Document:

Exhibit
10.1

SALE, PURCHASE AND ESCROW
AGREEMENT

This
Sale, Purchase and Escrow Agreement (this “Agreement”), dated as of September     ,
2006, is made by and between NORTH ATLANTA REALTY ACQUISITION COMPANY, INC., a
Delaware corporation (“Seller”), and HARVARD PROPERTY TRUST, LLC, a Delaware limited liability company
(“Buyer”), and constitutes (i) a contract of sale and purchase
between the parties and (ii) an escrow agreement between Seller,
Buyer and PARTNERS TITLE COMPANY (“Escrow Agent”), the consent of which appears
at the end hereof.

ARTICLE
I

RECITALS

1.1           Real
Property.  Seller is the lessee of
that certain land (the “Land”) described in Parcel A on Exhibit A and
all improvements located thereon (the “Improvements”) known as Resurgens Plaza
located at 945 East Paces Ferry Road, Atlanta, Georgia (collectively, the “Real
Property”), pursuant to that certain Lease for Johnsontown South Site, dated
May 29, 1984 and recorded in Deed Book 8994, page 396, Fulton County, Georgia
records, between Metropolitan Atlanta Rapid Transit Authority, a public body
corporate created under the laws of the State of Georgia (“MARTA”), and
Resurgens Plaza South, Inc., a Georgia corporation (predecessor-in-interest to
Resurgens Plaza South Associates, L.P. (“RPSA”)), as amended by that certain
First Amendment to Lease for Johnsontown South Site, dated May 29, 1984,
recorded in Deed Book 8994, page 448, aforesaid records, as further amended by
that certain Second Amendment to Lease for Johnsontown South Site, dated July
1, 1984, recorded in Deed Book 9392, page 398, aforesaid records, as further
amended by that certain Third Amendment to Lease for Johnsontown South Site,
dated February 19, 1986, recorded in Deed Book 9971, page 106, aforesaid
records, as further amended by that certain Fourth Amendment to Lease for
Johnsontown South Site and Second Amendment to Development Agreement, dated
August 1, 1986, recorded in Deed Book 10277, page 168, aforesaid records, as
assigned by RPSA to Seller pursuant to that certain Assignment and Assumption
of MARTA Lease and Development Agreement, dated November 17, 1997 and recorded
in Deed Book 23466, page 251 (collectively, the “Ground Lease”).

1.2           Air
Rights.  Seller owns and holds fee
title to those certain air rights described in Parcel B on Exhibit A
(the “Air Rights Parcel”).

1.3           Development
Agreement.  Seller holds certain
development rights pursuant to that certain Development Agreement, dated
November 10, 1982 and recorded in Deed Book 8287, page 1, Fulton County,
Georgia records, between MARTA and Resurgens Plaza Company, a Georgia general
partnership (predecessor-in-interest to RPSA), as amended by that certain First
Amendment to Development Agreement, dated September 30, 1983 and unrecorded, as
further amended by that certain Fourth Amendment to Lease for Johnsontown South
Site and Second Amendment to Development Agreement, dated August 1, 1986,
recorded in Deed Book 10277, page 168, aforesaid records, as assigned by RPSA
to Seller pursuant to that certain Assignment

 

and Assumption of MARTA Lease and Development Agreement, dated November
17, 1997 and recorded in Deed Book 23466, page 251 (collectively, the “Development
Agreement”).

1.4           Personal
Property.  In connection with the
Real Property, Seller has (i) obtained certain governmental permits
and approvals, (ii) obtained certain contractual rights and other
intangible assets, and (iii) acquired certain other items of
tangible personal property more completely described in Exhibit B
(collectively, the “Personal Property”). 
The Real Property, the Air Rights Parcel and the Personal Property are
collectively referred to as the “Property.”

1.5           Purchase
and Sale.  Seller now desires to sell
and Buyer now desires to purchase all of Seller’s right, title and interest in
and to the Property, upon the terms and covenants and subject to the conditions
set forth below.

ARTICLE
II

PURCHASE PRICE

2.1           Price.  In consideration of the covenants herein
contained, Seller hereby agrees to sell and Buyer hereby agrees to purchase the
Property for a total purchase price of $110,500,000 (the “Purchase Price”).  Notwithstanding the foregoing, if RSUI Indemnity Company, Inc. (“RSUI”)
exercises its expansion option with respect to the Expansion Option Space (as
defined in the RSUI Lease (as defined herein)) under the RSUI Lease, the
Purchase Price shall be increased by an amount equal to the product of (i)
the quotient obtained by dividing (x) the number of rentable square feet
of Expansion Option Space to be leased by RSUI pursuant to the exercise of such
option by (y) 24,577 and (ii) $250,000.  The Purchase Price shall be paid by Buyer as
follows:

2.1.1        Deposit.  Buyer shall, within two business days of the
date hereof, deliver to Escrow Agent by bank wire of immediately available
funds the sum of $2,000,000
(the “Deposit”) to insure the full and faithful performance by Buyer of
the terms of this Agreement.

2.1.2        Within two business
days after the expiration of the Investigation Period (as defined in Section
5.3.2), Buyer shall deliver to Escrow Agent, by bank wire transfer of
immediately available funds, an additional $3,000,000 (the “Additional Funds”, such money to become part of the
Deposit, for an aggregate Deposit of $5,000,000),
unless Buyer shall have terminated this Agreement in accordance with Section
5.3. If Buyer fails to deliver the Additional Funds to Escrow Agent within
two business days after the expiration of the Investigation Period (provided Buyer has not terminated this
Agreement in accordance with Section 5.3), such failure shall be a default
under this Agreement.

2.1.3        Balance of
Purchase Price.  Buyer shall, on or
before one business day prior to the Closing (as defined in Section 6.1),
deliver to Escrow

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Agent, by bank
wire transfer of immediately available funds, a sum equal to the balance of the
Purchase Price.  The balance of the
Purchase Price received by Seller at Closing shall be adjusted to reflect any
credit of interest to Buyer under Section 2.3 and prorations and other
adjustments pursuant to Section 7.1.

2.2           Investments.  Following the collection of the Deposit,
Escrow Agent shall, at the direction of Buyer, invest the Deposit in:

(i)            obligations of the
United States government, its agencies or independent departments;

(ii)           certificates of deposit or money
market funds issued by a banking institution acceptable to Buyer; or

(iii)          an interest-bearing account of a banking
institution acceptable to Buyer.

No investment of the Deposit shall have a maturity
date beyond the Closing Date (as defined in Section 6.1).

2.3           Interest
on the Deposit.  Any interest earned
on the Deposit shall be credited and delivered to the party receiving the
Deposit, except however, if the transaction closes, at Closing any interest
earned on the Deposit prior to its delivery to Seller shall be credited to Buyer.

ARTICLE
III

CONDITIONS TO THE PARTIES’ OBLIGATIONS

3.1           Conditions
to Buyer’s Obligation to Purchase. 
Buyer’s obligation to purchase is expressly conditioned upon each of the
following:

3.1.1        Performance by
Seller.  Performance in all material
respects of the obligations and covenants of, and deliveries required of,
Seller hereunder.

3.1.2        Delivery of Title
and Possession.  Delivery at the
Closing of (i) the Deed (as defined in Section 4.2.1), (ii) the
Assignment of Ground Lease and Development Agreement (as defined in Section
4.1.4) and (iii) possession as provided in Section 15.1.

3.1.3        Title Insurance.  Delivery at the Closing of a standard 1992
form of American Land Title Association owner’s policy of title insurance,
including extended coverage (or a signed marked binder thereof) (the “Title
Policy”) with liability in the amount of the Purchase Price issued by
Commonwealth Land Title Insurance Company (the “Title Company”), insuring that
fee title to the Air Rights Parcel and leasehold title to the Real Property
vests in Buyer subject to the Permitted Encumbrances (as defined in Section
4.2.1). At

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its option,
Buyer may direct the Title Company to issue additional title insurance
endorsements, if Buyer pays for the extra cost of such additional endorsements,
provided that the Title Company’s failure to issue any such additional
endorsements shall not affect Buyer’s obligations under this Agreement.

3.1.4        Tenant Estoppels.  Receipt by Buyer of estoppel certificates,
dated not earlier than 30 days prior to the Closing Date, from (i) RSUI, (ii) Fisher & Phillips, (iii) Epstein, Becker & Green, (iv)
Spencer Stuart and (v) Milliman USA (collectively, the “Major Tenants”) and
from enough of the remaining tenants under the Leases so that the estoppel
certificates received by Buyer cover in the aggregate at least 80% of the net
leased square footage of the Improvements. 
Such estoppel certificates are to be in the form of Exhibit C or
such other form as is specified in the applicable Lease, without any material
changes, exceptions or qualifications, provided that any estoppel
certificate shall be accepted as long as it (i) does not indicate the
continuing existence of an actual material default of Seller as landlord under
the applicable Lease (ii) confirms the rent and any other monthly
payments under the applicable Lease, and (iii) does not indicate
any conflict with or contains information contradictory to the terms and
conditions of the applicable Lease (other than minor technical or de minimis
conflicts or contradictions). 
Seller shall have the option to provide its own estoppel certificate for
tenants (other than the Major Tenants) leasing in the aggregate not more than 15% of the net leased area of the
Improvements in lieu of any tenant estoppel certificates which Seller fails to
obtain, and provided such estoppel(s) meet the requirements of the following
sentence, delivery thereof shall count towards satisfaction of  the condition set forth in this Section
3.1.4.  The Seller estoppel certificates
shall state that (i) Seller has not received any written notice of its default
as landlord under any such lease, (ii) to the extent of Seller’s actual
knowledge, Seller is not in material default as landlord under any such lease,
(iii) to the extent of Seller’s actual knowledge, such tenants are not
in material default under such leases, and (iv) to the extent of Seller’s
actual knowledge, Seller has not been informed by any such tenant that the rent
set forth in the applicable estoppel certificate delivered to such tenant is in
dispute.  Seller’s liability under each
Seller’s estoppel certificate shall cease and terminate with respect to any
such lease upon the delivery to Buyer, at any time after the Closing, of a
corresponding estoppel certificate from such tenant meeting the criteria set
forth in this Section 3.1.4.  In
addition, Seller’s estoppel certificates shall contain the limitations
on survival and liability set forth in Section 16.8 of this Agreement.

3.1.5        MARTA Estoppel.  Receipt by Buyer of an executed estoppel
certificate reasonably acceptable to Buyer from MARTA under the Ground Lease
and the Development Agreement, provided that any such estoppel
certificate shall be accepted as long as it does not indicate the continuing
existence of an actual material default of Seller as landlord under the Ground
Lease and the Development Agreement.

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3.1.6        Consent of MARTA.  Receipt by Buyer of the consent of MARTA to
the assignment from Seller to Buyer of the Ground Lease and the Development
Agreement.

3.1.7        Defeasance.  The loan (the “Loan”) evidenced by that
certain Fee and Leasehold Deed to Secure Debt, Assignment of Leases and Rents
and Security Agreement, dated as of December 29, 1997, made by Seller to
General Electric Capital Corporation shall have been defeased.

3.1.8        Seller’s
Representations.  The representations
and warranties by Seller set forth in Section 11.1 being true and correct in
all material respects as of the Closing except as modified by notice (in
accordance with Section 11.1) to which Buyer does not object in writing within
three business days after receipt thereof.

3.2           Conditions
to Seller’s Obligation to Sell. 
Seller’s obligation to sell is expressly conditioned upon each of the
following:

3.2.1        Performance by
Buyer.  Performance in all material
respects of the obligations and covenants of, and deliveries required of, Buyer
hereunder.

3.2.2        Receipt of
Purchase Price.  Receipt of the
Purchase Price and any adjustments due Seller under Article VII at the Closing
in the manner herein provided (including delivering the Purchase Price to
Escrow Agent one business day prior to the Closing Date in accordance with
Section 6.1).

3.2.3        Consent of MARTA.  Receipt by Seller of the consent of MARTA to
the assignment from Seller to Buyer of the Ground Lease and the Development
Agreement.

3.2.4        Defeasance.  The Loan shall have been defeased.

3.3           Failure
of Condition Precedent.  Upon the failure of any of the foregoing
conditions, the party to which such failed condition was to benefit shall have
the option to (i) waive such condition precedent and proceed to Closing
or (ii) terminate this Agreement by sending written notice to the other
party on or before the date of Closing, in which event the Deposit shall be
returned to Buyer (except if Buyer fails to deliver to Seller the Purchase
Price as set forth in Section 3.2.2).

ARTICLE
IV

BUYER’S DELIVERIES AND SELLER’S DELIVERIES TO ESCROW AGENT

4.1           Buyer’s
Deliveries.  Buyer shall, at or
before the Closing, deliver to Escrow Agent each of the following:

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4.1.1        Purchase Price.  The Purchase Price as set forth in
Article II.

4.1.2        Assignment of
Leases and Contracts.  Four executed
counterparts of the Assignment and Assumption of Leases, Contracts and Other
Property Interests (the “Assignment of Leases and Contracts”) in the form of Exhibit
D.

4.1.3        Bill of Sale.  Four executed counterparts of a bill of sale
(the “Bill of Sale”) in the form of Exhibit E.

4.1.4        Assignment of
Ground Lease and Development Agreement. 
Four executed counterparts of the Assignment and Assumption of Ground
Lease and Development Agreement (the “Assignment of Ground Lease and
Development Agreement”) in substantially the form of Exhibit F.

4.1.5        Transfer
Declarations. Executed copies of state, county and local transfer
declarations, if any.

4.1.6        Closing Statement.  An executed settlement statement reflecting
the prorations and adjustments required under Article VII.

4.2           Seller’s
Deliveries.  Seller shall, at or
before the Closing, deliver to Escrow Agent each of the following:

4.2.1        Deed.  A limited warranty deed (the “Deed”) in the
form of Exhibit G with respect to the Air Rights Parcel, executed and
acknowledged by Seller, pursuant to which Seller shall convey title to the Air
Rights Parcel subject to the following (collectively, the “Permitted Encumbrances”):

(1)           Non-delinquent
real property taxes and all assessments and unpaid installments thereof which
are not delinquent.

(2)           The leases affecting
the Property enumerated in Exhibit H and any leases executed in
accordance with this Agreement after the date hereof (collectively, the “Leases”),
and the rights of the tenants thereunder.

(3)           The Ground Lease and
the Development Agreement.

(4)           Any other lien,
encumbrance, easement or other exception or matter voluntarily imposed or
consented to by Buyer prior to or as of the Closing.

(5)           All exceptions to
title contained or disclosed in the Title Report (as defined in Section 5.1.1)
other than Title

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Objections (as
defined in Section 5.3.1) identified and not thereafter waived by Buyer.

4.2.2        Assignment of
Leases and Contracts.  Four executed
counterparts of the Assignment of Leases and Contracts, together with original
executed counterparts (or copies if originals are not in Seller’s possession)
of the Leases and the service contracts, equipment leases, maintenance
agreements and other contracts affecting the Real Property enumerated in Exhibit
I (the “Contracts”) assigned thereby.

4.2.3        Bill of Sale.  Four executed counterparts of the Bill of
Sale.

4.2.4        Assignment of
Ground Lease and Development Agreement. 
Four executed counterparts of the Assignment of Ground Lease and
Development Agreement.

4.2.5        Notices to Tenants.  Notices signed by Seller (or Seller’s manager
for the Improvements) addressed to each tenant under each Lease in the form of Exhibit
J.

4.2.6        FIRPTA Certificate.  Executed copies of a certificate in the form
of Exhibit K, with respect to the Foreign Investment in Real Property
Tax Act.

4.2.7        Transfer
Declarations. Executed copies of state, county and local transfer
declarations, if any.

4.2.8        Termination of
Management and Leasing Agreements.  Evidence of
termination of that certain Management and Leasing Agreement, dated December
1997, between Seller and Insignia Commercial Group, Inc., a Georgia corporation
(predecessor-in-interest to CB Richard Ellis) (the “Termination Agreement”).

4.2.9        Broker’s Lien
Waiver.  A lien waiver from the
Broker (as defined in Section 11.1.1) in form sufficient for the Title Company
to delete any exceptions for the rights of the Broker.

4.2.10      Closing Statement.
 An executed settlement statement
reflecting the prorations and adjustments required under Article VII.

4.2.11      Rent Roll.  A current rent roll for the Property.

4.3           Failure
to Deliver.  The failure of Buyer or
Seller to make any delivery required above by and in accordance with this
Article IV shall constitute a default hereunder by such party.

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ARTICLE
V

INVESTIGATION OF PROPERTY

5.1           Delivery
of Documents.  Except with respect to
Section 5.1.1 (which Buyer shall have ordered on or prior to the date hereof),
Seller shall deliver, cause to be delivered, or make available to Buyer the
following within five business days after the date of this Agreement:

5.1.1        Preliminary Title
Report.  A current preliminary title
report covering the Real Property and the Air Rights Parcel issued by the Title
Company, together with copies of all documents referred to as exceptions
therein (collectively, the “Title Report”).

5.1.2        Survey.  To the extent in Seller’s possession, the
most recent survey of the Real Property and the Air Rights Parcel prepared by a
licensed surveyor (the “Survey”).

5.1.3        Ground Lease,
Development Agreement, Leases and Contracts.  Copies of the Ground Lease, the Development
Agreement, the Leases and the Contracts.

5.1.4        Books and Records.  Copies of the managing agent’s books and
records, monthly operating statements and variance reports, tax bills and
utility bills regarding the Property for the 2004 and 2005 calendar years and
2006 year to date, it being acknowledged that the foregoing shall not include
any financial analyses, budgets, projections, appraisals, or confidential
materials.

5.1.5        Permits.  Copies of all governmental permits,
certificates of occupancy and approvals, in each case regarding the Property,
which are in Seller’s possession.

If requested by Seller, Buyer shall provide written
verification of its receipt of those items listed in this Section 5.1 which are
delivered to Buyer.  Seller acknowledges
that attached hereto as Exhibit L is Buyer’s standard due diligence item list for purchase
and sale contracts.

5.2           Physical
Inspection of the Real Property. 
Prior to the expiration of the Investigation Period, Buyer and Buyer’s
representatives, agents and designees shall have the right at reasonable times
and upon reasonable notice to Seller to enter upon the Real Property, at Buyer’s
sole cost, solely for the purpose of conducting such non-destructive physical
inspections, non-destructive soil and engineering tests and a
non-destructive Phase I environmental site assessment as Buyer may elect to
make or obtain, provided that Buyer promptly repairs any damage to the
reasonable satisfaction of Seller.  Buyer
acknowledges and agrees that the inspection, testing and survey of the Real
Property by Buyer and Buyer’s representatives, agents and designees shall be
subject to the rights of the tenants under the Leases and shall be performed in
such a manner as to not interfere

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with the rights of such tenants. 
Buyer shall give Seller reasonable prior written notice of any
inspection, test or survey so that Seller will have the opportunity to have a
representative present therefor, which right Seller reserves.

5.2.1        No Communication
with Tenants.  Neither Buyer nor
Buyer’s representatives, agents and designees shall communicate with any
tenants without the prior written approval of Seller, which consent shall not
be unreasonably withheld, conditioned, or delayed.  Seller reserves the right to be present at
any meeting with any tenant.

5.2.2        Indemnity and
Insurance.  Buyer hereby agrees to
indemnify and hold harmless Seller, J.P. Morgan Investment Management Inc. (“Advisor”)
and the pension fund or other investors on whose behalf Seller is acting, and
their respective shareholders, officers, directors, partners, members,
employees, agents, successors and assigns, from and against any mechanics’ lien
or claim therefor, any claim, cause of action, lawsuit, damage, liability,
loss, cost or expense (including, without limitation, attorneys’ fees) arising
out of any such entry by Buyer or its representatives, agents or designees
(including any such entry made prior to the date of this Agreement) or out of
any such inspections, tests or surveys conducted by Buyer, its representatives,
agents or designees (including any such inspections, tests or surveys made prior
to the date of this Agreement).  Prior to any entry upon the Real Property by
Buyer or Buyer’s agents, contractors, subcontractors or employees, Buyer shall
deliver to Seller an original endorsement to Buyer’s commercial general
liability insurance policy which evidences that Buyer is carrying a commercial
general liability insurance policy with a financially responsible insurance
company acceptable to Seller, covering (i) the activities of Buyer, and Buyer’s
agents, contractors, subcontractors and employees on or upon the Real Property,
and (ii) Buyer’s indemnity obligation above. 
Such endorsement to such insurance policy shall evidence that such
insurance policy shall have a per occurrence limit of at least $2,000,000 and
an aggregate limit of at least $3,000,000, shall name Seller as an additional
insured, shall be primary and non-contributing with any other insurance
available to Seller and shall contain a full waiver of subrogation clause.  The provisions of the preceding three
sentences shall survive the termination of this Agreement or the Closing
hereunder.

5.3           Investigation
Period.  Buyer shall have the right
to make the following investigations.

5.3.1        Title and Survey.  Buyer shall have until October 5, 2006 at
4:00 p.m. New York City Time to notify Seller of any objections (the “Title
Objections”) with respect to the Title Report and the Survey based on its
review thereof.  If Buyer does not give
such notice, such failure shall be conclusively deemed to be full and complete
approval of the Title Report and the Survey and any matter disclosed
therein.  If Buyer does give such notice,
Seller shall have three business days after receipt thereof to notify Buyer
that Seller (a) will cause or (b) elects not to cause any or all Title
Objections to be removed or insured over

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by the Title
Company.  Seller’s failure to notify
Buyer within such three business day period as to any Title Objection shall be
deemed an election by Seller not to remove or have the Title Company insure
over such Title Objection.  If Seller
notifies or is deemed to have notified Buyer that Seller shall not remove nor
have the Title Company insure over any or all of the Title Objections, Buyer
shall have until the end of the Investigation Period to (i) terminate this
Agreement or (ii) waive such Title Objections and proceed to closing without
any abatement or reduction in the Purchase Price on account of such Title
Objections.  If Buyer does not give such
notice, Buyer shall be deemed to have elected to waive such Title Objections.

5.3.2        General
Investigation.  In addition, Buyer
shall have from the date hereof until October 16, 2006 at 4:00 p.m. New
York City Time (the “Investigation Period”) to notify Seller that as a result
of Buyer’s review of the documents set forth in Section 5.1 (other than the
Title Report or the Survey which are covered in Section 5.3.1 above) or Buyer’s
investigation of the Property pursuant to Section 5.2 it disapproves of any
matter or item affecting the Property (which disapproval may be in Buyer’s sole
discretion) and has elected to terminate this Agreement.  If Buyer fails to give such notice of
disapproval and termination prior to the expiration of the Investigation
Period, such failure shall be conclusively deemed to be a waiver of Buyer’s
right to terminate this Agreement under this Section 5.3.2.

5.4           Effect
of Termination.  If Buyer terminates
this Agreement in accordance with Section 5.3, all further rights and
obligations of the parties shall cease and terminate without any further
liability of either party to the other (except those obligations which are
specifically provided to survive such termination as provided in this
Agreement).

5.5           No
Obligation to Cure.  Except for
Mandatory Cure Objections (all of which Seller shall cure), nothing contained
in this Agreement or otherwise shall require Seller to render its title
marketable or to remove or correct any exception or matter disapproved by Buyer
or to spend any money or incur any expense in order to do so.  “Mandatory Cure Objections” shall be defined as any deeds of trust,
mortgages judgments, mechanic’s or materialmen’s liens or other liens or
encumbrances which secure or evidence a monetary claim, which, in each case was
created by Seller or caused to be created by Seller.  Seller reserves all rights against the persons or
entities responsible for any lien or encumbrance that is a Mandatory Cure
Objection.  The previous sentence shall
survive the Closing

5.6           Copies
of Third Party Reports.  If the
Investigation Period is extended for any reason, including by amendment to this
Agreement, or if Seller otherwise requests, Buyer, within three days after such
extension or request, shall provide Seller with copies of all third party
reports and work product generated with respect to the Property.

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ARTICLE
VI

THE CLOSING

6.1           Date
and Manner of Closing.  Escrow Agent
shall close the escrow (the “Closing”) as soon as all conditions to closing
contained in this Agreement have been satisfied which shall in any event be not
later than December
1, 2006 (the “Closing Date”), time being of the essence (subject only to
Seller’s extension option under Section 6.2 and Seller’s cure rights under
Section 13.6, in which event Seller will give Buyer not less than three
business days’ notice of the date of Closing), by recording and delivering all
documents and funds as set forth in Article VIII.  Notwithstanding anything to the contrary
contained in this Agreement, Buyer shall deliver the Purchase Price to Escrow
Agent one business day prior to the Closing in order to defease the Loan at
Closing.

6.2           Seller’s
Extension Option.  Notwithstanding the satisfaction of all other
conditions precedent contained in this Agreement, Seller may elect to postpone
the Closing for up to 42 days (but in no event to a date later than January 12,
2007) solely for the purpose of satisfying the condition precedent contained in
Section 3.1.7, provided that Seller shall give Buyer not less than three
business days’ notice of Seller’s election to exercise this option.  Time is of the essence for all of the dates
contained in this Section 6.2.

6.3           Delay
in Closing; Authority to Close.  If
Escrow Agent cannot close the escrow on or before the Closing Date, it shall,
nevertheless, close the same when all conditions have been satisfied or waived,
notwithstanding that one or more of such conditions has not been timely
performed, unless after the Closing Date and prior to the close of the escrow,
Escrow Agent receives a written notice to terminate the escrow and this
Agreement from a party who, at the time such notice is delivered, is not in
default hereunder.  The exercise of such
right of termination, any delay in the exercise of such right, and the return
of monies and documents, shall not affect the right of the party giving such
notice of termination to pursue remedies permitted under Article X for the
other party’s breach of this Agreement. 
In addition, the giving of such notice, the failure to object to
termination of the escrow or the return of monies and documents shall not
affect the right of the other party to pursue other remedies permitted under
Article X for the breach of the party who gives such notice.

ARTICLE
VII

PRORATION,
FEES, COSTS AND ADJUSTMENTS

7.1           Prorations.  Prior to the Closing, Seller shall determine
the amounts of the prorations in accordance with this Agreement and notify
Buyer thereof.  Buyer shall review and
approve such determination promptly and prior to the Closing, such approval not
to be unreasonably withheld or delayed. 
Thereafter, Buyer and Seller shall each inform Escrow Agent of such
amounts.

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7.1.1        Certain Items Prorated.  In accordance with the notifications, Escrow
Agent shall prorate between the parties (and the parties shall deposit funds
therefor with Escrow Agent or shall instruct Escrow Agent to debit against sums
held by Escrow Agent owing to such party), as of 11:59 p.m. the day prior to
the Closing, all income and expenses with respect to the Property and payable
to or by the owner of the Property, including, without limitation:  (i) all real property taxes on the basis of the
fiscal period for which assessed (if the Closing shall occur before the tax
rate is fixed, the apportionment of taxes shall be based on the tax rate for
the preceding period applied to the latest assessed valuation); (ii) rents,
other tenant payments and tenant reimbursements (collectively, “Tenant Payments”)
if any, received under the Leases; (iii) rents and other payments
payable under the Ground Lease and the Development Agreement; (iv)
charges for water, sewer, electricity, gas, fuel and other utility charges, all
of which shall be read promptly before Closing; (v) the cost, based
on the invoices of Seller’s suppliers, of all building supplies (but not
building materials) all in unopened containers, in accordance with an inventory
to be made by Seller as of a date not more than ten days preceding the Closing;
(vi) amounts prepaid and amounts accrued but unpaid on service
contracts and management contracts which are to be assumed by Buyer; and (vii) periodic
fees for licenses, permits or other authorizations with respect to the
Property.

7.1.2        Leasing Commissions and Tenant
Improvements.  At the Closing Buyer
shall pay to Seller (if then due), reimburse Seller for (if already paid), and
assume from Seller the obligation to pay (if due in the future) all leasing commissions,
tenant improvement costs and other charges payable by reason of or in
connection with any Lease (i) entered into with Buyer’s approval after
the date hereof and (ii) any renewal, expansion (including any expansion
options contained in an existing Lease) or extension of an existing Lease after
the Closing.  At the Closing, Seller shall credit Buyer the
sum of $2,740,776 against the Purchase Price, which sum equals the tenant
improvement allowance to which RSUI is entitled under that certain Office Lease
Agreement, dated as of September 9, 1988, by and between Seller’s
predecessor-in-interest and RSUI’s predecessor-in-interest (as the same has
been amended and assigned, the “RSUI Lease”).  Upon the granting of such credit to Buyer at
the Closing, Seller shall be released of any obligation to pay such tenant
improvement allowance to RSUI and Buyer shall indemnify and hold Seller
harmless against any claim by RSUI for such tenant improvement allowance
(including attorneys’ fees).  Buyer shall
be liable for the payment of any leasing commission owed to a third-party
broker and any tenant improvement allowance owed to RSUI, as the case may be,
if RSUI exercises the Expansion Option (as defined in the RSUI Lease), and
Buyer shall indemnify and hold Seller harmless against any claim by RSUI or any
third-party broker for any such leasing commission or tenant improvement
allowance (including attorneys’ fees). This Section 7.1.2 shall survive the
Closing.

7.1.3        Taxes.  Real property tax refunds and credits received after the Closing which
are attributable to a fiscal tax year prior to the Closing shall belong to
Seller.  Any such refunds and credits
attributable to the fiscal tax year

 12
 

 

during which the Closing occurs shall be apportioned
between Seller and Buyer after deducting the reasonable out-of-pocket expenses
of collection thereof.  This
apportionment obligation shall survive the Closing.

7.1.4        Security and Other Deposits.  At the Closing, Seller shall deliver to Buyer
all unapplied refundable security deposits (plus interest accrued thereon to
the extent required to be paid by the applicable Lease or applicable law)
required to be held by Seller under the Leases and Buyer shall pay Seller an
amount equal to all utility and contract deposits then held by third parties
with respect to the Property.  Any such
security deposits in form other than cash (including letters of credit or
security interests in security deposit escrows) shall be transferred to Buyer
by way of appropriate instrument of transfer or assignment.

7.1.5         Delinquent Rentals; Other Tenant
Payments.  Delinquent Tenant
Payments, if any, shall not be prorated and all rights thereto shall be
retained by Seller, who reserves the right to collect and retain such
delinquent Tenant Payments, and Buyer agrees to cooperate with Seller in Seller’s
efforts to collect such Tenant Payments, including, if necessary, joining in
any legal action instituted by Seller. 
If at any time after the Closing, Buyer shall receive any such
delinquent Tenant Payments (all of which Buyer shall use its best efforts to
obtain), Buyer shall immediately remit such Tenant Payments to Seller, provided
that any monies received by Buyer from a delinquent tenant shall be applied
first to current rents then due and payable and then to delinquent rents in the
inverse order in which they became due and payable.  The previous sentence shall survive the
Closing.  If the Tenant Payments required
to be made by any tenants include percentage rent, additional rent or
escalation charges or reimbursements for real property taxes, operating
expenses or other charges, Seller and Buyer shall at the Closing reasonably
estimate the unpaid amount thereof attributable to any period prior to the
Closing and Buyer shall pay such amount to Seller at the Closing.

7.1.6        True-Up.  Any prorations or adjustments of revenue or
expenses which cannot be ascertained with certainty as of the Closing
(including, without limitation, real estate taxes relating to the Property)
shall be prorated on the basis of the parties’ reasonable estimate of such
amounts and shall be re-prorated once the final amounts are determined.  Until the date that is 180 days from the
Closing, Seller and Buyer agree to cooperate in good faith to determine if and
to what extent any prorations proved to be incorrect.  If any of the prorations or adjustments made
pursuant to this Section 7.1 shall prove incorrect for any reason, the party in
whose favor the error was made will promptly pay to the other party the amount
necessary to correct such error.  Seller
and Buyer shall each be deemed to have waived any right to seek such
readjustment of the prorations if it has not sent written notice to the other
party prior to the date that is 180 days after the Closing of a dispute that
has not been resolved.  The provisions of
this Section 7.1.6 shall survive the Closing.

 13
 

 

7.2           Seller’s Closing
Costs.  Seller shall pay (i)
the Georgia state transfer tax in the amount Escrow Agent determines to be
required by law, (ii) one-half of Escrow Agent’s escrow fee or
escrow termination charge, (iii) Seller’s own attorneys’ fees and (iv)
one-half of the actual, documented fee charged by Buyer’s third-party lender to
extend Buyer’s interest rate lock period with such lender for an additional 45
days (the “Extension Fee”), which amount payable by Seller shall not exceed
$10,000; Buyer shall provide Seller with written evidence of the amount of the
Extension Fee.

7.3           Buyer’s Closing
Costs.  Buyer shall pay (i) one-half
of Escrow Agent’s escrow fee or escrow termination charge, (ii) the cost
of the Title Report, the title premium for the Title Policy and the cost of any
title insurance endorsements ordered by Buyer, (iii) the cost of
any update to the Survey or any new survey of the Property, (iv) taxes
and any other costs incurred in recording the Deed or any other instruments, (v) any
costs incurred in connection with Buyer’s investigation of the Real Property
pursuant to Article V, (vi) Buyer’s own attorneys’ fees and (vii)
the portion of the Extension Fee not payable by Seller pursuant to Section
7.2(iv).

ARTICLE VIII

DISTRIBUTION OF FUNDS AND DOCUMENTS

8.1           Delivery of the
Purchase Price.  At the Closing,
Escrow Agent shall deliver the Purchase Price to Seller, and the transaction
shall not be considered closed until such delivery occurs.

8.2           Other Monetary
Disbursements.  Escrow Agent shall,
at the Closing, hold for personal pickup or arrange for wire transfer, (i) to
Seller, or order, as instructed by Seller, all sums and any proration or other
credits to which Seller is entitled and less any appropriate proration or other
charges and (ii) to Buyer, or order, any excess funds theretofore
delivered to Escrow Agent by Buyer and all sums and any proration or other
credits to which Buyer is entitled and less any appropriate proration or other
charges.

8.3           Recorded
Documents.  Escrow Agent shall cause
the Deed, the Assignment of Ground Lease and Development Agreement and any
other documents that Seller or Buyer desires to record to be recorded with the
appropriate county recorder and, after recording, returned to the grantee,
beneficiary or person acquiring rights under said document or for whose benefit
said document was acquired.

8.4           Documents to
Buyer.  Escrow Agent shall at the
Closing deliver by overnight express delivery to Buyer the following:

(1)                                  one
conformed copy of the Deed;

(2)                                  one
original of the Assignment of Ground Lease and Development Agreement;

(3)                                  two
originals of the Assignment of Leases and Contracts;

(4)                                  two
originals of the Bill of Sale;

(5)                                  originals
of the tenant estoppels;

 14
 

 

(6)                                  two
originals of the Notice to Tenants;

(7)                                  two
originals of the FIRPTA Affidavit;

(8)                                  one
conformed copy of any Transfer Declarations;

(9)                                  one
copy of the Broker’s lien waiver;

(10)                            one
original of the Termination Agreement;

(11)                            one
original of the Closing Statement; and

(12)                            one
original of the Title Policy.

8.5           Documents to
Seller.  Escrow Agent shall at the
Closing deliver by overnight express delivery to Seller, the following:

(1)                                  one
conformed copy of the Deed;

(2)                                  two
originals of the Assignment of Ground Lease and Development Agreement;

(3)                                  two
originals of the Assignment of Leases and Contracts;

(4)                                  two
originals of the Bill of Sale;

(5)                                  two
originals of the Notice to Tenants;

(6)                                  two
originals of the FIRPTA Affidavit;

(7)                                  one
conformed copy of any Transfer Declarations; and

(8)                                  one
original of the Closing Statement.

8.6           All Other
Documents.  Escrow Agent shall at the
Closing deliver by overnight express delivery, each other document received
hereunder by Escrow Agent to the person acquiring rights under said document or
for whose benefit said document was acquired.

ARTICLE IX

RETURN OF DOCUMENTS AND FUNDS UPON TERMINATION

9.1           Return of Seller’s
Documents.  If escrow or this
Agreement is terminated for any reason, Buyer shall, within five days following
such termination, deliver to Seller all documents and materials relating to the
Property previously delivered to Buyer by Seller and copies of all reports,
studies, documents and materials obtained by Buyer from third parties in
connection with the Property and Buyer’s investigation thereof.  Such items shall be delivered without
representation or warranty as to accuracy or completeness and with no right of
Seller to rely thereon without the consent of the third party.  Escrow Agent shall deliver all documents and
materials deposited by Seller and then in Escrow Agent’s possession to
Seller.  Upon delivery by Escrow Agent to
Seller of such documents and materials, Escrow Agent’s obligations with regard
to such documents and materials under this Agreement shall be deemed fulfilled
and Escrow Agent shall have no further liability with regard to such documents
and materials to either Seller or Buyer.

9.2           Return of Buyer’s
Documents.  If escrow or this
Agreement is terminated for any reason, Escrow Agent shall deliver all
documents and materials deposited by Buyer and then in Escrow Agent’s
possession to Buyer.  Upon delivery by
Escrow Agent

 15
 

 

to Buyer of
such documents and materials, Escrow Agent’s obligations with regard to such
documents and materials under this Agreement shall be deemed fulfilled and
Escrow Agent shall have no further liability with regard to such documents and
materials to either Seller or Buyer.

9.3           Deposit.  If escrow or this Agreement is terminated (i) pursuant
to Section 5.3, Section 10.2 or Article XII or (ii) due to the
failure of a condition set forth in Section 3.1, then Buyer shall be entitled
to obtain the return of the Deposit.  If
the closing of title does not take place and escrow or this Agreement is terminated
for any other reason, Seller shall be entitled to the Deposit by retaining or
causing Escrow Agent to deliver the Deposit to Seller.

9.4           Disbursement of
Deposit.  If Escrow Agent receives a
notice from either party instructing Escrow Agent to deliver the Deposit to
such party, Escrow Agent shall deliver a copy of the notice to the other party
within three days after receipt of the notice. 
If the other party does not object to the delivery of the Deposit as set
forth in the notice within three business days after receipt of the copy of the
notice, Escrow Agent shall, and is hereby authorized to, deliver the Deposit to
the party requesting it pursuant to the notice. 
Any objection hereunder shall be by notice setting forth the nature and
grounds for the objection and shall be sent to Escrow Agent and to the party
requesting the Deposit.

9.5           No Effect on
Rights of Parties; Survival.  The
return of documents and monies as set forth above shall not affect the right of
either party to seek such legal or equitable remedies as such party may have
under Article X with respect to the enforcement of this Agreement.  The obligations under this Article IX shall
survive termination of this Agreement.

ARTICLE X

DEFAULT

10.1         Seller’s Remedies.  If the sale is not completed as herein
provided solely by reason of any material default of Buyer, Seller shall be
released from any further obligations hereunder.  Insofar as it would be extremely
impracticable and difficult to estimate the damage and harm which Seller would
suffer due to such failure, and insofar as a reasonable estimate of the total
net detriment that Seller would suffer from such failure is the amount of the
Deposit, Seller shall retain or cause Escrow Agent to deliver the Deposit to
Seller, which amount is not intended to be and is not a penalty, and which
shall be Seller’s sole remedy for damages arising from Buyer’s failure to
complete the acquisition.  If Seller is
released pursuant to this Section, Buyer shall deliver an instrument confirming
such release promptly upon demand of Seller.

10.2         Buyer’s Remedies.  If the sale is not completed as herein
provided solely by reason of any material default of Seller, Buyer shall be
entitled to (i) terminate this Agreement (by delivering
notice to Seller which includes a waiver of any right, title or interest of
Buyer in the Property) and obtain the return of the Deposit and, in the event

 16
 

 

such
default by Seller was willful and in bad faith or based on fraud or in the
event that specific performance is otherwise not available, have Seller
reimburse Buyer up to $75,000 in the aggregate of Buyer’s documented,
third-party due diligence costs or (ii) treat this Agreement as being in
full force and effect and pursue only the specific performance of this
Agreement.  Buyer waives any right
to pursue any other remedy at law or equity for such default of Seller,
including, without limitation, any right to seek, claim or obtain damages,
punitive damages or consequential damages.

ARTICLE XI

REPRESENTATIONS AND WARRANTIES

11.1         Seller’s
Warranties and Representations.  The
matters set forth in this Section 11.1 constitute representations and
warranties by Seller which are now and (subject to matters contained in any
notice given pursuant to the next succeeding sentence) shall, in all material
respects, at the Closing be true and correct. 
If Seller learns of, or has a reason to believe that any of the
following representations and warranties may cease to be true, Seller shall
give prompt notice to Buyer (which notice shall include copies of the
instrument, correspondence, or document, if any, upon which Seller’s notice is
based).  As used in this Section 11.1,
the phrase “to the extent of Seller’s actual knowledge” shall mean the actual
knowledge of Kimberly
Adams, the asset manager responsible for the Property.  There shall be no duty imposed or implied to
investigate, inspect, or audit any such matters, and there shall be no personal
liability on the part of such asset manager. 
To the extent Buyer has or acquires actual knowledge or is deemed to
know prior to the expiration of the Investigation Period that these
representations and warranties are inaccurate, untrue or incorrect in any way,
such representations and warranties shall be deemed modified to reflect Buyer’s
knowledge or deemed knowledge.  Buyer
shall be deemed to know a representation or warranty is untrue, inaccurate or
incorrect if this Agreement or any files, documents, materials, analyses,
studies, tests, or reports disclosed or made available to Buyer prior to the
expiration of the Investigation Period contains information which is
inconsistent with such representation or warranty.

11.1.1      No Broker.  Seller has not engaged or dealt with any
broker or finder in connection with the sale contemplated by this Agreement,
except Jones
Lang LaSalle Americas, Inc., a Maryland
corporation (the “Broker”). 
Seller shall pay all brokerage commissions to the Broker, as the Broker
may be entitled thereto pursuant to the terms of a separate written
agreement.  Seller shall indemnify and
hold harmless Buyer from any claims, costs, damages or liabilities (including
attorneys’ fees) for the payment of all brokerage fees and commissions arising
from any breach of the representation contained in this Section 11.1.1 or if
the same shall be based on any statement, representation or agreement by Seller
with respect to the payment of any brokerage commissions or finders fees.

11.1.2      Power and Authority.  Seller has the legal power, right and
authority to enter into this Agreement and to consummate the transactions
contemplated hereby.

 17
 

 

11.1.3         Proceedings.  To the extent of Seller’s actual knowledge,
there is no pending or threatened condemnation or similar proceeding affecting
any part of the Real Property.

11.1.4         Contravention.  Seller is not prohibited from consummating
the transactions contemplated by this Agreement by any law, regulation,
agreement, instrument, restriction, order, or judgment.

11.1.5         Ground Lease, Leases and Contracts.  The Ground Lease, the Leases and the
Contracts comprise all of the leases and contracts which will affect the
Property on and after the Closing.

11.1.6         Compliance.  Seller has not received written notice from
any governmental authority that the Property is not in material compliance with
all applicable laws, except for such failures to comply, if any, which have
been remedied.

11.1.7         Employees.  Seller has no employees on-site at the
Property providing on-site services to the Property and all such services are
performed by Seller’s manager of the Property.

11.1.8         Litigation.  To the extent of Seller’s actual knowledge,
there is no material litigation, pending or threatened, affecting the Property
which litigation is not covered by insurance.

11.1.9         Environmental.  To the extent of Seller’s actual knowledge,
Seller has not received a written notice of any violation of environmental laws
with respect to the existence of any hazardous conditions at the Real Property.

11.1.10       Lease Defaults.  To the extent of Seller’s actual knowledge,
Seller has not received any written notice of a default from a tenant under any
Lease.

11.2         Buyer’s Warranties
and Representations.  The matters set
forth in this Section 11.2 constitute representations and warranties by Buyer
which are now and shall, at the Closing, be true and correct.

11.2.1      No Broker.  Except for the Broker, Buyer has not engaged
or dealt with any broker or finder in connection with the sale contemplated by
this Agreement.  Buyer shall indemnify
and hold Seller harmless from any claims, costs, damages or liabilities
(including attorneys’ fees) arising from any breach of the representation
contained in this Section 11.2.1 or if the same shall be based on any
statement, representation or agreement by Buyer with respect to the payment of
any brokerage commissions or finders fees.

11.2.2      Power and Authority.  Buyer has the legal power, right and
authority to enter into this Agreement and to consummate the transactions
contemplated hereby.

 18
 

 

11.2.3      Independent Investigation.  The consummation of this transaction shall
constitute Buyer’s acknowledgment that it has independently inspected and
investigated the Property and has made and entered into this Agreement based
upon such inspection and investigation and its own examination of the condition
of the Property.

11.2.4      Buyer Reliance.  Buyer is experienced in and knowledgeable
about the ownership and management of commercial real estate properties, and it
has relied and will rely exclusively on its own consultants, advisors, counsel,
employees, agents, principals and/or studies, investigations and/or inspections
with respect to the Property, its condition, value and potential.  Buyer agrees that, notwithstanding the fact
that it has received certain information from Seller or its agents or
consultants, Buyer has relied solely upon and will continue to rely solely upon
its own analysis and will not rely on any information provided by Seller or its
agents or consultants, except as expressly set forth in Section 11.1.

11.2.5      ERISA.  In connection with the acquisition of the
property which is the subject of this Agreement, Buyer is not using the assets
of any employee benefit plan (within the meaning of Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended).

11.2.6      Patriot Act.

(i)            Buyer is in compliance with the
requirements of Executive Order No. 133224, 66 Fed. Reg. 49079 (Sept. 25, 2001)
(the “Order”) and other similar requirements contained in the rules and
regulations of the Office of Foreign Assets Control, Department of the Treasury
(“OFAC”) and in any enabling legislation or other Executive Orders or
regulations in respect thereof (the Order and such other rules, regulations,
legislation, or orders are collectively called the “Orders”).  Further, Buyer covenants and agrees to make
its policies, procedures and practices regarding compliance with the Orders, if
any, available to Seller for its review and inspection during normal business
hours and upon reasonable prior notice.

(ii)           Neither Buyer nor any beneficial
owner of Buyer:

(1)           is listed on the Specially Designated
Nationals and Blocked Persons List maintained by OFAC pursuant to the Order
and/or on any other list of terrorists or terrorist organizations maintained
pursuant to any of the rules and regulations of OFAC or pursuant to any other
applicable Orders (such lists are collectively referred to as the “Lists”);

(2)           is a person or entity who has been
determined by competent authority to be subject to the prohibitions contained
in the Orders; or

 19
 

 

(3)           is owned or controlled by, or acts
for or on behalf of, any person or entity on the Lists or any other person or
entity who has been determined by competent authority to be subject to the
prohibitions contained in the Orders.

(iii)          Buyer hereby covenants and agrees that
if Buyer obtains knowledge that Buyer or any of its beneficial owners becomes
listed on the Lists or is indicted, arraigned, or custodially detained on
charges involving money laundering or predicate crimes to money laundering,
Buyer shall immediately notify Seller in writing, and in such event, Seller
shall have the right to terminate this Agreement without penalty or liability
to Buyer immediately upon delivery of written notice thereof to Buyer.

11.3         No Other
Warranties and Representations. 
Except as specifically set forth in this Article XI, neither Seller nor
Buyer have made, make or have authorized anyone to make, any warranty or
representation as to the Ground Lease, the Development Agreement, the Leases,
the Contracts, any written materials delivered to Buyer, the persons preparing
such materials, the present or future physical condition, development
potential, zoning, building or land use law or compliance therewith (including,
without limitation, the Americans with Disabilities Act), operation, income
generated by, or any other matter or thing affecting or relating to the
Property or any matter or thing pertaining to this Agreement.  Buyer expressly acknowledges that no such
warranty or representation has been made and that Buyer is not relying on any
warranty or representation whatsoever other than as is expressly set forth in
this Article XI.  Buyer shall accept the
Property “as is” and in its condition on the date of Closing subject only to
the express provisions of this Agreement.

11.3.1      DISCLAIMER AS TO THE PROPERTY.  EXCEPT AS EXPRESSLY SET FORTH IN SECTION
11.1, IT IS UNDERSTOOD AND AGREED THAT SELLER IS NOT MAKING AND HAS NOT AT ANY
TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS
OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY
WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE.

11.3.2      “AS IS” SALE.  BUYER ACKNOWLEDGES AND AGREES THAT UPON
CLOSING SELLER SHALL SELL AND CONVEY TO BUYER AND BUYER SHALL ACCEPT THE PROPERTY
“AS IS, WHERE IS, WITH ALL FAULTS”, EXCEPT TO THE EXTENT EXPRESSLY
PROVIDED OTHERWISE IN THIS AGREEMENT. 
BUYER ALSO ACKNOWLEDGES THAT THE PURCHASE PRICE REFLECTS AND TAKES INTO
ACCOUNT THAT THE PROPERTY IS BEING SOLD “AS-IS.”

11.3.3      PHYSICAL AND ENVIRONMENTAL MATTERS.  BUYER REPRESENTS TO SELLER THAT BUYER HAS
CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE

 20
 

 

PROPERTY, INCLUDING BUT NOT LIMITED TO, THE
PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AS BUYER DEEMS NECESSARY OR DESIRABLE
TO SATISFY ITSELF AS TO THE CONDITION OF THE PROPERTY AND THE EXISTENCE OR
NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR
TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY, AND WILL RELY SOLELY UPON
SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS
AGENTS OR EMPLOYEES WITH RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS,
WARRANTIES AND COVENANTS OF SELLER AS ARE EXPRESSLY SET FORTH IN SECTION
11.1.  UPON CLOSING, BUYER SHALL ASSUME
THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION
DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN
REVEALED BY BUYER’S INVESTIGATIONS, AND BUYER, UPON CLOSING, SHALL BE DEEMED TO
HAVE WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S OFFICERS,
DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) FROM AND AGAINST ANY AND ALL
CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT) LOSSES,
DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES)
OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH BUYER MIGHT
HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER’S OFFICERS, DIRECTORS,
SHAREHOLDERS, EMPLOYEES AND AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT OF
ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS OF
ANY APPLICABLE LAWS AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS,
CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY.

