Document:

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                                                                   EXHIBIT 10.13

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                              AMENDED AND RESTATED

                                CREDIT AGREEMENT

                                      among

                            TRIZEC PROPERTIES, INC.,
                                  as BORROWER,

                                VARIOUS LENDERS,
                                       and

                      DEUTSCHE BANK TRUST COMPANY AMERICAS,
                             as ADMINISTRATIVE AGENT

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

                          Dated as of December 18, 2002

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

                         DEUTSCHE BANK SECURITIES INC.,
                              as SOLE LEAD ARRANGER
                          and SOLE BOOK RUNNING MANAGER

                             BANK OF AMERICA, N.A.,
                              as SYNDICATION AGENT

                                       and

                                BANK OF MONTREAL,

                             THE BANK OF NOVA SCOTIA

                                       and

                                ING CAPITAL LLC,
                           as CO-DOCUMENTATION AGENTS

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                                TABLE OF CONTENTS
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<S>               <C>                                                                                           <C>
SECTION 1.        Amount and Terms of Credit......................................................................1

         1.01     Commitments to Extend Loans.....................................................................1
         1.02     Minimum Amount of Each Borrowing................................................................3
         1.03     Notice of Borrowing.............................................................................4
         1.04     Disbursement of Funds...........................................................................5
         1.05     Notes...........................................................................................5
         1.06     Conversions.....................................................................................7
         1.07     Pro Rata Borrowings.............................................................................8
         1.08     Interest........................................................................................8
         1.09     Interest Periods................................................................................9
         1.10     Increased Costs, Illegality, etc...............................................................10
         1.11     Compensation...................................................................................11
         1.12     Lending Offices................................................................................12
         1.13     Requested Designation of other Lending Offices.................................................12
         1.14     Replacement of Lenders.........................................................................12

SECTION 2.        Letters of Credit..............................................................................13

         2.01     Letters of Credit..............................................................................13
         2.02     Maximum Letter of Credit Outstandings; Final Maturities........................................15
         2.03     Letter of Credit Requests; Minimum Stated Amount...............................................15
         2.04     Letter of Credit Participations................................................................16
         2.05     Agreement to Repay Letter of Credit Drawings...................................................17
         2.06     Increased Costs................................................................................18

SECTION 3.        Commitment Commission; Other Fees; Reductions of Commitment....................................19

         3.01     Fees...........................................................................................19
         3.02     Voluntary Termination of Unutilized Commitments................................................20
         3.03     Mandatory Reduction of Commitments.............................................................20

SECTION 4.        Prepayments; Payments; Taxes...................................................................21

         4.01     Voluntary Prepayments..........................................................................21
         4.02     Mandatory Repayments...........................................................................21
         4.03     Method and Place of Payment....................................................................23
         4.04     Net Payments...................................................................................23

SECTION 5.        Conditions Precedent to the Effective Date.....................................................26

         5.01     Execution of Agreement.........................................................................26
         5.02     Opinion of Counsel.............................................................................26
         5.03     Corporate Documents; Proceedings; etc..........................................................26
         5.04     Adverse Change, etc............................................................................26
         5.05     Litigation.....................................................................................27
</TABLE>
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<TABLE>
<S>               <C>                                                                                            <C>

         5.06     Financial Statements...........................................................................27
         5.07     Subsidiaries Guaranty..........................................................................27
         5.08     Solvency Certificate...........................................................................27
         5.09     Borrowing Base Certificate.....................................................................27
         5.10     Subordination Agreement........................................................................27
         5.11     Property Information...........................................................................27
         5.12     Security Interests.............................................................................27
         5.13     Insurance......................................................................................29
         5.14     Material Leases................................................................................29
         5.15     Fees, etc......................................................................................29

SECTION 6.        Conditions Precedent to All Credit Events......................................................30

         6.01     Effective Date.................................................................................30
         6.02     No Default; Representations and Warranties.....................................................30
         6.03     Notice of Borrowing; Letter of Credit Request..................................................30

SECTION 7.        Representations, Warranties and Agreements.....................................................30

         7.01     Company and Other Status.......................................................................31
         7.02     Company Power and Authority....................................................................31
         7.03     No Violation...................................................................................31
         7.04     Governmental Approvals.........................................................................31
         7.05     Financial Statements; Financial Condition; Undisclosed Liabilities; Projections, etc...........32
         7.06     Litigation.....................................................................................33
         7.07     True and Complete Disclosure...................................................................33
         7.08     Use of Proceeds; Margin Regulations............................................................33
         7.09     Tax Returns and Payments.......................................................................33
         7.10     Subsidiaries...................................................................................34
         7.11     Compliance with Applicable Laws................................................................34
         7.12     Investment Company Act.........................................................................34
         7.13     Public Utility Holding Company Act.............................................................34
         7.14     Status as a REIT...............................................................................34
         7.15     Compliance with ERISA..........................................................................34
         7.16     Environmental Compliance.......................................................................35
         7.17     Patents, Trademarks, etc.......................................................................36
         7.18     No Default.....................................................................................36
         7.19     Licenses, etc..................................................................................36
         7.20     No Burdensome Restrictions.....................................................................37
         7.21     Labor Matters..................................................................................37
         7.22     Insurance......................................................................................37
         7.23     Capitalization.................................................................................37
         7.24     Mortgaged Properties...........................................................................38
         7.25     Sears Tower Memorandum.........................................................................40

SECTION 8.        Affirmative Covenants..........................................................................40

         8.01     Information Covenants..........................................................................40
</TABLE>

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<TABLE>
<S>               <C>                                                                                            <C>
         8.02     Books, Records, Inspections and Annual Meetings................................................45
         8.03     Maintenance of Property; Insurance; Casualty and Condemnation; Restoration; and Renovations....46
         8.04     Conduct of Business; Co-Borrower; Subsidiary Guarantors........................................46
         8.05     Compliance with Applicable Laws and Authorizations.............................................47
         8.06     Company Existence and Franchises, etc..........................................................47
         8.07     Performance of Obligations.....................................................................47
         8.08     Payment of Taxes...............................................................................47
         8.09     Use of Proceeds................................................................................48
         8.10     End of Fiscal Years; Fiscal Quarters...........................................................48
         8.11     Interest Rate Protection.......................................................................48
         8.12     REIT Requirements..............................................................................48
         8.13     Addition and Release of Mortgaged Properties and Subsidiary Guarantors.........................48
         8.14     Appraisals.....................................................................................51
         8.15     Mortgaged Properties...........................................................................52

SECTION 9.        Negative Covenants.............................................................................54

         9.01     Liens..........................................................................................54
         9.02     Consolidation, Merger, Sale of Assets, etc.....................................................56
         9.03     Dividends......................................................................................57
         9.04     Indebtedness...................................................................................58
         9.05     Limitation on Modifications of Certificate of Incorporation, By-Laws and Certain Other
                  Agreements; etc................................................................................59
         9.06     Investments....................................................................................59
         9.07     Negative Pledge Clauses; etc...................................................................61
         9.08     Transactions with Affiliates...................................................................61
         9.09     Management Agreements..........................................................................62
         9.10     Consolidated Total Indebtedness as a Percentage of Consolidated Total Asset Value..............62
         9.11     Consolidated Net Worth.........................................................................62
         9.12     Consolidated Interest Coverage Ratio...........................................................62
         9.13     Consolidated Fixed Charge Coverage Ratio.......................................................63
         9.14     Mortgaged Property Coverage Ratio..............................................................63
         9.15     Limitation on Certain Restrictions on Subsidiaries.............................................63
         9.16     Affiliate Debt and Subordination Agreement.....................................................63
         9.17     Sears Tower....................................................................................63
         9.18     Mortgaged Properties...........................................................................64

SECTION 10.       Events of Default..............................................................................65

         10.01    Payments.......................................................................................65
         10.02    Representations, etc...........................................................................65
         10.03    Covenants......................................................................................65
         10.04    Default Under Other Agreements.................................................................65
         10.05    Bankruptcy, etc................................................................................66
         10.06    Judgments......................................................................................66
         10.07    ERISA..........................................................................................66
</TABLE>

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<TABLE>
<S>               <C>                                                                                          <C>
         10.08    Guaranties, etc................................................................................67
         10.09    Change of Control..............................................................................67
         10.10    Stock Exchange Listing.........................................................................67

SECTION 11.       Definitions....................................................................................68

         11.01    Defined Terms..................................................................................68

SECTION 12.       The Administrative Agent......................................................................101

         12.01    Appointment...................................................................................101
         12.02    Nature of Duties..............................................................................101
         12.03    Lack of Reliance on the Administrative Agent..................................................102
         12.04    Certain Rights of the Administrative Agent....................................................102
         12.05    Reliance......................................................................................102
         12.06    Indemnification...............................................................................102
         12.07    The Administrative Agent in its Individual Capacity...........................................103
         12.08    Holders.......................................................................................103
         12.09    Resignation by the Administrative Agent; Removal of the Administrative Agent..................103

SECTION 13.       Miscellaneous.................................................................................104

         13.01    Payment of Expenses, etc......................................................................104
         13.02    Right of Setoff...............................................................................105
         13.03    Notices.......................................................................................106
         13.04    Benefit of Agreement; Assignments; Participations.............................................107
         13.05    No Waiver; Remedies Cumulative................................................................109
         13.06    Payments Pro Rata.............................................................................110
         13.07    Calculations; Computations....................................................................110
         13.08    GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL........................111
         13.09    Counterparts..................................................................................112
         13.10    Effectiveness.................................................................................112
         13.11    Headings Descriptive..........................................................................113
         13.12    Amendment or Waiver; etc......................................................................113
         13.13    Survival......................................................................................114
         13.14    Domicile of Loans.............................................................................114
         13.15    Register......................................................................................114
         13.16    Confidentiality...............................................................................115
         13.17    Limitation on Additional Amounts, etc.........................................................115
         13.18    No Third Party Beneficiary....................................................................116
         13.19    Waiver of Sovereign Immunity..................................................................116
         13.20    Judgment Currency.............................................................................116
         13.21    Maximum Rate..................................................................................117
         13.22    Temporary Guaranty............................................................................117
         13.23    Agreement Among Signing Lenders...............................................................117
</TABLE>

                                      -iv-
<PAGE>
         AMENDED AND RESTATED CREDIT AGREEMENT, dated as of December 18, 2002,
among TRIZEC PROPERTIES, INC., a Delaware corporation (the "Borrower"), the
Lenders party hereto from time to time, and DEUTSCHE BANK TRUST COMPANY
AMERICAS, as Administrative Agent (in such capacity, the "Administrative Agent")
(all capitalized terms used herein and defined in Section 11 are used herein as
therein defined).

                              W I T N E S S E T H:

         WHEREAS, the Borrower (formerly known as TrizecHahn (USA) Corporation),
TrizecHahn Holdings Ltd., as Temporary Guarantor, the Lenders and the
Administrative Agent (formerly known as Bankers Trust Company) entered into that
certain Credit Agreement, dated as of December 12, 2001, as modified pursuant to
that certain Waiver and Amendment Agreement, dated as of October 22, 2002 (as so
modified, the "Existing Agreement"), and certain other documents (the "Existing
Credit Documents") in connection therewith;

         WHEREAS, the parties hereto desire to amend and restate the Existing
Agreement as set forth herein, and to amend and supplement the Existing Credit
Documents in connection therewith;

         WHEREAS, the Mortgaged Property Owners desire to grant liens and
security interests on the Initial Mortgaged Properties and certain other
Collateral in favor of the Administrative Agent for the benefit of the Lenders
to secure the Guaranteed Obligations; and

         WHEREAS, the making of the Loans and the issuance of Letters of Credit
contemplated by this Agreement are of substantial benefit to the Credit Parties.

         NOW, THEREFORE, IT IS AGREED:

         SECTION 1.  Amount and Terms of Credit.

         1.01     Commitments to Extend Loans. (a) Subject to and upon the terms
and conditions set forth herein, each Lender severally agrees to make, at any
time and from time to time on and after the Effective Date and prior to the
Maturity Date, a revolving loan or revolving loans (each a "Revolving Loan" and,
collectively, the "Revolving Loans") to the Borrower, which Revolving Loans (i)
shall be made and maintained in Dollars, (ii) shall, at the option of the
Borrower, be incurred and maintained as, and/or converted into, Base Rate Loans
or Eurodollar Rate Loans, provided that, except as otherwise specifically
provided in Section 1.10 (b), all Revolving Loans comprising the same Borrowing
shall at all times be of the same Type, (iii) may be repaid and reborrowed in
accordance with the provisions hereof, (iv) shall not exceed for any Lender at
any time outstanding that aggregate principal amount which, when added to the
sum of (x) the aggregate principal amount of all other Revolving Loans made by
such Lender and then outstanding and (y) the product of (A) such Lender's
Percentage and (B) the sum of (1) the aggregate amount of all Letter of Credit
Outstandings (exclusive of Unpaid Drawings which are repaid with the proceeds
of, and simultaneously with the incurrence

<PAGE>

of, Revolving Loans) at such time and (2) the aggregate principal amount of all
Swingline Loans (exclusive of Swingline Loans which are repaid with the proceeds
of, and simultaneously with the incurrence of, Revolving Loans) then
outstanding, equals the Commitment of such Lender at such time, and (v) shall
not exceed for all of the Lenders at any time outstanding either (x) that
aggregate principal amount which, when added to the sum of (I) the aggregate
amount of all Letter of Credit Outstandings (exclusive of Unpaid Drawings which
are repaid with the proceeds of, and simultaneously with the incurrence of,
Revolving Loans) at such time and (II) the aggregate principal amount of all
Swingline Loans (exclusive of Swingline Loans which are repaid with the proceeds
of, and simultaneously with the incurrence of, Revolving Loans) then outstanding
equals the Borrowing Base Amount at such time (based on the Borrowing Base
Certificate last delivered or then being delivered) or (y) that aggregate
principal amount which, when added to the sum of (I) the aggregate amount of all
Letter of Credit Outstandings (exclusive of Unpaid Drawings which are repaid
with the proceeds of, and simultaneously with the incurrence of, Revolving
Loans) at such time and (II) the aggregate principal amount of all Swingline
Loans (exclusive of Swingline Loans which are paid with the proceeds of, and
simultaneously with the incurrence of, Revolving Loans) then outstanding, equals
the Total Commitment at such time.

         (b)      Subject to and upon the terms and conditions set forth herein,
the Swingline Lender agrees to make, at any time and from time to time on and
after the Effective Date and prior to the Swingline Expiry Date, a revolving
loan or revolving loans (each a "Swingline Loan" and, collectively, the
"Swingline Loans") to the Borrower, which Swingline Loans (i) shall be made and
maintained in Dollars and as Base Rate Loans, (ii) may be repaid and reborrowed
in accordance with the provisions hereof, (iii) shall not exceed at any time
outstanding either (x) that aggregate principal amount which, when added to the
sum of (I) the aggregate principal amount of all Revolving Loans then
outstanding and (II) the aggregate amount of all Letter of Credit Outstandings
(exclusive of Unpaid Drawings which are repaid with the proceeds of, and
simultaneously with the incurrence of, Swingline Loans) at such time equals the
Borrowing Base Amount at such time (based on the Borrowing Base Certificate last
delivered or then being delivered) or (y) that aggregate principal amount which,
when added to the sum of (I) the aggregate amount of all Letter of Credit
Outstandings (exclusive of Unpaid Drawings which are repaid with the proceeds
of, and simultaneously with the incurrence of, Swingline Loans) at such time and
(II) the aggregate principal amount of all Revolving Loans then outstanding,
equals the Total Commitment at such time, and (iv) shall not exceed in aggregate
principal amount at any time outstanding the Maximum Swingline Amount.
Notwithstanding anything to the contrary contained in this Section 1.01(b), (x)
the Swingline Lender shall not be obligated to make any Swingline Loans at a
time when a Lender Default exists unless the Swingline Lender has entered into
arrangements satisfactory to it and the Borrower to eliminate the Swingline
Lender's risk with respect to the Defaulting Lender's or Lenders' participation
in such Swingline Loans, including by cash collateralizing such Defaulting
Lender's or Lenders' Percentage of the outstanding Swingline Loans and (y) the
Swingline Lender shall not make any Swingline Loan after it has received written
notice from the Borrower or the Required Lenders stating that a Default or an
Event of Default exists and is continuing until such time as the Swingline
Lender shall have received written notice (I) of rescission of all such notices
from the party or parties originally delivering such notice or (II) of the
waiver of such Default or Event of Default by the Required Lenders.

                                      -2-
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         (c)      On any Business Day, the Swingline Lender may, in its sole
discretion, give notice to the Lenders that the Swingline Lender's outstanding
Swingline Loans shall be funded with one or more Borrowings of Revolving Loans
(provided that such notice shall be deemed to have been automatically given upon
the occurrence of a Default or an Event of Default under Section 10.05 or upon
the exercise of any of the remedies provided in the last paragraph of Section
10), in which case one or more Borrowings of Revolving Loans constituting Base
Rate Loans (each such Borrowing, a "Mandatory Borrowing") shall be made on the
immediately succeeding Business Day by all Lenders pro rata based on each
Lender's Percentage (determined before giving effect to any termination of the
Commitments pursuant to the last paragraph of Section 10) and the proceeds
thereof shall be applied directly by the Swingline Lender to repay the Swingline
Lender for such outstanding Swingline Loans (although, unless a Default or an
Event of Default then exists, the Swingline Lender will not exercise such right
with respect to any outstanding Swingline Loans prior to the fourth Business Day
after the date that such Swingline Loan was made or if the Administrative Agent
has theretofore received a Notice of Borrowing the proceeds of which Borrowing
will be used to repay such outstanding Swingline Loans on or prior to the date
on which such Swingline Loans are due). Each Lender hereby irrevocably agrees to
make Revolving Loans upon one Business Day's notice pursuant to each Mandatory
Borrowing in the amount and in the manner specified in the preceding sentence
and on the date specified in writing by the Swingline Lender notwithstanding (i)
the amount of the Mandatory Borrowing may not comply with the Minimum Borrowing
Amount otherwise required hereunder, (ii) whether any conditions specified in
Section 6 are then satisfied, (iii) whether a Default or an Event of Default
then exists, (iv) the date of such Mandatory Borrowing and (v) the amount of the
Total Commitment or Borrowing Base Amount at such time. In the event that any
Mandatory Borrowing cannot for any reason be made on the date otherwise required
above (including, without limitation, as a result of the commencement of a
proceeding under the Bankruptcy Code with respect to the Borrower), then each
Lender hereby agrees that it shall forthwith purchase (as of the date the
Mandatory Borrowing would otherwise have occurred, but adjusted for any payments
received from the Borrower on or after such date and prior to such purchase)
from the Swingline Lender such participations in the outstanding Swingline Loans
as shall be necessary to cause the Lenders to share in such Swingline Loans
ratably based upon their respective Percentages (determined before giving effect
to any termination of the Commitments pursuant to the last paragraph of Section
10), provided that (x) all interest payable on the Swingline Loans shall be for
the account of the Swingline Lender until the date as of which the respective
participation is required to be purchased and, to the extent attributable to the
purchased participation, shall be payable to the participant from and after such
date and (y) at the time any purchase of participations pursuant to this
sentence is actually made, the purchasing Lender shall be required to pay the
Swingline Lender interest on the principal amount of the participation so
purchased for each day from and including the day upon which the Mandatory
Borrowing would otherwise have occurred to but excluding the date of payment for
such participation, at the overnight Federal Funds Rate for the first three days
and at the rate otherwise applicable to Revolving Loans maintained as Base Rate
Loans hereunder for each day thereafter.

         1.02     Minimum Amount of Each Borrowing. The aggregate principal
amount of each Borrowing of Revolving Loans and Swingline Loans shall not be
less than the Minimum Borrowing Amount applicable thereto. More than one
Borrowing may occur on the same date,

                                      -3-
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but at no time shall there be outstanding more than eight Borrowings of
Eurodollar Rate Loans in the aggregate (or such greater number as may be
acceptable to the Administrative Agent).

         1.03     Notice of Borrowing. (a) Whenever the Borrower desires to
incur Revolving Loans hereunder, it shall give the Administrative Agent at the
Notice Office at least one Business Day's prior written notice (or telephonic
notice promptly confirmed in writing) of each Base Rate Loan and at least three
Business Days' prior written notice (or telephonic notice promptly confirmed in
writing) of each Eurodollar Rate Loan to be incurred hereunder, provided that
any such notice shall be deemed to have been given on a certain day only if
given before 12:00 Noon (New York time) on such day. Each such written notice or
written confirmation of telephonic notice (each, a "Notice of Borrowing"),
except as otherwise expressly provided in Section 1.10, shall be irrevocable and
shall be given by the Borrower in the form of Exhibit A, appropriately completed
to specify (i) the aggregate principal amount of the Revolving Loans to be
incurred pursuant to such Borrowing, (ii) the date of such Borrowing (which
shall be a Business Day), (iii) whether such Revolving Loans are to be incurred
as Base Rate Loans or Eurodollar Rate Loans and, if Eurodollar Rate Loans, the
initial Interest Period to be applicable thereto, (iv) the Borrowing Base Amount
at such time (based on the Borrowing Base Certificate last delivered or then
being delivered) and (v) the sum of (I) the aggregate principal amount of all
Loans outstanding at such time (after giving effect to the proposed Borrowing)
and (II) the aggregate amount of all Letter of Credit Outstandings at such time.
The Administrative Agent shall promptly give each Lender notice of such proposed
Borrowing, of such Lender's proportionate share thereof and of the other matters
required by the immediately preceding sentence to be specified in the Notice of
Borrowing.

         (b)(i)   Whenever the Borrower desires to incur Swingline Loans
hereunder, the Borrower shall give the Swingline Lender no later than 1:00 P.M.
(New York time) on the date that a Swingline Loan is to be incurred hereunder,
written notice or telephonic notice promptly confirmed in writing of each
Swingline Loan to be incurred hereunder. Each such notice shall be in the form
of a Notice of Borrowing (appropriately completely) and shall be irrevocable and
specify in each case (A) the date of Borrowing (which shall be a Business Day),
(B) the aggregate principal amount of the Swingline Loans to be incurred
pursuant to such Borrowing, (C) the Borrowing Base Amount at such time (based on
the Borrowing Base Certificate last delivered or then being delivered) and (D)
the sum of (I) the aggregate principal amount of all Loans outstanding at such
time (after giving effect to the proposed Borrowing) and (II) the aggregate
amount of all Letter of Credit Outstandings at such time.

         (ii)     Mandatory Borrowings shall be made upon the notice specified
in Section 1.01(c), with the Borrower irrevocably agreeing, by its incurrence of
any Swingline Loan, to the making of the Mandatory Borrowings as set forth in
Section 1.01(c).

         (c)      Without in any way limiting the obligation of the Borrower to
confirm in writing any telephonic notice permitted to be given hereunder of any
Borrowing or prepayment of Loans or any revocation of any Letter of Credit
Request, the Administrative Agent, the Swingline Lender or the applicable
Issuing Lender, as the case may be, may act without liability upon the basis of
telephonic notice of Borrowing, prepayment or revocation, as the case may be,
believed by the Administrative Agent, the Swingline Lender or the applicable
Issuing Lender, as the case may be, in good faith to be from the chairman of the
board, the chief executive officer,

                                      -4-
<PAGE>

the president or a Senior Financial Officer of the Borrower, or from any other
authorized officer of the Borrower designated in writing by any of the foregoing
officers of the Borrower to the Administrative Agent as being authorized to give
such notices, prior to receipt of written confirmation. In each such case, the
Borrower hereby waives the right to dispute the Administrative Agent's, the
Swingline Lender's or the applicable Issuing Lender's record of the terms of
such telephonic notice of such Borrowing or prepayment of Loans or such
revocation of a Letter of Credit Request, as the case may be, absent manifest
error.

         1.04     Disbursement of Funds. No later than 12:00 Noon (New York
time) on the date specified in each Notice of Borrowing (or (x) in the case of
Swingline Loans, no later than 3:00 P.M. (New York time) on the date specified
pursuant to Section 1.03(b)(i) or (y) in the case of Mandatory Borrowings, no
later than 1:00 P.M. (New York time) on the date specified in Section 1.01(c),
each Lender will make available its pro rata portion (determined in accordance
with Section 1.07) of each such Borrowing requested to be made on such date (or,
in the case of Swingline Loans, the Swingline Lender will make available the
full amount thereof. All such amounts will be made available in Dollars and in
immediately available funds at the Payment Office, and, except for Revolving
Loans made pursuant to a Mandatory Borrowing, the Administrative Agent will make
available to the Borrower at the Payment Office, the aggregate of the amounts so
made available by the Lenders to the extent of funds actually received by the
Administrative Agent. Unless the Administrative Agent shall have been notified
by any Lender prior to the date of Borrowing that such Lender does not intend to
make available to the Administrative Agent such Lender's portion of any
Borrowing to be made on such date, the Administrative Agent may assume that such
Lender has made such amount available to the Administrative Agent on such date
of Borrowing and the Administrative Agent may (but shall not be obligated to),
in reliance upon such assumption, make available to the Borrower a corresponding
amount. If such corresponding amount is not in fact made available to the
Administrative Agent by such Lender, the Administrative Agent shall be entitled
to recover such corresponding amount on demand from such Lender. If such Lender
does not pay such corresponding amount forthwith upon the Administrative Agent's
demand therefor, the Administrative Agent shall promptly notify the Borrower and
the Borrower shall pay such corresponding amount to the Administrative Agent one
Business Day after the Administrative Agent's demand therefor. The
Administrative Agent shall also be entitled to recover on demand from such
Lender or the Borrower, as the case may be, interest on such corresponding
amount in respect of each day from the date such corresponding amount was made
available by the Administrative Agent to the Borrower until the date such
corresponding amount is recovered by the Administrative Agent, at a rate per
annum equal to (i) if recovered from such Lender, at the overnight Federal Funds
Rate for the first three days and at the interest rate otherwise applicable to
such Loans for each day thereafter, and (ii) if recovered from the Borrower, the
rate of interest applicable to the respective Borrowing, as determined pursuant
to Section 1.08. Nothing in this Section 1.04 shall be deemed to relieve any
Lender from its obligation to make Loans hereunder or to prejudice any rights
which the Borrower may have against any Lender as a result of any failure by
such Lender to make Loans hereunder.

         1.05     Notes. (a) Subject to the provisions of Section 1.05(e), the
Borrower's obligation to pay the principal of, and interest on, the Loans made
by each Lender which is a party to the Existing Agreement are and shall continue
to be evidenced by the notes (each an "Existing Note" and collectively, the
"Existing Notes") executed and delivered by the Borrower

                                      -5-
<PAGE>

to such Lender pursuant to the Existing Agreement and the Loans made by any
other Lender shall be evidenced (i) if Revolving Loans, by a promissory note
duly executed and delivered by the Borrower substantially in the form of Exhibit
B-1, with blanks appropriately completed in conformity herewith (each a
"Revolving Note" and, collectively, the "Revolving Notes") and (ii) if Swingline
Loans, by a promissory note duly executed and delivered by the Borrower
substantially in the form of Exhibit B-2, with blanks appropriately completed in
conformity herewith (the "Swingline Note"). The Borrower hereby reaffirms its
obligations under the Existing Notes and the parties agree that (i) the Existing
Notes shall constitute Revolving Notes and Swingline Notes, as applicable, for
all purposes hereunder and under the other Credit Documents, (ii) anything in
the Existing Notes to the contrary notwithstanding, interest thereon shall be
paid at the rates and at the times provided in Section 1.08 and (iii) the
Existing Notes shall be entitled to the benefits of this Agreement and the other
Credit Documents and secured by the Security Documents. Notwithstanding the
foregoing, the Borrower shall execute and deliver a Note in replacement of an
Existing Note to any Lender which requests the same.

         (b)      The Revolving Note issued to each Lender shall (i) be executed
by the Borrower (or if the Co-Borrower is formed in accordance with Section
8.04(b), by the Borrower and Co-Borrower on a joint and several basis in
accordance with Section 1.05(f)), (ii) be payable to such Lender or its
registered assigns and be dated the date of issuance, (iii) be in a stated
principal amount equal to the Commitment of such Lender (or if issued after the
termination thereof, be in a stated principal amount equal to the outstanding
principal amount of the Revolving Loans of such Lender on the date of the
issuance thereof) and be payable in Dollars in the principal amount of Revolving
Loans evidenced thereby from time to time, (iv) mature on the Maturity Date, (v)
bear interest as provided in the appropriate clause of Section 1.08 in respect
of the Base Rate Loans and Eurodollar Rate Loans, as the case may be, evidenced
thereby, (vi) be subject to voluntary prepayment as provided in Section 4.01,
and mandatory repayment as provided in Section 4.02, and (vii) be entitled to
the benefits of this Agreement and the other Credit Documents and secured by the
Security Documents.

         (c)      The Swingline Note issued to the Swingline Lender shall (i) be
executed by the Borrower (or if the Co-Borrower is formed in accordance with
Section 8.04(b), by the Borrower and the Co-Borrower on a joint and several
basis in accordance with Section 1.05(f)), (ii) be payable to the order of the
Swingline Lender and be dated the date of issuance, (iii) be in a stated
principal amount equal to the Maximum Swingline Amount and be payable in Dollars
in the principal amount of Swingline Loans evidenced thereby from time to time,
(iv) mature on the Swingline Expiry Date, (v) bear interest as provided in the
appropriate clause of Section 1.09 in respect of the Base Rate Loans evidenced
thereby, (vi) be subject to voluntary prepayment as provided in Section 4.01,
and mandatory repayment as provided in Section 4.02, and (vii) be entitled to
the benefits of this Agreement and the other Credit Documents and secured by the
Security Documents.

         (d)      Each Lender will note on its internal records the amount of
each Loan made by it and each payment in respect thereof and will prior to any
transfer of any of its Notes endorse on the reverse side thereof the outstanding
principal amount of Loans evidenced thereby. Failure to make any such notation
or any error in such notation shall not affect the Borrower's obligations in
respect of such Loans.

                                      -6-
<PAGE>

         (e)      Notwithstanding anything to the contrary contained above or
elsewhere in this Agreement, Notes shall only be delivered to Lenders which at
any time (or from time to time) specifically request the delivery of such Notes.
No failure of any Lender to request or obtain a Note evidencing its Loans to the
Borrower shall affect or in any manner impair the obligations of the Borrower to
pay the Loans (and all related Obligations) which would otherwise be evidenced
thereby in accordance with the requirements of this Agreement, and shall not in
any way affect the guaranty therefor provided pursuant to the Subsidiaries
Guaranty. Any Lender which does not have a Note evidencing its outstanding Loans
shall in no event be required to make the notations otherwise described in
preceding clause (d) of this Section 1.05. At any time when any Lender requests
the delivery of a Note to evidence its outstanding Loans and Commitment (if
any), the Borrower shall promptly execute and deliver to the respective Lender
the requested Note in the appropriate amount or amounts to evidence such Loans.

         (f)      In the event that the Borrower forms the Co-Borrower in
accordance with Section 8.04(b), at such time (i) the Borrower shall cause the
Co-Borrower to execute and deliver the Joinder Agreement in the form of Exhibit
C (the "Joinder Agreement") pursuant to which the Co-Borrower shall become a
Credit Party party to this Agreement and certain of the other Credit Documents,
and (ii) the Borrower shall, and shall cause the Co-Borrower to, execute and
deliver to the Administrative Agent (x) a Note in replacement of each Note then
outstanding to evidence the joint and several liability of the Borrower and the
Co-Borrower for the indebtedness evidenced thereby, and (y) all relevant
officers' certificates, resolutions, opinions of counsel and other documentation
of the type described in Sections 5.02 and 5.03 as the Co-Borrower would have
had to deliver if it were a Credit Party party to this Agreement on the
Effective Date and as otherwise may be reasonably requested by the
Administrative Agent.

         1.06     Conversions. The Borrower shall have the option to convert, on
any Business Day occurring after the Effective Date, all or a portion equal to
at least the Minimum Borrowing Amount of the outstanding principal amount of
Revolving Loans made pursuant to one or more Borrowings of one or more Types of
Revolving Loans into a Borrowing of another Type of Revolving Loan, provided
that (i) except as otherwise provided in Section 1.10(b), Eurodollar Rate Loans
may be converted into Base Rate Loans only on the last day of an Interest Period
applicable to the Revolving Loans being converted and no such partial conversion
of Eurodollar Rate Loans shall reduce the outstanding principal amount of such
Eurodollar Rate Loans made pursuant to a single Borrowing to less than the
Minimum Borrowing Amount applicable thereto, (ii) unless the Required Lenders
otherwise specifically agree, Base Rate Loans may only be converted into
Eurodollar Rate Loans if no Specified Default or Event of Default is in
existence on the date of the conversion, and (iii) no conversion pursuant to
this Section 1.06 shall result in a greater number of Borrowings of Eurodollar
Rate Loans than is permitted under Section 1.02. Each such conversion shall be
effected by the Borrower by giving the Administrative Agent at the Notice Office
prior to 12:00 Noon (New York time) at least three Business Days' prior notice
(each a "Notice of Conversion/Continuation"), in the form of Exhibit D,
appropriately completed to specify the Revolving Loans to be so converted, the
Borrowing or Borrowings pursuant to which such Revolving Loans were made and, if
to be converted into Eurodollar Rate Loans, the Interest Period to be initially
applicable thereto. The Administrative Agent shall give each Lender prompt
notice of any such proposed conversion. Swingline Loans may not be converted
pursuant to this Section 1.06.

                                      -7-
<PAGE>

         1.07     Pro Rata Borrowings. All Borrowings of Revolving Loans made
pursuant to Section 1.01(a) shall be incurred from the Lenders pro rata on the
basis of their Commitments. All Mandatory Borrowings made pursuant to Section
1.01(c) shall be made by the Lenders pro rata on the basis of their Percentages.
All Borrowings of Revolving Loans pursuant to Sections 1.06 and 1.08 shall be
made on the basis that the various Lenders will have a share of each Borrowing
which is the same percentage as a fraction the numerator of which is the
outstanding principal amount of Revolving Loans of such Lender and the
denominator of which is the aggregate principal amount of outstanding Revolving
Loans of all Lenders. It is understood that no Lender shall be responsible for
any default by any other Lender of its obligation to make Loans hereunder and
that each Lender shall be obligated to make the Loans provided to be made by it
hereunder, regardless of the failure of any other Lender to make its Loans
hereunder.

         1.08     Interest. (a) The Borrower agrees to pay interest in respect
of the unpaid principal amount of each Base Rate Loan from the date of the
Borrowing thereof until the earlier of (x) the maturity thereof (whether by
acceleration or otherwise) and (y) the conversion of such Base Rate Loan to a
Eurodollar Rate Loan pursuant to Section 1.06, at a rate per annum which shall
be equal to the sum of the Base Rate plus the relevant Applicable Margin each as
in effect from time to time.

         (b)      The Borrower agrees to pay interest in respect of the unpaid
principal amount of each Eurodollar Rate Loan from the date of the Borrowing
thereof until the earlier of (x) the maturity thereof (whether by acceleration
or otherwise) and (y) the conversion of such Eurodollar Rate Loan to a Base Rate
Loan pursuant to Section 1.06, 1.09 or 1.10, as applicable, at a rate per annum
which shall, during each Interest Period applicable thereto, be equal to the sum
of the Eurodollar Rate for such Interest Period plus the Applicable Margin as in
effect from time to time during such Interest Period.

         (c)      Notwithstanding the foregoing, (i) upon the occurrence and
during the continuance of an Event of Default, all outstanding Loans shall bear
interest at a rate per annum equal to the greater of (x) the rate then borne by
such Loans and (y) the sum of the Base Rate as in effect from time to time plus
4.5%, and (ii) to the extent permitted by law, overdue interest in respect of
each Loan and any other overdue amount payable hereunder shall, in each case,
bear interest at a rate per annum equal to the sum of the Base Rate as in effect
from time to time plus 4.5%.

         (d)      Accrued (and theretofore unpaid) interest shall be payable (i)
in respect of each Base Rate Loan, quarterly in arrears on each Quarterly
Payment Date, (ii) in respect of each Eurodollar Rate Loan, on the last day of
each Interest Period applicable thereto and, in the case of an Interest Period
in excess of three months, on each date occurring at three month intervals after
the first day of such Interest Period, and (iii) in respect of each Loan, on any
repayment or prepayment (on the amount repaid or prepaid), at maturity (whether
by acceleration or otherwise) and, after such maturity, on demand.

         (e)      Upon each Interest Determination Date, the Administrative
Agent shall determine the Eurodollar Rate for the respective Interest Period to
be applicable to Eurodollar Rate Loans and shall promptly notify the Borrower
and the Lenders thereof. Each such determination shall, absent manifest error,
be final and conclusive and binding on all parties hereto.

                                      -8-
<PAGE>

                  1.09     Interest Periods. At the time the Borrower gives any
Notice of Borrowing or Notice of Conversion/Continuation in respect of the
making of, or conversion into, any Eurodollar Rate Loan (in the case of the
initial Interest Period applicable thereto) or prior to 12:00 Noon (New York
time) on the third Business Day prior to the expiration of an Interest Period
applicable to such Eurodollar Rate Loan (in the case of any subsequent Interest
Period), the Borrower shall have the right to elect, by giving the
Administrative Agent notice thereof, a one, two or three month interest period
or, if consented to by the Administrative Agent and otherwise available to all
of the Lenders, a period of less than one month (each an "Interest Period")
applicable to such Eurodollar Rate Loan, provided that:

                  (i)      all Eurodollar Rate Loans comprising a single
         Borrowing shall at all times have the same Interest Period;

                  (ii)     the initial Interest Period for any Borrowing of
         Eurodollar Rate Loans shall commence on the date of such Borrowing
         (including the date of any conversion thereto from a Base Rate Loan)
         and each Interest Period occurring thereafter in respect of such
         Eurodollar Rate Loans shall commence on the day on which the next
         preceding Interest Period applicable thereto expires;

                  (iii)    if any Interest Period for a Eurodollar Rate Loan
         begins on a day for which there is no numerically corresponding day in
         the calendar month at the end of such Interest Period, such Interest
         Period shall end on the last Business Day of such calendar month;

                  (iv)     if any Interest Period for a Eurodollar Rate Loan
         would otherwise expire on a day which is not a Business Day, such
         Interest Period shall expire on the next succeeding Business Day;
         provided, however, that if any Interest Period for a Eurodollar Rate
         Loan would otherwise expire on a day which is not a Business Day but is
         a day of the month after which no further Business Day occurs in such
         month, such Interest Period shall expire on the next preceding Business
         Day;

                  (v)      unless the Required Lenders otherwise specifically
         agree, no Interest Period may be selected at any time when a Specified
         Default or an Event of Default is then in existence; and

                  (vi)     no Interest Period in respect of any Borrowing of
         Eurodollar Rate Loans shall be selected which extends beyond the
         Maturity Date.

                  If by 12:00 Noon (New York time) on the third Business Day
preceding the expiration of any Interest Period applicable to a Borrowing of
Eurodollar Rate Loans, (x) the Borrower has failed to elect a new Interest
Period to be applicable to such Eurodollar Rate Loans as provided above, the
Borrower shall be deemed to have elected to continue such Eurodollar Rate Loans
as a new Borrowing of Eurodollar Rate Loans having an Interest Period of one
month, or (y) the Borrower is not permitted to elect a new Interest Period to be
applicable to such Eurodollar Rate Loans as provided above, the Borrower shall
be deemed to have elected to convert such Eurodollar Rate Loans into Base Rate
Loans. Each deemed election under this paragraph shall be effective as of the
expiration date of such current Interest Period.

                                      -9-
<PAGE>

                  1.10     Increased Costs, Illegality, etc. (a) In the event
that any Lender shall have determined in good faith (which determination shall,
absent manifest error, be final and conclusive and binding upon all parties
hereto but, with respect to clause (i) below, may be made only by the
Administrative Agent):

                  (i)      on any Interest Determination Date that, by reason of
         any changes arising after the Effective Date affecting the applicable
         interbank market, adequate and fair means do not exist for ascertaining
         the applicable interest rate on the basis provided for in the
         definition of the Eurodollar Rate; or

                  (ii)     at any time, that such Lender shall incur increased
         costs or reductions in the amounts received or receivable hereunder
         with respect to any Eurodollar Rate Loan because of (x) any change
         arising after the Effective Date in any applicable law or governmental
         rule, regulation, order, guideline or request (whether or not having
         the force of law) or in the interpretation or administration thereof by
         the NAIC or any governmental authority, central bank or comparable
         agency charged with the interpretation or administration thereof and
         including the introduction of any new law or governmental rule,
         regulation, order, guideline or request, such as, for example, but not
         limited to: (A) a change in the basis of taxation of payment to any
         Lender of the principal of or interest on such Loans or any other
         amounts payable hereunder (except for changes in the rate of tax on, or
         determined by reference to, the net income or profits or franchise
         taxes based on net income of such Lender pursuant to the laws of the
         country in which it is organized or in which its principal office or
         applicable lending office is located or any subdivision thereof or
         therein) or (B) a change in official reserve requirements (except to
         the extent included in the computation of the Eurodollar Rate) or any
         special deposit, assessment or similar requirement against assets of,
         deposits with or for the account of, or credit extended by, any Lender
         (or its applicable lending office) and/or (y) other circumstances since
         the Effective Date affecting the applicable interbank market or the
         position of such Lender and lenders generally in such market; or

                  (iii)    at any time after the date of this Agreement, that
         the making or continuance of any Eurodollar Rate Loan has been made (x)
         unlawful by any law or governmental rule, regulation or order, (y)
         impossible by compliance by any Lender in good faith with any
         governmental request (whether or not having force of law) or (z)
         impracticable as a result of a contingency occurring after the
         Effective Date which materially and adversely affects the applicable
         interbank market;

then, and in any such event, such Lender (or the Administrative Agent, in the
case of clause (i) above) shall promptly give notice (by telephone promptly
confirmed in writing) to the Borrower and, except in the case of clause (i)
above, to the Administrative Agent of such determination (which notice the
Administrative Agent shall promptly transmit to each of the other Lenders).
Thereafter (x) in the case of clause (i) above, Eurodollar Rate Loans shall no
longer be available until such time as the Administrative Agent notifies the
Borrower and the Lenders that the circumstances giving rise to such notice by
the Administrative Agent no longer exist, and any Notice of Borrowing or any
Notice of Conversion/Continuation given by the Borrower with respect to such
Loans which have not yet been incurred (including by way of conversion) shall be
deemed rescinded by the Borrower, (y) in the case of clause (ii) above, the
Borrower shall,

                                      -10-
<PAGE>

subject to the provisions of Section 13.17 (to the extent applicable), pay to
such Lender, within 10 days of its written request therefor, such additional
amounts (in the form of an increased rate of, or a different method of
calculating, interest or otherwise as such Lender in good faith shall reasonably
determine) as shall be required to compensate such Lender for such increased
costs or reductions in amounts received or receivable hereunder (a written
notice as to the additional amounts owed to such Lender, showing in reasonable
detail the basis for the calculation thereof, submitted to the Borrower by such
Lender shall, absent manifest error, be final and conclusive and binding on all
the parties hereto) and (z) in the case of clause (iii) above, the Borrower
shall take one of the actions specified in Section 1.10(b) as promptly as
possible and, in any event, within the time period required by law.

         (b)      At any time that any Eurodollar Rate Loan is affected by the
circumstances described in Section 1.10(a)(ii) or (iii), the Borrower may (and,
in the case of a Eurodollar Rate Loan affected by the circumstances described in
Section 1.10(a)(iii), shall) either (x) if the affected Eurodollar Rate Loan
then being made initially or pursuant to a conversion, cancel the respective
Borrowing by giving the Administrative Agent telephonic notice (confirmed in
writing) on the same date that the Borrower was notified by the affected Lender
or the Administrative Agent pursuant to Section 1.10(a)(ii) or (iii) or (y) if
the affected Eurodollar Rate Loan is then outstanding, upon at least two
Business Days' written notice to the Administrative Agent, require the affected
Lender in the case of a Eurodollar Rate Loan, to convert such Eurodollar Rate
Loan into a Base Rate Loan, provided that if more than one Lender is affected at
any time as described above in this clause (b), then all affected Lenders must
be treated the same pursuant to this Section 1.10(b).

         (c)      If at any time after the Effective Date any Lender determines
that the introduction of or any change (which introduction or change shall have
occurred after the Effective Date) in any applicable law or governmental rule,
regulation, order, guideline, directive or request (whether or not having the
force of law) concerning capital adequacy, or any change in interpretation or
administration thereof by the NAIC or any governmental authority, central bank
or comparable agency charged with the interpretation or administration thereof,
will have the effect of increasing the amount of capital required or expected to
be maintained by such Lender or any corporation controlling such Lender based on
the existence of such Lender's Commitment hereunder or its obligations
hereunder, then the Borrower agrees to pay, subject to the provisions of Section
13.17 (to the extent applicable), to such Lender, within 10 days of its written
request therefor, such additional amounts as shall be required to compensate
such Lender or such other corporation for the increased cost to such Lender or
such other corporation or the reduction in the rate of return to such Lender or
such other corporation as a result of such increase of capital. In determining
such additional amounts, each Lender will act reasonably and in good faith and
will use averaging and attribution methods which are reasonable, provided that
such Lender's determination of compensation owing under this Section 1.10(c)
shall, absent manifest error, be final and conclusive and binding on all the
parties hereto. Each Lender, upon determining that any additional amounts will
be payable pursuant to this Section 1.10(c), will give prompt written notice
thereof to the Borrower, which notice shall show in reasonable detail the basis
for calculation of such additional amounts.

         1.11 Compensation. The Borrower shall, subject to the provisions of
Section 13.17 (to the extent applicable), compensate each Lender, within 10 days
of its written request

                                      -11-
<PAGE>

(which request shall set forth in reasonable detail the basis for requesting
such compensation), for all reasonable losses, expenses and liabilities
(including, without limitation, any loss, expense or liability incurred by
reason of the liquidation or reemployment of deposits or other funds required by
such Lender to fund its Eurodollar Rate Loans, but excluding loss of anticipated
profits) which such Lender may sustain: (i) if for any reason (other than a
default by such Lender or the Administrative Agent) a Borrowing of, or
conversion from or into, Eurodollar Rate Loans does not occur on a date
specified therefor in the Notice of Borrowing, or a Notice of
Conversion/Continuation (whether or not withdrawn or deemed withdrawn pursuant
to Section 1.10(a)); (ii) if any repayment (including any repayment made
pursuant to Section 4.01 or 4.02 or as a result of an acceleration of the Loans
pursuant to Section 10) or conversion of any Eurodollar Rate Loans occurs on a
date which is not the last day of an Interest Period or maturity date with
respect thereto, as the case may be; (iii) if any prepayment of any Eurodollar
Rate Loans is not made on any date specified in a notice of prepayment given by
the Borrower; or (iv) as a consequence of any election made pursuant to Section
1.10(b).

         1.12     Lending Offices. Each Lender may at any time or from time to
time designate, by written notice to the Administrative Agent to the extent not
already reflected on Schedule II, one or more lending offices (which, for this
purpose, may include Affiliates of the respective Lender) for the Loans made by
such Lender hereunder; provided that, for designations made after the Effective
Date, to the extent such designation shall result in increased costs under
Section 1.10, 2.06 or 4.04 in excess of those which would be charged in the
absence of such designation of a different lending office (including a different
Affiliate of the respective Lender), then the Borrower shall not be obligated to
pay such excess increased costs (although the Borrower, in accordance with and
pursuant to the other provisions of this Agreement, shall be obligated to pay
the costs which would apply in the absence of such designation and any
subsequent increased costs of the type described above resulting from changes
after the date of the respective designation). Each lending office and Affiliate
of any Lender designated as provided above shall, for all purposes of this
Agreement, be treated in the same manner as the respective Lender (and shall be
entitled to all indemnities and similar provisions in respect of its acting as
such hereunder). Nothing in this Section 1.12 shall affect or postpone any of
the obligations of the Borrower or the right of any Lender provided in Sections
1.10, 2.06 and 4.04.

         1.13     Requested Designation of other Lending Offices. Each Lender
agrees that on the occurrence of any event giving rise to the operation of
Section 1.10(a)(ii) or (iii), Section 1.10(c), Section 2.06 or Section 4.04 with
respect to such Lender, it will, if requested by the Borrower, use reasonable
efforts (subject to overall policy considerations of such Lender) to designate
another lending office for any Loans affected by such event, provided that such
designation is made on such terms that such Lender and its lending office suffer
no economic, legal or regulatory disadvantage, with the object of avoiding the
consequence of the event giving rise to the operation of such Section. Nothing
in this Section 1.13 shall affect or postpone any of the obligations of the
Borrower or the right of any Lender provided in Sections 1.10, 2.06 and 4.04.

         1.14     Replacement of Lenders. (a) If any Lender becomes a Defaulting
Lender or otherwise defaults in its obligations to make Loans, (y) upon the
occurrence of an event giving rise to the operation of Section 1.10(a)(ii) or
(iii), Section 1.10(c), Section 2.06 or Section 4.04 with respect to any Lender
which results in such Lender charging to the Borrower increased

                                      -12-
<PAGE>

costs in excess of those being generally charged by the other Lenders or (z) in
the case of certain refusals by a Lender to consent to certain proposed changes,
waivers, discharges or terminations with respect to this Agreement which have
been approved by the Required Lenders as (and to the extent) provided in Section
13.12(b), the Borrower shall have the right, if no Specified Default or Event of
Default then exists (or, in the case of the preceding clause (z), no Specified
Default or Event of Default will exist immediately after giving effect to such
replacement), to replace such Lender (the "Replaced Lender") with one or more
other Eligible Transferees, none of whom shall constitute a Defaulting Lender at
the time of such replacement (collectively, the "Replacement Lender"), and each
of whom shall be required to be reasonably acceptable to the Administrative
Agent; provided that (i) at the time of any replacement pursuant to this Section
1.14, the Replacement Lender shall enter into one or more Assignment and
Assumption Agreements pursuant to Section 13.04(b) (and with all fees payable
pursuant to said Section 13.04(b) to be paid by the Replacement Lender) pursuant
to which the Replacement Lender shall acquire the Commitment and all outstanding
Loans of, and participations in Letters of Credit by, the Replaced Lender and,
in connection therewith, shall pay to (x) the Replaced Lender in respect thereof
an amount equal to the sum of (I) the principal of, and all accrued interest on,
all outstanding Loans of the Replaced Lender, (II) an amount equal to all Unpaid
Drawings that have been funded by (and not reimbursed to) such Replaced Lender,
together with all then unpaid interest with respect thereto at such time and
(III) all accrued, but theretofore unpaid, Fees owing to the Replaced Lender
pursuant to Section 3.01, (y) each Issuing Lender an amount equal to such
Replaced Lender's Percentage of any Unpaid Drawing (which at such time remains
an Unpaid Drawing) to the extent such amount was not theretofore funded by such
Replaced Lender to such Issuing Lender and (z) the Swingline Lender an amount
equal to such Replaced Lender's Percentage of any Mandatory Borrowings to the
extent such amount was not theretofore funded by such Replaced Lender to the
Swingline Lender and (ii) all obligations of the Borrower due and owing to the
Replaced Lender at such time (other than those specifically described in clause
(i) above in respect of which the assignment purchase price has been, or is
concurrently being, paid) shall be paid in full to such Replaced Lender
concurrently with such replacement. Upon the execution of the respective
Assignment and Assumption Agreements, the payment of amounts referred to above,
recordation of the assignment on the Register by the Administrative Agent
pursuant to Section 13.15 and, if so requested by the Replacement Lender,
delivery to the Replacement Lender of the appropriate Note or Notes executed by
the Borrower, the Replacement Lender shall become a Lender hereunder and the
Replaced Lender shall cease to constitute a Lender hereunder, except with
respect to indemnification provisions under this Agreement (including, without
limitation, Sections 1.09, 1.10, 2.06, 4.04, 12.06 and 13.01), which shall
survive as to such Replaced Lender.

         SECTION  2. Letters of Credit.

         2.01     Letters of Credit. (a) Subject to and upon the terms and
conditions set forth herein, the Borrower may request that an Issuing Lender
issue, at any time and from time to time on and after the Effective Date and
prior to the 60th day prior to the Maturity Date, (x) for the account of the
Borrower and for the benefit of any holder (or any trustee, agent or other
similar representative for any such holders) of L/C Supportable Obligations of
the Borrower or any of its Subsidiaries, an irrevocable standby letter of
credit, in a form customarily used by such Issuing Lender or in such other form
as has been reasonably approved by such Issuing Lender and (y) for the account
of the Borrower and for the benefit of sellers of goods to the Borrower or any
of its

                                      -13-
<PAGE>

Subsidiaries, an irrevocable trade letter of credit, in a form customarily used
by such Issuing Lender or in such other form as has been reasonably approved by
such Issuing Lender (each such letter of credit issued pursuant to this Section
2.01, a "Letter of Credit"). All Letters of Credit shall be denominated in
Dollars and shall be issued on a sight basis only; it being understood, however,
that the Borrower may by written notice (including facsimile transmission) made
to the Administrative Agent and the respective Issuing Lender as part of the
respective Letter of Credit Request, or subsequent to such Letter of Credit
Request so long as such request is made at least five Business Days' (or such
shorter period as is acceptable to such Issuing Lender) prior to the date
requested for the issuance of such Letter of Credit, require that any sight
draft drawing all or any portion of such Letter of Credit be accompanied by
additional documents or certifications, which notice shall specify a precise
description of the documents and the verbatim text of any certificates to be
presented by the beneficiary of such Letter of Credit, which if presented by
such beneficiary prior to the expiration date of the Letter of Credit would
require the Issuing Lender to make a payment under such Letter of Credit,
although the respective Issuing Lender may, in its reasonable judgment, require
changes in any such documents and certificates to conform with changes in
customary and commercially reasonable practice or law.

         (b)      Subject to and upon the terms and conditions set forth herein,
each Issuing Lender agrees that it will, at any time and from time to time on
and after the Effective Date and prior to the 60th day prior to the Maturity
Date, following its receipt of the respective Letter of Credit Request, issue
for the account of the Borrower, one or more Letters of Credit as are permitted
to remain outstanding hereunder without giving rise to a Default or an Event of
Default, provided that no Issuing Lender shall be under any obligation to issue
any Letter of Credit of the types described above if at the time of such
issuance:

                  (i)      any order, judgment or decree of any governmental
         authority or arbitrator shall purport by its terms to enjoin or
         restrain such Issuing Lender from issuing such Letter of Credit or any
         requirement of law applicable to such Issuing Lender or any request or
         directive (whether or not having the force of law) from any
         governmental authority with jurisdiction over such Issuing Lender shall
         prohibit, or request that such Issuing Lender refrain from, the
         issuance of letters of credit generally or such Letter of Credit in
         particular or shall impose upon such Issuing Lender with respect to
         such Letter of Credit any restriction or reserve or capital requirement
         (for which such Issuing Lender is not otherwise compensated) not in
         effect on the Effective Date, or any unreimbursed loss, cost or expense
         which was not applicable or in effect with respect to such Issuing
         Lender as of the date hereof and which such Issuing Lender reasonably
         and in good faith deems material to it; or

                  (ii)     such Issuing Lender shall have received notice from
         the Borrower or the Required Lenders prior to the issuance of such
         Letter of Credit of the type described in the second sentence of
         Section 2.03(b).

                  (iii)    Each Issuing Lender (unless the Issuing Lender is the
         Administrative Agent) agrees to provide to the Administrative Agent by
         facsimile promptly on the first Business Day of each week the daily
         aggregate Stated Amount of all Letters of Credit issued by such Issuing
         Lender and outstanding during the immediately preceding week.

                                      -14-
<PAGE>

         2.02     Maximum Letter of Credit Outstandings; Final Maturities.
Notwithstanding anything to the contrary contained in this Agreement, (i) no
Letter of Credit shall be issued the Stated Amount of which, when added to the
Letter of Credit Outstandings (exclusive of Unpaid Drawings which are repaid on
the date of, and prior to the issuance of, the respective Letter of Credit) at
such time would exceed any of (x) $50,000,000, (y) when added to the sum of (I)
the aggregate principal amount of all Revolving Loans then outstanding and (II)
the aggregate principal amount of all Swingline Loans then outstanding, an
amount equal to the Borrowing Base Amount at such time (based on the Borrowing
Base Certificate last delivered or then being delivered) or (z) when added to
the sum of (I) the aggregate principal amount of all Revolving Loans then
outstanding and (II) the aggregate principal amount of all Swingline Loans then
outstanding, an amount equal to the Total Commitment at such time, (ii) each
standby Letter of Credit shall by its terms terminate on or before the earlier
of (x) the date which occurs 12 months after the date of the issuance thereof
(although any such standby Letter of Credit may be extendible for successive
periods of up to 12 months, but not beyond the fifth Business Day prior to the
Maturity Date, on terms acceptable to such Issuing Lender) and (y) five Business
Days prior to the Maturity Date, and (iii) each trade Letter of Credit shall by
its terms terminate on or before the earlier of (x) the date which occurs 180
days after the date of the issuance thereof and (y) 15 days prior to the
Maturity Date.

         2.03     Letter of Credit Requests; Minimum Stated Amount. (a) Whenever
the Borrower desires that a Letter of Credit be issued for its account, the
Borrower shall give the Administrative Agent and the respective Issuing Lender
at least five Business Days' (or such shorter period as is acceptable to such
Issuing Lender) written notice thereof (including by way of facsimile
transmission). Each notice shall be in the form of Exhibit E (each a "Letter of
Credit Request"). Each such Letter of Credit Request may be revoked
telephonically by the Borrower to the applicable Issuing Lender and the
Administrative Agent any time prior to the date of issuance of the Letter of
Credit by the applicable Issuing Lender, which revocation shall be immediately
confirmed in writing by the Borrower to such Issuing Lender and the
Administrative Agent by facsimile.

