80 degrees 10 minutes West 189.51 feet to the point or
     place of BEGINNING.

FOR INFORMATIONAL PURPOSES ONLY:
"In compliance with Chapter 157, Laws of 1977, premises herein is Lot 2 in Block
49 on the Tax Map of the  Borough of  Chatham,  County of  Morris,  State of New
Jersey."

                                 EXHIBIT "D-16"

                              PROPERTY DESCRIPTION
                              --------------------
                        (Garden State Convention Center)

That certain  real  property  situated in the  Township of  Franklin,  County of
Somerset, State of New Jersey, described as follows:

                                 EXHIBIT "D-17"

                              PROPERTY DESCRIPTION
                              --------------------
                               (1800 Valley Road)

         That certain  real  property  situated in the City of Wayne,  County of
Passaic, State of New Jersey, described as follows:

         Beginning at a point on the  northeasterly  right-of-way line of Valley
Road (being a 80 foot wide  right-of-way),  where the same is intersected by the
dividing line between Lot 16 and 17 on the West and running; thence

1.   North 51  degrees  48  minutes  02  seconds  West  396.70  feet  along  the
     northeasterly  right-of-way  line of Valley  Road to a point of  curvature;
     thence

2.   Northwesterly along the northeasterly  right-of-way line of Valley Road and
     along a curve to the right having a radius of 1,958.37 feet, and arc length
     of 208.69 feet and a central angle of 06 degrees 06 minutes 20 seconds to a
     point; thence

3.   North 38 degrees 11 minutes 58 seconds East 653.01 feet along said division
     line  between Lot 1, Block 3800 on the North and Lot 17,  Block 3101 on the
     South to a point; thence

4.   North 57 degrees 12 minutes 00 seconds  East 405.49 feet along said line to
     a point; thence

5.   South 32 degrees 48 minutes 00 seconds  East 330.52 feet along the division
     line  between  Lot 17, on the West and Lot 1, Block 3800 and Lot 16,  Block
     3101 on the East to a point; thence,

6.   South 61 degrees 27 minutes 21 seconds West 285.00 feet along said division
     line to a point; thence

7.   South 38 degree 11 minutes 58 seconds  West  148.00  feet still  along said
     line to a point; thence,

8.   South 51 degrees 48 minutes 02 seconds  East  330.00  feet still along said
     line to a point; thence,

9.   South 38 degrees 11 minutes 58 seconds  West,  170.00 feet still along said
     division line to a point; thence

10.  South 52 degrees 24 minutes 52 seconds  West  232.11  feet still along said
     division line to a point; thence

11.  South 38 degrees 11 minutes 58 seconds  west,  135.00 feet still along said
     division line to the point and the point of beginning.

FOR INFORMATIONAL PURPOSES ONLY:

"In compliance with Chapter 157, Laws of 1977,  premises herein is Lot 17, Block
3101 the Tax Map of the  Township  of  Wayne,  County of  Passaic,  State of New
Jersey."

                                 EXHIBIT "D-18"

                              PROPERTY DESCRIPTION

                             (Wells Research Center)

         That certain real  property  situated in the City of Newton,  County of
Middlesex, State of Massachusetts, described as follows:

                                 EXHIBIT "D-19"

                              PROPERTY DESCRIPTION

                               (7/57 Wells Avenue)

         That certain real  property  situated in the City of Newton,  County of
Middlesex, State of Massachusetts, described as follows:

                                 EXHIBIT "D-20"

                              PROPERTY DESCRIPTION
                              --------------------
                                 (Dedham Place)

         That  certain  real  property  situated  in the  Cities of  Dedham  and
Westwood, County of Norfolk, State of Massachusetts, described as follows:

Condominium  Unit  O  of  that  certain   condominium   known  as  Dedham  Place
Condominium,  situated at 9-11 Allied  Drive and 95 Dedham  Place,  Westwood and
Dedham, created by Master Deed dated November 20, 1991, recorded with said Deeds
on November 27, 1991, Book 9118, Page 336.

                                 EXHIBIT "D-21"

                              PROPERTY DESCRIPTION
                              --------------------
                                (333 Elm Street)

         That certain real  property  situated in the City of Dedham,  County of
Norfolk, State of Massachusetts, described as follows:

Lot 12 on Land Court Plan No.  21105J,  dated July 16,  1969, a copy of which is
filed with said Registry  District of the Land Court with  Certificate  of Title
No. 94229.

Numerous  parcels of land described in the Deed at Book 11656,  Page 456, two of
which are shown on a recorded plan as follows:

Lots 1 and 1A shown on a plan  entitled  "Plan of Land in Dedham  and  Westwood,
Mass.",  dated December 21, 1979, by Ernest W. Branch,  Inc.,  Civil  Engineers,
recorded with said Deeds, Book 5880, Page 305.