ARTICLE XII

CASUALTY AND CONDEMNATION

Promptly upon learning
thereof, Seller shall give Buyer written notice of any condemnation, damage or
destruction of the Real Property occurring prior to the Closing.  If prior to the Closing all or a material
portion of the Real Property is condemned, damaged or destroyed, Buyer shall
have the option of either (i) applying the proceeds of any
condemnation award or payment under any insurance policies toward the payment
of the Purchase Price to the extent such condemnation awards or insurance
payments have been received by Seller, receiving from Seller an amount equal to
any applicable deductible under any such insurance policy and receiving an
assignment from Seller of Seller’s right, title and interest in any such awards
or payments, or (ii) terminating this Agreement by delivering
written notice of such termination to Seller and Escrow Agent within ten days
after Buyer has received written notice from Seller of such material
condemnation, damage or destruction.  If
prior to the Closing an immaterial

 21
 

 

portion of the Real Property is condemned, damaged or
destroyed, the proceeds of any condemnation award or payment and any applicable
deductible under any insurance policies shall be applied toward the payment of
the Purchase Price to the extent such condemnation awards or insurance payments
have been received by Seller and Seller shall assign to Buyer all of Seller’s
right, title and interest in any such awards or payments.

ARTICLE XIII

CONDUCT PRIOR TO CLOSING

13.1         Conduct.  From and after the date hereof, Seller shall
operate the Property in accordance with its standard business procedures.

13.2         Actions Prohibited.  Seller shall not, without the prior written
approval of Buyer, which approval will not be unreasonably withheld or delayed:

(i)            make any material structural
alterations or additions to the Real Property or the Air Rights Parcel except
as (a) in the ordinary course of operating the Real Property, (b) required for
maintenance and repair or (c) required by the Ground Lease, the Development
Agreement, any of the Leases or the Contracts;

(ii)           sell, transfer, encumber or change
the status of title of all or any portion of the Real Property or the Air
Rights Parcel;

(iii)          change or attempt to change, directly
or indirectly, the current zoning of the Real Property or the Air Rights Parcel
in a manner materially adverse to it; or

(iv)          cancel, amend or modify, in a manner
materially adverse to the Property, any license or permit held by Seller with
respect to the Property or any part thereof which would be binding upon Buyer
after the Closing.

13.3         Modification
of Existing Ground Lease, Development Agreement, Leases and Contracts.  Prior to the expiration of the Investigation
Period, Seller may cancel, amend and modify the Ground Lease, the Development
Agreement, any of the Leases and any of the Contracts, provided notice
is given to Buyer within five business days after such action and in any event
at least two business days prior to the expiration of the Investigation
Period.  After the expiration of the
Investigation Period, Seller may not cancel, amend, or modify any material
Contracts, Leases, the Development Agreement or the Ground Lease, in a manner
binding upon Buyer after the Closing, unless Seller gives Buyer notice within
five business days after such action and provided such action is (i) in
the ordinary course of operating the Property, (ii) required by the Ground
Lease, the Development Agreement, any of the Leases or any of the Contracts or
(iii) approved by Buyer which approval will not be unreasonably withheld or
delayed.

 22
 

 

If Seller shall request Buyer’s approval to any of the
foregoing matters, Buyer shall have five days from its receipt of such request
to give Seller notice of its approval or disapproval of such matter.  If Buyer does not give such notice, such matter
shall be deemed approved by Buyer.

13.4         New Leases and
Contracts.  Prior to the expiration
of the Investigation Period, Seller may enter into any new lease or contract
affecting the Property, or any part thereof, provided notice is given to
Buyer within five business days after such action and in any event at least two
business days prior to the expiration of the Investigation Period.  After the expiration of the Investigation
Period, Seller may not enter into any new lease or contract without Buyer’s
consent, which consent will not be unreasonably withheld or delayed.  Notwithstanding the preceding sentence, after
the expiration of the Investigation Period, Seller may enter into any new
contracts without Buyer’s consent if doing so is in the ordinary course of
operating the Property and the contract (i) will not be binding on Buyer or
(ii) is cancelable on thirty days or less notice without penalty or premium.

If Seller shall request Buyer’s approval to any of the
foregoing matters, Buyer shall have five days from its receipt of such request
to give Seller notice of its approval or disapproval of such matter.  If Buyer does not give such notice, such
matter shall be deemed approved by Buyer.

13.5         Confidentiality.  Seller and Buyer shall, prior to the Closing,
maintain the confidentiality of this sale and purchase and shall not, except as
required by law or governmental regulation applicable to Seller or Buyer,
disclose the terms of this Agreement or of such sale and purchase to any third
parties whomsoever other than the principals of the Broker, Escrow Agent, the
Title Company and such other persons whose assistance is required in carrying
out the terms of this Agreement.  Neither
Seller nor Buyer shall at any time issue a press release or otherwise
communicate with media representatives regarding this sale and purchase unless
such release or communication has received the prior approval of the other
party hereto. At no time shall Buyer without Seller’s consent disclose the
Purchase Price or the identity of Seller, J.P. Morgan Investment Management
Inc. or JPMorgan Chase Bank, N.A., as advisor to Seller.  Buyer agrees that all documents and
information regarding the Property of whatsoever nature made available to it by
Seller or Seller’s agents and the results of all tests and studies of the
Property (collectively, the “Proprietary Information”) are confidential and
Buyer shall not disclose any Proprietary Information to any other person except
those assisting it with the analysis of the Property, and only after procuring
such person’s agreement to abide by these confidentiality restrictions.  “Proprietary Information” shall not include
any information published by Seller as public knowledge or that is otherwise
available in the public domain.  The
second and third sentence of this Section 13.5 shall survive the Closing or
termination of the Agreement.  The
remaining portion of this Section 13.5 shall terminate upon Closing.

13.6         Right to Cure.  If any title defect or other matter which
would entitle Buyer to terminate this Agreement shall first arise after Buyer
notifies Seller of its Title Objections pursuant to Section 5.3.1 and prior to
the Closing, Seller may elect, by written

 23
 

 

notice to
Buyer, to cure such defect or other matter by causing it to be removed, insured
over or bonded and Seller may adjourn the Closing for up to thirty days to do
so.  Except for Mandatory Cure Objections, all of which Seller must cure, nothing
contained in this Section 13.6 shall require Seller to cure any such title
defect or other matter or to incur any liability or expense to do so.

13.7         SEC Reporting Requirements.  For
the period of time commencing on the date of this Agreement and continuing
through the date that is 180 days after the Closing Date, Seller shall, from
time to time, upon five days’ prior written notice from Buyer, provide Buyer
and its outside third-party accountants (“Buyer’s Accountants”) with access to
such books, records and materials relating solely to the operations and
financial results of the Property for the fiscal years that ended on December
31, 2003, December 31, 2004 and December 31, 2005 and for the nine months that
end on September 30, 2006 (or if Seller extends the Closing beyond December 31,
2006 pursuant to Section 6.2, then for the fiscal year that ends on December
31, 2006 and any interim period between January 1, 2007 and the date of
Closing), as may be reasonably required to enable Buyer and Buyer’s Accountants
to prepare property income statements in compliance with any or all of (i) Rule
3-05 or 3-14 of Regulation S-X of the Securities and Exchange Commission (the “Commission”),
as applicable; (ii) any other rule issued by the Commission and applicable to
Buyer; and (iii) any registration statement, report or disclosure statement
filed with the Commission by, or on behalf of Buyer.  During the period of time commencing on the
date of this Agreement and continuing through the date that is 180 days after
the Closing Date, Seller shall, from time to time, upon reasonable advance
notice from Buyer, make Kimberly Adams and/or Michael Diana available (or if
either person is not available, such other available and appropriate person
employed by Advisor) to answer any questions that Buyer or Buyer’s Accountants
may have with respect to the management and operations of the Property with
respect to income and operating expenses. 
The foregoing access right shall not include access to (a) books,
records and documents of Seller relating to Seller’s organization, (b)
agreements among its shareholders and (c) materials that are subject to the
attorney-client privilege or which is attorney work product.  All costs incurred as a result of Buyer and
Buyer’s Accountants undertaking the foregoing activities shall be borne
exclusively by Buyer.  All books,
records, materials and responses to questions provided to Buyer or Buyer’s
Accountants pursuant to this Section 13.7 shall be provided without
representation or warranty as to accuracy or completeness or otherwise; however,
Seller agrees to provide good faith responses to Buyer’s questions relating to
the management and operations of the Property with respect to income and
operating expenses.  All such activities
described in this Section 13.7 shall be conducted at Seller’s or its agent’s
place of business in a commercially reasonable fashion during normal business
hours.  This Section 13.7 shall survive
the Closing for the time period set forth herein.

ARTICLE XIV

NOTICES

All notices, demands or other communications given
hereunder shall be in writing and shall be deemed to have been duly delivered
upon the receipt by facsimile

 24
 

 

transmission as evidenced by receipt transmission
report, or upon the delivery by overnight express delivery service, addressed
as follows:

If to Buyer, to:

Harvard Property Trust, LLC

15601
Dallas Parkway, Suite 600

Addison,
Texas  75001

Attention:  Jon Dooley

Telephone: (214) 655-1600

Facsimile: (214) 655-1610

and

Harvard Property Trust, LLC

One Paces West

2727 Paces Ferry Road

Suite 1730

Atlanta, Georgia 30339

Attention:  Josh Taylor

Telephone:  (404) 446-1705

Facsimile: (404) 446-1718

with a copy to:

Powell &
Coleman, L.L.P.

8080 N. Central
Expressway, Suite 1380

Dallas, Texas  75206

Attention:  Randall S. Osborne

Telephone: (214)
890-7116

Facsimile: (214)
373-8768

If to Seller, to:

North Atlanta
Realty Acquisition Company, Inc.

c/o J.P. Morgan
Investment Management Inc.

227 W. Monroe

27th Floor

Chicago, Illinois
60606

Attention: Ms.
Kimberly A. Adams

Telephone:  (312) 541-0249

Facsimile:  (312) 541-2462

 25

 

with a copy
to:

Debevoise & Plimpton LLP

919 Third Avenue

New York, New York  10022

Attention: Peter J. Irwin, Esq.

Telephone:  (212) 909-7469

Facsimile:  (212) 909-6836

If to Escrow Agent, to:

Partners Title Company

712 Main Street, Suite 2000E

Houston, Texas 77002-3215

Attention:
Reno Hartfiel

Telephone: (713) 229-8484

Facsimile: (713) 238-9199

or to such other address or to such other person as
any party shall designate to the others for such purpose in the manner
hereinabove set forth.

ARTICLE XV

TRANSFER OF TITLE AND POSSESSION

15.1         Transfer of
Possession.  Possession of the
Property shall be transferred to Buyer at the time of Closing subject to the
Permitted Encumbrances, together with all available keys or access cards used
with respect to the Property in Seller’s possession.

15.2         Delivery of
Documents at Closing.  At the time of
Closing, Seller shall deliver to Buyer originals or copies of any additional
documents, instruments or records in the possession of Seller or its agents
which are necessary for the ownership and operation of the Property.

ARTICLE XVI

GENERAL PROVISIONS

16.1         Captions.  Captions in this Agreement are inserted for
convenience of reference only and do not define, describe or limit the scope or
the intent of this Agreement or any of the terms hereof.

16.2         Exhibits.  All exhibits referred to herein and attached
hereto are a part hereof.

16.3         Entire Agreement.  This Agreement contains the entire agreement
between the parties relating to the transaction contemplated hereby and all prior
or

 26
 

 

contemporaneous
agreements, understandings, representations and statements, oral or written,
are merged herein.

16.4         Modification.  No modification, waiver, amendment, discharge
or change of this Agreement shall be valid unless the same is in writing and
signed by the party against which the enforcement of such modification, waiver,
amendment, discharge or change is or may be sought.

16.5         Attorneys’ Fees.  Should any party hereto employ an attorney
for the purpose of enforcing or construing this Agreement, or any judgment
based on this Agreement, in any legal proceeding whatsoever, including
insolvency, bankruptcy, arbitration, declaratory relief or other litigation,
the prevailing party shall be entitled to receive from the other party or
parties thereto reimbursement for all reasonable attorneys’ fees and all costs,
including but not limited to service of process, filing fees, court and court
reporter costs, investigative costs, expert witness fees and the cost of any
bonds, whether taxable or not, and such reimbursement shall be included in any
judgment, decree or final order issued in that proceeding.  The “prevailing party” means the party in
whose favor a judgment, decree, or final order is rendered.

16.6         Governing Law.  This Agreement shall be construed and
enforced in accordance with the laws of the State in which the Property is
located.

16.7         Time of Essence.  Time is of the essence to this Agreement and
to all dates and time periods set forth herein.

16.8         Survival of
Warranties.  The warranties and
representations contained in Sections 11.1 and 11.2 and the provisions of
Section 11.3 shall survive the Closing, the delivery of the Deed and the
payment of the Purchase Price, provided that (i) such
representations and warranties (but not such provisions) shall cease and
terminate nine (9) months after the date of Closing, except to the extent that
Buyer or Seller, as the case may be, shall have commenced, on or before the
expiration of such nine (9) month period, a legal proceeding based on the breach
thereof as of the date of Closing, and (ii) the maximum total
liability for which Seller shall be responsible with respect to all
representations and warranties shall not exceed $2,000,000 in the aggregate,
and no claim for breach of representation or warranty may be made unless the
claims, individually or in the aggregate, shall be in excess of $50,000 after
taking into account all prior claims. 
Unless otherwise expressly herein stated to survive, all other representations,
covenants, conditions and agreements contained herein shall merge into and be
superseded by the various documents executed and delivered at Closing and shall
not survive the Closing or the termination of this Agreement.  Seller shall have no liability to Buyer after
Closing for any matter disclosed by Seller or learned by Buyer prior to
Closing.

16.9         Assignment by
Buyer.  Buyer may not assign its
rights under this Agreement except as specifically set forth in this Section
16.9.  Buyer may assign its rights under
this Agreement to another entity provided that (i) Buyer notifies Seller
of such assignment and the identity of the assignee at least three business
days prior to the date of the Closing, (ii) such entity is controlled or
managed directly or indirectly by

 27
 

 

Buyer or is
under common control with Buyer and (iii) Buyer shall remain liable for
all of its obligations hereunder until the date of Closing.  Any such assignee shall assume in writing all
the obligations and liabilities of Buyer hereunder.  If such assignment is made, then the sale
contemplated by this Agreement shall be consummated in the name of, and by and
through the authorized officials of, any such assignee or designee.

16.10       Severability.  If any term, covenant, condition, provision
or agreement herein contained is held to be invalid, void or otherwise
unenforceable by any court of competent jurisdiction, the fact that such term,
covenant, condition, provision or agreement is invalid, void or otherwise
unenforceable shall in no way affect the validity or enforceability of any
other term, covenant, condition, provision or agreement herein contained.

16.11       Successors and
Assigns.  All terms of this Agreement
shall be binding upon, inure to the benefit of and be enforceable by, the
parties hereto and their respective legal representatives, successors and
assigns (subject to Section 16.9).

16.12       Interpretation.  Seller and Buyer acknowledge each to the
other that both they and their counsel have reviewed and revised this Agreement
and that the normal rule of construction to the effect that any ambiguities are
to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or any amendments or exhibits hereto.

16.13       Counterparts.  This Agreement may be executed in any number
of counterparts, each of which so executed shall be deemed original; such
counterparts shall together constitute but one agreement.

16.14       Recordation.  This Agreement may not be recorded and any
attempt to do so shall be of no effect whatsoever.

16.15       Limitation on
Liability.  In any action brought to
enforce the obligations of Seller under this Agreement, the judgment or decree
shall be subject to the provisions of Section 16.8.  In connection with this Agreement, Advisor is
acting as the investment advisor to Seller and shall not have any individual
liability hereunder.  No shareholder,
officer, employee or agent of or consultant to Advisor or of Seller shall be
held to any personal liability hereunder, and no resort shall be had to their
private property, or the private property of Advisor or of Seller for the
satisfaction of any claims hereunder or in connection with the affairs of
Advisor or of Seller.

16.16       Calculation of Time
Periods.  Unless otherwise specified,
in computing any period of time described in this Agreement, the day of the act
or event after which the designated period of time begins to run is not to be
included and the last day of the period so computed is to be included, unless
such last day is a Saturday, Sunday or legal holiday under the laws of the
State of New York, in which event the period shall run until the end of the
next day which is neither a Saturday nor a Sunday nor a legal holiday.

 28
 

 

ARTICLE XVII

ESCROW AGENT DUTIES AND
DISPUTES

17.1         Other Duties of
Escrow Agent.  Escrow Agent shall not
be bound in any way by any other agreement or contract between Seller and
Buyer, whether or not Escrow Agent has knowledge thereof.  Escrow Agent’s only duties and
responsibilities shall be to hold the Deposit and other documents delivered to
it as agent and to dispose of the Deposit and such documents in accordance with
the terms of this Agreement.  Without
limiting the generality of the foregoing, Escrow Agent shall have no
responsibility to protect the Deposit and shall not be responsible for any failure
to demand, collect or enforce any obligation with respect to the Deposit or for
any diminution in value of the Deposit from any cause, other than Escrow Agent’s
gross negligence or willful misconduct. 
Escrow Agent may, at the expense of Seller and Buyer, consult with
counsel and accountants in connection with its duties under this
Agreement.  Escrow Agent shall be fully
protected in any act taken, suffered or permitted by it in good faith in
accordance with the advice of counsel and accountants.  Escrow Agent shall not be obligated to take
any action hereunder that may, in its reasonable judgment, involve it in any
liability unless Escrow Agent shall have been furnished with reasonable
indemnity satisfactory in amount, form and substance to Escrow Agent.

17.2         Disputes.  Escrow Agent is acting as a stakeholder only
with respect to the Deposit.  If there is
any dispute as to whether Escrow Agent is obligated to deliver the Deposit or
as to whom the Deposit is to be delivered, Escrow Agent shall not make any
delivery, but shall hold the Deposit until receipt by Escrow Agent of an
authorization in writing, signed by all the parties having an interest in the
dispute, directing the disposition of the Deposit, or, in the absence of
authorization, Escrow Agent shall hold the Deposit until the final
determination of the rights of the parties in an appropriate proceeding.  Escrow Agent shall have no responsibility to
determine the authenticity or validity of any notice, instruction, instrument,
document or other item delivered to it, and it shall be fully protected in
acting in accordance with any written notice, direction or instruction given to
it under this Agreement and believed by it to be authentic.  If written authorization is not given, or
proceedings for a determination are not begun, within thirty (30) days after
the date scheduled for the closing of title and diligently continued, Escrow
Agent may, but is not required to, bring an appropriate action or proceeding
for leave to deposit the Deposit with a court of the State of New York pending
a determination.  Escrow Agent shall be
reimbursed for all costs and expenses of any action or proceeding, including,
without limitation, attorneys’ fees and disbursements incurred in its capacity
as Escrow Agent, by the party determined not to be entitled to the
Deposit.  Upon making delivery of the
Deposit in the manner provided in this Agreement, Escrow Agent shall have no
further liability hereunder.  In no event
shall Escrow Agent be under any duty to institute, defend or participate in any
proceeding that may arise between Seller and Buyer in connection with the
Deposit.

[Signature Page Follows.]

 29

 

IN WITNESS
WHEREOF, this Agreement has been executed as of the date first set forth above.

	
  

  	
   

  	
  SELLER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NORTH ATLANTA REALTY ACQUISITION

  COMPANY, INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BUYER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HARVARD PROPERTY TRUST, LLC, a

  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
   

  	
   

  
							

 

CONSENT AND AGREEMENT OF ESCROW AGENT

The undersigned Escrow Agent hereby acknowledges
receipt of the Deposit and agrees to (i) accept the foregoing
Agreement, (ii) be escrow agent under said Agreement, and (iii) be
bound by said Agreement in the performance of its duties as escrow agent.

	
  

  	
   

  	
  PARTNERS TITLE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
   

  	
   

  
							

 

 

EXHIBIT A

Description of Land

Parcel A:

All of the air space and air rights appurtenant
thereto over and above a horizontal plane at an elevation of 1,030 feet above
the United States Coast and Geodetic Survey 1929 Adjusted Mean Sea Level lying
within the boundaries of the following described property:

All that tract or parcel of land lying and being in
Land Lot 9 of the 17th District, City of Atlanta, Fulton Country,
Georgia, being shown as Parcel 1 on Survey of Resurgens Plaza for Resurgens
Plaza South Associates, L.P. and/or Its Assigns and Chicago Title Insurance
Company, dated October 2, 1997, as revised October 21, 1997, and certified by
John D. Roeser, Georgia Registered Land Surveyor #2073, Roeser Consultants,
Inc,. containing 71,179 square feet or 1.6340 acres as per said Survey, and
being more particularly described as follows:

TO FIND THE TRUE POINT OF BEGINNING, begin at the
point of intersection of the centerline of Lenox Road and the southeasterly
right of way line of East Paces Ferry Road (if extended to the center line of
Lenox Road), and run thence North 59 degrees 06 minutes 53 seconds East, along
the southeasterly right of way line of East Paces Ferry Road, a distance of
492.99 feet to a point, which is the TRUE POINT OF BEGINNING. From said TRUE
POINT OF BEGINNING, run thence North 54 degrees 42 minutes 25 seconds East,
along the southeasterly right of way line of East Paces Ferry Road, a distance
of 41.28 feet to a point; run thence northeasterly, along the southeasterly
right of way line of East Paces Ferry Road and along the arc of a curve to the
right having a radius of 1776.93 feet, a distance of 98.04 feet to a point
(said curve being subtended by a chord of North 56 degrees 18 minutes 20
seconds East, a distance of 98.03 feet); run thence North 57 degrees 53 minutes
11 seconds East, along the southeasterly right of way line of East Paces Ferry
Road, a distance of 114.87 feet to a point; run thence North 57 degrees 53
minutes 11 seconds East, along the southeasterly right of way line of East
Paces Ferry Road, a distance of 333.85 feet to a point, said point also being
formerly at the intersection of the southwesterly right of way of Lakeside
Drive (now closed) and said point also being located a distance of 259.88 feet
on a bearing of South 04 degrees 12 minutes 48 seconds East to MARTA Monument
N-47; leaving the southeasterly right of way line of East Paces Ferry Road, run
thence South 28 degrees 52 minutes 09 seconds East, a distance of 117.51 feet
to a point; run thence South 56 degrees 42 minutes 08 seconds West, a distance
of 136.16 feet to a point; run thence South 58 degrees 40 minutes 13 seconds
West, a distance of 51.10 feet to a point; run thence South 56 degrees 54
minutes 26 seconds West, a distance of 120.24 feet to a point; run thence South
58 degrees 20 minutes 24 seconds West, a distance of 19.76 feet to a point; run
thence South 58 degrees 20 minutes 24 seconds West, a distance of

 A-1
 

 

20.33 feet to a point; run thence South 55 degrees 28
minutes 29 seconds West, a distance of 40.09 feet to a point;  run thence South 56 degrees 54 minutes 31
seconds West, a distance of 80.16 feet to a point; run thence South 56 degrees
54 minutes 27 seconds West, a distance of 120.23 feet to a point; run thence
North 28 degrees 57 minutes 57 seconds West, a distance of 119.98 feet to a
point; run thence North 28 degrees 57 minutes 57 seconds West, a distance of
1.50 feet to a point on the southeasterly right of way line of East Paces Ferry
Road at the TRUE POINT OF BEGINNING. Also, such limited support rights in the
property as are reasonable for the development of said air space in accordance
with the Declarations and Grants of Easements pertaining to the above described
property defined as Declarations under Section 1.1(12) of the Development Agreement
referred to below.

The air rights above specifically include such limited
support rights in the above property as are reasonable for the development of
said air space in accordance with and as set forth in that certain Development
Agreement between Metropolitan Atlanta Rapid Transit Authority and Resurgens
Plaza-AHE, Inc. and Resurgens Plaza-Sonnet, Inc., both Georgia Corporations,
doing business as Resurgens Plaza Company, a Georgia General Partnership, dated
November 10, 1982, recorded in Deed Book 8287, page 1, Fulton Country, Georgia
Records, as amended by First Amendment to Development Agreement, dated
September 30, 1983.

TOGETHER WITH the right to repurchase from the
Metropolitan Atlanta Rapid Transit Authority the property subjacent to the above
described air space and air rights on the terms and conditions specified in the
deeds whereby Metropolitan Atlanta Rapid Transit Authority acquitted its title
in said subjacent property.

Also:

Parcel B:

That certain leasehold estate created by Lease between
Metropolitan Atlanta Rapid Transit Authority and Resurgens Plaza South, Inc.,
dated May 29, 1984, recorded in Deed Book 8994, page 396, Fulton County,
Georgia, Records, as amended by First Amendment thereto dated May 29, 1984,
recorded in Deed Book 8994, page 448, aforesaid records; as further amended by
Second Amendment thereto, dated July 1, 1984, recorded in Deed Book 9392, page
398, aforesaid records; as further amended by Third Amendment thereto, dated
February 19, 1986, recorded in Deed Book 9971, page 106, aforesaid records; as
further amended by Fourth Amendment thereto, dated August 1, 1986, recorded in
Deed Book 10277, page 168, aforesaid records, in and to the following described
property:

Parcel I :

All that tract or parcel of land lying and being in
Land Lot 9 of the 17th District, City of Atlanta, Fulton County,
Georgia, being shown as Parcel 1 on Survey of Resurgens Plaza for Resurgens
Plaza South Associates, L.P. and/or Its Assigns

 A-2
 

 

and Chicago Title Insurance Company, dated October 2,
1997, as revised October 21, 1997, and certified by John D. Roeser, Georgia
Registered Land Surveyor #2073, Roeser Consultants, Inc., containing 71,179
square feet or 1.6340 acres as per said Survey, and being more particularly
described as follows:

TO FIND THE TRUE POINT OF BEGINNING, begin at the
point of intersection of the centerline of Lenox Road and the southeasterly
right of way line of East Paces Ferry Road (if extended to the center line of
Lenox Road), and run thence North 59 degrees 06 minutes 53 seconds East, along
the southeasterly right of way line of East Paces Ferry Road, a distance of
492.99 feet to a point, which is the TRUE POINT OF BEGINNING. From said TRUE
POINT OF BEGINNING, run thence North 54 degrees 42 minutes 25 seconds East,
along the southeasterly right of way line of East Paces Ferry Road, a distance
of 41.28 feet to a point, run thence northeasterly, along the southeasterly
right of way line of East Paces Ferry Road and along the arc of a curve to the
right having a radius of 1776.93 feet, a distance of 98.04 feet to a point
(said curve being subtended by a chord of North 56 degrees 18 minutes 20
seconds East, a distance of 98.03 feet); run thence North 57 degrees 53 minutes
11 seconds East, along the southeasterly right of way line of East Paces Ferry
Road, a distance of 114.87 feet to a point; run thence North 57 degrees 53
minutes 11 seconds East, along the southeasterly right of way line of East
Paces Ferry Road, a distance of 333.85 feet to a point, said point also being
formerly at the intersection of the southwesterly right of way of Lakeside
Drive (now closed) and said point also being located a distance of 259.88 feet
on a bearing of South 04 degrees 12 minutes 48 seconds East to MARTA Monument
N-47; leaving the southeasterly right of way line of East Paces Ferry Road, run
thence South 28 degrees 52 minutes 09 seconds East, a distance of 117.51 feet
to a point; run thence South 56 degrees 42 minutes 08 seconds West, a distance
of 136.16 feet to a point; run thence South 58 degrees 40 minutes 13 seconds
West, a distance of 51.0 feet to a point; run thence South 56 degrees 54
minutes 26 seconds West, a distance of 120.24 feet to a point; run thence South
58 degrees 20 minutes 24 seconds West, a distance of 19.76 feet to a point; run
thence South 58 degrees 20 minutes 24 seconds West, a distance of 20.33 feet to
a point; run thence South 55 degrees 28 minutes 29 seconds West, a distance of
40.09 feet to a point; run thence South 56 degrees 54 minutes 31 seconds West,
a distance of 80.16 feet to a point; run thence South 56 degrees 54 minutes 27
seconds West, a distance of 120.23 feet to a point; run thence North 28 degrees
57 minutes 57 seconds West, a distance of 119.98 feet to a point; run thence
North 28 degrees 57 minutes 57 seconds West, a distance of 1.50 feet to a point
on the southeasterly right of way line of East Paces Ferry Road at the TRUE
POINT OF BEGINNING.

LESS
AND EXCEPT that portion of the air space above the above-described property
lying above a horizontal plane at an elevation of 1,030 feet above United
States Coast and Geodetic Survey 1929 Adjusted Mean Sea Level.

Also:

 A-3
 

 

Parcel II:

All that tract or parcel of land lying and being in
Land Lot 9 of the 17th District, City of Atlanta, Fulton County,
Georgia, being shown as Parcel 2 on Survey of Resurgens Plaza for Resurgens
Plaza South Associates, L.P.  and/or Its
Assigns and Chicago Title Insurance Company, dated October 2, 1997, as revised
October 21, 1997, and certified by John D. Roeser, Georgia Registered Land Surveyor
#2073, Roeser Consultants, Inc., containing 2,494 square feet or 0.0573 acres
as per said Survey, and being more particularly described as follows:

TO FIND THE TRUE POINT OF BEGINNING, begin at the
point of intersection of the centerline of Lenox Road and the southeasterly
right of way line of East Paces Ferry Road (if extended to the center line of
Lenox Road) and run thence North 59 degrees 06 minutes 53 seconds East along
the southeasterly right of way line of East Paces Ferry Road, a distance of 492.99
feet to a point; run thence South 28 degrees 57 minutes 57 seconds East, a
distance of 1.50 feet to a point; run thence South 28 degrees 57 minutes 57
seconds East, a distance of 119.98 feet to a point; run thence North 56 degrees
54 minutes 27 seconds East, a distance of 120.23 feet to a point; run thence
North 56 degrees 54 minutes 31 seconds East, a distance of 80.16 feet to a
point; run thence North 55 degrees 28 minutes 29 seconds East, a distance of
40.09 feet to a point, and run thence North 58 degrees 20 minutes 24 seconds
East, a distance of 20.33 feet to the TRUE POINT OF BEGINNING: From said TRUE
POINT OF BEGINNING, run thence North 58 degrees 20 minutes 24 seconds East, a
distance of 19.76 feet to a point; run thence North 56 degrees 54 minutes 26
seconds East, a distance of 120.24 feet to a point; run thence North 58 degrees
40 minutes 13 seconds East, a distance of 51.10 feet to a point; run thence
North 56 degrees 42 minutes 08 seconds East, a distance of 136.16 feet to a
point; run thence South 28 degrees 52 minutes 09 seconds East, a distance of
10.00 feet to a point; run thence South 57 degrees 52 minutes 58 seconds West,
a distance of 326.63 feet to a point; and run thence North 32 degrees 06
minutes 49 seconds West, a distance of 6.00 feet to the TRUE POINT OF
BEGINNING.

 A-4

 

EXHIBIT B

Personal Property

Management Office- Suite 150:

Property Manager’s
Office:

1 landscape print

1 dry erase board

1 bulletin board

1 metal four drawer filing cabinet

1 wooden end table

2 striped arm chairs

1 ceramic Chinese lamp

1 wooden desk

1 executive chair

1 two drawer wooden filing cabinet

1 wooden credenza

1 NEC black flat screen computer monitor

1 Compaq computer

1 laptop

1 projector

1 HD Scan Jet 7650 scanner

1 Laserjet 5 printer

1 artificial plant in
brass planter

Assistant Property
Manager’s Office:

1 Wooden desk

1 Compaq computer

1 Benq flat screen monitor

1 George Harvey copy

1 David Law sketch

1 Artificial plant

1 Executive chair

2 Visitor chairs

1 Book Shelf w/ 5 shelves

1 Bulletin board

1 Motorola radio

1 HP laser jet printer

1 Cypress
telephone

 B-1
 

 

 Hallway:

2 ceramic plates

1 artificial plant

4 egg wall prints

1 large horse print

2 ship prints

1 wooden chair in chevron pattern

3 architectural prints

1 sideboard wooden table

1 blue vase

1 brass bowl

Copy Room:

1 Wooden desk w/four drawers

1 Gateway 2000 computer w/ keyboard

2 Four drawer filing cabinets

2 Wide four drawer filing cabinets

1 Bulletin board

1 ADDS computer monitor

1 Two drawer wide filing cabinet

1 Ranstad wall clock

1 Gray trash can w/ green top

1 Dahle #015 paper cutter

1 Small wooden table

1 Dolly

1 GBC Imagemaker 1000

1 GBC binding machine

Reception Area:

1 gold oval mirror

1 wooden bookcase w/ decorative plates, figurines and books

1 glass & brass coffee table

2 paisley side chairs

1 two drawer wooden filing cabinet

1 wooden desk

1 large estate wall print

1 wooden credenza/computer desk

1 sceptre computer

1 HP deskjet 960c printer

1 Buckingham Palace wall print

1 Hojbro wall print

2 floor plants

 B-2
 

 

Telephone Room:

1 wooden chair

1 ceramic lamp

1 Gateway 2000 computer

1 Harpers Newsweekly
print

Conference Room:

1 wooden console

1 ceramic bowl

1 large tree in brass planter

1 wooden conference table w/ glass top

6 conference room chairs in chevron print fabric

1 large farm wall print

1 13” wall mounted TV

3 pottery wall prints

2 marble columns

2 ivy plants in burgundy colored planters

2 large architectural
wall prints

Kitchen:

1 bulletin board

1 GE Spacemaker microwave

1 Mr. Coffee coffeemaker

1 large gray trash can

1 Black n’ Decker toaster oven

1 Hot Point refrigerator

1 “A New Day” wall print

4 wicker storage baskets

1 GE dishwasher

Bathroom:

1 wicker three drawer cabinet

1 white bowl

1 artificial plant

Grand Lobby:

Central Section of Grand
Lobby:

2 Black Metal Sculptures

 B-3
 

 

East Side Outer Lobby:

3 oil paintings on North wall

1 white sofa on North wall

2 side boards on North wall

4 rust colored leather chairs

1 square wooden coffee table

1 peach colored sofa on East wall

2 end tables on East wall

2 table lamps on East wall

2 wing back chairs on East wall

1 oval wooden coffee table on East wall

2 silk trees in brass pots on East wall

1 brass trash bin on South wall

1 wooden pedestal on South wall

1 round wooden table in center area

1 silk arrangement in
center area

West Side Outer Lobby:

3 oil paintings on North wall

1 side board on North wall

2 silk plants in brass pots on North wall

4 blue leather chairs

1 square wooden coffee table

1 gray and peach sofa on West wall

2 striped wing back chairs on West wall

1 wooden oval coffee table on West wall

(Grand Lobby Continued) — West Side Outer Lobby:

2 round end tables on West wall

2 bronze table lamps on West wall

2 silk trees in brass pots on West wall

1 brass trash bin on South wall

1 wooden pedestal on South wall

1 round table in center area

1 silk arrangement in
center area

Grand Lobby – Center
Lobby:

1 framed picture in Northeast corner

1 round table in Northeast corner

1 brass table lamp in Northeast corner

1 peach wing back chair in Northeast corner

1 framed picture in Northwest corner

2 white chairs in Northwest corner

 B-4
 

 

1 round table in Northwest corner

1 brass table lamp in Northwest corner

2 gold framed mirrors on South wall

2 mahogany/rust chairs on South wall

1 oval table on South wall

2 silk trees in brass pots on South wall

2 silk trees in brass pots on North wall

1 oval table on North wall

2 mahogany/rust chairs on North wall

1 large wooden oval table in center area

1 large silk arrangement
in center area

Grand Lobby – Elevator
Area:

1 gold framed mirror in West alcove

1 gold framed mirror in East alcove

1 white pedestal on West wall

1 large silk arrangement on West wall

1 white pedestal on East wall

1 large silk arrangement on East wall

1 large oil painting on North wall

2 brass trash bins on North wall

1 wooden pedestal on
North wall

Grand Lobby – Concierge
Desk:

1 ADDS computer monitor for fire alarm system

1 marble/wooden built-in desk

1 HP 1502 security screen

1 HP Compaq nc 8230 laptop

1 black executive chair

MARTA Lobby:

1 wooden built-in desk

1 executive rolling desk chair

1 Tatung monitor for CCTV system

1 HP desktop computer

1 magnetic override parking deck arm and gate override panel

1 Panasonic WV-CU360c CCTV controller

1 brass desk lamp

1 shoe shine stand

1 fire extinguisher

 B-5
 

 

Street Lobby:

1 White Pedestal

1 Male Bust

Engineering Office:

1 four drawer lateral file cabinet

1 bookcase

2 chairs

2 desks

1 refrigerator

1 Energy Management computer system

1 Work Station PC

1 printer

Mezzanine and 12th Floor:

 

12th Floor Boardroom Reception Area:

 

1 receptionist desk on North wall

1 blue table lamp on North wall

1 blue chair on North wall

1 framed lighted map on North wall

2 wooden chairs w/ blue cushions on South wall

1 wooden oval coffee table on East wall

2 wooden end tables on East wall

2 table lamps on East wall

1 oil painting on East wall

1 floral sofa on East
wall

Private Telephone Room:

1 framed picture on West
wall

Private Restroom:

1 full length mirror on North wall

1 large mirror on East wall

1 framed picture on West wall

1 framed picture on South
wall

Boardroom Hallway:

1 framed picture on West wall

 B-6
 

 

1 small half moon table
on West wall

Boardroom:

1 blue table lamp on North wall

1 long sofa table on North wall

3 hardback books on North wall

1 framed picture on East wall

2 mahogany/peach & green chairs on East wall

1 brass waste can on East wall

1 buffet serving table on East wall

1 long wooden conference table in center

16 blue leather conference chairs in center

1 entertainment center on South wall

1 Magnavox TV on South wall

1 VCR/Cable box on South
wall

Middle Conference Room:

2 framed pictures on west wall

1 wooden conference table
on glass wall

Conference Room Lobby:

1 framed map on North wall

1 buffet table on North wall

3 Diamond print chairs on East wall

1 wooden armless chair on Southeast corner

1 burgundy table lamp on Southeast corner

1 telephone table on Southeast corner

1 round table in center

1 silk arrangement in center

3 framed tree prints

Conference Room Lobby
Closet:

1 wooden podium

2 ivory wooden chairs

3 flip charts

1 overhead projector

1 black TV rolling cart

1 CLI TV

4 black folding chairs

 B-7
 

 

Conference Center:

1 wooden telephone stand

12 white 4 foot tables

24 black folding chairs

Conference Center Closet:

1 six foot wooden table

24 black chairs

1 rolling cart

Kitchen Closet:

1 silk table arrangement

 

12 Floor Mezzanine Level:

 

1 framed picture on the Northwest corner

2 white chairs on the Northwest corner

1 small round table on the Northwest corner

1 blue table lamp on Northwest corner

1 peach wing back chair on Northeast corner

1 small round table on Northeast corner

1 framed picture on Northeast corner

1 floral table lamp on Northeast corner

2 silk trees in brass pots on West wall

1 golf framed mirror on Southwest corner

1 oval table on Southwest corner

2 mahogany/rust chairs on Southwest corner

2 mahogany/rust chairs on Southeast corner

1 oval table on Southeast corner

1 gold framed mirror on Southeast corner

2 silk trees in brass pots on East wall

1 oblong table in center

1 silk arrangement in
center

Mezzanine Hallway:

1 gold framed mirror on West wall

1 gold framed mirror on
East wall

12 Floor Elevator Lobby:

1 white pedestal on West wall

1 large silk arrangement on West wall

1 white pedestal on East wall

1 large silk arrangement on East wall

 B-8
 

 

1 brass/sand urn on North
wall

Fitness Center:

1 set of 8 lb dumbbells

1 blue yoga mat

1 blue gymnastic ball

1 step aerobics step

 B-9

 

EXHIBIT C

Form of Tenant Estoppel Certificate

                          ,
2005

[Address of Buyer]

[Address of Lender]

RE:          [Name and Address of Property]

Gentlemen:

Reference
is made to that certain [Lease Agreement] dated
as of                           
     ,        
between                                                     ,
a                           ,
as landlord (“Landlord”), and the undersigned, as tenant (“Tenant”),
demising premises at the captioned address more particularly described in the
Lease (the “Premises”). The lease, together with all amendments thereto
included in Schedule 1 attached hereto, is herein referred to as the “Lease”.
Tenant hereby represents to the Benefited Parties (as herein defined) that the
following statements are true and correct as of the date hereof:

1.             Schedule 1 attached hereto
is a list of all amendments, modifications, side letters, guaranties and other
documents evidencing, governing or securing Tenant’s obligations under the
Lease, and attached hereto as Exhibit A is a true and correct copy of
the Lease and all amendments, modifications, side letters, guaranties and other
documents evidencing, governing or securing Tenant’s obligations under the
Lease.  The documents listed in Schedule
1 and attached hereto as Exhibit A represent the entire agreement
between the parties as to the Premises. 
The undersigned is the Tenant under the Lease for space at the Premises
covering                           
rentable square feet.

2.             The Lease is in full force and
effect and has not been amended, modified, supplemented or superseded except as
indicated in Schedule 1.  There
are no understandings, contracts, agreement or commitments of any kind
whatsoever with respect to the Premises, except as expressly provided in the
Lease.

3.             The term of the Lease commenced on                           ,
and expires on                           ,
subject to any rights of Tenant to extend the term as provided therein.  The base rent presently being charged is $                 .  All rentals, charges, additional rent and
other obligations on the part of the undersigned have been paid to and
including                           ,
200  .  No rental, other than
for the current month, has been paid in advance.  The undersigned has accepted possession and
now occupies the

 C-1
 

 

Premises and is
currently open for business.  In addition
to the fixed minimum Base Rent, the Tenant pays its pro-rata share of real
estate taxes and operating expenses in excess of a base stop of                                          .

4.             Tenant has paid to Landlord a
security deposit in the amount of $                                   .  Tenant has no claim against Landlord for any
other security, rental, cleaning access card, key or other deposits or any
prepaid rentals.

5.             Landlord is not in any respect in
default in the performance of the terms and provisions of the Lease, nor does
any state of facts or condition exist which, with the giving of notice or the
passage of time, or both, would result in such a default.  All conditions under the Lease to be
performed by Landlord have been satisfied. 
Without limiting the generality of the foregoing, all improvements to be
constructed in the Premises by Landlord have been completed to the satisfaction
of Tenant and accepted by Tenant and any tenant construction allowances have
been paid in full, and all duties of an inducement nature required of Landlord
in the Lease have been fulfilled to Tenant’s satisfaction. Tenant has no claim
against Landlord by reason of any restriction, encumbrance or defect in title
of the Premises of which Tenant has actual knowledge.

6.             There currently is no defense,
offset, lien, claim or counterclaim by or in favor of Tenant against Landlord
under the Lease or against the obligations of Tenant under the Lease
(including, without limitation, any rentals or other charges due or to become
due under the Lease) and Tenant is not contesting any such obligations, rentals
or charges. To Tenant’s knowledge, all leasing commissions due in respect of
the current term of the Lease have been paid.

 7.            Tenant
has no renewal, extension or expansion option, no right of first offer or right
of first refusal and no other similar right to renew or extend the term of the
Lease or expand the property demised thereunder except as may be expressly set
forth in the Lease.  Tenant has no right
to lease or occupy any parking spaces within the Property except as set forth
in the Lease.  Tenant is entitled to no
free rent nor any credit, offsets or deductions in rent, nor other leasing
concessions other than those specified in the Lease.

8.             Tenant is not in any respect in
default in the performance of the terms and provisions of the Lease nor does
any state of facts or condition exist which, with the giving of notice or the
passage of time, or both, would result in such a default.  Without limiting the generality of the
foregoing, Tenant is current in its rental obligation under the Lease.

9.             The undersigned has not received
notice of a prior transfer, assignment, hypothecation or pledge by Landlord of
any of Landlord’s interest in the Lease other than to the holder of any first
mortgage on the captioned property.

10.           There are no liens recorded against
the Premises with respect to work performed by or on behalf of Tenant or
materials supplied to the demised property.

 C-2
 

 

11.           Tenant has not assigned the Lease nor
sublet all or any part of the Premises, except as shown on Schedule 1
attached hereto and made a part hereof for all purposes.

The above certifications
are made to the Benefited Parties knowing that the Benefited Parties will rely
thereon in making an investment in the Premises. For purposes hereof, the term “Benefited
Parties” means the addressees of this letter and all of the following: (a)
Harvard Property Trust, LLC, a Delaware limited liability company and its
successors, assigns, and designees (including, without limitation, any tenant
in common purchasers); and (b) any lender to which any party described in the
foregoing clause (a) grants a deed of trust, mortgage or other lien upon the
Premises.

	
  

  	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ,

  
	
   

  	
   

  	
  a

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
									

 

 C-3
 

 

JOINDER OF GUARANTOR

The undersigned
joins in the execution of this Estoppel Certificate for the purpose of
confirming to and for the benefit of the Benefited Parties (a) that the
guaranty of Tenant’s obligations under the Lease executed by the undersigned
remain in full force and effect, and (b) that the undersigned has no defenses
or offsets to its obligations under the guaranty of the Lease executed by the
undersigned. The undersigned understands that the Benefited Parties will rely
upon the foregoing confirmations.

 

	
   

  	
   

  	
  

  
	
   

  	
   

  	
  a

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
							

 

 C-4
 

 

Schedule 1

List of Lease Documents

 C-5
 

 

Exhibit A

See Attached Lease Documents

 C-6

 

EXHIBIT D

Assignment and Assumption of Leases,

Contracts and Other Property Interests

For good and valuable consideration, the receipt of
which is hereby acknowledged, NORTH ATLANTA REALTY ACQUISITION COMPANY, INC., a
Delaware corporation (“Assignor”), hereby irrevocably assigns, transfers and
sets over to HARVARD
PROPERTY TRUST, LLC, a Delaware limited liability company (“Assignee”),
all of Assignor’s right, title and interest arising from and after the date
hereof in and to (i) the lease agreements (the “Leases”) enumerated
on Schedule A attached hereto and made a part hereof, together with
tenant security deposits held by Assignor under the Leases, (ii) to
the extent assignable, the contracts (the “Contracts”) enumerated in Schedule
B attached hereto and made a part hereof, (iii) to the extent
assignable, any governmental permits and approvals (the “Permits and Approvals”)
related to the improvements (the “Improvements”) located on the land (the “Land”)
being conveyed by Assignor to Assignee by Assignment of Ground Lease and
Development Agreement, dated the date hereof, and (iv) to the
extent assignable, all contract rights (including, without limitation, all
existing third-party warranties, if any, on materials and equipment
constituting a part of or used in the operation and maintenance of the
Improvements), licenses, permits, plans and specifications, surveys, soils
reports, insurance proceeds by reason of damage to the Improvements,
condemnation awards and all other rights, privileges or entitlements necessary
to continue the use and operation of the Land and the Improvements.

Assignee hereby assumes all obligations in connection
with the Leases, the Contracts and the Permits and Approvals, arising or first
becoming due and payable on or after the date hereof.  Assignor agrees to indemnify, defend and hold
harmless Assignee from any loss, cost, claim, liability, expense or demand in
connection with the Leases, the Contracts or the Permits and Approvals arising
or first becoming due and payable prior to the date hereof.  Assignee agrees to indemnify, defend and hold
harmless Assignor from any loss, cost, claim, liability, expense or demand in
connection with the Leases, the Contracts or the Permits and Approvals arising
or first becoming due and payable on or after the date hereof.

Assignor hereby reserves the right to collect and
retain delinquent rentals as described on Schedule A.

Assignor hereby represents and warrants only that it
has not previously assigned the Leases, the Contracts, the Permits and Approvals,
contract rights and other rights assigned hereby.  Assignor makes no other representation or
warranty in connection with this Assignment and, except for the foregoing, this
Assignment is made without recourse to Assignor.

 D-1
 

 

All terms of this Assignment shall be binding upon,
inure to the benefit of and be enforceable by the parties hereto and their
respective legal representatives, successors and assigns.

No modification, waiver, amendment, discharge or
change of this Assignment shall be valid unless the same is in writing and
signed by the party against which the enforcement of such modification, waiver,
amendment, discharge or change is or may be sought.

This Assignment shall be construed and enforced in
accordance with the laws of the State of Georgia.

In any action brought to enforce the obligations of
Assignor under this Assignment, the judgment or decree shall be subject to
Sections 16.8 and 16.15 of that certain Sale, Purchase and Escrow Agreement,
dated as of September __, 2006, between Assignor, Assignee and Partners Title
Company.

This Assignment may be executed in any number of
counterparts, each of which so executed shall be deemed original; such
counterparts shall together constitute but one agreement.

[Signature On Following Page]

 D-2
 

 

IN WITNESS WHEREOF, Assignor and Assignee have each
executed this Assignment of this            
day of        , 2006.

	
  

  	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NORTH ATLANTA REALTY ACQUISITION

  
	
   

  	
   

  	
  COMPANY, INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HARVARD PROPERTY TRUST, LLC, a

  
	
   

  	
   

  	
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

 D-3

 

EXHIBIT E

Form of Bill of Sale

KNOW ALL MEN BY THESE PRESENTS, that NORTH ATLANTA
REALTY ACQUISITION COMPANY, INC., a Delaware corporation (“Seller”), for good
and valuable consideration paid by HARVARD PROPERTY TRUST, LLC, a Delaware limited liability company
(“Buyer”), hereby sells to Buyer, its successors and assigns, the personal
property (“Personal Property”) more particularly referred to in Schedule A
attached hereto.

TO HAVE AND TO HOLD the same unto Buyer, its
successors and assigns to and for its own use and behalf forever.

Buyer agrees to pay all sales taxes payable by reason
of the transfer to Buyer of said Personal Property.

This Bill of Sale shall be without representation or
warranty by, and without recourse to, Seller.

This Bill of Sale may be executed in any number of
counterparts, each of which so executed shall be deemed original; such
counterparts shall together constitute but one agreement.

[Signature On Following Page]

 E-1
 

 

IN WITNESS WHEREOF, Seller and Buyer have caused these
presents to be signed by their duly authorized officers as of                  ,
2006.