         (b)      The making of each Letter of Credit Request shall be deemed to
be a representation and warranty by the Borrower that such Letter of Credit may
be issued in accordance with, and will not violate the requirements of, Section
2.02. Unless the respective Issuing Lender has received notice from the Borrower
or the Required Lenders before it issues a Letter of Credit that one or more of
the conditions specified in Section 6 are not then satisfied, or that the
issuance of such Letter of Credit would violate Section 2.02, then such Issuing
Lender shall, subject to the terms and conditions of this Agreement, issue the
requested Letter of Credit for the account of the Borrower in accordance with
such Issuing Lender's usual and customary practices. Upon its issuance of or
amendment to any Letter of Credit, the respective Issuing Lender shall promptly
notify the Borrower and the Administrative Agent, in writing, of such issuance
or amendment and such notice shall be accompanied by a copy of the issued Letter
of Credit or amendment. Notwithstanding anything to the contrary contained in
this Agreement, in the event that a Lender Default exists, no Issuing Lender
shall be required to issue any Letter of Credit unless such Issuing Lender has
entered into an arrangement satisfactory to it and the Borrower to eliminate
such Issuing Lender's risk with respect to the participation in Letters of
Credit by the Defaulting Lender or Lenders, including by cash collateralizing
such Defaulting Lender's or Lenders' Percentage of the Letter of Credit
Outstandings.

                                      -15-
<PAGE>

         (c)      The initial Stated Amount of each Letter of Credit shall not
be less than $100,000 or such lesser amount as is acceptable to the respective
Issuing Lender.

         2.04     Letter of Credit Participations. (a) Immediately upon the
issuance by each Issuing Lender of any Letter of Credit, such Issuing Lender
shall be deemed to have sold and transferred to each Lender, other than such
Issuing Lender (each such Lender, in its capacity under this Section 2.04, a
"Participant"), and each such Participant shall be deemed irrevocably and
unconditionally to have purchased and received from such Issuing Lender, without
recourse or warranty, an undivided interest and participation, to the extent of
such Participant's Percentage, in such Letter of Credit, each drawing or payment
made thereunder and the obligations of the Borrower under this Agreement with
respect thereto, and any security therefor or guaranty pertaining thereto. Upon
any change in the Commitments or Percentages of the Lenders pursuant to Section
1.14 or 13.04, it is hereby agreed that, with respect to all outstanding Letters
of Credit and Unpaid Drawings, there shall be an automatic adjustment to the
participations pursuant to this Section 2.04 to reflect the new Percentages of
the assignor and assignee Lender, as the case may be.

         (b)      In determining whether to pay under any Letter of Credit
issued by it, no Issuing Lender shall have an obligation relative to the other
Lenders other than to confirm that any documents required to be delivered under
such Letter of Credit appear to have been delivered and that they appear to
substantially comply on their face with the requirements of such Letter of
Credit. Any action taken or omitted to be taken by any Issuing Lender under or
in connection with any Letter of Credit issued by it shall not create for such
Issuing Lender any resulting liability to the Borrower, any other Credit Party,
any Lender or any other Person unless such action is taken or omitted to be
taken with gross negligence or willful misconduct (as determined by a court of
competent jurisdiction in a final and non-appealable decision).

         (c)      In the event that any Issuing Lender makes any payment under
any Letter of Credit issued by it and the Borrower shall not have reimbursed
such amount in full to such Issuing Lender pursuant to Section 2.05(a), such
Issuing Lender shall promptly notify the Administrative Agent, which shall
promptly notify each Participant of such failure, and, except as provided in the
proviso of the immediately succeeding sentence, each Participant shall promptly
and unconditionally pay to such Issuing Lender the amount of such Participant's
Percentage of such unreimbursed payment in Dollars and in same day funds. If the
Administrative Agent so notifies, prior to 11:00 A.M. (New York time) on any
Business Day, any Participant required to fund a payment under a Letter of
Credit, such Participant shall make available to the respective Issuing Lender
in Dollars such Participant's Percentage of the amount of such payment on such
Business Day in same day funds; provided, however, that no Participant shall be
obligated to pay to the respective Issuing Lender its Percentage of such
unreimbursed amount for any wrongful payment made by such Issuing Lender under a
Letter of Credit issued by it as a result of acts or omissions constituting
willful misconduct or gross negligence on the part of such Issuing Lender (as
determined by a court of competent jurisdiction in a final and non-appealable
decision). If and to the extent such Participant shall not have so made its
Percentage of the amount of such payment available to the respective Issuing
Lender, such Participant agrees to pay to such Issuing Lender, forthwith on
demand such amount, together with interest thereon, for each day from such date
until the date such amount is paid to such Issuing Lender at the overnight
Federal Funds Rate for the first three days and at the

                                      -16-
<PAGE>

interest rate applicable to Revolving Loans maintained as Base Rate Loans for
each day thereafter. The failure of any Participant to make available to the
respective Issuing Lender its Percentage of any payment under any Letter of
Credit shall not relieve any other Participant of its obligation hereunder to
make available to such Issuing Lender its Percentage of any Letter of Credit on
the date required, as specified above, but no Participant shall be responsible
for the failure of any other Participant to make available to such Issuing
Lender such other Participant's Percentage of any such payment.

                  (d)      Whenever an Issuing Lender receives a payment of a
reimbursement obligation as to which it has received any payments from the
Participants pursuant to clause (c) above, such Issuing Lender shall pay to each
Participant which has paid its Percentage thereof, in Dollars and in same day
funds, an amount equal to such Participant's share (based upon the proportionate
aggregate amount originally funded by such Participant to the aggregate amount
funded by all Participants) of the principal amount of such reimbursement
obligation and interest thereon accruing after the purchase of the respective
participations.

                  (e)      The obligations of the Participants to make payments
to each Issuing Lender with respect to Letters of Credit issued by it shall be
irrevocable and not subject to any qualification or exception whatsoever (except
as otherwise provided in the proviso to the second sentence of Section 2.04(c))
and shall be made in accordance with the terms and conditions of this Agreement
under all circumstances, including, without limitation, any of the following
circumstances:

                  (i)      any lack of validity or enforceability of this
         Agreement or any of the other Credit Documents;

                  (ii)     the existence of any claim, setoff, defense or other
         right which the Borrower or any of its Subsidiaries may have at any
         time against a beneficiary named in a Letter of Credit, any transferee
         of any Letter of Credit (or any Person for whom any such transferee may
         be acting), the Administrative Agent, any Issuing Lender, any
         Participant or any other Person, whether in connection with this
         Agreement, any Letter of Credit, the transactions contemplated herein
         or any unrelated transactions (including any underlying transaction
         between the Borrower or any Subsidiary of the Borrower and the
         beneficiary named in any such Letter of Credit);

                  (iii)    any draft, certificate or any other document
         presented under any Letter of Credit proving to be forged, fraudulent,
         invalid or insufficient in any respect or any statement therein being
         untrue or inaccurate in any respect;

                  (iv)     the surrender or impairment of any security for the
         performance or observance of any of the terms of any of the Credit
         Documents; or

                  (v)      the occurrence of any Default or Event of Default.

                  2.05     Agreement to Repay Letter of Credit Drawings. (a) The
Borrower agrees to reimburse each Issuing Lender, by making payment to the
Administrative Agent in Dollars and in immediately available funds at the
Payment Office, for any payment or disbursement made by such Issuing Lender
under any Letter of Credit issued by it (each such amount so paid until
reimbursed, an "Unpaid Drawing"), not later than one Business Day following
receipt by the

                                      -17-
<PAGE>
Borrower of notice of such payment or disbursement (provided that no such notice
shall be required to be given if a Default or an Event of Default under Section
10.05 shall have occurred and be continuing, in which case the Unpaid Drawing
shall be due and payable immediately without presentment, demand, protest or
notice of any kind (all of which are hereby waived by the Borrower)), with
interest on the amount so paid or disbursed by such Issuing Lender, to the
extent not reimbursed prior to 1:00 P.M. (New York time) on the date of such
payment or disbursement, from and including the date paid or disbursed to but
excluding the date such Issuing Lender was reimbursed by the Borrower therefor
at a rate per annum which shall be the sum of the Applicable Margin for
Revolving Loans that are maintained as Base Rate Loans plus the Base Rate each
as in effect from time to time; provided, however, to the extent such amounts
are not reimbursed prior to 1:00 P.M (New York time) on the third Business Day
following the receipt by the Borrower of notice of such payment or disbursement
or following the occurrence of a Default or an Event of Default under Section
10.05, interest shall thereafter accrue on the amounts so paid or disbursed by
such Issuing Lender (and until reimbursed by the Borrower) at a rate per annum
which shall be the sum of the Base Rate as in effect from time to time plus
4.5%, in each such case, with interest to be payable on demand. Each Issuing
Lender shall give the Borrower prompt written notice of each Drawing under any
Letter of Credit issued by it, provided that the failure to give any such notice
shall in no way affect, impair or diminish the Borrower's obligations hereunder.

         (b)      The obligations of the Borrower under this Section 2.05 to
reimburse each Issuing Lender with respect to Unpaid Drawings (including, in
each case, interest thereon) shall be absolute and unconditional under any and
all circumstances and irrespective of any setoff, counterclaim or defense to
payment which the Borrower may have or have had against any Lender (including in
its capacity as issuer of the Letter of Credit or as Participant), including,
without limitation, any defense based upon the failure of any drawing or payment
under a Letter of Credit (each a "Drawing") to conform to the terms of the
Letter of Credit or any nonapplication or misapplication by the beneficiary of
the proceeds of such Drawing; provided, however, that the Borrower shall not be
obligated to reimburse the respective Issuing Lender for any wrongful payment
made by such Issuing Lender under a Letter of Credit issued by it as a result of
acts or omissions constituting willful misconduct or gross negligence on the
part of such Issuing Lender (as determined by a court of competent jurisdiction
in a final and non-appealable decision).

         2.06     Increased Costs. If at any time after the Effective Date, the
introduction of or any change in any applicable law, rule, regulation, order,
guideline or request or in the interpretation or administration thereof by the
NAIC or any governmental authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by any Issuing
Lender or any Participant with any request or directive by the NAIC or by any
such governmental authority, central bank or comparable agency (whether or not
having the force of law), shall either (i) impose, modify or make applicable any
reserve, deposit, capital adequacy or similar requirement against letters of
credit issued by any Issuing Lender or participated in by any Participant, or
(ii) impose on any Issuing Lender or any Participant any other conditions
relating, directly or indirectly, to this Agreement as it pertains to Letters of
Credit or their issuance thereof or participation therein; and the result of any
of the foregoing is to increase the cost to any Issuing Lender or any
Participant of issuing, maintaining or participating in any Letter of Credit, or
reduce the amount of any sum received or receivable by any Issuing Lender or any

                                      -18-
<PAGE>

Participant hereunder or reduce the rate of return on its capital with respect
to Letters of Credit (except for changes in the rate of tax on, or determined by
reference to, the net income or profits or franchise taxes based on net income
of such Issuing Lender or such Participant pursuant to the laws of the country
in which it is organized or in which its principal office or applicable lending
office is located or any subdivision thereof or therein), then, within 10 days
of the delivery of the certificate referred to below to the Borrower by such
Issuing Lender or such Participant (a copy of which certificate shall be sent by
such Issuing Lender or such Participant to the Administrative Agent), the
Borrower shall, subject to the provisions of Section 13.17 (to the extent
applicable), pay to such Issuing Lender or such Participant such additional
amount or amounts as will compensate such Issuing Lender or such Participant for
such increased cost or reduction in the amount receivable or reduction on the
rate of return on its capital. Each Issuing Lender or Participant, upon
determining that any additional amounts will be payable to it pursuant to this
Section 2.06, will give prompt written notice thereof to the Borrower, which
notice shall include a certificate submitted to the Borrower by such Issuing
Lender or such Participant (a copy of which certificate shall be sent by such
Issuing Lender or such Participant to the Administrative Agent), setting forth
in reasonable detail the basis for the calculation of such additional amount or
amounts necessary to compensate such Issuing Lender or such Participant. The
certificate required to be delivered pursuant to this Section 2.06 shall, absent
manifest error, be final and conclusive and binding on the Borrower.

         SECTION 3.        Commitment Commission; Other Fees; Reductions of
Commitment.

         3.01     Fees. (a) For each day during the period from the Effective
Date to but excluding the Maturity Date (or such earlier date on which the Total
Commitment has been terminated) the Borrower agrees to pay to the Administrative
Agent for distribution to each Non-Defaulting Lender a commitment commission
(the "Commitment Commission") computed at a rate per annum for each such day
equal to the then Applicable Commitment Commission Percentage on the daily
average of the Unutilized Commitment of such Lender as in effect from time to
time. Accrued Commitment Commission shall be due and payable quarterly in
arrears on each Quarterly Payment Date and on the Maturity Date (or on such
earlier date on which the Total Commitment shall have been terminated).

         (b)      The Borrower agrees to pay to the Administrative Agent for
distribution to each Lender (based on each such Lender's respective Percentage)
a fee in respect of each Letter of Credit issued hereunder (the "Letter of
Credit Fee") for the period from and including the date of issuance of such
Letter of Credit to and including the date of termination or expiration of such
Letter of Credit, computed at a rate per annum equal to the Applicable Margin
then in effect for Revolving Loans maintained as Eurodollar Rate Loans on the
daily Stated Amount of such Letter of Credit. Accrued Letter of Credit Fees
shall be due and payable quarterly in arrears on each Quarterly Payment Date and
on the first day on or after the termination of the Total Commitment upon which
no Letters of Credit remain outstanding.

         (c)      The Borrower agrees to pay to each Issuing Lender, for its own
account, a facing fee in respect of each Letter of Credit issued by such Issuing
Lender hereunder (the "Facing Fee") for the period from and including the date
of issuance of such Letter of Credit to and including the date of the
termination or expiration of such Letter of Credit, computed at a

                                     -19-
<PAGE>

rate per annum equal to 1/8 of 1% on the daily Stated Amount of such Letter of
Credit, provided that in any event the minimum amount of the Facing Fee payable
in any 12 month period for each Letter of Credit shall be $500; it being agreed
that, on the date of issuance of any Letter of Credit and on each anniversary
thereof prior to the termination of such Letter of Credit, if $500 will exceed
the amount of Facing Fees that will accrue with respect to such Letter of Credit
for the immediately succeeding 12 month period, the full $500 shall be payable
on the date of issuance of such Letter of Credit and on each such anniversary
thereof. Except as otherwise provided in the proviso to the immediately
preceding sentence, accrued Facing Fees shall be due and payable quarterly in
arrears on each Quarterly Payment Date and upon the first day on or after the
termination of the Total Commitment upon which no Letters of Credit remain
outstanding.

         (d)      The Borrower agrees to pay to each Issuing Lender, for its own
account, upon each payment under, issuance of, or amendment to, any Letter of
Credit, such amount as shall at the time of such event be the administrative
charge and the reasonable expenses which such Issuing Lender is generally
imposing in connection with such occurrence with respect to letters of credit.

         (e)      The Borrower agrees to pay such other fees as have been agreed
to in writing by the Borrower and the Administrative Agent.

         3.02     Voluntary Termination of Unutilized Commitments. (a) Upon at
least three Business Days' prior notice to the Administrative Agent at the
Notice Office (which notice the Administrative Agent shall promptly transmit to
each of the Lenders), the Borrower shall have the right, at any time or from
time to time, without premium or penalty, to terminate the Total Unutilized
Commitment in whole, or reduce it in part, pursuant to this Section 3.02(a), in
an integral multiple of $5,000,000 in the case of partial reductions to the
Total Unutilized Commitment, provided that each such reduction shall apply
proportionately to permanently reduce the Commitment of each Lender.

         (b)      In the event of certain refusals by a Lender to consent to
certain proposed changes, waivers, discharges or terminations with respect to
this Agreement which have been approved by the Required Lenders as (and to the
extent) provided in Section 13.12(b), the Borrower may, upon five Business Days'
prior written notice to the Administrative Agent at the Notice Office (which
notice the Administrative Agent shall promptly transmit to each of the Lenders),
terminate the entire Commitment of such Lender so long as all Loans, together
with accrued and unpaid interest, Fees and all other amounts owing to such
Lender are repaid concurrently with the effectiveness of such termination
pursuant to Section 4.01(b) (at which time Schedule I shall be deemed modified
to reflect such changed amounts), and at such time, such Lender shall no longer
constitute a "Lender" for purposes of this Agreement, except with respect to
indemnifications under this Agreement for periods when such Lender was a
"Lender" under this Agreement (including, without limitation, Sections 1.10,
1.11, 4.04, 13.01 and 13.06), which shall survive as to such repaid Lender.

         3.03     Mandatory Reduction of Commitments. The Total Commitment (and
the Commitment of each Lender) shall terminate in its entirety on the earliest
of (i) the date on which a Change of Control occurs, (ii) the date upon which
the Borrower (or the Co-Borrower if

                                      -20-
<PAGE>

formed) enters into any transaction of merger or consolidation, other than any
merger or consolidation permitted by Section 9.02(a), and (iii) the Maturity
Date.

         SECTION 4.      Prepayments; Payments; Taxes.

         4.01     Voluntary Prepayments. (a) The Borrower shall have the right
to prepay the Loans without premium or penalty, in whole or in part at any time
and from time to time on the following terms and conditions: (i) the Borrower
shall give the Administrative Agent prior to 12:00 Noon (New York time) at the
Notice Office (x) in the case of Base Rate Loans, at least one Business Day's
prior written notice (or same day notice in the case of a prepayment of
Swingline Loans) (or telephonic notice promptly confirmed in writing) of its
intent to prepay such Base Rate Loans and (y) in the case of Eurodollar Rate
Loans, at least three Business Days' prior written notice (or telephonic notice
promptly confirmed in writing) of its intent to prepay such Eurodollar Rate
Loans, the principal amount of such prepayment and the Types of Loans to be
prepaid and, in the case of Eurodollar Rate Loans, the specific Borrowing or
Borrowings pursuant to which such Eurodollar Rate Loans were made, which notice
the Administrative Agent shall promptly transmit to each of the Lenders, (ii)
each prepayment of Loans pursuant to this Section 4.01(a) shall be in an
aggregate principal amount of at least $1,000,000, provided that if any partial
prepayment of Eurodollar Rate Loans made pursuant to any Borrowing shall reduce
the outstanding Eurodollar Rate Loans made pursuant to such Borrowing to an
amount less than the Minimum Borrowing Amount applicable thereto, then such
Borrowing may not be continued as a Borrowing of Eurodollar Rate Loans and any
election of an Interest Period with respect thereto given by the Borrower, shall
have no force or effect, (iii) each prepayment pursuant to this Section 4.01(a)
in respect of any Loans made pursuant to a Borrowing shall be applied pro rata
among such Loans, and (iv) each prepayment of Eurodollar Rate Loans made
pursuant to this Section 4.01 on a day which is not the last day of an Interest
Period applicable thereto shall be accompanied by the payment of all amounts
owing in connection therewith pursuant to Section 1.11.

         (b)      In the event of certain refusals by a Lender to consent to
certain proposed changes, waivers, discharges or terminations with respect to
this Agreement which have been approved by the Required Lenders as (and to the
extent) provided in Section 13.12(b), the Borrower may, upon five Business Days'
prior written notice to the Administrative Agent at the Notice Office (which
notice the Administrative Agent shall promptly transmit to each of the Lenders),
repay all Loans, together with accrued and unpaid interest, Fees and all other
amounts owing to such Lender under this Agreement (including under Section 1.11)
in accordance with said Section 13.12(b) so long as (A) the Commitment of such
Lender is terminated concurrently with such repayment pursuant to Section
3.02(b) (at which time Schedule I shall be deemed modified to reflect the
changed Commitments) and (B) the consents required by Section 13.12(b) in
connection with the repayment pursuant to this Section 4.01(b) have been
obtained.

         4.02     Mandatory Repayments. (a) On any day on which the sum of (I)
the aggregate outstanding principal amount of all Revolving Loans, (II) the
aggregate outstanding principal amount of all Swingline Loans and (III) the
aggregate amount of all Letter of Credit Outstandings exceeds the Total
Commitment as then in effect, the Borrower shall prepay on such day the
principal of Swingline Loans and, after all Swingline Loans have been repaid in
full (or if no Swingline Loans are outstanding), Revolving Loans in an amount
equal to such excess. If,

                                      -21-
<PAGE>

after giving effect to the prepayment of all outstanding Swingline Loans and
Revolving Loans, the aggregate amount of all Letter of Credit Outstandings
exceeds the Total Commitment as then in effect, the Borrower shall pay to the
Administrative Agent at the Payment Office on such day an amount of cash and/or
Cash Equivalents equal to the amount of such excess, such cash and/or Cash
Equivalents to be held as security for all Obligations of the Borrower to each
Issuing Lender and the Lenders hereunder in a cash collateral account to be
established by the Administrative Agent.

         (b)(i)   If on any day (A) the sum of (I) the aggregate outstanding
principal amount of all Revolving Loans, (II) the aggregate outstanding
principal amount of all Swingline Loans and (III) the aggregate amount of all
Letter of Credit Outstandings exceeds the Borrowing Base Amount at such time
(based on the Borrowing Base Certificate last delivered or then being delivered)
(such excess, the "Borrowing Base Amount Deficiency") or (B) a Default exists
under Section 9.14 (such Default, a "Section 9.14 Default"), the Borrower shall,
within 10 days thereafter (or on such day to the extent required by Section
8.13), either (x) prepay outstanding Loans and/or cash collateralize outstanding
Letters of Credit in the order provided in clause (b)(ii) below in an amount
sufficient to eliminate such Borrowing Base Amount Deficiency or to cure such
Section 9.14 Default, as applicable, (y) add one or more Mortgaged Properties to
the Borrowing Base in accordance with the procedures set forth in this Agreement
which would have the effect (i) in the case of a Borrowing Base Amount
Deficiency, of increasing the Borrowing Base Value in an aggregate amount
sufficient to eliminate such Borrowing Base Amount Deficiency or (ii) in the
case of a Section 9.14 Default, of increasing the Mortgaged Property NOI in an
amount sufficient to cure such Section 9.14 Default or (z) effect a combination
of the actions described in preceding clauses (x) and (y) so as to eliminate
such Borrowing Base Amount Deficiency or Section 9.14 Default, as applicable (it
being understood that, if any Default or Event of Default then exists (other
than, in the case of Section 4.02(b)(i)(A) the Default resulting from the
Borrowing Base Amount Deficiency in question, and in the case of Section
4.02(b)(i)(B) the Section 9.14 Default in question), the Borrower shall be
required to take the actions described in preceding clause (x)).

         (ii)     To the extent that the Borrower elects (or is required) to
prepay outstanding Loans and/or cash collateralize outstanding Letters of Credit
to eliminate any Borrowing Base Amount Deficiency or to cure any Section 9.14
Default as provided in clause (b)(i) above, the Borrower shall (1) first, prepay
principal of outstanding Swingline Loans, (2) second, after all Swingline Loans
have been repaid in full (or if no Swingline Loans are outstanding), prepay
principal of outstanding Revolving Loans and (3) third, pay to the
Administrative Agent at the Payment Office cash and/or Cash Equivalents and with
such cash and/or Cash Equivalents to be held as security for all Obligations of
the Borrower to each Issuing Lender and the Lenders hereunder in a cash
collateral account to be established by the Administrative Agent.

(c) Notwithstanding anything to the contrary contained in this Agreement or in
any other Credit Document, (i) all then outstanding Loans (other than Swingline
Loans) shall be repaid in full on the Maturity Date, (ii) all then outstanding
Loans shall be repaid in full on the date on which (x) the Borrower (or the
Co-Borrower if formed) enters into any transaction of merger or consolidation
(other than any merger or consolidation permitted by Section 9.02(a)) or (y) a
Change of Control occurs, (iii) each Borrowing of Swingline Loans shall be
repaid in full

                                      -22-
<PAGE>

within five Business Days after the date of Borrowing thereof and (iv) all then
outstanding Swingline Loans shall be repaid in full on the Swingline Expiry
Date.

         (d)      With respect to each repayment of Loans required by Sections
4.02(a) and (b), the Borrower may designate the Types of Revolving Loans which
are to be repaid and, in the case of Eurodollar Rate Loans, the specific
Borrowing or Borrowings pursuant to which such Revolving Loans were made,
provided that: (i) repayments of Eurodollar Rate Loans pursuant to this Section
4.02 may only be made on the last day of an Interest Period applicable thereto
unless all Eurodollar Rate Loans with Interest Periods ending on such date of
required repayment and all Base Rate Loans have been paid in full; (ii) if any
repayment of Eurodollar Rate Loans constituting a single Borrowing shall reduce
the outstanding Eurodollar Rate Loans constituting such Borrowing to an amount
less than the Minimum Borrowing Amount applicable thereto, such Borrowing shall
be converted at the end of the then current Interest Period into a Borrowing of
Base Rate Loans unless such Borrowing, together with any other Revolving Loans
maintained as Base Rate Loans (or portion thereof) or Eurodollar Rate Loans
converted or continued on the same date to Eurodollar Rate Loans with the same
Interest Period as the Interest Period to which such Borrowing is then being
continued, exceeds such Minimum Borrowing Amount; and (iii) each repayment of
any Revolving Loans made pursuant to a Borrowing shall be applied pro rata among
such Revolving Loans. In the absence of a designation by the Borrower as
described in the preceding sentence, the Administrative Agent shall, subject to
the above, make such designation in its sole discretion.

         4.03     Method and Place of Payment. Except as otherwise specifically
provided herein, all payments under this Agreement or under any Note shall be
made to the Administrative Agent for the account of the Lender or Lenders
entitled thereto not later than 1:00 P.M. (New York time) on the date when due
and shall be made in Dollars in immediately available funds at the Payment
Office. The Administrative Agent will thereafter cause to be distributed on the
same day (if payment was actually received by the Administrative Agent prior to
1:00 P.M. (New York time)) like funds relating to the payment of principal or
interest ratably to the Lenders entitled thereto. Any payments under this
Agreement or under any Note which are made later than 1:00 P.M. (New York time)
on any day shall be deemed to have been made on the next succeeding Business
Day. Whenever any payment to be made hereunder or under any Note shall be stated
to be due on a day which is not a Business Day, the due date thereof shall be
extended to the next succeeding Business Day and, with respect to payments of
principal, interest shall be payable at the applicable rate during such
extension.

         4.04     Net Payments. (a) All payments made by the Borrower hereunder
of under any Note will be made without setoff, counterclaim or other defense.
Except as provided in Section 4.04(b), all such payments will be made free and
clear of, and without deduction or withholding for, any present or future taxes,
levies, imposts, duties, fees, assessments or other charges of whatever nature
now or hereafter imposed by any jurisdiction or by any political subdivision or
taxing authority thereof or therein with respect to such payments (but
excluding, except as provided in the second succeeding sentence, any tax imposed
on or measured by the net income or net profits or franchise taxes based on net
income of a Lender pursuant to the laws of the country in which it is organized
or the country in which the principal office or applicable lending office of
such Lender is located or any subdivision thereof or therein) and all interest,
penalties or similar liabilities with respect thereto (all such non-excluded
taxes, levies, imposts,

                                      -23-
<PAGE>

duties, fees, assessments or other charges being referred to collectively as
"Taxes"). If any Taxes are so levied or imposed, the Borrower agrees, subject to
Section 13.17 (to the extent applicable), to pay the full amount of such Taxes,
and such additional amounts as may be necessary so that every payment of all
amounts due under this Agreement or under any Note, after withholding or
deduction for or on account of any Taxes, will not be less than the amount
provided for herein or in such Note. If any amounts are payable in respect of
Taxes pursuant to the preceding sentence, the Borrower hereby agrees to
reimburse each Lender, within 10 days of the written request of such Lender, for
taxes imposed on or measured by the net income and net profits and franchise
taxes imposed on net income of such Lender pursuant to the laws of the country
in which it is organized or the country in which the principal office or
applicable lending office of such Lender is located or under the laws of any
political subdivision or taxing authority of any such country in which it is
organized or the country in which the principal office or applicable lending
office of such Lender is located and for any withholding of taxes as such Lender
shall determine are payable by, or withheld from, such Lender in respect of such
amounts so paid to or on behalf of such Lender pursuant to the preceding
sentence and in respect of any amounts paid to or on behalf of such Lender
pursuant to this sentence. If the Borrower pays any additional amount under this
Section 4.04 to a Lender and such Lender determines in its sole discretion that
it has actually received or realized in connection therewith any refund or any
reduction of, or credit against, its Tax liabilities in or with respect to the
taxable year in which the additional amount is paid (a "Tax Benefit"), such
Lender shall pay to the Borrower an amount that the Lender shall, in its sole
discretion, determine is equal to the net benefit, after tax, which was obtained
by such Lender in such year as a consequence of such Tax Benefit; provided,
however, that (i) any Lender may determine, in its sole discretion consistent
with the policies of such Lender, whether to seek a Tax Benefit; (ii) any Taxes
that are imposed on a Lender as a result of a disallowance or reduction
(including through the expiration of any tax credit carryover or carryback of
such Lender that otherwise would not have expired) of any Tax Benefit with
respect to which such Lender has made a payment to the Borrower pursuant to this
Section 4.04(a) shall be treated as a Tax for which the Borrower is obligated to
indemnify such Lender pursuant to this Section 4.04 without any exclusions or
defenses; and (iii) nothing in this Section 4.04(a) shall require any Lender to
disclose any confidential information to the Borrower (including, without
limitation, such Lender's tax returns). The Borrower will furnish to the
Administrative Agent within 45 days after the date the payment of any Taxes is
due pursuant to applicable law certified copies of tax receipts evidencing such
payment by the Borrower. The Borrower agrees to indemnify and hold harmless each
Lender, and reimburse such Lender within 10 days of its written request, for the
amount of any Taxes so levied or imposed and paid by such Lender.

         (b) Each Lender that is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) agrees to deliver to the Borrower
and the Administrative Agent on or prior to the Effective Date, or in the case
of a Lender that is an assignee or transferee of an interest under this
Agreement pursuant to Section 1.14, 1.15 or 13.04 (unless the respective Lender
was already a Lender hereunder immediately prior to such assignment or
transfer), on the date of such assignment or transfer to such Lender, (i) two
accurate and complete original signed copies of Internal Revenue Service Form
W-8ECI or Form W-8BEN (with respect to a complete exemption under an income tax
treaty) (or successor forms) certifying to such Lender's entitlement as of such
date to a complete exemption from United States withholding tax with respect to
payments to be made under this Agreement and under any Note, or (ii) if the
Lender is not a

                                      -24-
<PAGE>

"bank" (within the meaning of Section 881(c)(3)(A) of the Code) and cannot
deliver either Internal Revenue Service Form W-8ECI or Form W-8BEN (with respect
to a complete exemption under an income tax treaty) (or successor forms)
pursuant to clause (i) above, (x) a certificate substantially in the form of
Exhibit F (any such certificate, a "Section 4.04(b)(ii) Certificate") and (y)
two accurate and complete original signed copies of Internal Revenue Service
Form W-8BEN (with respect to the portfolio interest exemption) (or successor
form) certifying to such Lender's entitlement to a complete exemption from
United States withholding tax with respect to payments of interest to be made by
the Borrower under this Agreement and under any Note. In addition, each Lender
agrees that from time to time after the Effective Date, whenever a lapse in time
or change in circumstances renders the previous certification obsolete or
inaccurate in any material respect, it will deliver to the Borrower and the
Administrative Agent two new accurate and complete original signed copies of
Internal Revenue Service Form W-8ECI, Form W-8BEN (with respect to the benefits
of any income tax treaty), or Form W-8BEN (with respect to the portfolio
interest exemption) and a Section 4.04(b)(ii) Certificate, as the case may be,
and such other forms as may be required in order to confirm or establish the
entitlement of such Lender to a continued exemption from or reduction in United
States withholding tax with respect to payments by the Borrower under this
Agreement and any Note, or it shall immediately notify the Borrower and the
Administrative Agent of its inability to deliver any such Form or Certificate in
which case such Lender shall not be required to deliver any such Form or
Certificate pursuant to this Section 4.04(b). Notwithstanding anything to the
contrary contained in Section 4.04(a), but subject to Section 13.04(b) and the
immediately succeeding sentence, (x) the Borrower shall be entitled, to the
extent it is required to do so by law, to deduct or withhold income or similar
taxes imposed by the United States (or any political subdivision or taxing
authority thereof or therein) from interest, fees or other amounts payable
hereunder for the account of any Lender which is not a United States person (as
such term is defined in Section 7701(a)(30) of the Code) for U.S. Federal income
tax purposes to the extent that such Lender has not provided to the Borrower
U.S. Internal Revenue Service Forms that establish a complete exemption from
such deduction or withholding and (y) the Borrower shall not be obligated
pursuant to Section 4.04(a) hereof to gross-up payments to be made to a Lender
in respect of income or similar taxes imposed by the United States if (I) such
Lender has not provided to the Borrower the Internal Revenue Service Forms
required to be provided to the Borrower pursuant to this Section 4.04(b) or (II)
in the case of a payment, other than interest, to a Lender described in clause
(ii) above, to the extent that such forms do not establish a complete exemption
from withholding of such taxes. Notwithstanding anything to the contrary
contained in the preceding sentence or elsewhere in this Section 4.04 and except
as set forth in Section 13.04(b), the Borrower agrees to pay additional amounts
and to indemnify each Lender in the manner set forth in Section 4.04(a) (without
regard to the identity of the jurisdiction requiring the deduction or
withholding) in respect of any amounts deducted or withheld by it as described
in the immediately preceding sentence as a result of any changes that are
effective after the Effective Date in any applicable law, treaty, governmental
rule, regulation, guideline or order, or in the interpretation thereof, relating
to the deducting or withholding of income or similar Taxes (but, in the case of
any amount withheld or deducted by the government of the United States or a
political subdivision thereof, only if such Lender has provided the Borrower the
appropriate Internal Revenue Service Forms (and, if applicable, a Section
4.04(b)(ii) Certificate) required to be provided pursuant to the foregoing
provisions of this Section 4.04(b), if entitled to a reduced rate of withholding
or deduction, and in such event, the payment (whether as an additional

                                      -25-
<PAGE>
amount or under the indemnity) shall only be for the amount in excess of such
reduced rate of withholding or deduction).

         SECTION  5. Conditions Precedent to the Effective Date. The occurrence
of the Effective Date pursuant to Section 13.10 is subject to the satisfaction
of the following conditions:

         5.01     Execution of Agreement. On or prior to the Effective Date,
this Agreement shall have been executed and delivered as provided in Section
13.10.

         5.02     Opinion of Counsel. On the Effective Date, the Administrative
Agent shall have received from Piper Rudnick LLP, counsel to the Credit Parties,
an opinion covering the matters set forth in Exhibit G-1, addressed to the
Administrative Agent and each of the Lenders and dated the Effective Date.

         5.03     Corporate Documents; Proceedings; etc. (a) On the Effective
Date, the Administrative Agent shall have received certificates from each Credit
Party, dated the Effective Date, signed by the president, any vice-president or
a Senior Financial Officer of such Credit Party or its general partner or
managing member, as the case may be, and attested to by the secretary or any
assistant secretary of such Credit Party or its general partner or managing
member, as the case may be, in the form of Exhibit H with appropriate
insertions, together with copies of the certificate of incorporation and by-laws
(or equivalent organizational documents) of such Credit Party and the
resolutions of such Credit Party referred to in such certificate, and all of the
foregoing shall be reasonably acceptable to the Administrative Agent.

         (b)      All Company and legal proceedings and all instruments and
agreements in connection with the transactions contemplated by this Agreement
and the other Credit Documents shall be reasonably satisfactory in form and
substance to the Administrative Agent and the Required Lenders, and the
Administrative Agent shall have received all information and copies of all
documents and papers, including records of corporate proceedings, governmental
approvals, good standing certificates and bring-down telegrams or facsimiles, if
any, which the Administrative Agent reasonably may have requested in connection
therewith, such documents and papers where appropriate to be certified by proper
corporate or governmental authorities.

         5.04     Adverse Change, etc. (a) On or prior to the Effective Date,
nothing shall have occurred since September 30, 2002 (and neither the
Administrative Agent nor the Lenders shall have become aware of any facts,
conditions or other information not previously known) which the Administrative
Agent or the Required Lenders shall determine has had, or could reasonably be
expected to have, a Material Adverse Effect.

         (b)      All necessary governmental (domestic and foreign) and third
party approvals and/or consents in connection with the transactions contemplated
by the Credit Documents and otherwise referred to herein or therein shall have
been obtained and remain in effect, and all applicable waiting periods shall
have expired without any action being taken by any competent authority which
restrains, prevents, or imposes materially adverse conditions upon, the
consummation of the transactions contemplated by the Credit Documents or
otherwise referred to herein or therein. Additionally, there shall not exist any
judgment, order, injunction or other restraint issued or filed or a hearing
seeking injunctive relief or other restraint pending or notified prohi-

                                      -26-
<PAGE>

biting or imposing materially adverse conditions upon the transactions
contemplated by the Credit Documents.

         5.05     Litigation. On the Effective Date, no litigation by any entity
(private or governmental) shall be pending or threatened with respect to this
Agreement, any other Credit Document or any documentation executed in connection
herewith or therewith or the transactions contemplated hereby or thereby, or
which the Administrative Agent or the Required Lenders shall determine has had,
or could reasonably be expected to have, a Material Adverse Effect.

         5.06     Financial Statements. On or prior to the Effective Date, the
Administrative Agent shall have received true and correct copies of the
historical financial statements referred to in Section 7.05(a), which historical
financial statements shall be in form and substance satisfactory to the
Administrative Agent and the Required Lenders.

         5.07     Subsidiaries Guaranty. On the Effective Date, each Subsidiary
Guarantor shall have duly authorized, executed and delivered an Amendment to the
Existing Subsidiaries Guaranty in the form of Exhibit I-2 (as so amended and as
otherwise amended, modified or supplemented from time to time, the "Subsidiaries
Guaranty"), and the Subsidiaries Guaranty shall be in full force and effect.

         5.08     Solvency Certificate. On the Effective Date, the Borrower
shall have delivered to the Administrative Agent a solvency certificate from a
Senior Financial Officer of the Borrower in the form of Exhibit J.

         5.09     Borrowing Base Certificate. On the Effective Date, the
Administrative Agent shall have received a Borrowing Base Certificate meeting
the requirements of Section 8.01(j).

         5.10     Subordination Agreement. On the Effective Date, each Credit
Party and each obligee in respect of any Affiliate Debt shall have duly
authorized, executed and delivered an Amendment to the Existing Subordination
Agreement in the form of Exhibit K-2 (as so amended and as otherwise amended,
modified or supplemented from time to time, the "Subordination Agreement"), and
the Subordination Agreement shall be in full force and effect.

         5.11     Property Information. On or prior to the Effective Date, the
Borrower shall have delivered to the Administrative Agent the Property
Information for each Initial Mortgaged Property, all of which Property
Information shall be current in all material respects as of the Effective Date.

         5.12     Security Interests. On or prior to the Effective Date, the
Borrower shall have taken or caused to be taken all such actions as may be
necessary or reasonably requested by the Administrative Agent to give the
Administrative Agent a valid, enforceable and perfected first priority Lien on
the Initial Mortgaged Properties and the other Collateral. Such actions shall
include the following:

         (a)      the delivery to the Administrative Agent of fully executed and
acknowledged counterparts of the Mortgage, the Assignment of Rents and Leases,
the Security Agreement, the

                                      -27-
<PAGE>
Environmental Indemnity and all other Security Documents with respect to each of
the Initial Mortgaged Properties and the other Collateral, and the delivery of
evidence satisfactory to the Administrative Agent that counterparts of the
Mortgage, the Assignment of Rents and Leases and all other documents as the
Administrative Agent reasonably desires to have recorded have been or will be
recorded in all jurisdictions necessary or desirable (in the reasonable judgment
of the Administrative Agent) to create and maintain (i) valid and enforceable
first priority Liens on the fee simple and/or ground leasehold interests of the
Mortgaged Property Owners in the Initial Mortgaged Properties in favor of the
Administrative Agent on behalf of the Lenders, (ii) valid and enforceable first
priority Liens on all of the Rents and Leases with respect to the Initial
Mortgaged Properties in favor of the Administrative Agent on behalf of the
Lenders, (iii) valid and enforceable first priority Liens in all fixtures at the
Initial Mortgaged Properties in favor of the Administrative Agent on behalf of
the Lenders, as secured party, and (iv) valid and enforceable first priority
liens on and security interests in all other items of Collateral in favor of the
Administrative Agent on behalf of the Lenders;

         (b)      (i) the delivery to the Administrative Agent for filing or
recording pursuant to the Security Documents of financing statements under the
UCC (or any equivalent or similar legislation) and any other documents required
to be filed or recorded by Applicable Laws, satisfactory in form and substance
to the Administrative Agent, in all jurisdictions as may be necessary or
desirable (in the Administrative Agent's reasonable judgment) to effectively
create, perfect and maintain the liens on and security interests in the
Collateral created by the Security Documents and (ii) the delivery of evidence
that such financing statements or other documents have been or will be filed or
recorded in all jurisdictions necessary or desirable (in the reasonable judgment
of the Administrative Agent) to create, perfect and maintain valid and
enforceable first priority Liens on the Collateral in favor of the
Administrative Agent on behalf of the Lenders;

         (c)      the delivery to the Administrative Agent of a Title Policy
insuring fee simple and/or ground leasehold title to each of the Initial
Mortgaged Properties vested in a Subsidiary Guarantor and insuring the first
priority of the Lien of the Mortgage thereon in an amount reasonably required by
the Administrative Agent for each Initial Mortgaged Property, but in any event
in an amount for each Initial Mortgaged Property sufficient to avoid any
co-insurance of title losses, in each case subject only to Permitted
Encumbrances and such other title exceptions as are satisfactory to the
Administrative Agent. Such Title Policies shall be reinsured with title
insurance companies reasonably acceptable to the Administrative Agent in amounts
as required by the Administrative Agent and subject to facultative reinsurance
agreements in form satisfactory to the Administrative Agent. Such Title Policies
shall also contain such endorsements and affirmative insurance provisions as the
Administrative Agent may reasonably require to the extent the same are available
in the applicable jurisdictions. In addition, the Borrower shall have paid to
the Title Company all expenses and premiums of the Title Company in connection
with the issuance of such Title Policies and shall have paid, either directly or
through the Title Company, any recording and stamp taxes (including mortgage
recording, intangible and similar taxes) payable in connection with recording
counterparts of the Mortgage and the Assignment of Rents and Leases with respect
to each of the Initial Mortgaged Properties in the appropriate recorder's
offices or otherwise payable in connection with any Loans hereunder;

                                      -28-
<PAGE>

         (d)      the delivery to the Title Company (with copies to the
Administrative Agent) of such certificates and affidavits as the Title Company
may require in connection with the issuance of the Title Policies;

         (e)      the delivery to the Administrative Agent and the Title Company
of a Survey with respect to each of the Initial Mortgaged Properties, each of
which Surveys shall be in form and substance reasonably satisfactory to the
Administrative Agent;

         (f)      if a title insurance zoning endorsement is not included in the
Title Policy for any Initial Mortgaged Property, the delivery to the
Administrative Agent of evidence reasonably satisfactory to the Administrative
Agent that all improvements on such Initial Mortgaged Property are in material
compliance with the certificate of occupancy (or equivalent permit or approval)
for such Initial Mortgaged Property;

         (g)      the delivery to the Administrative Agent of an opinion of
counsel to the Credit Parties in each jurisdiction in which an Initial Mortgaged
Property is located covering the matters set forth in Exhibit G-2 and such other
matters as may have been reasonably requested by the Administrative Agent and in
form and substance reasonably satisfactory to the Administrative Agent,
addressed to the Administrative Agent, as agent for each of the Lenders, and
dated the Effective Date; and

         (h)      the delivery to the Administrative Agent of evidence
reasonably satisfactory to the Administrative Agent that all other filings,
recordings and other actions the Administrative Agent deems necessary or
advisable to establish, perfect and preserve the first priority Liens granted to
the Administrative Agent for the benefit of the Lenders in the Collateral, shall
have been made.

         5.13     Insurance. On or prior to the Effective Date, the Borrower
shall have delivered to the Administrative Agent (i) duplicate originals or true
and complete copies of each policy or other evidence of insurance required by
Schedule 7.22 attached to this Agreement evidencing (a) the issuance of each
such policy, (b) the payment of any premium currently due therefor and (c)
coverage which meets all of the requirements set forth therein; and (ii) a
certificate of the Borrower, signed by the president, any vice-president or a
Senior Financial Officer of the Borrower, dated the Effective Date, to the
effect that all of the insurance coverage required to be maintained by the
Borrower and its Subsidiaries under Section 7.22 is in full force and effect and
that all premiums currently due therefor have been paid.

         5.14     Material Leases. On or prior to the Effective Date, the
Borrower shall have delivered to the Administrative Agent a certified copy of
each of the Material Leases with respect to each Initial Mortgaged Property, and
each of such Material Leases shall be in full force and effect.

         5.15     Fees, etc. On the Effective Date, the Borrower shall have paid
to the Administrative Agent and each Lender all costs, fees and expenses
(including, without limitation, reasonable legal fees and expenses) payable to
the Administrative Agent and such Lender to the extent then due.

                                      -29-
<PAGE>

         The occurrence of the Effective Date shall constitute a representation
and warranty by the Borrower to the Administrative Agent and each of the Lenders
that all conditions specified in this Section 5 exist as of that time. All of
the certificates, legal opinions and other documents and papers referred to in
this Section 5, unless otherwise specified, shall be delivered to the
Administrative Agent at the Notice Office for the account of each of the Lenders
and in sufficient counterparts or copies for each of the Lenders and shall be in
form and substance satisfactory to the Administrative Agent and the Required
Lenders.

         SECTION  6. Conditions Precedent to All Credit Events. The obligation
of each Lender to make Loans (including Loans made on the Effective Date), and
the obligation of each Issuing Lender to issue Letters of Credit (including
Letters of Credit issued on the Effective Date), is subject, at the time of each
such Credit Event (except as hereinafter indicated), to the satisfaction of the
following conditions:

         6.01     Effective Date. The Effective Date shall have occurred.

         6.02     No Default; Representations and Warranties. At the time of
each such Credit Event and also after giving effect thereto, (i) there shall
exist no Default or Event of Default and (ii) all representations and warranties
contained herein and in the other Credit Documents shall be true and correct in
all material respects with the same effect as though such representations and
warranties had been made on such date (it being understood and agreed that any
representation or warranty which by its terms is made as of a specified date
shall be required to be true and correct in all material respects only as of
such specified date).

         6.03     Notice of Borrowing; Letter of Credit Request. (a) Prior to
the making of each Revolving Loan (other than a Revolving Loan made pursuant to
a Mandatory Borrowing), the Administrative Agent shall have received a Notice of
Borrowing meeting the requirements of Section 1.03(a). Prior to the making of
each Swingline Loan, the Swingline Lender shall have received the notice
referred to in Section 1.03(b)(i).

         (b)      Prior to the issuance of each Letter of Credit, the
Administrative Agent and the respective Issuing Lender shall have received a
Letter of Credit Request meeting the requirements of Section 2.03.

                  The acceptance of the benefits of each Credit Event shall
constitute a representation and warranty by the Borrower to the Administrative
Agent and each of the Lenders that all conditions specified in this Section 6
exist as of that time.

         SECTION  7. Representations, Warranties and Agreements. In order to
induce the Lenders to enter into this Agreement and to make the Loans, and issue
(or participate in) the Letters of Credit as provided herein, the Borrower makes
the following representations, warranties and agreements, all of which shall
survive the execution and delivery of this Agreement and the making of the Loans
and the issuance of the Letters of Credit, with the occurrence of the Effective
Date and each Credit Event on or after the Effective Date deemed to constitute a
representation and warranty that the matters specified in this Section 7 are
true and correct in all material respects on the Effective Date and on the date
of each such Credit Event (it being understood and agreed that any
representation or warranty which by its terms is made as of

                                      -30-
<PAGE>

a specified date shall be required to be true and correct in all material
respects only as of such specified date).

         7.01     Company and Other Status. The Borrower and each of its
Subsidiaries (i) is a duly organized and validly existing Company in good
standing under the laws of the jurisdiction of its organization, (ii) has the
requisite Company power and authority to own its property and assets and to
transact the business in which it is engaged and presently proposes to engage
and (iii) is duly qualified and is authorized to do business and is in good
standing in each jurisdiction where the ownership, leasing or operation of its
property or the conduct of its business requires such qualifications, except for
failures to be so qualified and, in the case of Persons other than a Credit
Party, for failures to be so organized, existing or in good standing, which,
either individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect.

         7.02     Company Power and Authority. Each Credit Party has the
requisite Company power and authority to execute, deliver and perform the terms
and provisions of each of the Credit Documents to which it is party and has
taken all necessary Company action to authorize the execution, delivery and
performance by it of each of such Credit Documents. Each Credit Party has duly
executed and delivered each of the Credit Documents to which it is a party, and
each of such Credit Documents constitutes its legal, valid and binding
obligation enforceable in accordance with its terms, except to the extent that
the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors'
rights and by equitable principles (regardless of whether enforcement is sought
in equity or at law).

         7.03     No Violation. Neither the execution, delivery or performance
by any Credit Party of the Credit Documents to which it is a party, nor the
occurrence of any Credit Event, nor compliance by such Credit Party with the
terms and provisions relating thereto, (i) will contravene any provision of any
Applicable Laws or Property Agreements, (ii) will conflict with or result in any
breach of any of the terms, covenants, conditions or provisions of, or
constitute a default under, or result in the creation or imposition of (or the
obligation to create or impose) any Lien upon any of the property or assets of
such Credit Party pursuant to the terms of, any indenture, mortgage, deed of
trust, credit agreement or loan agreement (other than the Security Documents),
or any other material agreement, contract or instrument, to which such Credit
Party is a party or by which it or any of its property or assets is bound or to
which it may be subject or (iii) will violate any provision of the certificate
of incorporation or by-laws (or other organizational documents) of such Credit
Party.

         7.04     Governmental Approvals. No order, consent, approval, license,
authorization or validation of, or filing, recording or registration with
(except (x) as have been obtained or made on or prior to the Effective Date or
(y) in the case of any Person which becomes a Credit Party after the Effective
Date, as have been obtained or made on or prior to the date on which such Person
became a Credit Party), or exemption by, any governmental or public body or
authority, or any subdivision thereof, is required to authorize, or is required
in connection with, (i) the execution, delivery and performance of any Credit
Document or (ii) the legality, validity, binding effect or enforceability of any
such Credit Document.

                                      -31-
<PAGE>

         7.05     Financial Statements; Financial Condition; Undisclosed
Liabilities; Projections, etc. (a) The consolidated balance sheets of the
Borrower for the fiscal year ended on December 31, 2001 and for the nine-month
period ended on September 30, 2002, and the related consolidated statements of
income, cash flows and shareholders' equity of the Borrower for the fiscal year
or nine-month period ended on such dates, as the case may be, copies of which
have been furnished to the Administrative Agent and the Lenders prior to the
Effective Date, present fairly in all material respects the consolidated
financial position of the Borrower at the date of such balance sheets and the
consolidated results of the operations of the Borrower for the periods covered
thereby. All of the foregoing historical financial statements have been prepared
in accordance with GAAP. Since September 30, 2002, there has been no change in
the business, operations, property, assets, liabilities or condition (financial
or otherwise) of the Borrower or any of its Subsidiaries that has had, or could
reasonably be expected to have, a Material Adverse Effect.

         (b)      On and as of the Effective Date, after giving effect to the
transactions contemplated in this Agreement and to all Indebtedness (including
the Loans and the Subsidiaries Guaranty) being incurred or assumed by any Credit
Party, (a) the sum of the assets, at a fair valuation, of the Borrower and its
Subsidiaries taken as a whole and of the Borrower on a stand-alone basis will
exceed their respective debts; (b) the Borrower and its Subsidiaries taken as a
whole and the Borrower on a stand-alone basis have (or has) not incurred and do
not intend to incur, and do not believe that they will incur, debts beyond their
ability to pay such debts as such debts mature; and (c) the Borrower and its
Subsidiaries taken as a whole and the Borrower on a stand-alone basis will have
sufficient capital with which to conduct their respective businesses. For
purposes of this Section 7.05(b), "debt" means any liability on a claim, and
"claim" means (i) right to payment, whether or not such a right is reduced to
judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured, or unsecured or (ii) right to
an equitable remedy for breach of performance if such breach gives rise to a
payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured
or unsecured.

         (c)      Except (i) as disclosed in the financial statements referred
to in Section 7.05(a), (ii) for liabilities arising in the ordinary course of
business since September 30, 2002 and (iii) any liabilities under this Agreement
and the other Credit Documents, there were as of the Effective Date no
liabilities or obligations with respect to the Borrower or any Subsidiary of the
Borrower of any nature whatsoever (whether absolute, accrued, contingent or
otherwise and whether or not due) which, either individually or in aggregate,
could reasonably be expected to have a Material Adverse Effect. As of the
Effective Date, the Borrower does not know of any basis for the assertion
against it or any of its Subsidiaries of any liability or obligation of any
nature whatsoever that is not disclosed in the financial statements referred to
in Section 7.05(a) which, either individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.

         (d)      On and as of the Effective Date, the Projections previously
delivered to the Administrative Agent and the Lenders were prepared in good
faith based upon reasonable assumptions by management of the Borrower and
reflect the Borrower's actual expectations for its operations and performance
for the periods covered by the Projections. On the Effective Date, the Borrower
believed that the Projections were reasonable and attainable.

                                      -32-
<PAGE>

         7.06     Litigation. (a) There are no actions, suits or proceedings
(including, without limitation, any Environment Claims) pending or, to the best
knowledge of the Borrower, threatened (i) with respect to any Credit Document or
the transactions contemplated thereby or (ii) that individually or in the
aggregate could reasonably be expected to have a Material Adverse Effect.

         (b) There are no final nonappealable judgments or decrees in an
aggregate amount of $25,000,000 or more entered by a court or courts of
competent jurisdiction against any Credit Party (other than any judgment as to
which, and only to the extent, a reputable and solvent insurance company has
acknowledged coverage of such claim in writing or which have been paid).

         7.07     True and Complete Disclosure. All factual information (taken
as a whole) furnished by any Credit Party in writing to the Administrative Agent
or any Lender (including, without limitation, all information contained in the
Credit Documents and the Property Information with respect to each Mortgaged
Property) for purposes of or in connection with this Agreement, the other Credit
Documents or any transaction contemplated herein or therein is, and all other
such factual information (taken as a whole) hereafter furnished by or on behalf
of any Credit Party in writing to the Administrative Agent or any Lender will
be, true and accurate in all material respects on the date as of which such
information is dated or certified and not incomplete by knowingly omitting to
state any fact necessary to make such information (taken as a whole) not
misleading in any material respect at such time in light of the circumstances
under which such information was provided.

         7.08     Use of Proceeds; Margin Regulations. (a) All proceeds of the
Loans will be used for the general corporate purposes of the Borrower and its
Subsidiaries (including, but not limited to, making Investments and paying
Dividends as, and to the extent, permitted by this Agreement); provided,
however, proceeds of Swingline Loans may not be used to repay any then
outstanding Swingline Loans.

         (b) Neither the making of any Loan nor the use of the proceeds thereof
nor the occurrence of any other Credit Event will violate or be inconsistent
with the provisions of Regulation T, U or X of the Board of Governors of the
Federal Reserve System. At the time of each Credit Event occurring on or after
the Effective Date, not more than 25% of the value of either (x) the Restricted
Property taken as a whole or (y) the assets of the Borrower and its Subsidiaries
taken as a whole will constitute Margin Stock.

         7.09     Tax Returns and Payments. The Borrower and each of its
Subsidiaries has timely filed or caused to be timely filed with the appropriate
taxing authority, all Federal and all material state, local, foreign and other
returns, statements, forms and reports for taxes (the "Returns") required to be
filed by or with respect to the income, properties or operations of the Borrower
and/or any of its Subsidiaries. The Returns accurately reflect all liability for
taxes of each Credit Party and each of its Subsidiaries for the periods covered
thereby except for any such taxes that, either individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect. The Borrower
and each of its Subsidiaries have paid all material taxes payable by them other
than taxes contested in good faith and for which adequate reserves have been
established in accordance with generally accepted accounting principles. There
is no

                                      -33-
<PAGE>

action, suit, proceeding, investigation, audit, or claim now pending or,
to the knowledge of the Borrower, threatened by any authority regarding any
taxes relating to any Credit Party or any of its Subsidiaries which, either
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effective.

         7.10     Subsidiaries. Schedule 7.10 sets forth, as of the Effective
Date, (a) on Part A thereof, each Subsidiary (other than an immaterial
Subsidiary) of the Borrower (showing the direct and indirect ownership interests
therein), and (b) on Part B thereof, each Subsidiary Guarantor (showing the
direct and indirect ownership interests therein and the Mortgaged Properties
owned by such Subsidiary Guarantor).

         7.11     Compliance with Applicable Laws. The Borrower and each of its
Subsidiaries is in compliance with all Applicable Laws in respect of the conduct
of its business and the ownership of its property (including, without
limitation, all building and zoning ordinances and codes), except such
noncompliances as could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

         7.12     Investment Company Act. Neither the Borrower nor any
Subsidiary thereof is an "investment company" or a company "controlled" by an
"investment company," within the meaning of the Investment Company Act.

         7.13     Public Utility Holding Company Act. Neither the Borrower nor
any Subsidiary thereof is a "holding company," or a "subsidiary company" of a
"holding company," or an "affiliate" of a "holding company" or of a "subsidiary
company" of a "holding company" within the meaning of the Public Utility Holding
Company Act of 1935, as amended.