                                 EXHIBIT "D-22"

                              PROPERTY DESCRIPTION

                                (128 Tech Center)

         That certain real property  situated in the City of Waltham,  County of
Middlesex, State of Massachusetts, described as follows:

                                 EXHIBIT "D-23"
                                  -------------

                              PROPERTY DESCRIPTION

                             (201 University Avenue)

         That certain real property situated in the City of Westwood,  County of
Norfolk, State of Massachusetts, described as follows:

Lots 20 and 21 shown on Land Court Plan No. 26294F,  dated June 3, 1964, revised
through  September 4, 1964, a copy of which is filed with said Registry District
with Certificate of Title No. 76456.

Together  with the benefit of drain and slope rights set forth in an  Indenture,
dated August 24, 1964, filed with said Registry  District as Document No. 258345
and as set forth in an Order of Court,  filed  with said  Registry  District  as
Document No. 260043.

Together  with the  benefit of the rights set forth or  referred  to in Document
Nos. 258596, 258597, 258689, 260043, 260694, 261815, 263363 and 263595.PROMISSORY NOTE

$352,600,000.00                                                    June 25, 2001

     FOR VALUE RECEIVED, the undersigned,  WELLSFORD/WHITEHALL HOLDINGS, L.L.C.,
a Delaware limited liability company  ("BORROWER"),  having an address at c/o WP
Commercial,   L.L.C.,  26  Main  Street,   Chatham,  New  Jersey  07928,  hereby
unconditionally  PROMISES  TO PAY to  the  order  of  GENERAL  ELECTRIC  CAPITAL
CORPORATION,  a New York corporation  ("LENDER"),  having an address at 292 Long
Ridge Road, Stamford, Connecticut 06927, or at such other place as the holder of
this Note may  designate  from time to time in writing,  in lawful  money of the
United  States of America and in  immediately  available  funds,  the  principal
amount of up to Three Hundred  Fifty-Two Million Six Hundred Thousand and No/100
Dollars  ($352,600,000.00),  or such  lesser  principal  amount  of the Loan (as
defined in the Loan Agreement referred to below) as may be outstanding  pursuant
to the Loan  Agreement (as  hereinafter  defined)  together with interest on the
unpaid principal amount of this Note outstanding from time to time from the date
hereof, at the rate, and computed as, provided in the Loan Agreement.

     This Note is issued  pursuant to that  certain Loan  Agreement  dated as of
even date herewith,  between Borrower and Lender (the "LOAN AGREEMENT"),  and is
entitled to the benefit and security of the Loan Documents provided for therein,
to which  reference  is  hereby  made for a  statement  of all of the  terms and
conditions under which the Loan evidenced hereby is made. All capitalized terms,
unless otherwise defined herein, shall have the meanings ascribed to them in the
Loan Agreement.

     The principal amount of the indebtedness  evidenced hereby shall be payable
in the amounts and on the dates set forth in the Loan Agreement. Interest on the
outstanding  principal balance shall be paid until such principal amount is paid
in full at such interest rates,  and at such times, as are specified in the Loan
Agreement.

     If any payment on this Note becomes due and payable on a day which is not a
Business  Day and a Eurodollar  Business  Day,  the  maturity  thereof  shall be
extended to the next succeeding  Business Day that is also a Eurodollar Business
Day unless it would thereby fall in the next  calendar  month in which event the
maturity  thereof shall be the immediately  preceding day that is a Business Day
and Eurodollar Business Day and, with respect to payments of principal, interest
thereon shall be payable at the then applicable rate during such extension.

     Upon and after the  occurrence  of an Event of  Default,  this Note may, as
provided in the Loan Agreement,  and without demand,  notice or legal process of
any kind, be declared, and immediately shall become, due and payable.

     Demand,  presentment,  protest  and notice of  nonpayment  and  protest are
hereby waived by Borrower.

     Except as otherwise  provided in the Loan Agreement,  the Lender's recourse
shall be limited to the  Collateral  and no partners of Borrower or any of their
Affiliates or their  affiliated  partnerships,  partners,  companies,  officers,
directors,  shareholders or any other Person, disclosed or undisclosed, shall be
personally liable for the repayment of any of the Obligations.

     This Note shall be  interpreted,  governed by, and  construed in accordance
with, the laws of the State of New York.

     IN WITNESS WHEREOF,  this Note has been duly executed by the Borrower as of
the day and year first written above.

"BORROWER":

WELLSFORD/WHITEHALL HOLDINGS, L.L.C., a Delaware limited liability
company

By:      Wellsford/Whitehall Properties II, L.L.C., a Delaware
         limited liability company, its managing member

         By:      Wellsford/Whitehall Group, L.L.C., a Delaware
                  limited liability company, its sole member

                  By:      WP Commercial, L.L.C., a Delaware limited
                           liability company, its manager

                        By:      /s/ Alan Kava
                                 -------------
                        Name:   Alan Kava
                        Title:  Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]