	
  

  	
   

  	
  SELLER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NORTH ATLANTA REALTY ACQUISITION

  
	
   

  	
   

  	
  COMPANY, INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BUYER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HARVARD PROPERTY TRUST, LLC, a

  
	
   

  	
   

  	
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
									

 

 E-2

 

EXHIBIT F

Form of Assignment and Assumption of Ground Lease and Development
Agreement

After recording return
to:

                                   

                                   

                                   

Attn:                          

Assignment and Assumption of Ground Lease and Development Agreement

For good and valuable consideration, the receipt of
which is hereby acknowledged, NORTH ATLANTA REALTY ACQUISITION COMPANY, INC., a
Delaware corporation (“Assignor”), hereby irrevocably assigns, transfers and
sets over to HARVARD
PROPERTY TRUST, LLC, a Delaware limited liability company (“Assignee”),
all of Assignor’s right, title and interest arising from and after the date
hereof in and to that certain (i) Lease for Johnsontown South Site, dated May
29, 1984 and recorded in Deed Book 8994, page 396, Fulton County, Georgia
records, between Metropolitan Atlanta Rapid Transit Authority, a public body
corporate created under the laws of the State of Georgia (“MARTA”), and
Resurgens Plaza South, Inc., a Georgia corporation (predecessor-in-interest to
Resurgens Plaza South Associates, L.P. (“RPSA”)), as amended by that certain
First Amendment to Lease for Johnsontown South Site, dated May 29, 1984,
recorded in Deed Book 8994, page 448, aforesaid records, as further amended by
that certain Second Amendment to Lease for Johnsontown South Site, dated July
1, 1984, recorded in Deed Book 9392, page 398, aforesaid records, as further
amended by that certain Third Amendment to Lease for Johnsontown South Site,
dated February 19, 1986, recorded in Deed Book 9971, page 106, aforesaid
records, as further amended by that certain Fourth Amendment to Lease for
Johnsontown South Site and Second Amendment to Development Agreement, dated
August 1, 1986, recorded in Deed Book 10277, page 168, aforesaid records, as
assigned by RPSA to Seller pursuant to that certain Assignment and Assumption
of MARTA Lease and Development Agreement, dated November 17, 1997 and recorded
in Deed Book 23466, page 251 (collectively, the “Ground Lease”), which Ground
Lease covers the land described on Exhibit A attached hereto, and (ii)
Development Agreement, dated November 10, 1982 and recorded in Deed Book 8287,
page 1, Fulton County, Georgia records, between MARTA and Resurgens Plaza Company,
a Georgia general partnership (predecessor-in-

 F-1
 

 

interest to RPSA), as amended by that certain First
Amendment to Development Agreement, dated September 30, 1983 and unrecorded, as
further amended by that certain Fourth Amendment to Lease for Johnsontown South
Site and Second Amendment to Development Agreement, dated August 1, 1986,
recorded in Deed Book 10277, page 168, aforesaid records, as assigned by RPSA
to Seller pursuant to that certain Assignment and Assumption of MARTA Lease and
Development Agreement, dated November 17, 1997 and recorded in Deed Book 23466,
page 251 (collectively, the “Development Agreement”).

Assignee hereby assumes all of Assignor’s obligations
in connection with the Ground Lease and the Development Agreement arising or
first becoming due and payable on or after the date hereof.  Assignor agrees to indemnify, defend and hold
harmless Assignee from any loss, cost, claim, liability, expense or demand in
connection with the Ground Lease and the Development Agreement arising or first
becoming due and payable prior to the date hereof.  Assignee agrees to indemnify, defend and hold
harmless Assignor from any loss, cost, claim, liability, expense or demand in
connection with the Ground Lease and the Development Agreement arising or first
becoming due and payable on or after the date hereof.

Assignor hereby represents and warrants only that it
has not previously assigned the Ground Lease and the Development
Agreement.  Assignor makes no other
representation or warranty in connection with this Assignment and, except for
the foregoing, this Assignment is made without recourse to Assignor.

All terms of this Assignment shall be binding upon,
inure to the benefit of and be enforceable by the parties hereto and their
respective legal representatives, successors and assigns.

No modification, waiver, amendment, discharge or
change of this Assignment shall be valid unless the same is in writing and
signed by the party against which the enforcement of such modification, waiver,
amendment, discharge or change is or may be sought.

This Assignment shall be construed and enforced in
accordance with the laws of the State of Georgia.

In any action brought to enforce the obligations of
Assignor under this Assignment, the judgment or decree shall be subject to
Sections 16.8 and 16.15 of that certain Sale, Purchase and Escrow Agreement,
dated September     ,
2006,  by and between Assignor, Assignee
and Partners Title Company.

This Assignment may be executed in any number of
counterparts, each of which so executed shall be deemed original; such
counterparts shall together constitute but one agreement.

 F-2
 

 

IN WITNESS WHEREOF, Assignor
and Assignee have each executed this Assignment of this             
day of            ,
2006.

	
  

  	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NORTH ATLANTA REALTY ACQUISITION

  
	
   

  	
   

  	
  COMPANY, INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HARVARD PROPERTY TRUST, LLC, a

  
	
   

  	
   

  	
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

 F-3

 

EXHIBIT G

Form of Limited Warranty Deed

After recording return
to:

                                   

                                   

                                   

Attn:                          

LIMITED WARRANTY DEED

	
  STATE OF                                                        

  	
  )

  	
   

  
	
                                                                             

  	
  ) ss.

  	
   

  
	
  COUNTY OF                                                     

  	
  )

  	
   

  

 

THIS LIMITED WARRANTY DEED, made this       day
of                 ,
2006, NORTH ATLANTA REALTY ACQUISITION COMPANY, INC., a Delaware corporation
(herein called “Grantor”), and HARVARD PROPERTY TRUST, LLC, a Delaware limited liability company
(herein called “Grantee”).

WITNESSETH: 
That Grantor, for and in consideration of the sum of Ten Dollars
($10.00) and other good and valuable consideration, in hand paid at and before
the sealing and delivery of these presents, the receipt and sufficiency of
which are hereby acknowledged, has granted, bargained, sold, alienated,
conveyed, transferred and confirmed and by these presents does grant, bargain,
sell, alien, convey, transfer and confirm unto Grantee all that tract or parcel
of land described on Exhibit A attached hereto and made a part hereof,
together with all buildings and other improvements located thereon, and
together with all rights, members and appurtenances in any manner appertaining
or belonging to said premises.

TO HAVE AND TO HOLD the said premises, together with
all and singular the rights, easements, members and appurtenances thereof, to
the same being, belonging or in any wise appertaining, to the only proper use,
benefit and behoof of Grantee, forever, IN FEE SIMPLE.

 G-1
 

 

This Limited Warranty Deed is made expressly subject
to the items set forth on Exhibit B attached hereto and made a part
hereof.

Grantor will warrant and defend the right, title and
interest to the above described property unto Grantee against the lawful claims
of all persons owning, holding or claiming by, through or under Grantor, but
not otherwise.

(The words “Grantor” and “Grantee” include all
genders, plural and singular, and their respective heirs, successors and
assigns where the context requires or permits.)

IN WITNESS WHEREOF, Grantor has caused this Limited Warranty
Deed to be executed and sealed the day and year first above written.

	
  Signed, sealed and delivered

  	
   

  	
  NORTH ATLANTA REALTY

  
	
  in the presence of:

  	
   

  	
  ACQUISITION, a Delaware corporation

  
	
   

  	
   

  	
   

  
	
  Witness

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

	
  STATE OF                                                        

  	
  )

  	
   

  
	
                                                                             

  	
  ) ss.

  	
   

  
	
  COUNTY OF                                                     

  	
  )

  	
   

  

 

On                             ,
2006 before me, the undersigned Notary Public, personally appeared                                     ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he executed the same in his capacity, and that his
signature on the instrument is the person or the entity upon behalf of which
the person acted, executed the within instrument.

WITNESS my hand and official seal.

 

	
  

  	
   

  	
   

  
	
  Signature of
  Notary

  	
   

  	
  (Affix seal
  here)

  

 

 G-2

 

EXHIBIT H

Leases

	
  Tenant Name

  	
   

  	
  Date of Document

  
	
   

  	
   

  	
   

  
	
  Benefits Law Group

  	
   

  	
  6/5/02

  
	
   

  	
   

  	
   

  
	
  Burke Capital Group, LLC

  	
   

  	
  9/5/03

  
	
   

  	
   

  	
   

  
	
  Epstein Becker & Green, P.C.

  	
   

  	
  6/29/01

  
	
  1st Amendment

  	
   

  	
  4/1/04

  
	
  2nd Amendment

  	
   

  	
  11/8/04

  
	
  3rd Amendment

  	
   

  	
  7/7/05

  
	
  4th Amendment

  	
   

  	
  9/15/05

  
	
   

  	
   

  	
   

  
	
  Fisher & Phillips, L.L. P.

  	
   

  	
  10/15/98

  
	
   

  	
   

  	
   

  
	
  Hart & Associates, Attorneys & Counselors at
  Law PC

  	
   

  	
  6/25/02

  
	
   

  	
   

  	
   

  
	
  (Imlay) Tiger Management Company

  	
   

  	
  5/10/90

  
	
  1st Amendment

  	
   

  	
  1/11/91

  
	
  2nd Amendment

  	
   

  	
  3/3/95

  
	
  3rd Amendment
  (Imlay Investment Inc.)

  	
   

  	
  5/28/99

  
	
  4th Amendment
  (Imlay Investment Inc.)

  	
   

  	
  9/7/05

  
	
   

  	
   

  	
   

  
	
  John D. Phillips (d/b/a Jack Phillips & Assoc.)

  	
   

  	
  1/10/05

  
	
   

  	
   

  	
   

  
	
  Stephen Hale Block (d/b/a Levine & Block)

  	
   

  	
  7/28/98

  
	
  1st Amendment

  	
   

  	
  1/23/03

  
	
   

  	
   

  	
   

  
	
  Midtown Lanier Parking

  	
   

  	
  5/1/03

  
	
  1st Amendment

  	
   

  	
  1/5/05

  
	
   

  	
   

  	
   

  
	
  Miller & McMenamy, L.L.P

  	
   

  	
  9/1/06

  
	
   

  	
   

  	
   

  
	
  Milliman USA, Inc.

  	
   

  	
  3/23/01

  
	
  1st Amendment

  	
   

  	
  11/24/03

  
	
   

  	
   

  	
   

  
	
  Resurgens Associates

  	
   

  	
  3/1/99

  
	
   

  	
   

  	
   

  
	
  Ocean V Corporation (d/b/a Resurgens Bistro)

  	
   

  	
  7/29/03

  
	
   

  	
   

  	
   

  
	
  Robert & Erck

  	
   

  	
  2/12/04

  
	
   

  	
   

  	
   

  
	
  Royal Specialty Underwriting, Inc.

  	
   

  	
  9/9/98

  
	
  1st Addendum

  	
   

  	
  2/1/90

  

 

 H-1
 

 

 

	
  Tenant Name

  	
   

  	
  Date of Document

  
	
   

  	
   

  	
   

  
	
  2nd Addendum

  	
   

  	
  7/29/93

  
	
  1st Amendment

  	
   

  	
  4/30/89

  
	
  2nd Amendment

  	
   

  	
  6/13/90

  
	
  3rd Amendment

  	
   

  	
  1/30/97

  
	
  4th Amendment

  	
   

  	
  8/23/99

  
	
  5th Amendment

  	
   

  	
  8/10/00

  
	
  6th Amendment

  	
   

  	
  5/22/01

  
	
  7th Amendment

  	
   

  	
  4/3/01

  
	
  8th Amendment

  	
   

  	
  12/6/02

  
	
  Assignment & Assumption (RSUI Indemnity Company)

  	
   

  	
  9/4/03

  
	
  9th Amendment (RSUI
  Indemnity Company)

  	
   

  	
  9/4/03

  
	
  10th Amendment (RSUI
  Indemnity Company)

  	
   

  	
  10/4/03

  
	
  11th Amendment (RSUI
  Indemnity Company)

  	
   

  	
  8/18/06

  
	
   

  	
   

  	
   

  
	
  Schklar, Wright, & Henderson, LLC

  	
   

  	
  9/16/03

  
	
   

  	
   

  	
   

  
	
  SSI (U.S.) Inc. (Spencer Stuart)

  	
   

  	
  9/16/00

  
	
   

  	
   

  	
   

  
	
  The Breckenridge Group, Inc.

  	
   

  	
  2/    /01

  
	
  1st Amendment

  	
   

  	
  5/8/06

  
	
   

  	
   

  	
   

  
	
  The Gallup Organization

  	
   

  	
  4/1/03

  
	
   

  	
   

  	
   

  
	
  Transcend Services, Inc.

  	
   

  	
  8/4/00

  
	
  1st Amendment

  	
   

  	
  9/15/00

  
	
  2nd Amendment

  	
   

  	
  4/22/04

  

 

Equipment Leases

Banleaco Equipment Lease,
dated December 27, 2005, by and between Bankers Leasing Company, as lessor, and
Seller, as lessee.

Electronic Service
Agreement (undated), by and between T-Mobile USA, Inc., as lessor, and Seller,
as lessee.

Integrated Services
Agreement, dated December 21, 1998, by and between Cypress Communications,
Inc., as lessor, and Seller, as lessee.

Minolta Business
Solutions Black and White Replacement Service Agreement, dated December 29,
2003, by and between Minolta Business Systems, as lessor, and Seller, as
lessee.

Agreement, dated May 20,
2006, by and between Pitney Bowes, as lessor, and Seller, as lessee.

 

 H-2

 

EXHIBIT I

Contracts

	
  Type of

  Service

  	
   

  	
  Contractor

  	
   

  	
  Current

  Comm.

  Date

  
	
  Chiller Maint.

  	
   

  	
  Georgia Trane

  	
   

  	
  1/1/2005

  
	
  Concierge Service

  	
   

  	
  Concierge Service of Atlanta

  	
   

  	
  3/1/2005

  
	
  Energy Mgmt

  	
   

  	
  Siemens

  	
   

  	
  1/1/2005

  
	
  Elevator

  	
   

  	
  Thyssen Krupp

  	
   

  	
  1/1/2005

  
	
  Exterminator

  	
   

  	
  Orkin

  	
   

  	
  1/1/2005

  
	
  Fire Protection

  	
   

  	
  Simplex

  	
   

  	
  1/1/2005

  
	
  Janitorial

  	
   

  	
  Onesource

  	
   

  	
  MTM

  
	
  Landscaping

  	
   

  	
  ValleyCrest

  	
   

  	
  1/1/2005

  
	
  Security

  	
   

  	
  Securitas Sercurity

  	
   

  	
  1/1/2005

  
	
  Rubbish Removal

  	
   

  	
  Waste Management

  	
   

  	
  10/1/2005

  
	
  Water Treatment

  	
   

  	
  Aquatrol

  	
   

  	
  1/1/2005

  
	
  Window Wash

  	
   

  	
  Valcourt

  	
   

  	
  1/1/2005

  

 

 I-1

 

EXHIBIT J

Form of Notice to Tenants

Ladies and Gentlemen:

You are hereby informed that, effective         ,
2006, NORTH ATLANTA REALTY ACQUISITION COMPANY, INC., a Delaware
corporation, has sold the
building known as Resurgens Plaza located at 945 East Paces Ferry Road,
Atlanta, Georgia (the “Building”), and
has assigned its interest as lessor under the lease between it and you covering
certain space in the Building in each case to: HARVARD PROPERTY TRUST, LLC, a
Delaware limited liability company.

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  NORTH ATLANTA REALTY ACQUISITION

  
	
   

  	
  COMPANY, INC., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

 J-1

 

EXHIBIT K

FIRPTA Certificate

Transferor’s Certification of Non-Foreign Status

Section 1445 of the Internal Revenue Code (the “Code”)
provides that a transferee of a U.S. real property interest must withhold tax
if the transferor is a foreign person. 
For U.S. tax purposes (including Section 1445), the owner of a
disregarded entity (which has legal title to a U.S. real property interest
under local law) will be the transferor of the property and not the disregarded
entity.  To inform HARVARD PROPERTY TRUST, LLC, a Delaware
limited liability company (“Transferee”), that withholding of tax is not
be required upon the disposition of a U.S. real property interest by NORTH
ATLANTA REALTY ACQUISITION COMPANY, INC., a Delaware corporation (“Transferor”),
the undersigned hereby certifies the following on behalf of Transferor:

1.  Transferor is not a foreign corporation,
foreign partnership, foreign trust or foreign estate (as those terms are
defined in the Code and the Income Tax Regulations promulgated thereunder);

2.  Transferor is not a disregarded entity
as defined in Section 1.1445-2(b)(2)(iii) of the Income Tax Regulations.

3.  Transferor’s U.S. employer identification
number is               ;
and

4.  Transferor’s office address
is: c/o J.P. Morgan Investment Management Inc., 245 Park Avenue, 2nd Floor, New York, New York 10167.

Transferor understands
that this Certification may be disclosed to the Internal Revenue Service by
Transferee and that any false statement contained herein could be punished by
fine, imprisonment, or both.

Under penalty of perjury I declare that I have
examined this Certification and to the best of my knowledge and belief it is
true, correct and complete, and I further declare that I have authority to sign
this document on behalf of Transferor.

	
  Dated:
             , 2006.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NORTH ATLANTA REALTY ACQUISITION

  
	
   

  	
  COMPANY, INC., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 K-1

 

EXHIBIT L

Buyer’s Due Diligence Item List for Purchase & Sale Contract

BASE
BUILDING INFO

ADA Compliance,
studies/reports

Appraisal, Existing

Building Measurement
Surveys by Registered Architect

Building Permits

Building Plans,
Specifications,

Paper

CADD Disk

Base Building Certificate
of Occupancy

Covenants, Conditions
& Restriction’s (Owner association, condo, etc)

Easement Information,
existing and pending

Environmental Site
Assessment, Existing

Floor Plans, as leased

Geotechnical Report, if
any

Parking Space
Configuration (Surface and Garage if applicable)

Property Condition
Report, existing

Roof Reports – If recent
re-roof, provide drawings and specifications

Roof Warranty – If recent
re-roof/new roof provide contractor contact info

Seismic Reports

Site Plans

Survey, existing

BUILDING
SYSTEMS/OPERATIONS

Chiller Eddy Current
Testing – Frequency and Results

Emergency/Life Safety
Systems, Operating Manual

Ground Fault Testing –
Frequency and Results

Infra-red Scans of
Electrical System – Frequency and Results

Permits & Licenses –
Alarm (including Frequency and Results of testing)

Permits & Licenses –
Boiler (including inspection results)

Permits & Licenses –
Construction

Permits & License –
Elevator (including one and five year testing reports)

Permits & License –
Engineering

Preventive Maintenance
Program

Warranty, Elevator if
applicable

Warranty, HVAC Equipment,
if applicable

Warranty, Mechanical, if
applicable

Warranty, Roof, if
applicable

Work Order Systems &
Operating Manuals

Window Washing –
Frequency and Results

 L-1
 

 

FINANCIAL/BUDGETING
INFO

Average Effective Annual
Rental Rate (psf basis), previous 5 years

Building/Capital
Improvements Projects, Current

Capital Improvements,
historical/projected, 3 years

Balance Sheet, to date

Budget & Narrative,
Current Year

Invoices, as requested, copies only (typically utility and real estate
tax invoices)

Security Deposit Listing,
Current, LOC’s/Guaranty’s to be transferred

Utility Security
Deposits

***  SECTION 3-14 AUDIT  ***

*Additional material/reports
required for the completion of the 3-14 Audit

(Note:  this audit will also include physical site
visits to review original invoices selected from property check
register/disbursement journal as noted below)

Detailed general
ledger report of revenues and expenses for the prior two years, each quarter
for the current year, and to current date for the current year

Detailed income
statements by month for the prior two years and to current date for the current
year

Detail of the cash
receipts and disbursements journal (downloaded in Excel if possible) for the
full prior year and to current date for the current year

Detailed accrued
expense listing for each quarter ended during the current year and the prior
two years

Operating Expense
Reconciliations in detail for the three previous years, current year budget,
and current year preliminary reconciliation

Aging Reports, Current
and past 6 months (month-by-month)

Rent Roll, Current

All leases, amendments
and commencement date letters for current and prior year tenants

Detailed listing of all
tenants with termination options

Detailed rent
straight-line schedule for each quarter ended during the current year and the
prior two years

Stacking Plan

Parking garage
lease/operating agreement for the prior two years and the current year

Service contracts for the
current year and prior year

Property tax and personal
property tax statements for the current year & prior 3 years

Utility agreements/power
supply agreements for the current year and prior year

Utilities, prior year and
current year invoices

Representation
letter (questions asked Seller by Audit Firm)

 L-2
 

 

TENANT
RELATED INFO

Certificates of Occupancy

Insurance Certificate

Lease Commission
Schedule, 3 previous years

Existing Commission
Agreements

Occupancy/Vacancy
History,  5 previous years

Retail tenants, sales
data and percentage rent billings

Tenant Contact
Information

Tenant Financial
Statements, if available

Tenant Improvement
projects, currently under construction (copy of contract(s))

Tenant Improvement
Schedule, 3 previous years

OTHER

Business Licenses

Covenants, Conditions
& Restriction’s (Owner association, condo, etc)

Flooding Info, Historical

Ground Lease, if any

Insurance Certificate -
Seller

Insurance Claims, Pending

Insurance Claims History

Intellectual Property
Documents, if any

Litigation – Pending

Management & Leasing
Agreement – Existing

O & M Reports
(Asbestos, Mold, etc.)

Personal Property
Inventory including Office Equipment to remain on site

Photos of the Building

Security Incident
Reports, for prior 24 months

Seismic Reports

Staffing/Payroll Schedule

Title commitment policy
of Seller, existing

Title Work – Preliminary

Title Work – Final

Website/Domain
Information

Zoning Report,
existing if available

 L-3

 

SALE, PURCHASE AND ESCROW AGREEMENT

AMONG

NORTH ATLANTA REALTY ACQUISITION COMPANY, INC.

AND

HARVARD PROPERTY TRUST, LLC

AND

PARTNERS TITLE COMPANY

 

TABLE OF CONTENTS

	
  Section

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RECITALS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Real Property

  	
   

  	
  1

  
	
  1.2

  	
   

  	
  Air Rights

  	
   

  	
  1

  
	
  1.3

  	
   

  	
  Development Agreement

  	
   

  	
  1

  
	
  1.4

  	
   

  	
  Personal Property

  	
   

  	
  2

  
	
  1.5

  	
   

  	
  Purchase and Sale

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PURCHASE PRICE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Price

  	
   

  	
  2

  
	
  2.2

  	
   

  	
  Investments

  	
   

  	
  3

  
	
  2.3

  	
   

  	
  Interest on the Deposit

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONDITIONS TO
  THE PARTIES’ OBLIGATIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Conditions to Buyer’s Obligation to Purchase

  	
   

  	
  3

  
	
  3.2

  	
   

  	
  Conditions to Seller’s Obligation to Sell

  	
   

  	
  5

  
	
  3.3

  	
   

  	
  Failure of Condition Precedent

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BUYER’S
  DELIVERIES AND SELLER’S DELIVERIES TO ESCROW AGENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Buyer’s Deliveries

  	
   

  	
  5

  
	
  4.2

  	
   

  	
  Seller’s Deliveries

  	
   

  	
  6

  
	
  4.3

  	
   

  	
  Failure to Deliver

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INVESTIGATION OF
  PROPERTY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Delivery of Documents

  	
   

  	
  8

  
	
  5.2

  	
   

  	
  Physical Inspection of the Real Property

  	
   

  	
  8

  
	
  5.3

  	
   

  	
  Investigation Period

  	
   

  	
  9

  
	
  5.4

  	
   

  	
  Effect of Termination

  	
   

  	
  10

  
	
  5.5

  	
   

  	
  No Obligation to Cure

  	
   

  	
  10

  
	
  5.6

  	
   

  	
  Copies of Third Party Reports

  	
   

  	
  10

  

 

 i
 

 

 

	
  ARTICLE VI

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE CLOSING

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Date and Manner of Closing

  	
   

  	
  11

  
	
  6.2

  	
   

  	
  Seller’s Extension Option

  	
   

  	
  11

  
	
  6.3

  	
   

  	
  Delay in Closing; Authority to Close

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRORATION, FEES,
  COSTS AND ADJUSTMENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Prorations

  	
   

  	
  11

  
	
  7.2

  	
   

  	
  Seller’s Closing Costs

  	
   

  	
  14

  
	
  7.3

  	
   

  	
  Buyer’s Closing Costs

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DISTRIBUTION OF
  FUNDS AND DOCUMENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Delivery of the Purchase Price

  	
   

  	
  14

  
	
  8.2

  	
   

  	
  Other Monetary Disbursements

  	
   

  	
  14

  
	
  8.3

  	
   

  	
  Recorded Documents

  	
   

  	
  14

  
	
  8.4

  	
   

  	
  Documents to Buyer

  	
   

  	
  14

  
	
  8.5

  	
   

  	
  Documents to Seller

  	
   

  	
  15

  
	
  8.6

  	
   

  	
  All Other Documents

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  RETURN OF
  DOCUMENTS AND FUNDS UPON TERMINATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Return of Seller’s Documents

  	
   

  	
  15

  
	
  9.2

  	
   

  	
  Return of Buyer’s Documents

  	
   

  	
  15

  
	
  9.3

  	
   

  	
  Deposit

  	
   

  	
  16

  
	
  9.4

  	
   

  	
  Disbursement of Deposit

  	
   

  	
  16

  
	
  9.5

  	
   

  	
  No Effect on Rights of Parties; Survival

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFAULT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Seller’s Remedies

  	
   

  	
  16

  
	
  10.2

  	
   

  	
  Buyer’s Remedies

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  11.1

  	
   

  	
  Seller’s Warranties and Representations

  	
   

  	
  17

  

 

 ii
 

 

 

	
  11.2

  	
   

  	
  Buyer’s Warranties and Representations

  	
   

  	
  18

  
	
  11.3

  	
   

  	
  No Other Warranties and Representations

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CASUALTY AND
  CONDEMNATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONDUCT PRIOR TO
  CLOSING

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.1

  	
   

  	
  Conduct

  	
   

  	
  22

  
	
  13.2

  	
   

  	
  Actions Prohibited

  	
   

  	
  22

  
	
  13.3

  	
   

  	
  Modification of Existing Ground Lease, Development
  Agreement, Leases and Contracts

  	
   

  	
  22

  
	
  13.4

  	
   

  	
  New Leases and Contracts

  	
   

  	
  23

  
	
  13.5

  	
   

  	
  Confidentiality

  	
   

  	
  23

  
	
  13.6

  	
   

  	
  Right to Cure

  	
   

  	
  23

  
	
  13.7

  	
   

  	
  SEC Reporting Requirements

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NOTICES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XV

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRANSFER OF
  TITLE AND POSSESSION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  15.1

  	
   

  	
  Transfer of Possession

  	
   

  	
  26

  
	
  15.2

  	
   

  	
  Delivery of Documents at Closing

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XVI

  	
   

  	
   

  
	
  GENERAL
  PROVISIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  16.1

  	
   

  	
  Captions

  	
   

  	
  26

  
	
  16.2

  	
   

  	
  Exhibits

  	
   

  	
  26

  
	
  16.3

  	
   

  	
  Entire Agreement

  	
   

  	
  26

  
	
  16.4

  	
   

  	
  Modification

  	
   

  	
  27

  
	
  16.5

  	
   

  	
  Attorneys’ Fees

  	
   

  	
  27

  
	
  16.6

  	
   

  	
  Governing Law

  	
   

  	
  27

  
	
  16.7

  	
   

  	
  Time of Essence

  	
   

  	
  27

  
	
  16.8

  	
   

  	
  Survival of Warranties

  	
   

  	
  27

  
	
  16.9

  	
   

  	
  Assignment by Buyer

  	
   

  	
  27

  
	
  16.10

  	
   

  	
  Severability

  	
   

  	
  28

  
	
  16.11

  	
   

  	
  Successors and Assigns

  	
   

  	
  28

  

 

 iii
 

 

 

	
  16.12

  	
   

  	
  Interpretation

  	
   

  	
  28

  
	
  16.13

  	
   

  	
  Counterparts

  	
   

  	
  28

  
	
  16.14

  	
   

  	
  Recordation

  	
   

  	
  28

  
	
  16.15

  	
   

  	
  Limitation on Liability

  	
   

  	
  28

  
	
  16.16

  	
   

  	
  Calculation of Time Periods

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XVII

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ESCROW AGENT
  DUTIES AND DISPUTES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  17.1

  	
   

  	
  Other Duties of Escrow Agent

  	
   

  	
  29

  
	
  17.2

  	
   

  	
  Disputes

  	
   

  	
  29

  

 

	
  EXHIBITS

  
	
   

  	
   

  
	
   

  	
  EXHIBIT A — Description of Land

  
	
   

  	
  EXHIBIT B — Personal Property

  
	
   

  	
  EXHIBIT C — Form of Tenant Estoppel Certificate

  
	
   

  	
  EXHIBIT D — Assignment and Assumption of Leases,
  Contracts and Other Property Interests

  
	
   

  	
  EXHIBIT E — Form of Bill of Sale

  
	
   

  	
  EXHIBIT F — Form of Assignment and Assumption of
  Ground Lease and Development Agreement

  
	
   

  	
  EXHIBIT G — Form of Limited Warranty Deed

  
	
   

  	
  EXHIBIT H — Leases

  
	
   

  	
  EXHIBIT I — Contracts

  
	
   

  	
  EXHIBIT J — Form of Notice to Tenants

  
	
   

  	
  EXHIBIT K — FIRPTA Certificate

  
	
   

  	
  EXHIBIT L — Buyer’s Due Diligence Item List for
  Purchase & Sale Contract

  

 

 ivExhibit 10.2

Loan No. 10032921

 

LOAN AGREEMENT

Dated as of November 30, 2006

Between

BEHRINGER HARVARD 945 EAST PACES FERRY ROAD, LLC

as Borrower

and

KEYBANK NATIONAL ASSOCIATION,

as Lender

 

 

TABLE
OF CONTENTS

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  I.

  	
   

  	
  DEFINITIONS;
  PRINCIPLES OF CONSTRUCTION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 1.1

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
  Section 1.2

  	
  Principles of Construction

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  GENERAL TERMS

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 2.1

  	
  Loan Commitment; Disbursement to
  Borrower

  	
   

  	
  23

  
	
   

  	
   

  	
  Section 2.2

  	
  Interest Rate

  	
   

  	
  24

  
	
   

  	
   

  	
  Section 2.3

  	
  Loan Payment

  	
   

  	
  24

  
	
   

  	
   

  	
  Section 2.4

  	
  Prepayments

  	
   

  	
  25

  
	
   

  	
   

  	
  Section 2.5

  	
  Defeasance

  	
   

  	
  26

  
	
   

  	
   

  	
  Section 2.6

  	
  Release of Property

  	
   

  	
  29

  
	
   

  	
   

  	
  Section 2.7

  	
  Clearing Account/Cash Management

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  CONDITIONS PRECEDENT

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.1

  	
  Conditions Precedent to Closing

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 4.1

  	
  Borrower Representations

  	
   

  	
  35

  
	
   

  	
   

  	
  Section 4.2

  	
  Survival of Representations

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V.

  	
   

  	
  BORROWER COVENANTS

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 5.1

  	
  Affirmative Covenants

  	
   

  	
  44

  
	
   

  	
   

  	
  Section 5.2

  	
  Negative Covenants

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VI.

  	
   

  	
  INSURANCE; CASUALTY; CONDEMNATION

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 6.1

  	
  Insurance

  	
   

  	
  61

  
	
   

  	
   

  	
  Section 6.2

  	
  Casualty

  	
   

  	
  65

  
	
   

  	
   

  	
  Section 6.3

  	
  Condemnation

  	
   

  	
  65

  
	
   

  	
   

  	
  Section 6.4

  	
  Restoration

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VII.

  	
   

  	
  RESERVE FUNDS

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 7.1

  	
  Property Reserve Funds

  	
   

  	
  71

  
	
   

  	
   

  	
  Section 7.2

  	
  Tax and Insurance Escrow Funds

  	
   

  	
  71

  
	
   

  	
   

  	
  Section 7.3

  	
  Replacements and Replacement
  Reserve

  	
   

  	
  72

  
	
   

  	
   

  	
  Section 7.4

  	
  Rollover Reserve

  	
   

  	
  76

  

 

 

 

	
   

  	
   

  	
  Section 7.5

  	
  Deposits to Additional Collateral
  Funds

  	
   

  	
  77

  
	
   

  	
   

  	
  Section 7.6

  	
  Deposits of Ground Rent Funds

  	
   

  	
  78

  
	
   

  	
   

  	
  Section 7.7

  	
  Deposits to TI Allowance Reserve
  Funds

  	
   

  	
  78

  
	
   

  	
   

  	
  Section 7.8

  	
  Reserve Funds, Generally

  	
   

  	
  79

  
	
   

  	
   

  	
  Section 7.9

  	
  Letter of Credit Rights

  	
   

  	
  80

  
	
   

  	
   

  	
  Section 7.10

  	
  Application of Letter of Credit Proceeds

  	
   

  	
  80

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VIII.

  	
   

  	
  DEFAULTS

  	
   

  	
  80

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 8.1

  	
  Event of Default

  	
   

  	
  80

  
	
   

  	
   

  	
  Section 8.2

  	
  Remedies

  	
   

  	
  83

  
	
   

  	
   

  	
  Section 8.3

  	
  Remedies Cumulative; Waivers

  	
   

  	
  84

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IX.

  	
   

  	
  SPECIAL PROVISIONS

  	
   

  	
  85

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 9.1

  	
  Securitization

  	
   

  	
  85

  
	
   

  	
   

  	
  Section 9.2

  	
  Securitization Indemnification

  	
   

  	
  88

  
	
   

  	
   

  	
  Section 9.3

  	
  Exculpation

  	
   

  	
  90

  
	
   

  	
   

  	
  Section 9.4

  	
  Matters Concerning Property Manager

  	
   

  	
  92

  
	
   

  	
   

  	
  Section 9.5

  	
  Servicer

  	
   

  	
  92

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  X.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 10.1

  	
  Survival

  	
   

  	
  92

  
	
   

  	
   

  	
  Section 10.2

  	
  Lender’s Discretion

  	
   

  	
  92

  
	
   

  	
   

  	
  Section 10.3

  	
  Governing Law

  	
   

  	
  92

  
	
   

  	
   

  	
  Section 10.4

  	
  Modification, Waiver in Writing

  	
   

  	
  93

  
	
   

  	
   

  	
  Section 10.5

  	
  Delay Not a Waiver

  	
   

  	
  93

  
	
   

  	
   

  	
  Section 10.6

  	
  Notices

  	
   

  	
  93

  
	
   

  	
   

  	
  Section 10.7

  	
  Trial by Jury

  	
   

  	
  94

  
	
   

  	
   

  	
  Section 10.8

  	
  Headings

  	
   

  	
  94

  
	
   

  	
   

  	
  Section 10.9

  	
  Severability

  	
   

  	
  94

  
	
   

  	
   

  	
  Section 10.10

  	
  Preferences

  	
   

  	
  94

  
	
   

  	
   

  	
  Section 10.11

  	
  Waiver of Notice

  	
   

  	
  95

  
	
   

  	
   

  	
  Section 10.12

  	
  Remedies of Borrower

  	
   

  	
  95

  
	
   

  	
   

  	
  Section 10.13

  	
  Expenses; Indemnity

  	
   

  	
  95

  
	
   

  	
   

  	
  Section 10.14

  	
  Schedules Incorporated

  	
   

  	
  96

  
	
   

  	
   

  	
  Section 10.15

  	
  Offsets, Counterclaims and Defenses

  	
   

  	
  96

  

 

 

 

	
  

  	
   

  	
  Section 10.16

  	
  No Joint Venture or Partnership; No
  Third Party Beneficiaries

  	
   

  	
  97

  
	
   

  	
   

  	
  Section 10.17

  	
  Publicity

  	
   

  	
  97

  
	
   

  	
   

  	
  Section 10.18

  	
  Waiver of Marshalling of Assets

  	
   

  	
  97

  
	
   

  	
   

  	
  Section 10.19

  	
  Waiver of Counterclaim

  	
   

  	
  97

  
	
   

  	
   

  	
  Section 10.20

  	
  Conflict; Construction of
  Documents; Reliance

  	
   

  	
  97

  
	
   

  	
   

  	
  Section 10.21

  	
  Brokers and Financial Advisors

  	
   

  	
  98

  
	
   

  	
   

  	
  Section 10.22

  	
  Prior Agreements

  	
   

  	
  98

  
	
   

  	
   

  	
  Section 10.23

  	
  Transfer of Loan

  	
   

  	
  98

  
	
   

  	
   

  	
  Section 10.24

  	
  Joint and Several Liability

  	
   

  	
  98

  
	
   

  	
   

  	
  Section 10.25

  	
  Attorneys Fees

  	
   

  	
  98

  

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule I

  	
  -

  	
  REA’s

  
	
   

  	
   

  	
   

  
	
  Schedule II

  	
  –

  	
  Rent Roll

  
	
   

  	
   

  	
   

  
	
  Schedule III

  	
  –

  	
  Required Repairs

  
	
   

  	
   

  	
   

  
	
  Schedule IV

  	
  –

  	
  Organizational Chart of Borrower

  
	
   

  	
   

  	
   

  
	
  Schedule V

  	
  –

  	
  Exceptions to Representations

  
	
   

  	
   

  	
   

  
	
  Schedule VI

  	
  –

  	
  Tenant Improvement Obligations

  

 

LOAN
AGREEMENT

THIS LOAN AGREEMENT,
dated as of this 30th day of November, 2006 (as amended, restated,
replaced, supplemented or otherwise modified from time to time, this “Agreement”),
between KEYBANK NATIONAL ASSOCIATION,
a national association, having an address at 911 Main Street, Suite 1500,
Kansas City, MO 64105 (together with its successors and/or assigns, “Lender”)
and BEHRINGER HARVARD 945 EAST PACES FERRY ROAD, LLC, a Delaware limited liability
company, having its principal place of business c/o Behringer Harvard Funds,
15601 Dallas Parkway, Suite 600, Addison, Texas 75001 (“Borrower”).

W I T N E S S E T H:

WHEREAS,
Borrower desires to obtain the Loan (as hereinafter defined) from Lender; and

WHEREAS, Lender
is willing to make the Loan to Borrower, subject to and in accordance with the
terms of this Agreement and the other Loan Documents (as hereinafter defined).

NOW, THEREFORE,
in consideration of the making of the Loan by Lender and the covenants,
agreements, representations and warranties set forth in this Agreement, the
parties hereto hereby covenant, agree, represent and warrant as follows:

I.                                         DEFINITIONS;
PRINCIPLES OF CONSTRUCTION

Section 1.1            Definitions.
 For all purposes of this Agreement,
except as otherwise expressly required or unless the context clearly indicates
a contrary intent:

“Additional
Collateral Deposit” shall
have the meaning set forth in Section 7.5 hereof.

“Additional
Collateral Reserve Account” shall
have the meaning set forth in Section 7.5 hereof.

“Additional
Collateral Reserve Funds” shall
have the meaning set forth in Section 7.5 hereof.

“Additional Insolvency Opinion” shall have the meaning set
forth in Section 4.1.30(c)
hereof.

“Affiliate” shall mean, as to any Person, any other Person
that, directly or indirectly, owns more than forty percent (40%) of, is in Control of, is
Controlled by or is under common Control with such Person or is a director or
officer of such Person or of an Affiliate of such Person.

 

“Affiliated Manager” shall mean any Property Manager in which
Borrower, Principal, or Guarantor has, directly or indirectly, any legal,
beneficial or economic interest.

“Agreement” shall mean this Loan Agreement, as the same may
be amended, restated, replaced, supplemented or otherwise modified from time to
time.

“ALTA” shall mean American Land Title Association, or any
successor thereto.

“Annual Budget” shall mean the operating budget, including
all planned Capital Expenditures, for the Property prepared by Borrower in
accordance with Section 5.1.11.(d)
hereof for the applicable Fiscal Year or other period.

“Approved Annual Budget” shall have the meaning set forth in Section 5.1.11(d) hereof.

“Assignment of Leases” shall mean that certain first priority
Assignment of Leases and Rents, dated as of the date hereof, from Borrower, as
assignor, to Lender, as assignee, assigning to Lender all of Borrower’s
interest in and to the Leases and Rents of the Property as security for the
Loan, as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time.

“Assignment of Management Agreement” shall mean that certain
Assignment of Management Agreement and Subordination of Management Fees, dated
as of the Closing Date, among Lender, Borrower and Property Manager, as the
same may be amended, restated, replaced, supplemented or otherwise modified
from time to time.

“Award” shall mean any compensation paid by any Governmental
Authority in connection with a Condemnation in respect of all or any part of
the Property.

“Bankruptcy Action” shall mean with respect to any Person
(a) such Person filing a voluntary petition under the Bankruptcy Code or
any other Federal or state bankruptcy or insolvency law; (b) the filing of
an involuntary petition against such Person under the Bankruptcy Code or any
other Federal or state bankruptcy or insolvency law, in which such Person
colludes with, or otherwise assists such Person, or cause to be solicited
petitioning creditors for any involuntary petition against such Person;
(c) such Person filing an answer consenting to or otherwise acquiescing in
or joining in any involuntary petition filed against it, by any other Person
under the Bankruptcy Code or any other Federal or state bankruptcy or
insolvency law; (d) such Person consenting to or acquiescing in or joining
in an application for the appointment of a custodian, receiver, trustee, or
examiner for such Person or any portion of the Property; (e) such Person
making an assignment for the benefit of creditors, or admitting, in writing or
in any legal proceeding, its insolvency or inability to pay its debts as they
become due.

“Bankruptcy Code” shall mean Title 11 of the United
States Code, 11 U.S.C. §101, et seq.,
as the same may be amended from time to time, and any successor statute or
statutes and all rules and regulations from time to time promulgated
thereunder, and any comparable foreign laws relating to bankruptcy, insolvency
or creditors’ rights or any other Federal or state bankruptcy or insolvency
law.

 2
 

 

“Basic Carrying Costs” shall mean the sum of the following costs
associated with the Property for the relevant Fiscal Year or payment
period:  (i) Taxes and
(ii) Insurance Premiums.

“Behringer
Holdings” shall mean Behringer Harvard Holdings, LLC, a Delaware
limited liability company.

“Behringer
Harvard Funds” shall mean, individually or collectively, Behringer
Holdings, Behringer Harvard Short-Term Opportunity Fund I LP, a Texas limited
partnership, Behringer Harvard Mid-Term Value Enhancement Fund I LP, a Texas
limited partnership, Behringer Harvard Operating Partnership I LP, a Texas
limited partnership, Behringer Harvard REIT I, Inc., a Maryland corporation, Behringer Harvard Opportunity REIT I, Inc., a
Maryland corporation, and/or Behringer Harvard Strategic Opportunity Fund I LP,
a Texas limited partnership.

“Borrower” shall mean Behringer Harvard 945 East Paces Ferry
Road, LLC, a Delaware limited liability company, together with its permitted
successors and assigns.

“Borrower’s Knowledge”
shall mean the actual knowledge attributable to those principals, employees and
officers of Borrower who have given substantive attention to the Property, the
Loan Documents and related matters, without any implied duty to conduct any
inquiry or investigation.

“Business Day” shall mean any day other than a Saturday,
Sunday or any other day on which national banks in New York, New York are not
open for business.

“Capital Expenditures” shall mean, for any period, the amount
expended for items capitalized under GAAP or other accounting principles
reasonably acceptable to Lender, consistently applied (including expenditures
for building improvements or major repairs, leasing commissions and tenant
improvements).

 “Cash Management
Agreement” shall mean that certain Cash Management Agreement, dated
as of the date hereof, by and among Borrower, Property Manager and Lender, as
the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time.

“Cash Sweep Period”
shall have the meaning set forth in the Cash Management Agreement.

“Casualty” shall have the meaning set forth in Section 6.2 hereof.

“Casualty/Condemnation
Prepayment”  shall have the
meaning set forth in Section 6.4 hereof.

“Casualty Consultant” shall have the meaning set forth in Section 6.4(b)(iii) hereof.

 3
 

 

“Casualty Retainage” shall have the meaning set forth in Section 6.4(b)(iv) hereof.

“Clearing Account” shall have the meaning set forth in Section 2.7.1 hereof.

“Clearing Account Agreement” shall mean that certain Clearing
Account Agreement, dated the date hereof, among Borrower, Lender and Clearing
Bank, as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time, relating to funds deposited in the Clearing
Account.

“Clearing Bank” shall mean JP Morgan Chase Bank, N.A., or any
successor or permitted assigns thereof.

 “Closing Date”
shall mean the date of the funding of the Loan.

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

“Condemnation” shall mean a temporary or permanent taking by
any Governmental Authority as the result or in lieu or in anticipation of the
exercise of the right of condemnation or eminent domain, of all or any part of
the Property, or any interest therein or right accruing thereto, including any
right of access thereto or any change of grade affecting the Property or any
part thereof.

“Condemnation Proceeds” shall have the meaning set forth in Section 6.4(b).

“Control” shall mean the possession, directly or indirectly,
of the power to direct or cause the direction of management, policies or
activities of a Person, whether through ownership of voting securities, by
contract or otherwise.  “Controlled” and “Controlling”
shall have correlative meanings.

“Debt” shall mean the outstanding principal amount set forth
in, and evidenced by, this Agreement and the Note together with all interest
accrued and unpaid thereon and all other sums (including the Defeasance Payment
Amount and any Yield Maintenance Premium) due to Lender in respect of the Loan
under the Note, this Agreement, the Security Instrument or any other Loan
Document.

“Debt Service” shall mean, with respect to any particular
period of time, scheduled principal and interest payments due under this
Agreement and the Note.

“Debt Service Coverage Ratio”
shall mean a ratio for the applicable period 
in which:

(a)                                  the
numerator is the Net Operating Income (excluding interest on credit accounts
and using annualized operating expenses for any recurring expenses not paid
monthly (e.g., Taxes and Insurance Premiums)) for such period as set forth in
the statements required hereunder, without deduction

 4
 

 

for (i) actual
management fees incurred in connection with the operation of the Property, or
(ii) amounts paid to the Reserve Funds, less (A) management fees
equal to the greater of (1) assumed management fees of three percent (3%)
of Gross Income from Operations or (2) the actual management fees
incurred, (B) assumed Replacement Reserve Account contributions equal to
$.20 per square foot of gross leasable area at the Property, and
(C) assumed Rollover Reserve Account contributions equal to (x) $1.28 per
square foot of gross leasable area at the Property for tenant improvement
obligations and (y) $.45 per square foot of gross leasable area at the Property
for leasing commission costs, (adjusted proportionately for any period other
than one year); and

(b)                                 the
denominator is the aggregate amount of principal and interest due and payable
on the Loan for such applicable period (assuming a thirty (30) year
amortization schedule, unless otherwise provided herein).

“Default” shall mean the occurrence of any event hereunder or
under any other Loan Document which, but for the giving of notice or passage of
time, or both, would be an Event of Default.

“Default Rate” shall mean, with respect to the Loan, a rate
per annum equal to the lesser of (a) the Maximum Legal Rate or
(b) five percent (5%) above the Interest Rate.

“Defeasance Date” shall have the meaning set forth in Section 2.5.1(a)(i) hereof.

“Defeasance Deposit” shall mean an amount equal to the
remaining principal amount of the Note, the Defeasance Payment Amount, any
costs and expenses incurred or to be incurred in the purchase of U.S.
Obligations necessary to meet the Scheduled Defeasance Payments and any
revenue, documentary stamp or intangible taxes or any other tax or charge due
in connection with the transfer of the Note or otherwise
required to accomplish the agreements of Sections 2.4
and 2.5 hereof (including, without
limitation, any fees and expenses of accountants, attorneys and the Rating
Agencies incurred in connection therewith).

“Defeasance Event” shall have the meaning set forth in Section 2.5.1(a) hereof.

“Defeasance Expiration Date” shall mean the date that is two
(2) years from the “startup day” within the meaning of Section 860G(a)(9) of
the Code for the REMIC Trust.

“Defeasance Payment Amount” shall mean the amount (if any)
which, when added to the remaining principal amount of the Note will be sufficient to purchase U.S. Obligations providing
the required Scheduled Defeasance Payments.

“Deposit Account” shall have the meaning set forth in Section 2.7.2 hereof.

“Development Agreement”
 shall have the meaning set forth in the
Security Instrument.

 5
 

 

“Disclosure Document” shall mean a prospectus, prospectus
supplement, private placement memorandum, or similar offering memorandum or
offering circular, or such other information reasonably requested by Lender, in
each case in preliminary or final form, used to offer Securities in connection
with a Securitization.

“Eligible Account” shall mean a separate and identifiable
account from all other funds held by the holding institution that is either
(a) an account or accounts maintained with a federal or state-chartered
depository institution or trust company which complies with the definition of
Eligible Institution or (b) a segregated trust account or accounts
maintained with a federal or state chartered depository institution or trust
company acting in its fiduciary capacity which, in the case of a state
chartered depository institution or trust company, is subject to regulations
substantially similar to 12 C.F.R. §9.10(b), having in either case a combined
capital and surplus of at least Fifty Million and 00/100 Dollars
($50,000,000.00) and subject to supervision or examination by federal and state
authority.  An Eligible Account will not
be evidenced by a certificate of deposit, passbook or other instrument.

“Eligible Institution” shall mean a depository institution or
trust company, the short term unsecured debt obligations or commercial paper of
which are rated at least “A-1+” by S&P, “P-1” by Moody’s and “F-1+” by
Fitch in the case of accounts in which funds are held for thirty (30) days or
less (or, in the case of (a) accounts in which funds are held for more than
thirty (30) days, the long-term unsecured debt obligations of which are rated
at least “AA” by Fitch and S&P and “Aa2” by Moody’s or (b) any Letter of
Credit, the long-term unsecured debt obligations of which are rated at least “A”
by Fitch and S&P and “A2” by Moody’s).

“Embargoed Person” shall have the meaning set forth in Section 5.1.24 hereof.

“Environmental Indemnity” shall mean that certain
Environmental Indemnity Agreement, dated as of the date hereof, executed by
Borrower in connection with the Loan for the benefit of Lender, as the same may
be amended, restated, replaced, supplemented or otherwise modified from time to
time.

“ERISA” shall mean the Employee Retirement Income Security
Act of 1974, as amended from time to time, and the regulations promulgated and
the rulings issued thereunder.

“Escrow Agreement” shall have the meaning set forth in Section 7.1 hereof.

“Event of Default” shall have the meaning set forth in Section 8.1(a) hereof.

“Extraordinary Expense” shall have the meaning set forth in Section 5.1.11(e) hereof.

“Fiscal Year” shall mean each twelve (12) month period
commencing on January 1 and ending on December 31 during each year of
the term of the Loan.

“Fitch” shall mean Fitch, Inc.