         7.14     Status as a REIT. The Borrower is organized in conformity with
the requirements for qualification as a real estate investment trust under the
Code. The Borrower will meet all of the requirements for qualification as a real
estate investment trust under the Code for its taxable year ending December 31,
2002 and will elect to be treated as such for such taxable year. The Borrower is
or will be in a position to qualify as a real estate investment trust under the
Code for each taxable year thereafter and its proposed methods of operation will
enable it to so qualify.

         7.15     Compliance with ERISA. (a) Except as could not, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect: each Plan (and each related trust, insurance contract or fund)
is in substantial compliance with its terms and with all applicable laws,
including, without limitation, ERISA and the Code; each Plan (and each related
trust, if any) which is intended to be qualified under Section 401(a) of the
Code has received a determination letter from the Internal Revenue Service to
the effect that it meets the requirements of Sections 401(a) and 501(a) of the
Code; no Reportable Event has occurred; no Multiemployer Plan is insolvent or in
reorganization; no Plan is subject to Section 412 of the Code or Section 302 or
Title IV of ERISA; all contributions required to be made with respect to a Plan
or a Multiemployer Plan have been timely made; no member of the ERISA Group has
incurred any liability (including any indirect, contingent or secondary
liability) to or on account of a Plan or Multiemployer Plan pursuant to Section
409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or
Section 401(a)(29), 4971 or 4975 of the Code or, to the knowledge of

                                      -34-
<PAGE>

the Borrower, expects to incur any such liability under any of the foregoing
sections with respect to any Plan or Multiemployer Plan; no condition exists
which presents a material risk to any member of the ERISA Group of incurring a
liability to or on account of a Plan or Multiemployer Plan pursuant to the
foregoing provisions of ERISA and the Code; no action, suit, proceeding,
hearing, audit or investigation with respect to the administration, operation or
the investment of assets of any Plan (other than routine claims for benefits) is
pending, or, to the knowledge of the Borrower, is expected or threatened; using
actuarial assumptions and computation methods consistent with Part 1 of subtitle
E of Title IV of ERISA, the aggregate liabilities of the ERISA Group to all
Multiemployer Plans in the event of a complete withdrawal therefrom, as of the
close of the most recent fiscal year of each such Multiemployer Plan ended prior
to the date of the most recent Credit Event, would not result in a liability;
each group health plan (as defined in Section 607(1) of ERISA or Section
4980B(g)(2) of the Code) which covers or has covered employees or former
employees of any member of the ERISA Group has at all times been operated in
compliance with the provisions of Part 6 of subtitle B of Title I of ERISA and
Section 4980B of the Code; no lien imposed under the Code or ERISA on the assets
of any member of the ERISA Group exists or, to the knowledge of the Borrower, is
likely to arise on account of any Plan or Multiemployer Plan; and no member of
the ERISA Group maintains or contributes to any employee welfare benefit plan
(as defined in Section 3(1) of ERISA) which provides benefits to retired
employees or other former employees (other than as required by Section 601 of
ERISA) or any Plan the obligations with respect to which could reasonably be
expected to be material.

         (b) Except as could not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect: each Foreign Pension
Plan has been maintained in substantial compliance with its terms and with the
requirements of any and all applicable laws, statutes, rules, regulations and
orders and has been maintained, where required, in good standing with applicable
regulatory authorities; all contributions required to be made with respect to a
Foreign Pension Plan have been timely made; no member of the ERISA Group has
incurred any obligation in connection with the termination of, or withdrawal
from, any Foreign Pension Plan; and the present value of the accrued benefit
liabilities (whether or not vested) under each Foreign Pension Plan, determined
as of the end of the Borrower's most recently ended fiscal year on the basis of
actuarial assumptions, each of which is reasonable, did not exceed the current
value of the assets of such Foreign Pension Plan allocable to such benefit
liabilities or, alternatively, each of the Credit Parties has established
adequate reserves for the present value of such accrued benefit liabilities,
determined as described herein, in the financial statements referred to in
Section 7.05(a) hereof.

         7.16     Environmental Compliance. (a) (i) There are in effect all
Environmental Approvals which are required to be obtained under all
Environmental Laws with respect to the business and properties of the Borrower
and its Subsidiaries, except for such Environmental Approvals the absence of
which could not reasonably be expected to have a Material Adverse Effect and
(ii) the Borrower and each of its Subsidiaries is in compliance with the terms
and conditions of all such Environmental Approvals, and is also in compliance
with all other Environmental Laws or any order, decree, judgment or injunction
issued, entered or approved thereunder, except to the extent failure to comply,
either individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect;

                                      -35-
<PAGE>

         (b) (i) there are no Environmental Claims pending or threatened by any
Governmental Authority with respect to any failure or alleged failure by the
Borrower or any of its Subsidiaries to have any Environmental Approval required
in connection with the conduct of the business of, or properties owned, leased
or operated (currently or in the past) by, the Borrower or any of its
Subsidiaries, or with respect to any generation, treatment, storage, recycling,
transportation, Release or disposal of any Hazardous Material generated by the
Borrower or any of its Subsidiaries, in each case to the extent that such
Environmental Claims, either individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effect;

         (ii)     no Hazardous Material has been Released by the Borrower or any
of its Subsidiaries at any property owned, leased or operated (currently or in
the past) by the Borrower or any of its Subsidiaries, in each case to the extent
that such Releases, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect;

         (iii)    no friable asbestos is present at any of the properties owned,
leased or operated by the Borrower or any of its Subsidiaries to the extent that
such presence of asbestos, either individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect;

         (iv)     there are no underground storage tanks for Hazardous Material
at any properties currently owned, leased or operated by the Borrower or any of
its Subsidiaries to the extent that such tanks, either individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect; and

         (v)      there are no other facts, circumstances or conditions relating
to environmental matters of the Borrower or any of its Subsidiaries, their
operations or their currently owned, leased or operated properties which, either
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.

         7.17     Patents, Trademarks, etc. The Borrower and each of its
Subsidiaries has obtained and holds in full force and effect all patents,
trademarks, service marks, trade names, copyrights and other such rights, free
from burdensome restrictions, which are necessary for the operation of its
business as presently conducted, the absence or impairment of which, either
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

         7.18     No Default. No Default or Event of Default is in existence.
Neither the Borrower nor any of its Subsidiaries is in default in any material
respect beyond any applicable grace period under or with respect to any other
material agreement, instrument or undertaking to which it is a party or by which
it or any of its property is bound in any respect, the existence of which
default, either individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect.

         7.19     Licenses, etc. The Borrower and each of its Subsidiaries has
obtained and holds in full force and effect, all franchises, licenses, permits,
certificates, authorizations, qualifications, accreditations, easements, rights
of way and other consents and approvals which are necessary for the operation of
its businesses as presently conducted, the absence of which,

                                      -36-
<PAGE>

either individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

         7.20     No Burdensome Restrictions. Neither the Borrower nor any of
its Subsidiaries is a party to any agreement or instrument or subject to any
other obligation or any charter or corporate or partnership restriction, as the
case may be, which, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

         7.21     Labor Matters. Neither the Borrower nor any of its
Subsidiaries is engaged in any unfair labor practice that could reasonably be
expected, either individually or in the aggregate, to have a Material Adverse
Effect. There is (i) no unfair labor practice complaint pending against the
Borrower or any of its Subsidiaries or, to the knowledge of the Borrower,
threatened against the Borrower or any of its Subsidiaries, before the National
Labor Relations Board (or any foreign equivalent thereof), and no grievance or
arbitration proceeding arising out of or under any collective bargaining
agreement is so pending against the Borrower or any of its Subsidiaries or, to
the knowledge of the Borrower, threatened against the Borrower or any of its
Subsidiaries, (ii) no strike, labor dispute, slowdown or stoppage pending
against the Borrower or any of its Subsidiaries or, to the knowledge of the
Borrower, threatened against the Borrower or any of its Subsidiaries, and (iii)
no union representation question exists with respect to the employees of the
Borrower or any of its Subsidiaries, except (with respect to any matter
specified in clause (i), (ii) or (iii) above, either individually or in the
aggregate) such as could not reasonably be expected to have a Material Adverse
Effect.

         7.22     Insurance. (a) The Borrower and each of its Subsidiaries
maintains insurance in respect of all Real Estate Assets and other Property
(other than the Mortgaged Properties) owned, leased or operated by it, in
accordance with the requirements set forth in Part A of Schedule 7.22.

         (b) The Borrower and the Mortgaged Property Owners maintain insurance
with respect to the Mortgaged Properties in accordance with the requirements set
forth in Part B of Schedule 7.22.

         (c) All currently due premiums have been paid with respect to all
insurance required to be maintained by the Borrower and its Subsidiaries
pursuant to this Section 7.22.

         7.23 Capitalization. All outstanding shares of capital stock of the
Borrower and each of the Subsidiary Guarantors have been duly and validly issued
and are fully paid and non-assessable. No Subsidiary Guarantor has outstanding
any capital stock or other securities convertible into or exchangeable for its
capital stock or any rights to subscribe for or to purchase, or any options for
the purchase of, or any agreement providing for the issuance (contingent or
otherwise) of, or any calls, commitments or claims of any character relating to,
its capital stock, except for options, warrants and rights to purchase shares
held by the Borrower or any Wholly-Owned Subsidiary of the Borrower or, in the
case of any Subsidiary Guarantor which is not a Wholly-Owned Subsidiary or may
in the future become a Subsidiary which is not a Wholly-Owned Subsidiary, by any
other Person so long as the Mortgaged Property or Mortgaged Properties owned by
such Subsidiary Guarantor would not fail to satisfy all of the Mortgaged

                                      -37-
<PAGE>

Property Conditions if the Borrower or such Wholly-Owned Subsidiary of the
Borrower and such Person fully exercised such options, warrants and rights to
purchase shares.

         7.24     Mortgaged Properties. (a) There are no outstanding options,
rights of first refusal, rights of first offer or similar rights to purchase or
otherwise acquire any Mortgaged Property Owner's interest in any Mortgaged
Property. Each Mortgaged Property Owner has good and marketable fee simple title
to and/or a valid ground leasehold interest in each of its Mortgaged Properties
and good title to the remainder of the Collateral purported to be owned or
leased by it free and clear of all Liens, in each case except Permitted
Encumbrances. All material fixtures, furnishings, attachments and equipment
necessary for the operation, use and occupancy of each Mortgaged Property have
been installed or incorporated into such Mortgaged Property and a Mortgaged
Property Owner is the sole owner or lessee of all of the same, free and clear of
all chattel mortgages, conditional vendor's liens and other Liens and security
interests other than Permitted Encumbrances. No tax Liens have been filed
against any Mortgaged Property Owner and/or any of the Mortgaged Properties,
other than Liens for non-delinquent real property taxes.

         (b) The provisions of the Security Documents are effective to create,
perfect and maintain, upon proper filing or recording or taking of possession,
as applicable, in favor of the Administrative Agent for the benefit of the
Lenders, valid and legally enforceable Liens on all of the Mortgaged Properties
and other Collateral purported to be encumbered thereby and, when all necessary
recordings and filings have been effected in all necessary public offices, and
payment is made of any applicable mortgage recording, intangible and/or similar
taxes, the Security Documents will constitute perfected Liens on all of such
Mortgaged Properties and all of the other Collateral prior and superior to all
other Liens except Permitted Encumbrances. Each Mortgage upon execution and
delivery by a Subsidiary Guarantor will be a valid and enforceable first
priority Lien on the Mortgaged Property that such Mortgage purports to encumber,
except for Permitted Encumbrances, and such Mortgage, when recorded in the
property records of the county in which such Mortgaged Property is located and
upon payment of any applicable mortgage recording, intangible and/or similar
taxes, will be a valid and enforceable first priority Lien on such Mortgaged
Property in favor of the Administrative Agent for the benefit of the Lenders,
which Mortgaged Property will then be free and clear of all Liens having
priority over the first Lien of such Mortgage, except for Permitted
Encumbrances. Each Assignment of Rents and Leases upon execution and delivery by
a Subsidiary Guarantor and recordation of such Assignment of Rents and Leases in
the property records of the county in which the Mortgaged Property affected by
such Assignment of Rents and Leases is located and upon payment of any
applicable recording or intangible taxes, will be a valid and enforceable first
priority present assignment of or Lien on all Leases affecting such Mortgaged
Property and of all Rents of and from such Mortgaged Property and of all
security for such Leases (including, without limitation, cash or securities
deposited as security under such Leases subject to the prior right of the
Tenants making such deposits), free and clear of all Liens having priority over
such Assignment of Rents and Leases, except for Permitted Encumbrances. No
mechanic's liens have been filed and remain in effect against any Mortgaged
Property, except as specifically disclosed and insured against in the Title
Policy for such Mortgaged Policy. All filings (including all financing
statements under the UCC) have been delivered to the Administrative Agent for
filing in the public office in which such filings are required or advisable to
perfect the Liens on each of the Mortgaged Properties and the other Collateral
granted pursuant to the Security Documents and,

                                      -38-
<PAGE>

except for the filing of continuation statements with respect to such financing
statements as may be required to be filed at periodic intervals, no periodic
refiling or periodic recording is presently required to protect and preserve
such Liens.

         (c) The use and operation of each Mortgaged Property as office,
industrial or flex building(s) with related uses, separate and apart from any
other properties, constitutes a legal use under applicable zoning regulations
and complies in all material respects with all Applicable Laws, Property
Agreements and Insurance Requirements and does not violate any Authorizations to
which the Mortgaged Property Owner thereof is a party or by which such Mortgaged
Property Owner or Mortgaged Property is bound, except for violations and
failures to comply which could not reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect. Neither the zoning
nor any right of access to adjacent public streets or use of any Mortgaged
Property is to any material extent dependent upon or related to any property
other than such Mortgaged Property.

         (d) There have been issued in respect of each Mortgaged Property all
Authorizations necessary to own, operate, use and occupy such Mortgaged Property
in the manner operated by the relevant Mortgaged Property Owner (including any
required permits relating to Hazardous Materials) other than any such
Authorizations which, if not issued, could not reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect. Neither the
Borrower nor any Mortgaged Property Owner nor, to the knowledge of the Borrower,
any prior owner thereof has received any notice of violation or revocation of
such Authorizations except for those which, either individually or in the
aggregate, could not reasonably be expected to have, either individually or in
the aggregate, a Material Adverse Effect.

         (e) Except as otherwise disclosed in the Engineering Reports, (i) each
Mortgaged Property is free of material structural defects and is in good repair
(normal wear and tear excepted) and all building systems and other items of
Collateral therein are in good working order in all material respects (normal
wear and tear excepted) and (ii) each Mortgaged Property is free and clear of
any damage that would affect materially and adversely the value of such
Mortgaged Property or the use of such Mortgaged Property for its intended
purposes. To the knowledge of the Borrower, except as otherwise disclosed in the
Title Policies and Surveys, no improvement at any Mortgaged Property encroaches
upon any building line, setback line, side yard line or any recorded or visible
easement.

         (f) No condemnation or other like proceedings (including relocation of
any roadways abutting any Mortgaged Property or change in grade of such roadways
or denial of access to any Mortgaged Property) that has had or could reasonably
be expected to have, either individually or in the aggregate, a Material Adverse
Effect, are pending nor, to the knowledge of the Borrower, threatened against
any Mortgaged Property in any manner whatsoever. No casualty has occurred to any
Mortgaged Property that has had or could reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect.

         (g) To the extent necessary for the full utilization of each Mortgaged
Property in accordance with its current use, telephone services, gas, steam,
electric power, storm sewers, sanitary sewers and water facilities and all other
utility services are available to such Mortgaged

                                      -39-
<PAGE>

Property, are adequate to serve such Mortgaged Property, exist at the boundaries
of such Mortgaged Property and are not subject to any conditions, other than
normal charges to the utility supplier, which would limit the use of such
utilities. All streets and easements necessary for access to and the occupancy
and operation of each Mortgaged Property are available at the boundaries of such
Mortgaged Property. All necessary rights-of-way for all roads, which are
sufficient to permit each Mortgaged Property to be utilized fully for its
current use, have been completed and are serviceable, and, to the knowledge of
the Borrower, all public rights-of-way through or adjacent to each Mortgaged
Property have been acquired and dedicated and accepted for maintenance and
public use by the applicable Governmental Authorities.

         (h) Except as otherwise disclosed in the Environmental Reports, none of
the improvements on any Mortgaged Property are constructed on land designated by
any Governmental Authority having jurisdiction as wetlands.

         (i) Each Mortgaged Property is comprised of one or more parcels, each
of which, to the knowledge of the Borrower, constitutes a separate tax lot and
none of which constitutes a portion of any other tax lot.

         (j) Each of the Material Leases with respect to each Mortgaged Property
is in full force and effect and no Person has failed in any respect to perform
any obligation or covenant or satisfy any condition required by any of such
Material Leases to be performed or complied with, except where failure to so
perform or comply has not had and could not reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect. No
litigation is currently pending or has been threatened by any Person in
connection with any of the Material Leases that has had, or could reasonably be
expected to have, either individually or in the aggregate, a Material Adverse
Effect.

         (k) The leasing, maintenance and operation of each of the Mortgaged
Properties is managed by the Borrower, the Co-Borrower if formed or a
Wholly-Owned Subsidiary of the Borrower or the Co-Borrower. All of such
management rights are subject and subordinate to the Security Documents.

         7.25     Sears Tower Memorandum. The Sears Tower Memorandum is true and
correct in all material respects.

         SECTION 8.  Affirmative Covenants. The Borrower hereby covenants and
agrees that on and after the Effective Date and until the Total Commitment and
all Letters of Credit have terminated and the Loans, Notes and Unpaid Drawings
(in each case together with interest thereon) and all other Obligations are paid
in full:

         8.01     Information Covenants. The Borrower will furnish to the
Administrative Agent and each Lender:

         (a) Quarterly Financial Statements. (A) Within 90 days after the close
of each of the first three quarterly accounting periods in each fiscal year of
the Borrower (or, if sooner, within five Business Days after same are filed
with the SEC), (i) the consolidated balance sheet of the Borrower as at the end
of such quarterly accounting period and the related consolidated statements of
income and retained earnings and statement of cash flows for such quarterly

                                      -40-
<PAGE>

accounting period and for the elapsed portion of the fiscal year ended with
the last day of such quarterly accounting period, in each case setting forth
comparative figures for the related periods in the prior fiscal year, all of
which shall be certified by a Senior Financial Officer of the Borrower that
they fairly present in all material respects in accordance with GAAP the
consolidated financial condition of the Borrower as of the dates indicated and
the results of its operations for the periods indicated, subject to normal
year-end audit adjustments and the absence of footnotes, and (ii) management's
discussion and analysis of the important operational and financial developments
during such quarterly accounting period (it being understood and agreed that,
the delivery by the Borrower to the Administrative Agent and each of the
Lenders of the Borrower's Form 10-Q report (including all exhibits and
attachments thereto, other than those exhibits and attachments which have been
incorporated in such From 10-Q report by reference and have been previously
filed with the SEC) as filed with the SEC for the respective quarterly
accounting period within the time period otherwise required by this Section
8.01(a)(A) and certified by a Senior Financial Officer of the Borrower shall
satisfy the Borrower's obligations under this Section 8.01(a)(A)).

         (B) Within 45 days after the close of each quarterly accounting period
in each fiscal year of the Borrower, (i) a complete lease rent roll for each
Mortgaged Property and a copy of each Lease not previously delivered to the
Administrative Agent pursuant to this Section 8.01(a)(B) or Sections 5 or
8.13(a) which, either individually or in combination with other Leases, demises
20,000 or more square feet of space in any Mortgaged Property to a single Tenant
and/or its Affiliates, in each case certified by a Senior Financial Officer of
the Borrower to be true and correct in all material respects and (ii) complete
operating statements (including occupancy statements and statements of Net
Operating Income) for the Mortgaged Properties (both on an individual basis and
taken as a whole) for such quarterly accounting period and for the elapsed
portion of the fiscal year ended with the last day of such quarterly accounting
period (in each case (to the extent available) setting forth comparative figures
for the related periods in the prior fiscal year, all of which shall be
certified by a Senior Financial Officer of the Borrower that they fairly present
in all material respects in accordance with GAAP all such operating information,
subject to normal year-end audit adjustments).

         (b) Annual Financial Statements. (A) Within 120 days after the close of
each fiscal year of the Borrower (or, if sooner, within five Business Days after
same are filed with the SEC), (i) the consolidated balance sheet of the Borrower
as at the end of such fiscal year and the related consolidated statements of
income and retained earnings and of cash flows for such fiscal year setting
forth comparative figures for the preceding fiscal year and certified by
PricewaterhouseCoopers LLP, any other currently existing "Big Four" independent
certified public accounting firm or such other independent certified public
accountants of recognized national standing reasonably acceptable to the
Administrative Agent, and (ii) management's discussion and analysis of the
important operational and financial developments during such fiscal year (it
being understood and agreed that the delivery by the Borrower to the
Administrative Agent and each of the Lenders of the Borrower's Form 10-K report
(including all exhibits and attachments thereto, other than those exhibits and
attachments which have been incorporated in such Form 10-K report by reference
and have been previously filed with the SEC) as filed with the SEC for the
respective fiscal year within time period otherwise required above by this
Section 8.01(b)(A) and certified to by a Senior Financial Officer of the
Borrower and containing

                                      -41-
<PAGE>

the accountant's certification and report as described above shall satisfy the
Borrower's obligations under this Section 8.01(b)(A)).

         (B) Within 90 days after the close of each fiscal year of the Borrower,
complete operating statements (including occupancy statements and statements of
Net Operating Income) for the Mortgaged Properties (both on an individual basis
and taken as a whole) for such fiscal year, all of which shall be certified by a
Senior Financial Officer of the Borrower that they fairly present in all
material respects in accordance with GAAP such operating information.

         (c) Notice of Certain Capital Events. As soon as possible and in any
event within 10 Business Days after the occurrence thereof, written notice (in
reasonable detail) of any of the following events:

                  (i)      any incurrence or issuance of Indebtedness by any
         Credit Party of $50,000,000 or more (other than intercompany
         Indebtedness among the Borrower and its Subsidiaries which is
         eliminated in the consolidated financial statements of the Borrower);

                  (ii)     any incurrence or issuance of Indebtedness for
         borrowed money by any Subsidiary of the Borrower that is not a Credit
         Party of $50,000,000 or more to the extent that all or any portion of
         such Indebtedness is Recourse to a Credit Party (other than
         intercompany Indebtedness among the Borrower and its Subsidiaries which
         is eliminated in the consolidated financial statements of the
         Borrower);

                  (iii)    any Asset Sale or purchase of assets by the Borrower
         or any of its Subsidiaries of $50,000,000 or more; and

                  (iv)     any equity issuance of, or capital contribution to,
         the Borrower or any Subsidiary thereof of $100,000,000 or more (other
         than equity contributions made to a Subsidiary of the Borrower to the
         extent made by the Borrower or another Subsidiary thereof).

         (d) Budgets. No later than 30 days following the first day of each
fiscal year of the Borrower, (i) complete operating and capital expenditure
budgets in the forms customarily prepared by the Borrower or the Mortgaged
Property Owners for the Mortgaged Properties (both on an individual basis and
taken as a whole) for such fiscal year, and (ii) a budget (including budgeted
statements of income, sources and uses of cash and balance sheets) for the
Borrower and its Consolidated Entities on a consolidated basis in the form
customarily prepared by the Borrower (i) for each of the four fiscal quarters of
such fiscal year prepared in detail and (ii) for the immediately succeeding
fiscal year prepared in summary form, in each case setting forth, with
appropriate discussion, the principal assumptions upon which such budgets are
based.

         (e) Officer's Certificates. At the later of (x) the time of the
delivery of the financial statements provided for in Sections 8.01(a) and (b)
and (y) 60 days after the close of the accounting period to which such financial
statements relate, (i) a Compliance Certificate of a Senior Financial Officer of
the Borrower to the effect that no Default or Event of Default has occurred and
is continuing or, if any Default or Event of Default has occurred and is
continuing, specifying the nature and extent thereof, which certificate shall
set forth (in reasonable detail) the

                                      -42-
<PAGE>
calculations required to establish (i) whether the Borrower and its Subsidiaries
were in compliance with the provisions of Sections 8.11, 9.01(h), 9.02(b),
9.03(b), 9.06, 9.10 through 9.14 and 9.17, inclusive, in each case, at the end
of such period, and (ii) the calculations required to establish the Applicable
Margin.

         (f) Notice of Default, or Material Adverse Effect. Promptly, and in any
event within five Business Days after an executive or financial officer of the
Borrower obtains actual knowledge thereof, notice of (i) the occurrence of any
event which constitutes a Default or an Event of Default, (ii) any litigation or
governmental investigation or proceeding (including, without limitation, any
Environmental Claim) pending (x) against the Borrower or any of its Subsidiaries
with respect to any material Indebtedness of the Borrower or any of its
Subsidiaries which could reasonably be expected to have a Material Adverse
Effect or (y) with respect to any Credit Document or (iii) any other event,
change or circumstance that has had, or could reasonably be expected to have, a
Material Adverse Effect.

         (g) Other Reports and Filings. Promptly after the filing or delivery
thereof, copies of all other financial information, proxy materials and reports,
if any, which the Borrower or any of its Subsidiaries shall publicly file with
the Securities and Exchange Commission or any successor thereto (the "SEC"), or
shall deliver to its shareholders.

         (h) ERISA. As soon as possible and, in any event, within twenty (20)
days after any member of the ERISA Group knows or has reason to know of the
occurrence of any of the following to the extent that any such occurrence,
either individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, a certificate of a Senior Financial Officer of the
Borrower setting forth the full details as to such occurrence and the action, if
any, that such member of the ERISA Group is required or proposes to take,
together with any notices required or proposed to be given or filed by such
member of the ERISA Group to or with the PBGC or any other government agency, or
a Plan or Multiemployer Plan participant and any notices received by such member
of the ERISA Group from the PBGC or any other government agency, or a Plan or
Multiemployer Plan participant with respect thereto: that a Reportable Event has
occurred (except to the extent that the Borrower has previously delivered to
each Lender a certificate and notices (if any) concerning such event pursuant to
the next clause hereof); that a contributing sponsor (as defined in Section
4001(a)(13) of ERISA) of a Plan subject to Title IV of ERISA is subject to the
advance reporting requirement of PBGC Regulation Section 4043.61 (without regard
to subparagraph (b)(1) thereof), and an event described in subsection .62, .63,
..64, .65, .66, .67 or .68 of PBGC Regulation Section 4043 is reasonably expected
to occur with respect to such Plan within the following 30 days; that an
accumulated funding deficiency, within the meaning of Section 412 of the Code or
Section 302 of ERISA, has been incurred or an application may be or has been
made for a waiver or modification of the minimum funding standard (including any
required installment payments) or an extension of any amortization period under
Section 412 of the Code or Section 303 or 304 of ERISA with respect to a Plan or
Multiemployer Plan; that any contribution required to be made with respect to a
Plan, Multiemployer Plan or Foreign Pension Plan has not been timely made; that
a Plan or Multiemployer Plan has been or may be terminated, reorganized,
partitioned or declared insolvent under Title IV of ERISA; that a Plan has an
Unfunded Current Liability; that proceedings may be or have been instituted to
terminate or appoint a trustee to administer a Plan which is subject to Title IV
of ERISA; that a proceeding has been instituted pursuant to Section

                                      -43-
<PAGE>

515 of ERISA to collect a delinquent contribution to a Plan or a Multiemployer
Plan; that any member of the ERISA Group will or may incur any liability
(including any indirect, contingent, or secondary liability) to or on account of
the termination of or withdrawal from a Plan or Multiemployer Plan under Section
4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or with respect to a Plan
under Section 401(a)(29), 4971, 4975 or 4980 of the Code or Section 409, 502(i)
or 502(l) of ERISA or with respect to a group health plan (as defined in Section
607(1) of ERISA or Section 4980B(g)(2) of the Code) under Section 4980B of the
Code; or that any member of the ERISA Group may incur any liability pursuant to
any employee welfare benefit plan (as defined in Section 3(1) of ERISA) that
provides benefits to retired employees or other former employees (other than as
required by Section 601 of ERISA) or any Plan or any Foreign Pension Plan. Each
member of the ERISA Group shall ensure that all Foreign Pension Plans
administered by it or into which it makes payments obtains or retains (as
applicable) registered status under and as required by applicable law and is
administered in a timely manner in all respects in compliance with all
applicable laws except where the failure to do any of the foregoing could not
reasonably be expected to have a Material Adverse Effect.

         (i) Environmental. As soon as possible and in any event within 10
Business Days after the Borrower or any of its Subsidiaries obtains knowledge of
any of the following, written notice of (i) any written notice, claim, complaint
or order to the effect that the Borrower or any of its Subsidiaries is or may be
liable to any Person as a result of any event, circumstance or occurrence under
any Environmental Law, including the Release by the Borrower, any of its
Subsidiaries, or any other Person of any Hazardous Materials into the
environment or requiring that action be taken to respond to or clean up a
Release of Hazardous Materials into the environment, (ii) any condition or
occurrence on any Real Estate Asset owned, leased or operated by the Borrower or
any of its Subsidiaries that (x) results in non-compliance by the Borrower or
any of its Subsidiaries with any applicable Environmental Law, (y) could
reasonably be anticipated to form the basis of an Environmental Claim against
the Borrower or any of its Subsidiaries, or (z) could reasonably be anticipated
to cause such Real Estate Asset to be subject to any restrictions on the
ownership, lease, occupancy, use or transferability by the Borrower or any of
its Subsidiaries of its interest in such Real Estate Asset under any
Environmental Law, (iii) any written notice, complaint or citation alleging any
violation of any Environmental Law or any Environmental Approval by the Borrower
of any of its Subsidiaries or (iv) the taking of any removal or remedial action
in response to the actual or alleged presence of any Hazardous Materials on any
Real Estate Asset currently owned, leased or operated by the Borrower or any of
its Subsidiaries. Notwithstanding anything to the contrary contained in the
immediately preceding sentence, notices of events of the type described above
shall not be required to be given with respect to any event where the respective
event could not be reasonably expected to have a Material Adverse Effect.

         (j) Borrowing Base Certificate. (i) On the Effective Date, (ii) no
later than the 45th day after the end of each fiscal quarter of the Borrower,
(iii) on each Addition Date, (iv) on each Release Date, (v) on each date on
which (x) the Borrower designates a Mortgaged Property as an Excluded Mortgaged
Property pursuant to Section 8.13(d) or (y) a Mortgaged Property is deemed to be
an Excluded Mortgaged Property pursuant to Section 8.15(d), and (vi) on each
date on which a Subsidiary Guarantor that is a Wholly-Owned Subsidiary of the
Borrower ceases to be a Wholly-Owned Subsidiary, a borrowing base certificate in
the form of Exhibit L (each, a "Borrowing Base Certificate"), which shall be
prepared as of the last day of the immediately

                                      -44-
<PAGE>

preceding fiscal quarter of the Borrower (revised, in the case of a Real Estate
Asset added to the Borrowing Base since the last day of such fiscal quarter and
which neither the Borrower nor a Subsidiary thereof had owned or leased for two
full fiscal quarters, to reflect the Borrower's or such Subsidiary's aggregate
Cost to acquire such Mortgaged Property), and shall, in the case of the
Borrowing Base Certificate delivered on the Effective Date, demonstrate
compliance with Section 9.14 on the Effective Date, in each case certified by a
Senior Financial Officer of the Borrower.

         (k) Notice of Claims Against Mortgaged Properties. Without limiting the
provisions of Sections 8.01(f)(ii) and 8.01(i), promptly, and in any event
within five Business Days after an executive or financial officer of the
Borrower obtains actual knowledge thereof, (i) notice of any setoff, claims,
withholdings or other defenses to which any of the Mortgaged Properties or any
of the Mortgaged Property Owners are subject which could reasonably be expected
to have an adverse impact in any material respect on the value of the Mortgaged
Properties taken as a whole, or (ii) notice of any event, circumstance or other
matter for which notice is required to be delivered pursuant to Section
8.01(f)(ii) or 8.01(i) insofar as same related to any Mortgaged Property or any
such Mortgaged Property Owner which could reasonably be expected to have an
adverse impact in any material respect on the value of the Mortgaged Properties
taken as a whole.

         (l) Funds From Operations. In the event that the definition of "Funds
From Operations" is revised by the Board of Governors of the National
Association of Real Estate Investment Trusts, a report, certified by a Senior
Financial Officer of the Borrower, of the "Funds From Operations" of the
Borrower based on the definition as in effect on the Effective Date and based on
the definition as so revised from time to time.

         (m) Other Information. From time to time, such other information or
documents (financial or otherwise and including, without limitation, rent rolls
and other property specific information for the Mortgaged Properties (including,
without limitation, property specific information for determining the Mortgaged
Property NOI) and outstanding Indebtedness of the Borrower and its Subsidiaries)
with respect to the Borrower or any of its Subsidiaries (or properties owned by
such Persons) as the Administrative Agent or any Lender (through the
Administrative Agent) may reasonably request, so long as the disclosure of such
information could not result in a violation of, or expose the Borrower or any of
its Subsidiaries to any material liability under, any Applicable Laws or any
agreements with unaffiliated third parties that are binding on the Borrower or
any of its Subsidiaries or on any property of any of them.

         8.02     Books, Records, Inspections and Annual Meetings. (a) The
Borrower will, and will cause each of its Subsidiaries to, keep proper books of
record and accounts in which full, true and correct entries in conformity with
GAAP and all requirements of law shall be made of all dealings and transactions
in relation to its business and activities. Upon reasonable prior notice, the
Borrower will permit officers and designated representatives of the
Administrative Agent or any Lender to visit and inspect, during regular business
hours and under guidance of officers of the Borrower or its Subsidiary, the
Mortgaged Properties, the other Collateral and any of the other properties of
the Borrower or any of its Subsidiaries, and, so long as the disclosure of such
information could not result in a violation of, or expose the Borrower or any of
its Subsidiaries to any material liability under, any Applicable Laws, or any
agreements with

                                      -45-
<PAGE>

unaffiliated third parties that are binding on the Borrower or any of its
Subsidiaries or on any property of any of them, to examine the books of account
of the Borrower and its Subsidiaries and discuss the affairs, finances and
accounts of the Borrower and its Subsidiaries with its officers and independent
accountants, all at such reasonable times and intervals and to such reasonable
extent as the Administrative Agent or such Lender may reasonably request. Any
Lender requesting any such visit, inspection, examination or discussion shall
coordinate same with the Administrative Agent.

         (b) At a date to be mutually agreed upon between the Administrative
Agent and the Borrower, the Borrower will, at the request of the Administrative
Agent, hold an annual meeting with all of the Lenders, at which meeting will be
reviewed the financial results of the Borrower and its Subsidiaries for the
previous fiscal year and the budgets presented for the current fiscal year of
the Borrower.

         8.03     Maintenance of Property; Insurance; Casualty and Condemnation;
Restoration; and Renovations. (a) The Borrower will, and will cause each of its
Subsidiaries to, keep all of its material properties that are used or useful in
the conduct of its business (including, in any event, each Mortgaged Property)
in good repair, working order and condition, subject to ordinary wear and tear
and damage from casualty which is being diligently repaired.

         (b) The Borrower will, and will cause each of its Subsidiaries to, (i)
maintain insurance as specified in Section 7.22 and Schedule 7.22 with insurers
meeting the qualifications described therein, and (ii) furnish to the
Administrative Agent from time to time, upon written request, certificates of
insurance and such other information relating to such insurance as the
Administrative Agent may reasonably request.

         (c) The provisions of Schedule 8.03(c), relating to insurance,
casualty, condemnation, restoration and renovation requirements with respect to
the Mortgaged Properties, are incorporated by reference herein.

         (d) To the maximum extent permitted by law, the Borrower hereby
irrevocably waives, releases and discharges any and all rights of action,
demands and other claims of any kind or nature against the Administrative Agent
or the Lenders arising from any failure of the Administrative Agent or the
Lenders to comply with the National Flood Insurance Act of 1968 (42 U.S.C.
ss.ss. 4001, et seq.), the Flood Disaster Protection Act of 1973 or the National
Flood Insurance Reform Act of 1994, including any failure of the Administrative
Agent or the Lenders to provide the Borrower with written notification whether
any Mortgaged Property is in a special flood hazard area or whether federal
disaster relief assistance will be available in the event of flood damage to any
Mortgaged Property.

         8.04     Conduct of Business; Co-Borrower; Subsidiary Guarantors. (a)
The Borrower will, and will cause each of its Subsidiaries to, ensure that the
primary business of the Borrower and its Subsidiaries taken as a whole will at
all times continue to be investing in, acquiring, owning, operating, managing,
developing (to the extent permitted in this Agreement) and leasing office
building properties in the United States and the provision of services and other
business activities incidental thereto.

                                      -46-
<PAGE>

         (b) In the event that the Borrower elects to conduct its business
(including, without limitation, its ownership of all of the Equity Interests in
Holdings, TRE and any Subsidiary Guarantor described in Section 8.13(f)) by
means of an operating "upreit" entity, such entity (the "Co-Borrower") shall be
a limited partnership or a limited liability company in which (i) the Borrower
or a Wholly-Owned Subsidiary of the Borrower shall be at all times the sole
general partner or managing member, as applicable, and (ii) the Borrower and/or
such Wholly-Owned Subsidiary of the Borrower shall at all times own not less
than 80% of the Equity Interests of the Co-Borrower and control all financing,
sale and other material decisions relating to the Co-Borrower with no veto
rights in any minority equity owner therein or any other Person. At the time of
formation of the Co-Borrower, the Borrower shall, and shall cause the
Co-Borrower to, comply with the provisions of Section 1.05(f) so that the
Co-Borrower shall be a Credit Party party to this Agreement and certain of the
other Credit Documents.

         8.05     Compliance with Applicable Laws and Authorizations. The
Borrower will, and will cause each of its Subsidiaries to, comply with all
Applicable Laws (including, without limitation, Environmental Laws, all zoning
and building codes and ERISA and the rules and regulations thereunder) and
Authorizations except where non-compliance, either individually or in the
aggregate, could not be reasonably expected to have a Material Adverse Effect.

         8.06     Company Existence and Franchises, etc. The Borrower will, and
will cause each of its Subsidiaries to, do or cause to be done, all things
necessary to preserve and keep in full force and effect its Company existence
and its rights, franchises, licenses and patents; provided, however, that (i)
nothing in this Section 8.06 shall require any Subsidiary of the Borrower which
is not a Credit Party to preserve and keep in full force and effect its Company
existence where any such event, either individually or in the aggregate, could
not reasonably be expected to result in a Default or an Event of Default or
where any such event, either individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect, (ii) nothing in this
Section 8.06 shall prevent the withdrawal by the Borrower or any Subsidiary
thereof of its qualification as a foreign Company in any jurisdiction where such
withdrawal, either individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect and (iii) neither the Borrower nor
any of its Subsidiaries shall be obligated to maintain any such right,
franchise, license or patent in the event the Borrower or such Subsidiary, as
the case may be, has determined in its reasonable business judgment, that the
maintenance of such right, franchise, license or patent is no longer necessary
or desirable in the conduct of its business.

         8.07     Performance of Obligations. The Borrower will, and will cause
each of its Subsidiaries to, perform all of its obligations under the terms of
each material agreement, contract or instrument (other than any such material
agreement, contract or instrument governing Indebtedness) by which it is bound,
except such non-performances as could not, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

         8.08     Payment of Taxes. The Borrower will, and will cause each of
its Subsidiaries to, pay and discharge, or cause to be paid and discharged, all
taxes, assessments and governmental charges or levies imposed upon it or upon
its income or profits, or upon the Mortgaged Properties and any other properties
belonging to it, in each case on a timely basis, and all lawful claims which, if
unpaid, might become a Lien upon any properties of the Borrower or

                                      -47-
<PAGE>

such Subsidiary; provided that neither the Borrower nor any Subsidiary thereof
will be required to pay any such tax, assessment, charge, levy or claim which
(x) is being contested in good faith and by appropriate proceedings if it has
maintained adequate reserves with respect thereto in accordance with GAAP or (y)
either individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect and so long as no Default or Event of Default
under Section 9.01 shall occur as a result thereof.

         8.09     Use of Proceeds. The Borrower will use all proceeds from each
Credit Event only as provided in Section 7.08.

         8.10     End of Fiscal Years; Fiscal Quarters. The Borrower will, for
financial reporting purposes, cause (i) each of its fiscal years and fourth
fiscal quarters to end on December 31 of each year and (ii) each of its first
three fiscal quarters to end on the last day of March, June and September of
each year.

         8.11     Interest Rate Protection. The Borrower will, and/or will cause
its respective Subsidiaries which are the primary obligors on the respective
Indebtedness to, maintain Interest Rate Hedges on a notional amount of
Indebtedness for borrowed money of the Borrower and its Subsidiaries (other than
Intercompany Indebtedness) which, when added to the aggregate principal amount
of Indebtedness for borrowed money of the Borrower and its Subsidiaries (other
than Intercompany Indebtedness) which bears interest at a fixed rate, equals or
exceeds 60% of the aggregate principal amount of all Indebtedness for borrowed
money of the Borrower and its Subsidiaries (other than Intercompany
Indebtedness).

         8.12     REIT Requirements. The Borrower will, and will cause each of
its Subsidiaries to, operate its business at all times so as to satisfy all
requirements necessary to qualify and maintain the Borrower's qualification as a
real estate investment trust under Sections 856 through 860 of the Code. The
Borrower will maintain adequate records so as to comply with all record-keeping
requirements relating to its qualification as a real estate investment trust as
required by the Code and applicable regulations of the Department of the
Treasury promulgated thereunder and will properly prepare and timely file with
the Internal Revenue Service all returns and reports required thereby.

         8.13     Addition and Release of Mortgaged Properties and Subsidiary
Guarantors. (a) At any time and from time to time, the Borrower may, with the
approval of the Required Lenders (which approval may be granted, withheld or
delayed in their sole discretion), add one or more Real Estate Assets to the
Borrowing Base as Mortgaged Properties (each, an "Additional Mortgaged
Property"). Prior to the addition of any Real Estate Asset to the Borrowing Base
as an Additional Mortgaged Property, the Borrower shall have (A) satisfied the
requirements set forth in Section 5 with respect thereto as if such Real Estate
Asset were an Initial Mortgaged Property and the Addition Date therefor were the
Effective Date and (B) delivered to the Administrative Agent (i) a certificate
of a Senior Financial Officer of the Borrower specifying the Real Estate Asset
to be so added to the Borrowing Base and the Addition Date therefor and
certifying (in reasonable detail) that such Real Estate Asset satisfies the
Mortgaged Property Conditions and that the requirements set forth in Section 5
have been so satisfied with respect thereto, (ii) a new Borrowing Base
Certificate pursuant to Section 8.01(j)(iii), (iii) to the extent that such Real
Estate Asset is owned by a Person other than a then existing Credit Party, a

                                      -48-
<PAGE>

counterpart of the Subsidiaries Guaranty executed by such Person together with
all other relevant officer's certificates, resolutions, opinions of counsel and
other documentation of the type described in Sections 5.02 and 5.03 as such
Person would have had to deliver if such Person were a Credit Party on the
Effective Date, and (iv) counterpart originals or certified copies of such other
documents as the Administrative Agent may reasonably request in order to
establish compliance with the conditions set forth in this Section 8.13(a). Not
later than ten (10) days prior to each Addition Date, the Borrower shall deliver
to the Administrative Agent fully executed counterparts of the Security
Documents with respect to such Additional Mortgaged Property and related
Collateral and supplements to the schedules to this Agreement, the Security
Agreement and the Environmental Indemnity reflecting the designation of such
Additional Mortgaged Property on such date, all of which shall be reasonably
satisfactory to the Administrative Agent. Upon satisfaction of the requirements
of this Section 8.13(a) and the occurrence of the Addition Date with respect
thereto, and subject to the continued compliance of any such Additional
Mortgaged Property with the Mortgaged Property Conditions, such Additional
Mortgaged Property shall be included in the Borrowing Base as a Mortgaged
Property. The Administrative Agent shall be authorized to, and hereby agrees
that it will, at the expense of the Borrower execute such documentation as may
be necessary to evidence such addition (which documentation shall be in form and
substance reasonably satisfactory to the Administrative Agent). All other
proceedings taken or to be taken in connection with such addition and all
documents incidental thereto shall be reasonably satisfactory in form and
substance to the Administrative Agent.

         (b) At any time and from time to time but only so long as no Default or
Event of Default then exists or would result therefrom, the Borrower shall have
the right, exercisable pursuant to a written notice (each, a "Mortgaged Property
Release Notice"), to remove one or more Mortgaged Properties from the Borrowing
Base. Each Mortgaged Property Release Notice pursuant to this Section 8.13(b)
shall be delivered to the Administrative Agent and shall be accompanied by (i) a
certificate of a Senior Financial Officer of the Borrower (x) specifying the
Mortgaged Property to be removed and the Release Date therefor, (y) certifying
that no Default or Event of Default then exists or, after taking the actions
described in clause (iii) below in this Section 8.13(b), would result therefrom
and (z) certifying (and showing the calculations therefor in reasonable detail)
that the Borrower will be in compliance with Section 9.14 after giving effect to
the removal of such Mortgaged Property from the Borrowing Base and any repayment
of outstanding Loans required by Section 4.02(b) in connection therewith, (ii) a
new Borrowing Base Certificate pursuant to Section 8.01(j)(iv), (iii) any
repayment of outstanding Loans as, and to the extent, required by Section
4.02(b), and (iv) all documents (which shall be in form and substance reasonably
satisfactory to the Administrative Agent) necessary to evidence the release of
such Mortgaged Property and related Collateral on the applicable Release Date
from the Liens of the Security Documents. Upon the satisfaction of the
requirements set forth in this Section 8.13(b) with respect to a Mortgaged
Property, such Mortgaged Property shall no longer be a Mortgaged Property and
shall be removed from the Borrowing Base and the Liens of the Security Documents
on such Mortgaged Property and related Collateral shall be released by the
Administrative Agent, in each case on the applicable Release Date, and the
Subsidiary Guarantor which is the owner thereof shall, unless such Subsidiary
Guarantor is Holdings, TRE or a Subsidiary Guarantor described in Section
8.13(f) or such Subsidiary Guarantor continues to own or lease one or more other
Mortgaged Properties, be released from its obligations under the Subsidiaries
Guaranty without any further action on the part of any party hereto. The
Adminis-

                                      -49-
<PAGE>

trative Agent shall be authorized to, and hereby agrees that it will, at
the expense of the Borrower, execute such documentation as may be necessary to
evidence such removal and release. All other proceedings taken or to be taken in
connection with such release and all documents incidental thereto shall be
reasonably satisfactory in form and substance to the Administrative Agent.

         (c) In the event that at any time any Mortgaged Property fails to
satisfy each of the Mortgaged Property Conditions, the Borrower may elect to
remove such Mortgaged Property from the Borrowing Base pursuant to Section
8.13(b). Upon the satisfaction of the requirements set forth in Section 8.13(b)
with respect to such Mortgaged Property, such Mortgaged Property shall no longer
be a Mortgaged Property and shall be removed from the Borrowing Base and the
Liens of the Security Documents on such Mortgaged Property and related
Collateral shall be released by the Administrative Agent, in each case on the
applicable Release Date, and, provided that no Default or Event of Default then
exists, any Subsidiary of the Borrower which is the owner thereof shall, unless
such Subsidiary Guarantor is Holdings, TRE or a Subsidiary Guarantor described
in Section 8.13(f) or such Subsidiary Guarantor continues to own or lease one or
more other Mortgaged Properties, be released from its obligations under the
Subsidiaries Guaranty without any further action on the part of any party
hereto.

         (d) In the event that at any time the Mortgaged Properties included in
the Borrowing Base (excluding any Excluded Mortgaged Properties) shall not be
greater than 85% leased in the aggregate (based on rentable square footage) (the
"Lease-Up Condition"), then, within 10 days of such condition not being
satisfied, the Borrower shall designate (an "Excluded Mortgaged Property
Designation") one or more Mortgaged Properties as Excluded Mortgaged Properties
such that, following such designation, the Lease-Up Condition will be satisfied.
Each Excluded Mortgaged Property Designation shall be delivered to the
Administrative Agent and each Lender and shall be accompanied by (i) a new
Borrowing Base Certificate pursuant to Section 8.01(j)(v) and (ii) any repayment
of outstanding Loans as, and to the extent, required by Section 4.02(b).

         (e) At any time and from time to time but only so long as no Default or
Event of Default then exists or would result therefrom, the Borrower shall have
the right to sell Equity Interests in any Subsidiary Guarantor (other than
Holdings) by written notice to the Administrative Agent. Each such written
notice shall be accompanied by (i) a certificate of a Senior Financial Officer
of the Borrower specifying the Equity Interests to be sold and (x) certifying
that no Default or Event of Default then exists or, after taking the actions
described in clause (iii) below in this Section 8.13(e), would result therefrom
and (y) that the Mortgaged Property Conditions continue to be satisfied as to
the Mortgaged Property(ies) continued to be owned or leased by such Subsidiary
Guarantor, (ii) a new Borrowing Base Certificate pursuant to Section 8.01(j)
(vi) and (iii) any repayment of outstanding Loans as, and to the extent,
required by Section 4.02(b).

         (f) The Borrower shall cause any direct Subsidiary of the Borrower (or
the Co-Borrower if formed) which (i) is formed after the Effective Date, (ii)
owns, directly or indirectly, a Real Estate Asset and (iii) is not a then
existing Credit Party, to execute and deliver to the Administrative Agent and
each Lender a counterpart of the Subsidiaries Guaranty together with all other
relevant officer's certificates, resolutions, opinions of counsel and other
documentation

                                      -50-
<PAGE>

of the type described in Sections 5.02 and 5.03 as such Person would have had to
deliver if such Person were a Credit Party on the Effective Date.

         (g) Additional Taxes. In the event of the enactment after the Effective
Date of any law of the state where any Mortgaged Property is located or of any
other governmental entity of such state deducting from the value of such
Mortgaged Property for the purpose of taxation any lien or security interest
thereon, or imposing upon the Administrative Agent or any Lender the payment of
the whole or any part of the taxes or assessments or charges or liens required
to be paid by the Mortgaged Property Owner of such Mortgaged Property, or
changing in any way the laws relating to the taxation of mortgages or security
agreements or debts secured by mortgages or security agreements or the interest
of the mortgagee or secured party in the property covered thereby, or the manner
of collection of such taxes, so as to adversely affect the Security Documents or
the indebtedness and other obligations secured thereby or the Administrative
Agent or the Lenders, then, and in any such event, the Borrower, upon demand by
the Administrative Agent, shall pay such taxes, assessments, charges or liens,
or reimburse the Administrative Agent or the Lenders therefor; provided,
however, that if (a) it is unlawful for the Administrative Agent or the Lenders
to require the Borrower to make such payment, or (b) the making of such payment
might result in the imposition of interest beyond the maximum amount permitted
by Applicable Laws, then and in either such event, the Administrative Agent may
elect, by notice in writing given to the Borrower, require the Borrower to
remove the applicable Mortgaged Property from the Borrowing Base pursuant to
Section 8.13(b) within six (6) months after request therefor by the
Administrative Agent.

         8.14     Appraisals. The Administrative Agent may from time to time
(and shall upon the written request of (x) the Required Lenders or (y) the
Borrower, which request by the Borrower shall be made no more than once in each
calendar year) obtain an Appraisal of any Mortgaged Property (which Appraisal
shall, if applicable with respect to any restoration or renovation of such
Mortgaged Property, contain an estimate of the appraised value of such Mortgaged
Property upon completion of such restoration or renovation) and the Borrower
shall, and shall cause each of its Subsidiaries to, cooperate fully with the
Appraiser selected by the Administrative Agent to conduct such Appraisals;
provided that the Administrative Agent shall not obtain an Appraisal for any
Mortgaged Property more than once in any calendar year unless (a) an Event of
Default has occurred, (b) such Appraisal is being obtained in connection with
the proposed restoration of a Mortgaged Property pursuant to paragraph
2(b)(ii)(7) of Schedule 8.03(c) or (c) the Administrative Agent reasonably
believes that one or more events have occurred which could reasonably be
expected to have, either individually or in the aggregate, a materially adverse
impact on the value of such Mortgaged Property or a Material Adverse Effect. In
the event that any Credit Party or any of its respective Subsidiaries obtains an
appraisal of one or more of the Mortgaged Properties other than pursuant to this
Section 8.14, the Borrower shall deliver a copy of such appraisal to the
Administrative Agent promptly upon the completion thereof and the Administrative
Agent may elect, in its sole discretion and subject to the approval of the
Required Lenders and Applicable Laws, to treat such appraisal as an Appraisal.
In the event that the Administrative Agent obtains an Appraisal of any Mortgaged
Property and an Event of Default does not exist, the Administrative Agent shall
deliver a copy of such Appraisal to the Borrower upon the completion thereof.
The Administrative Agent shall deliver a copy of any Appraisal obtained by or
delivered to it pursuant to this Section 8.14 to each Lender. Any increase or
decrease in the Appraised Value of a Mortgaged Property as reflected in an
updated

                                      -51-
<PAGE>

Appraisal shall be shown on the next Borrowing Base Certificate delivered to the
Lenders pursuant to Section 8.01(j); provided, however, that before an increase
in Appraised Value with respect to a Mortgaged Property may be taken into
account in calculating the Borrowing Base Property Value of such Mortgaged
Property, the Borrower must amend the Mortgage encumbering such Mortgaged
Property to the extent necessary to cause the full amount of the increased
Appraised Value to be encumbered by the Lien of such Mortgage.

         8.15     Mortgaged Properties. (a) If any Mortgaged Property is
encumbered by a Lien which is not a Permitted Encumbrance, the Borrower shall,
or shall cause its Subsidiaries to, promptly discharge or cause to be discharged
by payment to the lienor or lien claimant or promptly secure removal by bonding
or deposit with the county clerk or otherwise or, at the Administrative Agent's
option, promptly obtain insurance against, any such Lien within thirty (30) days
after the date of notice thereof, but compliance with the provisions of this
Section 8.15(a) shall not be deemed to constitute a waiver of the provisions of
Section 9.01. The Borrower shall fully preserve the Lien and the priority of
each of the Security Documents without cost or expense to the Administrative
Agent or the Lenders.

         (b) If the Borrower or any of its Subsidiaries shall fail to promptly
discharge, remove or bond off any Lien which is not a Permitted Encumbrance
within thirty (30) days after the date of notice thereof, then the
Administrative Agent may, but shall not be required to, procure the release and
discharge of such Lien, and any judgment or decree thereon, and in furtherance
thereof may, in its sole discretion, effect any settlement or compromise with
the lienor or post any bond or furnish any security or indemnity as the
Administrative Agent, in its sole discretion, may elect. In settling,
compromising or arranging for the discharge of any Lien under this Section
8.15(b), the Administrative Agent shall not be required to establish or confirm
the validity or amount of the Lien. The Borrower agrees that all costs and
expenses expended or otherwise incurred by the Administrative Agent pursuant to
this Section 8.15(b) (including, without limitation, reasonable attorneys' fees
and disbursements) shall be paid by the Borrower to the Administrative Agent
promptly following demand therefor.

         (c) The Administrative Agent may at any time obtain an updated title
and/or lien search regarding any Mortgaged Property or any other Collateral, and
any such search shall be at the expense of the Borrower if it is being done (i)
because the Administrative Agent reasonably believes that a Lien which is not a
Permitted Encumbrance may encumber any Mortgaged Property or other Collateral,
(ii) following a change in Applicable Laws or the state or organization of any
Mortgaged Property Owner or (iii) after the occurrence and during the
continuation of an Event of Default.

         (d) (i) The Borrower has delivered to the Administrative Agent the
following Appraisals and reports with respect to each of the Initial Mortgaged
Properties: (x) an Appraisal, (y) a written Phase I environmental report (and if
recommended by such report, a written Phase 2 environmental report) in favor of
the Administrative Agent and prepared and certified by an environmental
consultant satisfactory to the Administrative Agent and (z) an engineering
report in favor of the Administrative Agent and prepared and certified by an
engineer satisfactory to the Administrative Agent. In the event that the
Administrative Agent notifies the Borrower on or prior to January 15, 2003 that
any such Appraisal or report is not reasonably satisfactory in form and
substance to the Required Lenders, the applicable Initial Mortgaged Property
shall, 15

                                      -52-
<PAGE>

Business Days following such notification by the Administrative Agent, be deemed
an Excluded Mortgaged Property and excluded from the calculation of the
Borrowing Base Value until the date, if any, on which the Administrative Agent
notifies the Borrower that such Appraisal or report, as applicable, is
satisfactory to the Required Lenders as aforesaid. On the date that any Initial
Mortgage Property is deemed an Excluded Mortgaged Property and excluded from the
calculation of the Borrowing Base Value pursuant to this Section 8.15(d)(i), the
Borrower shall deliver to the Administrative Agent (A) a new Borrowing Base
Certificate pursuant to Section 8.01(j)(v) and (B) any repayment of outstanding
Loans as, and to the extent, required by Section 4.02(b).

         (ii) The Borrower covenants and agrees (x) to determine to the
reasonable satisfaction of the Administrative Agent (by means of a Phase II
environmental audit report with respect to subsurface soil and/or groundwater or
by other means reasonably satisfactory to the Administrative Agent) not later
than March 31, 2003 whether the Initial Mortgaged Property known as Newmarket
Business Park and referred to as item 3 in Schedule III is subject to or
otherwise affected by any adverse environmental conditions or Environmental
Claims as a result of the operation of a gasoline service station formerly
located thereon, and (y) to cause the applicable Mortgaged Property Owner to
comply with its obligations under the Environmental Indemnity with respect to
any such adverse environmental conditions or Environmental Claims. In the event
that the Borrower fails to comply with its obligations under clause (x) of the
immediately preceding sentence on or prior to March 31, 2003, such Initial
Mortgaged Property shall on such date be deemed an Excluded Mortgaged Property
and excluded from the calculation of the Borrowing Base Value until the date, if
any, on which the Administrative Agent notifies the Borrower that it has
determined that the Borrower has fully complied with clause (x) of the
immediately preceding sentence. On the date that any Initial Mortgage Property
is deemed an Excluded Mortgaged Property and excluded from the calculation of
the Borrowing Base Value pursuant to this Section 8.15(d)(ii), the Borrower
shall deliver to the Administrative Agent (A) a new Borrowing Base Certificate
pursuant to Section 8.01(j)(v) and (B) any repayment of outstanding Loans as,
and to the extent, required by Section 4.02(b).

         (iii) The Borrower covenants and agrees to cause each underground
storage tank for Hazardous Material located at the Initial Mortgaged Properties
known as 9800 La Cienega Boulevard, Inglewood, California and St. Louis Place,
St. Louis, Missouri and referred to as items 4 and 11 of Schedule III to comply
in all material respects with the requirements of all applicable Environmental
Laws or to cause any such underground storage tank which does not so comply to
be removed, in any case not later than March 31, 2003. In the event that the
Borrower fails to comply with its obligations under the immediately preceding
sentence with respect to any of such Initial Mortgaged Properties on or prior to
March 31, 2003, the applicable Initial Mortgaged Property shall on such date be
deemed an Excluded Mortgaged Property and excluded from the calculation of the
Borrowing Base Value until the date, if any, on which the Administrative Agent
notifies the Borrower that it has determined that the Borrower has satisfied its
obligations under the immediately preceding sentence. On the date that any
Initial Mortgage Property is deemed an Excluded Mortgaged Property and excluded
from the calculation of the Borrowing Base Value pursuant to this Section
8.15(d)(iii), the Borrower shall deliver to the Administrative Agent (A) a new
Borrowing Base Certificate pursuant to Section 8.01(j)(v) and (B) any repayment
of outstanding Loans as, and to the extent, required by Section 4.02(b).

                                      -53-
<PAGE>

         (iv) The Borrower covenants and agrees (x) to implement in all material
respects all asbestos operations and maintenance plans as in effect on the
Effective Date with respect to the Initial Mortgaged Properties known as
Northstar Center, Minneapolis, Minnesota and 500 Jefferson, Houston, Texas and
referred to as items 6 and 7 in Schedule III and (y) otherwise to comply with
all applicable Environmental Laws relating to the identification, presence,
containment and removal of asbestos-containing and suspected asbestos-containing
materials at the Mortgaged Properties.

         SECTION 9.  Negative Covenants. The Borrower hereby covenants and
agrees that on and after the Effective Date and until the Total Commitment and
all Letters of Credit have terminated and the Loans, Notes and Unpaid Drawings
(in each case together with interest thereon) and all other Obligations incurred
hereunder and thereunder, are paid in full:

         9.01     Liens. The Borrower will not, nor will the Borrower permit any
of its Subsidiaries to, create, incur, assume or suffer to exist any Lien upon
any asset of any Credit Party (including, but not limited to, any Mortgaged
Property (or any other Property thereon) or any capital stock or other Equity
Interest owned by such Credit Party) or on the capital stock or other Equity
Interest of the Co-Borrower if formed or any Mortgaged Property Owner (all of
the foregoing assets and Equity Interests subject to such restrictions are
referred to as "Restricted Property"), in either case whether now owned or
leased or hereafter acquired or leased, or sell any Restricted Property subject
to an understanding or agreement, contingent or otherwise, to repurchase such
Restricted Property (including sales of accounts receivable with or without
recourse generated from any of the Restricted Properties, but excluding (i) the
right to sell, transfer, convey or issue limited partnership interests (if the
Co-Borrower is a limited partnership) or non-managing member interests (if the
Co-Borrower is a limited liability company) in the Co-Borrower so long as the
condition set forth in Section 8.04(ii) is not violated thereby, and (ii) the
right of any Person which is not the Borrower or a Subsidiary of the Borrower to
convert an Equity Interest in the Co-Borrower into an Equity Interest in the
Borrower), or assign any right to receive the income or profits therefrom or
authorize the filing of any financing statements under the UCC or any other
similar notice Lien under any similar recording or notice of statute, except
("Permitted Encumbrances"):

         (a) Liens for taxes, assessments or governmental charges or levies not
yet due or that are being contested in good faith by appropriate proceedings,
provided that adequate reserves with respect thereto are maintained in
conformity with GAAP and such proceedings have the effect of preventing the
forfeiture or sale of the Restricted Property subject to any such Lien;

         (b) (x) carriers', warehousemen's, mechanics', suppliers',
materialmen's repairmen's or other like Liens arising in the ordinary course of
business and (y) Liens on Real Estate Assets arising in the ordinary course of
business in favor of the Federal or any state or local government arising as a
result of noncompliance with any statute or regulation applicable to such Real
Estate Assets, in either case (in the case of preceding clauses (x) and (y))
that do not secure Indebtedness for borrowed money and either (i) have not been
outstanding for a period of more than 45 days and do not materially detract from
the value of the Restricted Property subject to any such Liens or materially
impair the use of such Restricted Property in the operation of the business of
such Credit Party or (ii) that are being contested in good faith by appropriate

                                      -54-
<PAGE>

proceedings with respect to which adequate reserves have been maintained in
accordance with GAAP, which proceedings have the effect of preventing or staying
the forfeiture or sale of the Restricted Property subject to any such Lien;

         (c) pledges or deposits in the ordinary course of business in
connection with workers' compensation, unemployment insurance and other social
security legislation;

         (d) utility deposits and other deposits to secure the performance of
bids, trade contracts (other than for borrowed money), leases, purchase
contracts, construction contracts, governmental contracts, statutory
obligations, surety bonds, performance bonds and other obligations of a like
nature incurred in the ordinary course of business;

         (e) (i) Liens and other encumbrances set forth in Schedule B of each of
the Title Policies and (ii) other easements (including, without limitation,
reciprocal easement agreements and utility agreements), rights of way,
covenants, conditions, restrictions, consents, reservations, encroachments,
variations and zoning and other similar restrictions or encumbrances (whether or
not recorded) incurred in the ordinary course of business that do not in any
case materially detract from the value of the property subject thereto or
materially interfere with the ordinary conduct of the business of any Credit
Party;

         (f) Liens arising out of the existence of judgments or awards not
constituting a Default or an Event of Default under Section 10.06 and (i) which
have been or will be bonded (and the Lien thereby removed other than on any cash
serving as security for such bond) or released of record within thirty (30) days
after the date that such judgment or award is entered or (ii) in respect of
which any Credit Party shall in good faith be prosecuting an appeal or
proceedings for review and in respect of which there shall have been secured a
subsisting stay of execution pending such appeal or proceedings, provided that
(in the case of preceding clause (ii)) such Liens do not attach to any Mortgaged
Property or the Equity Interests of the Co-Borrower if formed or any Mortgaged
Property Owner;

         (g) (i) Leases affecting (x) any Initial Mortgaged Property on the
Effective Date and (y) any Additional Mortgaged Property on the Addition Date
applicable thereto, (ii) licenses, sublicenses, other Leases (subject to
compliance with Section 9.18(d)) or subleases entered into the ordinary course
of business not interfering in any material respect with the business of any
Credit Party, (ii) Liens arising from precautionary Uniform Commercial Code
financing statements regarding operating leases, and (iii) statutory and common
law landlords' liens under leases to which any Credit Party is a party;

         (h) Liens placed upon equipment, machinery or materials used in the
ordinary course of business of any Credit Party and placed at the time of the
acquisition thereof by such Credit Party or within 90 days thereafter to secure
Indebtedness incurred to pay all or a portion of the purchase price thereof or
to secure Indebtedness incurred solely for the purpose of financing the
acquisition of any such equipment, machinery or materials or extensions,
renewals or replacements of any of the foregoing for the same or a lesser
amount, provided that (i) the aggregate outstanding principal amount of all such
Indebtedness at any time that is allocable to, or otherwise associated with, any
Real Estate Asset shall not exceed $1,000,000 and (ii) in all

                                      -55-
<PAGE>

events, the Lien encumbering the equipment, machinery or materials so acquired
does not encumber any other asset of any Credit Party or any other Restricted
Property;

         (i) Liens solely on the Equity Interests of a Subsidiary of the
Borrower (which is not the Co-Borrower if formed or a Subsidiary Guarantor) or
on the Equity Interests of an Unconsolidated Entity, in either case which have
been pledged to secure Indebtedness of such Subsidiary or Unconsolidated Entity,
provided that there is no Recourse to the Credit Party pledging such Equity
Interests or its Restricted Property except against the pledged Equity Interests
of the Subsidiary or Unconsolidated Entity that incurred such Indebtedness;

         (j) Liens in favor of, and owned by, the Borrower;

         (k) Liens in existence on the Effective Date which are listed, and the
property subject thereto and the obligations secured thereby described, in
Schedule 9.01, plus renewals, replacements and extensions of such Liens,
provided that (x) (A) in the case of the Liens described in item 1 on Schedule
9.01, such renewal, replacement or extension does not increase the aggregate
principal amount of such Indebtedness to more than 75% of the fair market value
of the Real Estate Asset subject to such Liens (as determined from the most
recent appraisal of such Real Estate Asset prepared by an independent appraiser
or based on such other evidence as may be reasonably satisfactory to the
Administrative Agent) and (B) in the case of the Liens described in item 2 on
such Schedule 9.01, the aggregate principal amount of the Indebtedness, if any,
secured by such Liens does not increase from that amount outstanding at the time
of any such renewal, replacement or extension, (y) any such renewal, replacement
or extension does not encumber any additional Restricted Property (other than
"products" and "proceeds" thereof or customary after acquired property, as each
such term is defined in the UCC of the State of New York) and (z) in all events,
such Liens do not now nor will they in the future encumber any Mortgaged
Property or the Equity Interests of the Co-Borrower if formed, Holdings or any
Mortgaged Property Owner and, except as and to the extent set forth in item 2 of
Schedule 9.01, the only recourse in respect of the obligations secured by such
Liens is against the Restricted Property subject to such Liens; and

         (l) Liens created or required by the Credit Documents.

         9.02     Consolidation, Merger, Sale of Assets, etc. (a) The Borrower
will not, nor will the Borrower permit any other Credit Party to, wind up,
liquidate or dissolve its affairs, discontinue its business, or enter into any
transaction of merger or consolidation, or agree to do any of the foregoing at
any future time without a contingency relating to obtaining any required
approval hereunder, except that so long as no Specified Default or Event of
Default then exists or would result therefrom (including, without limitation, an
Event of Default under Section 8.04 or 10.09), the following shall be permitted:
(i) any then existing Subsidiary of the Borrower may be merged or consolidated
with or into, or be liquidated into, the Borrower (so long as the Borrower is
the surviving Company), the Co-Borrower if formed (so long as the Co-Borrower is
the surviving entity) or a Subsidiary Guarantor (so long as a Subsidiary
Guarantor is the surviving Company), (ii) any Person that is not a Subsidiary of
the Borrower at such time may be merged or consolidated with or into, or
liquidated into, the Borrower (so long as the Borrower is the surviving
Company), the Co-Borrower if formed (so long as the Co-Borrower is the surviving
entity) or a Subsidiary Guarantor (so long as the Subsidiary Guarantor is the
surviving

                                      -56-
<PAGE>

Company), provided that, in the case of this clause (ii), (x) the Person which
is merged or consolidated into such Credit Party is predominantly in the
commercial real estate business, (y) if rated, the creditworthiness of the
Borrower's long term unsecured debt or implied senior debt, as applicable, after
giving effect to such merger or consolidation is not lower than the Borrower's
creditworthiness two months immediately preceding such merger or consolidation,
and (z) the then fair market value of the assets of the Person which is merged
or consolidated into such Credit Party is less than 25% of the Borrower's then
Consolidated Total Asset Value after giving effect to such merger or
consolidation on a Pro Forma Basis, and (iii) any Subsidiary Guarantor may be
converted into a limited liability company by statutory election.

         (b) The Borrower will not, nor will it permit any of its Subsidiaries
to, consummate any Asset Sale, except that during any fiscal quarter of the
Borrower, the Borrower and its Subsidiaries may effect an Asset Sale so long as
(i) no Specified Default or Event of Default then exists or would result
therefrom, (ii) the consideration received (taking the amount of all cash and
the fair market value, as reasonably determined by the Borrower, of all non-cash
consideration) from such Asset Sale, together with the aggregate consideration
received from all other Asset Sales effected by the Borrower and its
Subsidiaries during such fiscal quarter simultaneously with or prior to such
Asset Sale, shall not exceed 2.5% of the Fair Market Value of the Borrower
unless the Borrower shall have given the Administrative Agent prior written
notice of such Asset Sale, which notice shall be accompanied by a certificate of
a Senior Financial Officer of the Borrower certifying (and showing the
calculations therefor in reasonable detail) that the Borrower will be in
compliance with Sections 9.10 and 9.11 after giving effect to such Asset Sale,
and (iii) in the event that any such Asset Sale includes a Mortgaged Property or
any Equity Interests in any Subsidiary Guarantor, the Borrower also shall have
complied with the provisions of Section 8.13(b).

         (c) Without limiting the foregoing provisions of this Section 9.02, in
no event shall the Borrower or any of its Subsidiaries convey, lease, sell,
transfer or otherwise dispose of, in one transaction or a series of
transactions, (i) (x) any Equity Interests in Holdings, TRE or any Subsidiary
Guarantor described in Section 8.13(f) (other than the transfer of all of such
Equity Interests to the Co-Borrower if formed) and (y) more than 20% of the
Equity Interests in the Co-Borrower if formed or (ii) all or substantially all
of the assets or business of the Borrower and its Subsidiaries taken as a whole.

         9.03     Dividends. The Borrower will not, nor will the Borrower permit
any of its Subsidiaries to, authorize, declare, pay or make any Dividends
except:

         (a) any Subsidiary of the Borrower (other than the Co-Borrower if
formed) may distribute Dividends to holders of its Equity Interests, in each
case so long as the Borrower or any Subsidiary of the Borrower which owns an
Equity Interest in such Subsidiary receives a percentage of any such Dividends
which is at least equal to its percentage Equity Interest in its respective
Subsidiary distributing the Dividend (taking into account, however, the relative
preferences, if any, of the various classes of Equity Interest of such
Subsidiary); and

         (b) (i) the Borrower may from time to time pay Dividends to the owners
of its Equity Interests (including, without limitation, Dividends consisting of
the repurchase of any such Equity Interests) so long as (x) the aggregate amount
of all such Dividends paid or made by

                                      -57-
<PAGE>

the Borrower in any fiscal year of the Borrower does not exceed 90% of Funds
From Operations of the Borrower for such fiscal year (or, in the case of the
fiscal year in which the Reorganization occurs, 90% of Funds From Operations of
the Borrower for the period from the date of the consummation of the
Reorganization through the last day of such fiscal year) and (y) the aggregate
amount of all such Dividends paid or made by the Borrower for the first three
fiscal quarters of the Borrower in any fiscal year of the Borrower (commencing
with the first fiscal year after the consummation of the Reorganization), does
not exceed 100% of Funds From Operations of the Borrower for such three fiscal
quarter period; provided, however, at any time that a Specified Default or an
Event of Default then exists or would result therefrom, Dividends pursuant to
this Section 9.03(b)(i) shall be limited to that amount necessary for the
Borrower to maintain its status as a real estate investment trust under Sections
856 through 860 of the Code; and

         (ii) the Co-Borrower if formed may pay Dividends to the Borrower and
all other holders of Equity Interests in the Co-Borrower (including, without
limitation, but subject to Section 8.04(b)(ii), Dividends consisting of the
repurchase of any such Equity Interests) so long as (x) the aggregate amount of
all such Dividends paid or made by the Co-Borrower in any fiscal year of the
Co-Borrower does not exceed 90% of Funds From Operations of the Co-Borrower for
such fiscal year and (y) the aggregate amount of all such Dividends paid or made
by the Co-Borrower for the first three fiscal quarters of the Co-Borrower in any
fiscal year of the Co-Borrower does not exceed 100% of Funds From Operations of
the Co-Borrower for such three fiscal quarter period; provided, however, at any
time that a Specified Default or an Event of Default then exists or would result
therefrom, Dividends pursuant to this Section 9.03(b)(ii) shall be limited to
that amount necessary for the Borrower to maintain its status as a real estate
investment trust under Section 856 through 860 of the Code.

         9.04     Indebtedness. The Borrower will not, nor will the Borrower
permit any of its Subsidiaries to, contract, create, incur, assume or suffer to
exist any Indebtedness except:

         (a) Subject to Section 9.17, the Credit Parties may contract, create,
incur, assume or suffer to exist Unsecured Indebtedness (other than under
another revolving credit facility) and, to the extent permitted by Section
9.01(h), Secured Indebtedness, in each case so long as (i) no Specified Default
or any Event of Default then exists or would result therefrom and (ii) based on
calculations made by the Borrower, the Borrower will be in compliance with
Sections 9.10, 9.11 and 9.14 after giving effect to the incurrence of the
respective Indebtedness;

         (b) Subject to Section 9.17, Subsidiaries of the Borrower that are not
Credit Parties may contract, create, incur, assume or suffer to exist
Indebtedness, in each case so long as (i) no Specified Default or any Event of
Default then exists or would result therefrom, provided that, notwithstanding
the existence of any Specified Default or Event of Default, any such Subsidiary
may refinance any Secured Indebtedness outstanding on the Effective Date to the
extent that any such refinancing occurs no earlier than six months prior to the
final scheduled maturity of such Secured Indebtedness, and (ii) based on
calculations made by the Borrower, the Borrower will be in compliance with
Sections 9.10 and 9.11 after giving effect to the incurrence of the respective
Indebtedness;

                                      -58-
<PAGE>

         (c) Subject to Section 9.17, Indebtedness under Interest Rate Hedges
entered into with respect to other Indebtedness permitted under this Section
9.04 so long as the terms and conditions of such Interest Rate Hedges are
consistent with past practice of the Borrower and its Subsidiaries and are
entered into for bona fide hedging purposes and not for speculative purposes;
and

         (d) Subject to Section 9.17, Indebtedness with respect to performance
bonds, surety bonds, appeal bonds or custom bonds required in the ordinary
course of business or in connection with the enforcement of rights or claims of
the Borrower or any of its Subsidiaries.

         Without limiting the provisions of clauses (a) through (d) of this
Section 9.04, (i) in no event will the Borrower permit any of its Subsidiaries
that are not Credit Parties or any of its Unconsolidated Entities to contract,
create, incur or assume after the date hereof any Secured Indebtedness for which
there is Recourse to any Credit Party in connection with Land held for
Development or Land under Development (including the acquisition of any Real
Estate Asset that will, upon such acquisition, become Land held for Development
or Land under Development) unless the aggregate amount of such Secured
Indebtedness does not exceed the Maximum Permitted Debt Amount applicable to
such Secured Indebtedness and (ii) in no event will any Credit Party contract,
create, incur or assume after the date hereof any Indebtedness for borrowed
money (or any guarantees thereof) that would constitute Unsecured Indebtedness,
other than Intercompany Indebtedness, unless such Indebtedness has a maturity
date on or after December 12, 2005.

         9.05     Limitation on Modifications of Certificate of Incorporation,
By-Laws and Certain Other Agreements; etc. The Borrower will not, nor will the
Borrower permit any other Credit Party to, amend, modify or change its
certificate of incorporation (including, without limitation, by the filing or
modification of any certificate of designation) or by-laws (or equivalent
organizational document) or any agreement entered into by it with respect to its
Equity Interests, or enter into any new agreement with respect to its Equity
Interests unless such amendment, modification, change or other action, either
individually or in the aggregate, could not be reasonably expected to have a
Material Adverse Effect or be adverse to the Lenders in any material respect.

         9.06     Investments. The Borrower will not, nor will the Borrower
permit any of its Subsidiaries to, make or maintain any Investments in Land
under Development, Land Held for Development, Joint Ventures, Mortgage
Interests, Equity Interests, seller financing received in connection with Asset
Sales, Retail Property and real estate technology companies (each a "Restricted
Holding"), except that, subject to Section 9.17, Investments in Restricted
Holdings may be made and maintained so long as the aggregate value of all such
Restricted Holdings does not exceed 35% of the Consolidated Total Asset Value of
the Borrower at any time and so long as:

         (a) Investments consisting of Development Costs (including, without
limitation, Development Costs with respect to the Retail Properties specified in
Section 9.06(h) in the aggregate do not exceed 10% of the Consolidated Total
Asset Value of the Borrower at any time; provided that, and at any time and for
so long as, the Borrower or a Subsidiary thereof owns

                                      -59-
<PAGE>

the Hollywood and Highlands Real Estate Asset, the aforementioned percentage
shall be increased to 12.5% of the Consolidated Total Asset Value of the
Borrower;

         (b) Investments in Joint Ventures (excluding (i) subject to Section
8.04(b)(ii), Equity Interests owned by the Borrower or any Wholly-Owned
Subsidiary of the Borrower in the Co-Borrower if formed and (ii) Equity
Interests received as consideration for any Asset Sale) in the aggregate do not
exceed 20% of the Consolidated Total Asset Value of the Borrower at any time;

         (c) Investments consisting of Mortgages Interests (excluding Mortgages
Interests received as consideration for any Asset Sale) in the aggregate do not
exceed 5% of the Consolidated Total Asset Value of the Borrower at any time
(calculated, however, without regard to the Borrower's Mortgage Interests
relating to office property located at 250 West Pratt Street, Baltimore,
Maryland);

         (d) Investments consisting of seller financing (including, but not
limited to, Mortgages Interests, other Indebtedness or receivables) provided in
connection with Asset Sales in the aggregate do not exceed 5% of the
Consolidated Total Asset Value of the Borrower at any time;

         (e) Investments consisting of Equity Interests received in
consideration for Asset Sales in the aggregate do not exceed 5% of the
Consolidated Total Asset Value of the Borrower at any time;

         (f) Investments in real estate related technology companies (including,
without limitation, Cogent Communications Inc., so long as such entity remains a
real estate technology company) in the aggregate do not exceed 5% of the
Consolidated Total Asset Value of the Borrower at any time;

         (g) Investments consisting of Land held for Development in the
aggregate do not exceed 5% of the Consolidated Total Asset Value of the Borrower
at any time; and

         (h) Investments in Retail Properties shall be limited to the Hollywood
and Highlands, Paseo Colorado and Desert Passage properties.

         Each of the Restricted Holdings restrictions set forth above in this
Section 9.06 shall be calculated as of the last day of each fiscal quarter of
the Borrower.

         Notwithstanding the foregoing, the Borrower will not, nor will the
Borrower permit any of its Subsidiaries, to commence or incur any obligation to
commence any new Investments of the types described in clauses (a)-(g) of this
Section 9.06 (x) during any period that the Consolidate Total Indebtedness of
the Borrower is greater than 65% of the Consolidated Total Asset Value of the
Borrower, or (y) if the making of any such Investment (including, without
limitation, the incurrence of any Indebtedness therefor) will cause the
Consolidated Total Indebtedness of the Borrower to be greater than 65% of the
Consolidated Total Asset Value of the Borrower.

                                      -60-
<PAGE>

         9.07     Negative Pledge Clauses; etc. The Borrower will not, nor will
the Borrower permit any of its Subsidiaries to, enter into or suffer to exist or
become effective any agreement that (x) prohibits or limits the ability of any
Credit Party or any of its Subsidiaries to create, incur, assume or suffer to
exist any Lien upon any Restricted Property or any revenues therefrom, whether
now owned or hereafter acquired, or (y) requires that, upon the creation,
incurrence, assumption or existence of any Lien upon any of its assets or
revenues, whether now owned or hereafter acquired, a Lien (whether "equal and
ratable," senior, junior or otherwise) be created on any Restricted Property to
secure any other Indebtedness or obligations, except that (a) the provisions
contained in this Agreement and the other Credit Documents shall be permitted,
(b) any agreements governing any Secured Indebtedness permitted under Sections
9.01(h) and (k) shall be permitted to contain prohibitions or limitations of the
type described in the preceding clause (x) (in which case, any such prohibition
or limitation shall only be effective against the equipment, machinery or
materials financed thereby, or in the case of such Section 9.01(k), the Property
subject to such Liens), (c) agreements governing the Liens permitted by Section
9.01(i) shall be permitted to contain prohibitions or limitations of the type
described in the preceding clause (x) so long as such restrictions shall only be
effective against the Equity Interests subject to such Liens, (d) customary
restrictions with respect to assets imposed pursuant to an agreement that has
been entered into in connection with an Asset Sale of such assets as otherwise
permitted under this Agreement shall be permitted, (e) Unsecured Indebtedness of
the Borrower that is issued pursuant to an effective registration statement
under the Securities Act or in a transaction exempt from registration pursuant
to Rule 144A or Regulation S promulgated thereunder or which is listed on a
non-U.S. securities exchange may contain an "equal and ratable" clause effective
only upon the creation of any Lien on any Restricted Property in favor of the
Administrative Agent for the benefit of the Lenders, and (f) in the case of
clause (x) of this Section 9.07, customary provisions restricting assignment of
any lease under which the Borrower or any of its Subsidiaries is the tenant or
subletting space demised under any such lease.

         9.08     Transactions with Affiliates. The Borrower will not, nor will
the Borrower permit any of its Subsidiaries to, enter into any transaction or
series of related transactions, with any Affiliate of the Borrower or any of its
Subsidiaries, other than on terms and conditions no less favorable to the
Borrower or such Subsidiary as would reasonably be obtained by the Borrower or
such Subsidiary at that time in a comparable arm's-length transaction with a
Person other than an Affiliate of the Borrower, except that:

                  (a) the Borrower and its Subsidiaries may enter into
         employment arrangements with respect to the procurement of services of
         their respective officers and employees in the ordinary course of
         business, including executive compensation arrangements; and

                  (b) transactions between or among the Borrower and its
         Subsidiaries shall be permitted; provided, however, that all
         transactions involving the Co-Borrower if formed or a Subsidiary
         Guarantor where the counterparty to such transaction is a Subsidiary of
         the Borrower that is not a Credit Party shall be required to be on
         terms and conditions no less favorable to the Co-Borrower or such
         Subsidiary Guarantor, as the case may be, as would reasonably be
         obtained by the Co-Borrower or such Subsidiary Guarantor, as the case
         may be, at the time in a comparable arm's-length transaction with a
         Person other than an Affiliate of the Borrower (other than with respect
         to (x) the sale, transfer or other disposition of Real Estate Assets
         other than a Mortgaged Property or the Equity Interests

                                      -61-
<PAGE>

         of the Mortgaged Property Owner thereof or of the Co-Borrower if formed
         and (y) guaranties and other credit support or enhancements given by
         (A) Holdings or the Co-Borrower if formed in favor of the Borrower or
         any of its other Subsidiaries or Unconsolidated Entities in the
         ordinary course of business, (B) TRE in favor of any of its
         Subsidiaries in the ordinary course of business or (C) any Subsidiary
         Guarantor described in Section 8.13(f) in favor of any of its
         Subsidiaries in the ordinary course of business; and

                  (c) transactions (including, without limitation, tax
         cooperation arrangements and indemnifications for obligations relating
         to Property of the Borrower or a Subsidiary or Unconsolidated Entity
         thereof for which the indemnified party no longer has an interest other
         than through its ownership interest in the Borrower) necessary to
         implement the consummation of the Reorganization shall be permitted so
         long as the effect of such transactions, either individually or in the
         aggregate, could not reasonably be expected to have a Material Adverse
         Effect.

         9.09     Management Agreements. The Borrower will not, nor will the
Borrower permit any of its Subsidiaries to, enter into any management agreement
or similar agreement granting to any Person (other than in the case of any
Subsidiary of the Borrower, the Borrower, the Co-Borrower if formed or any other
Wholly-Owned Subsidiary of the Borrower or the Co-Borrower if formed) (a)
authority over the leasing, maintenance or operation of any Mortgaged Property
or (b) substantial authority over the leasing, maintenance or operation of any
other Real Property owned or leased by the Borrower or such Subsidiary, as the
case may be, on terms less favorable to the Borrower or such Subsidiary, as the
case may be, than the market standard on the date of such agreement. All of such
management rights relating to any Mortgaged Property shall be subject and
subordinate to the Security Documents.

         9.10     Consolidated Total Indebtedness as a Percentage of
Consolidated Total Asset Value. The Borrower will not permit its Consolidated
Total Indebtedness on any date to exceed an amount which is 65% of the
Consolidated Total Asset Value of the Borrower as at the last day of the most
recently ended fiscal quarter of the Borrower; provided that the Consolidated
Total Indebtedness of the Borrower may be greater than 65% but less than 67.5%
of the Consolidated Total Asset Value of the Borrower with respect to not more
than one fiscal quarter of the Borrower occurring during the period extending
from October 1, 2002 to December 31, 2003; and provided further, that, in
determining such Consolidated Total Asset Value, such determination shall be
made on a Pro Forma Basis to give effect to any sales and acquisitions of Real
Estate Assets effected after the last day of any such fiscal quarter and on or
prior to the date of any determination pursuant to this Section 9.10.

         9.11     Consolidated Net Worth. The Borrower will not permit its
Consolidated Net Worth on any date to be less than the sum of (i)
$1,500,000,000, plus (ii) 75% of the aggregate cash proceeds received by the
Borrower or the Co-Borrower if formed after the Effective Date in connection
with any equity offering by, or capital contribution to, the Borrower or the
Co-Borrower (net of fees and expenses customarily incurred in transactions of
such type).

         9.12     Consolidated Interest Coverage Ratio. The Borrower will not
permit its Consolidated Interest Coverage Ratio for any Test Period to be less
than 2.00:1.00.

                                      -62-
<PAGE>

         9.13     Consolidated Fixed Charge Coverage Ratio. The Borrower will
not permit its Consolidated Fixed Charge Coverage Ratio for any Test Period to
be less than 1.50:1.00.

         9.14     Mortgaged Property Coverage Ratio. The Borrower will not
permit the Mortgaged Property Coverage Ratio on any date to be less than
1.50:1.00.

         9.15     Limitation on Certain Restrictions on Subsidiaries. The
Borrower will not, and will not permit Holdings, the Co-Borrower if formed or
any of the Subsidiary Guarantors to, directly or indirectly, create or otherwise
cause or suffer to exist or become effective any encumbrance or restriction on
(including, without limitation, any requirement that excess cash flow be used to
repay other Indebtedness) the ability of any such Subsidiary to (a) pay
Dividends or make any other distributions on its capital stock or any other
interest or participation in its profits owned by the Borrower or any Subsidiary
of the Borrower, or pay any Indebtedness owed to the Borrower or a Subsidiary of
the Borrower, (b) make loans or advances to the Borrower or any of the
Borrower's Subsidiaries or (c) transfer any of its properties or assets to the
Borrower or any of the Borrower's Subsidiaries, except for such encumbrances or
restrictions existing under or by reason of (i) applicable law, (ii) this
Agreement and the other Credit Documents, (iii) customary provisions restricting
subletting or assignment of any lease governing a leasehold interest of the
Borrower or such Subsidiary, (iv) customary provisions restricting assignment of
any contract entered into by the Borrower or such Subsidiary in the ordinary
course of business, and (v) any restrictions imposed by any holder of a
Permitted Encumbrance on the transfer of the asset or assets subject thereto.

         9.16     Affiliate Debt and Subordination Agreement. (a) Without
limiting the other provisions of this Agreement, the Borrower will not, and will
not permit any of its Subsidiaries to, incur or create any Indebtedness that is
owed by a Credit Party to any Subsidiary of the Borrower that is not a Credit
Party unless, in each case, the respective Credit Party and each such Subsidiary
has entered into the Subordination Agreement.

         (b) The Borrower will not, nor will the Borrower permit any of its
Subsidiaries to, make any payment on any Affiliate Debt to the extent that such
payment is not permitted to be paid at such time pursuant to the Subordination
Agreement.

         (c) At such time, if any, as an obligor in respect of any Affiliate
Debt ceases to be a Credit Party or any obligee in respect of any Affiliate Debt
ceases to be a Person which is required to be a party to the Subordination
Agreement by operation of this Section 9.16, the Borrower may request that any
such obligor or obligee be released from the provisions of the Subordination
Agreement and the Administrative Agent shall be authorized to, and hereby agrees
that it will, at the request and the expense of the Borrower, execute such
documentation as may be necessary to evidence such release (which documentation
shall be in form and substance reasonably satisfactory to the Administrative
Agent).

         9.17     Sears Tower. The Borrower will not, nor will the Borrower
permit any of its Subsidiaries or Unconsolidated Entities to, whether
voluntarily or involuntarily (a) incur any additional Indebtedness, funding or
other obligations relating to Sears Tower (other than the accrual of interest on
mortgage Indebtedness existing on the Effective Date and the satisfaction of
funding obligations existing on the Effective Date of approximately $4,600,000,
in each case

                                      -63-
<PAGE>

pursuant to the terms of documentation existing on the Effective Date and as and
to the extent described in the Sears Tower Memorandum), (b) make or maintain any
additional Investments in or with respect to Sears Tower (other than the
satisfaction of funding obligations existing on the Effective Date of
approximately $4,600,000, pursuant to documentation existing on the Effective
Date and as and to the extent described in the Sears Tower Memorandum), or (c)
enter into any agreement (including, without limitation, any amendment or
modification of any agreement existing on the Effective Date) relating to Sears
Tower (i) pursuant to which title to Sears Tower or any part thereof is or will
be in the name of the Borrower or any other Credit Party, (ii) which requires
the Borrower or any of its Subsidiaries or Unconsolidated Entities to incur any
additional Indebtedness, funding or other obligations with respect to, or to
make any additional Investments in, Sears Tower (other than the accrual of
interest on mortgage Indebtedness existing on the Effective Date and the
satisfaction of funding obligations existing on the Effective Date of
approximately $4,600,000, in each case pursuant to documentation existing on the
Effective Date and as and to the extent described in the Sears Tower Memorandum)
or (iii) which otherwise could reasonably be expected to have, either
individually or in the aggregate, an adverse effect on the Borrower and its
Subsidiaries taken as a whole.

         9.18     Mortgaged Properties. (a) The Borrower will not, nor will the
Borrower permit any of its Subsidiaries to, initiate or consent to any zoning
reclassification of any Mortgaged Property or seek any material variance under
any existing zoning ordinance or use or permit the use of any Mortgaged 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.
The Borrower will not, nor will the Borrower permit any of its Subsidiaries to,
initiate or consent to any change in any Applicable Laws which now or hereafter
could reasonably be likely to materially and adversely affect the ownership,
occupancy, use or operation of any Mortgaged Property.

         (b) The Borrower will not, nor will the Borrower permit any of its
Subsidiaries to, suffer, permit, initiate or consent to, directly or indirectly,
the joint assessment of any Mortgaged Property with any other Real Property
constituting a separate tax lot that is not a Mortgaged Property.

         (c) The Borrower will not, nor will the Borrower permit any of its
Subsidiaries to, transfer any Mortgaged Property which has not been removed from
the Borrowing Base in accordance with Section 8.13(b); provided that so long as
(i) no Specified Default or Event of Default then exists or would result
therefrom and (ii) such transfer would not cause such Mortgaged Property to fail
to satisfy the Mortgaged Property Conditions, a Mortgaged Property Owner may
transfer a Mortgaged Property in its entirety at any time to another Subsidiary
of the Borrower which is (or at the time of such transfer becomes) a Credit
Party pursuant to transfer and assumption documentation in form and substance
reasonably satisfactory to the Administrative Agent; and provided further that
so long as no Specified Default or Event of Default then exists, a Mortgaged
Property Owner may (x) sell any equipment or other personal property included in
the Collateral as long as it has replaced the items sold with other Property of
at least comparable value and utility and caused such other Property to be
encumbered by the Liens of the Security Documents and (y) sell, free and clear
of the Liens of the Security Documents, any equipment or personal property
included in the Collateral which, in the reasonable judgment of such Mortgaged
Property Owner, is obsolete.

                                      -64-
<PAGE>

         (d) The Borrower will not, nor will the Borrower permit any of its
Subsidiaries to, enter into, or otherwise be or become obligated with respect
to, or amend or modify, any Lease with respect to any Mortgaged Property if (i)
the result of any such action is that the net effective rent (i.e., stated rent
less the amount of rent abatements, landlord's work and other inducements
provided by the landlord to the tenant thereunder) payable to the Mortgaged
Property Owner under such Lease is less than the net effective rent (i.e.,
stated rent less the amount of rent abatements, landlord's work and other
inducements provided by the landlord to the tenant thereunder) then payable to
the landlord under comparable space leases (including size, height, view and
location within the building) then being executed at other properties comparable
to such Mortgaged Property in the market in which such Mortgaged Property is
located with tenants of similar capitalization, creditworthiness and bargaining
power.

         SECTION 10.  Events of Default. Upon the occurrence of any of the
following specified events (each an "Event of Default"):

         10.01    Payments. The Borrower shall (i) default in the payment when
due of any principal of any Loan or any Note, (ii) default, and such default
shall continue unremedied for five or more Business Days, in the payment when
due of any interest on any Loan or Note, any Unpaid Drawing or any Fees, and
(iii) default, and such default shall continue unremedied for 10 or more
Business Days, in the payment when due of any other amount owing hereunder or
under any of the other Credit Documents; or

         10.02    Representations, etc. Any representation, warranty or
statement made or deemed made by any Credit Party herein or in any other Credit
Document or in any certificate delivered to the Administrative Agent or any
Lender pursuant hereto or thereto shall prove to be untrue in any material
respect on the date as of which made or deemed made; or

         10.03    Covenants. The Borrower or any of its Subsidiaries shall (i)
default in the due performance or observance by it of any term, covenant or
agreement contained in Sections 8.01(f)(i), 8.04, 8.10, 8.12, 8.13(b) or Section
9 (other than Sections 9.08, 9.09, 9.14 and 9.18(a), (b) and (d)), (ii) default
in the due performance or observance by it of any term, covenant or agreement
contained in Section 9.14 and such default shall not be cured within 10 days
after the occurrence of such default pursuant to Section 4.02(b), or (iii)
default in the due performance or observance by it of any other term, covenant
or agreement contained in this Agreement or in any other Credit Document (other
than those set forth in Sections 10.01 and 10.02 and clauses (i) and (ii) of
this Section 10.03) and such default as described in this clause (iii) shall
continue unremedied for a period of 30 days after written notice thereof to the
Borrower by the Administrative Agent or the Required Lenders, provided, however,
that if any such default as described in this clause (iii) is of the type which
cannot be cured within such 30-day period (and is curable after such period),
such default shall not be an Event of Default hereunder if the Borrower, within
such 30-day period, shall have commenced and shall be diligently pursuing such
cure and the Borrower shall have such additional time as is reasonably required
to effect such cure, but in no event in excess of 75 days from the date of such
default; or

         10.04    Default Under Other Agreements. Any Credit Party shall (x)
default in any payment of any Indebtedness (other than the Obligations) beyond
the period of grace, if any, provided in the instrument or agreement under which
such Indebtedness was created or

                                      -65-
<PAGE>

(y) default in the observance or performance of any agreement or condition
relating to any Indebtedness (other than the Obligations) or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other
event shall occur or condition shall exist, the effect of which default or other
event or condition is to cause, or to permit the holder or holders of such
Indebtedness (or a trustee or agent on behalf of such holder or holders) to
cause (determined without regard to whether any notice of acceleration or
similar notice is required), any such Indebtedness to become (or to be declared)
due prior to its stated maturity, provided that it shall not be a Default or an
Event of Default under this Section 10.04 unless the aggregate principal amount
of all Indebtedness outstanding at such time as described in preceding clauses
(i) and (ii) is at least $50,000,000; or

         10.05    Bankruptcy, etc. Any Credit Party shall commence a voluntary
case concerning itself under Title 11 of the United States Code entitled
"Bankruptcy," as now or hereafter in effect, or any successor thereto (the
"Bankruptcy Code"); or an involuntary case is commenced against any Credit Party
and the petition is not controverted within 15 days after the earlier of (x)
actual knowledge by a Credit Party of the commencement of such case and (y)
service on a Credit Party of the applicable summons, or the petition is not
dismissed within 60 days after commencement of the case; or any Credit Party
commences any other proceeding under any reorganization, arrangement, adjustment
of debt, relief of debtors, dissolution, insolvency, receivership,
administration or liquidation or similar law of any jurisdiction whether now or
hereafter in effect relating to any Credit Party, or there is commenced against
any Credit Party any such proceeding which remains undismissed for a period of
60 days, or any Credit Party is adjudicated insolvent or bankrupt; or any order
of relief or other order approving any such case or proceeding is entered; or
any Credit Party suffers any appointment of any custodian, administrator,
administrative receiver or the like for it or any substantial part of its
property to continue undischarged or unstayed for a period of 60 days; or any
Credit Party makes a general assignment for the benefit of creditors; or any
Company action is taken by any Credit Party for the purpose of effecting any of
the foregoing; or

         10.06    Judgments. One or more judgments or decrees shall be entered
against any Credit Party involving in the aggregate for the Credit Parties a
liability or liabilities (not paid or fully covered by a reputable and solvent
insurance company), and such judgments and decrees either shall be final and
non-appealable or shall not be vacated, discharged or stayed or bonded pending
appeal for any period of 30 consecutive days, and the aggregate amount of all
such judgments exceeds $25,000,000; or

         10.07    ERISA. (a) Any Plan shall fail to satisfy the minimum funding
standard required for any plan year or part thereof under Section 412 of the
Code or Section 302 of ERISA or a waiver of such standard or extension of any
amortization period is sought or granted under Section 412 of the Code or
Section 303 or 304 of ERISA, a Reportable Event shall have occurred, a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a Plan
subject to Title IV of ERISA shall be subject to the advance reporting
requirement of PBGC Regulation Section 4043.61 (without regard to subparagraph
(b)(1) thereof) and an event described in subsection .62, .63, .64, .65, .66,
..67 or .68 of PBGC Regulation Section 4043 shall be reasonably expected to occur
with respect to such Plan within the following 30 days, any Plan which is
subject to Title IV of ERISA shall have had or is reasonably likely to have a
trustee appointed to administer such Plan, any Plan or Multiemployer Plan which
is subject to Title IV of ERISA is,

                                      -66-
<PAGE>

shall have been or is reasonably likely to be terminated or to be the subject of
termination proceedings under ERISA, any Plan shall have an Unfunded Current
Liability, a contribution required to be made with respect to a Plan or
Multiemployer Plan or a Foreign Pension Plan has not been timely made, the
Borrower, any Subsidiary thereof or any ERISA Group member has incurred or is
reasonably likely to incur any liability to or on account of a Plan or
Multiemployer Plan under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064,
4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29), 4971 or 4975 of the
Code or on account of a group health plan (as defined in Section 607(1) of ERISA
or Section 4980B(g)(2) of the Code) under Section 4980B of the Code, or the
Borrower, or any Subsidiary thereof has incurred or is reasonably likely to
incur liabilities pursuant to one or more employee welfare benefit plans (as
defined in Section 3(1) of ERISA) that provide benefits to retired employees or
other former employees (other than as required by Section 601 of ERISA) or Plans
or Foreign Pension Plans, a "default," within the meaning of Section 4219(c)(5)
of ERISA, shall occur with respect to any Multiemployer Plan; any applicable
law, rule or regulation is adopted, changed or interpreted, or the
interpretation or administration thereof is changed, in each case after the date
hereof, by any governmental authority or agency or by any court (a "Change in
Law"), or, as a result of a Change in Law, an event occurs following a Change in
Law, with respect to or otherwise affecting any Plan or Multiemployer Plan; (b)
there shall result from any such event or events described in subsection (a) the
imposition of a lien, the granting of a security interest, or a liability or a
material risk of incurring a liability; and (c) such lien, security interest or
liability, individually, and/or in the aggregate has had, or is reasonably
likely to have, a Material Adverse Effect; or

         10.08    Guaranties, etc. The Subsidiaries Guaranty or any of the
Security Documents or any provision thereof (other than an immaterial provision)
shall cease to be in full force or effect as to any Subsidiary Guarantor, or any
Subsidiary Guarantor or Person acting by or on behalf of such Subsidiary
Guarantor shall deny or disaffirm such Subsidiary Guarantor's obligations under
the Subsidiaries Guaranty or any of the Security Documents, or any Subsidiary
Guarantor shall default in the due performance or observance of any term,
covenant or agreement on its part to be performed or observed pursuant to the
Subsidiaries Guaranty or any of the Security Documents beyond the expiration of
any applicable grace or cure period provided for therein; or

         10.09    Change of Control. A Change of Control shall occur; or

         10.10    Stock Exchange Listing. The common stock of the Borrower shall
for any reason whatsoever cease to be listed on the New York Stock Exchange, the
American Stock Exchange, NASDAQ or another major United States stock exchange;

         then, and in any such event, and at any time thereafter, if any Event
of Default shall then be continuing, the Administrative Agent, upon the written
request of the Required Lenders, shall by written notice to the Borrower, take
any or all of the following actions, without prejudice to the rights of the
Administrative Agent, any Lender or the holder of any Note to enforce its claims
against the Borrower and the other Credit Parties (provided that if an Event of
Default specified in Section 10.05 shall occur with respect to the Borrower, the
result which would occur upon the giving of written notice by the Administrative
Agent as specified in clauses (i) and (ii) below shall occur automatically
without the giving of any such notice): (i) declare the Total Commitment
terminated, whereupon the Commitment of each Lender shall

                                      -67-
<PAGE>

forthwith terminate immediately and any Commitment Commission and Facility Fees
shall become, forthwith due and payable without any other notice of any kind;
(ii) declare the principal of and any accrued interest in respect of all Loans
and the Notes and all Obligations owing hereunder and thereunder to be,
whereupon the same shall become, forthwith due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower; (iii) terminate any Letter of Credit which may be terminated in
accordance with its terms; (iv) direct the Borrower to pay (and the Borrower
agrees that upon receipt of such notice, or upon the occurrence of an Event of
Default specified in Section 10.05 with respect to the Borrower, it will pay) to
the Administrative Agent at the Payment Office such additional amount of cash or
Cash Equivalents, to be held as security by the Administrative Agent, as is
equal to the aggregate Stated Amount of all Letters of Credit issued for the
account of the Borrower and then outstanding; (v) apply any cash collateral held
by the Administrative Agent pursuant to Section 4.02 to the repayment of the
Obligations; and (v) enforce the Liens created by, and the rights granted to the
Administrative Agent and the Lenders pursuant to, the Security Documents and the
other Credit Documents.

         SECTION 11.  Definitions.

         11.01    Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to
both the singular and plural forms of the terms defined):

         "Addition Date" shall mean each date on which a Mortgaged Property is
added to the Borrowing Base pursuant to Section 8.13(a).

         "Additional Mortgaged Property" shall have the meaning provided in
Section 8.13(a).

         "Administrative Agent" shall mean DBTCA, in its capacity as
Administrative Agent for the Lenders hereunder, and shall include any successor
to the Administrative Agent appointed pursuant to Section 12.09.

         "Affiliate" shall mean, with respect to any Person, any other Person
directly or indirectly controlling (including, but not limited to, all directors
and officers of such Person), controlled by, or under direct or indirect common
control with, such Person. A Person shall be deemed to control another Person if
such Person possesses, directly or indirectly, the power (i) to vote 10% or more
of the Equity Interests having ordinary voting power for the election of
directors (or equivalent governing body) of such Person or (ii) to direct or
cause the direction of the management and policies of such other Person, whether
through the ownership of voting securities, by contract or otherwise.

         "Affiliate Debt" shall mean any Indebtedness owed by any Credit Party
to any Subsidiary of the Borrower which is not a Credit Party.

         "Agreement" shall mean this Credit Agreement, as modified,
supplemented, amended, restated (including any amendment and restatement
hereof), extended or renewed from time to time.

                                      -68-
<PAGE>

         "Applicable Commitment Commission Percentage" shall mean, for purposes
of calculating the applicable Commitment Commission on the Unutilized Commitment
of any Lender on any date, a percentage per annum equal to that set forth below
opposite the respective Utilization Percentage on such date:

                                                   COMMITMENT COMMISSION
         UTILIZATION PERCENTAGE                           PERCENTAGE
-------------------------------------------        ---------------------
         less than 33%                                       0.250%
-------------------------------------------        ---------------------
         greater than or equal to 33%                        0.200%
         but less than or equal to 66%
-------------------------------------------        ---------------------
         greater than 66%                                    0.125%
-------------------------------------------        ---------------------

         "Applicable Laws" means, collectively, all statutes, laws, rules,
regulations, ordinances, orders, decisions, writs, judgments, decrees and
injunctions of Governmental Authorities (including Environmental Law) affecting
Borrower, any Credit Party or the Collateral or any part thereof (including the
acquisition, development, construction, renovation, occupancy, use, improvement,
alteration, management, operation, maintenance, repair or restoration thereof),
whether now or hereafter enacted and in force, and all Authorizations relating
thereto.

         "Applicable Margin" shall mean: from and after any Start Date to and
including the corresponding End Date, with respect to Revolving Loans and
Swingline Loans, the respective percentage per annum set forth below under the
respective Type of Revolving Loans and for Swingline Loans and (in each case)
opposite the respective Level (i.e., Level 1, Level 2, Level 3, Level 4, Level
5, Level 6 or Level 7, as the case may be) indicated to have been achieved on
the applicable Test Date for such Start Date (as shown in the respective
officer's certificate delivered pursuant to Section 8.01(e) or the first proviso
below) (and with the "Ratio" described below to be the Consolidated Total
Indebtedness of the Borrower as a percentage of the Consolidated Total Asset
Value of the Borrower):

<TABLE>
<CAPTION>
                                             Revolving Loans                Revolving Loans
                                           maintained as Base            maintained as Eurodollar
   Level                Ratio                  Rate Loans                      Rate Loans             Swingline Loans
---------     --------------------------   ------------------            -------------------------    ---------------
<S>           <C>                          <C>                           <C>                          <C>
     1        Less than or                          0%                          1.125%                   1.375%
              equal to 35%

     2        Greater than 35%                      0%                          1.375%                   1.625%
              but  less  than or  equal
              to 45%
</TABLE>

                                      -69-
<PAGE>

<TABLE>
<S>           <C>                          <C>                           <C>                          <C>
     3        Greater   than   45%  but             0%                          1.625%                   1.875%
              less than or equal to 50%

     4        Greater   than   50%  but             0.250%                      1.875%                   2.125%
              less than or equal to 55%

     5        Greater   than   55%  but             0.500%                      2.125%                   2.375%
              less than or equal to 60%

     6        Greater   than   60%  but             0.875%                      2.50%                    2.75%
              less than or equal to 65%

     7        Greater than 65%                      1.375%                      3.00%                    3.25%
</TABLE>

; provided, however, that if the Borrower fails to deliver the financial
statements required to be delivered pursuant to Section 8.01(a)(A) or (b)(A)
(accompanied by the officer's certificate required to be delivered pursuant to
Section 8.01(e) showing the applicable Ratio on the relevant Test Date) on or
prior to the respective date required by such Sections, then Level 6 pricing
shall apply until such time, if any, as the financial statements required as set
forth above and the accompanying officer's certificate have been delivered
showing the pricing for the respective Pricing Period is at a level which is
less than Level 6 (it being understood that, in the case of any late delivery of
the financial statements and officer's certificate as so required, any reduction
in the Applicable Margin shall apply only from and after the date of the
delivery of the complying financial statements and officer's certificate);
provided further, that Level 6 pricing shall apply at all times when Level 7
pricing does not apply and a Specified Default is in existence.

         "Appraisal" shall mean, with respect to any Mortgaged Property, a
written appraisal of such Mortgaged Property prepared by an Appraiser and
delivered to the Administrative Agent, in each case in form, content and
methodology satisfactory to the Administrative Agent and the Required Lenders
and in compliance with all applicable legal and regulatory requirements.

         "Appraised Value" shall mean, as of any date of determination and with
respect to any Mortgaged Property, the appraised value of such Mortgaged
Property "as is" as most recently determined by an Appraisal on or before such
date of determination.

         "Appraiser" means Cushman & Wakefield, or any other independent
appraiser selected by the Administrative Agent (and, if no Event of Default is
then in existence, reasonably acceptable to the Borrower), who meets all
regulatory requirements applicable to the Administrative Agent and the Lenders,
who is a member of the Appraisal Institute with a national practice and who has
at least 10 years experience with real estate of the same type and in the same
geographic area as the Mortgaged Property to be appraised.

                                      -70-
<PAGE>
                  "Asset Sale" shall mean any sale (including pursuant to
sale-leaseback transactions), transfer or other disposition by the Borrower or
any of its Subsidiaries to any Person other than the Borrower or any Specified
Subsidiary of the Borrower of any Property (including, without limitation, any
Equity Interests or other securities of another Person, but excluding the sale
by the Borrower of its own capital stock) of the Borrower or any Subsidiary of
the Borrower other than (i) sales or liquidations of Cash Equivalents, (ii)
operating leases or subleases, licenses and easements of any property by the
Borrower and its Subsidiaries in the ordinary course of business, and (iii) the
licensing of intellectual property in the ordinary course of business. As used
in this definition, the term "Specified Subsidiary" shall mean any Subsidiary of
the Borrower in which the Borrower's percentage ownership interest is greater
than or equal to the percentage ownership interest in the respective Subsidiary
of the Borrower that is selling, transferring or otherwise disposing of such
Property.

                  "Assignment and Assumption Agreement" shall mean an Assignment
and Assumption Agreement substantially in the form of Exhibit M (appropriately
completed).

                  "Assignment of Rents and Leases" shall mean each Assignment of
Rents and Leases executed by a Mortgaged Property Owner with respect to a
Mortgaged Property substantially in the form of Exhibit N (with appropriate
changes to reflect Applicable Laws and otherwise appropriately completed), as
the same may be amended, modified or supplemented from time to time.

                  "Assumed Debt Service Amount" shall mean, as of any date of
determination, an amount equal to the product obtained by multiplying (a) an
amount equal to the aggregate principal amount of Loans outstanding on such date
by (b) an assumed rate equal to the greatest of the following: (i) an interest
rate constant equal to the sum of 2% plus the imputed 7 year United States
Treasury Notes annual yield as of such date based upon published quotes for
Treasury notes having 7 years to maturity and assuming that such Loans were
being amortized using a 25 year mortgage style amortization schedule, (ii) 9.25%
and (iii) the sum of the three month Eurodollar Rate and the Applicable Margin
for Eurodollar Rate Loans then applicable hereunder.

                  "Authorization" means any authorization, approval, franchise,
license, variance, land use entitlement, sewer and waste water discharge permit,
storm water discharge permit, air pollution authorization to operate,
certificate of occupancy, municipal water and sewer connection permit, and any
like or similar permit now or hereafter required for the construction or
renovation of any improvements located on any Mortgaged Property or for the use,
occupancy or operation of any Mortgaged Property and all amendments,
modifications, supplements and addenda thereto.

                  "Bankruptcy Code" shall have the meaning provided in Section
10.05.

                  "Base Rate" at any time shall mean (x) except as provided in
succeeding clause (y), the higher of (i) 1/2 of 1% in excess of the overnight
Federal Funds Rate and (ii) the Prime Lending Rate, and (y) in the case of
calculating interest on outstanding Swingline Loans, the overnight Federal Funds
Rate.

                                      -71-
<PAGE>
                  "Base Rate Loan" shall mean (i) each Swingline Loan and (ii)
each Revolving Loan designated or deemed designated as such by the Borrower at
the time of the incurrence thereof or conversion thereto.

                  "Borrower" shall have the meaning provided in the first
paragraph of this Agreement.

                  "Borrowing" shall mean (i) the borrowing of one Type of
Revolving Loan from all the Lenders on a given date (or resulting from a
conversion or conversions on such date) having in the case of Eurodollar Rate
Loans the same Interest Period, provided that Base Rate Loans incurred pursuant
to Section 1.11 shall be considered part of the related Borrowing of Eurodollar
Rate Loans and (ii) the borrowing of Swingline Loans from the Swingline Lender
on a given date.

                  "Borrowing Base" shall mean, at any time, all of the Mortgaged
Properties at such time.

                  "Borrowing Base Amount" shall mean, at any time, an amount
determined from the Borrowing Base Certificate most recently delivered pursuant
to Section 8.01(j) to be equal to 60% of the Borrowing Base Value at such time.

                  "Borrowing Base Amount Deficiency" shall have the meaning
provided in Section 4.02(b)(i).

                  "Borrowing Base Certificate" shall have the meaning provided
in Section 8.01(j).

                  "Borrowing Base Property Value" shall mean, with respect to
each Mortgaged Property, the Appraised Value of such Mortgaged Property.

                  "Borrowing Base Value" shall mean, at any date, the sum of the
Borrowing Base Property Values for all of the Mortgaged Properties included in
the Borrowing Base (less the portion thereof, if any, attributable (x) to any
Mortgaged Property which at any time fails to satisfy each of the Mortgaged
Property Conditions and (y) any Excluded Mortgaged Property), provided however:

                 (i) the portion of the aggregate amount of the Borrowing Base
         Value attributable to Mortgaged Properties which are owned by
         Subsidiary Guarantors that are not Wholly-Owned Subsidiaries of the
         Borrower which would cause such aggregate amount to exceed 15% of the
         total Borrowing Base Value at such time (after making all adjustments
         required by this proviso) will be disregarded in determining Borrowing
         Base Value;

                (ii) the portion of the aggregate amount of the Borrowing Base
         Value attributable to Mortgaged Properties which are subject to a
         ground lease which would cause such aggregate amount to exceed 20% of
         the total Borrowing Base Value at such time (after making all
         adjustments required by this proviso) will be disregarded in
         determining Borrowing Base Value;

                                      -72-
<PAGE>

               (iii) the portion of the aggregate amount of the Borrowing Base
         Value attributable to Mortgaged Properties located in a single
         Metropolitan Statistical Area outside of the top 10 Metropolitan
         Statistical Areas which would cause such aggregate amount to exceed 25%
         of the total Borrowing Base Value at such time (after making all
         adjustments required by this proviso) will be disregarded in
         determining Borrowing Base Value;

                (iv) the portion of the aggregate amount of the Borrowing Base
         Value attributable to any single Mortgaged Property which would cause
         such amount to exceed 15% of the total Borrowing Base Value at such
         time (after making all adjustments required by this proviso) will be
         disregarded in determining Borrowing Base Value; and

                 (v) the portion of the aggregate amount of the Borrowing Base
         Value attributable to industrial and/or flex Mortgaged Properties which
         would cause such aggregate amount to exceed 7.5% of the total Borrowing
         Base Value at such time (after making all adjustments required by this
         proviso) will be disregarded in determining Borrowing Base Value.