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

 6
 

 

“Governmental Authority” shall mean any court, board, agency,
commission, office or other authority of any nature whatsoever for any
governmental unit (foreign, federal, state, county, district, municipal, city
or otherwise) whether now or here­after in existence.

“Gross Income from Operations” shall mean for any period, all
income, computed in accordance with GAAP or other accounting principles
reasonably acceptable to Lender, derived from the ownership and operation of
the Property from whatever source during such period, including, but not limited
to, Rents from tenants in occupancy, open for business (except that tenants
with ratings of BBB or better from the Rating Agencies need not be in occupancy
or open for business) and paying full contractual rent without right of offset
or credit, utility charges, escalations, forfeited security deposits, interest
on credit accounts, service fees or charges, license fees, parking fees, rent
concessions or credits, business interruption or other loss of income or rental
insurance proceeds or other required pass-throughs and interest on Reserve
Funds, if any, but excluding Rents which in the aggregate exceed 5% of the
total Rents that are from month-to-month tenants or tenants that are included
in any Bankruptcy Action (unless such tenant’s Lease has been affirmed in the
related Bankruptcy Action), sales, use and occupancy or other taxes on receipts
required to be accounted for by Borrower to any Governmental Authority, refunds
and uncollectible accounts, sales of furniture, fixtures and equipment,
Insurance Proceeds (other than business interruption or other loss of income or
rental insurance), Awards, unforfeited security deposits, utility and other
similar deposits and any disbursements to Borrower from the Reserve Funds, if
any.  Gross income shall not be diminished
as a result of the Security Instrument or the creation of any intervening
estate or interest in the Property or any part thereof.

“Ground Lease”
shall have the meaning set forth in the granting clause of the Security
Instrument.

“Ground Lease Estoppel and
Agreement”  shall mean that
certain Johnstown South Site Lease and Development Agreement Estoppel
Certificate and Agreement to be entered into by Borrower, Lender and
Metropolitan Atlanta Rapid Transit Authority, as landlord under the Ground
Lease, in form and substance as attached to the Post Closing Agreement.

“Ground Rent”
shall mean any rent, additional rent or other charge payable by the tenant to
landlord under the Ground Lease.

“Ground Rent Funds”
shall have the meaning set forth in Section 7.6.

“Ground Rent Escrow Account”
shall have the meaning set forth in the Cash Management Agreement.

“Guarantor” shall mean Behringer Harvard REIT I, Inc., a
Maryland corporation.

“Guaranty” shall mean that certain Guaranty Agreement, dated
as of the date hereof, executed and delivered by Guarantor in connection with
the Loan to and for the benefit of Lender, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time.

 7
 

 

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

“Indebtedness” shall mean, for any Person, at a particular
date, the sum (without duplication) at such date of (a) indebtedness or
liability for borrowed money; (b) obligations evidenced by bonds, debentures,
notes, or other similar instruments; (c) obligations for the deferred purchase
price of property or services (including trade obligations); (d) obligations
under letters of credit; (e) obligations under acceptance facilities; (f) all
guaranties, endorsements (other than for collection or deposit in the ordinary
course of business) and other contingent obligations to purchase, to provide
funds for payment, to supply funds, to invest in any Person or entity, or
otherwise to assure a creditor against loss; and (g) obligations secured by any
Liens, whether or not the obligations have been assumed.

“Indemnifying Person” shall mean each of Borrower, Principal
and Guarantor.

“Independent Director”
shall mean a natural person serving as director of a corporation or manager of
a limited liability company who is not at the time of initial appointment, or
at any time while serving in such capacity, and has not been at any time during
the preceding five (5) years:  (a) a
stockholder, director, member, manager (with the exception of serving as the
Independent Director of Borrower or Principal), trustee, officer, employee,
partner, attorney or counsel of the Borrower or Principal or any Affiliate of
either of them; (b) a creditor, customer, supplier or other Person who derives
any of its purchases or revenues (other than fees for services as an
Independent Director and for providing services incidental thereto) from its
activities with the Borrower or Principal or any Affiliate of either of them;
(c) a Person or other entity Controlling or under common Control with any
Person excluded from serving as Independent Director under subparagraph (a) or
(b); or (d) a member of the immediate family of any Person excluded from
serving as Independent Director under subparagraph (a) or (b).

“Insolvency Opinion” shall mean that certain substantive
non-consolidation opinion letter dated the date hereof delivered by Luce,
Forward, Hamilton & Scripps LLP in connection with the Loan.

“Insurance Premiums” shall have the meaning set forth in Section 6.1(b) hereof.

“Insurance Proceeds” shall have the meaning set forth in Section 6.4(b) hereof.

“Interest Rate” shall mean (i) commencing on the Closing Date
through and including December 31, 2009, 
a rate of 5.475% per annum, (ii) commencing on January 1, 2010 through
and including December 31, 2012, a rate of 5.565% per annum, and (iii)
commencing on January 1, 2013 and thereafter until payment in full of the Loan,
a rate of 5.665% per annum.

“Lease” shall mean any lease, sublease or subsublease,
letting, license, concession or other agreement (whether written or oral and
whether now or hereafter in effect) pursuant to which any Person is granted a
possessory interest in, or right to use or occupy all or any portion of any
space in the Property, and every modification, amendment or other agreement
relating to such lease, sublease, subsublease, or other agreement entered into
in connection with such lease, sublease, subsublease, or other agreement and
every guarantee of the performance

 8
 

 

and observance of the covenants, conditions and
agreements to be performed and observed by the other party thereto.

“Lease Termination Fee”
shall mean any payment, fee or penalty paid by a Tenant in connection with the
cancellation or termination of such Tenant’s Lease, whether by reason of such
Tenant’s default or pursuant to the terms of such Lease, including without
limitation the RSUI Termination Fee.

“Legal Requirements” shall mean all federal, state, county,
municipal and other governmental statutes, laws, rules, orders, regulations,
ordinances, judgments, decrees and injunctions of Governmental Authorities
affecting the Property or any part thereof, or the construction, use,
alteration or operation thereof, or any part thereof, whether now or hereafter
enacted and in force, including, without limitation, the Americans with
Disabilities Act of 1990, and all permits, licenses and authorizations and
regulations relating thereto, and all covenants, agreements, restrictions and
encumbrances contained in any instruments, either of record or known to
Borrower, at any time in force affecting the Property or any part thereof,
including, without limitation, any which may (a) require repairs,
modifications or alterations in or to the Property or any part thereof, or (b) in
any way limit the use and enjoyment thereof.

“Lender” shall mean KeyBank National Association, together
with its successors and assigns.

“Letter of Credit”
shall mean a clean, irrevocable, unconditional, transferable (with all transfer
fees for the account of the applicant thereunder), evergreen letter of credit
acceptable to Lender (a) with respect to which Borrower has no reimbursement
obligations, (b) entitling the Lender to draw thereon in a location approved by
Lender, and (c) issued by an Eligible Institution.

“Licenses” shall have the meaning set forth in Section 4.1.22 hereof.

“Lien” shall mean any mortgage, deed of trust, deed to secure
debt, lien, pledge, hypothecation, assignment (for security), security
interest, or any other encumbrance, charge or transfer (for security) of, on or
affecting Borrower, the Property, any portion thereof or any interest therein,
including, without limitation, any conditional sale or other title retention
agreement, any financing lease having substantially the same economic effect as
any of the foregoing, the filing of any financing statement, and mechanic’s,
materialmen’s and other similar liens and encumbrances.

“Loan” shall mean the loan made by Lender to Borrower
pursuant to this Agreement and evidenced by the Note.

“Loan Documents” shall mean, collectively, this Agreement,
the Note, the Security Instrument, the Assignment of Leases, the Environmental
Indemnity, the Assignment of Management Agreement, the Guaranty, the Cash
Management Agreement, the Clearing Account Agreement, the Post Closing
Agreement and all other documents pursuant to which any Person incurs, has
incurred or assumes any obligation to or for the benefit of Lender in
connection with the Loan.

 9
 

 

“Material Action”
means, with respect to any Person, to file any insolvency or reorganization
case or proceeding, to institute proceedings to have such Person be adjudicated
bankrupt or insolvent, to institute proceedings under any applicable insolvency
law, to seek any relief under any law relating to relief from debts or the
protection of debtors, to consent to the filing or institution of bankruptcy or
insolvency proceedings against such Person, to file a petition seeking, or
consent to, reorganization or relief with respect to such Person under any
applicable federal or state law relating to bankruptcy or insolvency, to seek
or consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator, custodian, or any similar official of or for such Person or a
substantial part of its property, to make any assignment for the benefit of
creditors of such Person, to admit in writing such Person’s inability to pay
its debts generally as they become due, or to affirmatively take action in
furtherance of any of the foregoing.

“Maturity Date” shall mean December 1, 2016, or such other
date on which the final payment of principal of the Note becomes due and
payable as therein or herein provided, whether at such stated maturity date, by
declaration of acceleration, or otherwise.

“Maximum Legal Rate” shall mean the maximum nonusurious
interest rate, if any, that at any time or from time to time may be contracted
for, taken, reserved, charged or received on the indebtedness evidenced by the
Note and as provided for herein or the other Loan Documents, under the laws of
such state or states whose laws are held by any court of competent jurisdiction
to govern the interest rate provisions of the Loan.

“Monthly Debt Service Payment Amount” shall mean (a) an
amount equal to interest only on the outstanding principal balance of the Loan,
calculated in accordance with the terms hereof, for each Payment Date
commencing on the Payment Date occurring in January, 2007 through and including
the Payment Date occurring in December, 2011, (b) a constant monthly
payment of $468,936.59 (subject to re-calculation upon the occurrence of a
principal paydown as provided under the terms of Section 7.5.1 hereof, provided
no Event of Default is continuing) for each Payment Date commencing on the
Payment Date occurring in January, 2012 through and including the Payment Date
in December, 2012, and (c) a constant monthly payment of principal and interest
(calculated in accordance with the terms hereof and based on the then
outstanding principal balance of the Loan) with respect to each Payment Date
commencing on the Payment Date occurring in January, 2013 and each and every
Payment Date thereafter.

“Moody’s” shall mean Moody’s Investors Service, Inc.

“Net Cash Flow” shall mean, for any period, the amount
obtained by subtracting Operating Expenses and Capital Expenditures for such
period from Gross Income from Operations for such period.

“Net Cash Flow Schedule” shall have the meaning set forth in Section 5.1.11(b) hereof.

“Net Operating Income” shall mean the amount obtained by
subtracting Operating Expenses from Gross Income from Operations.

“Net Proceeds” shall have the meaning set forth in Section 6.4(b) hereof.

 10
 

 

“Net Proceeds Deficiency” shall have the meaning set forth in
Section 6.4(b)(vi) hereof.

“Net Proceeds Prepayment” shall have the meaning set forth in
Section 6.4(e) hereof.

“Note” shall mean that certain Promissory Note, date the date
hereof, in the principal amount of EIGHTY-TWO MILLION and No/100 DOLLARS
($82,000,000), made by Borrower in favor of Lender, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time.

“Officer’s Certificate” shall mean a certificate delivered to
Lender by Borrower which is signed by an authorized senior (president or
vice-president) officer of Borrower or if applicable an authorized senior
(president or vice-president) officer of the general partner or managing member
of Borrower.

“Operating Expenses” shall mean the total of all
expenditures, computed in accordance with GAAP or other accounting principles
reasonably acceptable to Lender, of whatever kind relating to the operation,
maintenance and management of the Property that are incurred on a regular
monthly or other periodic basis, including without limitation, utilities,
ordinary repairs and maintenance, insurance, license fees, property taxes and
assessments, advertising expenses, management fees, payroll and related taxes,
computer processing charges, operational equipment or other lease payments, and
other similar costs, but excluding depreciation, Debt Service, Capital
Expenditures and contributions to the Reserve Funds.

“Other Charges” shall mean all ground rents, maintenance
charges, impositions other than Taxes, and any other charges, including,
without limitation, vault charges and license fees for the use of vaults,
chutes and similar areas adjoining the Property, now or hereafter levied or
assessed or imposed against the Property or any part thereof, but shall exclude
charges for utilities payable directly by a Tenant.

“Other Obligations” shall have the meaning as set forth in
the Security Instrument.

“Payment Date” shall mean the first (1st) day of each calendar month
during the term of the Loan or, if such day is not a Business Day, the
immediately preceding Business Day.

“Permitted Encumbrances” shall mean, with respect to the
Property, collectively, (a) the Liens and security interests created by
the Loan Documents, (b) all Liens, encumbrances and other matters
disclosed in the Title Insurance Policy, (c) Liens, if any, for Taxes imposed
by any Governmental Authority not yet due or delinquent, and (d) such
other title and survey exceptions as Lender has approved or may approve in
writing in Lender’s reasonable discretion, which Permitted Encumbrances in the
aggregate do not materially adversely affect the value or use of the Property
or Borrower’s ability to repay the Loan.

“Permitted Release Date” shall mean the date that is the
third (3rd)
anniversary of the first Payment Date.

 11
 

 

“Permitted Use”
shall mean office and other appurtenant and related uses.

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

“Personal Property” shall have the meaning set forth in the
granting clause of the Security Instrument.

“Physical Conditions Report” shall mean a report prepared by
a company satisfactory to Lender regarding the physical condition of the
Property, satisfactory in form and substance to Lender in its sole discretion,
which report shall, among other things, (a) confirm that the Property and
its use complies, in all material respects, with all applicable Legal
Requirements (including, without limitation, zoning, subdivision and building
laws) and (b) to the extent available, include a copy of a final
certificate of occupancy with respect to all Improvements on the Property.

“Plan” shall have the meaning specified in Section 5.2.9(c) hereof.

“Policies” shall have the meaning specified in Section 6.1(b) hereof.

“Policy” shall have the meaning specified in Section 6.1(b) hereof.

“Post Closing Agreement”  shall mean that certain Post Closing
Obligations Letter, dated as of the date hereof, given by Borrower to Lender.

“Prepayment Rate” shall mean the yield calculated by the
linear interpolation of the yields, as reported in Federal Reserve Statistical
Release H.15-Selected Interest Rates under the heading “U.S. Government
Securities/Treasury Constant Maturities” for the week ending prior to the date
the payment or such proceeds are received, of U.S. Treasury constant maturities
with maturity dates (one longer and one shorter) most nearly approximating the
Maturity Date.  (In the event Release
H.15 is no longer published, Lender shall select a comparable publication to
determine the Treasury Rate).

“Prime Rate”
shall mean the prime rate reported in the Money Rates section of The Wall
Street Journal.  In the event that The
Wall Street Journal should cease or temporarily interrupt publication, the term
“Prime Rate” shall mean the daily average prime rate published in another
business newspaper, or business section of a newspaper, of national standing
and general circulation chosen by Lender. 
In the event that a prime rate is no longer generally published or is
limited, regulated or administered by a governmental or quasi-governmental
body, then Lender shall select a comparable interest rate index which is readily
available and verifiable to Borrower but is beyond Lender’s control.

“Principal”
shall mean the Special Purpose Entity that is the general partner of Borrower,
if Borrower is a limited partnership, or managing member of Borrower, if
Borrower is a limited liability company.

 12
 

 

“Property” shall mean the parcel
of real property, the Improvements thereon and all personal property owned by
Borrower and encumbered by the Security Instrument, together with all rights
pertaining to such property and Improvements, as more particularly described in
the granting clauses of the Security Instrument and referred to therein as the “Property”.

“Property Management Agreement” shall mean the management
agreement entered into by and between Borrower and Property Manager, pursuant
to which Property Manager is to provide management and other services with
respect to the Property, or, if the context requires, the Replacement
Management Agreement.

“Property Manager” shall mean HPT Management Services LP, a
Texas limited partnership, or, if the context requires, a Qualifying Property
Manager who is managing the Property in accordance with the terms and
provisions of this Agreement pursuant to a Replacement Management Agreement.

“Property Reserve Account” shall have the meaning set forth
in Section 7.1 hereof.

“Property Reserve Deposit” shall have the meaning set forth
in Section 7.1 hereof.

“Property Reserve Funds” shall have the meaning set forth in Section
7.1 hereof.

“Provided Information” shall mean any and all financial and other
information provided at any time by, or on behalf of, any Indemnifying Person
with respect to any Property, Borrower, Principal, Guarantor and/or Property
Manager.

“Qualifying Property Manager” shall mean either
(a) Property Manager; or (b) a reputable and experienced management
organization reasonably satisfactory to Lender, which organization or its
principals possess at least ten (10) years experience in managing properties
similar in size, scope, use and value as the Property, provided,
that Borrower shall have obtained (i) prior written confirmation from the
applicable Rating Agencies that management of the Property by such Person will
not cause a downgrade, withdrawal or qualification of the then current ratings
of the Securities or any class thereof and (ii) if such Person is an
Affiliate of Borrower, an Additional Insolvency Opinion.  Lender acknowledges that, notwithstanding
anything herein to the contrary, HPT Management Services LP shall be deemed to
be a Qualifying Property Manager.

“Rating Agencies” shall mean each of S&P, Moody’s and
Fitch, or any other nationally recognized statistical rating agency which has
been approved by Lender.

“Related Entities” shall have the meaning set forth in Section 5.2.10(e) hereof.

“REA”
shall mean, individually or collectively (as the context requires), each
reciprocal easement or similar agreement affecting the Property as more
particularly described on Schedule I hereto (if any) and any future reciprocal
easement or similar agreement affecting the Property entered into in accordance
with the applicable terms and conditions hereof.

 13
 

 

“REMIC Trust” shall mean a “real estate mortgage investment
conduit” within the meaning of Section 860D of the Code that holds the
Note.

“Relevant
Leasing Threshold” shall mean any Lease for an amount of leaseable
square footage equal to or greater than one (1) full floor.

“Relevant Restoration Threshold”
shall mean Five Hundred Thousand and No/100 dollars ($500,000).

“Rents” shall mean all rents (including percentage rents),
rent equivalents, moneys payable as damages or in lieu of rent or rent
equivalents, royalties (including, without limitation, all oil and gas or other
mineral royalties and bonuses), income, receivables, receipts, revenues,
deposits (including, without limitation, security, utility and other deposits),
accounts, cash, issues, profits, charges for services rendered, all other
amounts payable as rent under any Lease or other agreement relating to the
Property, including, without limitation, charges for electricity, oil, gas,
water, steam, heat, ventilation, air-conditioning and any other energy,
telecommunication, telephone, utility or similar items or time use charges,
HVAC equipment charges, sprinkler charges, escalation charges, license fees,
maintenance fees, charges for Taxes, Operating Expenses or other reimbursables
payable to Borrower (or to the Property Manager for the account of Borrower)
under any Lease, and other consideration of whatever form or nature received by
or paid to or for the account of or benefit of Borrower or its agents or
employees (but excluding amounts paid by Borrower to its agents or employees)
from any and all sources arising from or attributable to the Property, and
proceeds, if any, from business interruption or other loss of income insurance.

“Replacement Management Agreement” shall mean, collectively,
(a) either (i) a management agreement with a Qualifying Property
Manager substantially in the same form and substance as the Property Management
Agreement, or (ii) a management agreement with a Qualifying Property
Manager, which management agreement shall be reasonably acceptable to Lender in
form and substance, provided, with respect to this subclause
(ii), Lender, at its option, may require that Borrower shall have obtained
prior written confirmation from the applicable Rating Agencies that such
management agreement will not cause a downgrade, withdrawal or qualification of
the then current rating of the Securities or any class thereof and (b) an
assignment of management agreement and subordination of management fees
substantially in the form then used by Lender (or of such other form and
substance reasonably acceptable to Lender), executed and delivered to Lender by
Borrower and such Qualifying Property Manager at Borrower’s expense.

“Replacement Reserve Account” shall have the meaning set
forth in Section 7.3.1 hereof.

“Replacement Reserve Funds” shall have the meaning set forth
in Section 7.3.1 hereof.

“Replacement Reserve Monthly Deposit” shall have the meaning
set forth in Section 7.3.1
hereof.

“Replacements” shall have the meaning set forth in Section 7.3.1(a) hereof.

 14
 

 

“Required Repairs” shall have the meaning set forth in Section 7.1 hereof.

“Reserve Funds” shall mean, collectively, the Tax and
Insurance Escrow Funds, the Replacement Reserve Funds, the Rollover Reserve
Funds, the Property Reserve Funds, the Additional Collateral Reserve Funds, the
TI Improvement Reserve Funds and any other escrow fund established by the Loan
Documents.

“Resizing Event”
shall have the meaning set forth in Section 9.1.2 hereof.

“Restoration” shall mean the repair and restoration of the
Property after a Casualty or Condemnation as nearly as possible to the
condition the Property was in immediately prior to such Casualty or
Condemnation, with such alterations as may be reasonably approved by Lender.

“Restricted Party” shall mean collectively,
(a) Borrower, Principal, any Guarantor, and any Affiliated Manager and
(b) any shareholder, partner, member, non-member manager, any direct or
indirect legal or beneficial owner of, Borrower, Principal, any Guarantor, any
Affiliated Manager or any non-member manager.

“Rollover Reserve Account” shall have the meaning set forth
in Section 7.4.1 hereof.

“Rollover Reserve Funds” shall have the meaning set forth in Section 7.4.1 hereof.

“RSUI” shall
mean RSUI Indemnity Company, a New Hampshire corporation, as tenant under the
RSUI Lease.

“RSUI Lease”
shall mean that certain Lease, dated September 9, 1988, by Borrower’s
predecessor in interest, as landlord and RSUI’s predecessor in interest, as
tenant.

“RSUI Termination Fee”  shall mean the “Termination Fee” as defined
in the RSUI Lease.

“S&P” shall mean Standard & Poor’s Ratings Group, a
division of the McGraw-Hill Companies.

“Sale or Pledge” shall mean a voluntary or involuntary sale,
conveyance, assignment, transfer, encumbrance, pledge, grant of option or other
transfer or disposal of a legal or beneficial interest, whether direct or
indirect.

“Scheduled Defeasance Payments” shall have the meaning set
forth in Section 2.5.1(b)
hereof.

“Securities” shall have the meaning set forth in Section 9.1 hereof.

“Securitization” shall have the meaning set forth in Section 9.1 hereof.

 15

 

“Security Agreement” shall have the meaning set forth in Section 2.5.1(a)(vi) hereof.

“Security Instrument” shall mean that certain first priority
Fee and Leasehold Deed to Secure Debt and Security Agreement, dated as of the
date hereof, executed and delivered by Borrower to Lender as security for the
Loan and encumbering the Property, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time.

“Servicer” shall have the
meaning set forth in Section 9.5
hereof.

“Servicing Agreement” shall have the meaning set forth in Section 9.5 hereof.

“Severed Loan Documents” shall have the meaning set forth in Section 8.2(c) hereof.

“Special Purpose Entity”
shall mean a corporation, limited partnership or limited liability company
that, since the date of its formation and at all times on and after the date
thereof, has complied with and shall at all times comply with the following
requirements unless it has received either prior consent to do otherwise from
Lender or a permitted administrative agent thereof, or, while the Loan is
securitized, confirmation from each of the applicable Rating Agencies requiring
such review that such noncompliance would not result in the requalification,
withdrawal, or downgrade of the ratings of any Securities or any class thereof:

(i)    is and shall be organized solely for the
purpose of (A) in the case of Borrower, acquiring, developing, owning, holding,
selling, leasing, transferring, exchanging, managing and operating the
Property, entering into and performing its obligations under the Loan Documents
with Lender, refinancing the Property in connection with a permitted repayment
of the Loan, and transacting lawful business that is incident, necessary and
appropriate to accomplish the foregoing; or (B) in the case of a Principal,
acting as a general partner of the limited partnership that owns the Property
or as member of the limited liability company that owns the Property and
transacting lawful business that is incident, necessary and appropriate to accomplish
the foregoing;

(ii)   has not engaged and shall not engage in any
business unrelated to (A) the acquisition, development, ownership, management,
operation or sale of the Property, or (B) in the case of a Principal, acting as
general partner of the limited partnership that owns the Property or acting as
a member of the limited liability company that owns the Property, as
applicable;

(iii)  has not owned and shall not own any real
property other than, in the case of Borrower, the Property;

(iv)  does not have, shall not have and at no time
had any assets other than (A) in the case of Borrower, the Property and
personal property necessary or incidental to its ownership and operation of the
Property or (B) in the case of a Principal, its partnership interest in the
limited partnership or the member interest

 16
 

 

in the limited liability
company that owns the Property and personal property necessary or incidental to
its ownership of such interests;

(v)   has not engaged in, sought, consented or
permitted to and shall not engage in, seek, consent to or permit (A) any
dissolution, winding up, liquidation, consolidation or merger, (B) any sale or
other transfer of all or substantially all of its assets or any sale of assets
outside the ordinary course of its business, except as permitted by the Loan
Documents, or (C) in the case of a Principal, any transfer of its partnership
or membership interests;

(vi)  shall not cause, consent to or permit any
amendment of its limited partnership agreement, articles of incorporation, articles
of organization, certificate of formation, operating agreement or other
formation document or organizational document (as applicable) with respect to
the matters set forth in this definition;

(vii) if such entity is a limited partnership, has
and shall have at least one general partner and has and shall have, as its only
general partners, Special Purpose Entities each of which (A) is a corporation
or single-member Delaware limited liability company, (B) has one Independent
Director (provided, however, if any Rating Agency requires two (2) Independent
Directors, Borrower shall appoint, or cause the appointment of, a second
Independent Director), and (C) holds a direct interest as general partner in
the limited partnership of not less than 0.5% (or 0.1%, if the limited
partnership is a Delaware entity);

(viii)  if such entity is a corporation, has and shall
have at least one (1) Independent Director (provided, however, if any Rating
Agency requires two (2) Independent Directors, Borrower shall appoint, or cause
the appointment of, a second Independent Director), and shall not cause or
permit the board of directors of such entity to take any Material Action either
with respect to itself or, if the corporation is a Principal, with respect to
Borrower or any action requiring the unanimous affirmative vote of one hundred
percent (100%) of the members of its board of directors unless each Independent
Director shall have participated in such vote and shall have voted in favor of
such action;

(ix)   if such entity is a limited liability company
(other than a limited liability company meeting all of the requirements
applicable to a single-member limited liability company set forth in this
definition of “Special Purpose Entity”), has and
shall have at least one (1) member that is a Special Purpose Entity, that is a
corporation, that has at least one (1) Independent Director (provided, however,
if any Rating Agency requires two (2) Independent Directors, Borrower shall
appoint, or cause the appointment of, a second Independent Director) and that
directly owns at least one-half-of-one percent (0.5%) of the equity of the
limited liability company (or 0.1% if the limited liability company is a
Delaware entity);

 17
 

 

(x)    if such entity is a single-member limited
liability company, (A) is and shall be a Delaware limited liability company,
(B) has and shall have at least one (1) Independent Director (provided,
however, if any Rating Agency requires two (2) Independent Directors, Borrower
shall appoint, or cause the appointment of, a second Independent Director)
serving as manager of such company, (C) shall not take any Material Action and
shall not cause or permit the members or managers of such entity to take any
Material Action, either with respect to itself or, if the company is a
Principal, with respect to Borrower, in each case unless the required number of
Independent Directors then serving as managers of the company shall have
participated and consented in writing to such action, and (D) has and shall
have either (1) a member which owns no economic interest in the company, has
signed the company’s limited liability company agreement and has no obligation
to make capital contributions to the company, or (2) a natural person or entity
that is not a member of the company, that has signed its limited liability
company agreement and that, under the terms of such limited liability company
agreement becomes a member of the company immediately prior to the withdrawal
or dissolution of the last remaining member of the company;

(xi)   has not and shall not (and, if such entity is
(a) a limited liability company, has and shall have a limited liability
agreement or an operating agreement, as applicable, (b) a limited partnership,
has a limited partnership agreement, or (c) a corporation, has a certificate of
incorporation or articles that, in each case, provide that such entity shall
not) (1) dissolve, merge, liquidate, consolidate; (2) sell all or substantially
all of its assets; (3) to the extent permitted by applicable law, amend its
organizational documents with respect to the matters set forth in this
definition without the consent of Lender; or (4) without the affirmative vote
of each Independent Director of itself or the consent of a Principal that is a
member or general partner in it:  (A)
file or consent to the filing of any bankruptcy, insolvency or reorganization
case or proceeding, institute any proceedings under any applicable insolvency
law or otherwise seek relief under any laws relating to the relief from debts
or the protection of debtors generally, file a bankruptcy or insolvency
petition or otherwise institute insolvency proceedings; (B) seek or consent to
the appointment of a receiver, liquidator, assignee, trustee, sequestrator,
custodian or any similar official for the entity or a substantial portion of
its property; (C) make an assignment for the benefit of the creditors of the
entity; or (D) affirmatively take any action in furtherance of any of the
foregoing;

(xii)  has at all times been and shall at all times
remain solvent and has paid and shall pay its debts and liabilities (including,
a fairly-allocated portion of any personnel and overhead expenses that it
shares with any Affiliate) from its assets as the same shall become due, and
has maintained and shall maintain adequate capital for the normal obligations
reasonably foreseeable in a business of its size and character and in light of
its contemplated business operations;

(xiii) has not failed and shall not fail to correct
any known misunderstanding regarding the separate identity of such entity;

 18
 

 

(xiv)   has maintained and shall maintain its bank
accounts, books of account, books and records separate from those of any other
Person and, to the extent that it is not a disregarded entity for tax purposes
and is required to file tax returns under applicable law, has filed and shall
file its own tax returns, except to the extent that it is required by law to
file consolidated tax returns and, if it is a corporation, has not filed and
shall not file a consolidated federal income tax return with any other
corporation, except to the extent that it is required by law to file
consolidated tax returns;

(xv) has maintained and shall maintain its own
resolutions and agreements;

(xvi)   has not commingled and shall not commingle
its funds or assets with those of any other Person and has not participated and
shall not participate in any cash management system with any other Person,
except with respect to a custodial account maintained by the Property Manager
on behalf of Affiliates of Borrower and, with respect to funds in such
custodial account, has separately accounted, and will continue to separately
account for, each item of income and expense applicable to the Property and
Borrower;

(xvii)  has held and shall hold its assets in its own
name;

(xviii) [intentionally omitted];

(xix) (A) has maintained and shall maintain its
financial statements, accounting records and other entity documents separate
from those of any other Person; (B) has shown and shall show, in its financial
statements, its asset and liabilities separate and apart from those of any
other Person; and (C) has not permitted and shall not permit its assets to be
listed as assets on the financial statement of any of its Affiliates except as
required by GAAP; provided, however, that any such consolidated financial
statement contains a note indicating that the Special Purpose Entity’s separate
assets and credit are not available to pay the debts of such Affiliate and that
the Special Purpose Entity’s liabilities do not 
constitute obligations of the consolidated entity;

(xx)  has paid and shall pay its own liabilities and
expenses, including the salaries of its own employees, out of its own funds and
assets, and has maintained and shall maintain a sufficient number of employees
in light of its contemplated business operations, which may be none;

(xxi) has observed and shall observe all partnership,
corporate or limited liability company formalities, as applicable;

(xxii)  [intentionally omitted]

(xxiii) shall have no Indebtedness other than (i) the
Loan, (ii) liabilities incurred in the ordinary course of business relating to
the ownership and operation of the Property and the routine administration of
Borrower, in amounts not to

 19
 

 

exceed 2.5% of the
original principal amount of the Note (other than management fees and
commissions and liabilities that are reserved for) and, in the case of a
general partner or managing member of a Person, liabilities arising by reason
of its status as a general partner or managing member, which
liabilities are paid not more than sixty (60) days after the later of the date
incurred or invoiced (unless disputed in good faith with adequate reserves
established therefor), are not evidenced by a note, and which amounts are
normal and reasonable under the circumstances, and (iii) such other liabilities
that are permitted pursuant to the Loan Documents;

(xxiv) has not assumed, guaranteed or become obligated
and shall not assume or guarantee or become obligated for the debts of any
other Person, has not held out and shall not hold out its credit as being
available to satisfy the obligations of any other Person or has not pledged and
shall not pledge its assets for the benefit of any other Person, in each case
except as permitted pursuant to this Agreement;

(xxv)  has not acquired and shall not acquire
obligations or securities of its partners, members or shareholders or any other
owner or Affiliate;

(xxvi) has allocated and shall allocate fairly and
reasonably any overhead expenses that are shared with any of its Affiliates,
constituents, or owners, or any guarantors of any of their respective
obligations, or any Affiliate of any of the foregoing, including, but not
limited to, paying for shared office space and for services performed by any
employee of an Affiliate;

(xxvii) has
maintained and used and shall maintain and use separate stationery, invoices
and checks bearing its name and not bearing the name of any other entity unless
such entity is clearly designated as being the Special Purpose Entity’s agent,
provided, however, that Property Manager, on behalf of such Person, may
maintain and use invoices and checks bearing Property Manager’s name;

(xxviii) [intentionally
omitted];

(xxix)  has held itself out and identified itself and
shall hold itself out and identify itself as a separate and distinct entity
under its own name or in a name franchised or licensed to it by an entity other
than an Affiliate of Borrower and not as a division or part of any other
Person, except for services rendered by Property Manager under the Property
Management Agreement, so long as Property Manager holds itself out as an agent
of Borrower

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

(xxxi)  has not made and shall not make loans to any
Person and has not held and shall not hold evidence of indebtedness issued by
any other Person or

 20
 

 

entity (other than cash
and investment-grade securities issued by an entity that is not an Affiliate of
or subject to common ownership with such entity);

(xxxii)  has
not identified and shall not identify its partners, members or shareholders, or
any Affiliate of any of them, as a division or part of it;

(xxxiii)  other
than capital contributions and distributions permitted under the terms of its
organizational documents, has not entered into or been a party to, and shall
not enter into or be a party to, any transaction with any of its partners,
members, shareholders or Affiliates except in the ordinary course of its
business and on terms which are commercially reasonable terms comparable to
those of an arm’s-length transaction with an unrelated third party;

(xxxiv)  has
not had and shall not have any obligation to, and has not indemnified and shall
not indemnify its partners, officers, directors or members, as the case may be,
in each case unless such an obligation or indemnification is fully subordinated
to the Debt and shall not constitute a claim against it in the event that its
cash flow is insufficient to pay the Debt;

(xxxv)  if such
entity is a corporation, to the extent permitted under applicable corporate
law, has considered and shall consider the interests of its creditors in
connection with all corporate actions that could reasonably be expected to
affect such creditors;

(xxxvi)  has
not had and shall not have any of its obligations guaranteed by any Affiliate
except as otherwise required in the Loan Documents;

(xxxvii)  has
not formed, acquired or held and shall not form, acquire or hold any
subsidiary, except that a Principal may acquire and hold its interest in
Borrower;

(xxxviii)  has
complied and shall comply with all of the terms and provisions contained in its
organizational documents.

(xxxix)  has
conducted and shall conduct its business so that each of the assumptions made
about it and each of the facts stated about it in the Insolvency Opinion are
true;

(xl)   has not permitted and shall not permit any
Affiliate or constituent party independent access to its bank accounts;

(xli)  is, has always been and shall continue to be
duly formed, validly existing, and in good standing in the state of its
incorporation or formation and in all other jurisdictions where it is required
to be qualified to do business; and

(xlii) has no material contingent or actual
obligations not related to the Property.

 21
 

 

“State” shall mean the State or Commonwealth in which the
Property or any part thereof is located.

“Successor Borrower” shall have the meaning set forth in Section 2.5.3 hereof.

“Survey” shall mean a survey of the Property prepared by a
surveyor licensed in the State and satisfactory to Lender and the company or
companies issuing the Title Insurance Policy, and containing a certification of
such surveyor satisfactory to Lender.

“Tax and Insurance Escrow Funds” shall have the meaning set
forth in Section 7.2 hereof
regardless of whether the funds held therein are held by Lender for the payment
of Taxes or Insurance Premiums or both.

“Taxes” shall mean all real estate and personal property
taxes, assessments, water rates or sewer rents, now or hereafter levied or
assessed or imposed against the Property or part thereof.

“Threshold Amount” shall have the meaning set forth in Section 5.1.21 hereof.

“Tenant”
shall mean any person or entity with a possessory right to all or any part of
the Property pursuant to a Lease or other written agreement.

“TI Allowance Deposit” shall have
the meaning set forth in Section 7.7 hereof.

TI Allowance Reserve Funds”
shall have the meaning set forth in Section 7.7 hereof.

TI Allowance Reserve Account”
shall have the meaning set forth in Section 7.7 hereof.

“Title Insurance Policy” shall mean an ALTA mortgagee title
insurance policy in the form acceptable to Lender (or, if the Property is in a
State which does not permit the issuance of such ALTA policy, such form as
shall be permitted in such State and acceptable to Lender) issued with respect
to the Property and insuring the lien of the Security Instrument.

“Transfer” shall have the meaning set forth in Section 5.2.10(b) hereof.

“Transferee” shall have the meaning set forth in Section 5.2.10(e)(iii) hereof.

“Transferee’s Principals” shall mean collectively,
(A) Transferee’s managing members, general partners or principal
shareholders and (B) such other members, partners or shareholders which
directly or indirectly shall own a fifty-one percent (51%) or greater economic
and voting interest in Transferee.

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

 22
 

 

“U.S. Obligations” shall mean non-redeemable securities
evidencing an obligation to timely pay principal and/or interest in a full and
timely manner that are (a) direct obligations of the United States of
America for the payment of which its full faith and credit is pledged, or
(b) to the extent acceptable to the Rating Agencies, other “government
securities” within the meaning of Section 2(a)(16) of the Investment
Company Act of 1940, as amended; provided that up to twenty-five percent (25%)
of the U.S. obligations may be securities issued by quasi-governmental agencies
rated at least AAA by the Rating Agencies provided that such securities are
acceptable to the Rating Agencies.

“Yield Maintenance Premium” shall mean an amount equal to the
greater of (a) one percent (1%) of the outstanding principal of the Loan to be
prepaid or satisfied and (b) the excess, if any, of (i) the sum of the
present values of all then-scheduled payments of principal and interest under
the Note assuming that all outstanding principal and interest on the Loan is
paid on the Maturity Date (with each such payment and assumed payment
discounted to its present value at the date of prepayment at the rate which,
when compounded monthly, is equivalent to the Prepayment Rate when compounded
semi-annually and deducting from the sum of such present values any short-term
interest paid from the date of prepayment to the next succeeding Payment Date
in the event such payment is not made on a Payment Date), over (ii) the
principal amount being prepaid.

Section
1.2            Principles of
Construction. All references to sections and
schedules are to sections and schedules in or to this Agreement unless
otherwise specified.  All uses of the
word “including” shall mean “including, without limitation” unless the context
shall indicate otherwise.  Unless
otherwise specified, the words “hereof,” “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement.  Unless otherwise specified, all meanings
attributed to defined terms herein shall be equally applicable to both the
singular and plural forms of the terms so defined.

II.                                     GENERAL
TERMS

Section
2.1            Loan Commitment;
Disbursement to Borrower.

2.1.1       Agreement
to Lend and Borrow. Subject to and upon the terms
and conditions set forth herein, Lender hereby agrees to make and Borrower
hereby agrees to accept the Loan on the Closing Date.

2.1.2       Single
Disbursement to Borrower. Borrower may request and
receive only one (1) borrowing hereunder in respect of the Loan and any amount
borrowed and repaid hereunder in respect of the Loan may not be reborrowed.

2.1.3       The
Note, Security Instrument and Loan Documents. The
Loan shall be evidenced by the Note and secured by the Security Instrument, the
Assignment of Leases and the other Loan Documents.

 23
 

 

2.1.4       Use
of Proceeds. Borrower shall use the proceeds of
the Loan to (a) acquire the Property or repay and discharge any existing loans
relating to the Property, (b) pay all past-due Basic Carrying Costs, if
any, with respect to the Property, (c) make deposits into the Reserve
Funds on the Closing Date in the amounts provided herein, (d) pay costs
and expenses incurred in connection with the closing of the Loan, as approved
by Lender, (e) fund any working capital requirements of the Property and
(f) distribute the balance, if any, to Borrower.

Section
2.2            Interest Rate.

2.2.1       Interest
Rate. Interest on the outstanding principal
balance of the Loan shall accrue from (and include) the Closing Date to but
excluding the Maturity Date at the Interest Rate (unless the Default Rate shall
be in effect).

2.2.2       Interest
Calculation. Interest on the outstanding principal
balance of the Loan shall be calculated by multiplying (a) the actual
number of days elapsed in the period for which the calculation is being made by
(b) a daily rate based on a three hundred sixty (360) day year by
(c) the outstanding principal balance.

2.2.3       Default
Rate. In the event that, and for so long as, any
Event of Default shall have occurred and be continuing, the outstanding
principal balance of the Loan and, to the extent permitted by law, all accrued
and unpaid interest in respect of the Loan and any other amounts due pursuant
to the Loan Documents, shall accrue interest at the Default Rate, calculated
from the date such payment was due without regard to any grace or cure periods
contained herein.

2.2.4       Usury
Savings. This Agreement, the Note and the other
Loan Documents are subject to the express condition that at no time shall
Borrower be obligated or required to pay interest on the principal balance of
the Loan at a rate which could subject Lender to either civil or criminal
liability as a result of being in excess of the Maximum Legal Rate.  If, by the terms of this Agreement or the
other Loan Documents, Borrower is at any time required or obligated to pay
interest on the principal balance due hereunder at a rate in excess of the
Maximum Legal Rate, the Interest Rate or the Default Rate, as the case may be,
shall be deemed to be immediately reduced to the Maximum Legal Rate and all
previous payments in excess of the Maximum Legal Rate shall be deemed to have
been payments in reduction of principal and not on account of the interest due
hereunder.  All sums paid or agreed to be
paid to Lender for the use, forbearance, or detention of the sums due under the
Loan, shall, to the extent permitted by applicable law, be amortized, prorated,
allocated, and spread throughout the full stated term of the Loan until payment
in full so that the rate or amount of interest on account of the Loan does not
exceed the Maximum Legal Rate of interest from time to time in effect and
applicable to the Loan for so long as the Loan is outstanding.

Section
2.3            Loan Payment.

2.3.1       Monthly
Debt Service Payments.  Borrower shall pay to Lender (a) on the
Closing Date, an amount equal to interest only on the outstanding principal

 24
 

 

balance of the Loan from the Closing Date up to and including November 30,
2006 and (b) on each Payment Date thereafter up to and including the
Maturity Date, Borrower shall make a payment to Lender of principal and/or
interest, as applicable, in an amount equal to the Monthly Debt Service Payment
Amount, which payments shall be applied first to accrued and unpaid interest
and the balance to principal.  The non-interest only portion
of Monthly Debt Service Payment Amount required hereunder is based upon a
thirty (30) year amortization schedule.

2.3.2       Payments
Generally. 
The first (1st)
interest accrual period hereunder shall commence on and include the Closing
Date and shall end on and include December 31, 2006.  Each interest accrual period thereafter shall
commence on the first (1st) day
of each calendar month during the term of this Agreement and shall end on and
include the final calendar date of such calendar month.  For purposes of making payments hereunder,
but not for purposes of calculating interest accrual periods, if the day on
which such payment is due is not a Business Day, then amounts due on such date
shall be due on the immediately preceding Business Day and with respect to
payments of principal due on the Maturity Date, interest shall be payable at
the Interest Rate or the Default Rate, as the case may be, through and
including the day immediately preceding such Maturity Date.  All amounts due under this Agreement and the
other Loan Documents shall be payable without setoff, counterclaim, defense or
any other deduction whatsoever.

2.3.3       Payment
on Maturity Date.  Borrower shall pay to Lender on the Maturity
Date the outstanding principal balance of the Loan, all accrued and unpaid
interest and all other amounts due hereunder and under the Note, the Security
Instrument and the other Loan Documents.

2.3.4       Late
Payment Charge. 
If any principal, interest or any other sums due under the Loan
Documents (excluding principal due on the Maturity Date) are not paid by
Borrower on or prior to the date on which it is due, Borrower shall pay to Lender
upon demand an amount equal to the lesser of five percent (5%) of such unpaid
sum or the Maximum Legal Rate in order to defray the expense incurred by Lender
in handling and processing such delinquent payment and to compensate Lender for
the loss of the use of such delinquent payment. 
Any such amount shall be secured by the Security Instrument and the
other Loan Documents to the extent permitted by applicable law.

2.3.5       Method
and Place of Payment.  Except as otherwise specifically provided
herein, all payments and prepayments under this Agreement and the Note shall be
made to Lender not later than 11:00 A.M., New York City time, on the date when
due and shall be made in lawful money of the United States of America in
immediately available funds at Lender’s office or as otherwise directed by
Lender, and any funds received by Lender after such time shall, for all
purposes hereof, be deemed to have been paid on the next succeeding Business
Day.

Section
2.4            Prepayments.

2.4.1       Voluntary
Prepayments. 
Except as otherwise provided in Section 2.4.2,
Borrower shall not have the right to prepay the Loan in whole or in part

 25
 

 

prior to the Maturity Date; provided that on the Payment Date
three (3) months prior to the Maturity Date, or on any Payment Date
thereafter (or on any date thereafter provided that interest is paid through
the next Payment Date), Borrower may, at its option and upon thirty (30)
days prior written notice to Lender prepay the Debt in whole only without
payment of the Yield Maintenance Premium. 
If for any reason Borrower prepays the Loan on a date other than a
Payment Date, Borrower shall pay Lender, in addition to the Debt, all interest
which would have accrued on the amount of the Loan through and including the
Payment Date next occurring following the date of such prepayment.

2.4.2       Mandatory
Prepayments. 
On the next occurring Payment Date following the date on which Lender
actually receives any Net Proceeds, if Lender is not obligated or does not
elect to make such Net Proceeds available to Borrower for the Restoration of the
Property or otherwise remit such Net Proceeds to Borrower pursuant to Section
6.4 hereof, Borrower shall prepay or authorize Lender to apply such Net
Proceeds as a prepayment of all or a portion of the outstanding principal
balance of the Loan together with accrued interest and any other sums due
hereunder in an amount equal to one hundred percent (100%) of such Net
Proceeds; provided, however, if an Event of
Default has occurred and is continuing, Lender may apply such Net Proceeds to
the Debt (until paid in full) in any order or priority in its sole
discretion.  Other than during the
continuance of an Event of Default, no Yield Maintenance Premium shall be due
in connection with any prepayment made pursuant to this Section 2.4.2.

2.4.3       Prepayments
After Default. 
If during the continuance of an Event of Default, payment of all or any
part of the Debt is tendered by Borrower or otherwise recovered by Lender, such
tender or recovery shall be (a) made on the next occurring Payment Date
together with the Monthly Debt Service Payment and (b) deemed a voluntary
prepayment by Borrower in violation of the prohibition against prepayment set
forth in Section 2.4.1 hereof
and Borrower shall pay, in addition to the Debt, an amount equal to the Yield
Maintenance Premium.

Section
2.5            Defeasance.

2.5.1       Voluntary
Defeasance. 
(a)  Provided no Event of Default
shall then exist, Borrower shall have the right at any time after the earlier
to occur of the Defeasance Expiration Date and the Permitted Release Date and
prior to the date voluntarily prepayments are permitted under Section 2.4.1 hereof to voluntarily
defease the Loan in full by and upon satisfaction of the following conditions
(such event being a “Defeasance Event”):

(i)    Borrower
shall provide not less than thirty (30) days prior written notice to
Lender specifying the Payment Date (the “Defeasance Date”) on which the
Defeasance Event is to occur;

(ii)   [Intentionally
Omitted];

(iii)  Borrower
shall pay to Lender all other sums (not including scheduled interest or principal
payments, provided that the Monthly Debt Service

 26
 

 

Payment Amount due on the Payment Date which is the Defeasance Date has
been paid) then due under the Note, this Agreement, the Security Instrument and
the other Loan Documents;

(iv)  Borrower
shall pay to Lender the required Defeasance Deposit for the Defeasance Event;

(v)   [Intentionally
Omitted];

(vi)  Borrower
shall execute and deliver a pledge and security agreement, in form and
substance that would be reasonably satisfactory to a prudent lender creating a
first priority lien on the Defeasance Deposit and the U.S. Obligations
purchased with the Defeasance Deposit in accordance with the provisions of this
Section 2.5 (the “Security Agreement”);

(vii) Borrower
shall deliver an opinion of counsel for Borrower that is standard in commercial
lending transactions and subject only to customary qualifications, assumptions
and exceptions opining, among other things, that Borrower has legally and
validly transferred and assigned the U.S. Obligations and all obligations,
rights and duties under and to the Note to the Successor Borrower, that Lender
has a perfected first priority security interest in the Defeasance Deposit and
the U.S. Obligations delivered by Borrower and that any REMIC Trust formed
pursuant to a Securitization will not fail to maintain its status as a “real
estate mortgage investment conduit” within the meaning of Section 860D of
the Code as a result of such Defeasance Event;

(viii)  If
required pursuant to the applicable pooling and servicing agreement or by the
Rating Agencies, Borrower shall deliver confirmation in writing from each of
the applicable Rating Agencies to the effect that such release will not result
in a downgrade, withdrawal or qualification of the respective ratings in effect
immediately prior to such Defeasance Event for the Securities issued in
connection with the Securitization which are then outstanding.  If required by the applicable Rating
Agencies, Borrower shall also deliver or cause to be delivered an Additional
Insolvency Opinion with respect to the Successor Borrower in form and substance
satisfactory to Lender and the applicable Rating Agencies;

(ix)   Borrower
shall deliver an Officer’s Certificate certifying that the requirements set
forth in this Section 2.5.1(a)
have been satisfied;

(x)    Borrower
shall deliver a certificate of Borrower’s independent certified public
accountant certifying that the U.S. Obligations purchased with the Defeasance
Deposit generate monthly amounts equal to or greater than the Scheduled Defeasance
Payments;

(xi)   Borrower
shall deliver such other certificates, opinions, documents or instruments as
Lender may reasonably request; and

 27
 

 

(xii)  Borrower
shall pay all costs and expenses of Lender incurred in connection with the
Defeasance Event, including (A) any costs and expenses associated with a
release of the Lien of the Security Instrument as provided in Section 2.6 hereof,
(B) reasonable attorneys’ fees and expenses incurred in connection with
the Defeasance Event, (C) the costs and expenses of the Rating Agencies,
(D) any revenue, documentary stamp or intangible taxes or any other tax or
charge due in connection with the transfer of the Note, or otherwise required
to accomplish the defeasance and (E) the costs and expenses of Servicer
and any trustee, including reasonable attorneys’ fees.