                  "Business Day" shall mean (i) for all purposes other than as
covered by clause (ii) below, any day except Saturday, Sunday and any day which
shall be in New York City a legal holiday or a day on which banking institutions
are authorized or required by law or other government action to close and (ii)
with respect to all notices and determinations in connection with, and payments
of principal and interest on, Eurodollar Rate Loans, any day which is a Business
Day described in clause (i) above and which is also a day for trading by and
between banks in the London interbank Eurodollar market.

                  "Capital Lease" as applied to any Person shall mean any lease
of any property (whether real, personal or mixed) by that Person as lessee
which, in conformity with GAAP, is accounted for as a capital lease on the
balance sheet of that Person.

                  "Capitalized Lease Obligations" shall mean, for any Person,
all obligations under Capital Leases of such Person or any of its Subsidiaries
in each case taken at the amount thereof accounted for as liabilities in
accordance with GAAP.

                  "Cash Equivalents" shall mean, as to any Person, (i)
securities issued or directly and fully guaranteed or insured by the United
States or any agency or instrumentality thereof (provided that the full faith
and credit of the United States is pledged in support thereof) having maturities
of not more than one year from the date of acquisition, (ii) marketable direct
obligations issued by any state of the United States or any political
subdivision of any such state or any public instrumentality thereof maturing
within one year from the date of acquisition thereof and, at time of
acquisition, having one of the two highest ratings obtainable from either S&P or
Moody's, (iii) Dollar denominated time deposits and certificates of deposit of
any commercial bank having, or which is the principal banking subsidiary of a
bank holding company having, in either case at the time of acquisition thereof,
a long-term unsecured debt rating of at least "A" or the equivalent thereof from
S&P or "A2" or the equivalent thereof from Moody's with maturities of not more
than one year from the date of acquisition by such Person, (iv) repurchase
obligations with a term of not more than seven days for underlying securities of
the types described in clause (i) above entered into with any bank meeting the
qualifications specified in clause (iii)

                                      -73-
<PAGE>
above, (v) commercial paper issued by any Person rated, at the time of
acquisition, at least A-1 or the equivalent thereof by S&P or at least P-1 or
the equivalent thereof by Moody's and in each case maturing not more than 270
days after the date of acquisition by such Person and (vi) investments in money
market funds substantially all of whose assets are comprised of securities of
the types described in clauses (i) through (v) above.

                  "Casualty" shall mean the occurrence of any damage to or loss
or destruction of all or any portion of any Mortgaged Property.

                  "CERCLA" shall mean the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as the same may be amended from time to
time, 42 U.S.C. ss. 9601 et seq.

                  "Change in Law" shall have the meaning provided in Section
10.07.

                  "Change of Control" shall mean: (i) any Person or "group"
(within the meaning of Sections 13(d) and 14(d) under the Exchange Act, as in
effect on the Effective Date), other than one or more Permitted Holders, shall
(A) have acquired beneficial ownership of 25% or more on a fully diluted basis
of the voting and/or economic interest in the Borrower's capital stock (provided
that the acquisition of up to a 45% beneficial ownership interest in the
aggregate in the capital stock of the Borrower by one or more institutional
lenders through the foreclosure of a Lien securing bona fide amounts owed to
such institutional lenders by Trizec Canada or any of its Subsidiaries (other
than the Borrower or any of its Subsidiaries) shall not constitute a Change of
Control under this clause (A), although any subsequent transfer, sale or other
disposition by any such institutional lender or lenders of all or any portion of
the shares of capital stock of the Borrower shall be subject to the provisions
of this clause (i)(A) determined without regard to this proviso) or (B) have
obtained the power (whether or not exercised) to elect a majority of the
Borrower's directors or (ii) the Board of Directors of the Borrower shall cease
to consist of a majority of Continuing Borrower Directors or (iii) prior to the
formation of the Co-Borrower, the Borrower shall at any time cease to own
beneficially and of record, directly, free and clear of all Liens, voting
agreements, restrictions or trusts of any kind, 100% of the outstanding Equity
Interests of Holdings, TRE and any Subsidiary Guarantor described in Section
8.13(f) on a fully diluted basis or (iv) after the formation of the Co-Borrower,
(a) the Borrower shall at any time cease to own beneficially and of record,
directly, free and clear of all Liens, or voting agreements, restrictions or
trusts of any kind, 80% of the outstanding Equity Interests of the Co-Borrower
on a fully diluted basis and (b) the Co-Borrower shall at any time cease to own
beneficially and of record, directly, free and clear of all Liens, voting
agreements, restrictions or trusts of any kind, 100% of the outstanding Equity
Interests of Holdings, TRE and any Subsidiary Guarantor described in Section
8.13(f) on a fully diluted basis.

                  "Claims" shall have the meaning provided in the definition of
Environmental Claim.

                  "Co-Borrower" shall have the meaning provided in Section
8.04(b).

                  "Code" shall mean the Internal Revenue Code of 1986, as
amended from time to time and the regulations promulgated and the rulings issued
thereunder. Section references to

                                      -74-
<PAGE>
the Code are to the Code, as in effect on the Effective Date and to any
subsequent provisions of the Code, amendatory thereof, supplemental thereto or
substituted therefor.

                  "Collateral" shall mean, collectively, the Mortgaged
Properties, together with all other Property owned or to be owned or leased or
to be leased by any Mortgaged Property Owner or in which any Mortgaged Property
Owner has or shall acquire an interest in connection with any of the Mortgaged
Properties, to the extent of such Mortgaged Property Owner's interest therein,
in which a Lien is granted to the Administrative Agent to secure all or any part
of the Guaranteed Obligations pursuant to the Security Documents, including,
without limitation, the Leases and Rents and any and all proceeds of the
foregoing.

                  "Commitment" shall mean, for each Lender, the amount set forth
opposite such Lender's name in Schedule I directly below the column entitled
"Commitment," as the same may be (x) reduced from time to time pursuant to
Sections 3.02, 3.03 and/or 10 or (y) adjusted from time to time as a result of
assignments to or from such Lender pursuant to Section 1.14 or 13.04(b).

                  "Commitment Commission" shall have the meaning provided in
Section 3.01(a).

                  "Company" shall mean any corporation, limited company, limited
liability company, partnership or other business entity (or the adjectival form
thereof, where appropriate).

                  "Compliance Certificate" shall mean a certificate duly
executed in the form of Exhibit O.

                  "Condemnation Proceeds" shall mean all compensation, awards,
damages, rights of action and proceeds awarded to any Credit Party by reason of
any Taking relating to any Mortgaged Property.

                  "Consolidated EBITDA" of any Person for any period shall mean,
without duplication, the consolidated net income or loss of such Person (before
deduction for minority interests in Consolidated Entities and excluding, solely
for purposes of Sections 9.12 and 9.13, the adjustment for so-called
"straight-line rent accounting") for such period; plus (A) the following items
to the extent deducted in computing such consolidated net income of such Person
for such period: (i) Consolidated Interest Expense of such Person for such
period, (ii) Consolidated Income Tax Expense of such Person for such period and
(iii) consolidated real estate depreciation, amortization and other
extraordinary and non-cash items of such Person for such period (except, in the
case of such other non-cash items, to the extent that a cash payment will be
required to be made in respect thereof in a future period); minus (B) the
following items to the extent included in computing such consolidated net income
of such Person for such period: (i) all consolidated gains (or plus all losses)
attributable to the sale or other disposition of assets or debt restructurings
of such Person in such period, (ii) income (loss) from Unconsolidated Entities
and (iii) for purposes of calculating Consolidated Total Asset Value of such
Person only, all consolidated interest income of such Person received in
connection with any Mortgages; plus (or minus, as applicable) (C) such Persons'
Unconsolidated Allocation Percentage of the items described above in this
definition of any Unconsolidated Entity for such period; provided, however,
that, notwithstanding the foregoing and solely for the purposes of Sections 9.12
and

                                      -75-
<PAGE>
9.13, the Consolidated EBITDA for any Real Estate Asset owned or leased by such
Person or any Consolidated Entity or Unconsolidated Entity of such Person for
less than one completed fiscal quarter shall equal the product (or, in the case
of any such Real Estate Asset owned or leased by an Unconsolidated Entity of
such Person, such Person's Unconsolidated Allocation Percentage of the product)
obtained by multiplying (I) the product of (a) the aggregate Cost of such Person
or its Consolidated Entity or Unconsolidated Entity, as applicable, to acquire
such Real Estate Asset and (b) 9%, by (II) a fraction whose numerator is the
actual number of days in such fiscal quarter during which such Person or its
Consolidated Entity or Unconsolidated Entity, as applicable, owned or leased
such Real Estate Asset and the denominator of which is the actual number of days
in the fiscal year in which such fiscal quarter occurs.

                  "Consolidated Entity" shall mean, for any Person at any date,
any Subsidiary or other Person which is consolidated with such first Person in
accordance with GAAP.
                  "Consolidated Fixed Charge Coverage Ratio" of any Person for
any period shall mean the ratio of (x) Consolidated EBITDA of such Person for
such period to (i) to Consolidated Fixed Charges of such Person for such period.

                  "Consolidated Fixed Charges" of any Person for any period
shall mean the sum of, without duplication, (i) Consolidated Interest Expense of
such Person for such period, (ii) an amount equal to $0.30 multiplied by the
rentable square footage of all Real Estate Assets of such Person and its
Consolidated Entities, (iii) the aggregate amount of all Dividends paid by such
Person and its Consolidated Entities during such period on any Preferred Stock,
(iv) the scheduled principal amount of all amortization payments on all
Indebtedness (including, without limitation, the principal component of all
Capitalized Lease Obligations) of such Person and its Consolidated Entities for
such period (as determined on the first day of such period) and (v) such
Person's Unconsolidated Allocation Percentage of any of the foregoing items that
are attributable to any Unconsolidated Entity for such period.

                  "Consolidated Income Tax Expense" of any Person for any period
shall mean the sum of, without duplication, (i) the consolidated provision for
income taxes of such Person taken into account in determining the consolidated
net income of such Person for such period and (ii) such Person's Unconsolidated
Allocation Percentage of the consolidated provision for income taxes of any
Unconsolidated Entity for such period.

                  "Consolidated Interest Coverage Ratio" of any Person for any
period shall mean the ratio of (x) Consolidated EBITDA of such Person for such
period to (y) Consolidated Interest Expense of such Person for such period.

                  "Consolidated Interest Expense" of any Person for any period
shall mean the sum of, without duplication, (i) the total consolidated interest
expense of such Person for such period (calculated without regard to any
limitations on the payment thereof) plus, without duplication, that portion of
consolidated Capitalized Lease Obligations of such Person representing the
interest factor for such period, but excluding that portion of the consolidated
interest expense of such Person for such period that has accrued and is
capitalized into principal at the end of such period (and is not paid in cash)
in accordance with the terms of the agreement governing the respective
Indebtedness as such terms were in effect at the time that such Indebtedness was

                                      -76-
<PAGE>
originally incurred, and (ii) such Person's Unconsolidated Allocation Percentage
of any of the foregoing items that are attributable to any Unconsolidated Entity
for such period.

                  "Consolidated Net Worth" of any Person at any time shall mean
the total assets minus the total liabilities of such Person at such time as
would be required to be reflected at such time on the consolidated balance sheet
of such Person.

                  "Consolidated Total Asset Value" of any Person at any time
 shall mean the sum of, without duplication, the following amounts of such
 Person and its Consolidated Entities at such time: (i) all Unrestricted Cash
 and Cash Equivalents, (ii) the Fair Market Value of all Real Estate Assets
 (other than Land held for Development, Land under Development, Retail
 Properties and Real Estate Assets held by real estate related technology
 companies), (iii) all Land held for Development, Land Under Development and
 Retail Properties valued at the book value thereof before accumulated
 depreciation, (iv) all other Investments (including real estate related
 technology companies and taxable REIT Subsidiaries), valued at book value
 before accumulated depreciation and (v) to the extent not otherwise included in
 any of preceding clauses (i) through (iv), such Person's Unconsolidated
 Allocation Percentage of any of the items in preceding clauses (i), (iii) and
 (iv) that are attributable to an Unconsolidated Entity at such time; provided,
 however, clause (ii) of this definition shall be calculated on a Pro Forma
 Basis.

                  "Consolidated Total Indebtedness" of any Person at any time
 shall mean the sum of, without duplication, of the following amounts of such
 Person and its Consolidated Entities at such time: (i) all Indebtedness (other
 than Indebtedness of the type described in clause (D) of the definition thereof
 but including all other items of Indebtedness described in such definition),
 (ii) all amounts of guaranties, indemnities for borrowed money, stop-loss
 agreements and the like provided by such Person or any of its Consolidated
 Entities, in each case in connection with and guarantying repayment of amounts
 outstanding under any other Indebtedness of the type described in the other
 clauses of this definition, (iii) all amounts of bonds posted by such Person or
 any of its Consolidated Entities guaranteeing performance or payment
 obligations, and (iv) such Person's Unconsolidated Allocation Percentage of any
 of the foregoing items that are attributable to any Unconsolidated Entity at
 such time.

                  "Contingent Obligation" shall mean, as to any Person, any
liability of such Person as a result of such Person being a general partner of
any other Person, unless the underlying Indebtedness is expressly made
non-recourse as to such general partner, and any obligation of such Person
guaranteeing or intended to guarantee any Indebtedness ("primary obligations")
of any other Person (the "primary obligor") in any manner, whether directly or
indirectly, including, without limitation, any obligation of such Person,
whether or not contingent, (i) to purchase any such primary obligation or any
property constituting direct or indirect security therefor, (ii) to advance or
supply funds for the purchase or payment of any such primary obligation, (iii)
to purchase property, securities or services primarily for the purpose of
assuring the owner of any such primary obligation of the ability of the primary
obligor to make payment of such primary obligation or (iv) otherwise to assure
or hold harmless the holder of such primary obligation against loss in respect
thereof; provided, however, that the term Contingent Obligation shall not
include endorsements of instruments for deposit or collection in the ordinary
course of business. The amount of any Contingent Obligation shall be deemed to
be an amount equal to the lesser of (x) the stated or determinable amount of the
primary obligation in respect of which such

                                      -77-
<PAGE>
Contingent Obligation is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such Person is
required to perform thereunder) as shown (or would be required to be shown) on
the balance sheet of such Person or disclosed (or would be required to be
disclosed) in the footnotes of a balance sheet of such Person and (y) the stated
amount of such Contingent Obligation.

                  "Continuing Borrower Directors" shall mean the directors of
the Borrower on the Effective Date and each other director of the Borrower if
such director's nomination for election to the Board of Directors of the
Borrower is recommended by a majority of the then Continuing Borrower Directors
or by a majority of any nominating committee appointed by the then Continuing
Borrower Directors for the purpose of nominating directors for election to the
Board of Directors of the Borrower.

                  "Continuing Trizec Canada Directors" shall mean the directors
of Trizec Canada on the Effective Date and each other director of Trizec Canada
if such director's nomination for election to the Board of Directors of Trizec
Canada is recommended by a majority of the then Continuing Trizec Canada
Directors or by a majority of the nominating committee appointed by the then
Continuing Trizec Canada Directors for the purpose of nominating directors for
election to the Board of Directors of Trizec Canada.

                  "Cost" shall mean, with respect to the purchase of any
Property, without duplication, (i) the aggregate purchase price paid as cash
consideration for such purchase (without adjustment for prorations), plus the
principal amount of any note delivered or other deferred payment to be made in
connection with such purchase and the value of any non-cash consideration
delivered in connection with such purchase (including, without limitation,
shares or preferred shares of beneficial interest in the Borrower or any of its
Subsidiaries) plus (ii) reasonable and customary costs of sale and non-recurring
taxes paid or payable in connection with such purchase.

                  "Credit Documents" shall mean this Agreement, the Existing
Notes and each other Note executed and delivered pursuant to the terms of this
Agreement, the Subsidiaries Guaranty, the Subordination Agreement, the Security
Documents and, after the execution and delivery thereof pursuant to the terms of
this Agreement, the Joinder Agreement.

                  "Credit Event" shall mean the making of any Loan or the
issuance of any Letter of Credit.

                  "Credit Party" shall mean the Borrower, the Co-Borrower if
formed and each Subsidiary Guarantor.

                  "DBTCA" shall mean Deutsche Bank Trust Company Americas.

                  "Default" shall mean any event, act or condition which with
notice or lapse of time, or both, would constitute an Event of Default.

                  "Defaulting Lender" shall mean any Lender with respect to
which a Lender Default is in effect.

                                      -78-
<PAGE>
                  "Development Costs" shall mean, at any time, the sum of (i)
100% of the aggregate costs to construct and develop any Land under Development
and (ii) 100% of the aggregate costs to acquire any Real Estate Asset relating
to any Land under Development.

                  "Dividend" with respect to any Person shall mean that such
Person has paid a dividend or distribution or returned any equity capital to its
stockholders, partners or members or made any other distribution, payment or
delivery of property (other than shares of common or preferred equity of such
Person) or cash to its stockholders, partners or members as such, or redeemed,
retired, purchased or otherwise acquired, directly or indirectly, for any
consideration any shares of any class of its Equity Interests outstanding on or
after the Effective Date, or shall have permitted any of its Subsidiaries to
purchase or otherwise acquire for a consideration any shares of any class of any
Equity Interests of such Person outstanding on or after the Effective Date.

                  "Dollars" and the sign "$" shall each mean freely transferable
lawful money of the United States.

                  "Drawing" shall have the meaning provided in Section 2.05(b).

                  "Effective Date" shall have the meaning provided in Section
13.10.

                  "Eligible Transferee" shall mean and include a commercial
bank, an insurance company, a finance company, a financial institution, any fund
that invests in bank loans or any other "accredited investor" (as defined in
Regulation D of the Securities Act).

                  "End Date" shall mean, for any Pricing Period, the last day of
such Pricing Period.

                  "Engineering Reports" shall mean the engineering reports
included in the Property Information delivered to the Administrative Agent with
respect to the Mortgaged Properties.

                  "Environmental Approvals" shall mean any governmental permit,
license, approval, ruling, variance, exemption or other authorization required
under applicable Environmental Laws.

                  "Environmental Claims" shall mean any and all administrative,
regulatory or judicial actions, suits, demands, demand letters, directives,
claims, liens, notices of noncompliance or violation, investigations or
proceedings (in each case in writing) arising under any Environmental Law or any
Environmental Approval (hereafter, "Claims"), including, without limitation, (a)
any and all Claims by governmental or regulatory authorities for enforcement,
cleanup, removal, response, remedial or other actions or damages pursuant to any
applicable Environmental Law, and (b) any and all Claims by any third party
seeking damages, contribution, indemnification, cost recovery, compensation or
injunctive relief in connection with alleged injury or threat of injury to human
health, safety or the environment due to the presence of Hazardous Materials.

                                      -79-
<PAGE>
                  "Environmental Indemnity" shall mean the Environmental
Indemnity executed by the Mortgaged Property Owners with respect to the
Mortgaged Properties substantially in the form of Exhibit P (appropriately
completed), as the same may be amended, modified or supplemented from time to
time.

                  "Environmental Law" shall mean any Federal, state, foreign or
local statute, law, rule, regulation, ordinance, code and rule of common law now
or hereafter in effect and in each case as amended, and any judicial or legally
binding administrative interpretation thereof, including any judicial or
administrative order, consent decree or judgment, relating to the environment,
employee health and safety or Hazardous Materials, including, without
limitation, CERCLA; RCRA; the Federal Water Pollution Control Act, 33 U.S.C.ss.
1251 et seq.; the Toxic Substances Control Act, 15 U.S.C.ss. 2601 et seq.; the
Clean Air Act, 42 U.S.C.ss. 7401 et seq.; the Safe Drinking Water Act, 42
U.S.C.ss. 3803 et seq.; the Oil Pollution Act of 1990, 33 U.S.C.ss. 2701 et
seq.; the Emergency Planning and the Community Right-to-Know Act of 1986, 42
U.S.C.ss. 11001 et seq.; the Hazardous Material Transportation Act, 49
U.S.C.ss.1801 et seq.; the Occupational Safety and Health Act, 29 U.S.C.ss.651
et seq.; and any state and local or foreign counterparts or equivalents, in each
case as amended from time to time.

                  "Environmental Reports" shall mean the environmental audit
reports included in the Property Information delivered to the Administrative
Agent with respect to the Mortgaged Properties.

                  "Equity Interests" of any Person shall mean any and all
shares, interests, rights to purchase, warrants, options, participation or other
equivalents of or interest in (however designated) equity of such Person,
including, without limitation, any Preferred Stock, any limited or general
partnership interest and any limited liability company membership interests.

                  "ERISA" shall mean the Employee Retirement Income Security Act
of 1974, as amended from time to time, and the regulations promulgated and
rulings issued thereunder. Section references to ERISA are to ERISA, as in
effect on the Effective Date and any subsequent provisions of ERISA, amendatory
thereof, supplemental thereto or substituted therefor.

                  "ERISA Group" shall mean the Borrower and each person (as
defined in Section 3(9) of ERISA) which together with the Borrower or a
Subsidiary of the Borrower would be deemed to be a "single employer" within the
meaning of Section 414 of the Code.

                  "Eurodollar Rate" shall mean, with respect to any Interest
Period relating to a Borrowing of Eurodollar Rate Loans, (a) the rate of
interest per annum quoted by the Administrative Agent to first-class banks in
the London interbank Eurodollar market for Dollar deposits of amounts in
immediately available funds comparable to the principal amount of the Eurodollar
Rate Loan to be made by the Administrative Agent as part of such Borrowing (or,
if the Administrative is not lending any part of such Borrowing, the Lender with
the largest percentage of the respective such Borrowing) with maturities
comparable to the Interest Period applicable to such Eurodollar Rate Loans
commencing two Business Days thereafter as of 11:00 A.M. (London time) on the
date which is two Business Days prior to the commencement of such Interest
Period, in each case with the rate determined pursuant to preceding clause (a)
to be divided (and rounded upward, if necessary, to the nearest 1/16 of 1%) by
(b) a percentage equal

                                      -80-
<PAGE>
to 100% minus the then stated maximum rate of all reserve requirements
(including, without limitation, any marginal, emergency, supplemental, special
or other reserves required by applicable law) applicable to any member bank of
the Federal Reserve System in respect of Eurocurrency funding or liabilities as
defined in Regulation D (or any successor category of liabilities under
Regulation D).

                  "Eurodollar Rate Loan" shall mean each Revolving Loan
designated as such by the Borrower at the time of the incurrence thereof or
conversion thereto.

                  "Event of Default" shall have the meaning provided in Section
10.

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, and the rules and regulations promulgated thereunder.

                  "Excluded Mortgaged Property" shall mean (a) any Mortgaged
Property which the Borrower, pursuant to Section 8.13(d), has designated to be
excluded from the calculation of Borrowing Base Value, but only so long as (i)
upon the removal of such Mortgaged Property from the calculation of Borrowing
Base Value and any prepayment of Loans required by Section 4.02(b), any
Borrowing Base Amount Deficiency has been cured and (ii) such Mortgaged Property
otherwise continues to satisfy each of the other Mortgaged Property Conditions
and (b) any Mortgaged Property which is deemed to be an Excluded Mortgaged
Property pursuant to Section 8.15(d).

                  "Excluded Mortgaged Property Designation" shall have the
meaning provided in Section 8.13(d).

                  "Existing Agreement" shall have the meaning provided in the
recitals of this Agreement.

                  "Existing Credit Documents" shall have the meaning provided in
the recitals of this Agreement.

                  "Existing Notes" shall have the meaning provided in Section
1.05(a).

                  "Existing Subordination Agreement" shall mean the Affiliate
Debt and Subordination Agreement, dated as of December 12, 2001 and executed and
delivered pursuant to the Existing Agreement in the form of Exhibit K-1, as the
same has been amended, modified or supplemented prior to the Effective Date.

                  "Existing Subsidiaries Guaranty" shall mean the Subsidiaries
Guaranty, dated as of December 12, 2001 and executed and delivered pursuant to
the Existing Agreement in the form of Exhibit I-1, as the same has been amended,
modified or supplemented prior to the Effective Date.

                  "Facing Fee" shall have the meaning provided in Section
3.01(c).

                  "Fair Market Value" of any Person at any time shall mean the
sum of (I) an amount equal to (i)(x) Consolidated EBITDA for the most recently
ended two fiscal quarters of

                                      -81-
<PAGE>
such Person (including cash severance payments made to employees of such Person
during such period to the extent deducted in computing Consolidated EBITDA, but
excluding the portion of such Consolidated EBITDA for such two fiscal quarter
period attributable to (x) any Real Estate Assets sold or acquired after the
first day of such two fiscal quarter period and on or prior to the date of
determination and (y) any Lease termination payments) multiplied by (y) two
minus (ii) $0.30 multiplied by the aggregate rentable square footage of all Real
Estate Assets of such Person and its Consolidated Entities at such time with the
remainder of (i) minus (ii) being divided by (iii) 9%, plus (II) such Person's
or its Consolidated Entity's aggregate Cost to acquire any Real Estate Assets
which were acquired by such Person or such Consolidated Entity after the first
day of such two fiscal quarter period and on or prior to the date of
determination, plus (III) such Person's Unconsolidated Allocation Percentage of
the aggregate Cost to acquire any Real Estate Assets which were acquired by any
Unconsolidated Entity of such Person after the first day of such two fiscal
quarter period and on or prior to the date of determination.

                  "Federal Funds Rate" shall mean, for any day, a rate per annum
equal to the weighted average of the rates on overnight Federal Funds
transactions with members of the Federal Reserve System arranged by Federal
Funds brokers, as published for such day (or, if such day is not a Business Day,
for the next preceding Business Day) by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day which is a Business Day, the
average of the quotations for such day on such transactions received by the
Administrative Agent from three Federal Funds brokers of recognized standing
selected by the Administrative Agent.

                  "Fees" shall mean all amounts payable pursuant to or referred
to in Section 3.01.

                  "Fitch" shall mean Fitch, Inc. or any successor thereto.

                  "Foreign Pension Plan" shall mean any plan, fund (including
without limitation, any superannuation fund) or other similar program
established or maintained outside the United State of America by the Borrower or
any one or more of its Subsidiaries primarily for the benefit of employees of
the Borrower or any its Subsidiaries residing outside the United States of
America, which plan, fund or similar program provides, or results in, retirement
income, the deferral of income in contemplation of retirement or payments to be
made upon termination of employment, and which plan is not subject to ERISA or
the Code.

                  "Funds From Operations" shall have the meaning provided in
accordance with resolutions adopted by the Board of Governors of the National
Association of Real Estate Investment Trust as in effect on the Effective Date.

                  "GAAP" shall mean, with respect to the Borrower, generally
accepted accounting principles in effect from time to time in the United States
as applied by the Borrower in the preparation of its consolidated financial
statements.

                  "Governmental Authority" shall mean any Federal, state or
local government or any other political subdivision thereof or agency exercising
executive, legislative, judicial, regulatory or administrative functions.

                  "Granting Lender" shall have the meaning provided in Section
13.04(b).

                                      -82-
<PAGE>

                  "Guaranteed Obligations" shall have the meaning provided in
the Subsidiary Guaranty.

                  "Hazardous Materials" shall mean (a) any petroleum or
petroleum products, radioactive materials, asbestos in any form that is friable,
urea formaldehyde foam insulation, polychlorinated biphenyls, and radon gas; (b)
any chemicals, materials or substances defined as or included in the definition
of "hazardous substances," "hazardous waste," "hazardous materials," "extremely
hazardous substances," "restricted hazardous waste," "toxic substances," "toxic
pollutants," "contaminants," or "pollutants," or words of similar import, which
are regulated under any applicable Environmental Law; and (c) any other
chemical, material or substance, the Release of which is prohibited, limited or
regulated by any Environmental Law.

                  "Highest Lawful Rate" shall mean, at any given time during
which any Obligations shall be outstanding hereunder, 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 Obligations owing under this
Agreement and any other Credit Document, under the laws of the State of New York
(or the law of any other jurisdiction whose laws may be mandatorily applicable
notwithstanding other provisions of this Agreement and the other Credit
Documents), or under applicable federal laws which may presently or hereafter be
in effect and which allow a higher maximum nonusurious interest rate than under
New York (or such other jurisdiction's) law, in any case after taking into
account, to the extent permitted by applicable law, any and all relevant
payments or charges under this Agreement and any other Credit Documents executed
in connection herewith, and any available exemptions, exceptions and exclusions.

                  "Holdings" shall mean Trizec Holdings, Inc., a Delaware
corporation formerly known as TrizecHahn Office Properties, Inc.

                  "Hollywood and Highlands Property" shall mean the 645,000
square foot retail/entertainment center located in Los Angeles California.

                  "Indebtedness" of any Person shall mean, without duplication,
(A) (i) all indebtedness of such Person for borrowed money or for the deferred
purchase price of property or services (other than trade payable or accrued
liabilities arising in the ordinary course of business which are not overdue or
which are being contested in good faith) and (ii) all indebtedness of such
Person evidenced by a note, bond, debenture or similar instrument, (B) the face
amount of all letters of credit, bankers acceptances or similar instruments
issued for the account of such Person and, without duplication, all unreimbursed
amounts drawn thereunder, (C) all Contingent Obligations of such Person, (D) all
payment obligations of such Person under any Interest Rate Protection Agreements
or Other Hedging Agreements, (E) all Indebtedness of the types described in
clause (A), (B), (C), (D), (F) or (G) of this definition secured by any Lien on
any Property owned by such Person, whether or not such Indebtedness has been
assumed by such Person (provided that, if the Person has not assumed or
otherwise become liable in respect of such Indebtedness, such Indebtedness shall
be deemed to be in an amount equal to the fair market value of the Property to
which such Lien relates as determined in good faith by such Person), (F) the
aggregate amount required to be capitalized under Capital Leases under which
such Person is the lessee and (G) all obligations of such Person to pay a
specified purchase price for goods or services, whether or not delivered or
accepted, i.e., take-or-pay and similar obliga-

                                      -83-
<PAGE>
tions. Notwithstanding the foregoing, Indebtedness shall not include any
Dividends declared but not yet paid.

                  "Initial Mortgaged Properties" shall mean each Real Estate
Asset described in Schedule III.

                  "Insurance Proceeds" shall mean all insurance proceeds,
damages, claims and rights of action and the right thereto under any insurance
policies relating to any Mortgaged Property.

                  "Insurance Requirements" means all terms of any insurance
policy required hereunder, all requirements of the issuer of any such policy,
and all orders, rules, regulations and other requirements of the National Board
of Fire Underwriters (or any other body exercising similar functions) applicable
to or affecting any Mortgaged Property or any part thereof or any use of any
Mortgaged Property or any portion thereof.

                  "Intercompany Indebtedness" shall mean any Indebtedness for
borrowed money owed by the Borrower or any of its Subsidiaries to the Borrower
or any of its Subsidiaries.

                  "Interest Determination Date" shall mean, with respect to any
Eurodollar Rate Loan, the second Business Day prior to the commencement of any
Interest Period relating to such Eurodollar Rate Loan.

                  "Interest Period" shall have the meaning provided in Section
1.09.

                  "Interest Rate Hedges" shall mean interest rate exchange,
collar, cap, swap, adjustable strike cap, adjustable strike corridor or similar
agreements issued by providers, and having terms, conditions and tenors, which
are consistent with the past practice of the Borrower and entered into by the
Borrower and/or its Subsidiaries to provide protection to, or minimize the
impact upon, the Borrower and/or its Subsidiaries of increasing floating rates
of interest applicable to Indebtedness under clause (A) of the definition of
Indebtedness.

                  "Interest Rate Protection Agreement" shall mean any interest
rate swap agreement, interest rate cap agreement, interest collar agreement,
interest rate hedging agreement or other similar agreement or arrangement.

                  "Investment Company Act" shall mean the Investment Company Act
of 1940, as amended.

                  "Investment Grade Tenant" shall mean a tenant whose long term
senior unsecured debt has received a publicly announced credit rating of at
least BBB-/Baa3 from at least two of the three Rating Agencies.

                  "Investments" shall mean all expenditures made and all
liabilities incurred (contingent or otherwise, but without duplication): (i) for
the acquisition of stock, partnership interests or other Equity Interests or for
the acquisition of Indebtedness of, or for loans, advances, capital
contributions or transfers of property to, any Person; (ii) in connection with

                                      -84-
<PAGE>
Land under Development; (iii) in connection with Land held for Development; and
(iv) for the acquisition of any other obligations of any Person.

                  "Issuing Lender" shall mean DBTCA (which, for purposes of this
definition, also shall include any lending affiliate of DBTCA, including
Deutsche Bank AG, New York Branch, which has agreed to issue Letters of Credit
under this Agreement) and any other Lender which at the request of the Borrower
and with the consent of the Administrative Agent agrees, in such Lender's sole
discretion, to become an Issuing Lender for the purpose of issuing Letters of
Credit pursuant to Section 2.

                  "Joinder Agreement" shall have the meaning provided in Section
1.05(f).

                  "Joint Venture" shall mean, as to any Person, (x) any
Subsidiary of such Person in which such Person owns less than 90% of the Equity
Interests and (y) any Unconsolidated Entity.

                  "Judgment Currency" shall have the meaning provided in Section
13.20.

                  "Judgment Currency Conversion Date" shall mean the meaning
provided in Section 13.20.

                  "Land held for Development" shall mean any unimproved Real
Estate Asset which is not Land under Development.

                  "Land under Development" shall mean any Real Estate Asset for
which the Borrower or any of its Consolidated Entities or Unconsolidated
Entities is actively pursuing construction of one or more buildings, structures
or other improvements and for which construction is proceeding to completion
without undue delay from permit denial, construction delays or otherwise, all
pursuant to such Person's ordinary course of business, provided that any such
Real Estate Asset (or, if applicable, any building, structure or other
improvement comprising a portion of any such Real Estate Asset) will no longer
be considered Land under Development when (i) a certificate of occupancy has
been issued for such Real Estate Asset (or building, structure or other
improvement thereon) or such Real Estate Asset (or building, structure or other
improvement thereon) may otherwise be lawfully occupied for its intended use and
(ii) (A) in the case of an office, industrial or flex building, such Real Estate
Asset is more than 85% leased in the aggregate (based on square footage) and
such Person is receiving rental payments from tenants leasing more than 85% of
such Real Estate Asset (based on square footage), (B) in the case of a retail
building, such Real Estate Asset is more than 85% leased in the aggregate (based
on square footage) and has had a certificate of occupancy for at least 18 months
and (C) in the case of a hotel, such Real Estate Asset has had a certificate of
occupancy for at least 18 months and is receiving guests in the ordinary course
of business. Notwithstanding the foregoing, tenant improvements (where
available) to previously constructed and/or leased Real Estate Assets shall not
be considered Land under Development. Notwithstanding the foregoing, a Real
Estate Asset whose improvements are being restored following a Casualty or
Taking shall not constitute Land Under Development.

                  "L/C Supportable Obligations" shall mean (i) obligations of
the Borrower or any of its Subsidiaries with respect to workers compensation,
surety bonds and other similar statutory

                                      -85-
<PAGE>
obligations and (ii) such other obligations of the Borrower or any of its
Subsidiaries as are permitted to exist pursuant to the terms of this Agreement.

                  "Lease" means each of the leases, licenses, concession
agreements, franchise agreements and other occupancy agreements and other
agreements demising, leasing or granting rights of possession or use or, to the
extent of the interest therein of the Mortgaged Property Owner thereof, any
sublease, subsublease, underletting or sublicense, which now or hereafter may
affect any Mortgaged Property or any part thereof or interest therein, including
any agreement relating to a loan or other advance of funds made in connection
with any such lease, license, concession agreement, franchise or other occupancy
agreement and such sublease, subsublease, underletting or sublicense, and every
amendment, restatement, supplement, consolidation or other modification of or
other agreement relating to or entered into in connection with such lease,
license, concession agreement, franchise or other occupancy agreement and such
sublease, subsublease, underletting or sublicense, and every security deposit,
letter of credit, trust agreement, guaranty or similar security for the
performance and observance of the covenants, conditions and agreements to be
performed and observed by the other party thereto, and any guaranties of leasing
commissions.

                  "Leaseholds" of any Person shall mean all the right, title and
interest of such Person as lessee or licensee in, to and under leases or
licenses of land, improvements and/or fixtures.

                  "Lease-Up Condition" shall have the meaning provided in
Section 8.13(d).

                  "Lender" shall mean each financial institution listed on
Schedule I, as well as any Person which becomes a "Lender" hereunder pursuant to
Sections 1.14 or 13.04(b).

                  "Lender Default" shall mean (i) the refusal (which has not
been retracted) or the failure of a Lender to make available its portion of any
Borrowing required to be made available by it hereunder (including any Mandatory
Borrowing) or to fund its portion of any unreimbursed payment under Section
2.04(c) or (ii) a Lender having notified in writing the Borrower and/or the
Administrative Agent that such Lender does not intend to comply with its
obligations under Section 1.01(a), 1.01(c) or 2.04, in the case of either clause
(i) or (ii) as a result of any takeover or control (including, without
limitation, as a result of the occurrence of any event of the type described in
Section 10.05 with respect to such Lender) of such Lender by any regulatory
authority or agency.

                  "Letter of Credit" shall have the meaning provided in Section
2.01(a).

                  "Letter of Credit Fee" shall have the meaning provided in
Section 3.01(b).

                  "Letter of Credit Outstandings" shall mean, at any time, the
sum of (i) the aggregate Stated Amount of all outstanding Letters of Credit at
such time and (ii) the amount of all Unpaid Drawings at such time.

                  "Letter of Credit Request" shall have the meaning provided in
Section 2.03(a).

                                      -86-
<PAGE>
                  "Lien" shall mean any mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other),
security interest, preference, priority or other security agreement of any kind
or nature whatsoever (including, without limitation, any conditional sale or
other title retention agreement, any financing or similar statement or notice
filed under the UCC or any other similar recording or notice statute, and any
lease having substantially the same effect as any of the foregoing).

                  "Loan" shall mean each Revolving Loan and each Swingline Loan.

                  "Mandatory Borrowing" shall have the meaning provided in
Section 1.01(c).

                  "Margin Stock" shall have the meaning provided in Regulation
U.

                  "Material Adverse Effect" shall mean (i) any material adverse
effect on the business, operations, property, assets, liabilities or condition
(financial or otherwise) of the Borrower and its Subsidiaries taken as a whole,
or (ii) any material adverse effect (x) on the rights or remedies of the Lenders
or the Administrative Agent hereunder or under any other Credit Document or (y)
on the ability of the Credit Parties taken as a whole to perform their
obligations to the Lenders or the Administrative Agent hereunder or under the
other Credit Documents.

                  "Material Leases" shall mean, with respect to each Mortgaged
Property, a collective reference to (i) any one or more Leases at such Mortgaged
Property which, either individually or in the aggregate, demise 20,000 or more
square feet of space to a single Tenant and/or its Affiliates, plus (ii) any one
or more other Leases at such Mortgaged Property as selected by the Borrower
which, together with the Leases described in clause (i) of this definition, in
the aggregate demise 70% or more of the aggregate space under lease at such
Mortgaged Property.

                  "Maturity Date" shall mean December 12, 2004.

                  "Maximum Permitted Debt Amount" applicable to any Secured
Indebtedness shall mean that aggregate principal amount which does not exceed
75% of (i) in the case of any Land held for Development, the total costs to
acquire such Land held for Development, and (ii) in the case of Land under
Development, the total Development Costs expected to be incurred with respect to
such Land under Development based on reasonable projections and assumptions
prepared by the respective Borrower; provided, however, that the foregoing
percentage may be increased to 90% for any Land held for Development or Land
under Development to the extent that the respective obligor of the related
Secured Indebtedness has entered into leases with one or more Investment Grade
Tenants whose aggregate lease terms (both as to term and economics) would be
sufficient to enable such obligor to refinance the aggregate amount of the
related Secured Indebtedness in full, determined in accordance with the
following sentence. The foregoing condition as to the ability of the aggregate
lease terms of leases with one or more Investment Grade Tenants to refinance
Secured Indebtedness in full shall be deemed satisfied if the ratio of (x) that
portion of the projected annual "Net Operating Income" for such Real Estate
Asset attributable to such leases with Investment Grade Tenants (and with such
projected Net Operating Income to be determined by the respective Borrower in
good faith using reasonable projections and assumptions and using the definition
of Net Operating Income contained herein

                                      -87-
<PAGE>

as applicable to such Real Estate Asset) to (y) an amount equal to the annual
payment (both as to principal and interest) based upon a 9.26% constant, is at
least 1.40:1.00.

                  "Maximum Swingline Amount" shall mean the lesser of (i)
$35,000,000 and (ii) the Total Commitment then in effect.

                  "Metropolitan Statistical Area" shall mean the United States
statistical area as determined by Regional Economic Information Systems and
based on total commercial real estate (office, retail and warehouse) square
footage). As of the Effective Date, the top 10 Metropolitan Statistical Areas in
order of ranking are: (1) Los Angeles, California; (2) Chicago, Illinois; (3)
Dallas, Texas; (4) New York City, New York; (5) Washington, D.C.; (6) Atlanta,
Georgia; (7) Houston, Texas; (8) Philadelphia, Pennsylvania; (9) Detroit,
Michigan; and (10) Cleveland, Ohio.

                  "Minimum Borrowing Amount" shall mean (i) in the case of
Revolving Loans maintained as Base Rate Loans, $1,000,000, (ii) in the case of
Revolving Loans maintained as Eurodollar Rate Loans, $1,000,000, and (iii) in
the case of Swingline Loans, $500,000.

                  "Moody's" shall mean Moody's Investors Service, Inc. or any
successor thereto.

                  "Mortgage" shall mean each Mortgage, Assignment of Rents and
Leases, Security Agreement and Fixture Filing executed by a Mortgage Property
Owner with respect to a Mortgaged Property substantially in the form of Exhibit
Q (with appropriate changes to reflect Applicable Laws and otherwise
appropriately completed), as the same may be amended, modified or supplemented
from time to time.

                  "Mortgage Interests" shall mean a mortgage (or similar
instrument) encumbering a Real Estate Asset and securing Indebtedness that is
owed to the Borrower or any of its Consolidated Entities, including certificates
of interests in real estate mortgage investment conduits.

                  "Mortgaged Property" shall mean a Real Estate Asset (other
than Sears Tower) that satisfies (and continues to satisfy) each of the
following conditions:

                  (i) such Real Estate Asset is an office building, industrial
         building or flex building;

                  (ii) such Real Estate Asset is located in the District of
         Columbia or in one of the states of the United States;

                  (iii) such Real Estate Asset, and the Equity Interests of the
         owner thereof, are Unencumbered;

                  (iv) Except as otherwise might be the case with respect to the
         Initial Mortgaged Properties, such Real Estate Asset is (a) owned in
         fee or (b) leased pursuant to a ground lease (x) which has a remaining
         term of at least 30 years (including, for this purpose, any renewal
         option exercisable at the sole option of the lessee thereunder with no
         veto or approval rights by the ground lessor thereof or any lender to
         such ground lessor) and (y)

                                      -88-
<PAGE>
         can be encumbered by the Liens of the Security Documents without the
         consent of the lessor thereunder and contains customary leasehold
         mortgagee protection provisions (including, without limitation, the
         right to receive notice of any ground lease default, the right to cure
         any such default and the right to a new ground lease in favor of the
         leasehold mortgagee or its designee in the event that the ground lease
         should terminate on account of a default thereunder or for any other
         reason);

                  (v) such Real Estate Asset is owned or ground leased by the
         Borrower, the Co-Borrower or another Subsidiary of the Borrower which
         is a Subsidiary Guarantor and as to any such other Subsidiary (x) the
         Borrower, the Co-Borrower or a wholly-owned subsidiary of the Borrower
         or the Co-Borrower owns not less than 90% of the Equity Interest in
         such Subsidiary and (y) the Borrower, the Co-Borrower or a Wholly-Owner
         subsidiary of the Borrower or the Co-Borrower controls all financing
         and sale decisions relating to such Subsidiary with no veto rights in
         any minority equity owner therein or any other person;

                  (vi) such Real Estate Asset is free from any material and
         adverse environmental issues;

                  (vii) such Real Estate Asset is free from any material
         structural defects (other than any such defects resulting from a
         Casualty or Taking which are being restored pursuant to Paragraphs 2
         and 3 of Schedule 8.03(c));

                  (viii) such Real Estate Asset is not Land under Development;
         and

                  (ix) such Real Estate Asset has been designated by the
         Borrower in writing to the Administrative Agent as a Real Estate Asset
         that is a Mortgaged Property.

                  "Mortgaged Property Conditions" shall mean that each of
clauses (i) through (ix) of the definition of "Mortgaged Property" are satisfied
and that the Lease-Up Condition is satisfied.

                  "Mortgaged Property Coverage Ratio" shall mean, as of any date
of determination, the ratio of (x) the Mortgaged Property NOI to (y) the Assumed
Debt Service Amount.

                  "Mortgaged Property Owner" shall mean each Credit Party that
owns or leases a Mortgaged Property.

                  "Mortgaged Property NOI" shall mean the remainder of (a) the
Net Operating Income calculated with respect to the Mortgaged Properties
(including any Excluded Mortgaged Properties) for the most recently ended two
fiscal quarters multiplied by two less (b) a $0.25 per rentable square foot per
annum reserve for all Mortgaged Properties which are office space properties and
a $0.15 per rentable square foot per annum reserve for all Mortgaged Properties
which are industrial or flex properties; provided, however, that such Net
Operating Income shall be adjusted on a Pro Forma Basis to account for any
Mortgaged Properties which were added to or removed from the Borrowing Base
during such two fiscal quarter period (or, if later, after the last day of such
period and on or prior to the date of determination); and provided, further,
that,

                                      -89-
<PAGE>
notwithstanding the foregoing, the Mortgaged Property NOI for any Real Estate
Asset owned or leased by such Person or any Consolidated Entity or
Unconsolidated Entity of such Person for less than one full fiscal quarter shall
equal the product (or, in the case of any such Real Estate Asset owned or leased
by an Unconsolidated Entity of such Person, such Person's Unconsolidated
Allocation Percentage of the product) obtained by multiplying (x) the aggregate
Cost of such Person or its Consolidated Entity or Unconsolidated Entity, as
applicable, to acquire such Real Estate Asset by (y) 9.0%.

                  "Mortgaged Property Release Notice" shall have the meaning
provided in Section 8.13(c).

                  "Multiemployer Plan" shall mean at any time an employee
pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to which
any member of the ERISA Group is then making or accruing an obligation to make
contributions or has within the preceding five plan years made contributions,
including for these purposes any Person which ceased to be a member of the ERISA
Group during such five year period.

                  "NAIC" shall mean the National Association of Insurance
Commissioners.

                  "Net Insurance/Condemnation Proceeds" shall mean all Insurance
Proceeds recovered on account of any Casualty to any Mortgaged Property or all
Condemnation Proceeds paid on account of any Taking in respect of any Mortgaged
Property, minus the reasonable cost, if any, of such recovery or payment and of
paying out such proceeds, including reasonable attorneys' fees and costs
allocable to inspecting the restoration of the related Mortgaged Property and
the plans and specifications therefor.

                  "Net Operating Income" shall mean, for any period and with
respect to the Mortgaged Properties, an amount equal to (i) the aggregate rental
and other income from the operation of all Mortgaged Properties during such
period; minus (ii) all expenses and other proper charges incurred in connection
with the operation of such Mortgaged Properties (including, without limitation,
real estate taxes, management fees, bad debt expenses and rent under ground
leases) during such period; but, in any case, before payment of or provision for
debt service charges for such period, income taxes for such period, and
depreciation, amortization, and other non-cash expenses for such period (except
that, solely for purposes of Notices of Borrowing and Section 9.14, any
adjustments for so-called "straight-line rental accounting" shall be excluded
from rental income).

                  "Non-Defaulting Lender" shall mean and include each Lender
other than a Defaulting Lender.

                  "Note" shall mean each Existing Note and each other Revolving
Note and Swingline Note.

                  "Notice of Borrowing" shall have the meaning provided in
Section 1.03(a).

                  "Notice of Conversion/Continuation" shall have the meaning
provided in Section 1.06.

                                      -90-
<PAGE>

                  "Notice Office" shall mean the office of the Administrative
Agent located at 90 Hudson Street, 5th Floor, Jersey City, New Jersey 07302,
Attention: Mary Rodwell, Telecopier Numbers: (201) 593-2308/2309/2310, Telephone
Numbers: (201) 593-2165/2163/2170, or such other office in the continental
United States or person as the Administrative Agent may hereafter designate in
writing as such to the other parties hereto.

                  "Obligation Currency" shall have the meaning provided in
Section 13.20.

                  "Obligations" shall mean all amounts owing to the
Administrative Agent, any Lender or any Issuing Lender pursuant to the terms of
this Agreement or any other Credit Document.

                  "Other Hedging Agreement" shall mean any foreign exchange
contracts, currency swap agreements, commodity agreements or other similar
agreements or arrangements designed to protect against the fluctuations in
currency values.

                  "Participant" shall have the meaning provided in Section
2.04(a).

                  "Payment Office" shall mean the office of the Administrative
Agent located at 90 Hudson Street, 5th Floor, Jersey City, New Jersey 07302,
Attention: Mary Rodwell, or such other office in the continental United States
as the Administrative Agent may hereafter designate in writing as such to the
other parties hereto.

                  "PBGC" shall mean the Pension Benefit Guaranty Corporation or
any entity succeeding to any or all of its functions under ERISA.

                  "Percentage" of any Lender at any time shall mean a fraction
(expressed as a percentage) the numerator of which is the Commitment of such
Lender at such time and the denominator of which is the Total Commitment at such
time, provided that if the Percentage of any Lender is to be determined after
the Total Commitment has been terminated, then the Percentages of the Lenders
shall be determined immediately prior (and without giving effect) to such
termination.

                  "Permitted Encumbrances" shall have the meaning provided in
Section 9.01.

                  "Permitted Holders" shall mean (x) Peter Munk and/or one or
more entities controlled by Peter Munk and (y) Trizec Canada and/or one or more
Wholly-Owned Subsidiaries of Trizec Canada so long as, in the case of this
clause (y), (i) no Person or "group" (within the meaning of Sections 13(d) and
14(d) under the Exchange Act, as in effect on the Effective Date) shall (A) have
acquired beneficial ownership of 25% or more on a fully diluted basis of the
voting and/or economic interest in the capital stock of Trizec Canada, provided
that an acquisition of such beneficial ownership by Peter Munk and/or one or
more entities controlled by Peter Munk and/or Southeastern Asset Management
shall be permitted under this clause (A) so long as the Persons described above
in this proviso do not acquire (individually, collectively or together with a
"group" (within the meaning of Section 13(d) and 14(d) of the Exchange Act, as
in effect on the Effective Date)) more than 49.9% on a fully diluted basis of
such beneficial ownership (except for such holdings of Peter Munk solely in
voting interests of the capital stock of Trizec Canada which shall be excluded
from this calculation) or (B) have obtained the power

                                      -91-
<PAGE>
(whether or not exercised) to elect a majority of the directors of Trizec Canada
other than Peter Munk and/or one or more entities controlled by Peter Munk and
(ii) the Board of Directors of Trizec Canada continue to consist of a majority
of Continuing Trizec Canada Directors.

                  "Person" shall mean any individual, partnership, joint
venture, limited liability company, firm, corporation, association, trust or
other enterprise or any government or political subdivision or any agency,
department or instrumentality thereof.

                  "Plan" shall mean any pension plan as defined in Section 3(2)
of ERISA (other than a Multiemployer Plan), which is maintained or contributed
to by (or to which there is an obligation to contribute of) any member of the
ERISA Group, and each such plan for the five-year period immediately following
the latest date on which the member of the ERISA Group maintained, contributed
to or had an obligation to contribute to such plan.

                  "Preferred Stock" as applied to the capital stock of any
Person, shall mean capital stock of such Person (other than common stock of such
Person) of any class or classes (however designed) that ranks prior, as to the
payment of dividends or as to the distribution of assets upon any voluntary or
involuntary liquidation, dissolution or winding up of such Person, to shares of
capital stock of any other class of such Person.

                  "Pricing Period" shall mean each period which shall commence
on the date upon which the respective officer's certificate is delivered
pursuant to Section 8.01(e) (together with the related financial statements
pursuant to Section 8.01(a)(A) or (b)(A), as the case may be) and which shall
end on the date of actual delivery of the next officer's certificates pursuant
to Section 8.01(e) (and related financial statements) or the latest date on
which such next officer's certificate (and related financial statements) is
required to be so delivered; it being understood that the first Pricing Period
commenced with the delivery of the Borrower's financial statements (and related
officer's certificate) in respect of its fiscal year ending on December 31,
2001.

                  "Prime Lending Rate" shall mean the rate which DBTCA announces
from time to time as its prime lending rate, the Prime Lending Rate to change
when and as such prime lending rate changes. The Prime Lending Rate is a
reference rate and does not necessarily represent the lowest or best rate
actually charged to any customer. DBTCA may make commercial loans or other loans
at rates of interest at, above or below the Prime Lending Rate.

                  "Pro Forma Basis" shall mean, in connection with any
calculation of (a) compliance with Section 9.02(a)(ii)(z), (b) Consolidated
Total Asset Value and (c) Mortgaged Property NOI, the calculation thereof after
giving effect on a pro forma basis to the sale or acquisition of any Real Estate
Asset after the first day of the relevant Test Period and on or prior to the
date of determination, with the following rules to apply in connection
therewith:

                 (i) in making any determination of Fair Market Value, pro forma
         effect shall be given to (A) any sale of any Real Estate Asset
         consummated after the first day of the relevant two fiscal quarter
         period and on or prior to the date of determination as if such sale was
         consummated on the first day of the relevant two fiscal quarter period,
         and (B) the acquisition of any Real Estate Asset after the first day of
         the relevant two fiscal quarter

                                      -92-
<PAGE>
         period and on or prior to the date of determination as provided in the
         definition of Fair Market Value; and

                (ii) in making any determination of Mortgaged Property NOI, pro
         forma effect shall be given to (A) the addition of any other Mortgaged
         Property to the Borrowing Base after the first day of the relevant Test
         Period and on or prior to the date of determination as if such addition
         occurred on the first day of the relevant Test Period, and (B) the
         removal of any Mortgaged Property from the Borrowing Base after the
         first day of the relevant Test Period and on or prior to the date of
         determination as if such removal occurred on the first day of the
         relevant Test Period.

                  "Projections" shall mean the projections contained in the
Lender Information Package, dated November 2002, which were prepared by or on
behalf of the Borrower in connection with this Agreement and delivered to the
Administrative Agent and the Lenders prior to the Effective Date.

                  "Property" of a Person shall mean any and all property,
whether real, personal, tangible, intangible or mixed, of such Person, or other
assets owned, leased or operated by such Person.

                  "Property Agreements" shall mean, collectively, all covenants,
conditions and restrictions contained in any instruments, either of record or
known to Borrower or any other Credit Party, at any time in force affecting any
Mortgaged Property or any other Collateral, including any such covenants,
conditions and restrictions which may (i) require improvements, repairs or
alterations in or to any Mortgaged Property or other Collateral or (ii) in any
way limit the use and enjoyment thereof.

                  "Property Information" shall mean, with respect to any
Mortgaged Property, the following:

                  (i) a written Phase I environmental audit report (and if
         recommended by such report, a written Phase II environmental audit
         report) in favor of the Administrative Agent and prepared and certified
         by an environmental consultant satisfactory to the Administrative
         Agent;

                  (ii) a written engineering report in favor of the
         Administrative Agent and prepared and certified by an engineer
         satisfactory to the Administrative Agent;

                  (iii) an Appraisal;

                  (iv) a rent roll (as of the most current month end) and a copy
         of each Material Lease described on such rent roll;

                  (v) a year-end actual operating statement for each of the
         prior three fiscal years or, if less, for the number of fiscal years
         such Real Estate Asset was owned or leased by the Borrower or its
         Subsidiaries and/or as to which the seller thereof has delivered such
         operating statements to the Borrower or any of its Subsidiaries;

                                      -93-
<PAGE>
                  (vi) a year-to-date actual operating statement (as of the
         quarter most recently ended);

                  (vii) an operating and capital improvement budget for the
         current year;

                  (viii) all material agreements relating to property management
         and leasing;

                  (ix) all material building operation/service agreements;

                  (x) evidence reasonably satisfactory to the Administrative
         Agent of payment of all currently due tax bills, insurance payments and
         ground lease rent;

                  (xi) evidence of insurance coverage as required by this
         Agreement and evidence of flood zone and earthquake status;

                  (xii) evidence of all third party consents required to include
         such property in the Borrowing Base in accordance with the terms of
         this Agreement;

                  (xiii) ground lease, if any;

                  (xiv) the standard space lease form to be used in connection
         with the leasing of space;

                  (xv) with respect to each Additional Mortgage Property
         acquired by the Borrower or any of its Subsidiaries at the time such
         Real Estate Asset becomes an Additional Mortgaged Property, a copy (if
         available) of the acquisition agreement and other related agreements
         entered into by the Borrower or any of its Subsidiaries in connection
         with the acquisition thereof (it being agreed that, to the extent any
         of such agreements or letters of intent have not been entered into at
         such time, copies of such agreements and letters of intent shall be
         delivered reasonable promptly after the execution thereof); and

                  (xvi) to the extent not specified in clauses (i)-(xv),
         evidence of the satisfaction of the Mortgaged Property Conditions.

                  Property Information described in (A) clauses (i)-(iii) and
any other third party report included in any Property Information shall be
satisfactory in form and substance to the Administrative Agent and the Required
Lenders, and (B) clauses (iv)-(vi), (viii), (ix), (xii), (xiii) and (xv) shall
be certified to be true, complete and correct in all material respects by the
president, any vice president or a Senior Financial Officer of the Borrower.

                  "Quarterly Payment Date" shall mean the last day of each
December, March, June and September occurring after the Effective Date.

                  "Rating Agency" shall mean each of Fitch, Moody's and S&P.

                  "RCRA" shall mean the Resource Conservation and Recovery Act,
as the same may be amended from time to time, 42 U.S.C. ss. 6901 et seq.

                                      -94-
<PAGE>

                  "Real Estate Assets" of any Person shall mean all assets of
such Person constituting Real Property.

                  "Real Property" of any Person shall mean all the right, title
and interest of such Person in and to land, improvements and fixtures, including
Leaseholds.

                  "Recourse" shall mean, with respect to any Person, any
Indebtedness or other obligation or liability of any other Person all or a
portion of which is guaranteed by, or for which a recourse claim may be made
against, such first Person (whether by contract, the ownership of Equity
Interests, by operation of law or otherwise); provided, however, that personal
recourse of such first Person under any Secured Indebtedness of another Person
for fraud, misrepresentation, misapplication of cash, waste, environmental
claims and liabilities and other circumstances customarily excluded by
institutional lenders from exculpation provisions and/or included in separate
indemnification agreements in non-recourse financing of Real Estate Assets shall
not, by itself, cause such Indebtedness to be characterized as Recourse to such
first Person except to the extent that a claim is made against such first Person
as a result of any of the foregoing items described above in this proviso.

                  "Register" shall have the meaning provided in Section 13.15.

                  "Regulation D" shall mean Regulation D of the Board of
Governors of the Federal Reserve System as from time to time in effect and any
successor to all or a portion thereof establishing reserve requirements.

                  "Regulation T" shall mean Regulation T of the Board of
Governors of the Federal Reserve System as from time to time in effect and any
successor to all or a portion thereof.

                  "Regulation U" shall mean Regulation U of the Board of
Governors of the Federal Reserve System as from time to time in effect and any
successor to all or a portion thereof.

                  "Regulation X" shall mean Regulation X of the Board of
Governors of the Federal Reserve System as from time to time in effect and any
successor to all or a portion thereof.

                  "Release" shall mean disposing, discharging, injecting,
spilling, pumping, leaking, leaching, dumping, emitting, escaping, emptying,
pouring or migrating, into or upon any land or water or air, or otherwise
entering into the environment.

                  "Release Date" shall mean each date on which a Mortgaged
Property is removed from the Borrowing Base pursuant to Section 8.13(b).

                  "Rents" shall mean all rents, issues, profits, royalties,
receipts, revenues, accounts receivable, security deposits and other deposits
(subject to the prior right of Tenants making such deposits) and income,
including fixed, additional and percentage rents, occupancy charges, operating
expense reimbursements, reimbursements for increases in taxes, sums paid by
Tenants to any Mortgaged Property Owner to reimburse such Mortgaged Property
Owner for amounts originally paid or to be paid by such Mortgaged Property Owner
or its agents or affiliates for

                                      -95-
<PAGE>
which such Tenants were liable (as, for example, tenant improvements costs in
excess of any work letter, lease takeover costs, moving expenses and tax and
operating expense pass-throughs for which a Tenant is solely liable, parking,
maintenance, common area, tax, insurance, utility and service charges and
contributions, proceeds of sale of electricity, gas, heating, air-conditioning
and other utilities and services, deficiency rents and liquidated damages, and
other benefits).

                  "Reorganization" shall mean the corporate reorganization of
TrizecHahn Corporation, a publicly-traded Ontario corporation (the "Parent"),
pursuant to which, among other things, a newly incorporated company exchanged
shares of common stock of the Borrower for shares of the Parent held by certain
shareholders of the Parent and such company and its newly incorporated parent
exchanged shares of such newly incorporated parent for shares of the Parent held
by other shareholders of the Parent and the final result of which was that the
Borrower became a publicly traded real estate investment trust.

                  "Replaced Lender" shall have the meaning provided in Section
1.14.

                  "Replacement Lender" shall have the meaning provided in
Section 1.14.

                  "Reportable Event" shall mean any event described in Section
4043(c) of ERISA with respect to a Plan other than those events as to which the
30-day notice is waived under subsection .22, .23, .25, .27 or .28 of PBGC
Regulation Section 4043.

                  "Required Lenders" shall mean Non-Defaulting Lenders the sum
of whose Commitments (or after the termination thereof, outstanding Loans and
Percentages of (x) outstanding Swingline Loans and (y) Letter of Credit
Outstandings) represent an amount equal to at least 662/3 % of the Total
Commitment less the Commitments of all Defaulting Lenders (or after the
termination thereof, the sum of the then total outstanding Loans of all
Non-Defaulting Lenders and the aggregate Percentages of all Non-Defaulting
Lenders of the total (x) outstanding Swingline Loans and (y) Letter of Credit
Outstandings at such time).

                  "Restricted Holding" shall have the meaning provided in
Section 9.06.

                  "Restricted Property" shall have the meaning provided in
Section 9.01.

                  "Retail Property" shall mean any Real Estate Asset the space
in which is leased or intended to be leased primarily to retail tenants.

                  "Revolving Loan" shall have the meaning provided in Section
1.01(a).

                  "Revolving Note" shall have the meaning provided in Section
1.05(a).

                  "S&P" shall mean Standard & Poor's Ratings Service, a division
of The McGraw- Hill Companies, Inc.

                  "Sears Tower" shall mean the Real Estate Asset located in
Chicago, Illinois and known as The Sears Tower.

                                      -96-
<PAGE>
                  "Sears Tower Memorandum" shall mean the memorandum dated
November 14, 2002 and supplemented December 18, 2002 from Piper Rudnick to the
Administrative Agent and the Lenders.

                  "SEC" shall have the meaning provided in Section 8.01(g).

                  "Section 4.04(b)(ii) Certificate" shall have the meaning
provided in Section 4.04(b)(ii).

                  "Section 9.14 Default" shall have the meaning provided in
Section 4.03(b)(i).

                  "Secured Indebtedness" of any Person shall mean any
Indebtedness of such Person that is secured by a Lien evidenced by a mortgage,
deed of trust, security agreement, pledge agreement or other similar security
interest on Property of such Person.

                  "Securities Act" shall mean the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder.

                  "Security Agreement" shall mean the Security Agreement
executed by the Mortgaged Property Owners with respect to the Collateral
substantially in the form of Exhibit R (and appropriately completed), as the
same may be amended, modified or supplemented from time to time.

                  "Security Documents" means, collectively, the Mortgages, the
Assignments of Rents and Leases, the Security Agreement, all other mortgages,
security agreements, pledge agreements, assignments and all other instruments or
documents (including UCC-1 financing statements, fixture filings, amendments of
financing statements or similar documents required or advisable in order to
create, perfect or maintain the Liens intended to be created by the Security
Documents) delivered by any Person pursuant to this Agreement or any of the
other Credit Documents, whether such delivery is prior to, contemporaneous with
or after delivery of this Agreement, in order to grant to the Administrative
Agent Liens on Property of that Person, and to maintain such Liens, as each of
the foregoing may be amended, modified or supplemented from time to time.
Security Documents do not include this Agreement or the Notes.

                  "Senior Financial Officer" of any Person shall mean the chief
financial officer or treasurer of such Person.

                  "Signing Lenders" shall have the meaning provided in Section
13.23.

                  "Situs State" shall have the meaning provided in Section
13.08.

                  "SPC" shall have the meaning provided in Section 13.04(b).

                  "Specified Default" shall mean any Default under Section 10.01
or 10.05.

                  "Start Date" shall mean, with respect to any Pricing Period,
the first day of such Pricing Period.

                                      -97-
<PAGE>

                  "Stated Amount" of each Letter of Credit shall mean, at any
time, the maximum amount available to be drawn thereunder (in each case
determined without regard to whether any conditions to drawing could then be
met).

                  "Subordination Agreement" shall have the meaning specified in
Section 5.10.

                  "Subsidiaries Guaranty" shall have the meaning provided in
Section 5.07.

                  "Subsidiary" shall mean, as to any Person, (i) any corporation
more than 50% of whose stock of any class or classes having by the terms thereof
ordinary voting power to elect a majority of the directors of such corporation
(irrespective of whether or not at the time stock of any class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person and/or one or
more Subsidiaries of such Person, (ii) any partnership, association, joint
venture or other entity in which such Person and/or one or more Subsidiaries of
such Person has more than a 50% equity interest at the time, and (iii) to the
extent not otherwise included in preceding clauses (i) and (ii), any
Consolidated Entity of such Person.

                  "Subsidiary Guarantor" shall mean (i) Holdings, (ii) each
Mortgaged Property Owner, (iii) TRE, and (iv) each direct Subsidiary of the
Borrower (or the Co-Borrower if formed) which is described in Section 8.13(f).

                  "Survey" means, with respect to any Mortgaged Property, a
current survey prepared by a surveyor licensed in the state in which such
Mortgaged Property is located, reasonably acceptable to the Administrative
Agent, which shall (i) contain the legal description of such Mortgaged Property,
(ii) conform, and be certified by such surveyor to the Administrative Agent and
the Lenders and the Title Company as conforming, to the Minimum Standard Detail
Requirements for ALTA/ACSM Land Title Surveys for urban survey class as adopted
by ALTA and American Congress on Surveying & Mapping in 1999, and (iii) includes
Items 1, 2, 3, 4, 6, 7(a), 7(b1), (7) (c), 8, 9, 10, 11(a), 14 and 16 in Table A
contained in such Minimum Standard Detail Requirements; provided, however, that
the survey need not satisfy the requirements of the preceding clauses (ii) and
(iii) if the Title Company has eliminated the survey exception from the Title
Policies and all other exceptions to the Title Policies based upon such survey
are acceptable to the Administrative Agent in its sole discretion. Any such
survey shall contain a certification by such surveyor to the Lenders stating
whether the Mortgaged Property is located in an area having special flood
hazards as identified by the Federal Emergency Management Agency.

                  "Swingline Expiry Date" shall mean the date falling seven
Business Days prior to the Maturity Date.

                  "Swingline Lender" shall mean DBTCA.

                  "Swingline Loan" shall have the meaning provided in Section
1.01(b).

                  "Swingline Note" shall have the meaning provided in Section
1.05(a).

                                      -98-
<PAGE>

                  "Taking" shall mean the taking or appropriation (including by
deed in lieu of condemnation or by voluntary sale or transfer under threat of
condemnation or while legal proceedings for condemnation are pending) of a
Mortgaged Property, or any part thereof or interest therein, for public or
quasi-public use under the power of eminent domain, by reason of any public
improvement or condemnation proceeding, or in any other manner or any damage or
injury or diminution in value through condemnation, inverse condemnation or
other exercise of the power of eminent domain. The term "Taken" used as a verb
has a correlative meaning.

                  "Tax Benefit" shall have the meaning provided in Section
4.04(a).

                  "Taxes" shall have the meaning provided in Section 4.04(a).

                  "Temporary Guarantor" shall mean TrizecHahn Holdings Ltd., a
New Brunswick corporation.

                  "Temporary Guaranty" shall mean the guaranty of the Temporary
Guarantor pursuant to Section 14 of the Existing Agreement.

                  "Tenant" shall mean any Person liable by contract or otherwise
to pay rent or a percentage of income, revenue or profits pursuant to a Lease,
and includes a tenant, subtenant, lessee and sublessee.

                  "Test Date" shall mean, with respect to any Start Date, the
last day of the most recent fiscal quarter of the Borrower ended immediately
prior to such Start Date.

                  "Test Period" shall mean, for any Person, each period of four
consecutive completed fiscal quarters of such Person (or each case taken as one
accounting period); provided, however, for purposes of calculating Net Operating
Income only insofar as Net Operating Income is used to compute Mortgaged
Property NOI, such Test Period instead shall be the most .recently ended two
completed fiscal quarters of such Person.

                  "Title Company" means (i) on or prior to the Effective Date,
First America Title Insurance Company and (ii) after the Effective Date, First
America Title Insurance Company or such other title company as may be selected
by the Borrower and approved by the Administrative Agent in its reasonable
discretion.

                  "Title Policies" means, with respect to the Mortgaged
Properties, the paid lender policies of title insurance in the form of loan
policy available in the applicable state and reasonably acceptable to the
Administrative Agent, and issued by the Title Company.

                  "Total Commitment" shall mean, at any time, the sum of the
Commitments of each of the Lenders.

                  "Total Unutilized Commitment" shall mean, at any time, an
amount equal to the remainder of (x) the Total Commitment at such time less (y)
the sum of the aggregate principal amount of all Revolving Loans and Swingline
Loans then outstanding plus the then aggregate amount of all Letter of Credit
Outstandings.

                                      -99-
<PAGE>

                  "TRE" shall mean Trizec R&E Holdings Inc., a Delaware
corporation formerly known as TrizecHahn Development Inc.

                  "Trizec Canada" shall mean Trizec Canada Inc., a
publicly-traded Ontario corporation.

                  "Type" shall mean the type of Loan determined with regard to
the interest option applicable thereto, i.e., whether a Base Rate Loan or a
Eurodollar Rate Loan.

                  "UCC" shall mean the Uniform Commercial Code as from time to
time in effect in the relevant jurisdiction.

                  "Unconsolidated Allocation Percentage" shall mean, for any
Person, with respect to such Person's Unconsolidated Entities the percentage
ownership interest of such Person in such Unconsolidated Entity.

                  "Unconsolidated Entity" shall mean, with respect to any
Person, at any date, any other Person in whom such Person holds an Investment,
and whose financial results would not be consolidated under GAAP with the
financial results of such Person on the consolidated financial statements of
such Person, if such statements were prepared as of such date.

                  "Unencumbered" shall mean, with respect to any Property, that
such Property is not subject to any Lien or other restrictions of the type
described in the introductory paragraph to Section 9.01 other than a Permitted
Encumbrance.

                  "Unfunded Current Liability" of any Plan shall mean the
amount, if any, by which the value of the accumulated plan benefits under the
Plan determined on a plan termination basis in accordance with actuarial
assumptions at such time consistent with those prescribed by the PBGC for
purposes of Section 4044 of ERISA, exceeds the fair market value of all plan
assets allocable to such liabilities under Title IV of ERISA (excluding any
accrued but unpaid contributions).

                  "United States" and "U.S." shall each mean the United States
of America.

                  "Unpaid Drawing" shall have the meaning provided in Section
2.05(a).

                  "Unrestricted Cash and Cash Equivalents" of any Person shall
at any time shall mean the sum of (a) the aggregate amount of all unrestricted
cash then actually held by such Person or any of its Subsidiaries (excluding
without limitation until forfeited to, or otherwise entitled to be retained by,
such Person or any of its Subsidiaries, tenant security and other restricted
deposits) and (b) the aggregate amount of all unrestricted Cash Equivalents
(valued at fair market value) then held by such Person or any of its
Subsidiaries. As used in this definition, "unrestricted" shall mean the
specified asset is not subject to any Liens in favor of any Person.

                  "Unsecured Indebtedness" of any Person shall mean any
Indebtedness of such Person that is not secured by a Lien evidenced by a
mortgage, deed of trust, security agreement, pledge agreement or other similar
security interest on any Property of such Person.

                                     -100-
<PAGE>

                  "Unutilized Commitment" shall mean, with respect to any Lender
at any time, an amount equal to the remainder of (x) such Lender's Commitment at
such time, less (y) the sum of the aggregate principal amount of all Revolving
Loans of such Lender then outstanding and such Lender's Percentage of all Letter
of Credit Outstandings at such time.

                  "Utilization Percentage" shall mean, at any time, the ratio
(expressed as a percentage) of (x) the sum of (i) the aggregate principal amount
of all Revolving Loans outstanding at such time and (ii) the aggregate amount of
all Letter of Credit Outstandings at such time to (y) the Total Commitment at
such time.

                  "Wholly-Owned Subsidiary" shall mean, as to any Person, (i)
any corporation 100% of whose capital stock (other than directors' qualifying
shares and other nominal amounts of shares required by applicable law to be held
by Persons (other than directors)) is at the time owned by such Person and/or
one or more Wholly-Owned Subsidiaries of such Person and (ii) any partnership,
limited liability company, association, joint venture or other entity in which
such Person and/or one or more Wholly-Owned Subsidiaries of such Person has a
100% Equity Interest at such time. For purposes of this definition, the
Co-Borrower if formed shall be deemed to be a Wholly-Owned Subsidiary of the
Borrower as long as the requirements of Section 8.04(b) continue to be satisfied
with respect to the Co-Borrower.

                  SECTION 12. The Administrative Agent.

                  12.01 Appointment. The Lenders hereby irrevocably designate
and appoint DBTCA as Administrative Agent to act as specified herein and in the
other Credit Documents. Each Lender hereby irrevocably authorizes, and each
holder of any Note by the acceptance of such Note shall be deemed irrevocably to
authorize, the Administrative Agent to take such action on their behalf under
the provisions of this Agreement, the other Credit Documents and any other
instruments and agreements referred to herein or therein and to exercise such
powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of the Administrative Agent by the terms hereof and
thereof and such other powers as are reasonably incidental thereto. The
Administrative Agent may perform any of its duties hereunder by or through its
respective officers, directors, agents, employees or affiliates.

                  12.02 Nature of Duties. The Administrative Agent shall not
have any duties or responsibilities except those expressly set forth in this
Agreement and in the other Credit Documents. Neither the Administrative Agent
nor any of its officers, directors, agents, employees or affiliates shall be
liable to the Lenders for any action taken or omitted by it or them hereunder or
under any other Credit Document or in connection herewith or therewith, unless
caused by its or their gross negligence or willful misconduct (as determined by
a court of competent jurisdiction in a final and non-appealable decision). The
duties of the Administrative Agent shall be mechanical and administrative in
nature; the Administrative Agent shall not have by reason of this Agreement or
any other Credit Document a fiduciary relationship in respect of any Lender or
the holder of any Note; and nothing in this Agreement or any other Credit
Document, expressed or implied, is intended to or shall be so construed as to
impose upon the Administrative Agent any obligations in respect of this
Agreement or any other Credit Document except as expressly set forth herein or
therein.

                                     -101-
<PAGE>
                  12.03 Lack of Reliance on the Administrative Agent.
Independently and without reliance upon the Administrative Agent, each Lender
and the holder of each Note, to the extent it deems appropriate, has made and
shall continue to make (i) its own independent investigation of the financial
condition and affairs of the Credit Parties and their respective Subsidiaries in
connection with the making and the continuance of the Loans, the issuance of and
participation in Letters of Credit and the taking or not taking of any action in
connection herewith and (ii) its own appraisal of the creditworthiness of the
Credit Parties and their respective Subsidiaries and, except as expressly
provided in this Agreement, the Administrative Agent shall not have any duty or
responsibility, either initially or on a continuing basis, to provide any Lender
or the holder of any Note with any credit or other information with respect
thereto, whether coming into its possession before the making of the Loans or at
any time or times thereafter. The Administrative Agent shall not be responsible
to any Lender or the holder of any Note for any recitals, statements,
information, representations or warranties herein or in any document,
certificate or other writing delivered in connection herewith or for the
execution, effectiveness, genuineness, validity, enforceability, perfection,
collectibility, priority or sufficiency of this Agreement or any other Credit
Document or the financial condition of the Credit Parties or any of their
respective Subsidiaries or be required to make any inquiry concerning either the
performance or observance of any of the terms, provisions or conditions of this
Agreement or any other Credit Document, or the financial condition of the Credit
Parties or any of their respective Subsidiaries or the existence or possible
existence of any Default or Event of Default.

                  12.04 Certain Rights of the Administrative Agent. The
Administrative Agent shall have the right to request instructions from the
Required Lenders at any time. If the Administrative Agent shall request
instructions from the Required Lenders with respect to any act or action
(including failure to act) in connection with this Agreement or any other Credit
Document, the Administrative Agent shall be entitled to refrain from such act or
taking such action unless and until the Administrative Agent shall have received
instructions from the Required Lenders; and the Administrative Agent shall not
incur liability to any Person by reason of so refraining. Without limiting the
foregoing, no Lender or the holder of any Note shall have any right of action
whatsoever against the Administrative Agent as a result of the Administrative
Agent acting or refraining from acting hereunder or under any other Credit
Document in accordance with the instructions of the Required Lenders.

                  12.05 Reliance. The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any note, writing,
resolution, notice, statement, certificate, telex, teletype or telecopier
message, cablegram, radiogram, order or other document or telephone message
signed, sent or made by any Person that the Administrative Agent believed to be
the proper Person, and, with respect to all legal matters pertaining to this
Agreement and any other Credit Document and its duties hereunder and thereunder,
upon advice of counsel selected by the Administrative Agent (which may be
counsel for any of the Credit Parties) and, with respect to other matters, upon
advice of independent public accountants or other experts selected by it.

                  12.06 Indemnification. To the extent the Administrative Agent
is not reimbursed and indemnified by the Credit Parties, the Lenders will
reimburse and indemnify the Administrative Agent, in proportion to their
respective "percentages" as used in determining the Required Lenders, for and
against any and all liabilities, obligations, losses, damages, penalties,
claims, actions, judgments, costs, expenses or disbursements of whatsoever kind
or nature which may be

                                     -102-
<PAGE>
imposed on, asserted against or incurred by the Administrative Agent in
performing its respective duties hereunder or under any other Credit Document,
in any way relating to or arising out of this Agreement or any other Credit
Document; provided that no Lender shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from the Administrative Agent's gross
negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision).

                  12.07 The Administrative Agent in its Individual Capacity.
With respect to its obligation to make Loans, or issue or participate in Letters
of Credit, under this Agreement, the Administrative Agent shall have the rights
and powers specified herein for a "Lender" and may exercise the same rights and
powers as though it were not performing the duties specified herein; and the
term "Lenders," "Required Lenders," "holders of Notes" or any similar terms
shall, unless the context clearly otherwise indicates, include the
Administrative Agent in its individual capacity. The Administrative Agent may
accept deposits from, lend money to, and generally engage in any kind of
banking, investment banking, advisory, trust or other business with any Credit
Party or any Affiliate of a Credit Party as if it were not performing the duties
specified herein, and may accept fees and other consideration from any Credit
Party for services in connection with this Agreement and otherwise without
having to account for the same to the Lenders.

                  12.08 Holders. The Administrative Agent may deem and treat the
payee of any Note as the owner thereof for all purposes hereof unless and until
a written notice of the assignment, transfer or endorsement thereof, as the case
may be, shall have been filed with the Administrative Agent. Any request,
authority or consent of any Person who, at the time of making such request or
giving such authority or consent, is the holder of any Note shall be conclusive
and binding on any subsequent holder, transferee, assignee or indorsee, as the
case may be, of such Note or of any Note or Notes issued in exchange therefor.

                  12.09 Resignation by the Administrative Agent; Removal of the
Administrative Agent. (a) The Administrative Agent may resign from the
performance of all its functions and duties hereunder and/or under the other
Credit Documents at any time by giving 15 Business Days' prior written notice to
the Lenders and the Borrower. Such resignation shall take effect upon the
appointment of a successor Administrative Agent pursuant to clauses (b) and (c)
below or as otherwise provided below.

                  (b) Upon any such notice of resignation, the Required Lenders
shall appoint a successor Administrative Agent hereunder or thereunder which
shall be a commercial bank or trust company reasonably acceptable to the
Borrower.

                  (c) If a successor Administrative Agent shall not have been so
appointed within such 15 Business Day period, the Administrative Agent, with the
consent of the Borrower (which consent shall not be unreasonably withheld or
delayed), shall then appoint a successor Administrative Agent which shall serve
as Administrative Agent hereunder or thereunder until such time, if any, as the
Required Lenders appoint a successor Administrative Agent as provided above.

                                     -103-
<PAGE>

                  (d) If no successor Administrative Agent has been appointed
pursuant to clause (b) or (c) above by the 20th Business Day after the date such
notice of resignation was given by the Administrative Agent, the Administrative
Agent's resignation shall become effective and the Required Lenders shall
thereafter perform all the duties of the Administrative Agent hereunder and/or
under any other Credit Document until such time, if any, as the Required Lenders
appoint a successor Administrative Agent as provided above.

                  (e) Upon resignation of the Administrative Agent pursuant to
this Section 12.09, the Administrative Agent shall remain indemnified to the
extent provided in this Agreement and the other Credit Documents and the
provisions of this Section 12 shall continue in effect for the benefit of such
Administrative Agent for all of its actions and inactions while serving as the
Administrative Agent.

                  (f) In addition, the Required Lenders shall have the right to
remove the Administrative Agent and appoint a successor Administrative Agent who
shall be a commercial bank or trust company reasonably acceptable to the
Borrower in the event that the Administrative Agent has been grossly negligent
or has willfully misconducted itself in performing its functions and duties
under this Agreement.

                  SECTION 13. Miscellaneous.

                  13.01 Payment of Expenses, etc. The Borrower shall: (i)
whether or not the transactions herein contemplated are consummated, pay all
reasonable out-of-pocket costs and expenses of (A) the Administrative Agent and
its affiliates (including, without limitation, the reasonable fees and
disbursements of White & Case LLP) in connection with the preparation, execution
and delivery of this Agreement and the other Credit Documents and the documents
and instruments referred to herein and therein, any addition of a Real Estate
Asset to, or removal of a Mortgaged Property from, the Borrowing Base, and any
amendment, waiver or consent relating to this Agreement, the other Credit
Documents or the documents and instruments referred to herein and therein, (B)
the Administrative Agent and its affiliates in connection with their syndication
efforts (including, without limitation, printing, distribution and meetings)
with respect to this Agreement and (C) the Administrative Agent and its
affiliates and, after the occurrence of an Event of Default, each of the Lenders
in connection with the enforcement of this Agreement and the other Credit
Documents and the documents and instruments referred to herein and therein or in
connection with any refinancing or restructuring of the credit arrangements
provided under this Agreement in the nature of a "workout" or pursuant to any
insolvency or bankruptcy proceedings (including, in each case in respect of
preceding clauses (A), (B) and (C) without limitation, (x) the reasonable fees
and disbursements of counsel and consultants for the Administrative Agent and
its affiliates (it being understood that, for purposes of this clause (i), the
Administrative Agent and its affiliates shall be entitled to be reimbursed for
one primary counsel and one local counsel in each Situs State and, to the extent
that the Administrative Agent in its good faith reasonable discretion determines
that additional counsel is necessary or advisable, for one single additional
foreign counsel in each jurisdiction in which the Administrative Agent has made
such a determination) and (y) after the occurrence of an Event of Default, also
the reasonable fees and disbursements of only one counsel for the other Lenders
as a group); (ii) pay and hold the Administrative Agent and each of the Lenders
harmless from and against any and all present and future stamp, excise and other
similar documentary taxes with

                                     -104-
<PAGE>
respect to the foregoing matters and save the Administrative Agent and each of
the Lenders harmless from and against any and all liabilities with respect to or
resulting from any delay or omission (other than to the extent attributable to
the Administrative Agent or such Lender) to pay such taxes; and (iii) indemnify
the Administrative Agent and each Lender, and each of their respective
affiliates officers, directors, employees, representatives and agents from and
hold each of them harmless against any and all liabilities, obligations
(including removal or remedial actions), losses, damages, penalties, claims,
actions, judgments, suits, costs, expenses and disbursements (including
reasonable attorneys' and consultants' fees and disbursements) incurred by,
imposed on or assessed against any of them as a result of, or arising out of, or
in any way related to, or by reason of, (a) any investigation, litigation or
other proceeding (whether or not the Administrative Agent or any Lender is a
party thereto and whether or not such investigation, litigation or other
proceeding is brought by or on behalf of any Credit Party) related to the
entering into and/or performance of this Agreement or any other Credit Document
or the proceeds of any Loans hereunder or the consummation of any transactions
contemplated herein or in any other Credit Document or the exercise of any of
their rights or remedies provided herein or in the other Credit Documents, or
(b) the actual or alleged presence of Hazardous Materials in the air, surface,
water or groundwater or on the surface or subsurface of any Real Property at any
time owned, leased or operated by any of the Credit Parties or any of their
respective Subsidiaries, the generation, storage, transportation, handling or
disposal of Hazardous Materials by any of the Credit Parties or any of their
respective Subsidiaries at any location, whether or not owned, leased or
operated by any of the Credit Parties or any of their respective Subsidiaries,
the non-compliance of any Real Property at any time owned, leased or operated by
any of the Credit Parties or any of their respective Subsidiaries with foreign,
federal, state and local laws, regulations, and ordinances (including applicable
permits thereunder) applicable to such Real Property, or any Environmental Claim
asserted against any of the Credit Parties, any of their respective Subsidiaries
or any Real Property at any time owned, leased or operated by any of the Credit
Parties or any of their respective Subsidiaries, including, in each case,
without limitation, the reasonable fees and disbursements of counsel and other
consultants incurred in connection with any such investigation, litigation or
other proceeding (but excluding any losses, liabilities, claims, damages or
expenses to the extent incurred by reason of the gross negligence or willful
misconduct of the Person to be indemnified (as determined by a court of
competent jurisdiction in a final and non-appealable decision)). In addition,
the foregoing indemnification in favor of any director, officer, employee,
representative or agent of the Administrative Agent or any Lender shall be
solely in their respective capacities as such director, officer, employee,
representative or agent. To the extent that the undertaking to indemnify, pay or
hold harmless the Administrative Agent, any Lender or any other indemnified
person set forth in the preceding sentence may be unenforceable because it is
violative of any law or public policy, the Borrower shall make the maximum
contribution to the payment and satisfaction of each of the indemnified
liabilities which is permissible under applicable law.

                  13.02 Right of Setoff.(a) In addition to any rights now or
hereafter granted under applicable law or otherwise, and not by way of
limitation of any such rights, upon the occurrence of an Event of Default, the
Administrative Agent and each Lender is hereby authorized at any time or from
time to time, without presentment, demand, protest or other notice of any kind
to any Credit Party or to any other Person, any such notice being hereby
expressly waived, to set off and to appropriate and apply any and all deposits
(general or special) and any other Indebtedness at any time held or owing by
such Lender (including, without limitation, by

                                     -105-
<PAGE>
branches and agencies of the Administrative Agent or such Lender wherever
located) to or for the credit or the account of any Credit Party against and on
account of the Obligations and liabilities of the Credit Parties to the
Administrative Agent or such Lender under this Agreement or under any of the
other Credit Documents, including, without limitation, all interests in
Obligations purchased by such Lender pursuant to Section 13.06(b), and all other
claims of any nature or description arising out of or connected with this
Agreement or any other Credit Document, irrespective of whether or not such
Lender shall have made any demand hereunder and although said Obligations,
liabilities or claims, or any of them, shall be contingent or unmatured.

                  (b) NOTWITHSTANDING THE FOREGOING SECTION 13.02(a), AT ANY
TIME THAT THE LOANS OR ANY OTHER OBLIGATIONS SHALL BE SECURED BY REAL PROPERTY
LOCATED IN CALIFORNIA, NO LENDER OR THE ADMINISTRATIVE AGENT SHALL EXERCISE A
RIGHT OF SETOFF, LIEN OR COUNTERCLAIM OR TAKE ANY COURT OR ADMINISTRATIVE ACTION
OR INSTITUTE ANY PROCEEDING TO ENFORCE ANY PROVISION OF THIS AGREEMENT OR ANY
NOTE UNLESS IT IS TAKEN WITH THE CONSENT OF THE REQUIRED LENDERS OR, TO THE
EXTENT REQUIRED BY SECTION 13.12 OF THIS AGREEMENT, ALL OF THE LENDERS, OR
APPROVED IN WRITING BY THE ADMINISTRATIVE AGENT, IF SUCH SETOFF OR ACTION OR
PROCEEDING WOULD OR MIGHT (PURSUANT TO SECTIONS 580a, 580b, 580d AND 726 OF THE
CALIFORNIA CODE OF CIVIL PROCEDURE OR SECTION 2924 OF THE CALIFORNIA CIVIL CODE,
IF APPLICABLE, OR OTHERWISE) AFFECT OR IMPAIR THE VALIDITY, PRIORITY, OR
ENFORCEABILITY OF THE LIENS GRANTED TO THE ADMINISTRATIVE AGENT PURSUANT TO THE
SECURITY DOCUMENTS OR THE ENFORCEABILITY OF THE NOTES AND OTHER OBLIGATIONS
HEREUNDER, AND ANY ATTEMPTED EXERCISE BY ANY LENDER OR THE ADMINISTRATIVE AGENT
OF ANY SUCH RIGHT WITHOUT OBTAINING SUCH CONSENT SHALL BE NULL AND VOID. THIS
SECTION 13.02(b) SHALL BE SOLELY FOR THE BENEFIT OF EACH OF THE LENDERS AND THE
ADMINISTRATIVE AGENT.

                  13.03 Notices. Except as otherwise expressly provided herein,
all notices and other communications provided for hereunder shall be in writing
(including telex or telecopier) and mailed, telexed, telecopied or delivered: if
to any Credit Party, at the address specified opposite such Credit Party's
signature below or as provided in the Subsidiaries Guaranty, as the case may be;
if to any Lender, at its address specified on Schedule II; and if to the
Administrative Agent, at the Notice Office; or, as to the Borrower, any other
Credit Party or the Administrative Agent, at such other address as shall be
designated by such party in a written notice to the other parties hereto and, as
to each Lender, at such other address as shall be designated by such Lender in a
written notice to the Borrower and the Administrative Agent. All such notices
and communications shall, when mailed, telexed or telecopied, or sent by
overnight courier, be effective (x) three Business Days after deposited in the
mails, (y) one Business Day after delivered to a recognized overnight courier,
as the case may be, or (z) when sent by telex or telecopier, except that notices
and communications to the Administrative Agent and the Borrower shall not be
effective until received by the Administrative Agent or the Borrower, as the
case may be.

                                     -106-
<PAGE>
                  13.04 Benefit of Agreement; Assignments; Participations. (a)
This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the respective successors and assigns of the parties hereto;
provided, however, the Credit Parties may not assign or transfer any of their
respective rights, obligations or interest hereunder without the prior written
consent of the Lenders and, provided further, that, although any Lender may
transfer, assign or grant participations in its rights hereunder, such Lender
shall remain a "Lender" for all purposes hereunder and the transferee, assignee
or participant, as the case may be, shall not constitute a "Lender" hereunder
and, provided further, that no Lender shall transfer or grant any participation
under which the participant shall have rights to approve any amendment to or
waiver of this Agreement or any other Credit Document except to the extent such
amendment or waiver would (i) extend the final scheduled maturity of any Loan,
Note or Letter of Credit (unless such Letter of Credit is not extended beyond
the Maturity Date) in which such participant is participating, or reduce the
rate or extend the time of payment of interest or Fees thereon (except in
connection with a waiver of applicability of any post-default increase in
interest rates) or reduce the principal amount thereof (it being understood that
any amendment or modification to the financial definitions in this Agreement or
to Section 13.07(a) shall not constitute a reduction in the rate of interest or
Fees payable hereunder), or increase the amount of the participant's
participation over the amount thereof then in effect (it being understood that a
waiver of any Default or Event of Default or of a mandatory reduction in the
Total Commitment shall not constitute a change in the terms of such
participation, and that an increase in any Commitment (or the available portion
thereof) or Loan shall be permitted without the consent of any participant if
the participant's participation is not increased as a result thereof) or (ii)
consent to the assignment or transfer by the Borrower or the Co-Borrower if
formed of any of their respective rights and obligations under this Agreement.
In the case of any such participation, the participant shall not have any rights
under this Agreement or any of the other Credit Documents (the participant's
rights against such Lender in respect of such participation to be those set
forth in the agreement executed by such Lender in favor of the participant
relating thereto) and all amounts payable by the Borrower hereunder shall be
determined as if such Lender had not sold such participation.

                  (b) Notwithstanding the foregoing, any Lender (or any Lender
together with one or more other Lenders) may (x) assign all or a portion of its
Commitments and related outstanding Obligations hereunder to (i)(A) its parent
company and/or any affiliate of such Lender which is at least 50% owned by such
Lender or its parent company or (B) to one or more other Lenders or any
affiliate of any such other Lender which is at least 50% owned by such other
Lender or its parent company (provided that any fund that invests in loans and
is managed or advised by the same investment advisor of another fund which is a
Lender (or by an Affiliate of such investment advisor) shall be treated as an
affiliate of such other Lender for the purposes of this sub-clause (x)(i)(B)),
or (ii) in the case of any Lender that is a fund that invests in loans, any
other fund that invests in loans and is managed or advised by the same
investment advisor of such Lender or by an Affiliate of such investment advisor,
or (y) assign all, or if less than all, a portion equal to at least $5,000,000
in the aggregate for the assigning Lender or assigning Lenders (provided that,
in the case of an assignment pursuant to this clause (y) at a time when no
Specified Default or Event of Default exists, to the extent that the assignor
Lender is to retain a Commitment after giving effect to such assignment, such
Commitment shall be in an amount equal to at least $5,000,000), of such
Commitment or Commitments and/or outstanding Obligations hereunder to one or
more Eligible Transferees, each of which assignees shall become a party to this
Agreement as a Lender by execution of an Assignment and Assumption

                                     -107-
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Agreement, provided that (i) at such time Schedule I shall be deemed modified to
reflect the Commitments of such new Lender and of the existing Lenders, (ii)
upon the surrender of the Note or Notes by the assigning Lender (or, upon such
assigning Lender's indemnifying the Borrower for any lost Note pursuant to a
customary indemnification agreement) new Notes will be issued, at the Borrower's
expense, to such new Lender and to the assigning Lender upon the request of such
new Lender or assigning Lender, such new Notes to be in conformity with the
requirements of Section 1.05 (with appropriate modifications) to the extent
needed to reflect the revised Commitments and/or outstanding Loans, (iii) the
written consent of the Administrative Agent and, unless a Default or an Event of
Default then exists, the Borrower (each of which consents shall not be
unreasonably withheld or delayed) shall be required in connection with any
assignment to an Eligible Transferee pursuant to clause (y) above, (iv) the
Administrative Agent shall receive at the time of each such assignment, from the
assigning or assignee Lender, the payment of a non-refundable assignment fee of
$3,500, and (v) promptly after such assignment, the Borrower shall have received
from the Administrative Agent notice of any such assignment and of the identity,
nationality and applicable lending office of any such Eligible Transferee that
is not a United States person (as defined in Section 7701(a)(30) of the Code),
together with the copy of the Assignment and Assumption Agreement relating
thereto and, provided further, that such transfer or assignment will not be
effective until recorded by the Administrative Agent on the Register pursuant to
Section 13.15. To the extent of any assignment pursuant to this Section
13.04(b), the assigning Lender shall be relieved of its obligations hereunder
with respect to its assigned Commitment and/or outstanding Loans. At the time of
each assignment pursuant to this Section 13.04(b) to a Person which is not
already a Lender hereunder and which is not a United States person (as such term
is defined in Section 7701(a)(30) of the Code) for Federal income tax purposes,
the respective assignee Lender shall, to the extent legally entitled to do so,
provide to the Borrower the appropriate Internal Revenue Service Forms (and, if
applicable, a Section 4.04(b)(ii) Certificate) described in Section 4.04(b). To
the extent that an assignment of all or any portion of a Lender's Commitment and
related outstanding Obligations pursuant to Section 1.14 or this Section
13.04(b) would, at the time of such assignment, result in increased costs under
Section 1.10 or 4.04 in excess of those being charged by the respective
assigning Lender prior to such assignment, then the Borrower shall not be
obligated to pay such excess increased costs (although the Borrower, in
accordance with and pursuant to the other provisions of this Agreement, shall be
obligated to pay the costs which are not in excess of those being charged by the
respective assigning Lender prior to such assignment and any subsequent
increased costs of the type described above resulting from changes after the
date of the respective assignment). Notwithstanding anything to the contrary
contained herein, any Lender (a "Granting Lender") may grant to a special
purpose funding vehicle ("SPC"), identified as such in writing from time to time
by the Granting Lender to the Administrative Agent and the Borrower, the option
to provide to the Borrower all or any part of any Loan that such Granting Lender
would otherwise be obligated to make to the Borrower pursuant to this Agreement,
provided that (i) such Lender's obligations under this Agreement (including,
without limitation, its Commitment hereunder) shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) the Borrower, the Administrative Agent
and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement, (iv) no SPC shall have any right to approve any amendment or waiver
of any provision of this Agreement or any Note, or any consent to any departure
by the Borrower therefrom, except to the extent that such amendment,

                                     -108-
<PAGE>
waiver or consent would reduce the principal of, or interest on, the Loans or
any fees or other amounts payable hereunder, in each case to the extent subject
to such grant of funding option, or postpone any date fixed for any payment of
principal of, or interest on, the Loans or any fees or other amounts payable
hereunder, in each case to the extent subject to such grant of funding option,
(v) nothing herein shall constitute a commitment by any SPC to make any Loan and
(vi) if an SPC elects not to exercise such option or otherwise fails to provide
all or any of such Loan, the Granting Lender shall be obligated to make such
Loan pursuant to the terms hereof. The making of a Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent and as if
such Loan were made by such Granting Lender. Each party hereto hereby agrees
that no SPC shall be liable for any indemnity or similar payment obligation
under this Agreement (all liability for which shall remain with the Granting
Lender). In furtherance of the foregoing, each party hereto hereby agrees (which
agreement shall survive the termination of this Agreement) that, prior to the
date that is one year and one day after the payment in full of all outstanding
commercial paper or other senior indebtedness of any SPC, it will not institute
against, or join any other person in instituting against, such SPC any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under the laws of the United States or any State thereof. In addition,
notwithstanding anything to the contrary contained in this Section 13.04(b), any
SPC may (i) with notice to, but without the prior written consent of, the
Borrower and the Administrative Agent and without paying any processing fee
therefor, assign all or a portion of its interests in any Loans to the Granting
Lender or to any financial institutions (consented to by the Administrative
Agent and, unless a Default or an Event of Default exists, the Borrower (which
consent shall not be unreasonably withheld or delayed)) providing liquidity
and/or credit support to or for the account of such SPC to support the funding
or maintenance of Loans and (ii) disclose on a confidential basis consistent
with the restrictions set forth in Section 13.16 any non-public information
relating to its Loans to any rating agency, commercial paper dealer or provider
of any surety, guarantee or credit or liquidity enhancement to such SPC.

                  (c) Nothing in this Agreement shall prevent or prohibit any
Lender from pledging its Loans and Notes hereunder to a Federal Reserve Bank in
support of borrowings made by such Lender from such Federal Reserve Bank and,
with prior notice to the Administrative Agent, any Lender which is a fund may
pledge all or any portion of its Notes or Loans to its trustee or to a
collateral agent providing credit or credit support to such Lender in support of
its obligations to its trustee or such collateral agent, as the case may be. No
pledge pursuant to this clause (c) shall release the transferor Lender from any
of its obligations hereunder.

                  13.05 No Waiver; Remedies Cumulative. No failure or delay on
the part of the Administrative Agent or any Lender in exercising any right,
power or privilege hereunder or under any other Credit Document and no course of
dealing between any Credit Party and the Administrative Agent or any Lender
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, power or privilege hereunder or under any other Credit Document
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege hereunder or thereunder. The rights, powers and
remedies herein or in any other Credit Document expressly provided are
cumulative and not exclusive of any rights, powers or remedies which the
Administrative Agent or any Lender would otherwise have. No notice to or demand
on any Credit Party in any case shall entitle such Credit Party to any other or
further notice or demand in similar or other circumstances or constitute a
waiver of the rights of the

                                     -109-
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Administrative Agent or any Lender to any other or further action in any
circumstances without notice or demand.

                  13.06 Payments Pro Rata. (a) Except as otherwise provided in
this Agreement, the Administrative Agent agrees that promptly after its receipt
of each payment from or on behalf of the Borrower in respect of any Obligations
hereunder, it shall distribute such payment to the Lenders (other than any
Lender that has consented in writing to waive its pro rata share of any such
payment) pro rata based upon their respective shares, if any, of the Obligations
with respect to which such payment was received.

                  (b) Each of the Lenders agrees that, if it should receive any
amount hereunder (whether by voluntary payment, by realization upon security, by
the exercise of the right of setoff or banker's lien, by counterclaim or cross
action, by the enforcement of any right under the Credit Documents, or
otherwise), which is applicable to the payment of the principal of, or interest
on, the Loans, of a sum which with respect to the related sum or sums received
by other Lenders is in a greater proportion than the total of such Obligation
then owed and due to such Lender bears to the total of such Obligation then owed
and due to all of the Lenders immediately prior to such receipt, then such
Lender receiving such excess payment shall purchase for cash without recourse or
warranty from the other Lenders an interest in the Obligations of the Borrower
to such Lenders in such amount as shall result in a proportional participation
by all the Lenders in such amount; provided that if all or any portion of such
excess amount is thereafter recovered from such Lender, such purchase shall be
rescinded and the purchase price restored to the extent of such recovery, but
without interest.

                  13.07 Calculations; Computations. (a) The financial statements
to be furnished to the Lenders pursuant hereto shall be made and prepared in
accordance with GAAP, consistently applied throughout the periods involved
(except as set forth in the notes thereto or as otherwise disclosed in writing
by the Borrower to the Lenders and except, in the case of interim financial
statements, for normal year-end adjustments); provided that except as otherwise
specifically provided herein, all computations determining the Borrower's
compliance with Section 9 and the definition of Applicable Margin and all other
defined financial terms relating to the Borrower shall utilize accounting
principles and policies in the United States in conformity with those used to
prepare the historical financial statements described in Section 7.05(a); and
provided further that (i) the financial covenants set forth in Sections 8.11 and
9.10-9.14 shall be calculated without regard to Sears Tower as long as an Event
of Default has not occurred and is not continuing under Section 9.17 and (ii)
shall assume that the Borrower owns 100% of the Equity Interests in the
Co-Borrower if formed as long as the requirements of Section 8.04(b) continue to
be satisfied with respect to the Co-Borrower.

                  (b) All computations of interest and Fees hereunder shall be
made on the basis of a year of 360 days for the actual number of days (including
the first day but excluding the last day, except in the case of Letters of
Credit Fees and Facing Fees, the last day shall be included) occurring in the
period for which such interest or Fees are payable; provided that all
computations of interest on Base Rate Loans determined by reference to the Prime
Lending Rate shall be based on the actual number of days elapsed over a year of
365 days (or 366 days, as the case maybe).

                                     -110-
<PAGE>

                  13.08 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER
OF JURY TRIAL(A) . THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS
AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN
ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK, EXCEPT AS
SET FORTH BELOW. THE PARTIES ACKNOWLEDGE THAT NEW YORK HAS A SUBSTANTIAL
RELATIONSHIP TO THE UNDERLYING TRANSACTIONS RELATED TO THIS AGREEMENT AND TO THE
PARTIES INVOLVED. NOTWITHSTANDING THE FOREGOING, THE PARTIES AGREE THAT: (A) THE
LAW OF THE STATE IN WHICH EACH MORTGAGED PROPERTY IS SITUATED (THE "SITUS
STATE") GOVERNS PROCEDURES FOR ENFORCING, IN THE SITUS STATE, PROVISIONAL
REMEDIES DIRECTLY RELATED TO SUCH MORTGAGED PROPERTY, INCLUDING, WITHOUT
LIMITATION, APPOINTMENT OF A RECEIVER; AND (B) THE LAW OF THE SITUS STATE ALSO
APPLIES TO THE EXTENT, BUT ONLY TO THE EXTENT, NECESSARY TO CREATE, TO PERFECT,
AND TO FORECLOSE THE LIENS CREATED BY THE SECURITY DOCUMENTS, BUT DOES NOT APPLY
TO ANY OBLIGATION SECURED THEREBY. THOSE OBLIGATIONS ARE GOVERNED BY NEW YORK
LAW. IN FURTHERANCE OF THE FOREGOING, THE PARTIES STIPULATE AND AGREE THAT THE
ADMINISTRATIVE AGENT AND THE LENDERS MAY ENFORCE IN ACCORDANCE WITH NEW YORK LAW
ANY OR ALL OF ITS OR THEIR RIGHTS TO SUE ANY CREDIT PARTY TO COLLECT ANY
INDEBTEDNESS OR OTHER OBLIGATION, AND TO OBTAIN A DEFICIENCY JUDGMENT AGAINST
ANY SUCH CREDIT PARTY IN THE SITUS STATE, NEW YORK, OR ELSEWHERE, BEFORE OR
AFTER FORECLOSURE, AND IF THE ADMINISTRATIVE AGENT OR THE LENDERS OBTAIN A
DEFICIENCY JUDGMENT OUTSIDE THE SITUS STATE, IT OR THEY MAY ENFORCE THAT
JUDGMENT IN THE SITUS STATE, AS WELL AS IN OTHER STATES.

                  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW
YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK IN EACH CASE
WHICH ARE LOCATED IN THE COUNTY OF NEW YORK AND, BY EXECUTION AND DELIVERY OF
THIS AGREEMENT, EACH CREDIT PARTY HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE
AFORESAID COURTS. EACH CREDIT PARTY HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM
THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER IT, AND AGREES NOT TO PLEAD
OR CLAIM, IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR
ANY OTHER CREDIT DOCUMENTS BROUGHT IN ANY OF THE AFOREMENTIONED COURTS, THAT
SUCH COURTS LACK PERSONAL JURISDICTION OVER IT. EACH CREDIT PARTY FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH CREDIT PARTY AT ITS
ADDRESS SET FORTH OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME EFFECTIVE
30 DAYS AFTER SUCH MAILING. EACH CREDIT PARTY HEREBY IRREVOCABLY WAIVES ANY
OBJECTION TO SUCH SERVICE OF PROCESS AND

                                     -111-
<PAGE>
FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR
PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SERVICE
OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT
THE RIGHT OF THE ADMINISTRATIVE AGENT, ANY LENDER OR THE HOLDER OF ANY NOTE TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY CREDIT PARTY IN ANY OTHER
JURISDICTION INCLUDING ANY SITUS STATE.

                  (B) EACH CREDIT PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE
AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN
CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD
OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

                  (C) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

                  13.09 Counterparts. This Agreement may be executed in any
number of counterparts and by the different parties hereto on separate
counterparts, each of which when so executed and delivered shall be an original,
but all of which shall together constitute one and the same instrument. A set of
counterparts executed by all the parties hereto shall be lodged with the
Borrower and the Administrative Agent.

                  13.10 Effectiveness. This Agreement shall become effective on
the date (the "Effective Date") on which (i) the Borrower, the Administrative
Agent and the Required Lenders shall have signed a counterpart hereof (whether
the same or different counterparts) and shall have delivered the same to the
Administrative Agent at the Notice Office or, in the case of the Lenders, shall
have given to the Administrative Agent telephonic (confirmed in writing),
written or telex notice (actually received) at such office that the same has
been signed and mailed to it and (ii) the conditions contained in Section 5 are
met to the satisfaction of the Administrative Agent and the Required Lenders.
Unless the Administrative Agent has received actual notice from any Lender that
the conditions described in clause (ii) of the preceding sentence have not been
met to its satisfaction, upon the satisfaction of the condition described in
clause (i) of the immediately preceding sentence and upon the Administrative
Agent's good faith determination that the conditions described in clause (ii) of
the immediately preceding sentence have been met, then the Effective Date shall
have been deemed to have occurred, regardless of any subsequent determination
that one or more of the conditions thereto had not been met (although the
occurrence of the Effective Date shall not release the Borrower from any
liability for failure to satisfy one or more of the applicable conditions
contained in Section 5). The Administrative

                                     -112-
<PAGE>
Agent shall give the Borrower and each Lender prompt written notice of the
occurrence of the Effective Date.

                  13.11 Headings Descriptive. The headings of the several
sections and subsections of this Agreement are inserted for convenience only and
shall not in any way affect the meaning or construction of any provision of this
Agreement.

                  13.12 Amendment or Waiver; etc. (a) Neither this Agreement nor
any other Credit Document nor any terms hereof or thereof may be changed,
waived, discharged or terminated unless such change, waiver, discharge or
termination is in writing signed by the Borrower and the Required Lenders,
provided that no such change, waiver, discharge or termination shall, without
the consent of each Lender (with Obligations being directly modified in the case
of the following clause (i)), (i) extend the final scheduled maturity of any
Loan or Note or extend the stated expiration date of any Letter of Credit beyond
the Maturity Date, or reduce the rate or extend the time of payment of interest
or Fees thereon (except in connection with the waiver of applicability of any
post-default increase in interest rates), or reduce the principal amount thereof
(it being understood that any amendment or modification to the financial
definitions in this Agreement or to Section 13.07(a) shall not constitute a
reduction in the rate or interest or Fees for the purposes of this clause (i)),
(ii) release the Temporary Guarantor from its obligations under the Temporary
Guaranty or release all or substantially all of the Subsidiary Guarantors from
their respective obligations under the Subsidiaries Guaranty (except, in each
case, as expressly permitted by the Credit Documents), (iii) amend, modify or
waive any provision of this Section 13.12 (except for technical amendments with
respect to additional extensions of credit pursuant to this Agreement which
afford the protections to such additional extensions of credit of the type
provided to the Commitments on the Effective Date), (iv) reduce the percentage
specified in the definition of Required Lenders (it being understood that, with
the consent of the Required Lenders, additional extensions of credit pursuant to
this Agreement may be included in the determination of the Required Lenders on
substantially the same basis as the extensions of Revolving Loans are included
on the Effective Date) or (v) consent to the assignment or transfer by the
Borrower or the Temporary Guarantor of any of its rights and obligations under
this Agreement; provided further, that no such change, waiver, discharge or
termination shall (1) increase the Commitment of any Lender over the amount
thereof then in effect without the consent of such Lender (it being understood
that waivers or modifications of conditions precedent, covenants, Defaults or
Events of Default or of a mandatory reduction in the Total Commitment shall not
constitute an increase of the Commitment of any Lender, and that an increase in
the available portion of any Commitment of any Lender shall not constitute an
increase of the Commitment of such Lender), (2) without the consent of the
Swingline Lender, alter the Swingline Lender's rights or obligations with
respect to Swingline Loans, (3) without the consent of each Issuing Lender,
amend, modify or waive any provision of Section 2 or alter its rights or
obligations with respect to Letters of Credit or (4) without the consent of the
Administrative Agent, amend, modify or waive any provision of Section 12 or any
other provision as same relates to the rights or obligations of the
Administrative Agent.

                  (b) If, in connection with any proposed change, waiver,
discharge or termination to any of the provisions of this Agreement as
contemplated by clauses (i) through (v), inclusive, of the first proviso to
Section 13.12(a), the consent of the Required Lenders is obtained but the
consent of one or more of such other Lenders whose consent is required is not
obtained, then the

                                     -113-
<PAGE>
Borrower shall have the right, so long as all non-consenting Lenders whose
individual consent is required are treated as described in either clause (A) or
(B) below, to either (A) replace each such non-consenting Lender or Lenders with
one or more Replacement Lenders pursuant to Section 1.14 so long as at the time
of such replacement, each such Replacement Lender consents to the proposed
change, waiver, discharge or termination or (B) terminate such non-consenting
Lender's Commitments and/or repay all outstanding Loans of such Lender in
accordance with Sections 3.02(b) and/or 4.01(b), provided that, unless the
Commitments that are terminated, and Loans repaid, pursuant to preceding clause
(B) are immediately replaced in full at such time through the addition of new
Lenders or the increase of the Commitments and/or outstanding Loans of existing
Lenders (who in each case must specifically consent thereto), then in the case
of any action pursuant to preceding clause (B) the Required Lenders (determined
after giving effect to the proposed action) shall specifically consent thereto;
provided further, that in any event the Borrower shall not have the right to
replace a Lender or repay its Loans solely as a result of the exercise of such
Lender's rights (and the withholding of any required consent by such Lender)
pursuant to the second proviso to Section 13.12(a).

                  13.13 Survival. All indemnities set forth herein including,
without limitation, in Sections 1.10, 1.11, 2.06, 4.04, 12.06 and 13.01 shall
survive the execution, delivery and termination of this Agreement and the Notes
and the making and repayment of the Obligations.

                  13.14 Domicile of Loans. Each Lender may transfer and carry
its Loans at, to or for the account of any office, Subsidiary or Affiliate of
such Lender. Notwithstanding anything to the contrary contained herein, to the
extent that a transfer of Loans pursuant to this Section 13.14 would, at the
time of such transfer, result in increased costs under Sections 1.10, 1.11, 2.06
or 4.04 in excess of those being charged by the respective Lender prior to such
transfer, then the Borrower shall not be obligated to pay such excess increased
costs (although the Borrower, in accordance with and pursuant to the other
provisions of this Agreement, shall be obligated to pay the costs which would
apply in the absence of such designation and any subsequent increased costs of
the type described above resulting from changes after the date of the respective
transfer).