(b)           In connection with the Defeasance Event, Borrower shall
use the Defeasance Deposit to purchase U.S. Obligations which provide payments
on or prior to, but as close as possible to, all successive scheduled Payment
Dates after the Defeasance Date upon which interest and principal payments are
required under this Agreement and the Note, and in amounts equal to the
scheduled payments due on such Payment Dates under this Agreement and the Note
(including, without limitation, scheduled payments of principal, interest,
servicing fees (if any), and any other amounts due under the Loan Documents on
such dates) and assuming the Note is paid in full on the Maturity Date (the “Scheduled Defeasance
Payments”).  Any portion of
the Defeasance Deposit in excess of the amount necessary to purchase the U.S.
Obligations required by this Section 2.5
and satisfy Borrower’s other obligations under this Section 2.5 and Section 2.6 shall be remitted to
Borrower.

2.5.2       Collateral.  Each of the U.S. Obligations that are part of
the defeasance collateral shall be duly endorsed by the holder thereof as
directed by Lender or accompanied by a written instrument of transfer in form
and substance that would be satisfactory to a prudent lender (including,
without limitation, such instruments as may be required by the depository
institution holding such securities or by the issuer thereof, as the case may
be, to effectuate book-entry transfers and pledges through the book-entry
facilities of such institution) in order to perfect upon the delivery of the
defeasance collateral a first priority security interest therein in favor of
Lender in conformity with all applicable state and federal laws governing the
granting of such security interests.

2.5.3       Successor
Borrower.  In connection with any Defeasance
Event, Borrower may at its option, or if so required by the applicable Rating
Agencies shall, establish or designate a successor entity (the “Successor Borrower”)
acceptable to Lender, which shall be a Special Purpose Entity, and Borrower
shall transfer and assign all obligations, rights and duties under and to the
Note together with the pledged U.S. Obligations to such Successor
Borrower.  Such Successor Borrower shall
assume the obligations under the Note and the Security Agreement and Borrower
shall be relieved of its obligations under such documents.  Borrower shall pay One Thousand and 00/100
Dollars ($1,000) to any such Successor Borrower as consideration for assuming
the obligations under the Note and the Security Agreement.  Notwithstanding anything in this Agreement to
the contrary, no other assumption fee shall be payable upon a transfer of the
Note in accordance with this Section 2.5.3,
but Borrower shall pay all costs and expenses incurred by Lender, including
Lender’s attorneys’ fees and expenses and any fees and expenses of any Rating
Agencies, incurred in connection therewith.

 28
 

 

Section
2.6            Release of Property.  Except
as set forth in this Section 2.6 or a prepayment of the entire Loan pursuant
to Section 2.4.2, no repayment, prepayment or defeasance of all or any portion
of the Loan shall cause, give rise to a right to require, or otherwise result
in, the release of the Lien of the Security Instrument on the Property.  If the entire Loan has been prepaid pursuant
to Section 2.4.2, or after the requirements of Section 2.6.1 have been
satisfied, the Property shall be released from the lien of the Security
Instrument.

2.6.1       Release
of Property.

(a)           If Borrower has elected to defease the entire Loan and the
requirements of Section 2.5 and
this Section 2.6 have been
satisfied, the Property shall be released from the Lien of the Security
Instrument.

(b)           In connection with the release of the Security Instrument,
Borrower shall submit to Lender, not less than thirty (30) days prior to
the Defeasance Date, a release of Lien (and related Loan Documents) for the
Property for execution by Lender.  Such
release shall be in a form appropriate in the jurisdiction in which the
Property is located and that would be satisfactory to a prudent lender and
contains standard provisions, if any, protecting the rights of the releasing
lender.  In addition, Borrower shall
provide all other documentation Lender reasonably requires to be delivered by
Borrower in connection with such release, together with an Officer’s
Certificate certifying that such documentation (i) is in compliance with
all Legal Requirements, and (ii) will effect such releases in accordance
with the terms of this Agreement.

2.6.2       Release
on Payment in Full.  Lender shall, upon payment in full of all
principal and interest due on the Loan and all other amounts due and payable
under the Loan Documents in accordance with the terms and provisions of the
Note and this Agreement, release the Lien of the Security Instrument on the
Property.  Borrower shall pay to Lender
all reasonable administrative and legal costs incurred in connection with such
release.

Section 2.7         Clearing Account/Cash Management.

2.7.1       Clearing
Account.

(a)           During the term of the Loan, Borrower shall establish and
maintain an account (the “Clearing Account”)
with Clearing Bank in trust for the benefit of Lender, which Clearing Account
shall be under the sole dominion and control of Lender.  The Clearing Account shall be entitled “Behringer
Harvard 945 East Paces Ferry Road, LLC, as Borrower, and JPMorgan Chase Bank,
N.A., as Lender, pursuant to Loan Agreement dated as of November 30, 2006 —
Clearing Account”.  Borrower hereby
grants to Lender a first-priority security interest in the Clearing Account and
all deposits at any time contained therein and the proceeds thereof and will
take all actions necessary to maintain in favor of Lender a perfected first
priority security interest in the Clearing Account, including, without
limitation, executing and filing UCC-1 Financing Statements and continuations
thereof.  Lender and Servicer shall have
the sole right to make withdrawals from the Clearing Account and all costs and
expenses for establishing and maintaining the Clearing Account shall be paid by
Borrower.  All monies now or hereafter
deposited into the Clearing Account shall be deemed additional security for the
Debt.

 29

 

(b)           Borrower
shall, or shall cause Property Manager to, deliver irrevocable written
instructions to all tenants under Leases to deliver all Rents payable
thereunder directly to the Clearing Account. 
Borrower shall, and shall cause Property Manager to, deposit all amounts
received by Borrower or Property Manager constituting Rents into the Clearing
Account within one (1) Business Day after receipt thereof.

(c)           Borrower
shall obtain from Clearing Bank its agreement to transfer to the Deposit
Account in immediately available funds by federal wire transfer all amounts on
deposit in the Clearing Account once every Business Day during the continuance
of a Cash Sweep Period.

(d)           Upon
the occurrence of an Event of Default, Lender may, in addition to any and all
other rights and remedies available to Lender, apply any sums then present in
the Clearing Account to the payment of the Debt in any order in its sole
discretion.

(e)           The
Clearing Account shall be an Eligible Account and shall not be commingled with
other monies held by Borrower or Clearing Bank.

(f)            Borrower
shall not further pledge, assign or grant any security interest in the Clearing
Account or the monies deposited therein or permit any lien or encumbrance to
attach thereto, or any levy to be made thereon, or any UCC-1 Financing
Statements, except those naming Lender as the secured party, to be filed with
respect thereto, and except for the rights of the Clearing Bank under the
Clearing Account Agreement.

(g)           Borrower
shall indemnify Lender and hold Lender harmless from and against any and all
actions, suits, claims, demands, liabilities, losses, damages, obligations and
costs and expenses (including litigation costs and reasonable attorneys fees
and expenses) arising from or in any way connected with the Clearing Account
and/or the Clearing Account Agreement (unless arising from the gross negligence
or willful misconduct of Lender) or the performance of the obligations for
which the Clearing Account was established.

2.7.2       Deposit Account.

(a)           Pursuant
to the Cash Management Agreement, Lender has established an account (the “Deposit Account”) with a financial
institution chosen by Lender in its discretion, which Deposit Account shall be
under the sole dominion and control of Lender. 
Borrower hereby grants to Lender a first priority security interest in
the Deposit Account and all deposits at any time contained therein and the
proceeds thereof and will take all actions necessary to maintain in favor of
Lender a perfected first priority security interest in the Deposit Account,
including, without limitation, executing and filing UCC-1 Financing Statements
and continuations thereof.  Lender and
Servicer shall have the sole right to make withdrawals from the Deposit Account
and all costs and expenses for establishing and maintaining the Deposit Account
shall be paid by Borrower.

(b)           The
insufficiency of funds on deposit in the Deposit Account shall not relieve
Borrower from the obligation to make any payments, as and when due pursuant to
this Agreement and the other Loan Documents, and such obligations shall be
separate and independent, and not conditioned on any event or circumstance
whatsoever.

 30
 

 

(c)           All
funds on deposit in the Deposit Account following the occurrence of an Event of
Default may be applied by Lender in such order and priority as Lender shall
determine.

(d)           Borrower
hereby agrees that Lender may modify the Cash Management Agreement for the
purpose of establishing additional sub-accounts in connection with any payments
otherwise required under this Agreement and the other Loan Documents and Lender
shall provide notice thereof to Borrower.

2.7.3       Payments Received Under the Cash Management Agreement.  Notwithstanding anything to the contrary
contained in this Agreement or the other Loan Documents, and provided no Event
of Default has occurred and is continuing, Borrower’s obligations with respect
to the payment of the Monthly Debt Service Payment Amount and amounts required
to be deposited into the Reserve Funds, if any, shall be deemed satisfied to
the extent sufficient amounts are deposited in the Deposit Account to satisfy
such obligations pursuant to the Cash Management Agreement on the dates each
such payment is required, regardless of whether any of such amounts are so
applied by Lender.

III.                                 CONDITIONS
PRECEDENT

Section 3.1            Conditions
Precedent to Closing.

 The obligation of Lender to make the Loan
hereunder is subject to the fulfillment by Borrower or waiver by Lender of the
following conditions precedent no later than the Closing Date:

3.1.1       Representations
and Warranties; Compliance with Conditions. The
representations and warranties of Borrower contained in this Agreement and the
other Loan Documents shall be true and correct in all material respects on and
as of the Closing Date with the same effect as if made on and as of such date,
and no Default or an Event of Default shall have occurred and be continuing;
and Borrower shall be in compliance in all material respects with all terms and
conditions set forth in this Agreement and in each other Loan Document on its
part to be observed or performed.

3.1.2       Loan
Agreement and Note.  Lender shall have received a copy of this
Agreement and the Note, in each case, duly executed and delivered on behalf of
Borrower.

3.1.3       Delivery
of Loan Documents; Title Insurance; Reports; Leases, Etc.

(a)           Security
Instrument, Assignment of Leases. Lender shall have received from Borrower
fully executed and acknowledged counterparts of the Security Instrument and the
Assignment of Leases and evidence that counterparts of the Security Instrument
and Assignment of Leases have been delivered to the title company for
recording, in the reasonable judgment of Lender, so as to effectively create
upon such recording valid and enforceable first priority Liens upon the
Property, in favor of Lender (or such other trustee as may be required under
local law), subject only to the Permitted Encumbrances and such other Liens as
are permitted pursuant to

 31
 

 

the Loan Documents.  Lender shall
have also received from Borrower fully executed counterparts of the other Loan
Documents.

(b)           Title
Insurance. Lender shall have received a binding commitment to issue the
Title Insurance Policy issued by a title company acceptable to Lender and dated
as of the Closing Date. To the extent permitted by applicable Legal
Requirements, such Title Insurance Policy shall (i) provide coverage an
amount equal to the principal amount of the Loan together with, if applicable,
a “tie-in” or similar endorsement, (ii) insure Lender that the Security
Instrument creates a valid first priority lien on the Property encumbered
thereby, free and clear of all exceptions from coverage other than Permitted
Encumbrances and standard exceptions and exclusions from coverage (as modified
by the terms of any endorsements), (iii) contain such endorsements and
affirmative coverages as Lender may reasonably request, and (iv) name
Lender or Lender’s nominee, its successors and assigns, as the insured.  Lender also shall have received evidence that
all premiums in respect of such Title Insurance Policy have been paid.

(c)           Survey.
Lender shall have received a current title survey for the Property, certified
to the title company and Lender and their successors and assigns, in form and
content satisfactory to Lender and prepared by a professional and properly
licensed land surveyor satisfactory to Lender in accordance with the most
recent Minimum Standard Detail Requirements for ALTA/ACSM Land Title
Surveys.  The following additional items
from the list of “Optional Survey Responsibilities and Specifications” (Table
A) should be added to the survey: 2, 3, 4, 6, 8, 9, 10, 11 and 13.  The survey shall reflect the same legal
description contained in the Title Insurance Policy relating to the Property
referred to in clause (b) above and shall include, among other things, a
legal description of the real property comprising part of the Property
reasonably satisfactory to Lender.  The
surveyor’s seal shall be affixed to the survey and the surveyor shall provide a
certification for the survey in form and substance acceptable to Lender.

(d)           Insurance.
Lender shall have received valid certificates of insurance for the policies of
insurance required hereunder, satisfactory to Lender in its sole discretion,
and evidence of the payment of all premiums payable for the existing policy
period.

(e)           Environmental
Reports. Lender shall have received a Phase I environmental report (and, if
recommended by the Phase I environmental report, a Phase II environmental
report) in respect of the Property, in each case satisfactory in form and
substance reasonably satisfactory to Lender.

(f)            Zoning.
With respect to the Property, Lender shall have received, at Lender’s option,
(i) letters or other evidence with respect to the Property from the
appropriate municipal authorities (or other Persons) concerning applicable
zoning and building laws, and (ii) either (A) an ALTA 3.1 zoning
endorsement for the applicable Title Insurance Policy or (B) other
evidence of zoning compliance, in each case in substance reasonably satisfactory
to Lender.

(g)           Encumbrances.  Borrower shall have taken or caused to be
taken such actions in such a manner so that Lender has a valid and perfected
first Lien as of the Closing Date with respect to the Security Instrument on
the Property, subject only to applicable Permitted

 32
 

 

Encumbrances and such other Liens as are permitted pursuant to the Loan
Documents, and Lender shall have received satisfactory evidence thereof.

3.1.4       Related
Documents. 
Each additional document not specifically referenced herein, but relating
to the transactions contemplated herein, shall have been duly authorized,
executed and delivered by all parties thereto and Lender shall have received
and approved certified copies thereof.

3.1.5       Delivery
of Organizational Documents.  On or before the Closing Date, Borrower shall
deliver or cause to be delivered to Lender copies certified by Borrower of all
organizational documentation related to Borrower and/or the formation,
structure, existence, good standing and/or qualification to do business, as Lender
may request in its sole discretion, including, without limitation, good
standing certificates, qualifications to do business in the State, resolutions
authorizing the entering into of the Loan and incumbency certificates as may be
requested by Lender.

3.1.6       Opinions
of Borrower’s Counsel.  Lender shall have received opinions from
Borrower’s counsel with respect to due execution, authority, enforceability of
the Loan Documents and such other matters as Lender may reasonably require, all
such opinions in form, scope and substance reasonably satisfactory to Lender
and Lender’s counsel in their reasonable discretion.

3.1.7       Budgets.  Borrower shall have delivered the Annual
Budget for the current Fiscal Year.

3.1.8       Basic
Carrying Costs. 
Borrower shall have paid or reserved for all Basic Carrying Costs
relating to the Property which are in arrears, including without limitation,
(a) accrued but unpaid Insurance Premiums due pursuant to the Policies,
(b) currently due and payable Taxes (including any in arrears) relating to
the Property, and (c) currently due Other Charges relating to the
Property, which amounts shall be funded with proceeds of the Loan.

3.1.9       Completion
of Proceedings. 
All organizational proceedings taken or to be taken in connection with
the transactions contemplated by this Agreement and other Loan Documents and
all documents incidental thereto shall be reasonably satisfactory in form and
substance to Lender, and Lender shall have received all such counterpart
originals or certified copies of such documents as Lender may reasonably
request.

3.1.10     Payments.  All payments, deposits or escrows required to
be made or established by Borrower under this Agreement, the Note and the other
Loan Documents on or before the Closing Date shall have been paid.

3.1.11     Tenant
Estoppels. 
Lender shall have received an executed tenant estoppel letter, which
shall be in form and substance satisfactory to Lender, from a majority of the
tenants at the Property.

 33
 

 

3.1.12     Transaction
Costs. 
Borrower shall have paid or reimbursed Lender for all title insurance
premiums, recording and filing fees or taxes, costs of environmental reports,
Physical Conditions Reports, appraisals and other reports, the fees and costs
of Lender’s counsel and all other third party out-of-pocket expenses incurred
in connection with the origination of the Loan.

3.1.13     Material
Adverse Change. 
There shall have been no material adverse change in the financial
condition or business condition of Borrower, Principal, Guarantor or the
Property since the date of the most recent financial statements delivered to
Lender.  The income and expenses of the
Property, the occupancy thereof, and all other features of the transaction
shall be as represented to Lender without material adverse change.  Neither Borrower, Principal, Guarantor nor
any of their respective constituent Persons shall be the subject of any
bankruptcy, reorganization, or insolvency proceeding.

3.1.14     Leases
and Rent Roll. 
Lender shall have received copies of all tenant leases, certified copies
of any tenant leases as requested by Lender and certified copies of all ground
leases affecting the Property, if any. 
Lender shall have received a current certified rent roll of the
Property, reasonably satisfactory in form and substance to Lender.

3.1.15     Subordination
and Attornment. 
Lender shall have received appropriate instruments acceptable to Lender
in its commercially reasonable discretion subordinating any Leases of record
prior to the Security Instrument and including an agreement by such Tenants to
attorn to Lender in the event of a foreclosure or delivery of a deed in lieu
thereof.

3.1.16     Tax
Lot.  Lender
shall have received evidence that the Property constitutes one (1) or more
separate tax lots, which evidence shall be reasonably satisfactory in form and
substance to Lender.

3.1.17     Physical
Conditions Report. 
Lender shall have received a Physical Conditions Report with respect to
the Property, which report shall be reasonably satisfactory in form and
substance to Lender.

3.1.18     Property
Management Agreement.  Lender shall have received a certified copy
of the Property Management Agreement with respect to the Property which shall
be satisfactory in form and substance to Lender.

3.1.19     Appraisal.  Lender shall have received an appraisal of
the Property which shall be satisfactory in form and substance to Lender.

3.1.20     Financial
Statements. 
Lender shall have received (a) a balance sheet with respect to the
Property for the two (2) most recent Fiscal Years and statements of income and
statements of cash flows with respect to the Property for the three (3)
most recent Fiscal Years, each in form and substance reasonably satisfactory to
Lender or (b) such other financial statements relating to the operation of the
Property, in form and substance reasonably satisfactory to Lender.

 34
 

 

3.1.21     Further
Documents. 
Lender or its counsel shall have received such other documents and
further approvals, opinions, documents and information as Lender or its counsel
may have reasonably requested including the Loan Documents in form and
substance reasonably satisfactory to Lender and its counsel.

IV.                                REPRESENTATIONS
AND WARRANTIES

Section 4.1            Borrower
Representations.   Borrower represents
and warrants as of the date hereof and as of the Closing Date that, except as
set forth on Schedule V:

4.1.1       Organization.    Borrower has been duly organized and is
validly existing and in good standing with requisite power and authority to own
the Property and to transact the businesses in which it is now engaged.  Borrower is duly qualified to do business and
is in good standing in each jurisdiction where it is required to be so
qualified in connection with the Property, businesses and operations.  Borrower possesses all rights, licenses,
permits and authorizations, governmental or otherwise, necessary to entitle it
to own the Property and to transact the businesses in which it is now engaged,
and the sole business of Borrower is the ownership, management, operation and
sale of the Property.

4.1.2       Proceedings.  Borrower has taken all necessary action to
authorize the execution, delivery and performance of this Agreement and the
other Loan Documents.  This Agreement and
such other Loan Documents have been duly executed and delivered by or on behalf
of Borrower and constitute legal, valid and binding obligations of Borrower
enforceable against Borrower in accordance with their respective terms, subject
only to applicable bankruptcy, insolvency and similar laws affecting rights of
creditors generally, and subject, as to enforceability, to general principles
of equity (regardless of whether enforcement is sought in a proceeding in
equity or at law).

4.1.3       No
Conflicts. 
The execution, delivery and performance of this Agreement and the other
Loan Documents by Borrower will not conflict with or result in a breach of any
of the terms or provisions of, or constitute a default under, or result in the
creation or imposition of any lien, charge or encumbrance (other than pursuant
to the Loan Documents) upon any of the property or assets of Borrower pursuant
to the terms of any indenture, mortgage, deed of trust, loan agreement,
partnership agreement, or other agreement or instrument to which Borrower is a
party or by which any of Borrower’s property or assets is subject, nor to
Borrower’s Knowledge will such action result in any violation of the provisions
of any statute or any order, rule or regulation of any Governmental Authority
having jurisdiction over Borrower or any of Borrower’s properties or assets,
and any consent, approval, authorization, order, registration or qualification
of or with any court or any such Governmental Authority required for the
execution, delivery and performance by Borrower of this Agreement or any other
Loan Documents has been obtained and is in full force and effect.

4.1.4       Litigation.  To Borrower’s Knowledge, there are no
actions, suits or proceedings at law or in equity by or before any Governmental
Authority or other agency now pending or threatened against or affecting
Borrower, Guarantor, Principal or the

 35
 

 

Property,
which actions, suits or proceedings, if determined against Borrower, Guarantor,
Principal or the Property, might materially adversely affect the condition
(financial or otherwise) or business of Borrower, Guarantor, Principal or the
condition or ownership of the Property.

4.1.5       Agreements.  Except such instruments and agreements set
forth as Permitted Encumbrances in the Title Insurance Policy, Borrower is not
a party to any agreement or instrument or subject to any restriction which
might materially and adversely affect Borrower or the Property, or Borrower’s
business, properties or assets, operations or condition, financial or
otherwise.  To Borrower’s knowledge,
Borrower is not in default in any material respect in the performance,
observance or fulfillment of any of the obligations, covenants or conditions
contained in any agreement or instrument to which it is a party or by which
Borrower or the Property is bound. 
Borrower has no material financial obligation under any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to
which Borrower is a party or by which Borrower or the Property is otherwise
bound, other than (a) obligations incurred in the ordinary course of the
operation of the Property as permitted pursuant to clause (xxiii) of the
definition of “Special Purpose Entity” set forth in Section 1.1 hereof and
(b) obligations under the Loan Documents.

4.1.6       Title.  Borrower has good and indefeasible fee and
leasehold title to the real
property comprising part of the Property and good title to the balance of the
Property, free and clear of all Liens whatsoever except the Permitted
Encumbrances, such other Liens as are permitted pursuant to the Loan Documents
and the Liens created by the Loan Documents. 
The Permitted Encumbrances in the aggregate do not materially and
adversely affect the value, operation or use of the Property (as currently
used) or Borrower’s ability to repay the Loan. 
To Borrower’s Knowledge, there are no claims for payment for work, labor
or materials affecting the Property which are due and unpaid under the
contracts pursuant to which work or labor was performed or materials provided
which are or may become a Lien prior to, or of equal priority with, the Liens
created by the Loan Documents.

4.1.7       Solvency;
No Bankruptcy Filing.  Borrower (a) has not entered into the
transaction or executed the Note, this Agreement or any other Loan Documents
with the actual intent to hinder, delay or defraud any creditor and
(b) received reasonably equivalent value in exchange for its obligations
under such Loan Documents.  Giving effect
to the Loan, the fair saleable value of Borrower’s assets exceeds and will,
immediately following the making of the Loan, exceed Borrower’s total
liabilities, including, without limitation, subordinated, unliquidated,
disputed and contingent liabilities.  The
fair saleable value of Borrower’s assets is and will, immediately following the
making of the Loan, be greater than Borrower’s probable liabilities, including
the maximum amount of its contingent liabilities on its debts as such debts
become absolute and matured.  Borrower’s
assets do not and, immediately following the making of the Loan will not,
constitute unreasonably small capital to carry out its business as conducted or
as proposed to be conducted.  Borrower
does not intend to, and does not believe that it will, incur debt and
liabilities (including contingent liabilities and other commitments) beyond its
ability to pay such debt and liabilities as they mature (taking into account
the

 36
 

 

timing and
amounts of cash to be received by Borrower and the amounts to be payable on or
in respect of obligations of Borrower). 
Except as expressly disclosed to Lender in writing, no petition in
bankruptcy has been filed against Borrower, or to Borrower’s Knowledge, or any
constituent Person in the last seven (7) years, and neither Borrower nor,
to Borrower’s Knowledge, any constituent Person in the last seven (7)
years has ever made an assignment for the benefit of creditors or taken advantage
of any insolvency act for the benefit of debtors.  Neither Borrower nor any of its constituent
Persons are contemplating either the filing of a petition by it under any state
or federal bankruptcy or insolvency laws or the liquidation of all or a major
portion of Borrower’s assets or property, and Borrower has no knowledge of any
Person contemplating the filing of any such petition against it or such
constituent Persons.

4.1.8       Full
and Accurate Disclosure.  To Borrower’s Knowledge, no statement of fact
made by Borrower in this Agreement or in any of the other Loan Documents
contains any untrue statement of a material fact or omits to state any material
fact necessary to make statements contained herein or therein not misleading.  There is no material fact presently known to
Borrower which has not been disclosed to Lender which adversely affects the
Property or the business, operations or condition (financial or otherwise) of
Borrower.

4.1.9       No
Plan Assets. 
Borrower does not sponsor, is not obligated to contribute to, and is not
itself an “employee benefit plan,” as defined in Section 3(3) of ERISA,
subject to Title I of ERISA or Section 4975 of the Code, and none of the
assets of Borrower constitutes or will constitute “plan assets” of one or more
such plans within the meaning of 29 C.F.R. Section 2510.3-101.  In addition, (a) Borrower is not a “governmental
plan” within the meaning of Section 3(32) of ERISA and
(b) transactions by or with Borrower are not subject to any state or other
statute, regulation or other restriction regulating investments of, or
fiduciary obligations with respect to, governmental plans within the meaning of
Section 3(32) of ERISA which is similar to the provisions of Section 406
of ERISA or Section 4975 of the Code and which prohibit or otherwise
restrict the transactions contemplated by this Agreement, including, but not
limited to the exercise by Lender of any of its rights under the Loan
Documents.

4.1.10     Compliance.  To Borrower’s Knowledge, Borrower and the
Property and the use thereof comply in all material respects with all
applicable Legal Requirements, including, without limitation, building and
zoning ordinances and codes.  To Borrower’s
Knowledge, Borrower is not in default or violation of any order, writ,
injunction, decree or demand of any Governmental Authority.  There has not been committed by Borrower or,
to Borrower’s Knowledge, any other Person in occupancy of or involved with the
operation or use of the Property any act or omission affording the federal
government or any other Governmental Authority the right of forfeiture as
against the Property or any part thereof or any monies paid in performance of
Borrower’s obligations under any of the Loan Documents.

4.1.11     Financial
Information. 
All financial data, including, without limitation, the statements of
cash flow and income and operating expense, that have been delivered to Lender
in respect of the Property (i) to Borrower’s Knowledge, are true,

 37
 

 

complete and
correct in all material respects, (ii) accurately represent the financial
condition of Borrower and to Borrower’s Knowledge, the Property, as applicable,
as of the date of such reports, and (iii) to Borrower’s Knowledge, to the
extent prepared or audited by an independent certified public accounting firm,
have been prepared in accordance with accounting principles reasonably
acceptable to Lender, consistently applied throughout the periods covered,
except as disclosed therein.  Borrower
does not have any contingent liabilities, liabilities for taxes, unusual
forward or long-term commitments or unrealized or anticipated losses from any
unfavorable commitments that are known to Borrower and reasonably likely to
have a materially adverse effect on the Property or the operation thereof for
the Permitted Use, except as referred to or reflected in said financial
statements.  Since the date of such
financial statements, there has been no materially adverse change in the
financial condition, operations or business of Borrower from that set forth in
said financial statements.

4.1.12     Condemnation.  No Condemnation or other proceeding has been
commenced or, to Borrower’s Knowledge, is contemplated with respect to all or
any portion of the Property or for the relocation of roadways providing access
to the Property.

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

4.1.14     Utilities
and Public Access. 
The Property has rights of access to public ways and is served by water,
sewer, sanitary sewer and storm drain facilities adequate to service the
Property for its intended uses.  To
Borrower’s Knowledge, all public utilities necessary or convenient to the full
use and enjoyment of the Property are located either in the public right-of-way
abutting the Property (which are connected so as to serve the Property without
passing over other property) or in recorded easements serving the Property and
such easements are set forth in and insured by the Title Insurance Policy.  All roads necessary for the use of the
Property for its current purposes have been completed and dedicated to public
use and accepted by all Governmental Authorities.

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

4.1.16     Separate
Lots.  The
Property is comprised of one (1) or more parcels which constitute a
separate tax lot or lots and does not constitute a portion of any other tax lot
not a part of the Property.

4.1.17     Assessments.  There are no pending, or to Borrower’s
Knowledge, proposed special or other assessments for public improvements or
otherwise affecting the Property, nor are there any contemplated improvements
to the Property that may result in such special or other assessments.

 38
 

 

4.1.18     Enforceability.  The Loan Documents are not subject to any
right of rescission, set-off, counterclaim or defense by Borrower or
Guarantor, including the defense of usury, nor would the operation of any of
the terms of the Loan Documents, or the exercise of any right thereunder
exercised by Lender in accordance with applicable law, render the Loan
Documents unenforceable, and neither Borrower nor Guarantor has asserted any right
of rescission, set-off, counterclaim or defense with respect thereto.

4.1.19     No
Prior Assignment. 
There is no prior assignment of the Leases or any portion of the Rents
by Borrower or any of its predecessors in interest, given as collateral
security which will be outstanding upon application of the proceeds of the
Loan.

4.1.20     Insurance.  Borrower has obtained and has delivered to
Lender (a) certified copies of the Policies reflecting the insurance coverages,
amounts and other requirements set forth in this Agreement or (b) other
evidence of such matters acceptable to Lender. 
No claims have been made or are currently pending, outstanding or
otherwise remain unsatisfied under any such Policy, and neither Borrower nor to
Borrower’s Knowledge any other Person, has done, by act or omission, anything
which would impair the coverage of any such Policy.

4.1.21     Use
of Property. 
The Property is used exclusively for the Permitted Use.

4.1.22     Certificate
of Occupancy; Licenses.  To Borrower’s Knowledge, all certifications,
permits, licenses and approvals, including without limitation, certificates of
completion and occupancy permits required to be obtained by Borrower for the
legal use, occupancy and operation of the Property for the Permitted Use have
been obtained and are in full force and effect, and to Borrower’s Knowledge,
all certifications, permits, licenses and approvals, including without
limitation, certificates of completion and occupancy permits required to be
obtained by any Person other than Borrower for the legal use, occupancy and
operation of the Property the Permitted Use, have been obtained and are in full
force and effect (all of the foregoing certifications, permits, licenses and
approvals are collectively referred to as the “Licenses”).  Borrower
shall and shall cause all other Persons to, keep and maintain all licenses
necessary for the operation of the Property for the Permitted Use.  The use being made of the Property is in
conformity with all certificates of occupancy issued for the Property.

4.1.23     Flood
Zone.  To
Borrower’s Knowledge, no Improvements on the Property are located in an area
identified by the Federal Emergency Management Agency as an area having special
flood hazards or, if so located, the flood insurance required pursuant to Section 6.1(a)(i) is in full force and
effect with respect to the Property.

4.1.24     Physical
Condition. 
Except as disclosed in the Physical Conditions Report delivered to
Lender in connection with this Loan, to Borrower’s Knowledge, the Property,
including, without limitation, all buildings, improvements, parking facilities,
sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire
protection systems, electrical systems, equipment, elevators, exterior sidings
and doors, landscaping, irrigation systems and all structural components, are
in good condition, order

 39
 

 

and repair in
all material respects; there exists no structural or other material defects or
damages in the Property and Borrower has not received notice from any insurance
company or bonding company of any defects or inadequacies in the Property, or
any part thereof, which would adversely affect the insurability of the same or
cause the imposition of extraordinary premiums or charges thereon or of any
termination or threatened termination of any policy of insurance or bond.

4.1.25     Boundaries.  To Borrower’s Knowledge, all of the
improvements which were included in determining the appraised value of the
Property lie wholly within the boundaries and building restriction lines of the
Property, and no improvements on adjoining properties encroach upon the
Property, and no easements or other encumbrances upon the Property encroach
upon any of the Improvements, so as to affect the value or marketability of the
Property except those which are insured against by the Title Insurance Policy.

4.1.26     Leases.  The Property is not subject to any leases
other than the Leases described in the Rent Roll attached as Schedule II
hereto and made a part hereof.  Borrower
is the owner and lessor of landlord’s interest in the Leases.  No Person has any possessory interest in the
Property or right to occupy the same except under and pursuant to the
provisions of the Leases.  The current
Leases are in full force and effect and, to Borrower’s Knowledge, there are no
defaults thereunder by either party and there are no conditions that, with the
passage of time or the giving of notice, or both, would constitute defaults
thereunder.  No Rent (including security
deposits) has been paid more than one (1) month in advance of its due
date.  All work to be performed by
Borrower under each Lease has been performed as required and has been accepted
by the applicable tenant, and any payments, free rent, partial rent, rebate of
rent or other payments, credits, allowances or abatements required to be given
by Borrower to any tenant has already been received by such tenant.  There has been no prior sale, transfer or
assignment, hypothecation or pledge of any Lease or of the Rents received
therein which is outstanding.  To Borrower’s
Knowledge, except as set forth on Schedule II, no tenant listed on Schedule II has assigned its Lease or
sublet all or any portion of the premises demised thereby, no such tenant holds
its leased premises under assignment or sublease, nor does anyone except such
tenant and its employees occupy such leased premises.  No tenant under any Lease has a right or
option pursuant to such Lease or otherwise to purchase all or any part of the
leased premises or the building of which the leased premises are a part.  Except as set forth in Schedule II, no
tenant under any Lease has any right or option for additional space in the
Improvements.  To Borrower’s actual
knowledge based on the Environmental Report delivered to Lender in connection
herewith, no hazardous wastes or toxic substances, as defined by applicable
federal, state or local statutes, rules and regulations, have been disposed,
stored or treated by any tenant under any Lease on or about the leased premises
nor does Borrower have any knowledge of any tenant’s intention to use its
leased premises for any activity which, directly or indirectly, involves the
use, generation, treatment, storage, disposal or transportation of any
petroleum product or any toxic or hazardous chemical, material, substance or waste,
except in either event, in compliance with applicable federal, state or local
statues, rules and regulations.

 40
 

 

4.1.27     Survey.  To Borrower’s Knowledge no Survey for the
Property delivered to Lender in connection with this Agreement fails to reflect
any material matter affecting the Property or the title thereto.

4.1.28     Inventory.  Borrower is the owner of all of the
Equipment, Fixtures and Personal Property (as such terms are defined in the
Security Instrument) located on or at the Property and shall not lease any
Equipment, Fixtures or Personal Property other than as permitted
hereunder.  All of the Equipment,
Fixtures and Personal Property are sufficient to operate the Property in the
manner required hereunder and in the manner in which it is currently operated.

4.1.29     Filing
and Recording Taxes.  All transfer taxes, deed stamps, intangible
taxes or other amounts in the nature of transfer taxes required to be paid by
any Person under applicable Legal Requirements currently in effect in
connection with the acquisition of the Property to Borrower have been paid or
are simultaneously being paid.  All
mortgage, mortgage recording, stamp, intangible or other similar tax required
to be paid by any Person under applicable Legal Requirements currently in effect
in connection with the execution, delivery, recordation, filing, registration,
perfection or enforcement of any of the Loan Documents, including, without
limitation, the Security Instrument, have been paid, and, under current Legal
Requirements, the Security Instrument is enforceable in accordance with its
terms by Lender (or any subsequent holder thereof).

4.1.30     Special
Purpose Entity/Separateness.  (a)  Until
the Debt has been paid in full, Borrower hereby represents, warrants and
covenants that Borrower is, shall be and shall continue to be a Special Purpose
Entity.  Lender acknowledges that the
single purpose provisions contained in the operating agreement of the Borrower
as of the date hereof satisfy the requirements of a Single Purpose Entity.

(b)           The
representations, warranties and covenants set forth in Section 4.1.30(a) shall survive for so
long as any amount remains payable to Lender under this Agreement or any other
Loan Document.

(c)           All
of the facts stated and all of the assumptions made in the Insolvency Opinion,
including, but not limited to, in any exhibits attached thereto, are true and
correct in all respects.  Borrower has
complied and will comply with all of the assumptions made with respect to Borrower
in the Insolvency Opinion.  Borrower will
comply with all of the assumptions made with respect to Borrower and Principal
in any subsequent non-consolidation opinion required to be delivered in
connection with the Loan Documents (an “Additional Insolvency Opinion”).  Each Affiliate of Borrower and Principal with
respect to which an assumption shall be made in any Additional Insolvency
Opinion will comply with all of the assumptions made with respect to it in any
Additional Insolvency Opinion.

4.1.31     Property
Management Agreement.  The Property Management Agreement is in full
force and effect and there are no defaults thereunder by any party thereto and
no event has occurred that, with the passage of time and/or the giving of
notice would constitute a default thereunder.

 41
 

 

4.1.32     Illegal
Activity. 
No portion of the Property has been to Borrower’s knowledge nor will be
purchased by Borrower with proceeds of any illegal activity.

4.1.33     No
Change in Facts or Circumstances; Disclosure.  All information submitted by Borrower to
Lender and in all financial statements, rent rolls (including the rent roll
attached hereto as Schedule II), reports, certificates and other
documents submitted in connection with the Loan or in satisfaction of the terms
thereof and all statements of fact made by Borrower in this Agreement or in any
other Loan Document, are accurate, complete and correct in all material
respects, provided, however, that if such information was provided to Borrower
by non-affiliated third parties, Borrower represents that such information is, to
Borrower’s Knowledge, accurate, complete and correct in all material
respects.  To Borrower’s Knowledge, there
has been no material adverse change in any condition, fact, circumstance or
event that would make any such information inaccurate, incomplete or otherwise
misleading in any material respect or that otherwise materially and adversely
affects or might materially and adversely affect the Property or the business
operations or the financial condition of Borrower.  To Borrower’s Knowledge, Borrower has
disclosed to Lender all material facts and has not failed to disclose any
material fact that could cause any Provided Information or representation or
warranty made herein to be materially misleading.

4.1.34     Investment
Company Act. 
Borrower is not (a) an “investment company” or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of
1940, as amended; (b) a “holding company” or a “subsidiary company” of a “holding
company” or an “affiliate” of either a “holding company” or a “subsidiary
company” within the meaning of the Public Utility Holding Company Act of 1935,
as amended; or (c) subject to any other federal or state law or regulation
which purports to restrict or regulate its ability to borrow money.

4.1.35     Embargoed
Person.  As
of the Closing Date, (a) none of the funds or other assets of Borrower
constitute property of, or are beneficially owned, directly or indirectly, by
any Embargoed Person; (b) no Embargoed Person has any interest of any nature
whatsoever in Borrower with the result that the investment in Borrower (whether
directly or indirectly), is prohibited by law or the Loan is in violation of
law; and (c) none of the funds of Borrower have been derived from any unlawful
activity with the result that the investment in Borrower (whether directly or
indirectly), is prohibited by law or the Loan is in violation of law.

4.1.36     Principal
Place of Business; State of Organization.  Borrower’s principal place of business as of
the date hereof is the address set forth in the introductory paragraph of this
Agreement.  The Borrower is organized
under the laws of the State of Delaware.

4.1.37     Loan
to Value. 
The maximum principal amount of the Loan does not exceed one hundred
twenty-five percent (125%) of the fair market value of the Property as set
forth on the appraisal of the Property.

 42
 

 

4.1.38     Mortgage
Taxes.  As
of the date hereof, Borrower represents that it has paid or has deposited with
the title company issuing the Title Insurance Policy funds sufficient to pay
all state, county and municipal recording and all other taxes imposed upon the
execution and recordation of the Security Instrument.

4.1.39     Ground
Lease. 
Borrower hereby represents and warrants to Lender the following with
respect to the Ground Lease:

(a)           Recording;
Modification.  The Ground Lease or a
memorandum of the Ground Lease has been duly recorded.  The Ground Lease permits the interest of
Borrower to be encumbered by a mortgage. 
There have not been amendments or modifications to the terms of the
Ground Lease since its recordation, with the exception of written instruments
which have been recorded or in respect of which a memorandum has been
recorded.  The Ground Lease may not be
canceled, terminated, surrendered or amended without the prior written consent
of Lender.

(b)           No
Liens.  Except for the Permitted
Encumbrances, Borrower’s interest in the Ground Lease is not subject to any
Liens or encumbrances superior to, or of equal priority with, the related
Security Instrument other than the ground lessor’s related fee interest.

(c)           Ground
Lease Assignable.  Borrower’s
interest in the Ground Lease is assignable to Lender upon notice to, but
without the consent of, the ground lessor (or, if any such consent is required,
it has been obtained prior to the Closing Date).

(d)           Default.  As of the date hereof, the Ground Lease is in
full force and effect and no default has occurred under the Ground Lease and
there is no existing condition which, but for the passage of time or the giving
of notice, could result in a default under the terms of the Ground Lease.

(e)           Notice.  The Ground Lease requires the ground lessor
to give notice of any default by Borrower to Lender, subject to compliance with
Section 7(b) of the Ground Lease.  The
Ground Lease, or estoppel letters received by Lender from the ground lessor,
further provides that notice of termination given under the Ground Lease is not
effective against Lender unless a copy of the notice has been delivered to
Lender in the manner described in the Ground Lease, subject to compliance with
Section 7(b) of the Ground Lease.

(f)            Cure.  Subject to Section 7(b) of the Ground Lease,
Lender is permitted the opportunity (including, where necessary, sufficient
time to gain possession of the interest of Borrower under the Ground Lease) to
cure any default under the Ground Lease, which is curable after the receipt of
notice of any of the default before the ground lessor thereunder may terminate
the Ground Lease.

(g)           Term.  The Ground Lease has a term, including
extension options, which extends not less than twenty (20) years beyond the
Maturity Date.

(h)           New
Lease.  The Ground Lease requires the
ground lessor to enter into a new lease with Lender upon termination of the
Ground Lease for any reason.

 43

 

 

(i)            Insurance
Proceeds.  Under the terms of the
Ground Lease and the Security Instrument, taken together, any related insurance
proceeds will be applied either to the repair or restoration of all or part of
the Property, with Lender having the right to hold and disburse the proceeds as
the repair or restoration progresses, or to the payment of the outstanding
principal balance of the Loan together with any accrued interest thereon.

(j)            Subleasing.  The Ground Lease does not impose any
restrictions on subleasing.

4.1.40     REA/Development
Agreement. 
The REA and the Development Agreement are in full force and effect and
neither Borrower nor, to Borrower’s knowledge, any other party to the REA or
the Development Agreement, is in default thereunder, and to the best of
Borrower’s knowledge, there are no conditions which, with the passage of time
or the giving of notice, or both, would constitute a default thereunder.  Except as set forth on Schedule V, the REA
has not been modified, amended or supplemented.

Section 4.2            Survival
of Representations. Borrower agrees that all of
the representations and warranties of Borrower set forth in Section 4.1 and elsewhere in this
Agreement and in the other Loan Documents shall survive for so long as any
amount remains owing to Lender under this Agreement or any of the other Loan
Documents by Borrower.  All
representations, warranties, covenants and agreements made in this Agreement or
in the other Loan Documents by Borrower shall be deemed to have been relied
upon by Lender notwithstanding any investigation heretofore or hereafter made
by Lender or on its behalf.

V.                                    BORROWER
COVENANTS

Section 5.1            Affirmative
Covenants. 
From the Closing Date and until payment and performance in full of all
obligations of Borrower under the Loan Documents or the earlier release of the
Lien of the Security Instrument encumbering the Property (and all related
obligations) in accordance with the terms of this Agreement and the other Loan
Documents, Borrower hereby covenants and agrees with Lender that:

5.1.1       Existence;
Compliance with Legal Requirements; Insurance.  Borrower shall do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its
existence, rights, licenses, permits and franchises and comply with all Legal
Requirements applicable to it and the Property. 
Borrower shall not commit, nor shall Borrower permit any other Person in
occupancy of or involved with the operation or use of the Property to commit
any act or omission affording the federal government or any state or local
government the right of forfeiture as against the Property or any part thereof
or any monies paid in performance of Borrower’s obligations under any of the
Loan Documents.  Borrower hereby
covenants and agrees not to commit, permit or suffer to exist any act or
omission affording such right of forfeiture. 
Borrower shall at all times maintain, preserve and protect all its
franchises and trade names and preserve all the remainder of its property used
or useful in the conduct of its business and shall keep the Property in good
working order and repair, and from time to time make, or cause to be made, all
reasonably necessary repairs, renewals, replacements, betterments and

 44
 

 

improvements
thereto, all as more fully provided in the Security Instrument.  Borrower shall keep the Property insured at
all times by financially sound and reputable insurers, to such extent and
against such risks, and maintain liability and such other insurance, as is more
fully provided in this Agreement.  After
prior written notice to Lender, Borrower, at its own expense, may contest by
appropriate legal proceeding promptly initiated and conducted in good faith and
with due diligence, the validity of any Legal Requirement, the applicability of
any Legal Requirement to Borrower or the Property or any alleged violation of
any Legal Requirement, provided that (i) no Default or Event of Default
has occurred and remains uncured; (ii) intentionally omitted;
(iii) such proceeding shall be permitted under and be conducted in accordance
with the provisions of any instrument to which Borrower is subject and shall
not constitute a default thereunder and such proceeding shall be conducted in
accordance with all applicable statutes, laws and ordinances; (iv) neither
the Property nor any part thereof or interest therein will be in immediate
danger of being sold, forfeited, terminated, cancelled or lost;
(v) Borrower shall promptly upon final determination thereof comply with
any such Legal Requirement determined to be valid or applicable or cure any
violation of any Legal Requirement; (vi) such proceeding shall suspend the
enforcement of the contested Legal Requirement against Borrower or the
Property; and (vii) Borrower shall furnish such security as may be
required in the proceeding, or as may be requested by Lender, to insure
compliance with such Legal Requirement, together with all interest and
penalties payable in connection therewith. 
Lender may apply any such security, as necessary to cause compliance
with such Legal Requirement at any time when, in the reasonable judgment of
Lender, the validity, applicability or violation of such Legal Requirement is
finally established or the Property (or any part thereof or interest therein)
shall be in danger of being sold, forfeited, terminated, cancelled or
lost.  Provided no Event of Default then
exists, any security deposited with Lender pursuant to this Section 5.1.1 may
be used to satisfy compliance with the related Legal Requirement with any excess
after the satisfaction of same to be returned to Borrower.

5.1.2       Taxes
and Other Charges. Borrower shall pay or cause to
be paid all Taxes and Other Charges now or hereafter levied or assessed or
imposed against the Property or any part thereof as the same become due and
payable; provided, however, Borrower’s obligation to directly pay to the
appropriate taxing authority Taxes shall be suspended if Borrower has deposited
amounts for the payment of such Taxes into the Tax and Insurance Escrow Funds
pursuant to of Section 7.2
hereof.  Borrower will deliver to Lender
receipts for payment or other evidence satisfactory to Lender that the Taxes
and Other Charges have been so paid or are not then delinquent no later than
ten (10) days prior to the date on which the Taxes and/or Other Charges would otherwise
be delinquent if not paid (provided, however, that Borrower is not required to
furnish such receipts for payment of Taxes in the event that such Taxes have
been paid by Lender pursuant to Section 7.2
hereof).  If Borrower pays or causes to
be paid all Taxes and Other Charges and provides a copy of the receipt
evidencing the payment thereof to Lender, then Lender shall reimburse Borrower,
provided that there are then sufficient proceeds in the Tax and Insurance
Escrow Funds and provided that the Taxes are being paid pursuant to Section
7.2.  Upon written request of Borrower,
if Lender has paid such Taxes pursuant to Section 7.2 hereof, Lender shall
provide Borrower with evidence that such Taxes have been paid.  Borrower shall not suffer and shall promptly
cause to be paid and discharged any Lien or

 45
 

 

charge
whatsoever which may be or become a Lien or charge against the Property, and
shall promptly pay for all utility services provided to the Property.  After prior written notice to Lender,
Borrower, at its own expense, may contest by appropriate legal proceeding,
promptly initiated and conducted in good faith and with due diligence, the
amount or validity or application in whole or in part of any Taxes or Other
Charges, provided that (i)  Borrower is permitted to do so under the
provisions of any mortgage or deed of trust superior in lien to the Security
Instrument; (ii) such proceeding shall be permitted under and be conducted
in accordance with the provisions of any other instrument to which Borrower is
subject and shall not constitute a default thereunder and such proceeding shall
be conducted in accordance with all applicable statutes, laws and ordinances;
(iii) neither the Property nor any part thereof or interest therein will
be in immediate danger of being sold, forfeited, terminated, cancelled or lost;
(iv) Borrower shall promptly upon final determination thereof pay the
amount of any such Taxes or Other Charges, together with all costs, interest
and penalties which may be payable in connection therewith; (v) such
proceeding shall suspend the collection of such contested Taxes or Other
Charges from the Property; and (vi) Borrower shall furnish such security
as may be required in the proceeding, or as may be reasonably requested by
Lender, to insure the payment of any such Taxes or Other Charges, together with
all interest and penalties thereon. 
Lender may pay over any such cash deposit or part thereof held by Lender
to the claimant entitled thereto at any time when, in the reasonable judgment
of Lender, the entitlement of such claimant is established or the Property (or
part thereof or interest therein) shall be in imminent danger of being sold,
forfeited, terminated, cancelled or lost or there shall be any danger of the
Lien of the Security Instrument being primed by any related Lien other than a
Lien in respect of Taxes being contested in accordance with the provisions of
this Section 5.1.2.  Provided no Event of
Default then exists, any security deposited with Lender pursuant to this
Section 5.1.2 may be used to satisfy the related Taxes or Other Charges with
any excess after the satisfaction of same to be returned to Borrower.

5.1.3       Litigation.  Borrower shall give prompt written notice to
Lender upon obtaining information of any litigation or governmental proceedings
pending or threatened against Borrower and/or Guarantor which might materially
adversely affect Borrower’s or Guarantor’s condition (financial or otherwise)
or business or the Property.

5.1.4       Access
to Property. 
Borrower shall permit agents, representatives and employees of Lender to
inspect the Property or any part thereof at reasonable hours upon reasonable
advance notice, subject to the rights of Tenants under their respective Leases.

5.1.5       Notice
of Default. 
Borrower shall promptly advise Lender of the occurrence of any Default
or Event of Default of which Borrower has knowledge.

5.1.6       Cooperate
in Legal Proceedings.  Borrower shall cooperate fully with Lender
with respect to any proceedings before any court, board or other Governmental
Authority which may in any way affect the rights of Lender hereunder or any
rights obtained by Lender under any of the other Loan Documents and, in
connection therewith, permit Lender, at its election, to participate in any
such proceedings.

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5.1.7       Perform
Loan Documents. 
Borrower shall observe, perform and satisfy all the terms, provisions,
covenants and conditions of, and shall pay when due all costs, fees and
expenses to the extent required under the Loan Documents executed and delivered
by, or applicable to, Borrower.

5.1.8       Award
and Insurance Benefits.  Borrower shall cooperate with Lender in
obtaining for Lender the benefits of any Awards or Insurance Proceeds lawfully
or equitably payable in connection with the Property, and Lender shall be reimbursed
for any expenses incurred in connection therewith (including reasonable
attorneys’ fees and disbursements, and the payment by Borrower of the expense
of an appraisal on behalf of Lender in case of Casualty or Condemnation
affecting the Property or any part thereof) out of such Insurance Proceeds.

5.1.9       Further
Assurances. Borrower shall, at Borrower’s sole
cost and expense:

(a)           furnish
to Lender all instruments, documents, boundary surveys, footing or foundation
surveys, certificates, plans and specifications, appraisals, title and other
insurance reports and agreements, and each and every other document,
certificate, agreement and instrument required to be furnished by Borrower
pursuant to the terms of the Loan Documents or reasonably requested by Lender
in connection therewith;

(b)           execute
and deliver to Lender such documents, instruments, certificates, assignments
and other writings, and do such other acts necessary or desirable, to evidence,
preserve and/or protect the collateral at any time securing or intended to
secure the obligations of Borrower under the Loan Documents, as Lender may
reasonably require; and

(c)           do
and execute all and such further lawful and reasonable acts, conveyances and
assurances for the better and more effective carrying out of the intents and
purposes of this Agreement and the other Loan Documents, as Lender shall
reasonably require from time to time.

5.1.10     Principal
Place of Business, State of Organization.  Borrower will not cause or permit any change
to be made in its name, identity (including its trade name or names), place of
organization or formation (as set forth in Section 4.1.36 hereof) or Borrower’s
corporate, partnership or other structure unless Borrower shall have first
notified Lender in writing of such change at least thirty (30) days prior to
the effective date of such change, and shall have first taken all action
required by Lender for the purpose of perfecting or protecting the lien and
security interests of Lender pursuant to this Agreement and the other Loan
Documents and, in the case of a change in Borrower’s structure, without first
obtaining the prior consent of Lender. 
Upon Lender’s request, Borrower shall execute and deliver additional
financing statements, security agreements and other instruments which may be
necessary to effectively evidence or perfect Lender’s security interest in the
Property as a result of such change of principal place of business or place of
organization.  Borrower’s principal place
of business and chief executive office, and the place where Borrower keeps its
books and records, including recorded data of any kind or nature, regardless of
the medium or recording, including software, writings, plans,

 47
 

 

specifications
and schematics, has been for the preceding four months (or, if less, the entire
period of the existence of Borrower) and will continue to be the address of
Borrower set forth at the introductory paragraph of this Agreement (unless
Borrower notifies Lender in writing at least thirty (30) days prior to the
date of such change).  Borrower’s
organizational identification number, assigned by the state of incorporation or
organization is  4239703.  Borrower shall promptly notify Lender of any
change in its organizational identification number.  If Borrower does not now have an
organizational identification number and later obtains one, Borrower promptly
shall notify Lender of such organizational identification number.

5.1.11     Financial
Reporting. 
(a)  Borrower will keep and
maintain or will cause to be kept and maintained on a Fiscal Year basis, in
accordance with GAAP (or such other accounting basis reasonably acceptable to
Lender), records and accounts reflecting all of the financial affairs of
Borrower and all items of income and expense in connection with the operation of
the Property.  Lender shall have the
right from time to time at all times during normal business hours upon
reasonable notice to examine such books, records and accounts at the office of
Borrower or other Person maintaining such books, records and accounts and to
make such copies or extracts thereof as Lender shall desire.  After the occurrence and during the
continuance of an Event of Default, Borrower shall pay any costs and expenses
incurred by Lender to examine Borrower’s accounting records with respect to the
Property, as Lender shall reasonably determine to be necessary or appropriate
in the protection of Lender’s interest.

(b)           Borrower
will furnish to Lender annually, within one hundred twenty (120) days
following the end of each Fiscal Year of Borrower, certified annual financial
statements prepared in accordance with GAAP (or such other accounting basis
reasonably acceptable to Lender) covering the Property for such Fiscal Year and
containing statements of profit and loss for Borrower and the Property and a
balance sheet for Borrower.  Such
statements shall set forth the financial condition and the results of
operations for the Property for such Fiscal Year, and shall include, but not be
limited to, amounts representing annual Net Cash Flow, Net Operating Income,
Gross Income from Operations and Operating Expenses.  Such annual financial statements shall be
accompanied by (i) a comparison of the budgeted income and expenses and
the actual income and expenses for the prior Fiscal Year, (ii) an Officer’s
Certificate stating that each such annual financial statement presents fairly
the financial condition and the results of operations of Borrower and the
Property being reported upon and has been prepared in accordance with GAAP (or
such other accounting basis reasonably acceptable to Lender), (iii) a list
of tenants, if any, occupying more than twenty percent (20%) of the total floor
area of the Improvements, (iv) a breakdown showing the year in which each
Lease then in effect expires and the percentage of total floor area of the
Improvements and the percentage of base rent with respect to which Leases shall
expire in each such year, each such percentage to be expressed on both a per
year and cumulative basis, and (v) a schedule reconciling Net Operating Income
to Net Cash Flow (the “Net Cash Flow Schedule”), which shall itemize all material
adjustments made to Net Operating Income to arrive at Net Cash Flow.  Together with Borrower’s annual financial
statements, Borrower shall furnish to Lender an Officer’s Certificate
certifying to its knowledge as of the date thereof whether there exists an
event or circumstance which constitutes a Default or Event of Default under the
Loan Documents executed and delivered by, or applicable to, Borrower, and if
such Default or Event of Default exists, the

 48
 

 

nature thereof, the period of time it has existed and the action then
being taken to remedy the same.

(c)           Borrower
will furnish, or cause to be furnished, to Lender on or before twenty (20)
days after the end of each calendar quarter the following items, accompanied by
an Officer’s Certificate stating that such items are true, correct, accurate,
and complete and fairly present the financial condition and results of the
operations of Borrower and the Property (subject to normal year-end
adjustments) as applicable:  (i) 
quarterly and year-to-date operating statements (including Capital
Expenditures) prepared for each calendar quarter, noting Net Operating Income,
Gross Income from Operations, and Operating Expenses (not including any
contributions to the Replacement Reserve Account), and other information
necessary and sufficient to fairly represent the financial position and results
of operation of the Property during such calendar quarter, and containing a
comparison of budgeted income and expenses and the actual income and expenses
together with a detailed explanation of any variances of five percent (5%) or
more between budgeted and actual amounts for such periods, all in form
satisfactory to Lender; (ii) a calculation reflecting the annual Debt
Service Coverage Ratio for the immediately preceding twelve (12) month
period as of the last day of such quarter accompanied by an Officer’s
Certificate with respect thereto; and (iii) a Net Cash Flow Schedule.  Prior to a Securitization, Borrower shall
provide the items required pursuant to this Section 5.1.11(c) on a monthly
basis.

(d)           For
the partial year period commencing on the Closing Date, and for each Fiscal
Year thereafter, Borrower shall submit to Lender an Annual Budget not later
than thirty (30) days after the commencement of such period or Fiscal Year in
form reasonably satisfactory to Lender. 
The Annual Budget shall be subject to Lender’s written approval if a
Cash Sweep Period exists (each such Annual Budget, an “Approved Annual Budget”).  In the event that Lender objects to a
proposed Annual Budget submitted by Borrower during a Cash Sweep Period, Lender
shall advise Borrower of such objections within fifteen (15) days after
receipt thereof (and deliver to Borrower a reasonably detailed description of
such objections) and Borrower shall promptly revise such Annual Budget and
resubmit the same to Lender.  Lender
shall advise Borrower of any objections to such revised Annual Budget within
ten (10) days after receipt thereof (and deliver to Borrower a reasonably
detailed description of such objections) and Borrower shall promptly revise the
same in accordance with the process described in this subsection until Lender
approves the Annual Budget.  Until such
time that Lender approves a proposed Annual Budget, the most recently Approved
Annual Budget shall apply; provided that, such Approved Annual Budget shall be
adjusted to reflect actual increases in Taxes, Insurance Premiums and Other
Charges.

(e)           In
the event that a Cash Sweep Period Exists and Borrower must incur an
extraordinary operating expense or capital expense not set forth in the
Approved Annual Budget (each an “Extraordinary Expense”), then Borrower shall promptly
deliver to Lender a reasonably detailed explanation of such proposed
Extraordinary Expense for Lender’s approval.

(f)            Any
reports, statements or other information required to be delivered under this
Agreement shall be delivered (i) in paper form, (ii) on a diskette,
and (iii) if requested by Lender and within the capabilities of Borrower’s
data systems without change or modification thereto, in electronic form and
prepared using Microsoft Word for Windows or WordPerfect for 

 49
 

 

Windows files (which files may be prepared using a spreadsheet program
and saved as word processing files). 
Borrower agrees that Lender may disclose information regarding the
Property and Borrower that is provided to Lender pursuant to this Section 5.1.11(f) in connection with
the Securitization to such parties requesting such information in connection
with such Securitization.

5.1.12     Business
and Operations. 
Borrower will continue to engage in the businesses presently conducted
by it as and to the extent the same are necessary for the ownership,
maintenance, management and operation of the Property.  Borrower will qualify to do business and will
remain in good standing under the laws of the jurisdiction as and to the extent
the same are required for the ownership, maintenance, management and operation
of the Property.  Borrower shall at all
times during the term of the Loan, continue to own all of the Equipment,
Fixtures and Personal Property which are necessary to operate the Property in
the manner required hereunder and in the manner in which it is currently
operated.

5.1.13     Title
to the Property. 
Borrower will warrant and defend (a) the title to the Property and
every part thereof, subject only to Liens permitted hereunder (including
Permitted Encumbrances) and (b) the validity and priority of the Lien of
the Security Instrument and the Assignment of Leases on the Property, subject
only to Liens permitted hereunder (including Permitted Encumbrances), in each
case against the claims of all Persons whomsoever.  Borrower shall reimburse Lender for any
losses, costs, damages or expenses (including reasonable attorneys’ fees and
court costs) incurred by Lender if an interest in the Property, other than as
permitted hereunder, is claimed by another Person.

5.1.14     Costs
of Enforcement. 
In the event (a) that the Security Instrument encumbering the
Property is foreclosed in whole or in part or that the Security Instrument is
put into the hands of an attorney for collection, suit, action or foreclosure,
(b) of the foreclosure of any mortgage prior to or subsequent to the
Security Instrument encumbering the Property in which proceeding Lender is made
a party, or (c) of the bankruptcy, insolvency, rehabilitation or other
similar proceeding in respect of Borrower or any of its constituent Persons or
an assignment by Borrower or any of its constituent Persons for the benefit of
its creditors, Borrower, its successors or assigns, shall be chargeable with
and agrees to pay all costs of collection and defense, including reasonable
attorneys’ fees and costs, incurred by Lender or Borrower in connection therewith
and in connection with any appellate proceeding or post-judgment action
involved therein, together with all required service or use taxes.

5.1.15     Estoppel
Statement. 
(a)  After request by Lender,
Borrower shall furnish to Lender within ten (10) days a statement, duly
acknowledged and certified, setting forth (i)  the amount of the original
principal amount of the Note, (ii) the unpaid principal amount of the
Note, (iii) the Interest Rate of the Note, (iv) the date installments
of interest and/or principal were last paid, (v) any known offsets or
defenses to the payment of the Debt, if any, and (vi) that the Note, this
Agreement, the Security Instrument and the other Loan Documents are valid,
legal and binding obligations and have not been modified or if modified, giving
particulars of such modification.

 50
 

 

(b)           Borrower
shall use commercially reasonable efforts to deliver to Lender upon request,
estoppel certificates from the ground lessor under the Ground Lease and each
commercial tenant leasing space at the Property in form and substance
reasonably satisfactory to Lender; provided, however, that Borrower shall not
be required to deliver such certificates more frequently than one (1) time
in any calendar year except in connection with a Securitization or an Event of
Default.

(c)           Within
thirty (30) days of request by Borrower, Lender shall deliver to Borrower a
statement setting forth the items described at (a)(i), (ii), (iii) and (iv) of
this Section 5.1.15.

5.1.16     Loan
Proceeds. 
Borrower shall use the proceeds of the Loan received by it on the
Closing Date only for the purposes set forth in Section 2.1.4.

5.1.17     Performance
by Borrower. 
Borrower shall in a timely manner observe, perform and fulfill each and
every covenant, term and provision of each Loan Document executed and delivered
by, or applicable to, Borrower, and shall not enter into or otherwise suffer or
permit any amendment, waiver, supplement, termination or other modification of
any Loan Document executed and delivered by, or applicable to, Borrower without
the prior written consent of Lender.

5.1.18     Confirmation
of Representations.  Borrower shall deliver, in connection with
any Securitization, (a) one (1) or more Officer’s Certificates certifying
as to the accuracy (or disclosing any inaccuracies, as applicable) of all
representations made by Borrower in the Loan Documents as of the date of the
closing of such Securitization, and (b) certificates of the relevant
Governmental Authorities in all relevant jurisdictions indicating the good standing
and qualification of Borrower, Principal and Guarantor as of the date of the
Securitization.

5.1.19     No
Joint Assessment. Borrower shall not suffer,
permit or initiate the joint assessment of the Property (a) with any other
real property constituting a tax lot separate from the Property, and
(b) which constitutes real property with any portion of the Property which
may be deemed to constitute personal property, or any other procedure whereby
the lien of any taxes which may be levied against such personal property shall
be assessed or levied or charged to such real property portion of the Property.

5.1.20     Leasing
Matters. Any Leases with respect to the Property
written after the Closing Date, for more than the Relevant Leasing Threshold
square footage shall be subject to the prior written approval of Lender, which
approval may be given or withheld in the sole discretion of Lender.  Lender shall approve or disapprove any such
Lease within ten (10) Business Days of Lender’s receipt of a final execution
draft of such Lease (including all exhibits, schedules, supplements, addenda or
other agreements relating thereto) and a written notice from Borrower
requesting Lender’s approval to such Lease, and such Lease shall be deemed
approved, if Lender does not disapprove such Lease within said ten (10)
Business Day period provided such written notice conspicuously states, in large
bold type, that “PURSUANT TO SECTION 5.1.20 OF THE LOAN AGREEMENT, THE LEASE
SHALL BE DEEMED APPROVED IF LENDER

 51
 

 

DOES NOT
RESPOND TO THE CONTRARY WITHIN TEN (10) BUSINESS DAYS OF LENDER’S RECEIPT OF
SUCH LEASE AND WRITTEN NOTICE”, provided that in no event shall Lender’s
consent be deemed given with respect to any Lease for 50,000 or more rentable
square feet.  Borrower shall furnish
Lender with executed copies of all Leases. 
All renewals of Leases and all proposed Leases shall provide for rental
rates comparable to existing local market rates (unless such rental rates are
otherwise set forth in the Leases executed prior to the Closing Date).  All proposed Leases shall be on commercially
reasonable terms and shall not contain any terms which would materially impair
Lender’s rights under the Loan Documents. 
All Leases executed after the Closing Date shall provide that they are
subordinate to the Security Instrument encumbering the Property and that the
tenant thereunder agrees to attorn to Lender or any purchaser at a sale by
foreclosure or power of sale.  Borrower
(i) shall observe and perform the obligations imposed upon the lessor
under the Leases in a commercially reasonable manner; (ii) shall enforce
the terms, covenants and conditions contained in the Leases upon the part of
the tenant thereunder to be observed or performed in a commercially reasonable
manner and in a manner not to impair the value of the Property involved except
that no termination by Borrower or acceptance of surrender by a tenant of any
Lease shall be permitted unless by reason of a tenant default and then only in
a commercially reasonable manner to preserve and protect the Property;
provided, however, that no such termination or surrender of any Lease covering
more than the Relevant Leasing Threshold will be permitted without the written
consent of Lender which consent may be withheld in the reasonable discretion of
Lender; (iii) shall not collect any of the rents more than one (1) month
in advance (other than security deposits); (iv) shall not execute any
other assignment of lessor’s interest in the Leases or the Rents (except as
contemplated by the Loan Documents); (v) shall not alter, modify or change
the terms of the Leases in a manner inconsistent with the provisions of the
Loan Documents without the prior written consent of Lender, which consent may
be withheld in the sole discretion of Lender; and (vi) shall execute and
deliver at the request of Lender all such further assurances, confirmations and
assignments in connection with the Leases as Lender shall from time to time
reasonably require.  Notwithstanding
anything to the contrary contained herein, Borrower shall not enter into a
lease of all or substantially all of the Property without Lender’s prior
written consent.  Notwithstanding the
foregoing, Borrower may, without the prior written consent of Lender, terminate
any Lease which demises less than the Relevant Leasing Threshold under any of
the following circumstances: (i) the tenant under said Lease is in default
beyond any applicable grace and cure period, and Borrower has the right to
terminate such Lease; (ii) such termination is permitted by the terms of the
Lease in question and Borrower has secured an obligation from a third party to
lease the space under the Lease to be terminated at a rental equal to or higher
than the rental due under the Lease to be terminated; and (iii) if the tenant
under the Lease to be terminated, has executed a right under said Lease to
terminate its lease upon payment of a termination fee to Borrower, and has in
fact terminated its lease and paid said fee, Borrower may accept said
termination.

5.1.21     Alterations.
Subject to the rights of tenants to make alterations pursuant to the terms of
their respective leases, Borrower shall obtain Lender’s prior written consent
to any alterations to any Improvements, which consent shall not be unreasonably
withheld or delayed except with respect to alterations that may have a material
adverse effect on Borrower’s financial condition, the value of the Property or
the

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Net Operating
Income.  Notwithstanding the foregoing,
Lender’s consent shall not be required in connection with any alterations that
will not have a material adverse effect on Borrower’s financial condition, the
value of the Property or the Net Operating Income, provided that such
alterations are made in connection with (a) tenant improvement work
performed pursuant to the terms of any Lease executed on or before the Closing
Date, (b) tenant improvement work performed pursuant to the terms and
provisions of a Lease and not adversely affecting any structural component of
any Improvements, any utility or HVAC system contained in any Improvements or
the exterior of any building constituting a part of any Improvements,
(c) alterations performed in connection with the Restoration of the
Property after the occurrence of a Casualty or Condemnation in accordance with
the terms and provisions of this Agreement or (d) any structural alteration
which costs less than $150,000.00 in the aggregate for all components thereof
which constitute such alteration or any non-structural alteration which costs
less than $300,000.00 in the aggregate for all components thereof which
constitute such alteration.  If the total
unpaid amounts due and payable with respect to alterations to the Improvements
at the Property (other than such amounts to be paid or reimbursed by tenants
under the Leases) shall at any time equal or exceed $300,000.00 (and such
amount is not being paid from any Reserve Fund) (the “Threshold Amount”), Borrower,
upon Lender’s request, shall promptly deliver to Lender as security for the
payment of such amounts and as additional security for Borrower’s obligations
under the Loan Documents any of the following: 
(A) cash, (B) U.S. Obligations, (C) other securities
having a rating acceptable to Lender and that the applicable Rating Agencies
have confirmed in writing will not, in and of itself, result in a downgrade,
withdrawal or qualification of the then current ratings assigned to any
Securities or any class thereof in connection with any Securitization or
(D) a completion and performance bond or an irrevocable letter of credit
(payable on sight draft only) issued by a financial institution having a rating
by S&P of not less than “A-1+” if the term of such bond or letter of credit
is no longer than three (3) months or, if such term is in excess of
three (3) months, issued by a financial institution having a rating that
is acceptable to Lender and that the applicable Rating Agencies have confirmed
in writing will not, in and of itself, result in a downgrade, withdrawal or
qualification of the then current ratings assigned to any Securities or class thereof
in connection with any Securitization. 
Such security shall be in an amount equal to the excess of the total
unpaid amounts with respect to alterations to the Improvements on the Property
(other than such amounts to be paid or reimbursed by tenants under the Leases)
over the Threshold Amount and, if cash, U.S. Obligations or other securities,
may be applied from time to time, at the option of Borrower to pay for such
alterations.  At the option of Lender,
following the occurrence and during the continuance of an Event of Default,
Lender may terminate any of the alterations and use the deposit to restore the
Property to the extent necessary to prevent any material adverse effect on the
value of the Property.

5.1.22     Operation
of Property. (a) Borrower shall cause the Property to be operated, in all material
respects, in accordance with the Property Management Agreement (or Replacement
Management Agreement) as applicable.  In
the event that the Property Management Agreement expires or is terminated
(without limiting any obligation of Borrower to obtain Lender’s consent to any
termination or modification of the Property Management Agreement in accordance
with the terms and provisions of this Agreement),

 53
 

 

Borrower shall promptly enter into a Replacement Management Agreement
with Property Manager or another Qualifying Property Manager, as applicable.

(b)           Borrower shall: 
(i) promptly perform and/or observe, in all material
respects, all of the covenants and agreements required to be performed and
observed by it under the Property Management Agreement and do all things necessary to preserve and to keep unimpaired its
material rights thereunder; (ii) promptly notify Lender of any material
default under the Property Management Agreement of which it is aware; and (iii) enforce
the performance and observance of all of the covenants and agreements required
to be performed and/or observed by Property Manager under the Property
Management Agreement, in a commercially reasonable manner.

5.1.23     Supplemental
Mortgage Affidavits. As of the date hereof,
Borrower represents that it has paid or has deposited with the title company
issuing the Title Insurance Policy funds sufficient to pay all state, county
and municipal recording and all other taxes imposed upon the execution and
recordation of the Security Instrument. 
If at any time Lender determines, based on applicable law, that Lender
is not being afforded the maximum amount of security available from the
Property as a direct or indirect result of applicable taxes not having been
paid with respect to the Property, Borrower agrees that Borrower will execute,
acknowledge and deliver to Lender, within fifteen (15) days of Lender’s
request, supplemental affidavits increasing the amount of the Debt attributable
to the Property for which all applicable taxes have been paid to an amount
determined by Lender to be equal to the lesser of (a) the greater of the
fair market value of the Property (i) as of the date hereof and
(ii) as of the date such supplemental affidavits are to be delivered to
Lender, and (b) the amount of the Debt attributable to the Property, and
Borrower shall, on demand, pay any additional taxes.

5.1.24     Ground
Lease/Development Agreement.

(a)           Borrower
shall (i) pay all rents, additional rents and other sums required to be paid by
Borrower, as tenant under and pursuant to the provisions of the Ground Lease,
(ii) diligently perform and observe all of the terms, covenants and conditions
of the Ground Lease and the Development Agreement on the part of Borrower
thereunder, (iii) promptly notify Lender of the giving of any notice by the
landlord under the Ground Lease to Borrower or any party under the Development
Agreement of any default by Borrower, as tenant thereunder, and deliver to
Lender a true copy of each such notice within five (5) Business Days of receipt
and (iv) promptly (upon becoming aware of) notify Lender of any bankruptcy,
reorganization or insolvency of the landlord under the Ground Lease or of any
notice thereof, and deliver to Lender a true copy of such notice within five
(5) Business Days of Borrower’s receipt. 
Borrower shall not, without the prior consent of Lender, surrender the
leasehold estate created by the Ground Lease or terminate or cancel the Ground
Lease or the Development Agreement. 
Borrower shall not, without the prior consent of Lender which consent
shall not be unreasonably withheld, modify, change, supplement, alter or amend
the Ground Lease or the Development Agreement, and if Borrower shall default in
the performance or observance of any term, covenant or condition of the Ground
Lease or the Development Agreement on the part of Borrower, thereunder, and
shall fail to cure the same prior to the expiration of any applicable cure
period provided thereunder, Lender shall have the right, but shall be under no
obligation, to

 54
 

 

pay any sums and to perform any act or take any action as may be
appropriate to cause all of the terms, covenants and conditions of the Ground
Lease or the Development Agreement on the part of Borrower to be performed or observed
on behalf of Borrower, to the end that the rights of Borrower in, to and under
the Ground Lease or the Development Agreement shall be kept unimpaired and free
from default.  If the landlord under the
Ground Lease or any party under the Development Agreement shall deliver to
Lender a copy of any notice of default under the Ground Lease, such notice
shall constitute full protection to Lender for any action taken or omitted to
be taken by Lender, in good faith, in reliance thereon.  Borrower shall exercise each individual
option, if any, to extend or renew the term of the Ground Lease upon demand by
Lender made at any time within one (1) year prior to the last day upon which
any such option may be exercised, and Borrower hereby expressly authorizes and
appoints Lender its attorney-in-fact to exercise any such option in the name of
and upon behalf of Borrower, which power of attorney shall be irrevocable and
shall be deemed to be coupled with an interest.

Section 5.2            Negative
Covenants.

  From the Closing Date until payment and
performance in full of all obligations of Borrower under the Loan Documents or
the earlier release of the Lien of the Security Instrument encumbering the
Property in accordance with the terms of this Agreement and the other Loan Documents,
Borrower covenants and agrees with Lender that it will not do, directly or
indirectly, any of the following:

5.2.1       Operation
of Property. 
Borrower shall not, without Lender’s prior written consent (which
consent shall not be unreasonably withheld): (i) surrender, terminate or
cancel the Property Management Agreement; provided, that Borrower may, without
Lender’s consent, replace the Property Manager so long as the replacement
manager is a Qualifying Property Manager pursuant to a Replacement Management
Agreement; (ii) reduce or consent to the reduction of the term of the
Property Management Agreement; (iii) increase or consent to the increase
of the amount of any charges under the Property Management Agreement; or
(iv) otherwise modify, change, supplement, alter or amend, or waive or
release any of its rights and remedies under, the Property Management Agreement in any material respect.  Lender agrees that its consent pursuant to
this Section 5.2.1(a) will not be unreasonably withheld, delayed or
conditioned provided that in connection with any replacement of the Property
Manager the Person chosen by Borrower as the replacement Property Manager is a
Qualifying Property Manager, and further agrees that any such written request
for consent that includes evidence that the replacement Property Manager is a
Qualifying Property Manager, shall be approved or disapproved within ten (10)
Business Days of Lender’s receipt, provided such written request from Borrower
shall conspicuously state, in large bold type, that “PURSUANT TO SECTION 5.2.1 OF THE LOAN AGREEMENT, A RESPONSE IS REQUIRED
WITHIN TEN (10) BUSINESS DAYS OF LENDER’S RECEIPT OF THIS WRITTEN NOTICE”.  If Lender fails to disapprove any such matter
within such period, Borrower shall provide a second written notice requesting
approval, which written notice shall conspicuously state, in large bold type,
that “PURSUANT TO SECTION 5.2.1 OF THE LOAN
AGREEMENT, THE MATTER DESCRIBED HEREIN SHALL BE DEEMED APPROVED IF LENDER DOES
NOT RESPOND TO THE CONTRARY WITHIN FIVE (5) BUSINESS DAYS OF LENDER’S RECEIPT
OF THIS WRITTEN

 55
 

 

NOTICE”.  Thereafter, if Lender does not disapprove
such matter within said five (5) Business Day period such matter shall be
deemed approved.

5.2.2       Liens.  Borrower shall not, without the prior written
consent of Lender, create, incur, assume or suffer to exist any Lien on any
portion of the Property or permit any such action to be taken, except:

(i)             Permitted
Encumbrances;

(ii)            Liens
created by or permitted pursuant to the Loan Documents; and

(iii)           Liens for Taxes or
Other Charges not yet delinquent (or that Borrower is contesting in accordance
with the terms of Section 5.1.2 hereof).

5.2.3       Dissolution.  Borrower shall not (a) engage in any
dissolution, liquidation or consolidation or merger with or into any other
business entity, (b) engage in any business activity not related to the
ownership and operation of the Property,
(c) transfer, lease or sell, in one transaction or any combination of
transactions, the assets or all or substantially all of the properties or
assets of Borrower except to the extent permitted by the Loan Documents,
(d) modify, amend, waive or terminate its organizational documents or its
qualification and good standing in any jurisdiction in which it is organized or
the Property is located or (e) cause the Principal to (i) dissolve,
wind up or liquidate or take any action, or omit to take an action, as a result
of which the Principal would be dissolved, wound up or liquidated in whole or
in part, or (ii) amend, modify, waive or terminate the certificate of
formation or operating agreement of the Principal, in each case, without
obtaining the prior written consent of Lender or Lender’s designee.

5.2.4       Change
in Business. 
Borrower shall not enter into any line of business other than the
ownership and operation of the Property, or make any material change in the
scope or nature of its business objectives, purposes or operations, or
undertake or participate in activities other than the continuance of its
present business.  Nothing contained in
this Section 5.2.4 is intended
to expand the rights of Borrower contained in Section 5.2.10(d)
hereof.

5.2.5       Debt
Cancellation. 
Borrower shall not cancel or otherwise forgive or release any claim or
debt (other than termination of Leases in accordance herewith) owed to Borrower
by any Person, except for adequate consideration and in the ordinary course of
Borrower’s business.

5.2.6       Zoning.  Borrower shall not initiate or consent to any
zoning reclassification of any portion of the Property or seek any variance
under any existing zoning ordinance or use or permit the use of any portion of
the Property in any manner that could result in such use becoming a non-conforming
use under any zoning ordinance or any other applicable land use law, rule or
regulation, without the prior consent of Lender.

5.2.7       Intentionally
Omitted.

5.2.8       Intentionally
Omitted.

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5.2.9       ERISA.  (a) Borrower shall not engage in any
transaction which would cause any obligation, or action taken or to be taken,
hereunder (or the exercise by Lender of any of its rights under the Note, this
Agreement or the other Loan Documents) to be a non-exempt (under a statutory or
administrative class exemption) prohibited transaction under ERISA.

(b)           During
the term of the Loan or any obligation or right hereunder, Borrower  shall not be a Plan and none of the assets of
Borrower shall constitute of a Plan within the meaning of Section 29C.F.R.
§2510.3-101, as modified by Section 3(42) of ERISA.  Borrower further covenants and agrees to
deliver to Lender such certifications or other evidence from time to time
throughout the term of the Loan, as requested by Lender in its sole discretion,
that (i) Borrower is not a Plan, or a “governmental plan” within the
meaning of Section 3(32) of ERISA; (ii) Borrower is not subject to
any state statute regulating investments of, or fiduciary obligations with
respect to, governmental plans; and (iii) one or more of the following
circumstances is true:

(i)          Equity interests in
Borrower are publicly offered securities, within the meaning of 29 C.F.R.
§2510.3-101(b)(2);

(ii)         None of the assets of
the Borrower are, with the application of 29 C.F.R. §2510.3-101, as
modified by Section 3(42) of ERISA, regarded as assets of any Plan; or

(iii)        Borrower qualifies as
an “operating company” or a “real estate operating company” within the meaning
of 29 C.F.R. §2510.3-101(c) or (e).

(c)           “Plan”
shall mean an employee benefit plan (as defined in Section 3(3) of ERISA)
subject to Title I of ERISA or a plan or another arrangement (within the
meaning of Section 4975 of the Internal Revenue Code of 1986, as amended, and
the related Treasury Department regulations, including temporary regulations),
subject to Section 4975 of the Code.

5.2.10     Transfers.  (a) Borrower acknowledges that Lender has
examined and relied on the experience of Borrower and its stockholders, general
partners, members, principals and (if Borrower is a trust) beneficial owners in
owning and operating properties such as the Property in agreeing to make the
Loan, and will continue to rely on Borrower’s ownership of the Property as a
means of maintaining the value of the Property as security for repayment of the
Debt and the performance of the Other Obligations.  Borrower acknowledges that Lender has a valid
interest in maintaining the value of the Property so as to ensure that, should
Borrower default in the repayment of the Debt or the performance of the Other
Obligations, Lender can recover the Debt by a sale of the Property.

(b)           Without
the prior written consent of Lender, and except to the extent otherwise set
forth in this Section 5.2.10,
Borrower shall not, and shall not permit any Restricted Party do any of the
following (collectively, a “Transfer”): (i) sell, convey, mortgage, grant, bargain,
encumber, pledge, assign, grant options with respect to, or otherwise transfer
or dispose of (directly or indirectly, voluntarily or involuntarily, by
operation of law or otherwise, and whether or not for consideration or of
record) the Property or any part thereof or any legal or

 57
 

 

beneficial interest therein or (ii) permit a Sale or Pledge of an
interest in any Restricted Party, other than pursuant to Leases of space in the
Improvements to tenants in accordance with the provisions of Section 5.1.20.

(c)           A
Transfer shall include, but not be limited to, (i) an installment sales
agreement wherein Borrower agrees to sell the Property or any part thereof for
a price to be paid in installments; (ii) an agreement by Borrower leasing
all or a substantial part of the Property for other than actual occupancy by a
space tenant thereunder or a sale, assignment or other transfer of, or the
grant of a security interest in, Borrower’s right, title and interest in and to
any Leases or any Rents; (iii) if a Restricted Party is a corporation, any
merger, consolidation or Sale or Pledge of such corporation’s stock or the
creation or issuance of new stock; (iv) if a Restricted Party is a limited
or general partnership or joint venture, any merger or consolidation or the
change, removal, resignation or addition of a general partner or the Sale or
Pledge of the partnership interest of any general partner or any profits or
proceeds relating to such partnership interest, or the Sale or Pledge of
limited partnership interests or any profits or proceeds relating to such
limited partnership interest or the creation or issuance of new limited
partnership interests; (v) if a Restricted Party is a limited liability
company, any merger or consolidation or the change, removal, resignation or
addition of a managing member or non-member manager (or if no managing
member, any member) or the Sale or Pledge of the membership interest of a
managing member (or if no managing member, any member) or any profits or
proceeds relating to such membership interest, or the Sale or Pledge of non-managing
membership interests or the creation or issuance of new non-managing
membership interests; (vi) if a Restricted Party is a trust or nominee
trust, any merger, consolidation or the Sale or Pledge of the legal or
beneficial interest in a Restricted Party or the creation or issuance of new
legal or beneficial interests; or (vii) the removal or the resignation of
the managing agent (including, without limitation, an Affiliated Manager) other
than in accordance with Section 5.1.22
hereof.

(d)           Notwithstanding
the provisions of this Section 5.2.10,
Lender’s consent shall not be required in connection with (i) one or a series
of Transfers, of up to forty-nine percent (49%) of the stock in a Restricted
Party, the limited partnership interests or non-managing membership interests
(as the case may be) in a Restricted Party, (ii) any transfer to Behringer
Harvard Funds or an Affiliate of Behringer Harvard Funds, (iii) any
transfer of an equity interest in Behringer Harvard Funds or any Affiliate
thereof or the issuance of additional equity interests in Behringer Holdings or
any Affiliate thereof, or (iv) intentionally omitted; provided, however, no
such Transfer shall result in the change of Control in Borrower, Guarantor or
Property Manager.  If after giving effect
to any such Transfer, more than forty-nine percent (49%) in the aggregate of
direct or indirect interests in a Restricted Party are owned by any Person and
its Affiliates that owned less than forty-nine percent (49%) direct or indirect
interest in such Restricted Party as of the Closing Date, Borrower shall, no
less than thirty (30) days prior to the effective date of any such Transfer,
deliver to Lender an Additional Insolvency Opinion acceptable to Lender and the
Rating Agencies.  In addition,
notwithstanding anything to the contrary herein, as a condition to any Transfer
pursuant to this Section 5.2.10(d), at all times, Guarantor must continue to
Control Borrower and own, directly or indirectly, at least a 51% legal and
beneficial interest in Borrower.

(e)           No
consent to any assumption of the Loan shall occur on or before the first (1st) anniversary of the first (1st) Payment Date. Thereafter,
Lender’s consent to Transfers of the

 58
 

 

Property shall not be unreasonably withheld provided that Lender
receives sixty (60) days prior written notice of such Transfer and no Event of
Default has occurred and is continuing, and further provided that the following
additional requirements are satisfied:

(i)          Borrower shall pay
Lender a transfer fee equal to one-quarter of one percent (0.25%) of the
outstanding principal balance of the Loan at the time of the first such
transfer and a transfer fee equal to one-half of one percent (0.5%) of the
outstanding principal balance of the Loan at the time of each subsequent
transfer (provided that no transfer fee shall be payable in connection with any
transfer to Behringer Harvard Funds or an Affiliate of Behringer Harvard
Funds);

(ii)         Borrower shall pay
any and all reasonable out-of-pocket costs incurred in connection with such
Transfer (including, without limitation, Lender’s counsel fees and
disbursements and all recording fees, title insurance premiums and mortgage and
intangible taxes and the fees and expenses of the Rating Agencies pursuant to
clause (x) below);

(iii)        The proposed
transferee (the “Transferee”)
or Transferee’s Principals must have demonstrated expertise in owning and
operating properties similar in location, size, class and operation to the
Property, which expertise shall be reasonably determined by Lender;

(iv)        Transferee and
Transferee’s Principals shall, as of the date of such transfer, have an
aggregate net worth and liquidity reasonably acceptable to Lender;

(v)         Transferee, Transferee’s
Principals and all other entities which may be owned or Controlled directly or
indirectly by Transferee’s Principals (“Related Entities”) must not have
been party to any bankruptcy proceedings, voluntary or involuntary, made an
assignment for the benefit of creditors or taken advantage of any insolvency act,
or any act for the benefit of debtors within seven (7) years prior to the
date of the proposed Transfer;

(vi)        Transferee shall
assume all of the obligations of Borrower under the Loan Documents in a manner
satisfactory to Lender in all respects, including, without limitation, by
entering into an assumption agreement in form and substance satisfactory to
Lender;

(vii)       There shall be no
material litigation or regulatory action pending or threatened against
Transferee, Transferee’s Principals or Related Entities which is not reasonably
acceptable to Lender;

(viii)      Transferee, Transferee’s
Principals and Related Entities shall not have defaulted under its or their
obligations with respect to any other Indebtedness in a manner which is not
reasonably acceptable to Lender;

(ix)         Transferee and
Transferee’s Principals must be able to satisfy all the representations and
covenants set forth in Sections 4.1.30
and 5.2.9 of this

 59
 

 

Agreement, no
Default or Event of Default shall otherwise occur as a result of such Transfer,
and Transferee and Transferee’s Principals shall deliver (A) all
organizational documentation reasonably requested by Lender, which shall be
reasonably satisfactory to Lender and (B) all certificates, agreements and
covenants reasonably required by Lender;

(x)          Transferee shall be
approved by the Rating Agencies selected by Lender, which approval, if required
by Lender, shall take the form of a confirmation in writing from such Rating
Agencies to the effect that such Transfer will not result in a requalification,
reduction, downgrade or withdrawal of the ratings in effect immediately prior
to such assumption or transfer for the Securities or any class thereof issued
in connection with a Securitization which are then outstanding;

(xi)         Borrower or Transferee,
at its sole cost and expense, shall deliver to Lender an Additional Insolvency
Opinion reflecting such Transfer satisfactory in form and substance to Lender;

(xii)        Prior to any release
of Guarantor, one (1) or more substitute guarantors reasonably acceptable to
Lender shall have assumed all of the liabilities and obligations of Guarantor
under the Guaranty and Environmental Indemnity executed by Guarantor or execute
a replacement guaranty, environmental indemnity reasonably satisfactory to
Lender;

(xiii)       Borrower or
Transferee shall deliver, at its sole cost and expense, an endorsement to the
Title Insurance Policy, as modified by the assumption agreement, as a valid
first lien on the Property and naming the Transferee as owner of the Property,
which endorsement shall insure that, as of the date of the recording of the
assumption agreement, the Property shall not be subject to any additional
exceptions or liens other than those contained in the Title Policy issued on
the date hereof and other Permitted Encumbrances;

(xiv)      The Property shall be
managed by a Qualifying Property Manager pursuant to a Replacement Management
Agreement; and

(xv)       The Transfer must be
permitted under the Ground Lease or consented to by the landlord under the
Ground Lease and Lender shall have received evidence of such permission or
approval, as applicable, which evidence shall be reasonably satisfactory to
Lender.

Immediately upon a
Transfer to such Transferee and the satisfaction of all of the above
requirements, the named Borrower and Guarantor herein shall be released from
all liability under this Agreement, the Note, the Security Instrument and the
other Loan Documents accruing after such Transfer.  The foregoing release shall be effective upon
the date of such Transfer, but Lender agrees to provide written evidence
thereof reasonably requested by Borrower.

(f)            Borrower,
without the consent of Lender, may grant easements, restrictions, covenants,
reservations and rights of way in the ordinary course of business for

 60
 

 

water and sewer lines, telephone and telegraph lines, electric lines
and other utilities or for other similar purposes, provided that no transfer,
conveyance or encumbrance shall materially impair the utility and operation of
the Property or materially adversely affect the value of the Property or the
Net Operating Income of the Property.  If
Borrower shall receive any consideration in connection with any of said
described transfers or conveyances, Borrower shall have the right to use any
such proceeds in connection with any alterations performed in connection
therewith, or required thereby.  In
connection with any transfer, conveyance or encumbrance permitted above, the
Lender shall execute and deliver any instrument reasonably necessary or
appropriate to evidence its consent to said action or to subordinate the Lien
of the related Security Instrument to such easements, restrictions, covenants,
reservations and rights of way or other similar grants upon receipt by the
Lender of: (A) a copy of the instrument of transfer; and (B) an Officer’s
Certificate stating with respect to any transfer described above, that such
transfer does not materially impair the utility and operation of the Property
or materially reduce the value of the Property or the Net Operating Income of the
Property.

(g)           Lender
shall not be required to demonstrate any actual impairment of its security or
any increased risk of default hereunder in order to declare the Debt
immediately due and payable upon Borrower’s Transfer without Lender’s
consent.  This provision shall apply to
every Transfer regardless of whether voluntary or not, or whether or not Lender
has consented to any previous Transfer.

(i)          Intentionally
Omitted.

VI.                                INSURANCE;
CASUALTY; CONDEMNATION

Section 6.1            Insurance.
(a)        (a) Borrower shall obtain
and maintain, or cause to be maintained, insurance for Borrower and the
Property providing at least the following coverages:

(i)    comprehensive all risk
insurance (“Special
Form”) including, but not limited to, loss caused by any type of
windstorm or hail on the Improvements and the Personal Property, (A) in an
amount equal to one hundred percent (100%) of the “Full Replacement Cost,” which
for purposes of this Agreement shall mean actual replacement value (exclusive
of costs of excavations, foundations, underground utilities and footings) with
a waiver of depreciation; (B) containing an agreed amount endorsement with
respect to the Improvements and Personal Property waiving all co-insurance
provisions; (C) providing for no deductible in excess of One Hundred
Thousand and No/100 Dollars ($100,000) for all such insurance coverage
excluding windstorm and earthquake and (D)  containing an “Ordinance or
Law Coverage” or “Enforcement” endorsement if any of the Improvements or the
use of the Property shall at any time constitute legal non-conforming
structures or uses.  In addition,
Borrower shall obtain:  (y) if any
portion of the Improvements is currently or at any time in the future located
in a “special flood hazard area,” as designated by the Federal Emergency
Management Agency or such other applicable federal agency, flood hazard
insurance in an amount equal to the maximum amount available under the national
flood insurance program and in addition to the maximum available under the
national flood program, any excess limits as determined by Lender in its sole
and absolute

 61
 

 

discretion;
and (z) earthquake insurance in amounts and in form and substance
satisfactory to Lender in the event the Property is located in an area with a
high degree of seismic activity, with a probable maximum loss exceeding twenty
percent (20%), provided that the insurance pursuant to clauses (y) and (z)
hereof shall be on terms consistent with the comprehensive all risk insurance
policy required under this subsection (i).

(ii)         business income
insurance (A) with loss payable to Lender; (B) covering all risks
required to be covered by the insurance provided for in subsection (i) above; (C) in an
amount equal to one hundred percent (100%) of the projected gross revenues from
the operation of the Property (as reduced to reflect expenses not incurred
during a period of Restoration) for a period of at least eighteen (18) months
after the date of the Casualty; and (D) containing an extended period of
indemnity endorsement which provides that after the physical loss to the
Improvements and Personal Property has been repaired, the continued loss of
income will be insured until such income either returns to the same level it
was at prior to the loss, or the expiration of twelve (12) months from the date
that the Property is repaired or replaced and operations are resumed, whichever
first occurs, and notwithstanding that the policy may expire prior to the end
of such period.  The amount of such
business income insurance shall be determined prior to the Closing Date and at
least once each year thereafter based on Borrower’s reasonable estimate of the
gross income from the Property for the succeeding eighteen (18) month
period.  All proceeds payable to Lender
pursuant to this subsection shall be held by Lender and shall be applied to the
obligations secured by the Loan Documents from time to time due and payable
hereunder and under the Note; provided, however,
that nothing herein contained shall be deemed to relieve Borrower of its
obligations to pay the obligations secured by the Loan Documents on the
respective dates of payment provided for in this Agreement and the other Loan
Documents except to the extent such amounts are actually paid out of the
proceeds of such business income insurance;

(iii)        at all times during
which structural construction, repairs or alterations are being made with
respect to the Improvements, and only if the Property coverage form does not
otherwise apply, (A) owner’s contingent or protective liability insurance,
otherwise known as Owner Contractor’s Protective Liability, covering claims not
covered by or under the terms or provisions of the above mentioned commercial
general liability insurance policy; and (B) the insurance provided for in subsection (i) above written in a so-called
builder’s risk completed value form (1) on a non-reporting basis,
(2) against all risks insured against pursuant to subsection (i) above,
(3) including permission to occupy the Property, and (4) with an
agreed amount endorsement waiving co-insurance provisions;

(iv)        comprehensive boiler
and machinery insurance, if applicable, in amounts as shall be reasonably
required by Lender on terms consistent with the commercial property insurance
policy required under subsection (i)
above;

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(v)         commercial general
liability insurance against claims for personal injury, bodily injury, death or
property damage occurring upon, in or about the Property, such insurance
(A) to be on the so-called “occurrence” form with a combined limit of not
less than Two Million and 00/100 Dollars ($2,000,000.00) in the aggregate and
One Million and 00/100 Dollars ($1,000,000.00) per occurrence; (B) to
continue at not less than the aforesaid limit until required to be changed by
Lender in writing by reason of changed economic conditions making such
protection inadequate and (C) to cover at least the following
hazards:  (1) premises and
operations; (2) products and completed operations on an “if any” basis;
(3) independent contractors; (4) blanket contractual liability for
all written contracts and (5) contractual liability covering the
indemnities contained in Article 9 of the Security Instrument to the extent the
same is available;

(vi)        automobile liability
coverage for all owned and non-owned vehicles, including rented and leased vehicles
containing minimum limits per occurrence of One Million Dollars and 00/100
Dollars ($1,000,000.00);

(vii)       worker’s compensation
and employee’s liability subject to the worker’s compensation laws of the
applicable state;

(viii)      umbrella and excess
liability insurance in an amount not less than Fifty Million and 00/100 Dollars
($50,000,000.00) per occurrence on terms consistent with the commercial general
liability insurance policy required under subsection (v)
above, including, but not limited to, supplemental coverage for employer
liability and automobile liability, which umbrella liability coverage shall
apply in excess of the automobile liability coverage in clause (vi) above;

(ix)         the insurance
required under Section 6.1(a)(i) and (ii) above shall cover perils of terrorism
and acts of terrorism and Borrower shall maintain insurance for loss resulting
from perils and acts of terrorism on terms (including amounts) consistent with
those required under Section 6.1(a)(i) and (ii) above at all times during the
term of the Loan; provided, however, Borrower shall not be required to pay
annual premiums in excess of amounts that are then commercially reasonable,
based on properties of the same general type, size and location, for the
coverage required under this Section 6.1.1(a)(ix).  If full coverage for acts of terrorism
satisfying such requirements is not available for an amount equal to or less
than what is then commercially reasonable (but coverage for acts of terrorism
not fully satisfying such requirements is available), Borrower shall be
required to spend an amount equal to an amount which is agreed by Lender to be
a commercially reasonable amount for coverage for acts of terrorism, and the
scope, form, deductible and carrier with respect to such coverage shall be
acceptable to Lender in its commercially reasonable discretion; and

(x)          upon sixty (60)
days written notice, such other reasonable insurance and in such reasonable
amounts as Lender from time to time may reasonably request against such other
insurable hazards which at the time are commonly

 63
 

 

insured
against for property similar to the Property located in or around the region in
which the Property is located.

(b)           All
insurance provided for in Section 6.1(a)
shall be obtained under valid and enforceable policies (collectively, the “Policies”
or in the singular, the “Policy”), and shall be subject to the approval of Lender as
to insurance companies, amounts, deductibles, loss payees and insureds.  The Policies shall be issued by financially
sound and responsible insurance companies authorized to do business in the
State and having a claims paying ability rating of “A” or better (and the
equivalent thereof) by at least two (2) of the Rating Agencies rating the
Securities (one (1) of which shall be S&P if they are rating the Securities
and one (1) of which will be Moody’s if they are rating the Securities), or if
only one (1) Rating Agency is rating the Securities, then only by such Rating
Agency.  The Policies described in Section 6.1 (other than those strictly
limited to liability protection) shall designate Lender as loss payee.  Not less than thirty (30) days prior to
the expiration dates of the Policies theretofore furnished to Lender,
certificates of insurance evidencing the Policies accompanied by evidence
satisfactory to Lender of payment of the premiums due thereunder (the “Insurance Premiums”),
shall be delivered by Borrower to Lender.

(c)           Any
blanket insurance Policy shall specifically allocate to the Property the amount
of coverage from time to time required hereunder and shall otherwise provide
the same protection as would a separate Policy insuring only the Property in
compliance with the provisions of Section 6.1(a).

(d)           All
Policies of insurance provided for or contemplated by Section 6.1(a), except for the Policy
referenced in Section 6.1(a)(vii)
of this Agreement, shall name Borrower, or the Tenant, as the insured and
Lender as the additional insured, as its interests may appear, and in the case
of property damage, boiler and machinery, flood and earthquake insurance, shall
contain a so-called New York standard non-contributing mortgagee clause in
favor of Lender providing that the loss thereunder shall be payable to Lender.