                  13.15 Register. The Borrower hereby designates the
Administrative Agent to serve as the Borrower's agent, solely for purposes of
this Section 13.15, to maintain a register (the "Register") on which it will
record the Loans made by each of the Lenders and each repayment in respect of
the principal amount of the Loans of each Lender. Failure to make any such
recordation, or any error in such recordation shall not affect the Borrower's
obligations in respect of such Loans. With respect to any Lender, the transfer
of the Commitment of such Lender and the rights to the principal of, and
interest on, any Loan made pursuant to this Agreement shall not be effective
until such transfer is recorded on the Register maintained by the Administrative
Agent with respect to ownership of such Commitment and Loans and prior to such
recordation all amounts owing to the transferor with respect to such Loans shall
remain owing to the transferor. The registration of assignment or transfer of
all or part of any Loans shall be recorded by the Administrative Agent on the
Register only upon the acceptance by the Administrative Agent of a properly
executed and delivered Assignment and Assumption Agreement pursuant to Section
13.04(b). Coincident with the delivery of such an Assignment and Assumption
Agreement to the Administrative Agent for acceptance and registration of
assignment or transfer of all or part of a Commitment and any related Loan, or
as soon thereafter

                                     -114-
<PAGE>
as practicable, the assigning or transferor Lender shall surrender the Note
evidencing such Loan, and thereupon one or more new Notes in the same aggregate
principal amount shall be issued to the assigning or transferor Lender and/or
the new Lender at the request of such Lender. The Borrower agrees to indemnify
the Administrative Agent from and against any and all losses, claims, damages
and liabilities of whatsoever nature which may be imposed on, asserted against
or incurred by the Administrative Agent in performing its duties under this
Section 13.15, provided that the Borrower shall have no obligation to indemnify
the Administrative Agent for any loss, claim, damage, liability or expense to
the extent that same resulted from the gross negligence or willful misconduct of
the Administrative Agent (as determined by a court of competent jurisdiction in
a final and non-appealable decision).

                  13.16 Confidentiality. Each Lender agrees that it will (x) use
its reasonable efforts not to disclose without the prior consent of the Borrower
(other than to its affiliates and to its or its affiliates' respective
employees, officers, auditors, examiners, advisors or counsel or to another
Lender if the Lender or such Lender's holding or parent company in its
reasonable good faith discretion determines that any such party should have
access to such information, provided such Persons shall be subject to the
provisions of this Section 13.16 to the same extent as such Lender) any
non-public information with respect to any of the Credit Parties or any of their
respective Subsidiaries which is now or in the future furnished pursuant to this
Agreement or any other Credit Document by the Borrower and (y) use any such
non-public information (A) for purposes relating to this Agreement, the other
Credit Documents or any of the transactions contemplated hereby or thereby
(including, without limitation, in connection with (i) the evaluation,
administration, monitoring or enforcement of any of the Credit Documents or the
Obligations or (ii) satisfying or cooperating in any Person's regulatory or
other compliance requirements) or (B) in connection with other services at the
request or for the benefit of the Borrower and its Subsidiaries, provided that
any Lender may disclose any such information (a) as has become generally
available to the public, (b) as may be required or appropriate in any report,
statement or testimony submitted to any municipal, state or Federal regulatory
body having or claiming to have jurisdiction over such Lender or to the Federal
Reserve Board or the Federal Deposit Insurance Corporation or similar
organizations (whether in the United States or elsewhere) or their successors,
(c) as may be required or appropriate in respect to any summons or subpoena or
in connection with any litigation, (d) in order to comply with any law, order,
regulation or ruling applicable to such Lender, (e) to the Administrative Agent
or any other Lender and (f) to any prospective or actual transferee or
participant in connection with any contemplated transfer or participation of any
of the Notes or Commitments or any interest therein by such Lender, provided
that such prospective transferee shall be subject to the provisions of this
Section 13.16.

                  13.17 Limitation on Additional Amounts, etc. Notwithstanding
anything to the contrary contained in Section 1.10, 1.11, 2.06 or 4.04, unless a
Lender gives notice to the Borrower that it is obligated to pay an amount under
the respective Section within 180 days after the later of (x) the date the
Lender incurs the respective increased costs, loss, expense or

                                     -115-
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liability, reduction in amounts received or receivable or reduction in return on
capital or (y) the date such Lender has actual knowledge of its incurrence of
the respective increased costs, loss, expense or liability, reductions in
amounts received or receivable or reduction in return on capital, then such
Lender shall only be entitled to be compensated for such amount by the Borrower
pursuant to said Sections 1.10, 1.11, 2.06 or 4.04, as the case may be, to the
extent the costs, loss, expense or liability, reduction in amounts received or
receivable or reduction in return on capital are incurred or suffered on or
after the date which occurs 180 days prior to such Lender giving notice to the
Borrower that it is obligated to pay the respective amounts pursuant to said
Sections 1.10, 1.11, 2.06, or 4.04, as the case may be; provided, however, that
if the circumstances giving rise to such claims have a retroactive effect, such
180-day period shall be extended to include the period of such retroactive
effect. This Section 13.17 shall have no applicability to any Section of this
Agreement other than said Sections 1.10, 1.11, 2.06 or 4.04.

                  13.18 No Third Party Beneficiary. Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective permitted successors and assigns any rights,
remedies, obligations or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

                  13.19 Waiver of Sovereign Immunity. To the extent that any
Credit Party has or hereafter may acquire any immunity from jurisdiction of any
court or from any legal process (whether through service or notice, attachment
prior to judgment, attachment in aid of execution, or otherwise) with respect to
itself or its property, such Credit Party hereby irrevocably waives such
immunity in respect of its obligations hereunder to the extent permitted by
applicable law and, without limiting the generality of the foregoing, agrees
that the waivers set forth in this Section 13.19 shall have the fullest extent
permitted under the Foreign Sovereign Immunities Act of 1976 of the United
States and are intended to be irrevocable for purposes of such Act.

                  13.20 Judgment Currency. (a) The Credit Parties' obligations
hereunder and under the other Credit Documents to make payments in Dollars (the
"Obligation Currency") shall not be discharged or satisfied by any tender or
recovery pursuant to any judgment expressed in or converted into any currency
other than the Obligation Currency, except to the extent that such tender or
recovery results in the effective receipt by the Administrative Agent or the
respective Lender of the full amount of the Obligation Currency expressed to be
payable to the Administrative Agent or such Lender under this Agreement or the
other Credit Documents. If for the purpose of obtaining or enforcing judgment
against any Credit Party in any court or in any jurisdiction, it becomes
necessary to convert into or from any currency other than the Obligation
Currency (such other currency being hereinafter referred to as the "Judgment
Currency") an amount due in the Obligation Currency, the conversion shall be
made at the rate of exchange (as quoted by the Administrative Agent in good
faith or if the Administrative Agent does not quote a rate of exchange on such
currency, by a known dealer in such currency designated by the Administrative
Agent) determined, in each case, as of the day on which the judgment is given
(such Business Day being hereinafter referred to as the "Judgment Currency
Conversion Date").

                  (b) If there is a change in the rate of exchange prevailing
between the Judgment Currency Conversion Date and the date of actual payment of
the amount due, the Borrower covenants and agrees to pay, or cause to be paid,
such additional amounts, if any (but in any event not a lesser amount), as may
be necessary to ensure that the amount paid in the Judgment Currency, when
converted at the rate of exchange prevailing on the date of payment, will
produce the amount of the Obligation Currency which could have been purchased
with the amount of Judgment Currency stipulated in the judgment or judicial
award at the rate of exchange prevailing on the Judgment Currency Conversion
Date.

                                     -116-
<PAGE>
                  (c) For purposes of determining any rate of exchange for this
Section 13.20, such amounts shall include any premium and costs payable in
connection with the purchase of the Obligation Currency.

                  13.21 Maximum Rate. Notwithstanding anything to the contrary
contained elsewhere in this Agreement or in any other Credit Document, the
Borrower, the Administrative Agent and the Lenders hereby agree that all
agreements among them under this Agreement and the other Credit Documents,
whether now existing or hereafter arising and whether written or oral, are
expressly limited so that in no contingency or event whatsoever shall the amount
paid, or agreed to be paid, to the Administrative Agent or any Lender for the
use, forbearance, or detention of the money loaned to the Borrower and evidenced
hereby or thereby or for the performance or payment of any covenant or
obligation contained herein or therein, exceed the Highest Lawful Rate. If due
to any circumstance whatsoever, fulfillment of any provisions of this Agreement
or any of the other Credit Documents at the time performance of such provision
shall be due shall exceed the Highest Lawful Rate, then, automatically, the
obligation to be fulfilled shall be modified or reduced to the extent necessary
to limit such interest to the Highest Lawful Rate, and if from any such
circumstance any Lender should ever receive anything of value deemed interest by
applicable law which would exceed the Highest Lawful Rate, such excessive
interest shall be applied to the reduction of the principal amount then
outstanding hereunder or on account of any other then outstanding Obligations
and not to the payment of interest, or if such excessive interest exceeds the
principal unpaid balance then outstanding hereunder and such other then
outstanding Obligations, such excess shall be refunded to the Borrower. All sums
paid or agreed to be paid to the Administrative Agent or any Lender for the use,
forbearance, or detention of the Obligations and other Indebtedness of the
Borrower to the Administrative Agent or any Lender shall, to the extent
permitted by applicable law, be amortized, prorated, allocated and spread
throughout the full term of such Indebtedness until payment in full so that the
actual rate of interest on account of all such Indebtedness does not exceed the
Highest Lawful Rate throughout the entire term of such Indebtedness. The terms
and provisions of this Section 13.21 shall control every other provision of this
Agreement and all agreements among the Borrower, the Administrative Agent and
the Lenders.

                  13.22 Temporary Guaranty. The Lenders hereby acknowledge that
the Temporary Guarantor has been released from its obligations under the
Temporary Guaranty and has ceased to be a Credit Party under the Existing
Agreement and that the provisions of the Existing Agreement have ceased to be
applicable to the Temporary Guarantor and its Subsidiaries other than the
Borrower and its Subsidiaries.

                  13.23 Agreement Among Signing Lenders. Each of the Lenders
party to the Existing Agreement which executes and delivers a counterpart of
this Agreement (and the successors and assigns of each such Lender) (each of the
foregoing Lenders and their successors and assigns are herein called "Signing
Lenders") hereby agrees for the benefit of each other Signing Lender, that no
such Signing Lender shall agree to any amendment, modification or waiver of (i)
this Agreement the effect of which could release all or a material portion of
the Collateral (except, in each case, as expressly permitted by the Credit
Documents), (ii) this Agreement the effect of which would allow the assignment
or transfer by the Co-Borrower (if formed) or any of its rights and obligations
under this Agreement or (iii) this Section 13.23, in

                                     -117-
<PAGE>
each case without the prior written consent of the Required Lenders and also of
each of the Signing Lenders.

                                      * * *

                                     -118-
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Agreement as of the date first
above written.

Address:
-------
Trizec Properties, Inc.                 TRIZEC PROPERTIES, INC.,
233 South Wacker Drive, Suite 4600          as Borrower
Chicago, Illinois  60606
Telephone:  (312) 382-7626
Facsimile:    (312) 466-0185
Attention:  Jeffrey Echt                By:
                                            -----------------------------------
                                             Title:

                                        DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                            Individually and as Administrative
                                            Agent

                                        By:
                                            -----------------------------------
                                             Title:

                                        BANK OF AMERICA, N.A.

                                        By:
                                            -----------------------------------
                                             Title:

                                        BANK OF MONTREAL

                                        By:
                                            -----------------------------------
                                             Title:

                                        THE BANK OF NOVA SCOTIA,
                                             NEW YORK AGENCY

                                        By:
                                            -----------------------------------
                                             Title:

                                        ING (US) CAPITAL LLC

                                        By:
                                            -----------------------------------
                                             Title:

                                        By:
                                            -----------------------------------
                                             Title:

                                     (cxix)
<PAGE>

                                        DRESDNER BANK AG, NEW YORK AND GRAND
                                           CAYMAN BRANCHES

                                        By:
                                            -----------------------------------
                                             Title:

                                        By:
                                            -----------------------------------
                                             Title:

                                        LASALLE BANK NATIONAL ASSOCIATION

                                        By:
                                            -----------------------------------
                                            Title:

                                        KEY BANK NATIONAL ASSOCIATION

                                        By:
                                            -----------------------------------
                                            Title:

                                        US BANK NATIONAL ASSOCIATION

                                        By:
                                            -----------------------------------
                                            Title:

                                        COMERICA BANK

                                        By:
                                            -----------------------------------
                                            Title:

                                        UNION BANK OF CALIFORNIA, N.A.

                                        By:
                                            -----------------------------------
                                            Title:

                                      -cxx-<PAGE>
                                                                   EXHIBIT 10.14

                                 LOAN AGREEMENT

                            Dated as of May 17, 2001

                                     between

                            THE OBLIGORS NAMED HEREIN
                                  as Obligors,

                                       and

                          SECORE FINANCIAL CORPORATION,
                                    as Lender

Loan Agreement

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                 Page
                                                                                 ----
<S>                                                                              <C>
    DEFINITIONS.............................................................       1

                                    ARTICLE I
                                  GENERAL TERMS

    Section 1.1.   The Loans................................................      32
    Section 1.2.   Floating Rate Loans......................................      33
    Section 1.3.   Fixed Rate Loans.........................................      35
    Section 1.4.   Method and Place of Payment..............................      37
    Section 1.5.   Release..................................................      37
    Section 1.5.   Rating Agency Monitoring Fees............................      37

                                   ARTICLE II
                   PREPAYMENTS, DISPOSITIONS AND SUBSTITUTIONS

    Section 2.1.   Voluntary Prepayment of Floating Rate Loans..............      38
    Section 2.2.   Property Releases........................................      38
    Section 2.3.   Substitution.............................................      41
    Section 2.4.   Assumption...............................................      43
    Section 2.5.   Release of Development Parcels...........................      45

                                   ARTICLE III
                                    ACCOUNTS

    Section 3.1.   Cash Management Account..................................      46
    Section 3.2.   Distributions from Cash Management Account...............      48
    Section 3.3.   Tax, Insurance and Ground Rents Escrow Account...........      48
    Section 3.4.   TI/LC Reserve Account....................................      50
    Section 3.5.   Capital Expenditure Reserve Account......................      52
    Section 3.6.   Loss Proceeds Account....................................      52
    Section 3.7.   [Intentionally Omitted]..................................      53
    Section 3.8.   [Intentionally Omitted]..................................      53
    Section 3.9.   Account Collateral.......................................      53
    Section 3.10.  Permitted Investments....................................      53
    Section 3.11.  Bankruptcy...............................................      54

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

    Section 4.1.   Organization.............................................      55
    Section 4.2.   Authorization............................................      55
    Section 4.3.   No Conflicts.............................................      55
    Section 4.4.   Consents.................................................      55
    Section 4.5.   Enforceable Obligations..................................      55
    Section 4.6.   No Event of Default......................................      55
    Section 4.7.   Payment of Taxes.........................................      56
</TABLE>

                                       i

<PAGE>
<TABLE>
<S>                                                                               <C>
    Section 4.8.   Compliance with Law......................................      56
    Section 4.10.   ERISA; Employee Benefits Matters........................      56
    Section 4.10.   Government Regulation...................................      56
    Section 4.11.   No Bankruptcy Filing....................................      57
    Section 4.12.   Other Debt..............................................      57
    Section 4.13.   Litigation..............................................      57
    Section 4.14.   Leases; Material Agreements.............................      57
    Section 4.15.   Full and Accurate Disclosure............................      58
    Section 4.16.   Financial Condition.....................................      58
    Section 4.17.   Single-Purpose Requirements.............................      58
    Section 4.18.   Location of Chief Executive Offices.....................      58
    Section 4.19.   Not Foreign Person......................................      58
    Section 4.20.   Labor Matters...........................................      58
    Section 4.21.   Title...................................................      58
    Section 4.22.   No Encroachments........................................      59
    Section 4.23.   Physical Condition......................................      59
    Section 4.24.   Solvency................................................      60
    Section 4.25.   Management..............................................      60
    Section 4.26.   Condemnation............................................      60
    Section 4.27.   Utilities and Public Access.............................      60
    Section 4.28.   Environmental Matters...................................      60
    Section 4.29.   Assessments.............................................      61
    Section 4.30.   No Joint Assessment.....................................      61
    Section 4.31.   Separate Lots...........................................      61
    Section 4.32.   Permits; Certificate of Occupancy.......................      61
    Section 4.33.   Flood Zone..............................................      61
    Section 4.34.   Security Deposits.......................................      62
    Section 4.35.   Parking.................................................      62
    Section 4.36.   Intentionally Omitted...................................      62
    Section 4.37.   Ground Leased Parcel....................................      62
    Section 4.38.   Insurance...............................................      70
    Section 4.39.   Survival................................................      71

                                    ARTICLE V
                              AFFIRMATIVE COVENANTS

    Section 5.1.   Existence................................................      71
    Section 5.2.   Maintenance of Properties; Compliance with Legal
                   Requirements.............................................      71
    Section 5.3.   Impositions and Other Claims.............................      71
    Section 5.4.   Access to Property.......................................      72
    Section 5.5.   Notice of Default........................................      72
    Section 5.6.   Litigation...............................................      72
    Section 5.7.   Cooperate in Legal Proceedings...........................      72
    Section 5.8.   Leases...................................................      72
    Section 5.18.  Plan Assets, etc.........................................      74
    Section 5.10.  Further Assurances.......................................      74
    Section 5.11.  Management of Collateral.................................      75
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                               <C>
    Section 5.12.  Annual Financial Statements..............................      76
    Section 5.13   Quarterly Reporting......................................      76
    Section 5.14.  Assignment or Participation of Note......................      77
    Section 5.15.  Insurance................................................      77
    Section 5.16.  Casualty and Condemnation................................      80
    Section 5.17.  General Indemnity........................................      82

                                   ARTICLE VI
                               NEGATIVE COVENANTS

    Section 6.1.   Liens on the Properties..................................      83
    Section 6.2.   Ownership................................................      84
    Section 6.3.   Transfer.................................................      84
    Section 6.4.   Debt.....................................................      84
    Section 6.5.   Dissolution; Merger or Consolidation.....................      84
    Section 6.6.   Change In Business.......................................      84
    Section 6.7.   Debt Cancellation........................................      84
    Section 6.8.   Affiliate Transactions...................................      84
    Section 6.9.   Misapplication of Funds..................................      84
    Section 6.10.  Place of Business........................................      84
    Section 6.11.  Modifications and Waivers................................      84
    Section 6.12.  ERISA....................................................      85
    Section 6.13.  Alterations and Expansions...............................      85
    Section 6.14.  Advances and Investments.................................      86
    Section 6.15.  Single-Purpose Entity....................................      86
    Section 6.16.  Zoning and Uses..........................................      86
    Section 6.17.  Waste....................................................      86

                                   ARTICLE VII
                                    DEFAULTS

    Section 7.1.  Event of Default..........................................      87
    Section 7.2.  Remedies..................................................      89
    Section 7.3.  Remedies Cumulative.......................................      90
    Section 7.4.  Application of Payments after an Event of Default.........      91

                                  ARTICLE VIII
                              CONDITIONS PRECEDENT

    Section 8.1.   Conditions Precedent to Closing..........................      91
    Section 8.1.   Conditions Precedent to Addition of Qualified
                   Substitute Property......................................      94

                                   ARTICLE IX
                                  MISCELLANEOUS

    Section 9.1.   Successors...............................................      99
    Section 9.2.   GOVERNING LAW............................................      99
    Section 9.3.   Modification, Waiver in Writing..........................      99
    Section 9.4.   Notices..................................................     100
    Section 9.5.   TRIAL BY JURY............................................     100
</TABLE>

                                      iii

<PAGE>

<TABLE>
<S>                                                                              <C>
    Section 9.6.   Headings.................................................     101
    Section 9.7.   Assignment and Participation.............................     101
    Section 9.8.   Severability.............................................     101
    Section 9.9.   Preferences..............................................     102
    Section 9.10.  Rating Confirmations.....................................     102
    Section 9.11.  Offsets, Counterclaims and Defenses......................     102
    Section 9.12.  No Joint Venture.........................................     102
    Section 9.13.  Conflict; Construction of Documents......................     102
    Section 9.14.  Brokers and Financial Advisors...........................     103
    Section 9.15.  Counterparts.............................................     103
    Section 9.16.  Estoppel Certificates....................................     103
    Section 9.17.  Payment of Expenses; Mortgage Recording Taxes............     103
    Section 9.18.  No Third-Party Beneficiaries.............................     104
    Section 9.19.  Recourse.................................................     104
    Section 9.20.  Right of Set-Off.........................................     106
    Section 9.21.  Exculpation of Lender....................................     106
    Section 9.22.  Servicer.................................................     106
    Section 9.23.  Prior Agreements.........................................     106
</TABLE>

                                       iv
<PAGE>

                                 LOAN AGREEMENT

            THIS LOAN AGREEMENT, made as of May 17, 2001, is among Secore
Financial Corporation, a Pennsylvania corporation having an address at 3
Bethesda Metro Center, Suite 700, Bethesda MD 20814, as lender (together with
its successors and assigns, "Lender"), the entities identified as "Borrowers" on
the signature page of this Agreement, each of which is a Delaware or Virginia
limited liability company having an address at c/o TrizecHahn Office Properties
Inc., 233 South Wacker Drive, Suite 4600, Chicago, Illinois 60606, as borrower
(each, a "Borrower" and collectively, the "Borrowers") and the entities
identified as "Maryland Guarantors" on the signature page of this Agreement,
each of which is a Maryland limited liability company having an address at c/o
TrizecHahn Office Properties Inc., 233 South Wacker Drive, Suite 4600, Chicago,
Illinois 60606 (each, a "Maryland Guarantor" and collectively, the "Maryland
Guarantors"; and collectively with the Borrowers, the "Obligors").

                                    RECITALS

            WHEREAS, Borrowers desire to obtain from Lender the Loans (as
hereinafter defined) in connection with the financing of a portfolio of office
properties; and

            WHEREAS, Lender is willing to make the Loans on the terms and
conditions hereof if the Borrowers issue the Notes and the Obligors and the
Nonrecourse Carveout Indemnitor join in the execution and delivery of this
Agreement and execute and deliver the other Loan Documents which shall establish
the terms and conditions of the Loans;

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

                                   DEFINITIONS

            (a) When used herein, the following capitalized terms shall have
the following meanings:

            "Acceptable Counterparty" means any counterparty to an Interest Rate
Cap Agreement that shall have and maintain either a long-term unsecured debt
rating of AAA by S&P or a short-term unsecured debt rating of not less than A-1+
by S&P, a long-term unsecured debt rating of not less than Aa3 by Moody's and
either a long-term unsecured debt rating of A by Fitch or a short-term unsecured
debt rating of F-1 by Fitch, or any other counterparty to an Interest Rate Cap
Agreement with respect to which Rating Confirmation shall have been received.

             "Account Collateral" means, collectively, the Collateral Accounts
and all sums at any time held, deposited or invested therein, together with any
interest or other earnings thereon, and all proceeds thereof (including, without
limitation, proceeds of sales and other dispositions),

                                       1
<PAGE>

whether accounts, general intangibles, chattel paper, deposit accounts,
instruments, documents or securities.

            "Affected Property" has the meaning set forth in Section 2.5(a).

            "Affiliate" of any specified Person means any other Person
controlling, controlled by or under common control with such specified Person.
For the purposes of this definition, "control" when used with respect to any
specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities or other beneficial interests (determined in a manner analogous to
the method for determining beneficial ownership under Rule 13d-3 under the
Securities Exchange Act of 1934, as amended), by contract or otherwise; and the
terms "controlling" and "controlled" have meanings correlative to the foregoing.

            "Aggregate Loan Amount" means $1,440,000,000.

            "Agreement" means this Loan Agreement, as the same may from time to
time hereafter be modified or replaced.

            "Allocated Loan Amount" means:

            (1) with respect to any Property on the date hereof, the portion of
      the Aggregate Loan Amount allocated thereto on the Closing Date, as set
      forth on Schedule E; and

            (2) with respect to any Qualified Substitute Property added to the
      Collateral in connection with a Property Substitution pursuant to Section
      2.3, the sum of the Allocated Loan Amounts of the related Replaced
      Properties (which the Qualified Substitute Property replaced) immediately
      prior to such Property Substitution (if a Property Substitution involves
      more than one Qualified Substitute Property, the sum of the Allocated Loan
      Amounts of the related Replaced Properties shall be allocated among such
      Qualified Substitute Properties in proportion to each such Qualified
      Substitute Property's Initial Value);

in each case minus the portion of any voluntary prepayment pursuant to this
Agreement that is not associated with the release of a Property and the amount
of any Release Premium in connection with the release of a Property pursuant to
Section 2.2 (any such allocation to be pro rata among all of the Properties on
the basis of their Allocated Loan Amounts as in effect immediately prior to such
prepayment or release). In addition, for all purposes other than the
determination of a Release Price, the Allocated Loan Amount of any Property
shall be reduced by the amount of any Loss Proceeds with respect to such
Property which are applied toward the reduction of the Indebtedness in
accordance herewith.

            "ALTA" means the American Land Title Association, or any successor
thereto.

            "Alteration" means any demolition, alteration, installation,
improvement or expansion of or to any Property or any portion thereof.

                                       2
<PAGE>

            "Annual Budget" means a capital and operating expenditure budget for
each Property prepared by the Obligors.

             "Appraisal" means, with respect to any Property, an as-is appraisal
thereof prepared by CB Richard Ellis or another member of the American Institute
of Real Estate Appraisers selected by Lender and reasonably approved by the
applicable Obligor, which appraisal shall meet the minimum appraisal standards
for national banks promulgated by the Comptroller of the Currency pursuant to
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of
1989, as amended (FIRREA).

            "Assignee" has the meaning set forth in Section 9.7(a).

            "Assignment" has the meaning set forth in Section 5.15.

            "Assignment of Contracts" means each Collateral Assignment of
Contracts, Licenses, Permits, Agreements, Warranties and Approvals, in
substantially the form of Exhibit G, as the same may from time to time be
modified or replaced in accordance herewith.

            "Assignment of Rents and Leases" means each assignment of rents and
leases, in substantially the form of Exhibit F, as the same may from time to
time be modified or replaced in accordance herewith.

            "Association" means the Plaza of the Americas Condominium
Association.

            "Assumption" has the meaning set forth in Section 2.4.

            "Bankruptcy Code" has the meaning set forth in Section 7.1(d).

            "Borrowers" means (i) initially, the borrowers identified on the
signature page of this Agreement, (ii) from and after any substitution pursuant
to Section 2.3 or assignment and assumption of the Loans pursuant to Section
2.4, the applicable Qualified Successor Borrower together with each remaining
Borrower, and (iii) from and after a release of a Borrower under Section 2.2,
each remaining Borrower.

            "Business Day" means any day other than (i) a Saturday and a Sunday
and (ii) a day on which federally insured depository institutions in the State
of New York or the state in which the offices of Lender, its Servicer or its
Servicer's collection account are located are authorized or obligated by law,
governmental decree or executive order to be closed. Notwithstanding the
foregoing, when used with respect to an Interest Determination Date, "Business
Day" means a day on which banks are open for dealing in foreign currency and
exchange in London.

            "Capital Expenditure" means, with respect to any Property, hard and
soft costs incurred by the applicable Obligor with respect to replacements,
capital repairs, improvements and alterations made to such Property (including,
without limitation, repairs to, and replacements of, structural components,
roofs, building systems, parking garages and parking lots), in each case to the
extent capitalized in accordance with GAAP or which are non-recurring and
individually cost in excess of $25,000.

                                       3
<PAGE>

            "Capital Expenditure Reserve Account" has the meaning set forth in
Section 3.5.

             "Cash Management Account" has the meaning set forth in Section
3.1(a).

            "Cash Management Agreement" means each Cash Management Agreement, in
substantially the form of Exhibit A, as the same may from time to time be
modified or replaced in accordance herewith.

            "Cash Management Bank" means The Chase Manhattan Bank, or any other
depository institution from time to time selected by the Obligors and reasonably
approved by Lender (or selected by Lender during the continuance of an Event of
Default), in which Eligible Accounts may be maintained.

            "Casualty" means a fire, explosion, flood, collapse or other
casualty affecting any of the Properties.

            "Certificates" means, collectively, any senior and/or subordinate
notes, debentures or pass-through certificates, or other evidence of
indebtedness, or debt or equity securities, or any combination of the foregoing,
representing a direct or beneficial interest, in whole or in part, in any of the
Loans.

            "Change of Control" with respect to any Obligor or Single-Purpose
Equityholder means any of the following: (i) any event following which (a)
Qualified Equityholders, individually or collectively, do not directly or
indirectly own more than 50% of the equity interests of such Obligor or
Single-Purpose Equityholder or (b) Qualified Equityholders, individually or
collectively, fail to control such Obligor or Single-Purpose Equityholder; or
(ii) any pledge of any membership interest in any Obligor or Single-Purpose
Equityholder the foreclosure on which would result in a Change of Control under
clause (i).

            "Closing Date" means the date hereof.

            "Closing Date Net Operating Income" means, with respect to each
Property, the amount specified opposite the name of such Property in Schedule D.

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

            "Collateral" means the Properties, the Revenues and all other
tangible and intangible property (including, without limitation, any Defeasance
Collateral) in respect of which Lender is granted a Lien under the Loan
Documents, and all proceeds thereof.

            "Collateral Accounts" means, collectively, the Cash Management
Account, the Tax, Insurance and Ground Rents Escrow Account, the TI/LC Reserve
Account, the Loss Proceeds Account and the Capital Expenditure Reserve Account.

            "Commercially Reasonable" means, with respect to the terms and
conditions of any proposed Lease, commercially reasonable when compared with
terms and conditions of

                                       4
<PAGE>

Leases in similarly situated office buildings in similar contexts at the time in
question, taking into account, inter alia, the size, creditworthiness and
bargaining power of a prospective Tenant and the location, view and height of
the space covered by such proposed Lease.

            "Condemnation" means a taking or voluntary conveyance during the
term hereof of all or part of a Property or any interest therein or right
accruing thereto or use thereof, as the result of, or in settlement of, any
condemnation or other eminent domain proceeding by any Governmental Authority.

            "Condominium" means the Plaza of the Americas Condominium, Dallas,
Texas.

            "Condominium Estoppel" means a condominium Estoppel Certificate
executed by the applicable Obligor and the Association in form and substance
satisfactory to the Lender.

            "Contingent Obligation" means any obligation of any Obligor directly
or indirectly guaranteeing any Debt of any other Person in any manner.

            "Damages" to a party means any and all liabilities, obligations,
losses, damages, penalties, assessments, actions, judgments, suits, claims,
costs, expenses (including, without limitation, reasonable attorneys' fees
whether or not suit is brought), settlement costs and disbursements imposed on,
incurred by or asserted against such party, excluding consequential, special or
punitive damages.

            "Debt" means, with respect to any Person, without duplication:

            (i) all indebtedness of such Person to any other party (regardless
      of whether such indebtedness is evidenced by a written instrument such as
      a note, bond or debenture), including, without limitation, indebtedness
      for borrowed money or for the deferred purchase price of property or
      services;

            (ii) all letters of credit issued for the account of such Person and
      all unreimbursed amounts drawn thereunder;

            (iii) all indebtedness secured by a Lien (other than Permitted
      Encumbrances) on any property owned by such Person (whether or not such
      indebtedness has been assumed) except obligations for impositions which
      are not yet due and payable;

            (iv) all Contingent Obligations of such Person;

            (v) all payment obligations of such Person under any interest rate
      protection agreement (including, without limitation, any interest rate
      swaps, floors, collars or similar agreements) and similar agreements; and

            (vi) all contractual indemnity obligations of such Person.

            "Declaration" means that certain Declaration of Covenants,
Conditions and Restrictions, dated March 6, 1989 (as the same was amended on
September 6, 1991 and again on September 5, 1997), creating the Condominium.

                                       5
<PAGE>

             "Default" means the occurrence and uncured continuance of any event
which, but for the giving of notice or the passage of time, or both, would be an
Event of Default.

            "Default Rate" means, with respect to any Note, the greater of (x)
3% per annum in excess of the interest rate otherwise applicable to such Note
hereunder and (y) 1% per annum in excess of the Prime Rate from time to time.

            "Defeased Note" has the meaning set forth in Section 2.2(a).

            "Defeasance Borrower" has the meaning provided in Section
2.2(a)(iii).

            "Defeasance Collateral" means (i) direct, non-callable obligations
of the United States of America, or (ii) any investment vehicles that are then
customarily used as defeasance collateral in securitized commercial mortgage
loan transactions, provided Rating Confirmation is received with respect
thereto.

            "Defeasance Pledge Agreement" has the meaning set forth in Section
2.2(a)(ii).

            "Defease" means to deliver Defeasance Collateral as substitute
Collateral for the Loans in accordance herewith); and the terms "Defeased" and
"Defeasance" have meanings correlative to the foregoing.

            "Defeased Amount" has the meaning set forth in Section 2.2(a)(i).

            "DSCR" means, with respect to any Fiscal Quarter, the quotient of
(i) DSCR NOI for such Fiscal Quarter (less any portion thereof attributable to
any Properties released from the Collateral during such Fiscal Quarter and plus
any portion thereof attributable to any Properties added to the Collateral
during such Fiscal Quarter) divided by (ii) the product of (x) the aggregate
outstanding principal balance of the Notes (other than any Defeased Notes) plus
the aggregate outstanding principal balance of any Permitted Five-Year
Refinancing Debt and any Permitted Seven-Year Refinancing Debt times (y) 1/4
times (z) 9%.

            "DSCR NOI" means, with respect to any Fiscal Quarter, the excess of
(x) the Operating Income for such Fiscal Quarter contained in such Fiscal
Quarter, over (y) the Operating Expenses for such Fiscal Quarter.

            "Eligible Account" means (i) an account maintained with a federal or
state-chartered depository institution or trust company which complies with the
definition of Eligible Institution, or (ii) a segregated trust account or
accounts maintained with the corporate trust department of a federal depository
institution or state-chartered depository institution subject to regulations
regarding fiduciary funds on deposit under, or similar to, Title 12 of the Code
of Federal Regulations Section 9.10(b) which, in either case, has corporate
trust powers, acting in its fiduciary capacity.

            "Eligible Institution" means an institution (i) whose commercial
paper, short-term debt obligations or other short-term deposits are rated at
least A-1, Prime-1 or F-1, as applicable, by each of the Rating Agencies if the
deposits are to be held in the account for less than 30 days

                                       6
<PAGE>

or (ii) whose long-term senior unsecured debt obligations are rated at least AA
or Aa2, as applicable, by each of the Rating Agencies if the deposits are to be
held in the account for at least 30 days, or (iii) with respect to which Lender
shall have received Rating Confirmation.

            "Engineer" means ATC Associates Inc., Penta Engineering Group, Inc.,
Clayton Group Services, Inc., Marx/Okubo Associates Ltd., or any other
independent engineer as shall be reasonably approved by Lender and the Obligors.

            "Engineering Report" means, with respect to each Property, a
structural and seismic engineering report or reports with respect to such
Property prepared by an Engineer and delivered to Lender in connection with the
Loans, and any amendments or supplements thereto delivered to Lender.

            "Environmental Auditor" means ATC Associates Inc., URS Corporation
Americas, QORE, Inc., or any other independent environmental auditor reasonably
approved by Lender and the Obligors.

            "Environmental Claim" means any written notice, claim, proceeding,
investigation or demand by any Person or Governmental Authority alleging or
asserting liability with respect to any Obligor or its Properties arising out
of, based on or resulting from (i) the alleged presence, Use or Release of any
Hazardous Substance in violation of Environmental Laws, (ii) any alleged
violation of any Environmental Law, or (iii) any alleged injury or threat of
injury to property, health or safety or to the environment caused by Hazardous
Substances present on the Property in violation of Environmental Laws.

            "Environmental Indemnity" means each Environmental Indemnity
Agreement, in substantially the form of Exhibit H, executed and delivered by
each Obligor and the Nonrecourse Carveout Indemnitor to Lender in accordance
herewith, as the same may from time to time be modified or replaced in
accordance herewith.

            "Environmental Laws" means any and all present and future federal,
state or local laws, statutes, ordinances or regulations, any judicial or
administrative orders, decrees or judgments thereunder, and any permits,
approvals, licenses, registrations, filings and authorizations, in each case as
now or hereafter in effect, relating to the pollution, protection or cleanup of
the environment, the impact of Hazardous Substances on property, health or
safety, or the Use or Release of Hazardous Substances.

            "Environmental Reports" means a "Phase I Environmental Site
Assessment" as referred to in the ASTM Standards on Environmental Site
Assessments for Commercial Real Estate, E 1527-94 (and, if necessary, a "Phase
II Environmental Site Assessment"), prepared by an Environmental Auditor and
delivered to Lender and any amendments or supplements thereto delivered to
Lender, and shall also include any other environmental reports delivered to
Lender pursuant to this Agreement and the Environmental Indemnity.

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

                                       7
<PAGE>

            "ERISA Affiliate," at any time, means each trade or business
(whether or not incorporated) that would, at the time, be treated together with
one or more of the Obligors as a single employer under Title IV or Section 302
of ERISA or Section 412 of the Code.

            "Event of Default" has the meaning set forth in Section 7.1.

            "Exception Report" means the report prepared by the Obligors and
attached hereto as Schedule C, setting forth any exceptions to the
representations and warranties set forth in Article IV.

            "Fiscal Quarter" means the three-month period ending on March 31,
June 30, September 30 and December 31 of each year, or such other fiscal quarter
of the Obligors as the Obligors may select from time to time (which selection
shall be subject to the consent of Lender if such change would result in the
avoidance of a Low DSCR Period).

            "Fiscal Year" means the 12-month period ending on December 31 of
each year, or such other fiscal year of the Obligors as the Obligors may select
from time to time (which selection shall be subject to the consent of Lender if
such change would result in the avoidance of a Low DSCR Period).

            "Fitch" means Fitch, Inc. and its successors.

            "Five-Year Floating Rate Loan" has the meaning set forth in Section
1.1(a).

            "Five-Year Floating Rate Loan Amount" means $304,500,000.

            "Five-Year Floating Rate Notes" means those certain promissory notes
made by the Borrowers, jointly and severally, to the order of Lender as of the
Closing Date to evidence the Five-Year Floating Rate Loan, as such promissory
notes may be modified, assigned (in whole or in part) and/or replaced from time
to time in accordance with this Agreement and the other Loan Documents.

            "Five-Year Maturity Date" means the Initial Five-Year Maturity Date,
subject to extension in accordance with Section 1.2(a), or such earlier date as
may result from acceleration in accordance with this Agreement.

            "Fixed Rate" means, with respect to each Fixed Rate Note, the
interest rate of such Fixed Rate Note as indicated therein.

            "Fixed Rate Interest Accrual Period" means, with respect to any
specified Payment Date, the period from and including the previous Payment Date
to but excluding such specified Payment Date. THE FIRST FIXED RATE INTEREST
ACCRUAL PERIOD COMMENCED ON MAY 10, 2001 NOTWITHSTANDING THE FACT THAT SUCH DATE
PRECEDES THE CLOSING DATE. THE BORROWERS UNDERSTAND AND AGREE THAT INTEREST
SHALL BE PAYABLE ON THE INITIAL PAYMENT DATE FOR AN ENTIRE MONTH AS IF THE FIXED
RATE LOANS HAD BEEN ADVANCED ON MAY 10, 2001.

                                       8
<PAGE>

            "Fixed Rate Loans" has the meaning set forth in Section 1.1(a).

            "Fixed Rate Notes" means the Seven-Year Fixed Rate Notes, the
Ten-Year Non-Amortizing Fixed Rate Notes and the Ten-Year Amortizing Fixed Rate
Note.

            "Floating Rate Interest Accrual Period" means, with respect to any
specified Payment Date, the period from and including the 15th day of the
calendar month preceding such Payment Date through but excluding the 15th day of
the calendar month containing such specified Payment Date (or, if either such
15th day is not a Business Day, the Floating Rate Interest Accrual Period shall
be based upon the immediately succeeding Business Day). Notwithstanding the
foregoing, the first Floating Rate Interest Accrual Period shall commence on the
Closing Date.

            "Floating Rate Loans" has the meaning set forth in Section 1.1(a).

            "Floating Rate Notes" means the Five-Year Floating Rate Notes and
the Seven-Year Floating Rate Notes.

            "GAAP" means generally accepted accounting principles in the United
States of America, consistently applied as of the date of the applicable
financial report.

            "Governmental Authority" means any national or federal government,
any state, regional, local or other political subdivision thereof with
jurisdiction and any Person with jurisdiction exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government
(including, without limitation, any court).

            "Ground Lease" means any lease, license or other agreement in which
any Obligor is the lessee (or licensee) thereunder now or hereafter relating to
or affecting the use and occupancy of any Property, or any portion thereof, as
the same may be modified or replaced from time to time in accordance herewith.

            "Ground Leased Parcel" means any portion of any Property with
respect to which any Obligor is the lessee under a Ground Lease.

            "Ground Rent" means rent payable by any Obligor pursuant to a Ground
Lease.

            "Hazardous Substance" means, collectively, (i) any petroleum or
petroleum products or waste oils, explosives, radioactive materials, asbestos,
urea formaldehyde foam insulation, polychlorinated biphenyls ("PCBs") and
lead-based paint, (ii) any chemicals or other materials or substances which are
now or hereafter become defined as or included in the definitions of "hazardous
substances", "hazardous wastes", "hazardous materials", "extremely hazardous
wastes", "restricted hazardous wastes", "toxic substances", "toxic pollutants",
"contaminants", "pollutants" or words of similar import under any Environmental
Law, and (iii) any other chemical or any other material or substance, exposure
to which is now or hereafter prohibited, limited or regulated under any
Environmental Law.

            "Indebtedness" means the Principal Indebtedness, together with
interest and all other obligations and liabilities of Borrowers under the Loan
Documents, including all

                                       9
<PAGE>

Transaction Costs and other amounts due or to become due to Lender pursuant
hereto, under the Notes or in accordance with any of the other Loan Documents,
and all other amounts, sums and expenses reimbursable by Borrowers to Lender
hereunder or pursuant to the Notes or any of the other Loan Documents.

            "Independent Manager" or "Independent Director" of any limited
liability company or corporation, as the case may be, means an individual who is
duly appointed as a member of the board of managers of such limited liability
company or as a director of the board of directors of such corporation, as the
case may be, and who is not, and has never been, and will not while serving as
Independent Manager or Independent Director, be any of the following:

            (i) a member, partner, equityholder, manager, director, officer or
      employee of an Obligor or its members or Affiliates (other than as an
      independent director or manager of an Affiliate of any Obligor that is
      required by a creditor to be a single purpose bankruptcy remote entity);

            (ii) a creditor, supplier or service provider (including provider of
      professional services) to an Obligor or any of its members or Affiliates
      (other than a company that provides professional independent managers and
      which also provides other corporate services to an Obligor or any of its
      Members or Affiliates in the ordinary course of business);

            (iii) a member of the immediate family of any such member, partner,
      equityholder, manager, director, officer, employee, customer, supplier or
      service provider; or

            (iv) a Person that controls (whether directly, indirectly or
      otherwise) any of (i), (ii) or (iii) above.

            "Initial Five-Year Maturity Date" means the Payment Date in April
2004.

            "Initial Payment Date" means the Payment Date in June 2001.

            "Initial Value" means, with respect to each initial Property, the
dollar amount specified opposite the name of such Property in Schedule J, and
with respect to each Qualified Substitute Property, the market value thereof as
determined in accordance with Section 2.3(a)(iii).

            "Insurance Premium Default" has the meaning set forth in Section
3.3(d).

            "Insurance Requirements" means, collectively, (i) all material terms
of any insurance policy required pursuant to this Agreement and (ii) all
material regulations and then-current standards applicable to or affecting any
Property or any portion thereof or any use or condition thereof, which may, at
any time, be recommended by the board of fire underwriters, if any, having
jurisdiction over any Property, or any other body exercising similar functions.

                                       10
<PAGE>

             "Interest Accrual Period" means (i) with respect to the Floating
Rate Loans, the Floating Rate Interest Accrual Period and (ii) with respect to
the Fixed Rate Loan, the Fixed Rate Interest Accrual Period.

            "Interest Determination Date" means, in connection with the
calculation of interest accrued on the Floating Rate Notes for any Floating Rate
Interest Accrual Period, the second Business Day preceding the first day of such
Floating Rate Interest Accrual Period.

            "Interest Rate Cap Agreement" means an interest rate cap agreement
between an Acceptable Counterparty and the Borrowers that satisfies the
requirements set forth in Schedule H.

             "Lease" means any lease, license, letting, concession, occupancy
agreement or other agreement (whether written or oral and whether now or
hereafter in effect) to which any Obligor is a party, existing as of the date
hereof or hereafter entered into by any Obligor, or, for purposes of Section 5.8
only, any sublease to which any Obligor has a consent right, in each case
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 a Property, and every
modification, amendment or other agreement relating to such lease, or other
agreement entered into, in accordance with the terms of the Loan Documents, in
connection with such lease, or other agreement and all agreements related
thereto, and every guarantee of the performance and observance of the covenants,
conditions and agreements to be performed and observed by the other party
thereto.

            "Leasing Commissions" means leasing commissions required to be paid
by any Obligor in connection with the leasing of space to Tenants at the
Properties pursuant to Leases entered into by any Obligor in accordance herewith
and payable in accordance with third-party/arm's-length brokerage agreements or
in accordance with any Property Management Agreement or in accordance with
agreements with any Trizec Affiliate (provided that the commissions payable to a
Trizec Affiliate, including commissions payable to a Trizec Affiliate pursuant
to a Property Management Agreement, are commercially reasonable based upon the
then current brokerage market for the geographic market in which the applicable
Property is located for property of a similar type and quality).

            "Legal Requirements" means:

            (i) all governmental statutes, laws, rules, orders, regulations,
      ordinances, judgments, decrees and injunctions of Governmental Authorities
      (including, without limitation, Environmental Laws) affecting either the
      Obligors or any Property or any portion thereof or the construction,
      ownership, use, alteration or operation thereof, or any portion thereof
      (whether now or hereafter enacted and in force);

            (ii) all permits, licenses and authorizations and regulations
      relating thereto; and

            (iii) all covenants, conditions and restrictions contained in any
      instruments (except Leases and Material Agreements) at any time in force
      (whether or not involving Governmental Authorities) affecting any Property
      or any portion thereof which, in the case of this clause (iii), require
      repairs, modifications or alterations in or to such Property

                                       11
<PAGE>

      or any portion thereof, or in any material way limit or restrict the
      existing use and enjoyment thereof.

            "Lender" has the meaning set forth in the first paragraph of this
Agreement and in Section 9.7.

            "Lender Settlement Event" means an Event of Default resulting from
(i) the Borrowers' failure to pay interest when due, (ii) the Borrowers' failure
to repay principal on the dates due hereunder, (iii) a default by any Obligor
under Section 6.1, Section 6.2, Section 6.3 or 6.4, (iv) any failure by any
Obligor to satisfy the requirement as set forth in clause (q) of the definition
of Single-Purpose Entity, or (v) an Event of Default under Section 7.1(d).

            "LIBOR" means the rate per annum calculated as set forth below:

            (i) On each Interest Determination Date, LIBOR for the applicable
      period will be the rate for deposits in United States dollars for a
      one-month period which appears as the London inter-bank offered rate on
      Telerate Page 3750 as of 11:00 a.m., London time, on such date.

            (ii) With respect to an Interest Determination Date on which no such
      rate appears on Telerate Page 3750 as described above, LIBOR for the
      applicable period will be determined on the basis of the rates at which
      deposits in United States dollars are offered by the Reference Banks at
      approximately 11:00 a.m., London time, on such date to prime banks in the
      London interbank market for a one-month period (each a "Reference Bank
      Rate"). Lender shall request the principal London office of each of the
      Reference Banks to provide a quotation of its Reference Bank Rate. If at
      least two such quotations are provided, LIBOR for such period will be the
      arithmetic mean of such quotations. If fewer than two quotations are
      provided, LIBOR for such period will be the arithmetic mean of the rates
      quoted by major banks in New York City, selected by Lender, at
      approximately 11:00 a.m., New York City time, on such date for loans in
      United States dollars to leading European banks for a one-month period.

            (iii) If, on any Interest Determination Date, Lender is required but
      unable to determine LIBOR in the manner provided in paragraphs (i) and
      (ii) above, LIBOR for the applicable period shall be LIBOR as determined
      on the previous Interest Determination Date.

All percentages resulting from any calculations or determinations referred to in
this definition will be rounded upwards to the nearest multiple of 1/100 of 1%
and all U.S. dollar amounts used in or resulting from such calculations will be
rounded to the nearest cent (with one-half cent or more being rounding upwards).

            "LIBOR Spread" means, with respect to each Floating Rate Note, the
spread over LIBOR applicable to such Floating Rate Note as indicated therein.

            "Lien" means (A) any mortgage, deed of trust, lien (statutory or
other), pledge, hypothecation, assignment, security interest, or any other
encumbrance or charge on or affecting any Collateral or any portion thereof, or
any interest therein (including, without limitation, any

                                       12
<PAGE>

conditional sale or other title retention agreement, any sale-leaseback, any
financing lease or similar transaction having substantially the same economic
effect as any of the foregoing, the filing of any financing statement or similar
instrument under the Uniform Commercial Code or comparable law of any other
jurisdiction, domestic or foreign, and mechanics', materialmen's and other
similar liens and encumbrances) and (B) any option to purchase, right of first
refusal or right of first offer, in each case with respect to all or any portion
of any Property, if such option or right is senior to the Lien of the applicable
Mortgage.

            "Loan" has the meaning set forth in Section 1.1(a).

            "Loan Documents" means this Agreement, the Notes, the Mortgages (and
related financing statements), the Assignments of Rents and Leases, the
Assignment of Contracts, the Environmental Indemnity, the Subordinations of
Property Management Agreement, the Collateral Assignments of Interest Rate Cap
Agreement, the Cash Management Agreement, the Maryland Guarantees, the Unfunded
Obligations Guaranty and all other agreements, instruments, certificates and
documents necessary to effectuate the granting to Lender of first-priority Liens
on the Collateral or otherwise in satisfaction of the requirements of this
Agreement or the other documents listed above, as all of the aforesaid may be
modified or replaced from time to time in accordance herewith.

            "Loss Proceeds" means amounts, awards or payments payable to any
Obligor or Lender in respect of all or any portion of any Property in connection
with a Casualty or Condemnation thereof (after the deduction therefrom and
payment to such Obligor and Lender, respectively, of any and all reasonable
expenses incurred by such Obligor and Lender in the recovery thereof, including
all reasonable attorneys' fees and disbursements, the fees of insurance experts
and adjusters and the costs incurred in any litigation or arbitration with
respect to such Casualty or Condemnation).

            "Loss Proceeds Account" has the meaning set forth in Section 3.6.

            "Low DSCR Period" means the period from (i) the first Business Day
after the last day of any Fiscal Quarter for which DSCR is less than 1.25, to
(ii) the last day of the first Fiscal Quarter thereafter for which DSCR is
greater than or equal to 1.25.

            "Major Lease" means any Lease which (i) covers more than the lesser
of (x) 50,000 rentable square feet and (y) 25% of the rentable square feet
contained in the applicable Property, or (ii) contains an option to purchase or
a preferential right to purchase any portion of the Property (such as a right of
first offer or a right of first refusal), or (iii) is with an Affiliate of any
Obligor as Tenant.

            "Manager Appointment Event" means (i) an Event of Default; or (ii)
the gross negligence, fraud or willful misconduct of any Obligor or a Property
Manager, as the case may be, in its management of the Properties.

            "Maryland Debt" means each loan made by a Borrower to a Maryland
Guarantor.

            "Maryland Guarantees" means the guarantees, each dated as of the
date hereof, by the Maryland Guarantors in favor of Lender.

                                       13
<PAGE>

            "Maryland Guarantors" means (i) initially, the guarantors identified
on the signature page of this Agreement, (ii) from and after any substitution
pursuant to Section 2.3 or assignment and assumption of the Loans pursuant to
Section 2.4, in each case with respect to a Property located in Maryland, a
Single-Purpose Entity that guarantees the Loans in the same manner as the
parties described in clause (i) on the date hereof; and (iii) from and after a
release of an Obligor under Section 2.2, each remaining Maryland Guarantor.

            "Maryland Property" means the Properties commonly referred to as
Silver Spring Center and Silver Spring Metro Plaza, each of which is located in
Silver Spring, Maryland, and any Qualified Substitute Properties located in
Maryland.

            "Material Adverse Effect" means a material adverse effect upon (i)
the business operations, assets or financial condition of the Obligors, taken as
a whole, or (ii) the ability of the Obligors to perform, or of Lender to
enforce, any material provisions of the Mortgages and other Loan Documents
(taken as a whole).

            "Material Agreements" means each contract and agreement (other than
Leases or subleases) relating to the ownership, management, development, use,
operation, leasing, maintenance, repair or improvement of any Property, or
otherwise imposing obligations on any Obligor, under which such Obligor would
have the obligation to pay more than $1,000,000 per annum, except for any
contract or agreement pertaining to the performance of work under or pursuant to
a Lease that has been approved by Lender or that is not required to be approved
by Lender under Section 5.8 hereof.

            "Material Alteration" shall mean any Alteration to be performed by
or on behalf of any Obligor at a Property (other than Tenant Improvements) which
(a) is reasonably likely to have a Material Adverse Effect, (b) is reasonably
expected to cost in excess of 5% of the Allocated Loan Amount of the applicable
Property, based on the Obligors' good faith estimate or (c) is reasonably
anticipated to permit (or is reasonably likely to induce) tenants to terminate
their Leases or abate rent with respect to the lesser of (x) 50,000 rentable
square feet and (y) 25% of the rentable square feet contained in the applicable
Property.

            "Minimum Balance" means (a) so long as no Low DSCR Period is
continuing, zero, and (b) during the continuance of a Low DSCR Period, the
aggregate amount of payments required to be made under Sections 3.2(b)(i)
through (iv) on the next Payment Date, as specified in the most recent notice
from the Servicer to the Cash Management Bank pursuant to the Cash Management
Agreement.

            "Monthly Low DSCR Capital Expenditure Amount" at any time means the
product of (x) the aggregate number of rentable square feet then contained in
the Properties times (y) $0.16 times (z) 1/12.

            "Monthly Low DSCR TI/LC Amount" at any time means the product of (x)
the aggregate number of rentable square feet then contained in the Properties
times (y) $1.50 times (z) 1/12.

            "Moody's" means Moody's Investors Service, Inc. and its successors.

                                       14
<PAGE>

             "Mortgage" means each mortgage, deed of trust and/or deed to secure
debt on a Property, in substantially the form of Exhibit E, granted by an
Obligor to Lender, as the same may from time to time be modified or replaced in
accordance herewith. Each Mortgage shall secure the entire Indebtedness,
provided that in the event that the jurisdiction in which the Property is
located imposes a mortgage recording, intangibles or similar Tax and does not
permit the allocation of indebtedness for the purpose of determining the amount
of such Tax payable, the principal amount secured by such Mortgage shall be
equal to 125% of such Property's Allocated Loan Amount.

            "Multiemployer Plan" means a "multiemployer plan" as defined in
Section 4001(a)(3) of ERISA to which any Obligor or any ERISA Affiliate is
making or accruing an obligation to make contributions or has within any of the
preceding five plan years made or accrued an obligation to make contributions.

            "Net Operating Income" means the excess of Operating Income over
Operating Expenses.

            "NOI Concentration Test" means a test which shall be satisfied if,
at the time of determination, (i) no single Tenant contributes more than 5% of
the aggregate Net Operating Income of the Properties, (ii) no two Tenants each
contribute more than 3% of the aggregate Net Operating Income of the Properties,
and (iii) no proposed Qualified Substitute Property contributes more than 10% of
the aggregate Net Operating Income of the Properties.

            "Nonconsolidation Opinion" means those certain opinion letters,
dated the date hereof, delivered by the Obligors' counsel to Lender and
addressing issues relating to substantive consolidation in bankruptcy.

            "Nonrecourse Carveout Indemnitor" means Trizec or any other party
that assumes the obligations of Nonrecourse Carveout Indemnitor pursuant to
Section 2.4(b).

            "Note" means a Fixed Rate Note or a Floating Rate Note, as the
context may require.

            "Obligors" means the Borrowers and the Maryland Guarantors.

            "Obligor Units" means those certain Units owned in fee by the
applicable Obligor.

            "Officer's Certificate" means a certificate delivered to Lender
which is signed by an authorized officer of the applicable Obligor,
Single-Purpose Equityholder, Nonrecourse Carveout Indemnitor or its managing
member and certifies the information therein to the best of such officer's
knowledge.

            "Operating Expenses" means, for any period, the sum of all
operating, renting, administrative, management, legal and other ordinary
expenses of the Obligors or, without duplication, which come due and payable by
any Obligor during such period in connection with its ownership of the
Properties, determined in accordance with GAAP; provided, however, that (A) such
expenses shall not include (i) depreciation, amortization or other noncash items
(other

                                       15
<PAGE>

than expenses that are due and payable but not yet paid), (ii) interest,
principal or any other sums due and owing with respect to the Loans, (iii)
income taxes or other taxes in the nature of income taxes, (iv) Capital
Expenditures, Leasing Commissions and costs of Tenant Improvements, (v) equity
distributions, or (vi) remittances to any Collateral Account, and (B) the amount
of property taxes and insurance premiums included shall be the amount of such
taxes and insurance premiums properly accrued by the Obligors for such period
(rather than the amount of property taxes and insurance premiums actually
expended during such period).