(e)           All
Policies of insurance provided for in Section 6.1(a) shall contain clauses or
endorsements to the effect that:

(i)          no act or negligence
of Borrower, or anyone acting for Borrower, or of any Tenant or other occupant,
or failure to comply with the provisions of any Policy, which might otherwise
result in a forfeiture of the insurance or any part thereof, shall in any way
affect the validity or enforceability of the insurance insofar as Lender is
concerned;

(ii)         the Policy shall not
be materially changed (other than to increase the coverage provided thereby) or
canceled without at least thirty (30) days written notice to Lender and
any other party named therein as an additional insured;

(iii)        the issuers thereof
shall give written notice to Lender if the Policy has not been renewed
fifteen (15) days prior to its expiration; and

(iv)        Lender shall not be
liable for any Insurance Premiums thereon or subject to any assessments
thereunder.

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(f)            If
at any time Lender is not in receipt of written evidence that all insurance
required hereunder is in full force and effect, Lender shall have the right,
without notice to Borrower, to take such action as Lender deems necessary to
protect its interest in the Property, including, without limitation, the
obtaining of such insurance coverage as Lender in its reasonable discretion
deems appropriate after three (3) Business Days notice to Borrower if prior to
the date upon which any such coverage will lapse or at any time Lender deems
necessary (regardless of prior notice to Borrower) to avoid the lapse of any
such coverage.  All premiums incurred by
Lender in connection with such action or in obtaining such insurance and
keeping it in effect shall be paid by Borrower to Lender upon demand and, until
paid, shall be secured by the Security Instrument and shall bear interest at
the Default Rate.  If Borrower fails in
so insuring the Property or in so assigning and delivering the Policy, Lender
may, at its option, obtain such insurance using such carriers and agencies as
Lender shall elect from year to year and pay the premiums therefor, and Borrower
will reimburse Lender for any premium so paid, with interest thereon as stated
in the Note from the time of payment, on demand, and the amount so owing to
Lender shall be secured by the Security Instrument.  The insurance obtained by Lender may, but need
not, protect Borrower’s interest and the coverage that Lender purchases may not
pay any claim that Borrower makes or any claim that is made against Borrower in
connection with the Property.

Section 6.2            Casualty.  If the Property shall be damaged or destroyed,
in whole or in part, by fire or other casualty (a “Casualty”), Borrower (a) shall
give to Lender prompt notice of such damage reasonably estimated by Borrower to
cost more than Two Hundred Thousand Dollars ($200,000.00) to repair, and (b)
shall promptly commence and diligently prosecute the completion of the
Restoration of the Property pursuant to Section 6.4
hereof as nearly as possible to the condition the Property was in immediately
prior to such Casualty, with such alterations as may be reasonably approved by
Lender and otherwise in accordance with Section 6.4
hereof.  Borrower shall pay, or cause to
be paid, all costs of such Restoration whether or not such costs are covered by
insurance.  Lender may, but shall not be
obligated to make proof of loss if not made promptly by Borrower.  In addition, Lender may participate in any
settlement discussions with any insurance companies (and shall approve the
final settlement, which approval shall not be unreasonably withheld or delayed)
with respect to any Casualty in which the Net Proceeds or the costs of
completing the Restoration are equal to or greater than Two Hundred Thousand
and 00/100 Dollars ($200,000.00) and Borrower shall deliver to Lender all
instruments required by Lender to permit such participation.

Section 6.3            Condemnation.
Borrower shall promptly give Lender notice of the actual or threatened
commencement of any proceeding for the Condemnation of the Property upon
obtaining information of such proceeding and shall deliver to Lender copies of
any and all papers served in connection with such proceedings.  Lender may participate in any such
proceedings if an Event of Default exists or if the amount of the Award exceeds
three percent 3% of the outstanding principal balance of the Loan, and Borrower
shall from time to time deliver to Lender all instruments requested by it to
permit such participation.  Borrower
shall, at its expense, diligently prosecute any such proceedings, and shall
consult with Lender, its attorneys and experts, and cooperate with them in the
carrying on or defense of any such proceedings. 
Notwithstanding any taking by any public or quasi-public authority
through Condemnation or otherwise (including, but not limited to, any transfer
made in lieu of or in anticipation of the

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exercise of such taking), Borrower shall continue to pay the Debt at
the time and in the manner provided for its payment in the Note and in this
Agreement and the Debt shall not be reduced until any Award shall have been
actually received and applied by Lender, after the deduction of expenses of
collection, to the reduction or discharge of the Debt.  Lender shall not be limited to the interest
paid on the Award by the condemning authority but shall be entitled to receive
out of the Award interest at the rate or rates provided herein or in the
Note.  If the Property or any portion
thereof is taken by a condemning authority, Borrower shall promptly commence
and diligently prosecute the Restoration of the Property or any portion thereof
pursuant to Section 6.4 hereof
and otherwise comply with the provisions of Section 6.4
hereof.  If the Property is sold, through
foreclosure or otherwise, prior to the receipt by Lender of the Award, Lender
shall have the right, whether or not a deficiency judgment on the Note shall
have been sought, recovered or denied, to receive the Award, or a portion
thereof sufficient to pay the Debt.

Section 6.4            Restoration.
 The following provisions shall apply in
connection with the Restoration of the Property:

(a)           If
the Net Proceeds shall be less than the Relevant Restoration Threshold and the
costs of completing the Restoration shall be less than the Relevant Restoration
Threshold, the Net Proceeds will be disbursed by Lender to Borrower upon
receipt, provided that all of the conditions set forth in Section 6.4(b)(i) below are met and
Borrower delivers to Lender a written undertaking to expeditiously commence and
to satisfactorily complete with due diligence the Restoration in accordance
with the terms of this Agreement.

(b)           If
the Net Proceeds are equal to or greater than the Relevant Restoration
Threshold or the costs of completing the Restoration is equal to or greater
than the Relevant Restoration Threshold, then in either case Lender shall make
the Net Proceeds available for the Restoration in accordance with the
provisions of this Section 6.4(b).  The term “Net Proceeds” for purposes of
this Section 6.4 shall
mean:  (x) the net amount of all
insurance proceeds received by Lender pursuant to Section 6.1
(a)(i), (iv), (ix) and (x) as a result of such damage or
destruction, after deduction of its reasonable costs and expenses (including,
but not limited to, reasonable counsel fees), if any, in collecting same (“Insurance Proceeds”),
or (y) the net amount of the Award, after deduction of its reasonable
costs and expenses (including, but not limited to, reasonable counsel fees), if
any, in collecting same (“Condemnation Proceeds”), whichever the case may be.

(i)          The Net Proceeds
shall be made available to Borrower for Restoration provided that each of the
following conditions are met:

(A)  no Event of Default shall
have occurred and be continuing;

(B)   (1) in the event the
Net Proceeds are Insurance Proceeds, less than twenty-five percent (25%) of the
total floor area of the Improvements on the Property has been damaged,
destroyed or rendered unusable as a result of such Casualty or (2) in the
event the Net Proceeds are Condemnation Proceeds, less than ten percent (10%)
of the land constituting the Property is taken, and such land is located along
the

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perimeter or
periphery of the Property, and no portion of the Improvements is located on
such land;

(C)   Leases demising in the
aggregate a percentage amount equal to or greater than the Rentable Space
Percentage of the total rentable space in the Property which has been demised
under executed and delivered Leases in effect as of the date of the occurrence
of such Casualty or Condemnation, whichever the case may be, and the Ground
Lease shall remain in full force and effect during and after the completion of
the Restoration, notwithstanding the occurrence of any such Casualty or
Condemnation, whichever the case may be, and Borrower and/or Tenant, as
applicable under the respective Lease, will make all necessary repairs and
restorations thereto at their sole cost and expense.  The term “Rentable Space Percentage” shall
mean a percentage amount equal to sixty-five percent (65%);

(D)  Borrower shall commence the
Restoration as soon as reasonably practicable (but in no event later than one
hundred twenty (120) days after such Casualty or Condemnation or obtaining
building permits, whichever the case may be, occurs) and shall diligently
pursue the same to satisfactory completion;

(E)   Lender shall be satisfied
that any operating deficits, including all scheduled payments of principal and
interest under the Note, which will be incurred with respect to the Property as
a result of the occurrence of any such Casualty or Condemnation, whichever the
case may be, will be covered out of (1) the Net Proceeds, (2) the insurance
coverage referred to in Section 6.1(a)(ii)
hereof, if applicable, or (3) by other funds of Borrower;

(F)   Lender shall be satisfied
that the Restoration will be completed on or before the earliest to occur of
(1) six (6) months prior to the Maturity Date, (2) the earliest date
required for such completion under the terms of any Leases, including the
Ground Lease, (3) such time as may be required under all applicable Legal
Requirements in order to repair and restore the Property to the condition it was
in immediately prior to such Casualty or to as nearly as possible the condition
it was in immediately prior to such Condemnation, as applicable, or
(4) the expiration of the insurance coverage referred to in Section 6.1(a)(ii) hereof;

(G)   the Property and the use
thereof after the Restoration will be in compliance with and permitted under
all applicable Legal Requirements and the Ground Lease;

(H)  the Restoration shall be done
and completed by Borrower in an expeditious and diligent fashion and in compliance
with all applicable Legal Requirements and the Ground Lease;

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(I)    such
Casualty or Condemnation, as applicable, does not result in the loss of access
to the Property or the Improvements;

(J)    the
Debt Service Coverage Ratio for the Property, after giving effect to the
Restoration, shall be equal to or greater than 1.30 to 1.0;

(K)  Borrower
shall deliver, or cause to be delivered, to Lender a signed detailed budget
approved in writing by Borrower’s architect or engineer stating the entire cost
of completing the Restoration, which budget shall be approved by Lender, which
approval shall not be unreasonably withheld; and

(L)   the
Net Proceeds together with any cash or cash equivalent deposited by Borrower
with Lender are sufficient in Lender’s discretion to cover the cost of the
Restoration.

(ii)         The
Net Proceeds shall be held by Lender in an interest-bearing account and, until
disbursed in accordance with the provisions of this Section 6.4(b), shall constitute
additional security for the Debt and Other Obligations under the Loan
Documents.  The Net Proceeds shall be
disbursed by Lender to, or as directed by, Borrower from time to time during
the course of the Restoration, upon receipt of evidence satisfactory to Lender
that (A) all materials installed and work and labor performed (except to
the extent that they are to be paid for out of the requested disbursement) in
connection with the Restoration have been paid for in full or will be paid in
full upon such disbursement, and (B) there exist no notices of pendency,
stop orders, mechanic’s or materialman’s liens or notices of intention to file
same, or any other liens or encumbrances of any nature whatsoever on the
Property which have not either been fully bonded to the satisfaction of Lender
and discharged of record or in the alternative fully insured to the
satisfaction of Lender by the title company issuing the Title Insurance Policy.

(iii)        All
plans and specifications required in connection with the Restoration, the cost
of which exceeds the Relevant Restoration Threshold, shall be subject to prior
review and acceptance in all respects by Lender and by an independent
consulting engineer selected by Lender (the “Casualty Consultant”), such
review and acceptance not to be unreasonably withheld or delayed.  Lender shall have the use of the plans and
specifications and all permits, licenses and approvals required or obtained in
connection with the Restoration.  The
identity of the contractors, subcontractors and materialmen engaged in the
Restoration, as well as the contracts under which they have been engaged, shall
be subject to prior review and acceptance by Lender and the Casualty
Consultant, such review and acceptance not to be unreasonably withheld or
delayed.  All costs and expenses incurred
by Lender in connection with making the Net Proceeds available for the
Restoration including, without limitation, reasonable counsel fees and
disbursements and the Casualty Consultant’s fees, shall be paid by Borrower.

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(iv)        In
no event shall Lender be obligated to make disbursements of the Net Proceeds in
excess of an amount equal to the costs actually incurred from time to time for
work in place as part of the Restoration, as certified by the Casualty
Consultant, minus the Casualty Retainage.  The term “Casualty Retainage” shall mean
an amount equal to ten percent (10%) of the costs actually incurred for work in
place as part of the Restoration, as certified by the Casualty Consultant,
until the Restoration has been completed. 
The Casualty Retainage shall in no event, and notwithstanding anything to
the contrary set forth above in this Section 6.4(b),
be less than the amount actually held back by Borrower from contractors,
subcontractors and materialmen engaged in the Restoration.  The Casualty Retainage shall not be released
until the Casualty Consultant certifies to Lender that the Restoration has been
completed in accordance with the provisions of this Section 6.4(b) and that all approvals
necessary for the re-occupancy and use of the Property have been obtained from
all appropriate governmental and quasi-governmental authorities, and Lender
receives evidence satisfactory to Lender that the costs of the Restoration have
been paid in full or will be paid in full out of the Casualty Retainage;
provided, however, that Lender will release the portion of the Casualty
Retainage being held with respect to any contractor, subcontractor or
materialman engaged in the Restoration as of the date upon which the Casualty
Consultant certifies to Lender that the contractor, subcontractor or
materialman has satisfactorily completed all work and has supplied all
materials in accordance with the provisions of the contractor’s, subcontractor’s
or materialman’s contract, the contractor, subcontractor or materialman
delivers the lien waivers and evidence of payment in full of all sums due to
the contractor, subcontractor or materialman as may be reasonably requested by
Lender or by the title company issuing the Title Insurance Policy, and Lender
receives an endorsement to the Title Insurance Policy insuring the continued
priority of the lien of the Security Instrument and evidence of payment of any
premium payable for such endorsement.  If
required by Lender, the release of any such portion of the Casualty Retainage
shall be approved by the surety company, if any, which has issued a payment or
performance bond with respect to the contractor, subcontractor or materialman.

(v)         Lender
shall not be obligated to make disbursements of the Net Proceeds more
frequently than once every calendar month.

(vi)        If
at any time the Net Proceeds or the undisbursed balance thereof shall not, in
the reasonable opinion of Lender in consultation with the Casualty Consultant,
be sufficient to pay in full the balance of the costs which are estimated by
the Casualty Consultant to be incurred in connection with the completion of the
Restoration, Borrower shall deposit the deficiency (the “Net Proceeds
Deficiency”) with Lender before any further disbursement of the Net
Proceeds shall be made.  The Net Proceeds
Deficiency deposited with Lender shall be held by Lender and shall be disbursed
for costs actually incurred in connection with the Restoration on the same
conditions applicable to the disbursement of the Net Proceeds, and until so
disbursed pursuant to this

 69
 

 

Section 6.4(b)
shall constitute additional security for the Debt and Other Obligations under
the Loan Documents.

(vii)       The
excess, if any, of the Net Proceeds (and the remaining balance, if any, of the
Net Proceeds Deficiency) deposited with Lender after the Casualty Consultant
certifies to Lender that the Restoration has been completed in accordance with
the provisions of this Section 6.4(b),
and the receipt by Lender of evidence satisfactory to Lender that all costs
incurred in connection with the Restoration have been paid in full, shall be
remitted by Lender to Borrower, provided no Event of Default shall have
occurred and shall be continuing under the Note, this Agreement or any of the
other Loan Documents.

(c)           All Net Proceeds not required (i) to be made
available for the Restoration or (ii) to be returned to Borrower as excess
Net Proceeds pursuant to Section 6.4(b)(vii)
may be retained and applied by Lender toward the payment of the Debt whether or
not then due and payable in such order, priority and proportions as Lender in
its sole discretion shall deem proper (provided no Event of Default exists,
Borrower shall not be required to pay any prepayment consideration in
connection with such payment), or, at the discretion of Lender, the same may be
paid, either in whole or in part, to Borrower for such purposes as Lender shall
designate, in its discretion.

(d)           In the event of foreclosure of the Security Instrument, or
other transfer of title to the Property in extinguishment in whole or in part
of the Debt all right, title and interest of Borrower in and to the Policies
that are not blanket Policies then in force concerning the Property and all
proceeds payable thereunder shall thereupon vest in the purchaser at such
foreclosure or Lender or other transferee in the event of such other transfer
of title.

(e)           Lender shall with reasonable promptness following any
Casualty or Condemnation notify Borrower whether or not Net Proceeds are
required to be made available to Borrower for restoration pursuant to this
Section 6.4.  All Net Proceeds not required
to be made available for Restoration shall be retained and applied by Lender in
accordance with Section 2.4.2 hereof (a “Net
Proceeds Prepayment”).   If
such Net Proceeds Prepayment shall be equal to or greater than Five Million and
00/100 Dollars ($5,000,000.00), Borrower shall have the right to elect to
prepay the outstanding principal balance of the Loan (less the Net Proceeds
Prepayment) for the Property (a “Casualty/Condemnation
Prepayment”) without payment of the Yield Maintenance Premium upon
satisfaction of the following conditions: 
(i) within thirty (30) days following the date of the Net Proceeds
Prepayment, Borrower shall provide Lender with written notice of Borrower’s
intention to pay the Note in full (with a credit for the amount of the Net
Proceeds Prepayment), (ii) Borrower shall prepay the Note in such amount on or
before the third (3rd) Payment Date occurring following the date of the Net
Proceeds Prepayment (provided that if any such prepayment is made on a date
other than a Payment Date, Borrower shall pay Lender all interest which would
have accrued on the amount being prepaid through the next Payment Date), and
(iii) no Event of Default shall exist on the date of such Casualty/Condemnation
Prepayment.  Notwithstanding anything in
Section 6.2 or Section 6.3 to the contrary, Borrower shall have no obligation
to commence Restoration of the Property upon delivery of the written notice set
forth in clause (i) of the preceding sentence (unless Borrower subsequently
shall fail to satisfy the requirement of clause (ii) of the preceding
sentence).

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VII.                            RESERVE
FUNDS

Section
7.1            Property Reserve Funds.
Borrower shall pay to Lender on the date hereof the
sum of $1,000,000.00 (the “Property Reserve Deposit”) for Replacements and the repairs
set forth on Schedule III hereto
(such repairs hereinafter referred to as “Required Repairs”).  Amounts so deposited shall hereinafter be
referred to as Borrower’s “Property Reserve Funds” and the account in which such
amounts are held shall hereinafter be referred to as Borrower’s “Property Reserve Account”.   The Property Reserve Funds shall be
disbursed in accordance with the mechanisms for disbursements under the
Replacement Reserve Funds.

Section
7.2            Tax and Insurance Escrow
Funds. Borrower shall pay to Lender on each
Payment Date (a) one-twelfth (1/12) of the Taxes that Lender estimates
will be payable during the next ensuing twelve (12) months in order to
accumulate with Lender sufficient funds to pay all such Taxes at least
thirty (30) days prior to their respective due dates, and (b) one-twelfth
(1/12) of the Insurance Premiums that Lender estimates will be payable for the
renewal of the coverage afforded by the Policies upon the expiration thereof in
order to accumulate with Lender sufficient funds to pay all such Insurance
Premiums at least thirty (30) days prior to the expiration of the Policies
(said amounts in (a) and (b) above are hereinafter called the “Tax and Insurance
Escrow Funds”).  The Tax and
Insurance Escrow Funds and the Monthly Debt Service Payment Amount, shall be
added together and shall be paid as an aggregate sum by Borrower to
Lender.  Lender will apply the Tax and
Insurance Escrow Funds to payments of Taxes and Insurance Premiums required to
be made by Borrower pursuant to this Agreement
and under the Security Instrument.  In
making any payment relating to the Tax and Insurance Escrow Funds, Lender may
do so according to any bill, statement or estimate procured from the
appropriate public office (with respect to Taxes) or insurer or agent (with
respect to Insurance Premiums) or from Borrower without inquiry into the
accuracy of such bill, statement or estimate or into the validity of any tax,
assessment, sale, forfeiture, tax lien or title or claim thereof, provided,
however, Lender shall use reasonable efforts to pay such real property taxes
sufficiently early to obtain the benefit of any available discounts of which it
has knowledge.  If the amount of the Tax
and Insurance Escrow Funds shall exceed the amounts due for Taxes and Insurance
Premiums, Lender shall, in its sole discretion, return any excess to Borrower
or credit such excess against future payments to be made to the Tax and
Insurance Escrow Funds.  Any amount
remaining in the Tax and Insurance Escrow Funds after the Debt has been paid in
full shall be returned to Borrower.  In
allocating such excess, Lender may deal with the Person shown on the records of
Lender to be the owner of the Property. 
If at any time Lender reasonably determines that the Tax and Insurance
Escrow Funds are not or will not be sufficient to pay Taxes and Insurance
Premiums by the dates set forth above, Lender shall notify Borrower of such
determination and Borrower shall increase its monthly payments to Lender by the
amount that Lender estimates is sufficient to make up the deficiency at least
thirty (30) days prior to delinquency of the Taxes or Insurance
Premiums.  Notwithstanding anything to
the contrary contained herein, Borrower shall not be required to make monthly
deposits with respect to (a) and (b) above provided that: (i) no Event of Default
has occurred, and (ii) Borrower pays all Taxes prior to delinquency and
delivers to Lender evidence of such payment pursuant to Section 5.1.2
hereof (with respect to clause (a) above) and all Insurance Premiums for the
Policies required under Section 6.1(a) hereof without any lapse of coverage on
the Property (with respect to clause (b) above).

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Section
7.3            Replacements and
Replacement Reserve.

7.3.1       Replacement
Reserve Funds. 
Borrower shall pay to Lender on each Payment Date the sum of $6,670.00 (the
“Replacement
Reserve Monthly Deposit”) for replacements and repairs required to
be made to the Property during the calendar year (collectively, the “Replacements”).  Amounts so deposited shall hereinafter be
referred to as Borrower’s “Replacement Reserve Funds” and the account in which such
amounts are held shall hereinafter be referred to as Borrower’s “Replacement Reserve
Account”.  Notwithstanding the
foregoing, if the Replacement Reserve Funds shall at any time equal or exceed
$240,105.00 (the “Replacement Reserve Cap”),
then Borrower’s obligation to make the Replacement Reserve Monthly Deposit
shall be suspended until such time as the Replacement Reserve Funds are less
than the Replacement Reserve Cap.  Lender
may reassess its estimate of the amount necessary for the Replacement Reserve
Funds from time to time, and may increase the monthly amounts required to be
deposited into the Replacement Reserve Account upon thirty (30) days notice to
Borrower if Lender determines in its commercially reasonable discretion based
upon updated engineering reports or inspections of the Property that an
increase is necessary to maintain the proper maintenance and operation of the
Property.  Any amount held in the
Replacement Reserve Account and allocated for the Property shall be retained by
Lender and credited toward the future Replacement Reserves Monthly Deposits
required by Lender hereunder in the event the Property is released from the
Lien of the Security Instrument in accordance with Section 2.5
hereof.  Notwithstanding the foregoing,
Borrower’s obligation to make monthly deposits to the Replacement Reserve
Account shall be suspended provided that no Event of Default occurs.

7.3.2       Disbursements
from Replacement Reserve Account.  (a) 
Lender shall make disbursements from the Replacement Reserve Account to
pay Borrower only for the costs of the Replacements.  Lender shall not be obligated to make
disbursements from the Replacement Reserve Account to reimburse Borrower for
the costs of routine maintenance to the Property, replacements of inventory or
for costs which are to be reimbursed from the Rollover Reserve Account.

(b)           Lender shall, upon written request from Borrower and
satisfaction of the requirements set forth in this Section 7.3.2,
disburse to Borrower amounts from the Replacement Reserve Account necessary to
pay for the actual approved costs of Replacements or to reimburse Borrower
therefor, upon completion of such Replacements (or, upon partial completion in
the case of Replacements made pursuant to Section 7.3.2(e))
as determined by Lender.  In no event
shall Lender be obligated to disburse funds from the Replacement Reserve
Account if a Default or an Event of Default exists.

(c)           Each request for disbursement from the Replacement Reserve
Account shall be in a form specified or approved by Lender and shall specify
(i) the specific Replacements for which the disbursement is requested,
(ii) the quantity and price of each item purchased, if the Replacement
includes the purchase or replacement of specific items, (iii) the price of
all materials (grouped by type or category) used in any Replacement other than
the purchase or replacement of specific items, and (iv) the cost of all
contracted labor or other services applicable to each Replacement for which
such request for disbursement is made. 
With

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each request Borrower shall certify that all
Replacements have been made in accordance with all applicable Legal
Requirements of any Governmental Authority having jurisdiction over the
Property and, unless Lender has agreed to issue joint checks as described
below, each request shall include evidence of payment of all such amounts.  Each request for disbursement shall include
copies of invoices for all items or materials purchased and all contracted
labor or services provided.  Except as
provided in Section 7.3.2(e),
each request for disbursement from the Replacement Reserve Account shall be
made only after completion of the Replacement for which disbursement is
requested.  Borrower shall provide Lender
evidence of completion of the subject Replacement satisfactory to Lender in its
reasonable judgment.

(d)           Borrower shall pay all invoices in connection with the
Replacements with respect to which a disbursement is requested prior to
submitting such request for disbursement from the Replacement Reserve Account
or, at the request of Borrower, Lender will issue joint checks, payable to
Borrower and the contractor, supplier, materialman, mechanic, subcontractor or
other party to whom payment is due in connection with a Replacement.  In the case of payments made by joint check,
Lender may require a waiver of lien from each Person receiving payment prior to
Lender’s disbursement from the Replacement Reserve Account.  In addition, as a condition to any
disbursement, Lender may require Borrower to obtain lien waivers from each
contractor, supplier, materialman, mechanic or subcontractor who receives
payment in an amount equal to or greater than $100,000 for completion of its
work or delivery of its materials.  Any
lien waiver delivered hereunder shall conform to the requirements of applicable
law and shall cover all work performed and materials supplied (including
equipment and fixtures) for the Property by that contractor, supplier,
subcontractor, mechanic or materialman through the date covered by the current
reimbursement request (or, in the event that payment to such contractor,
supplier, subcontractor, mechanic or materialmen is to be made by a joint
check, the release of lien shall be effective through the date covered by the
previous release of funds request).

(e)           If (i) the cost of a Replacement exceeds $100,000,
(ii) the contractor performing such Replacement requires periodic payments
pursuant to terms of a written contract, and (iii) Lender has approved in
writing in advance such periodic payments, a request for reimbursement from the
Replacement Reserve Account may be made after completion of a portion of the
work under such contract, provided (A) such contract requires payment upon
completion of such portion of the work, (B) the materials for which the
request is made are on site at the Property and are properly secured or have
been installed in the Property, (C) all other conditions in this Agreement
for disbursement have been satisfied, (D) funds remaining in the Replacement
Reserve Account are, in Lender’s judgment, sufficient to complete such
Replacement and other Replacements when required, and (E) if required by
Lender, each contractor or subcontractor receiving payments under such contract
shall provide a waiver of lien with respect to amounts which have been paid to
that contractor or subcontractor.

(f)            Borrower shall not make a request for disbursement from
the Replacement Reserve Account more frequently than once in any calendar month
and (except in connection with the final disbursement) the total cost of all
Replacements in any request shall not be less than $15,000.00.

7.3.3       Performance
of Replacements. 
(a)  Borrower shall make
Replacements when required in order to keep the Property in condition and
repair

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consistent with other similar properties in the same market segment in
the metropolitan area in which the Property is located, and to keep the
Property or any portion thereof from deteriorating.  Borrower shall complete all Replacements in a
good and workmanlike manner as soon as practicable following the commencement
of making each such Replacement.

(b)           Lender reserves the right, at its option, to approve all
contracts or work orders with materialmen, mechanics, suppliers,
subcontractors, contractors or other parties providing labor or materials under
contracts for an amount in excess of $100,000 in connection with the
Replacements performed by Borrower.  Upon
Lender’s request, Borrower shall assign any contract or subcontract to Lender.

(c)           In the event Lender determines in its reasonable
discretion that any Replacement is not being performed in a workmanlike or
timely manner or that any Replacement has not been completed in a workmanlike
or timely manner, and such failure continues to exist for more than thirty (30)
days after notice from Lender to Borrower, Lender shall have the option, upon
ten (10) days notice to Borrower (except in the case of an emergency), to
withhold disbursement for such unsatisfactory Replacement and to proceed under
existing contracts or to contract with third parties to complete such
Replacement and to apply the Replacement Reserve Funds toward the labor and
materials necessary to complete such Replacement, and to exercise any and all
other remedies available to Lender upon an Event of Default hereunder.

(d)           In order to facilitate Lender’s completion or making of
the Replacements pursuant to Section 7.3.3(c)
above, Borrower grants Lender the right to enter onto the Property and perform
any and all work and labor necessary to complete or make the Replacements
and/or employ watchmen to protect the Property from damage, subject to the
rights of Tenants.  All sums so expended
by Lender, to the extent not from the Replacement Reserve Funds, shall be
deemed to have been advanced under the Loan to Borrower and secured by the
Security Instrument.  For this purpose
Borrower constitutes and appoints Lender its true and lawful attorney-in-fact
with full power of substitution to complete or undertake the Replacements in
the name of Borrower.  Such power of
attorney shall be deemed to be a power coupled with an interest and cannot be
revoked but shall only be effective following an Event of Default.  Borrower empowers said attorney-in-fact
as follows:  (i) to use any funds in
the Replacement Reserve Account for the purpose of making or completing the
Replacements; (ii) to make such additions, changes and corrections to the
Replacements as shall be necessary or desirable to complete the Replacements;
(iii) to employ such contractors, subcontractors, agents, architects and
inspectors as shall be required for such purposes; (iv) to pay, settle or
compromise all existing bills and claims which are or may become Liens against
the Property, or as may be necessary or desirable for the completion of the
Replacements, or for clearance of title; (v) to execute all applications
and certificates in the name of Borrower which may be required by any of the
contract documents; (vi) to prosecute and defend all actions or
proceedings in connection with the Property or the rehabilitation and repair of
the Property; and (vii) to do any and every act which Borrower might do in
its own behalf to fulfill the terms of this Agreement.

(e)           Nothing in this Section 7.3.3
shall:  (i) make Lender responsible
for making or completing the Replacements; (ii) require Lender to expend
funds in addition to the Replacement Reserve Funds to make or complete any
Replacement; (iii) obligate Lender to

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proceed with the Replacements; or
(iv) obligate Lender to demand from Borrower additional sums to make or
complete any Replacement.

(f)            Borrower shall permit Lender and Lender’s agents and
representatives (including, without limitation, Lender’s engineer, architect,
or inspector) or third parties making Replacements pursuant to this Section 7.3.3 to enter onto the
Property during normal business hours (subject to the rights of tenants under
their Leases) to inspect the progress of any Replacements and all materials
being used in connection therewith, to examine all plans and shop drawings
relating to such Replacements which are or may be kept at the Property, and to
complete any Replacements made pursuant to this Section 7.3.3.  Borrower shall cause all contractors and
subcontractors to cooperate with Lender or Lender’s representatives or such
other persons described above in connection with inspections described in this Section 7.3.3(f) or the completion of
Replacements pursuant to this Section 7.3.3.

(g)           Lender may require an inspection of the Property at
Borrower’s expense prior to making a monthly disbursement in excess of $100,000
from the Replacement Reserve Account in order to verify completion of the
Replacements for which reimbursement is sought. 
Lender may require that such inspection be conducted by an appropriate
independent qualified professional selected by Lender and/or may require a copy
of a certificate of completion by an independent qualified professional
acceptable to Lender prior to the disbursement of any amounts from the
Replacement Reserve Account.  Borrower
shall pay the expense of the inspection as required hereunder, whether such
inspection is conducted by Lender or by an independent qualified professional.

(h)           The Replacements and all materials, equipment, fixtures,
or any other item comprising a part of any Replacement shall be constructed,
installed or completed, as applicable, free and clear of all mechanic’s,
materialman’s or other liens (except for those Liens existing on the date of
this Agreement which have been approved in writing by Lender).

(i)            Before each disbursement in excess of $100,000 from the
Replacement Reserve Account, Lender may require Borrower to provide Lender with
a search of title to the Property effective to the date of the disbursement,
which search shows that no mechanic’s or materialmen’s liens or other liens of
any nature have been placed against the Property since the date of recordation
of the related Security Instrument and that title to the Property is free and
clear of all Liens (other than the lien of the related Security Instrument and
any other Liens previously approved in writing by Lender, if any).

(j)            All Replacements shall comply with all applicable Legal
Requirements of all Governmental Authorities having jurisdiction over the
Property and applicable insurance requirements including, without limitation,
applicable building codes, special use permits, environmental regulations, and
requirements of insurance underwriters.

(k)           In addition to any insurance required under the Loan
Documents, Borrower shall provide or cause to be provided workmen’s compensation
insurance, builder’s risk, and public liability insurance and other insurance
to the extent required under applicable law in connection with a particular
Replacement.  All such policies shall be
in form and amount reasonably satisfactory to Lender.  All such policies which can be endorsed with
standard

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mortgagee clauses making loss payable to
Lender or its assigns shall be so endorsed. 
Certified copies of such policies shall be delivered to Lender.

7.3.4       Failure
to Make Replacements.  (a)  It
shall be an Event of Default under this Agreement if Borrower fails to comply
with any provision of this Section 7.3
and such failure is not cured within thirty (30) days after notice from Lender;
provided, however, if such failure is not capable of being cured
within said thirty (30) day period, then provided that Borrower commences
action to complete such cure and thereafter diligently proceeds to complete
such cure, such thirty (30) day period shall be extended for such time as is
reasonably necessary for Borrower, in the exercise of due diligence, to cure
such failure, but such additional period of time shall not exceed ninety (90)
days.  Upon the occurrence of such an
Event of Default, Lender may use the Replacement Reserve Funds (or any portion
thereof) for any purpose, including but not limited to completion of the
Replacements as provided in Section 7.3.3,
or for any other repair or replacement to the Property or toward payment of the
Debt in such order, proportion and priority as Lender may determine in its sole
discretion.  Lender’s right to withdraw
and apply the Replacement Reserve Funds shall be in addition to all other
rights and remedies provided to Lender under this Agreement and the other Loan
Documents.

(b)           Nothing in this Agreement shall obligate Lender to apply
all or any portion of the Replacement Reserve Funds on account of an Event of
Default to payment of the Debt or in any specific order or priority.

7.3.5       Balance
in the Replacement Reserve Account.  The insufficiency of any balance in the
Replacement Reserve Account shall not relieve Borrower from its obligation to
fulfill all preservation and maintenance covenants in the Loan Documents.

7.3.6       Indemnification.  Borrower shall indemnify Lender and hold
Lender harmless from and against any and all actions, suits, claims, demands,
liabilities, losses, damages, obligations and costs and expenses (including
litigation costs and reasonable attorneys fees and expenses) arising from or in
any way connected with the performance of the Replacements unless the same are
solely due to gross negligence or willful misconduct of Lender.  Borrower shall assign to Lender all rights
and claims Borrower may have against all persons or entities supplying labor or
materials in connection with the Replacements; provided, however, that Lender
may not pursue any such right or claim unless an Event of Default has occurred
and remains uncured.

Section
7.4            Rollover Reserve.

7.4.1       Deposits
to Rollover Reserve Funds.  Borrower shall pay to Lender on each Payment
Date the sum of $25,948.00 (the “Rollover Reserve Monthly Deposit”), which amounts shall be
deposited with and held by Lender for tenant improvement and leasing commission
obligations incurred following the date hereof. 
Notwithstanding the foregoing, if the Rollover Reserve Funds shall at
any time equal or exceed $934,122.00, exclusive of the any Lease Termination
Fees (the “Rollover Reserve Cap”),
then Borrower’s obligation to make the Rollover Reserve Monthly Deposit shall
be suspended until such time as the Rollover Reserve Funds are less than the
Rollover

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Reserve Cap. Additionally, Borrower shall deposit with Lender any Lease
Termination Fees.  Amounts so deposited
shall hereinafter be referred to as the “Rollover Reserve Funds” and the
account in which such amounts are held shall hereinafter be referred to as
Borrower’s “Rolllover
Reserve Account”. 
Notwithstanding the foregoing, Borrower’s obligation to make monthly
deposits to the Rollover Reserve Account shall be suspended provided that no
Event of Default occurs.

7.4.2       Withdrawal
of Rollover Reserve Funds.  Lender shall make disbursements from the
Rollover Reserve Funds for tenant improvement and leasing commission
obligations incurred by Borrower.  All
such expenses shall be approved by Lender in its commercially reasonable
discretion, except that Lender’s approval of such expenses shall not be
required (a) if Lender has separately approved (but was not deemed to have
approved) the related Lease in accordance with the provisions of Section 5.1.20
of this Agreement or (b) with respect to tenant improvement expenses that are
less than $30.00 per square foot.  Lender
shall make disbursements as requested by Borrower on a monthly basis in
increments of no less than $5,000.00 upon delivery by Borrower of Lender’s
standard form of draw request accompanied by copies of paid invoices for the
amounts requested and, if required by Lender, lien waivers and releases from
all parties furnishing materials and/or services in connection with the
requested payment.  Lender may require an
inspection of the Property at Borrower’s expense prior to making a monthly
disbursement in order to verify completion of improvements for which
reimbursement is sought.  Any Lease
Termination Fee shall be applied first to tenant improvement and leasing
commission obligations incurred in connection with the reletting of the space
for which such Lease Termination Fee was paid pursuant to a Lease approved by
Lender in accordance with the provisions of this Agreement, and any remaining
portion of such Lease Termination Fee shall be released to Borrower provided
that no Event of Default exists and Lender shall have received a tenant
estoppel certificate in form and substance reasonably satisfactory to
Lender.   Notwithstanding the foregoing,
the RSUI Termination Fee may also be used to pay a portion of the Monthly Debt
Service Payment Amount relative to the amount of rent that is no longer being
generated under the RSUI Lease.

Section
7.5            Deposits to Additional
Collateral Funds. Borrower shall pay to Lender on
the date hereof the sum of $5,000,000.00 (the “Additional Collateral Deposit”),
which amounts shall be deposited with and held by Lender as additional
collateral for the Loan.    Amounts so
deposited shall hereinafter be referred to as the “Additional Collateral Reserve Funds”
and the account in which such amounts are held shall hereinafter be referred to
as Borrower’s “Additional
Collateral Reserve Account”.

7.5.1       Release
of Additional Collateral Funds.  Provided no Event of Default has occurred and
is continuing, and Borrower has delivered a fully executed Ground Lease
Estoppel and Agreement to Lender in the form required under the terms of the
Post Closing Agreement, then Lender shall disburse the Additional Collateral
Funds to Borrower.  If Borrower fails to
deliver a fully executed Ground Lease Estoppel and Agreement to Lender pursuant
to the terms of the Post Closing Agreement, then Lender may, in its sole
discretion, (a) continue to hold the Additional Collateral Funds as additional
collateral for the Loan until such time as Lender reasonably believes that its
will

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not get an acceptable form of the Ground Lease Estoppel and Agreement
executed or (b)  apply the Additional
Collateral Funds to paydown the Loan; provided, however, that upon Lender’s
reasonable belief that an acceptable form of the Ground Lease Estoppel and
Agreement will not be executed, Lender shall apply the Additional Collateral
Funds to paydown the Loan.   Any
Additional Collateral Funds remaining after the Debt has been paid in full
shall be returned to Borrower.   If
Lender elects to paydown the Loan, pursuant to this Section, no Yield
Maintenance Premium shall be due in connection with such paydown.

Section
7.6            Deposits of Ground Rent
Funds. Any amounts deposited into the Ground Rent
Escrow Account pursuant to the terms of the Cash Management Agreement shall
hereinafter be referred to as the “Ground
Rent Funds”).

7.6.1       Release
of Ground Rent Funds.  During a Cash Sweep Period, provided no Event
of Default has occurred and is continuing, Lender shall apply the Ground Rent
Funds to payments of Ground Rent.  In
making any payment relating to Ground Rent, Lender may do so according to any
bill or statement given by the Ground Lessor without inquiry into the accuracy
of such bill or statement or into the validity of any rent, additional rent or
other charge thereof.  Any Ground Rent
Funds remaining after the Debt has been paid in full shall be returned to
Borrower.

Section
7.7            Deposits to TI Allowance
Reserve Funds. Borrower shall pay to Lender on the
date hereof the sum of $3,301,480.35 (the “TI Allowance Deposit”), which
amounts shall be deposited with and held by Lender for the tenant improvement
allowance set forth on Schedule VI attached hereto and made a part hereof.   Amounts so deposited shall hereinafter be
referred to as the “TI Allowance Reserve Funds” and the account in which such
amounts are held shall hereinafter be referred to as Borrower’s “TI Allowance Reserve
Account”.

7.7.1       Withdrawal
of TI Allowance Reserve Funds.  Lender shall disburse to Borrower a portion
of the TI Allowance  Reserve Funds
allocable to each applicable Tenant (each, a “TI
Reserve Tenant”) listed on Schedule VI attached hereto in an amount
not to exceed the amount allocable to such TI Reserve Tenant as set forth
Schedule VI attached hereto upon satisfaction by Borrower of each of the
following conditions: (i) Borrower shall submit a request for payment to Lender
at least fifteen (15) days prior to the date on which Borrower requests such
payment be made and specifies the tenant improvement costs to be paid; (ii) on
the date such request is received by Lender and on the date such payment is to
be made, no Event of Default shall exist and remain uncured; (iii) Lender shall  have
received a certificate from Borrower (A) stating that all tenant improvements
at the Property to be funded by the requested disbursement have been completed
in good and workmanlike manner and in accordance with all applicable federal,
state and local laws, rules and regulations, such certificate to be accompanied
by a copy of any license, permit or other approval by any Governmental
Authority required in connection with the tenant improvements, (B) identifying
each Person that supplied materials or labor in connection with the tenant
improvements to be funded by the requested disbursement and (C) stating that
each such Person has been paid in full or will be paid in full upon such
disbursement, such certificate to be accompanied by lien waivers 

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or
other evidence of payment satisfactory to Lender; and (iv) Lender shall have
received such other evidence as Lender shall reasonably request that the tenant
improvements at the Property to be funded by the requested disbursement have
been completed and are paid for or will be paid upon such disbursement to
Borrower.  Lender shall not be required
to disburse TI Allowance Reserve Funds more frequently than once each calendar
month nor in an amount less than the $5,000.00 (or a lesser amount if the total
amount of TI Allowance Reserve Funds are less than the $5,000.00, in which case
only one disbursement of the amount remaining in the account shall be made).

Section
7.8            Reserve Funds, Generally.
 Borrower grants to Lender a
first-priority perfected security interest in each of the Reserve Funds and any
and all monies now or hereafter deposited in each Reserve Fund as additional
security for payment of the Debt.  Until
expended or applied in accordance herewith, the Reserve Funds shall constitute
additional security for the Debt.  Upon
the occurrence of an Event of Default, Lender may, in addition to any and all
other rights and remedies available to Lender, apply any sums then present in
any or all of the Reserve Funds to the payment of the Debt in any order in its
sole discretion.  The Reserve Funds shall
not constitute trust funds and may be commingled with other monies held by
Lender.  Amounts deposited in the
Replacement Reserve Account, the Property Reserve Account, the Additional
Collateral Reserve Account, the TI Improvement Reserve Account and the Rollover
Reserve Account shall bear interest at the thirty day money market rate
published by the bank used by Lender to hold escrow deposits, and shall be held
and released by Lender, and used by Borrower, in accordance with the terms and
conditions of this Agreement.  Lender
shall be entitled to a servicing fee in the amount of .25% per annum multiplied
by the average daily balance on deposit in the Replacement Reserve Account, the
Property Reserve Account, the Additional Collateral Reserve Account, the TI
Improvement Allowance Account and the Rollover Reserve Account (but in no event
shall Lender be entitled to a servicing fee in an amount greater than the
amount of interest earned thereon), and Lender is hereby authorized to deduct
such servicing fee from the Replacement Reserve Funds, the Property Reserve
Funds, the Additional Collateral Reserve Funds, the TI Allowance Reserve Funds
and the Rollover Reserve Funds on a monthly basis.  All interest or other income in connection
with the deposit or placement of the Replacement Reserve Funds, the Property
Reserve Funds, the Additional Collateral Reserve Funds, the TI Allowance
Reserve Funds and the Rollover Reserve Funds, less the servicing fee, shall be
reported under Borrower’s tax identification number, and shall only be
disbursed as set forth in this Agreement. 
All interest on any Reserve Funds other than the Replacement Reserve
Funds, the Property Reserve Funds, the Additional Collateral Reserve Funds, the
TI Allowance Reserve Funds and the Rollover Reserve Funds shall not be added to
or become a part thereof and shall be the sole property of and shall be paid to
Lender.  Borrower shall be responsible
for payment of any federal, state or local income or other tax applicable to
the interest earned on the Reserve Funds credited or paid to Borrower.  Borrower shall not, without obtaining the
prior written consent of Lender, further pledge, assign or grant any security
interest in any Reserve Fund or the monies deposited therein or permit any lien
or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1
Financing Statements, except those naming Lender as the secured party, to be
filed with respect thereto.  Lender shall
not be liable for any loss sustained on the investment of any funds
constituting the Reserve Funds.  Borrower
shall indemnify Lender and hold Lender harmless from and against any and all
actions, suits, claims, demands, liabilities, losses, damages, obligations and
costs and expenses (including litigation costs and reasonable attorneys fees
and expenses) arising from or in any way connected

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with the performance of the obligations for
which the Reserve Funds were established. 
Borrower shall assign to Lender all rights and claims Borrower may have
against all persons or entities supplying labor, materials or other services
which are to be paid from or secured by the Reserve Funds; provided, however,
that Lender may not pursue any such right or claim unless an Event of Default
has occurred and remains uncured.

Section
7.9            Letter of Credit Rights.
 Any Letter of Credit delivered to Lender
pursuant to this Agreement shall be held by Lender as additional security for
the Loan.  Lender shall have the right to
draw upon any Letter of Credit immediately and without further notice:

(a)           upon the occurrence and during the continuance of an Event
of Default;

(b)           if Borrower fails to deliver to Lender, no less than
thirty (30) days prior to the expiration of any Letter of Credit (including any
renewal or extension thereof), a renewal or extension of such Letter of Credit
or a replacement Letter of Credit; or

(c)           if the institution issuing the Letter of Credit ceases to
be an Eligible Institution and Borrower fails to deliver to Lender a
replacement Letter of Credit from an Eligible Institution within thirty (30)
days of the date that Borrower is notified or otherwise becomes aware that such
institution ceased to be an Eligible Institution.

Section
7.10         Application of Letter of
Credit Proceeds.  In the event of a draw upon a Letter of Credit
due to the existence of an Event of Default, Lender may apply such amounts in
such order and in such amounts as Lender shall elect, in its sole and absolute
discretion, to payment of the Debt.  In
the event of a draw upon a Letter of Credit due to the occurrence of an event
described in Section 7.9(b) or (c) above, Lender shall deposit the
proceeds of such Letter of Credit into a reserve account designated by Lender
and such proceeds shall be held and released in the same manner applicable to the
release of the Letter of Credit.

VIII.                        DEFAULTS

Section
8.1            Event of Default.
 (a) 
Each of the following events shall constitute an event of default
hereunder (an “Event
of Default”):

(i)          if
any portion of the Debt is not paid prior to the fifth (5th) calendar day after the same
is due or if the entire Debt is not paid on the Maturity Date, along with
applicable prepayment premiums, if any;

(ii)         if
any of the Taxes or Other Charges are not paid prior to the date when the same
become delinquent, except to the extent that Borrower is contesting same in
accordance with the terms of Section 5.1.2 hereof, or there are sufficient
funds in the Tax and Insurance Escrow Fund to pay such Taxes or Other Charges
and Lender fails to or refuses to release the same from the Tax and Insurance
Escrow Fund;

(iii)        if
the Policies are not kept in full force and effect, or if certified copies of
the Policies are not delivered to Lender within ten (10) days of request;

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(iv)        if
Borrower Transfers or encumbers any portion of the Property without Lender’s
prior written consent (to the extent such consent is required) or otherwise
violates the provisions of this Agreement and Article 6 of the Security
Instrument;

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

(vi)        if
Borrower, Principal or Guarantor shall make an assignment for the benefit of
creditors;

(vii)       if
a receiver, liquidator or trustee shall be appointed for Borrower, Principal or
Guarantor or if Borrower, Principal or Guarantor shall be adjudicated a
bankrupt or insolvent, or if any petition for bankruptcy, reorganization or
arrangement pursuant to federal bankruptcy law, or any similar federal or state
law, shall be filed by or against, consented to, or acquiesced in by, Borrower,
Principal or Guarantor, or if any proceeding for the dissolution or liquidation
of Borrower, Principal or Guarantor shall be instituted; provided, however, if
such appointment, adjudication, petition or proceeding was involuntary and not
consented to by Borrower, Principal or Guarantor, upon the same not being
discharged, stayed or dismissed within one hundred eighty (180) days;

(viii)      if
Borrower attempts to assign its rights under this Agreement or any of the other
Loan Documents or any interest herein or therein in contravention of the Loan
Documents;

(ix)         if
Borrower breaches any of its respective negative covenants contained in Section
5.2 or any covenant contained in Section 4.1.30
hereof;

(x)          with
respect to any term, covenant or provision set forth herein which specifically
contains a notice requirement or grace period, if Borrower shall be in default
under such term, covenant or condition after the giving of such notice or the
expiration of such grace period;

(xi)         if
any of the assumptions contained in the Insolvency Opinion delivered to Lender
in connection with the Loan, or in any Additional Insolvency Opinion delivered
subsequent to the closing of the Loan, is or shall become untrue in any
material respect;

(xii)        [intentionally
omitted];

(xiii)       if
Borrower shall continue to be in Default under any of the terms, covenants or
conditions of Section 9.1 hereof
(unless Borrower is unable to satisfy such term, covenants or conditions due to
circumstances beyond its control, such as the unavailability of information
requested by Lender), or 

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willfully fails to cooperate with Lender in connection with a
Securitization pursuant to the provisions of Section 9.1
hereof, for five (5) Business Days after notice to Borrower from Lender;

(xiv)      if
Borrower shall continue to be in Default under any of the other terms,
covenants or conditions of this Agreement not specified in subsections (i) to (xii) above, for ten (10) days after
notice to Borrower from Lender, in the case of any Default which can be cured
by the payment of a sum of money, or for thirty (30) days after notice
from Lender in the case of any other Default; provided, however, that if such
non-monetary Default is susceptible of cure but cannot reasonably be
cured within such thirty (30) day period and provided further that
Borrower shall have commenced to cure such Default within such thirty (30)
day period and thereafter diligently and expeditiously proceeds to cure the
same, such thirty (30) day period shall be extended for such time as is
reasonably necessary for Borrower in the exercise of due diligence to cure such
Default, such additional period not to exceed one hundred eighty  (180)
days;

(xv)       if
(A) Borrower shall fail in the payment of any rent, additional rent or other
charge mentioned in or made payable by the Ground Lease as and when such rent
or other charge is due and payable, subject to any specific grace periods  (unless waived by the landlord under the
Ground Lease), (B) there shall occur any default (after the expiration of any
notice and cure periods contained therein) by Borrower, under the Ground Lease
or the Development Agreement, in the observance or performance of any term,
covenant or condition of the Ground Lease (unless waived by the landlord under
the Ground Lease), (C) if any one or more of the events referred to in the
Ground Lease shall occur which would cause the Ground Lease to terminate
without notice or action by the landlord under the Ground Lease or which would
entitle the landlord to terminate the Ground Lease and the term thereof by
giving notice to Borrower, as tenant thereunder (unless waived by the landlord
under the Ground Lease), (D) if the leasehold estate created by the Ground
Lease shall be surrendered or the Ground Lease shall be terminated or canceled
for any reason or under any circumstances whatsoever or (E) if any of the
terms, covenants or conditions of the Ground Lease shall in any manner be
modified, changed, supplemented, altered, or amended without the consent of
Lender except as otherwise permitted by this Agreement;

(xvi)      if
Borrower shall permit any event within its control to occur that would cause
any material (as to use or value) REA to terminate without notice or action by
any party thereto or would entitle any party to terminate any REA and the term
thereof by giving notice to Borrower; or any material (as to use or value) REA
shall be surrendered, terminated, or canceled for any reason or under any
circumstance whatsoever; or any term of a material (as to use or value) REA
shall be materially modified or supplemented without Lender’s prior written
consent; or Borrower shall fail, within ten (10) Business Days after written
demand by Lender, to exercise its option to renew or extend the term of any
material (as to use or value) REA or shall fail or neglect to pursue diligently
all actions necessary to exercise (if then exercisable) such renewal rights
pursuant to such REA;

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(xvii)     if
there shall be default under any of the other Loan Documents beyond any
applicable cure periods contained in such documents, whether as to Borrower or
the Property, or if any other such event shall occur or condition shall exist,
if the effect of such event or condition is to accelerate the maturity of any
portion of the Debt or to permit Lender to accelerate the maturity of all or
any portion of the Debt.

(b)           Upon the occurrence of an Event of Default (other than an
Event of Default described in clauses (vi), (vii) or (viii) above) and at any
time thereafter Lender may, in addition to any other rights or remedies
available to it pursuant to this Agreement and the other Loan Documents or at
law or in equity, Lender may take such action, without notice or demand, that
Lender deems advisable to protect and enforce its rights against Borrower and
the Property, including, without limitation, declaring the Debt to be
immediately due and payable, and Lender may enforce or avail itself of any or
all rights or remedies provided in the Loan Documents against Borrower and any
or all of the Property, including, without limitation, all rights or remedies
available at law or in equity; and upon any Event of Default described in
clauses (vi), (vii) or (viii) above, the Debt and Other Obligations of Borrower
hereunder and under the other Loan Documents shall immediately and
automatically become due and payable, without notice or demand, and Borrower
hereby expressly waives any such notice or demand, anything contained herein or
in any other Loan Document to the contrary notwithstanding.

Section
8.2            Remedies.
(a)  Upon the occurrence of an Event of
Default, all or any one or more of the rights, powers, privileges and other
remedies available to Lender against Borrower under this Agreement or any of
the other Loan Documents executed and delivered by, or applicable to, Borrower
or at law or in equity may be exercised by Lender at any time and from time to
time, whether or not all or any of the Debt shall be declared due and payable,
and whether or not Lender shall have commenced any foreclosure proceeding or
other action for the enforcement of its rights and remedies under any of the
Loan Documents with respect to all or any part of the Property.  Any such actions taken by Lender shall be
cumulative and concurrent and may be pursued independently, singly,
successively, together or otherwise, at such time and in such order as Lender
may determine in its sole discretion, to the fullest extent permitted by law,
without impairing or otherwise affecting the other rights and remedies of
Lender permitted by law, equity or contract or as set forth herein or in the other
Loan Documents.  Without limiting the
generality of the foregoing, Borrower agrees that if an Event of Default is
continuing (i) Lender is not subject to any “one action” or “election of
remedies” law or rule (to the extent waiveable by Borrower), and (ii) all
liens and other rights, remedies or privileges provided to Lender shall remain
in full force and effect until Lender has exhausted all of its remedies against
the Property and the Security Instrument has been foreclosed, sold and/or
otherwise realized upon in satisfaction of the Debt or the Debt has been paid
in full.

(b)           With respect to Borrower and the Property, nothing
contained herein or in any other Loan Document shall be construed as requiring
Lender to resort to the Property for the satisfaction of any of the Debt in any
preference or priority to any other Property, and Lender may seek satisfaction
out of the Property, or any part thereof, in its absolute discretion in respect
of the Debt.  In addition, to the extent
permitted by applicable law, Lender shall have the right from time to time to
partially foreclose the Security Instrument in any manner and for any

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amounts secured by the Security Instrument
then due and payable as determined by Lender in its sole discretion including,
without limitation, the following circumstances:  (i) in the event Borrower defaults
beyond any applicable grace period in the payment of one or more scheduled
payments of principal and interest, Lender may foreclose the Security
Instrument to recover such delinquent payments or (ii) in the event Lender
elects to accelerate less than the entire outstanding principal balance of the
Loan, Lender may foreclose the Security Instrument to recover so much of the
principal balance of the Loan as Lender may accelerate and such other sums
secured by the Security Instrument as Lender may elect.  Notwithstanding one or more partial
foreclosures, the Property shall remain subject to the Security Instrument to
secure payment of sums secured by the Security Instrument and not previously
recovered.

(c)           During the continuance of an Event of Default, Lender
shall have the right from time to time to sever the Note and the other Loan
Documents into one or more separate notes, mortgages and other security
documents (the “Severed
Loan Documents”) in such denominations as Lender shall determine in
its sole discretion for purposes of evidencing and enforcing its rights and
remedies provided hereunder.  Borrower
shall execute and deliver to Lender from time to time, promptly after the
request of Lender, a severance agreement and such other documents as Lender
shall request in order to effect the severance described in the preceding
sentence, all in form and substance reasonably satisfactory to Lender.  Borrower hereby absolutely and irrevocably
appoints Lender following the occurrence of an Event of Default as its true and
lawful attorney, coupled with an interest, in its name and stead to make and
execute all documents necessary or desirable to effect the aforesaid severance,
Borrower ratifying all that its said attorney shall do by virtue thereof;
provided, however, Lender shall not make or execute any such documents under
such power until three (3) days after notice has been given to Borrower by
Lender of Lender’s intent to exercise its rights under such power.  Borrower shall be obligated to pay any costs
or expenses incurred in connection with the preparation, execution, recording
or filing of the Severed Loan Documents in connection with an Event of Default
and the Severed Loan Documents shall not contain any representations,
warranties or covenants not contained in the Loan Documents and any such
representations and warranties contained in the Severed Loan Documents will be
given by Borrower only as of the Closing Date.

Section
8.3            Remedies Cumulative;
Waivers.  The rights, powers and remedies of Lender
under this Agreement shall be cumulative and not exclusive of any other right,
power or remedy which Lender may have against Borrower pursuant to this
Agreement or the other Loan Documents, or existing at law or in equity or
otherwise.  Lender’s rights, powers and
remedies may be pursued singly, concurrently or otherwise, at such time and in
such order as Lender may determine in Lender’s sole discretion.  No delay or omission to exercise any remedy,
right or power accruing upon an Event of Default shall impair any such remedy,
right or power or shall be construed as a waiver thereof, but any such remedy,
right or power may be exercised from time to time and as often as may be deemed
expedient.  A waiver of one Default or
Event of Default with respect to Borrower shall not be construed to be a waiver
of any subsequent Default or Event of Default by Borrower or to impair any
remedy, right or power consequent thereon.

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IX.                                SPECIAL
PROVISIONS

Section
9.1            Securitization.

9.1.1       Sale
of Notes and Securitization.  Borrower acknowledges and agrees that Lender
may sell all or any portion of the Loan and the Loan Documents, or issue one or
more participations therein, or consummate one or more private or public
securitizations of rated single- or multi-class securities (the “Securities”)
secured by or evidencing ownership interests in all or any portion of the Loan
and the Loan Documents or a pool of assets that include the Loan and the Loan
Documents (such sales, participations and/or securitizations, collectively, a “Securitization”).  At the request of Lender, and to the extent
not already required to be provided by or on behalf of Borrower under this
Agreement, Borrower shall use reasonable efforts to provide information not in
the possession of Lender or which may be reasonably required by Lender or take
other actions reasonably required by Lender, in each case in order to satisfy
the market standards to which Lender customarily adheres or which may be reasonably
required by prospective investors and/or the Rating Agencies in connection with
any such Securitization including, without limitation, to:

(a)           provide additional and/or updated Provided Information,
together with appropriate verification and/or consents related to the Provided
Information through letters of auditors or opinions of counsel of independent
attorneys reasonably acceptable to Lender, prospective investors and/or the
Rating Agencies;

(b)           assist in preparing descriptive materials for presentations
to any or all of the Rating Agencies, and work with, and if requested,
supervise, third-party service providers engaged by Borrower and approved by
Lender, Principal and their respective affiliates to obtain, collect, and
deliver information requested or required by Lender, prospective investors
and/or the Rating Agencies;

(c)           deliver revised organizational documents for Borrower,
which counsel opinions and organizational documents shall be reasonably
satisfactory to Lender, prospective investors and/or the Rating Agencies;

(d)           if required by any prospective investor and/or any Rating
Agency, use commercially reasonable efforts to deliver such additional tenant
estoppel letters, subordination agreements or other agreements from parties to
agreements that affect the Property, which estoppel letters, subordination
agreements or other agreements shall be reasonably satisfactory to Lender,
prospective investors and/or the Rating Agencies;

(e)           make such representations and warranties as of the closing
date of the Securitization with respect to the Property, Borrower, Principal,
Guarantor and the Loan Documents as may be reasonably requested by Lender,
prospective investors and/or the Rating Agencies and consistent with the facts
covered by such representations and warranties as they exist on the date
thereof, including the representations and warranties made in the Loan
Documents;

(f)            execute such amendments to the Loan Documents and
organizational documents as may be reasonably requested by the holder of the
Note or the Rating Agencies or

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otherwise to effect the Securitization;
provided, however, that Borrower shall not be required to modify or amend any
Loan Document if such modification or amendment would (i) change the interest
rate, the stated maturity or the amortization of principal set forth in the
Note, or (ii) modify or amend any other material term of the Loan;

(g)           if requested by Lender, review any information regarding
the Property, Borrower, Principal, Guarantor, Property Manager and the Loan which
is contained in a preliminary or final private placement memorandum,
prospectus, prospectus supplement (including any amendment or supplement to
either thereof), or other disclosure document to be used by Lender or any
affiliate thereof; and

(h)           supply to Lender such documentation, financial statements
and reports in form and substance required in order to comply with any
applicable securities laws.

9.1.2       Loan
Components. 
Borrower covenants and agrees that in connection with any Securitization
of the Loan, upon Lender’s request Borrower shall deliver one or more new
component notes to replace the original note or modify the original note to
reflect multiple components of the Loan or create one or more mezzanine loans
(including amending Borrower’s organizational structure to provide for one or
more mezzanine borrowers) (each a “Resizing
Event”).  Lender agrees that
such new notes or modified note or mezzanine notes shall have the same weighted
average coupon as the original note prior to such Resizing Event and shall
otherwise comply with the provisions of Section 9.1.1(f).

9.1.3       Securitization
Costs.  All
reasonable third party costs and expenses incurred by Borrower in connection
with Borrower’s complying with requests made under this Section 9.1 (including,
without limitation, the fees and expenses of the Rating Agencies) shall be paid
by Lender.

9.1.4       Regulation
AB.   If
requested by Lender, Borrower shall provide Lender with the following financial
statements:

(a)           If, at the time one or more Disclosure Documents are being
prepared for a Securitization, Lender expects that Borrower alone or Borrower
and one or more Affiliates of Borrower collectively, or the Property alone or
the Property and Related Properties collectively, will be a Significant Obligor,
Borrower shall furnish to Lender upon request (i) the selected financial data
or, if applicable, Net Operating Income, required under Item 1112(b)(1) of
Regulation AB with respect to Borrower, the relevant Affiliates of Borrower and
the Property, if Lender expects that the principal amount of the Loan together
with any Related Loans as of the cut-off date for such Securitization may, or
if the principal amount of the Loan together with any Related Loans as of the
cut-off date for such Securitization and at any time during which the Loan and
any Related Loans are included in a Securitization does, equal or exceed ten
percent (10%) (but less than twenty percent (20%)) of the aggregate principal
amount of all mortgage loans included or expected to be included, as
applicable, in the Securitization or (ii) the financial statements required
under Item 1112(b)(2) of Regulation AB with respect to Borrower, the relevant
Affiliates of Borrower and the Property, if Lender expects that the principal
amount of the Loan together with any Related Loans as of the cut-off date for
such Securitization may, or if

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the principal amount of the Loan together
with any Related Loans as of the cut-off date for such Securitization and at
any time during which the Loan and any Related Loans are included in a
Securitization does, equal or exceed twenty percent (20%) of the aggregate
principal amount of all mortgage loans included or expected to be included, as
applicable, in the Securitization.  Such
financial data or financial statements shall be furnished to Lender (A) within
a reasonable period of time after notice from Lender in connection with the
preparation of Disclosure Documents for the Securitization, (B) not later than
forty-five (45) days after the end of each fiscal quarter of Borrower and (C)
not later than one hundred twenty (120) days after the end of each Fiscal Year
of Borrower; provided, however, that Borrower shall not be obligated to furnish
financial data or financial statements pursuant to clauses (B) or (C) of this
sentence with respect to any period for which a filing pursuant to the Exchange
Act in connection with or relating to the Securitization (an “Exchange Act Filing”) is not required.  If requested by Lender, Borrower shall
furnish to Lender financial data and/or financial statements for any tenant of
the Property if, in connection with a Securitization, Lender expects there to
be, with respect to such tenant or group of Affiliated tenants, a concentration
within all of the mortgage loans included or expected to be included, as
applicable, in the Securitization such that such tenant or group of affiliated
tenants would constitute a Significant Obligor.

(b)           If requested by Lender, Borrower shall provide Lender,
promptly upon request, with summaries of the financial statements referred to
in Section 9.1.4(a) hereof if, at the time a Disclosure Document is being
prepared for a Securitization, it is expected that the principal amount of the
Loan and any Affiliated Loans at the time of such Securitization may, or if the
principal amount of the Loan and any Affiliated Loans at any time during which
the Loan and any Affiliated Loans are included in a Securitization does, equal
or exceed ten percent (10%) (but is less than twenty percent (20%)) of the
aggregate principal amount of all mortgage loans included or expected to be
included, as applicable, in a Securitization. 
Such summaries shall meet the requirements for “summarized financial
information,” as defined in Section 210.1-02(bb) of Regulation S-X, or such other
requirements as may be determined to be necessary or appropriate by Lender.

(c)           All financial data and financial statements provided by
Borrower hereunder pursuant to Section 9.1.4(a) hereof shall be prepared in
accordance with GAAP, and shall meet the requirements of Regulation AB and such
other applicable legal requirements as Lender may specify in its request to
Borrower.  All financial data and
financial statements provided by Borrower under Section 9.1.4(a) shall be
accompanied by an Officer’s Certificate, which shall state that such financial
statements meet the requirements set forth in the first sentence of this
Section 9.1.4(c).

(d)           If requested by Lender, Borrower shall provide Lender,
promptly upon request, with any other or additional financial statements, or
financial, statistical or operating information, in each case relating to
Borrower, any Affiliates of Borrower or the Property, as Lender shall determine
to be required pursuant to Regulation AB or any amendment, modification or
replacement thereto or other legal requirements in connection with any
Disclosure Document or any Exchange Act Filing or as shall otherwise be
reasonably requested by Lender.

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(e)           Notwithstanding any
other provisions of this Section 9.1.4, Borrower’s obligations with respect to
the delivery of information (i) with respect to periods predating Borrower’s
acquisition of the Property, (ii) relating to tenants of the Property, or (iii)
otherwise relating to Persons or property not owned by Borrower or within its
reasonable control (or in the control of one or more of its Affiliates) shall
be limited to using commercially reasonable efforts to (A) enforce Borrower’s
contractual rights, if any, to the delivery of such information (e.g. by its
seller, pursuant to the applicable purchase and sale agreement, or by a tenant
pursuant to its Lease) or (B) otherwise obtain such information.  Lender shall notify Borrower in the event the
Loan is intended to be included in a Securitization in which Borrower alone or
Borrower and one or more Affiliates of Borrower collectively, or the Property
alone or the Property and Related Properties collectively, will be a
Significant Obligor and, in such event, Lender shall credit Borrower $20,000.00
for expenses incurred by Borrower in connection with its compliance with
Regulation AB prior to the cut-off date for such Securitization.

Section
9.2            Securitization
Indemnification.

(a)           Borrower understands
that information provided to Lender by Borrower and its agents, counsel and
representatives may be included in disclosure documents in connection with the
Securitization, including, without limitation, an offering circular, a
prospectus, prospectus supplement, private placement memorandum or other
offering document (each, an “Disclosure
Document”) and may also be included in filings with the Securities
and Exchange Commission pursuant to the Securities Act of 1933, as amended (the
“Securities Act”), or the Securities
and Exchange Act of 1934, as amended (the “Exchange
Act”), and may be made available to investors or prospective
investors in the Securities, the Rating Agencies, and service providers
relating to the Securitization.

(b)           Borrower shall provide
in connection with each of (i) a preliminary and a final private placement
memorandum or (ii) a preliminary and final prospectus or prospectus supplement,
as applicable, an agreement (A) certifying that Borrower has examined such
Disclosure Documents specified by Lender and that each such Disclosure
Document, as it relates to Borrower, Borrower Affiliates, the Property,
Manager, Sponsor, Guarantor and all other aspects of the Loan, does not contain
any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading; provided, however,
that Borrower’s certification with respect to any materials prepared and
provided by third parties may be limited to Borrower’s actual knowledge, (B)
indemnifying Lender (and for purposes of this Section 9.2, Lender hereunder
shall include its officers and directors), the Affiliate of KeyBank National
Association (“KeyBank”) that has
filed the registration statement relating to the Securitization (the “Registration Statement”), each of its
directors, each of its officers who have signed the Registration Statement and
each Person that controls the Affiliate within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act (collectively, the “KeyBank Group”), and KeyBank, and any other
placement agent or underwriter with respect to the Securitization, each of
their respective directors and each Person who controls KeyBank or any other
placement agent or underwriter within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act (collectively, the “Underwriter Group”) for any losses, claims,
damages or liabilities (collectively, the “Liabilities”)
to which Lender, the KeyBank Group or the Underwriter Group may become subject
insofar as the Liabilities arise out of or are based

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upon any untrue statement or alleged untrue
statement of any material fact contained in such sections or arise out of or
are based upon the omission or alleged omission to state therein a material
fact required to be stated in such sections or necessary in order to make the
statements in such sections, in light of the circumstances under which they
were made, not misleading and (C) agreeing to reimburse Lender, the KeyBank
Group and/or the Underwriter Group for any legal or other expenses reasonably
incurred by Lender, the KeyBank Group and the Underwriter Group in connection
with investigating or defending the Liabilities; provided, however, that
Borrower will be liable in any such case under clauses (B) or (C) above only to
the extent that any such loss claim, damage or liability arises out of or is
based upon any such untrue statement or omission made therein in reliance upon
and in conformity with information furnished to Lender by or on behalf of
Borrower in connection with the preparation of the Disclosure Document or in
connection with the underwriting or closing of the Loan, including, without
limitation, financial statements of Borrower, operating statements and rent
rolls with respect to the Property.  This
indemnity agreement will be in addition to any liability which Borrower may
otherwise have.  Notwithstanding anything
to the contrary contained in this Section 9.2(b), nothing contained herein
shall impose liability upon Borrower for any Liabilities arising out of or
based upon an untrue statement of any material fact contained in any statement,
report or document provided to Lender on behalf of Borrower by a party who is
not an Affiliate of a Borrower (a “Third
Party Report”), unless Borrower had actual knowledge at the time
Borrower provided such statement, report or document to Lender that such Third
Party Report contains such untrue statement.

(c)           In connection with
Exchange Act Filings, Borrower shall (i) indemnify Lender, the KeyBank Group
and the Underwriter Group for Liabilities to which Lender, the KeyBank Group or
the Underwriter Group may become subject insofar as the Liabilities arise out
of or are based upon the omission or alleged omission to state in the
Disclosure Document a material fact required to be stated in the Disclosure
Document in order to make the statements in the Disclosure Document, in light
of the circumstances under which they were made, not misleading and (ii)
reimburse Lender, the KeyBank Group or the Underwriter Group for any legal or
other expenses reasonably incurred by Lender, the KeyBank Group or the
Underwriter Group in connection with defending or investigating the
Liabilities.

(d)           Promptly after receipt
by an indemnified party under this Section 9.2 of notice of the commencement of
any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 9.2, notify the
indemnifying party in writing of the commencement thereof, but the omission to
so notify the indemnifying party will not relieve the indemnifying party from
any liability which the indemnifying party may have to any indemnified party
hereunder except to the extent that failure to notify causes prejudice to the
indemnifying party.  In the event that
any action is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be
entitled, jointly with any other indemnifying party, to participate therein
and, to the extent that it (or they) may elect by written notice delivered to
the indemnified party promptly after receiving the aforesaid notice from such
indemnified party, to assume the defense thereof with counsel satisfactory to
such indemnified party.  After notice
from the indemnifying party to such indemnified party under this Section 9.2,
such indemnified party shall pay for any legal or other expenses subsequently
incurred by such indemnified party in connection with the defense thereof other
than reasonable costs of investigation; provided,

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however, if the defendants in any such action
include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there are any legal
defenses available to it and/or other indemnified parties that are different
from or additional to those available to the indemnifying party, the
indemnified party or parties shall have the right to select separate counsel to
assert such legal defenses and to otherwise participate in the defense of such
action on behalf of such indemnified party at the cost of the indemnifying
party.  The indemnifying party shall not
be liable for the expenses of more than one separate counsel unless an
indemnified party shall have reasonably concluded that there may be legal
defenses available to it that are different from or additional to those
available to another indemnified party.

(e)           In order to provide for
just and equitable contribution in circumstances in which the indemnity
agreement provided for in Section 9.2(b) or (c) is for any reason held to be
unenforceable as to an indemnified party in respect of any losses, claims,
damages or liabilities (or action in respect thereof) referred to therein which
would otherwise be indemnifiable under Section 9.2(b) or (c), the indemnifying
party shall contribute to the amount paid or payable by the indemnified party
as a result of such losses, claims, damages or liabilities (or action in
respect thereof); provided, however, that no Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.  In determining
the amount of contribution to which the respective parties are entitled, the
following factors shall be considered: (i) KeyBank’s and Borrower’s relative
knowledge and access to information concerning the matter with respect to which
the claim was asserted; (ii) the opportunity to correct and prevent any
statement or omission; and (iii) any other equitable considerations appropriate
in the circumstances.  Lender and
Borrower hereby agree that it would not be equitable if the amount of such
contribution were determined by pro rata or per capita allocation.

9.2.2    The liabilities and
obligations of both Borrower and Lender under this Section 9.2 shall survive
the termination of this Agreement and the satisfaction and discharge of the
Debt. Exculpation. Subject
to the qualifications below, Lender shall not enforce the liability and
obligation of Borrower to perform and observe the obligations contained in the
Note, this Agreement, the Security Instrument or the other Loan Documents by
any action or proceeding wherein a money judgment shall be sought against
Borrower, except that Lender may bring a foreclosure action, an action for
specific performance or any other appropriate action or proceeding to enable
Lender to enforce and realize upon its interest under the Note, this Agreement,
the Security Instrument and the other Loan Documents, or in the Property, the
Rents following an Event of Default, or any other collateral given to Lender
pursuant to the Loan Documents; provided, however, that, except
as specifically provided herein, any judgment in any such action or proceeding
shall be enforceable against Borrower only to the extent of Borrower’s interest
in the Property, in the Rents following an Event of Default and in any other
collateral given to Lender, and Lender, by accepting the Note, this Agreement,
the Security Instrument and the other Loan Documents, agrees that it shall not
sue for, seek or demand any deficiency judgment against Borrower in any such
action or proceeding under or by reason of or under or in connection with the
Note, this Agreement, the Security Instrument or the other Loan Documents.  The provisions of this Section shall not,
however, (a) constitute a waiver, release or impairment of any obligation
evidenced or secured by any of the Loan Documents; (b) impair the right of
Lender to name Borrower as a party defendant in any action or suit for
foreclosure and sale under the Security Instrument; (c) affect the
validity or enforceability of or any guaranty made in

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connection with the Loan or any of the rights
and remedies of Lender thereunder; (d) impair the right of Lender to
obtain the appointment of a receiver; (e) impair the enforcement of the
Assignment of Leases following an Event of Default; (f) constitute a
prohibition against Lender commencing any other appropriate action or
proceeding in order for Lender to exercise its remedies against the
Property.  In addition, the foregoing
shall not be deemed a waiver of the right of Lender to enforce the liability
and obligation of Borrower, by money judgment or otherwise, to the extent of
any loss, damage, cost, expense, liability, claim or other obligation incurred
by Lender (including attorneys’ fees and costs reasonably incurred) arising out
of or in connection with the following:

(i)          the misapplication or misappropriation of
Rents;

(ii)         the misapplication or misappropriation of
Insurance Proceeds or Awards;

(iii)        Borrower’s failure to return or to reimburse
Lender for all Personal Property (other than Personal Property not material to
the operation or value of the Property) taken from the Property by or on behalf
of Borrower and not replaced with Personal Property of the same utility and of
the same or greater value;

(iv)        any act of actual waste or arson by Borrower,
any principal, affiliate, general partner or member thereof or by Guarantor;

(v)         any fees or commissions paid by Borrower to
any principal, affiliate, general partner or member of Borrower or any
Guarantor in violation of the terms of this Guaranty, the other Loan Documents;

(vi)        Borrower’s failure to comply with the
provisions of Section 9.4 of the Security Instrument; or

(vii)       any fraud, willful misconduct or intentional
material misrepresentation by Borrower, Principal, Guarantor or any of their
respective Affiliates in connection with the Loan; or

(viii)      any breach or default of any material provision
of Section 4.1.30 of this Agreement (other than breaches of the
requirements set forth in clauses (xii) or (xxiii) of the definition of Special
Purpose Entity).

(b)           Notwithstanding
anything to the contrary in this Agreement, the Note or any of the Loan
Documents, (A) Lender shall not be deemed to have waived any right which
Lender may have under Section 506(a), 506(b), 1111(b) or any other
provisions of the Bankruptcy Code to file a claim for the full amount of the
Debt secured by the Security Instrument or to require that all collateral shall
continue to secure all of the Debt owing to Lender in accordance with the Loan
Documents, and (B) the Debt shall be fully recourse to Borrower in the
event or: (i) a voluntary breach or default under Section 5.2.10 of
this Agreement, (ii) Borrower or Principal filing a voluntary petition
under the Bankruptcy Code or any other Federal or state bankruptcy or
insolvency law; (iii) Borrower or Principal filing an

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answer consenting to or otherwise acquiescing
in or joining in any involuntary petition filed against it, by any other Person
under the Bankruptcy Code or any other Federal or state bankruptcy or
insolvency law, or soliciting or causing to be solicited petitioning creditors
for any involuntary petition from any Person; (iv) Borrower or Principal
consenting to or acquiescing in or joining in an application for the
appointment of a custodian, receiver, trustee, or examiner for Borrower, Principal
or any portion of the Property; or (v) Borrower or Principal making an
assignment for the benefit of creditors.

Section 9.4            Matters Concerning
Property Manager.  If (a) an Event of Default has occurred,
(b) Property Manager shall become bankrupt or insolvent or (c) a
default occurs under the Property Management Agreement and continues beyond all
applicable notice and cure periods, Borrower shall, at the request of Lender,
terminate the Property Management Agreement and replace the Property Manager with
a Qualifying Property Manager pursuant to a Replacement Management Agreement,
it being understood and agreed that the management fee for such Qualifying
Property Manager shall not exceed then prevailing market rates.

Section 9.5            Servicer.  At
the option of Lender, the Loan may be serviced by a servicer/trustee (any such
servicer/trustee, together with its agents, nominees or designees, are
collectively referred to as “Servicer”) selected by Lender and Lender may delegate all or
any portion of its responsibilities under this Agreement and the other Loan
Documents to the Servicer pursuant to a servicing agreement (the “Servicing Agreement”)
between Lender and Servicer.  Borrower
shall be responsible for any reasonable set-up fees or any other initial costs
relating to or arising under the Servicing Agreement; provided, however, that
Borrower shall not be responsible for payment of the monthly servicing fee due
to Servicer under the Servicing Agreement.

X.                                    MISCELLANEOUS

 

Section 10.1         Survival.  This
Agreement and all covenants, agreements, representations and warranties made
herein and in the certificates delivered pursuant hereto shall survive the
making by Lender of the Loan and the execution and delivery to Lender of the
Note, and shall continue in full force and effect so long as all or any of the
Debt is outstanding and unpaid unless a longer period is expressly set forth
herein or in the other Loan Documents. 
Whenever in this Agreement any of the parties hereto is referred to,
such reference shall be deemed to include the legal representatives, successors
and assigns of such party.  All
covenants, promises and agreements in this Agreement, by or on behalf of
Borrower, shall inure to the benefit of the legal representatives, successors
and assigns of Lender.

 

Section 10.2         Lender’s Discretion. 
Whenever pursuant to this Agreement, Lender exercises any right given to
it to approve or disapprove, or any arrangement or term is to be satisfactory
to Lender, the decision of Lender to approve or disapprove or to decide whether
arrangements or terms are satisfactory or not satisfactory shall (except as is
otherwise specifically herein provided) be in the sole discretion of Lender and
shall be final and conclusive.

Section 10.3         Governing Law.  This Agreement shall be governed
by and construed in accordance with the laws of the state in which the Property
is located (without

 92
 

 

regard
to any conflict of laws or principles) and the applicable laws of the United
States of America.

Section 10.4         Modification, Waiver
in Writing.  No modification, amendment, extension,
discharge, termination or waiver of any provision of this Agreement, or of the
Note, or of any other Loan Document, nor consent to any departure by Borrower
therefrom, shall in any event be effective unless the same shall be in a
writing signed by the party against whom enforcement is sought, and then such
waiver or consent shall be effective only in the specific instance, and for the
purpose, for which given.  Except as otherwise
expressly provided herein, no notice to, or demand on Borrower, shall entitle
Borrower to any other or future notice or demand in the same, similar or other
circumstances.

Section 10.5         Delay Not a Waiver. 
Neither any failure nor any delay on the part of Lender in insisting
upon strict performance of any term, condition, covenant or agreement, or
exercising any right, power, remedy or privilege hereunder, or under the Note
or under any other Loan Document, or any other instrument given as security
therefor, shall operate as or constitute a waiver thereof, nor shall a single
or partial exercise thereof preclude any other future exercise, or the exercise
of any other right, power, remedy or privilege. 
In particular, and not by way of limitation, by accepting payment after
the due date of any amount payable under this Agreement, the Note or any other
Loan Document, Lender shall not be deemed to have waived any right either to
require prompt payment when due of all other amounts due under this Agreement,
the Note or the other Loan Documents, or to declare a default for failure to
effect prompt payment of any such other amount.

Section 10.6         Notices.  All
notices, consents, approvals and requests required or permitted hereunder or
under any other Loan Document shall be given in writing and shall be effective
for all purposes if hand delivered or sent by (a) certified or registered
United States mail, postage prepaid, return receipt requested or
(b) expedited prepaid delivery service, either commercial or United States
Postal Service, with proof of attempted delivery, and by telecopier (with
answer back acknowledged), addressed as follows (or at such other address and
Person as shall be designated from time to time by any party hereto, as the
case may be, in a written notice to the other parties hereto in the manner
provided for in this Section):

	
  If to Lender:

  	
   

  	
  KeyBank National
  Association.

  
	
   

  	
   

  	
  [                          ]

  
	
   

  	
   

  	
  Attention:
  [                          ]

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  NorthMarq Capital Inc.

  
	
   

  	
   

  	
  3500 American Boulevard
  West, Suite 500

  
	
   

  	
   

  	
  Bloomington,
  Minnesota 55431

  
	
   

  	
   

  	
  Attention: Karen
  Pribnow

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Alston & Bird LLP

  
	
   

  	
   

  	
  90 Park Avenue

  
	
   

  	
   

  	
  New York, New
  York 10016

  
	
   

  	
   

  	
  Attention:
  Joseph P. Forte, Esq.

  

 

 93
 

 

 

	
  If to Borrower:

  	
   

  	
  c/o Behringer Harvard
  Funds

  
	
   

  	
   

  	
  15601 Dallas
  Parkway, Suite 600

  
	
   

  	
   

  	
  Addison, Texas
  75001

  
	
   

  	
   

  	
  Attention:
  Gerald J. Reihsen, III

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Luce, Forward, Hamilton
  & Scripps LLP

  
	
   

  	
   

  	
  600 West
  Broadway

  
	
   

  	
   

  	
  Suite 2600

  
	
   

  	
   

  	
  San Diego, CA
  92101-3391

  
	
   

  	
   

  	
  Attention:
  Darryl Steinhause, Esq.

  

 

A notice shall be deemed
to have been given:  in the case of hand
delivery, at the time of delivery; in the case of registered or certified mail,
when delivered or the first attempted delivery on a Business Day; or in the
case of expedited prepaid delivery and telecopy, upon the first attempted
delivery on a Business Day.

Section
10.7         Trial
by Jury.

BORROWER AND LENDER HEREBY AGREE NOT TO ELECT A
TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO
TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER
EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER
ACTION ARISING IN CONNECTION THEREWITH. 
THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY
BY BORROWER AND LENDER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE
AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE
ACCRUE.  LENDER IS HEREBY AUTHORIZED TO
FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS
WAIVER BY BORROWER AND LENDER.

Section 10.8         Headings.  The
Article and/or Section headings and the Table of Contents in this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose.

Section 10.9         Severability. 
Wherever possible, each provision of this Agreement shall be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by or invalid under applicable
law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement.

Section 10.10       Preferences. 
Lender shall have the continuing and exclusive right to apply or reverse
and reapply any and all payments by Borrower during the existence of an Event
of Default to any portion of the obligations of Borrower hereunder.  To the extent Borrower makes a payment or
payments to Lender, which payment or proceeds or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, state or

 94
 

 

federal
law, common law or equitable cause, then, to the extent of such payment or
proceeds received, the obligations hereunder or part thereof intended to be
satisfied shall be revived and continue in full force and effect, as if such
payment or proceeds had not been received by Lender.

Section 10.11       Waiver of Notice. 
Borrower shall not be entitled to any notices of any nature whatsoever
from Lender except with respect to matters for which this Agreement or the
other Loan Documents specifically and expressly provide for the giving of
notice by Lender to Borrower and except with respect to matters for which
Borrower is not, pursuant to applicable Legal Requirements, permitted to waive
the giving of notice.  Borrower hereby expressly
waives the right to receive any notice from Lender with respect to any matter
for which this Agreement or the other Loan Documents do not specifically and
expressly provide for the giving of notice by Lender to Borrower.

Section 10.12       Remedies of Borrower.  In
the event that a claim or adjudication is made that Lender or its agents have
acted unreasonably or unreasonably delayed acting in any case where by law or
under this Agreement or the other Loan Documents, Lender or such agent, as the
case may be, has an obligation to act reasonably or promptly, Borrower agrees
that neither Lender nor its agents shall be liable for any monetary damages,
and Borrower’s sole remedies shall be limited to commencing an action seeking
injunctive relief or declaratory judgment. 
The parties hereto agree that any action or proceeding to determine
whether Lender has acted reasonably shall be determined by an action seeking
declaratory judgment.

Section 10.13       Expenses; Indemnity. 
(a)  Borrower covenants and agrees to pay or, if Borrower
fails to pay, to reimburse, Lender upon receipt of written notice from Lender
for all reasonable costs and expenses (including reasonable attorneys’ fees and
disbursements) incurred by Lender in connection with (i) the preparation,
negotiation, execution and delivery of this Agreement and the other Loan
Documents and the consummation of the transactions contemplated hereby and
thereby and all the costs of furnishing all opinions by counsel for Borrower
(including without limitation any opinions requested by Lender as to any legal
matters arising under this Agreement or the other Loan Documents with respect
to the Property); (ii) Borrower’s ongoing performance of and compliance
with Borrower’s respective agreements and covenants contained in this Agreement
and the other Loan Documents on its part to be performed or complied with after
the Closing Date, including, without limitation, confirming compliance with
environmental and insurance requirements; (iii) Lender’s ongoing
performance and compliance with all agreements and conditions contained in this
Agreement and the other Loan Documents on its part to be performed or complied
with after the Closing Date; (iv) except as otherwise provided in this
Agreement, the negotiation, preparation, execution, delivery and administration
of any consents, amendments, waivers or other modifications to this Agreement
and the other Loan Documents and any other documents or matters reasonably
requested by Lender; (v) securing Borrower’s compliance with any requests
made pursuant to the provisions of this Agreement; (vi) the filing and
recording fees and expenses, title insurance and reasonable fees and expenses
of counsel for providing to Lender all required legal opinions, and other
similar expenses incurred in creating and perfecting the Lien in favor of
Lender pursuant to this Agreement and the other Loan Documents;
(vii) enforcing or preserving any rights, in response to third party
claims or the prosecuting or defending of any action or proceeding or other

 95
 

 

litigation,
in each case against, under or affecting Borrower, this Agreement, the other
Loan Documents, the Property, or any other security given for the Loan; and
(viii) enforcing any obligations of or collecting any payments due from
Borrower under this Agreement, the other Loan Documents or with respect to the
Property (including any fees incurred by Servicer in connection with the
transfer of the Loan to a special servicer prior to a Default or Event of
Default) or in connection with any refinancing or restructuring of the credit
arrangements provided under this Agreement in the nature of a “work-out”
or of any insolvency or bankruptcy proceedings; provided, however, that
Borrower shall not be liable for the payment of any such costs and expenses to
the extent the same arise by reason of the gross negligence, illegal acts,
fraud or willful misconduct of Lender.  

(b)           Borrower shall
indemnify, defend and hold harmless Lender from and against any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, claims, costs, expenses and disbursements of any kind or nature
whatsoever (including, without limitation, the reasonable fees and
disbursements of counsel for Lender in connection with any investigative,
administrative or judicial proceeding commenced or threatened, whether or not
Lender shall be designated a party thereto), that may be imposed on, incurred
by, or asserted against Lender in any manner relating to or arising out of
(i) any breach by Borrower of its obligations under, or any material misrepresentation
by Borrower contained in, this Agreement or the other Loan Documents, or
(ii) the use or intended use of the proceeds of the Loan (collectively,
the “Indemnified
Liabilities”); provided, however, that Borrower shall not have any
obligation to Lender hereunder to the extent that such Indemnified Liabilities
arise from the gross negligence, illegal acts, fraud or willful misconduct of
Lender.  To the extent that the
undertaking to indemnify, defend and hold harmless set forth in the preceding
sentence may be unenforceable because it violates any law or public policy,
Borrower shall pay the maximum portion that it is permitted to pay and satisfy
under applicable law to the payment and satisfaction of all Indemnified
Liabilities incurred by Lender.

(c)           Borrower covenants and
agrees to pay for or, if Borrower fails to pay, to reimburse Lender for, any
fees and expenses incurred by any Rating Agency in connection with any Rating
Agency review of the Loan, the Loan Documents or any transaction contemplated thereby
or any consent, approval, waiver or confirmation obtained from such Rating
Agency pursuant to the terms and conditions of this Agreement or any other Loan
Document and Lender shall be entitled to require payment of such fees and
expenses as a condition precedent to the obtaining of any such consent,
approval, waiver or confirmation.

Section 10.14       Schedules Incorporated.  The
Schedules annexed hereto are hereby incorporated herein as a part of this
Agreement with the same effect as if set forth in the body hereof.

Section 10.15       Offsets, Counterclaims
and Defenses.  Any assignee of Lender’s interest in and to
this Agreement, the Note and the other Loan Documents shall take the same free
and clear of all offsets, counterclaims or defenses which are unrelated to such
documents which Borrower may otherwise have against any assignor of such
documents, and no such unrelated counterclaim or defense shall be interposed or
asserted by Borrower in any action or proceeding brought by any such assignee
upon such documents and any such right to interpose

 96
 

 

or
assert any such unrelated offset, counterclaim or defense in any such action or
proceeding is hereby expressly waived by Borrower.

Section 10.16       No Joint Venture or
Partnership; No Third Party Beneficiaries. 
(a)  Borrower and Lender intend that the relationships created
hereunder and under the other Loan Documents be solely that of borrower and
lender.  Nothing herein or therein is
intended to create a joint venture, partnership, tenancy-in-common,
or joint tenancy relationship between Borrower and Lender nor to grant Lender
any interest in the Property other than that of mortgagee, beneficiary or
lender.

(b)           This Agreement and the
other Loan Documents are solely for the benefit of Lender and Borrower and
nothing contained in this Agreement or the other Loan Documents shall be deemed
to confer upon anyone other than Lender and Borrower any right to insist upon
or to enforce the performance or observance of any of the obligations contained
herein or therein.  All conditions to the
obligations of Lender to make the Loan hereunder are imposed solely and
exclusively for the benefit of Lender and no other Person shall have standing
to require satisfaction of such conditions in accordance with their terms or be
entitled to assume that Lender will refuse to make the Loan in the absence of
strict compliance with any or all thereof and no other Person shall under any
circumstances be deemed to be a beneficiary of such conditions, any or all of
which may be freely waived in whole or in part by Lender if, in Lender’s sole
discretion, Lender deems it advisable or desirable to do so.

Section 10.17       Publicity.  All
news releases, publicity or advertising by Borrower or its Affiliates through
any media intended to reach the general public which refers to the Loan
Documents or the financing evidenced by the Loan Documents, to Lender, or any
of their Affiliates shall be subject to the prior written approval of Lender.

Section 10.18       Waiver of Marshalling of
Assets.  To the fullest extent permitted by law,
Borrower, for itself and its successors and assigns, waives all rights to a
marshalling of the assets of Borrower, Borrower’s partners and others with
interests in Borrower, and of the Property, or to a sale in inverse order of
alienation in the event of foreclosure of the Security Instrument, and agrees
not to assert any right under any laws pertaining to the marshalling of assets,
the sale in inverse order of alienation, homestead exemption, the
administration of estates of decedents, or any other matters whatsoever to
defeat, reduce or affect the right of Lender under the Loan Documents to a sale
of the Property for the collection of the Debt without any prior or different
resort for collection or of the right of Lender to the payment of the Debt out
of the net proceeds of the Property in preference to every other claimant
whatsoever.  

Section 10.19       Waiver of Counterclaim. 
Borrower hereby waives the right to assert a counterclaim, other than a
compulsory counterclaim, in any action or proceeding brought against it by
Lender or its agents.

Section 10.20       Conflict; Construction
of Documents; Reliance.  In the event of any conflict between the
provisions of this Agreement and any of the other Loan Documents, the
provisions of this Agreement shall control. 
The parties hereto acknowledge that they were

 97
 

 

represented
by competent counsel in connection with the negotiation, drafting and execution
of the Loan Documents and that such Loan Documents shall not be subject to the
principle of construing their meaning against the party which drafted
same.  Borrower acknowledges that, with
respect to the Loan, Borrower shall rely solely on its own judgment and
advisors in entering into the Loan without relying in any manner on any
statements, representations or recommendations of Lender or any parent,
subsidiary or Affiliate of Lender. 
Lender shall not be subject to any limitation whatsoever in the exercise
of any rights or remedies available to it under any of the Loan Documents or
any other agreements or instruments which govern the Loan by virtue of the
ownership by it or any parent, subsidiary or Affiliate of Lender of any equity
interest any of them may acquire in Borrower, and Borrower hereby irrevocably
waives the right to raise any defense or take any action on the basis of the
foregoing with respect to Lender’s exercise of any such rights or
remedies.  Borrower acknowledges that
Lender engages in the business of real estate financings and other real estate
transactions and investments which may be viewed as adverse to or competitive
with the business of Borrower or its Affiliates.

Section 10.21       Brokers and Financial
Advisors.  Borrower hereby represents that it has dealt
with no financial advisors, brokers, underwriters, placement agents, agents or finders
in connection with the transactions contemplated by this Agreement other than
NorthMarq Capital.  Borrower hereby
agrees to indemnify, defend and hold Lender harmless from and against any and
all claims, liabilities, costs and expenses of any kind (including Lender’s
reasonable attorneys’ fees and expenses) in any way relating to or arising from
a claim by any Person that such Person acted on behalf of Borrower in
connection with the transactions contemplated herein.  The provisions of this Section 10.21 shall survive the
expiration and termination of this Agreement and the payment of the Debt.

Section 10.22       Prior Agreements.  This
Agreement and the other Loan Documents contain the entire agreement of the
parties hereto and thereto in respect of the transactions contemplated hereby
and thereby, and all prior agreements or understandings among or between such
parties, whether oral or written, are superseded by the terms of this Agreement
and the other Loan Documents and unless specifically set forth in a writing
contemporaneous herewith the terms, conditions and provisions of such prior
agreement do not survive execution of this Agreement.

Section 10.23       Transfer of Loan.  In the event that Lender transfers the Loan,
Borrower shall continue to make payments at the place set forth in the Note
(and its obligation to make such payments shall be deemed satisfied upon the
making of such payments) until such time that Borrower is notified in writing
by Lender that payments are to be made at another place.

Section 10.24       Joint and Several
Liability.  If Borrower consists of more than
one (1) Person the obligations and liabilities of each Person shall be
joint and several.  

Section 10.25       Attorneys
Fees.  Notwithstanding any
provision to the contrary in this Agreement or any of the Loan Documents,
whenever Borrower or any Guarantor is

 98
 

 

obligated in any of the
Loan Documents, including the Guaranty or indemnity agreement, to pay the legal
fees and expenses (however phrased) of Lender or any other party, such obligations
shall mean the reasonable legal fees actually incurred by Lender or such other
party at the standard hourly rates of Lender’s or such party’s legal counsel
and the out-of-pocket expenses actually incurred by Lender or such other party,
and not the statutory legal fees specified in O.C.G.A. Section
13-1-11(a)(2).  Neither Borrower nor
Guarantor shall be liable under any circumstances for any additional legal fees
or expenses under O.C.G.A. Section 13-1-11(a)(2), and to the extent Lender or
such other party may be permitted to charge or receive additional legal fees or
expenses under O.C.G.A. Section 13-1-11(a)(2), Lender and such other party
hereby waive such right.

(THE
BALANCE OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.)

 99

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed by their duly authorized
representatives, all as of the day and year first above written.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD 945 EAST PACES

  FERRY ROAD, LLC, a Delaware limited liability

  company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: Gerald J. Reihsen, III

  
	
   

  	
  Title: Secretary

  

 

 

	
  

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  KEYBANK NATIONAL ASSOCIATION, a

  national association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

SCHEDULE
I

REA

Agreement between City of Atlanta and Resurgens Plaza South
Associates, dated May 11, 1987, recorded in Deed Book 10812, Page 1 in the
Fulton County, Georgia real property records.

 I-1

 

SCHEDULE
II

Rent Roll

 II-1

 

SCHEDULE
III

(Required Repairs—Deadlines For Completion)

	
  Required Repair:

  	
   

  	
  Time to complete:

  
	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  

 

 III-1

 

SCHEDULE
IV

(Organizational Chart of
Borrower)

 IV-1

 

SCHEDULE
V

(Exceptions to
Representations)

SUMMARY OF ACTIVE SUBLEASES

AS OF NOVEMBER 30, 2006

1.             Fisher & Phillips

a.             Brosnahan, Castan,
Lecca & Spillers LLC dated May 3, 2002 – 2,443 rentable square feet (Suite
1770)

b.             Crowther & Ward,
LLC dated October 24, 2003 – 1,243 rentable square feet (Suite 1755)

c.             Georgia Foundation
for Independent Colleges dated June 15, 2001 – 1,211 rentable square feet
(Suite 1730)

2.             SSI, Inc.  (Spencer Stuart)

a.             Raley & Sandifer,
P.C. dated March 11, 2002 – 3,382 rentable square feet (26th floor)

b.             Hewitt, Katz, Stepp
& Wright dated April 2001 – 3,222 rentable square feet (Suite 2610)

SUMMARY
OF OUTSTANDING TI OBLIGATIONS

1.                                       RSUI = $2,740,776.00

2.                                       RSUI = $100,000.00

3.                                       RSUI = $119,364,26

4.                                       Jack Phillips = $17,000.00

5.                                       Epstein Becker & Green =$204,482.19

6.                                       Fisher & Phillips =$119,857.90

 VI-1

 

SCHEDULE
VI

(Tenant Improvement Obligations)

	
  NAME OF TENANT

  	
   

  	
  NATURE OF

  IMPROVEMENTS

  	
   

  	
  AMOUNT OF

  ALLOWANCE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RSUI

  	
   

  	
  Pursuant
  to 11th Amendment

  	
   

  	
  $

  	
  2,740,776.00

  	
   

  
	
  RSUI

  	
   

  	
  Bathroom
  Work

  	
   

  	
  $

  	
  100,000.00

  	
   

  
	
  RSUI

  	
   

  	
  Pursuant
  to 10th Amendment

  	
   

  	
  $

  	
  119,364.26

  	
   

  
	
  JACK PHILLIPS

  	
   

  	
  Carpet
  & Paint

  	
   

  	
  $

  	
  17,000.00

  	
   

  
	
  EPSTEIN BECKER &
  GREEN

  	
   

  	
  TI

  	
   

  	
  $

  	
  204,482.19

  	
   

  
	
  FISHER & PHILLIPS`

  	
   

  	
  TI

  	
   

  	
  $

  	
  119, 857.90

  	
   

  
	
  TOTAL:

  	
   

  	
   

  	
   

  	
  $

  	
  3,301,480.35

  	
   

  

 

 III-2

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