            "Operating Income" means, for any period, the sum of all operating
income of the Obligors from the Properties during such period, determined in
accordance with GAAP (but without straight-lining of rents), other than (i) Loss
Proceeds (but Operating Income will include rental loss insurance proceeds to
the extent allocable to such period), (ii) any revenue (other than pass throughs
for real estate taxes and operating expenses) attributable to a Lease to the
extent it is paid more than 30 days prior to the due date, (iii) any repayments
received from any third party of principal loaned or advanced to such third
party by any Obligor, (iv) any proceeds resulting from the Transfer of all or
any portion of any Property, and (v) any other extraordinary or non-recurring
items. Termination Fees shall not constitute Operating Income, except that
during each month following any Lease termination with respect to which any
Obligor receives a Termination Fee which is deposited into the TI/LC Reserve
Account in accordance with Section 3.4(e), for so long as the applicable space
generates no rental income, the applicable Obligor shall be deemed to have
received Operating Income in an amount equal to (x) the amount of such
Termination Fee divided by (y) the number of whole and partial months which
would have been contained in the remainder of the term of such Lease, had it not
been terminated, from the effective date of its termination through the date on
which its term was scheduled to expire (including any extension periods).

            "Participation" has the meaning set forth in Section 5.14.

            "Payment Date" means, with respect to each of the Loans and each
Interest Accrual Period, the 10th day of the month in which such Interest
Accrual Period ends (or, if such 10th day is not a Business Day, the first
Business Day immediately preceding such 10th day); provided with respect to each
Floating Rate Interest Accrual Period in which the Borrowers make a payment of
principal in respect of a Floating Rate Loan, the Payment Date for such Floating
Rate Loan and such Interest Accrual Period shall mean the second Business Day
prior to the 15th day of the month in which such Floating Rate Interest Accrual
Period ends.

            "Permits" means all licenses, permits, variances and certificates
used in connection with the ownership, operation, use or occupancy of the
Properties (including, without limitation, business licenses, state health
department licenses, licenses to conduct business and all such other permits,
licenses and rights, obtained from any Governmental Authority or private Person
concerning ownership, operation, use or occupancy of such Property).

            "Permitted Bond Debt" shall mean the Debt evidenced by those certain
Taxable Economic Development Revenue Bonds (TrizecHahn Project), Series 2000 and
secured by that certain Deed to Secure Debt and Security Agreement dated as of
November 1, 2000 given by Development Authority of Cobb County to First Union
National Bank, as Trustee under Trust Indenture dated November 1, 2000 and that
certain Guaranty Agreement dated November 1,

                                       16
<PAGE>

2000 given by TrizecHahn Interstate North Development LLC, a Delaware limited
liability company, as the same may be modified or amended.

            "Permitted Debt" means:

            (i) the Indebtedness;

            (ii) Trade Payables not represented by a note, customarily paid by
      the applicable Obligor within 60 days of incurrence and in fact not more
      than 60 days outstanding (other than amounts disputed by the applicable
      Obligor in good faith, provided that if such disputed amounts in the
      aggregate exceed 1% of the sum of the Allocated Loan Amounts of the
      Properties which are then Collateral for the Loans , Borrower shall have
      deposited with Lender, by the end of such 60-day period, an amount equal
      to 125% of the amount in dispute as security for the payment of such Trade
      Payables or the resolution of such dispute), which are incurred in the
      ordinary course of the applicable Obligor's ownership and operation of the
      Properties, in amounts reasonable and customary for similar properties,
      provided that the sum of the aggregate outstanding Trade Payables shall
      not at any time exceed 3% of the sum of the Allocated Loan Amounts of the
      Properties which are then Collateral for the Loans ;

            (iii) written indemnities entered into in the ordinary course of
      business and on customary terms and conditions in connection with the
      acquisitions of goods or services;

            (iv) financing leases and purchase money debt, in each case incurred
      in the ordinary course of business in connection with the financing or
      purchase of equipment and other personal property used on the Properties,
      provided that the aggregate capitalized amount of all such permitted
      financing leases plus the aggregate amount of all such permitted purchase
      money debt shall not exceed 1% of the sum of the Allocated Loan Amounts of
      the Properties which are then Collateral for the Loans at any time or
      require payments aggregating in excess of 0.5% of the sum of the Allocated
      Loan Amounts of the Properties which are then Collateral for the Loans in
      any one calendar year (notwithstanding the foregoing, financing leases
      and/or purchase money debt shall be permitted in connection with
      energy-saving projects at the Properties, provided that the aggregate
      amount of all such purchase money debt and the aggregate capitalized
      amount of all such financing leases shall be borne entirely by Tenants as
      additional rent or pursuant to a separate agreement with the applicable
      Obligor);

            (v) obligations, not evidenced by a note and not more than 60 days
      past due, in respect of Tenant Improvements, Leasing Commissions and
      Capital Expenditures which are otherwise permitted hereunder;

            (vi) Permitted Seven-Year Refinancing Debt;

            (vii) Permitted Five-Year Refinancing Debt;

            (viii) the Permitted Bond Debt, provided Lender is granted a
      first-priority perfected security interest in the bonds evidencing such
      Debt;

                                       17
<PAGE>

             (ix) the Maryland Debt in amounts not exceeding the respective
      amounts secured by the respective Mortgages; and

            (x) any other Debt which is hereafter approved in writing by Lender
      in its sole discretion and with respect to which Lender shall have
      received Rating Confirmation.

            "Permitted Encumbrances" means:

            (i) the Liens created by the Loan Documents;

            (ii) all Liens and other matters specifically disclosed on Schedule
      B of the Qualified Title Insurance Policies;

            (iii) Liens, if any, for Taxes and other impositions not yet
      delinquent;

            (iv) mechanics', materialmen's or similar Liens, if any, and Liens
      for delinquent Taxes, in each case only if being contested in good faith
      and by appropriate proceedings, provided that neither the Property nor any
      part thereof or interest therein will be in imminent danger of being sold,
      forfeited or lost, and provided further that with respect to any Lien that
      exceeds $750,000, either (a) such Lien is released or discharged of record
      or fully insured over by the title insurance company issuing the Qualified
      Title Insurance Policy within 60 days of the creation of such Lien, or (b)
      the applicable Obligor deposits with Lender, by the expiration of such
      60-day period, an amount equal to 125% of the dollar amount of such Lien
      or a bond in the aforementioned amount from such surety, and upon such
      terms and conditions, as shall be reasonably satisfactory to Lender, as
      security for the payment or release of such Lien. Notwithstanding the
      requirement in the preceding sentence that each Lien be contested by
      appropriate proceedings, in the event that an Obligor contests any such
      Lien in good faith and neither the Property nor any part thereof or
      interest therein will be in imminent danger of being sold, forfeited or
      lost, and such Obligor in its reasonable judgment decides the best way to
      contest such Lien (other than a Lien for delinquent Taxes) is to allow the
      applicable statute of limitations to expire without commencing a legal
      proceeding, then in such event, subject to the other conditions contained
      in the preceding sentence, the applicable Obligor, upon notice to Lender,
      shall be permitted to do so, but shall immediately after the expiration of
      the statute of limitations commencing such action as is necessary to
      strike the Lien, if any, which may encumber title to the Property;

            (v) Liens on personal property securing financing leases or purchase
      money debt permitted under clause (iv) in the definition of Permitted
      Debt;

            (vi) rights of existing and future Tenants as tenants only pursuant
      to written Leases existing as of the date hereof or entered into in
      conformity with the provisions of this Agreement;

            (vii) zoning restrictions, building codes, land use laws and other
      Legal Requirements regulating the use or occupancy of Properties and
      easements, rights-of-way, covenants, conditions, restrictions on use of
      real property and other similar matters affecting the Properties which do
      not have a Material Adverse Effect;

                                       18
<PAGE>

            (viii) Liens created by the documents evidencing and securing the
      Permitted Bond Debt;

            (ix) Ground Leases existing on the date hereof or hereafter approved
      by Lender; and

            (x) any other Liens which are hereafter approved in writing by
      Lender in its sole discretion and with respect to which Lender shall have
      received Rating Confirmation.

            "Permitted Five-Year Refinancing Debt" means floating or fixed rate
debt incurred by the Borrowers on or prior to the Five-Year Maturity Date
(following not less than 30 days' prior written notice to Lender, and subject to
the restrictions on prepayment described herein) to refinance in full the
then-outstanding principal balance of the Five-Year Floating Rate Loan and/or
the Seven-Year Fixed Rate Loan Principal Reduction, which debt shall be secured
by the Collateral (other than any Defeasance Collateral) with a first mortgage
lien on a pari passu basis with the Loan and shall satisfy the following
conditions:

            (i) no Event of Default or material monetary Default shall be
      continuing at the time such debt is incurred;

            (ii) the principal amount of such debt shall not exceed the sum of
      (a) if the Five-Year Floating Rate Loan is refinanced with Permitted
      Five-Year Refinancing Debt, the lesser of (i) the outstanding principal
      balance of the Five-Year Floating Rate Loan and (ii) the initial principal
      balance of the Five-Year Floating Rate Loan, plus (b) if the Seven-Year
      Fixed Rate Loan Principal Reduction is refinanced with Permitted Five-Year
      Refinancing Debt, the Seven-Year Fixed Rate Loan Principal Reduction, plus
      (c) all reasonable out-of-pocket transaction costs incurred by the
      Borrowers in connection with the Permitted Five-Year Refinancing Debt;

            (iii) such debt shall have a maturity date which shall be no earlier
      than the Ten-Year Maturity Date and no later than the second anniversary
      of the Ten-Year Maturity Date, shall not prohibit prepayment (or, if
      prepayment is prohibited, shall not prohibit defeasance) at any time on or
      after the Ten-Year Maturity Date and shall not impose a prepayment premium
      or similar fee on any such prepayment in excess of reasonable and
      customary amounts;

            (iv) if such debt bears a fixed rate of interest, it shall amortize
      on not more than a 30-year schedule;

            (v) each holder of such debt shall have executed and delivered to
      Lender an intercreditor agreement in form and substance reasonably
      satisfactory to Lender and such holder which shall provide, inter alia,
      that such holder may not exercise remedies thereunder without the consent
      of the Servicer;

            (vi) Lender shall have received Rating Confirmation with respect to
      the incurrence of such debt, the identity of its holder and the form and
      substance of its documentation and the related intercreditor agreement
      (Lender hereby agrees to

                                       19
<PAGE>

      affirmatively recommend to the Rating Agencies that they grant Rating
      Confirmation if Lender determines that the conditions described in this
      definition (other than such Rating Confirmation requirement) have been
      satisfied); and

            (vii) the Borrowers shall have paid all reasonable out-of-pocket
      expenses of Lender in connection with the Borrowers' incurrence of such
      debt including, without limitation, the reasonable fees and expenses of
      legal counsel and the Rating Agencies and the reasonable out-of-pocket
      expenses of the Servicer.

            "Permitted Investments" means the following, subject to
qualifications hereinafter set forth:

            (i) obligations of, or obligations guaranteed as to principal and
      interest by, the U.S. government or any agency or instrumentality thereof,
      when such obligations are backed by the full faith and credit of the
      United States of America;

            (ii) federal funds, unsecured certificates of deposit, time
      deposits, banker's acceptances, and repurchase agreements having
      maturities of not more than 365 days of any bank, the short term debt
      obligations of which are rated A-1+ (or the equivalent);

            (iii) deposits that are fully insured by the Federal Deposit
      Insurance Corp. (FDIC);

            (iv) debt obligations that are rated AAA (or the equivalent) by each
      of the Rating Agencies;

            (v) commercial paper rated A-1+ (or the equivalent) by each of the
      Rating Agencies;

            (vi) investment in money market funds rated AAAm or AAAm-G (or the
      equivalent) by each of the Rating Agencies; and

            (vii) such other investments as to which Lender shall have received
      Rating Confirmation.

Notwithstanding the foregoing, "Permitted Investments" (i) shall exclude any
security with the Standard & Poor's "r" symbol (or any other Rating Agency's
corresponding symbol) attached to the rating (indicating high volatility or
dramatic fluctuations in their expected returns because of market risk), as well
as any mortgage-backed securities and any security of the type commonly known as
"strips"; (ii) shall not have maturities in excess of one year; (iii) shall be
limited to those instruments that have a predetermined fixed dollar of principal
due at maturity that cannot vary or change; and (iv) shall exclude any
investment where the right to receive principal and interest derived from the
underlying investment provide a yield to maturity in excess of 120% of the yield
to maturity at par of such underlying investment. Interest may either be fixed
or variable, and any variable interest must be tied to a single interest rate
index plus a single fixed spread (if any), and move proportionately with that
index. No investment shall be made which requires a payment above par for an
obligation if the obligation may be prepaid at the option of

                                       20
<PAGE>

the issuer thereof prior to its maturity. All investments shall mature or be
redeemable upon the option of the holder thereof on or prior to the earlier of
(x) three months from the date of their purchase or (y) the Business Day
preceding the day before the date such amounts are required to be applied
hereunder.

            "Permitted Seven-Year Refinancing Debt" means floating or fixed rate
debt incurred by the Borrowers on or prior to the Seven-Year Maturity Date
(following not less than 30 days' prior written notice to Lender, and subject to
the restrictions on prepayment described herein) to refinance in full the
then-outstanding principal balance of the Seven-Year Floating Rate Loan and/or
the Seven-Year Fixed Rate Loan, which debt shall be secured by the Collateral
(other than any Defeasance Collateral) with a first mortgage lien on a pari
passu basis with the Loan and shall satisfy the following conditions:

            (i) no Event of Default or material monetary Default shall be
      continuing at the time such debt is incurred;

            (ii) the principal amount of such debt shall not exceed the sum of
      (a) the lesser of (i) the outstanding principal balance of the Seven-Year
      Floating Rate Loan and (ii) the initial principal balance of the
      Seven-Year Floating Rate Loan, plus (b) the lesser of (i) the outstanding
      principal balance of the Seven-Year Fixed-Rate Loan and (ii) the initial
      principal balance of the Seven-Year Fixed Rate Loan minus (after the
      Payment Date in April 2006 or earlier prepayment of the Seven-Year Fixed
      Rate Loan Principal Reduction as permitted hereunder) the Seven-Year Fixed
      Rate Loan Principal Reduction, plus (c) all reasonable out-of-pocket
      transaction costs incurred by the Borrowers in connection with the
      Permitted Seven-Year Refinancing Debt;

            (iii) such debt shall have a maturity date which shall be no earlier
      than the Ten-Year Maturity Date and no later than the fourth anniversary
      of the Ten-Year Maturity Date, shall not prohibit prepayment (or, if
      prepayment is prohibited, shall not prohibit defeasance) from and after a
      date that is no later than the Ten-Year Maturity Date and shall not impose
      a prepayment premium or similar fee on any such prepayment in excess of
      reasonable and customary amounts;

            (iv) if such debt bears a fixed rate of interest, it shall amortize
      on not more than a 30-year schedule;

            (v) each holder of such debt shall have executed and delivered to
      Lender an intercreditor agreement in form and substance reasonably
      satisfactory to Lender and such holder which shall provide, inter alia,
      that such holder may not exercise remedies thereunder without the consent
      of the Servicer;

            (vi) Lender shall have received Rating Confirmation with respect to
      the incurrence of such debt, the identity of its holder and the form and
      substance of its documentation and intercreditor arrangements (Lender
      hereby agrees to affirmatively recommend to the Rating Agencies that they
      grant Rating Confirmation if Lender determines that the conditions
      described in this definition (other than such Rating Confirmation
      requirement) have been satisfied); and

                                       21
<PAGE>

            (vii) the Borrowers shall have paid all reasonable out-of-pocket
      expenses of Lender in connection with the Borrowers' incurrence of such
      debt including, without limitation, the reasonable fees and expenses of
      legal counsel and the Rating Agencies and the reasonable out-of-pocket
      expenses of the Servicer.

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

            "Plan" means an employee benefit plan other than a Multiemployer
Plan, (i) which is maintained for employees of any Obligor or any ERISA
Affiliate and which is subject to Title IV of ERISA or (ii) with respect to
which any Obligor or any ERISA Affiliate could be subjected to any liability
under Title IV of ERISA (including Section 4069 of ERISA).

            "Plan Assets" means assets of any employee benefit plan subject to
Part 4, Subtitle A, Title I of ERISA.

            "Policies" has the meaning set forth in Section 5.16(b).

            "Prepayment Premium" means, with respect to any prepayment of the
Seven-Year Floating Rate Loan from and including the first Payment Date
following the first anniversary of the Closing Date to but excluding the first
Payment Date following the fourth anniversary of the Closing Date, the product
of (x) the amount so prepaid times (y) the applicable Prepayment Premium
Percentage.

            "Prepayment Premium Percentage" means (i) from and including the
first Payment Date following the first anniversary of the Closing Date to but
excluding the first Payment Date following the second anniversary of the Closing
Date, 2%, (ii) from and including the first Payment Date following the second
anniversary of the Closing Date to but excluding the first Payment Date
following the third anniversary of the Payment Date, 1%, and (iii) from and
including the first Payment Date following the third anniversary of the Closing
Date to but excluding the first Payment Date following the fourth anniversary of
the Closing Date, 0.5%.

            "Prime Rate" means the "prime rate" published in the "Money Rates"
section of The Wall Street Journal. If The Wall Street Journal ceases to publish
the "prime rate," then Lender shall select an equivalent publication that
publishes such "prime rate," and if such "prime rate" is no longer generally
published or is limited, regulated or administered by a governmental or
quasi-governmental body, then Lender shall reasonably select a comparable
interest rate index.

            "Principal Indebtedness" means the aggregate principal balance of
the Loan outstanding from time to time.

            "Properties" means each property listed on Schedule A, together with
all buildings and other improvements thereon owned by any Obligor and all
interests of any Obligor under any related Ground Lease and any greater interest
Borrower may hereafter have therein,

                                       22
<PAGE>

and each Qualified Substitute Property hereafter acquired by any Obligor and
added to the Collateral in accordance herewith.

            "Property Management Agreement" means a property management
agreement entered into by an Obligor and any Property Manager and approved by
Lender as set forth in Section 5.11, pursuant to which the applicable Property
Manager is to provide property management and other services with respect to one
or more of the Properties.

            "Property Manager" shall mean a property manager appointed pursuant
to Section 5.11.

            "Property Material Adverse Effect" means (a) a Material Adverse
Effect or (b) a material adverse effect on the value, use or operation of any
Property.

            "Property Substitution" has the meaning set forth in Section 2.3(a).

            "Qualified Adjuster" means an insurance adjustment company selected
by Lender and approved by the Obligors (such approval shall not be unreasonably
withheld, conditioned or delayed and shall be deemed to have been given if
Borrowers shall not have notified Lender in writing of their disapproval, the
reasons therefor and a proposed Qualified Adjuster within 10 Business Days after
the Obligors' receipt of Lender's selection).

            "Qualified Equityholder" means (i) TZH, (ii) Trizec, (iii) THUSA,
(iv) any Trizec Affiliate, (v) a real estate investment trust or other real
estate operating company, in either case that is reasonably experienced in the
ownership of office properties and has an investment grade rating from each of
the Rating Agencies, (vi) a pension fund with in excess of $10 billion in
assets, (vii) an entity with a current net worth of $1.5 billion or more and
which controls office assets of $2.5 billion or more (such net worth and assets
under control to be calculated exclusive of the Properties), or (viii) any other
entity reasonably acceptable to Lender with respect to which Rating Confirmation
is received.

            "Qualified Letter of Credit" means a clean, irrevocable,
unconditional, transferable letter of credit with respect to which no Obligor
has any reimbursement obligation, payable on sight draft only accompanied by a
statement by Lender in the form attached hereto as Exhibit B, in favor of Lender
and entitling Lender to draw thereon in New York, New York, issued by a domestic
bank or the U.S. agency or branch of a foreign bank the long-term unsecured debt
rating of which is not less than AA (or the equivalent) from each of the Rating
Agencies. The following terms and conditions shall apply to each Qualified
Letter of Credit:

           (i) Each such Qualified Letter of Credit shall expressly provide that
      partial draws are permitted thereunder.

           (ii) Each such Qualified Letter of Credit shall expressly provide
      that it is freely transferable to any successor or assign of Lender.

           (iii) Lender shall be entitled to draw on any Qualified Letter of
      Credit immediately and without further notice (a) upon the occurrence and
      during the continuance of any Event of Default, (b) if the Obligors shall
      not have delivered to

                                       23
<PAGE>

      Lender, no less than 30 days prior to the expiration date of such
      Qualified Letter of Credit (including any renewal or extension thereof), a
      renewal or extension of such Qualified Letter of Credit or a replacement
      Qualified Letter of Credit for a term of not less than one year (or
      through the date that is 30 days beyond the Maturity Date, whichever is
      earlier), or (c) if the credit rating or financial condition of the
      issuing bank falls below the ratings set forth above in this definition
      and the Obligors fail to provide a replacement Qualified Letter of Credit
      to Lender within 15 days after written notice from Lender to the Obligors.
      Lender shall apply any proceeds from any letter of credit provided to
      Lender in accordance with Sections 7.2, 7.3 and 7.4 hereof.

            "Qualified Manager" means a property manager which, together with
all of its Affiliates, manages no fewer than 20 office buildings of the same or
better quality as the applicable Property or Properties, containing in the
aggregate at least 5 million rentable square feet (exclusive of the applicable
Property or Properties), with significant experience in the applicable market or
otherwise reasonably acceptable to Lender, or with respect to which Lender shall
have received Rating Confirmation.

            "Qualified Substitute Property" means real property located in the
United States of America, together with all buildings and other improvements
thereon and leasehold interests therein, added to the Collateral in connection
with a Property Substitution pursuant to Section 2.3 after satisfaction of the
conditions described in such Sections and in Section 8.2.

            "Qualified Successor Borrower" means a Single-Purpose Entity that is
wholly owned (directly or indirectly) by one or more Qualified Equityholders and
that assumes all or a portion of the Loans in connection with a Property
Substitution pursuant to Section 2.3 or an Assumption pursuant to Section 2.4.

            "Qualified Survey" means, with respect to each Property, a current
title survey of the Property, certified to the title company issuing the
Qualified Title Insurance Policies and Lender and their respective successors
and assigns, that is acceptable to Lender based on commercially reasonable
lending standards.

            "Qualified Title Insurance Policy" means, with respect to each
Property, an ALTA extended coverage mortgagee's title insurance policy (1970
unmodified form, where issuable) acceptable to Lender based on commercially
reasonable lending standards, and (a) issued by one or more title insurance
companies reasonably satisfactory to Lender, which policy or policies shall name
Lender and its successors and assigns as the insured party, (b) insuring the
respective Mortgage as being a first and prior lien upon such Property, (c)
showing no encumbrances against such Property (whether junior or superior to the
Mortgage) that are unacceptable to Lender except for encumbrances set forth in
clauses (iii), (v) and (vi) of the definition of "Permitted Encumbrances", (d)
in an amount equal to at least the Allocated Loan Amount of such Property, and
(e) otherwise in form and substance reasonably acceptable to Lender.

            "Rating Agency" means S&P, Moody's and Fitch.

                                       24
<PAGE>

            "Rating Confirmation" means, with respect to any proposed action,
confirmation in writing from each of the Rating Agencies that such action shall
not result, in and of itself, in a downgrade, withdrawal or qualification of any
rating then assigned to any outstanding Certificates. No Rating Confirmation
after the occurrence of a Securitization shall be regarded as having been
received unless and until any conditions imposed on its effectiveness by any
Rating Agency shall have been satisfied.

            "Reference Banks" means four major banks in the London interbank
market selected by Lender.

            "Release" means any release, spill, emission, leaking, pumping,
injection, deposit, disposal, discharge, dispersal, leaching or migration into
the indoor or outdoor environment (including, without limitation, the movement
of Hazardous Substances through ambient air, soil, surface water, ground water,
wetlands, land or subsurface strata) in violation of Environmental Laws.

            "Release Premium" of a Property at any time means the Release Price
of such Property minus its Allocated Loan Amount.

            "Release Price" means, with respect to each Property, the sum of the
following:

            (i) An amount equal to 100% of that portion of the Allocated Loan
      Amount of such Property which, when subtracted from the sum of the
      Allocated Loan Amounts of all Properties (the "Total Allocated Loan
      Amount") immediately prior to such release, reduces the Total Allocated
      Loan Amount to 90% of the Aggregate Loan Amount (or a greater percentage,
      if such portion of the Allocated Loan Amount of such Property is
      insufficient to reduce the Total Allocated Loan Amount to 90% of the
      Aggregate Loan Amount); plus

            (ii) An amount equal to 105% of that portion of the remainder of the
      Allocated Loan Amount of such Property (i.e., that portion of the
      Allocated Loan Amount not accounted for in clause (i) above) of such
      Property which, when subtracted from the Total Allocated Loan Amount, as
      reduced in accordance with clause (i) above, further reduces such sum to
      85% of the Aggregate Loan Amount (or a greater percentage, if such portion
      of the Allocated Loan Amount of such Property is sufficient to reduce the
      Total Allocated Loan Amount to less than 90% of the Aggregate Loan Amount
      but is insufficient to reduce the Total Allocated Loan Amount to 85% of
      the Aggregate Loan Amount); plus

            (iii) An amount equal to 110% of that portion of the remainder of
      the Allocated Loan Amount of such Property (i.e., that portion of such
      Allocated Loan Amount not accounted for in clauses (i) and (ii) above) of
      such Property which, when subtracted from the Total Allocated Loan Amount,
      as reduced in accordance with clauses (i) and (ii) above, further reduces
      such sum to 80% of the Aggregate Loan Amount (or a greater percentage, if
      such portion of the Allocated Loan Amount of such Property is sufficient
      to reduce the Total Allocated Loan Amount to less than 85% of the
      Aggregate Loan

                                       25
<PAGE>

      Amount but is insufficient to reduce the Total Allocated Loan Amount to
      80% of the Aggregate Loan Amount); plus

            (iv) An amount equal to 115% of that portion of the remainder of the
      Allocated Loan Amount of such Property (i.e., that portion of such
      Allocated Loan Amount not accounted for in clauses (i), (ii) and (iii)
      above) of such Property which, when subtracted from the Total Allocated
      Loan Amounts, as reduced in accordance with clauses (i), (ii) and (iii)
      above, further reduces such sum to 70% of the Aggregate Loan Amount (or a
      greater percentage, if such portion of the Allocated Loan Amount of such
      Property is sufficient to reduce the Total Allocated Loan Amount to less
      than 80% of the Aggregate Loan Amount but is insufficient to reduce the
      Total Allocated Loan Amount to 70% of the Aggregate Loan Amount); plus

            (v) An amount equal to 125% of any remainder of the Allocated Loan
      Amount of such Property (i.e., that portion of such Allocated Loan Amount
      not accounted for in clauses (i), (ii), (iii) and (iv) above) of such
      Property.

The Release Price of any Property shall be reduced by the amount of any Loss
Proceeds with respect to such Property which are applied toward the reduction of
the Indebtedness in accordance herewith.

            "Replaced Property" shall have the meaning set forth in Section
2.3(a).

            "Representative Obligor" has the meaning set forth in Section
9.4(a).

            "Revenues" means all rents, rent equivalents, moneys payable as
damages pursuant to a Lease or in lieu of rent or rent equivalents, royalties
(including all oil and gas or other mineral royalties and bonuses), income,
receivables, receipts, revenues, deposits (including security, utility and other
deposits), accounts, cash, issues, profits, charges for services rendered, and
other consideration of whatever form or nature received by or paid to or for the
account of or benefit of the Obligors from any and all sources including,
without limitation, any obligations now existing or hereafter arising or created
out of the sale, lease, sublease, license, concession or other grant of the
right of the use and occupancy of property or rendering of services by the
Obligors and proceeds, if any, from business interruption or other loss of
income insurance.

            "S&P" means Standard & Poor's Ratings Services, a division of the
McGraw-Hill Companies, Inc., and its successors.

            "Securitization" means a transaction in which all or any portion of
any of the Loans and the Loan Documents is deposited into one or more trusts
which issue Certificates to investors, or a similar transaction.

            "Service" means the Internal Revenue Service or any successor agency
thereto.

            "Servicer" means the entity or entities appointed by Lender from
time to time to serve as servicer and/or special servicer of the Loans. If at
any time no entity shall be so appointed, the term "Servicer" shall be deemed to
refer to Lender.

                                       26
<PAGE>

            "Seven-Year Fixed Rate Loan" has the meaning set forth in Section
1.1(a).

            "Seven-Year Fixed Rate Loan Amount" means $374,200,000.

            "Seven-Year Fixed Rate Loan Principal Reduction" has the meaning set
forth in Section 1.3(a).

             "Seven-Year Fixed Rate Notes" means those certain promissory notes
made by the Borrowers, jointly and severally, to the order of Lender as of the
Closing Date to evidence the Seven-Year Fixed Rate Loan, as such promissory
notes may be modified, assigned (in whole or in part) and/or replaced from time
to time in accordance with this Agreement and the other Loan Documents.

            "Seven-Year Floating Rate Loan" has the meaning set forth in Section
1.1(a).

            "Seven-Year Floating Rate Loan Amount" means $280,200,000.

            "Seven-Year Floating Rate Notes" means those certain promissory
notes made by the Borrowers, jointly and severally, to the order of Lender as of
the Closing Date to evidence the Seven-Year Floating Rate Loan, as such
promissory notes may be modified, assigned (in whole or in part) and/or replaced
from time to time in accordance with this Agreement and the other Loan
Documents.

            "Seven-Year Maturity Date" means the Payment Date in March 2008, or
such earlier date as may result from acceleration in accordance with the terms
of this Agreement.

            "Single-Purpose Entity" means a Person which (a) was formed solely
for the purpose of acquiring, and directly holding an ownership interest in, one
or more of the Properties or, in the case of a Single-Purpose Equityholder, an
ownership interest in an Obligor or in the case of a Maryland Guarantor, an
ownership interest in one or more of the Properties and an ownership interest in
a Borrower, (b) has not and does not engage in any business unrelated to the
Properties or its ownership interest in a Borrower, (c) has not and does not
have any assets other than those related to its interest in the Properties or a
Borrower, as the case may be, and/or Defeasance Collateral, if applicable, and
has not had any material Debt other than Debt related to the Property, and will
not have any Debt other than Permitted Debt, (d) has maintained (in all respects
material to the conclusions in the Non-Consolidation Opinion) and will maintain
books, records, accounts, financial statements, stationery, invoices, checks or
the like which are separate and apart from those of any other Person (except
that any Obligor's or Single-Purpose Equityholder's financial position, assets,
results of operations and cash flows may be included in the consolidated
financial statements of an Affiliate of such Obligor or Single-Purpose
Equityholder in accordance with GAAP, provided that any such consolidated
financial statements shall contain a note indicating that such Obligor or
Single-Purpose Equityholder and its Affiliates are separate legal entities and
maintain records, books of account and bank accounts separate and apart from any
other Person), (e) is subject to and complies with all of the limitations on
powers and separateness requirements set forth in the organizational
documentation of such Obligor or Single-Purpose Equityholder as of the Closing
Date, (f) has held and holds itself out as being a Person separate and apart
from each other Person, has conducted and conducts its business in its own name
(except for services rendered under a

                                       27
<PAGE>

management agreement with an Affiliate, so long as the manager, or equivalent
thereof, under such management agreement holds itself out as an agent of such
Obligor), and has exercised and exercises reasonable efforts to correct any
known misunderstanding actually known to it regarding its separate identity, and
has maintained and maintains an arm's length relationship with its Affiliates,
(g) has paid and will pay its own liabilities out of its own funds and
reasonably allocates any overhead that is shared with an Affiliate, including,
but not limited to, paying for shared office space and services performed by any
officer or employee of an Affiliate, (h) has maintained and maintains a
sufficient number of employees in light of its contemplated business operations,
(i) has conducted and conducts its business so that the assumptions made with
respect to it in the Nonconsolidation Opinion shall at all times be true and
correct in all material respects, (j) in the case of a limited partnership, has
observed and observes all applicable limited partnership formalities in all
material respects, (k) in the case of a limited liability company, has observed
and observes all applicable limited liability company formalities in all
material respects, (l) has not and does not commingle its assets with those of
any other Person, (m) except for the Maryland Guarantors pursuant to the
Maryland Guarantees, has not and does not guarantee or become obligated for the
debts of any other Person or hold out its credit as being available to satisfy
the obligations or securities of others, (n) has not and does not acquire
obligations or securities of its members, (o) has not and will not pledge its
assets for the benefit of any other Person and will not make any loans or
advances to any Person (other than the Loan), (p) has maintained and will
maintain adequate capital in light of its contemplated business operations, (q)
if such Person is not a limited liability company formed under the laws of the
state of Delaware, has a Single-Purpose Equityholder, and (r) has at all times
while the Loan is outstanding (unless and until it is released from its
obligations hereunder in accordance herewith) two Independent Managers on its
Board of Managers or a Single-Purpose Equityholder that has two Independent
Managers on its Board of Managers and has an operating agreement or a limited
partnership agreement, as the case may be, which provides that for so long as
the Loan is outstanding (unless and until it is released from its obligations
hereunder in accordance herewith), the limited liability company or the limited
partnership, as the case may be, shall not take or consent to any of the
following actions except to the extent expressly permitted in this Agreement and
the other Loan Documents:

            (i) the dissolution, liquidation, consolidation, merger or sale of
      all or substantially all of its assets and, in the case of a
      Single-Purpose Equityholder, the assets of the applicable Obligor;

            (ii) the engagement by it and, in the case of a Single-Purpose
      Equityholder, the applicable Obligor, in any business other than the
      acquisition, development, management, leasing, ownership, maintenance and
      operation of the Properties and activities incidental thereto, and the
      engagement by any Single-Purpose Equityholder in any business other than
      the ownership interest in an Obligor;

            (iii) the filing, or consent to the filing, of a bankruptcy or
      insolvency petition, any general assignment for the benefit of creditors
      or the institution of any other insolvency proceeding, or the seeking or
      consenting to the appointment of a receiver, liquidator, assignee,
      trustee, sequestrator, custodian or any similar official for any Obligor
      or a substantial portion of its properties, in respect of it and, in the
      case of a Single-Purpose Equityholder, the applicable Obligor, without the
      approval of both of its

                                       28
<PAGE>

            Independent Managers (or, in the case of any Obligor that is not a
      Delaware limited liability company, the approval of both of the
      Independent Managers of the applicable Special-Purpose Equityholder); and

            (iv) the amendment or modification of any provision of its
      organizational documents and, in the case of a Single-Purpose
      Equityholder, the organizational documents of the applicable Obligor,
      relating to qualification as a "Single-Purpose Entity".

            "Single-Purpose Equityholder" means a Single-Purpose Entity that is
a limited liability company formed under the laws of the state of Delaware and
that serves as a special-purpose member of an Obligor.

            "State Concentration Test" means a test which shall be satisfied if,
at the time of determination, (i) the sum of the Allocated Loan Amounts in any
one state shall not exceed 40% of the Principal Indebtedness, (ii) no two states
have an aggregate Allocated Loan Amount of more than 60% of the Principal
Indebtedness, (iii) the sum of the Allocated Loan Amounts of Properties located
in Houston, Texas does not exceed more than 35% of the Principal Indebtedness,
and (iv) the sum of the Allocated Loan Amounts of Properties located in Atlanta,
Georgia shall not exceed more than 20% of the Principal Indebtedness.

            "Subordination of Property Management Agreement" means a
Subordination of Property Management Agreement, in substantially the form of
Exhibit C, as the same may from time to time be modified or replaced in
accordance herewith.

            "Substitution DSCR Improvement" means (x) with respect to any
Property Substitution following which the sum of the Allocated Loan Amounts of
all Qualified Substitute Properties would be less than 15% of the Aggregate Loan
Amount, zero, and (y) with respect to any Property Substitution following which
the sum of the Allocated Loan Amounts of all Qualified Substitute Properties
would equal or exceed 15% of the Aggregate Loan Amount, 0.1 (e.g., from a DSCR
of 1.52 to a DSCR of 1.62).

            "Substitution DSCR Threshold" means, at the time of any Property
Substitution, the greater of (x) the applicable Threshold DSCR and (y) DSCR for
the Fiscal Quarter then most recently ended.

            "Sweep Account" has the meaning set forth in Section 3.1(a).

            "Sweep Agreement" has the meaning set forth in Section 3.1(a).

            "Sweep Bank" means Bank of America, or any other depository
institution selected by the Obligors and reasonably approved by Lender (or
selected by Lender during the continuance of an Event of Default) in which
Eligible Accounts may be maintained.

             "Tax, Insurance and Ground Rents Escrow Account" has the meaning
set forth in Section 3.3(a).

                                       29
<PAGE>

             "Taxes" means all real estate and personal property taxes,
assessments, fees, taxes on rents or rentals, water rates or sewer rents,
facilities and other governmental, municipal and utility district charges or
other similar taxes or assessments now or hereafter levied or assessed or
imposed against the Properties or an Obligor with respect to the Properties or
rents therefrom or which may become Liens upon the Properties, without deduction
for any amounts reimbursable to the applicable Obligor by third parties.

            "Telerate Page 3750" means the display designated as "Page 3750" on
the Dow Jones Telerate Service (or such other page as may replace Page 3750 on
that service or such other service as may be nominated by the British Bankers'
Association as the information vendor for the purpose of displaying British
Bankers' Association Interest Settlement Rates for U.S. Dollar deposits).

            "Ten-Year Amortizing Fixed Rate Loan" has the meaning set forth in
Section 1.1(a).

            "Ten-Year Amortizing Fixed Rate Loan Amount" means $74,900,000.

            "Ten-Year Amortizing Fixed Rate Note" means that certain promissory
note made by the Borrowers, jointly and severally, to the order of Lender as of
the Closing Date to evidence the Ten-Year Amortizing Fixed Rate Loan, as such
promissory note may be modified, assigned (in whole or in part) and/or replaced
from time to time in accordance with this Agreement and the other Loan
Documents.

            "Ten-Year Non-Amortizing Fixed Rate Loan" has the meaning set forth
in Section 1.1(a).

            "Ten-Year Non-Amortizing Fixed Rate Loan Amount" means $406,200,000.

            "Ten-Year Non-Amortizing Fixed Rate Notes" means those certain
promissory notes made by the Borrowers, jointly and severally, to the order of
Lender as of the Closing Date to evidence the Ten-Year Non-Amortizing Fixed Rate
Loan, as such promissory notes may be modified, assigned (in whole or in part)
and/or replaced from time to time in accordance with this Agreement and the
other Loan Documents.

            "Ten-Year Maturity Date" means the Payment Date in May 2011, or such
earlier date as may result from acceleration in accordance with the terms of
this Agreement.

            "Tenant" means any Person liable by contract or otherwise to pay
monies (including a percentage of gross income, revenue or profits) pursuant to
a Lease.

            "Tenant Improvements" means, collectively, (i) tenant improvements
to be undertaken for any Tenant which are required to be completed by or on
behalf of an Obligor pursuant to the terms of such Tenant's Lease, and (ii)
allowances to be paid to a Tenant pursuant to such Tenant's Lease in connection
with such Tenant's construction of its tenant improvements at the applicable
Property.

            "Tenant Notice" has the meaning provided in Section 3.1(b).

                                       30
<PAGE>

            "Termination Fee" means any amount paid by a Tenant in connection
with the cancellation or termination of such Tenant's Lease pursuant to the
terms of such Lease.

            "Threshold DSCR" means 1.63.

            "TI/LC Reserve Account" has the meaning set forth in Section 3.4.

            "Total Allocated Loan Amount" has the meaning set forth in the
definition of "Release Price".

            "Trade Payables" means unsecured amounts payable by or on behalf of
an Obligor for or in respect of the operation of a Property in the ordinary
course and which would under GAAP be regarded as ordinary expenses, including
amounts payable to suppliers, vendors, contractors, mechanics, materialmen or
other Persons providing property or services to a Property or an Obligor but
excluding Taxes.

            "Transaction" means, collectively, the transaction contemplated by
the Loan Documents.

            "Transaction Costs" means all actual out-of-pocket costs and
expenses incurred by Lender and/or the Obligors in connection with the
Transaction and the Securitization (including, without limitation, third-party
origination costs, legal fees and disbursements, accounting fees, third-party
report costs, recording fees, title insurance premiums, lien searches, survey
costs, Rating Agency fees and printing costs) and the costs and expenses
described in Section 9.17.

            "Transfer" means, with respect to any Property, the pledge, sale or
other whole or partial conveyance of such Property or any direct or indirect
interest therein to a third party, other than a Lease.

            "Trizec" means TrizecHahn Office Properties Inc., a Delaware
corporation, or any successor thereto by merger, conversion, consolidation,
reorganization or other form of business combination.

            "Trizec Affiliate" means (i) TZH or any successor thereto by merger,
conversion, consolidation, reorganization or other form of business combination;
or (ii) Trizec or any successor thereto by merger, conversion, consolidation,
reorganization or other form of business combination; or (iii) THUSA or any
successor thereto by merger, conversation, consolidation, reorganization or
other form of business combination; or (iv) any entity which directly or
indirectly has control over, is controlled by or is under common control with
TZH (or any successor thereto by merger, conversion, consolidation,
reorganization or other form of business combination), Trizec (or any successor
thereto by merger, conversion, consolidation, reorganization or other form of
business combination) or THUSA (or any successor thereto by merger, conversion,
consolidation, reorganization or other form of business combination).

            "THUSA" means TrizecHahn (USA) Corporation, a Delaware corporation,
or any successor thereto by merger, conversion, consolidation, reorganization or
other form of business combination.

                                       31
<PAGE>

            "TZH" means Trizec Hahn Corporation, a Canadian corporation or any
successor thereto by merger, conversion, consolidation, reorganization or other
form of business combination.

            "Undefeased Note" has the meaning set forth in Section 2.2(a).

            "Unfunded Obligations Guaranty" means the guaranty, dated as of the
date hereof, by Trizec in favor of Lender, relating to the unfunded obligations
of the Obligors described therein.

             "Unit" means an individual condominium Unit in the Condominium
(together with appurtenant interests therein), and "Units" means all such Units,
collectively.

             "Use" means, with respect to any Hazardous Substance, the
generation, manufacture, processing, distribution, handling, use, treatment,
recycling or storage of such Hazardous Substance or transportation of such
Hazardous Substance in violation of Environmental Laws.

            "U.S. Person" means a United States person within the meaning of
Section 7701(a)(30) of the Code.

            "U.S. Tax" means any present or future tax, assessment or other
charge or levy imposed by or on behalf of the United States of America or any
taxing authority thereof.

            "Waste" means any material abuse or destructive use (whether by
action or inaction) of any Property.

            "Withdrawal Liability" has the meaning given such term under Part I
of Subtitle E of Title IV of ERISA.

            (b) Rules of Construction. All references to sections, schedules and
exhibits are to sections, schedules and exhibits in or to this Agreement unless
otherwise specified. Unless otherwise specified: (i) 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, (ii) all meanings attributed to defined terms herein shall be
equally applicable to both the singular and plural forms of the terms so
defined, (iii) "including" means "including, but not limited to", and (iv)
"mortgagee" means the secured party under a mortgage, deed of trust, deed to
secure debt or similar instrument. All accounting terms not specifically defined
herein shall be construed in accordance with GAAP, as same may be modified
herein.

                                    ARTICLE I

                                  GENERAL TERMS

            1.1. The Loans.

            (a) On the Closing Date, subject to the terms and conditions of this
Agreement, Lender shall make five loans to the Borrowers (each a "Loan" and
collectively, the

                                       32
<PAGE>

"Loans"): two loans bearing a floating rate of interest, as described in Section
1.2 (the "Five-Year Floating Rate Loan" and the "Seven-Year Floating Rate Loan",
respectively, each of which is referred to herein as a "Floating Rate Loan"),
and three loans bearing a fixed rate of interest, as described in Section 1.3
(the "Seven-Year Fixed Rate Loan", the "Ten-Year Non-Amortizing Fixed Rate Loan"
and the "Ten-Year Amortizing Fixed Rate Loan", respectively, each of which is
referred to herein as a "Fixed Rate Loan").

            (b) Each of the Loans shall be guaranteed by the Maryland Guarantors
      pursuant to the Maryland Guarantees. Each of the Loans and the Maryland
      Guarantee shall be secured by (i) the Properties, pursuant to the
      Mortgages and the Assignments of Rents and Leases, (ii) the Obligors'
      contract rights, pursuant to the Assignment of Contracts, (iii) the
      Account Collateral, and (iv) the other security interests and Liens
      granted in this Agreement and in the other Loan Documents.

            1.2. Floating Rate Loans.

            (a) Five-Year Floating Rate Loan.

            (i) The Five-Year Floating Rate Loan shall be in an aggregate amount
      equal to the Five-Year Floating Rate Loan Amount and shall be represented
      by the Five-Year Floating Rate Notes, each of which shall have the initial
      principal balance and interest rate set forth therein. No voluntary
      prepayment of the Five-Year Floating Rate Loan shall be permitted except
      as set forth in Sections 2.1 and 2.2. The entire outstanding principal
      balance of the Five-Year Floating Rate Loan, together with interest
      thereon through the end of the Floating Rate Interest Accrual Period in
      which the Five-Year Maturity Date falls, shall be due and payable by the
      Borrowers to Lender on the Five-Year Maturity Date.

            (ii) The Borrowers may request, by notice in writing to Lender not
      less than 10 days prior to the Initial Five-Year Maturity Date (in the
      case of the first request for an extension hereunder) or the then
      currently scheduled Five-Year Maturity Date from time to time (in the case
      of each request for a subsequent extension hereunder) that the then
      currently scheduled Five-Year Maturity Date be extended for a period to
      but excluding (i) the Payment Date in April 2005, in the case of the first
      such extension, and (ii) the Payment Date in April 2006, in the case of
      the second and final such extension. The Five-Year Maturity Date shall be
      so extended following each such request, provided that (i) no Event of
      Default is continuing on the then-current Five-Year Maturity Date, and
      (ii) the Borrowers shall have purchased an Interest Rate Cap Agreement
      from an Acceptable Counterparty with respect to the applicable extension
      term and shall have collaterally assigned such Interest Rate Cap Agreement
      to Lender in accordance with Section 1.2(e).

            (b) Seven-Year Floating Rate Loan. The Seven-Year Floating Rate Loan
shall be in an aggregate amount equal to the Seven-Year Floating Rate Loan
Amount and shall be represented by the Seven-Year Floating Rate Notes, each of
which shall have the initial principal balance and interest rate set forth
therein. No voluntary prepayment of the Seven-Year Floating Rate Loan shall be
permitted except as provided in Sections 2.1 and 2.2. The entire

                                       33
<PAGE>

outstanding principal balance of the Seven-Year Floating Rate Loan, together
with interest thereon through the end of the Floating Rate Interest Accrual
Period in which the Seven-Year Maturity Date falls, shall be due and payable by
the Borrowers to Lender on the Seven-Year Maturity Date.

            (c) Payments of Interest. Commencing with the Initial Payment Date
and on each and every Payment Date thereafter, the Borrowers shall pay interest
on each outstanding Floating Rate Note for the Floating Rate Interest Accrual
Period in which such Payment Date falls at a rate per annum equal to the sum of
LIBOR, determined as of the Interest Determination Date immediately preceding
such Interest Accrual Period, plus the applicable LIBOR Spread (except that in
each case interest shall be payable on the Indebtedness at the Default Rate with
respect to any portion of such Floating Rate Interest Accrual Period falling
during the continuance of an Event of Default). Interest on the Floating Rate
Loans shall be computed on the basis of a 360-day year and the actual number of
days elapsed.

            (d) Permitted Refinancing Debt. The Borrowers shall be permitted to
refinance the Floating Rate Loans and the Seven-Year Fixed Rate Loan Principal
Reduction with Permitted Five-Year Refinancing Debt and/or Permitted Seven-Year
Refinancing Debt. The Lender and Servicer shall cooperate with the Borrowers and
each holder of such debt in order to permit the Borrowers to obtain the
Permitted Five-Year Refinancing Debt and Permitted Seven-Year Refinancing Debt.
Lender and Servicer shall execute, acknowledge, record and/or deliver such
instruments, agreements, certificates and documents, upon request by the
Borrowers or such holder, as may be necessary or reasonably desirable in order
to obtain, close, evidence, confirm, perfect and maintain the Permitted
Five-Year Refinancing Debt and/or Permitted Seven-Year Refinancing Debt,
including, without limitation, to assign, amend and restate the Notes and other
Loan Documents, so that, among other things, such holders shall be afforded a
first lien against, or other agreed-upon interest in, the Collateral (or portion
thereof as determined by the Borrowers in their sole discretion), excluding the
Defeasance Collateral, on a pari passu basis with Lender's Lien and do and
execute all such further lawful and reasonable acts, conveyances and assurances
in furtherance of the foregoing.

      (e) Interest Rate Cap Agreements. On or prior to the Closing Date,
Borrower shall enter into, and Borrower shall thereafter maintain in effect, one
or more Interest Rate Cap Agreements in an aggregate notional amount not less
than the aggregate outstanding balance of the Floating Rate Loans from time to
time. The Interest Rate Cap Agreement entered into on or prior to the Closing
Date shall have a LIBOR strike price equal to (i) prior to the Payment Date in
April 2004, 11.01%, (ii) from the Payment Date in April 2004 to the Payment Date
in April 2006, 12.94%, and (iii) from the Payment Date in April 2006 to the
Seven-Year Maturity Date, 11.00%, and shall have a notional balance equal to (i)
prior to the Payment Date in April 2004, not less than the sum of the
outstanding principal balances of the Five-Year Floating Rate Loan and the
Seven-Year Floating Rate Loan, and (ii) from and after the Payment Date in April
2004, not less than the outstanding principal balance of the Seven-Year Floating
Rate Loan. In addition, on or prior to any extension of the Five Year Maturity
Date, the Borrowers shall enter into and deliver, and shall maintain through the
maturity of the Five-Year Maturity Date as extended, an additional Interest Rate
Cap Agreement with a notional amount not less than the outstanding principal
balance of the Five-Year Floating Rate Loan and a LIBOR strike price equal to
8.93%. Each Interest Rate Cap Agreement shall be collaterally assigned to Lender

                                       34
<PAGE>

pursuant to a collateral assignment in form and substance reasonably
satisfactory to Lender, which assignment shall be consented to by the applicable
Counterparty.

            1.3. Fixed Rate Loans.

            (a) Seven-Year Fixed Rate Loan.

            (i) The Seven-Year Fixed Rate Loan shall be in an aggregate amount
      equal to the Seven-Year Fixed Rate Loan Amount and shall be represented by
      the Seven-Year Fixed Rate Notes, each of which shall have the initial
      principal balance and interest rate set forth therein. Except for any
      prepayment of the Seven-Year Fixed Rate Loan on any Business Day (other
      than the first Business Day prior to the 15th day of any calendar month)
      from and after the third Payment Date prior to the Seven-Year Maturity
      Date, for which no premium or penalty shall be due, and except for any
      permitted prepayment of the Seven Year Fixed Rate Loan Principal Reduction
      as set forth in clause (ii) below, no voluntary prepayment of the
      Seven-Year Fixed Rate Loan shall be permitted (although Defeasance shall
      be permitted as described in Section 2.2).

            (ii) On the Payment Date in April 2006, the Borrowers shall make a
      scheduled principal repayment of the Seven-Year Fixed Rate Loan in an
      amount equal to $135,500,000 (the "Seven-Year Fixed Rate Loan Principal
      Reduction"), which repayment shall (provided no Loan has been accelerated)
      be applied toward the reduction of the outstanding principal balances of
      the Seven-Year Fixed Rate Notes in the respective amounts set forth
      therein; provided that the Borrowers shall be permitted to prepay the
      Seven-Year Fixed Rate Loan Principal Reduction, without premium or
      penalty, on any Business Day (other than first Business Day prior to the
      15th day of any calendar month) that is not more than 30 days prior to the
      Payment Date in April 2006.

            (iii) The Borrowers shall provide not less than 10 Business Days'
      prior written notice of any prepayment permitted under this Section
      1.3(a). Any such prepayment shall be accompanied by the amount of interest
      theretofore accrued but unpaid in respect of the principal amount so
      prepaid, plus, if made on a date that is not a Payment Date, the amount of
      interest which would have accrued on the principal amount so prepaid had
      it remained outstanding through the end of the Fixed Rate Interest Accrual
      Period in which such prepayment is made, and, if made on a date that is
      not a Payment Date, shall be held by Lender until the next succeeding
      Payment Date in an Eligible Account in the name of Lender and shall be
      invested at the direction of the Borrowers in Permitted Investments, and
      any income earned thereon during such period shall be remitted to the
      Borrowers on such Payment Date.

            (iv) The entire outstanding principal balance of the Seven-Year
      Fixed Rate Loan, together with interest thereon through the end of the
      Fixed Rate Interest Accrual Period in which the Seven-Year Maturity Date
      falls, shall be due and payable by the Borrowers to Lender on the
      Seven-Year Maturity Date.

            (b) Ten-Year Non-Amortizing Fixed Rate Loan.

                                       35
<PAGE>

            (i) The Ten-Year Non-Amortizing Fixed Rate Loan shall be in an
      aggregate amount equal to the Ten-Year Non-Amortizing Fixed Rate Loan
      Amount and shall be represented by the Ten-Year Non-Amortizing Fixed Rate
      Notes, each of which shall have the initial principal balance and interest
      rate set forth therein. Except for any prepayment of the Ten-Year
      Non-Amortizing Fixed Rate Loan on any Business Day (other than first
      Business Day prior to the 15th day of any calendar month) from and after
      the third Payment Date prior to the Ten-Year Maturity Date, for which no
      premium or penalty shall be due, no voluntary prepayment of the Ten-Year
      Non-Amortizing Fixed Rate Loan shall be permitted (although Defeasance
      shall be permitted as described in Section 2.2).

            (ii) The Borrowers shall provide not less than 10 Business Days'
      prior written notice of any prepayment permitted under this Section
      1.3(b). Any such prepayment shall be accompanied by the amount of interest
      theretofore accrued but unpaid in respect of the principal amount so
      prepaid, plus, if made on a date that is not a Payment Date, the amount of
      interest which would have accrued on the principal amount so prepaid had
      it remained outstanding through the end of the Fixed Rate Interest Accrual
      Period in which such prepayment is made, and, if made on a date that is
      not a Payment Date, shall be held by Lender until the next succeeding
      Payment Date in an Eligible Account in the name of Lender and shall be
      invested at the direction of the Borrowers in Permitted Investments, and
      any income earned thereon during such period shall be remitted to the
      Borrowers on such Payment Date.

            (iii) The entire outstanding principal balance of the Ten-Year
      Non-Amortizing Fixed Rate Loan, together with interest thereon through the
      end of the Fixed Rate Interest Accrual Period in which the Ten-Year
      Maturity Date falls, shall be due and payable by the Borrowers to Lender
      on the Ten-Year Maturity Date.

            (c) Ten-Year Amortizing Fixed Rate Loan.

            (i) The Ten-Year Amortizing Fixed Rate Loan shall be in an aggregate
      amount equal to the Ten-Year Amortizing Fixed Rate Loan Amount and shall
      be represented by the Ten-Year Amortizing Fixed Rate Note, which shall
      have the initial principal balance and interest rate set forth therein.
      Except for any prepayment of the Ten-Year Amortizing Fixed Rate Loan on
      any Business Day (other than first Business Day prior to the 15th day of
      any calendar month) from and after the third Payment Date prior to the
      Ten-Year Maturity Date, for which no premium or penalty shall be due, no
      voluntary prepayment of the Ten-Year Amortizing Fixed Rate Loan shall be
      permitted (although Defeasance shall be permitted as described in Section
      2.2).

            (ii) The Borrowers shall provide not less than 10 Business Days'
      prior written notice of any prepayment permitted under this Section
      1.3(c). Any such prepayment shall be accompanied by the amount of interest
      theretofore accrued but unpaid in respect of the principal amount so
      prepaid, plus, if made on a date that is not a Payment Date, the amount of
      interest which would have accrued on the principal amount so prepaid had
      it remained outstanding through the end of the Fixed Rate Interest Accrual
      Period in which such prepayment is made, and, if made on a date that is
      not a Payment Date, shall be held by Lender until the next succeeding
      Payment Date in an Eligible Account in the name of

                                       36
<PAGE>

      Lender and shall be invested at the direction of the Borrowers in
      Permitted Investments, and any income earned thereon during such period
      shall be remitted to the Borrowers on such Payment Date.

            (iii) On each Payment Date from and after the first Payment Date
      following the second anniversary of the Closing Date, the Borrowers shall
      make a scheduled principal repayment of the Ten-Year Amortizing Fixed Rate
      Loan in the amount indicated in Schedule B.

            (iv) The entire outstanding principal balance of the Ten-Year
      Amortizing Fixed Rate Loan, together with interest thereon through the end
      of the Interest Accrual Period in which the Ten-Year Amortizing Ten-Year
      Maturity Date falls, shall be due and payable by the Borrowers to Lender
      on the Ten-Year Maturity Date.

            (d) Payments of Interest. Commencing with the Initial Payment Date,
      and on each and every Payment Date thereafter, the Borrowers shall pay
      interest on each outstanding Fixed Rate Note for the Fixed Rate Interest
      Accrual Period immediately preceding such Payment Date at a rate per annum
      equal to the applicable Fixed Rate (except that in each case, interest
      shall be payable on the Indebtedness at the Default Rate with respect to
      any portion of such Fixed Rate Interest Accrual Period falling during the
      continuance of an Event of Default). Interest on each of the Fixed Rate
      Loans shall be computed on the basis of a 360-day year consisting of
      twelve 30-day months.

            1.4. Method and Place of Payment. Except as otherwise specifically
      provided herein, all payments and prepayments under this Agreement and the
      Notes shall be made to Lender not later than 12:30 p.m., New York City
      time, on the date when due and shall be made in lawful money of the United
      States of America by wire transfer in federal or other immediately
      available funds to the account specified from time to time by Lender. 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. Lender
      shall notify the Borrowers in writing of any changes in the account to
      which payments are to be made. If the amount received from the Borrowers
      (or, during a Low DSCR Period, from the Cash Management Account pursuant
      to Section 3.2(b)) is less than the sum of all amounts then due and
      payable hereunder, such amount shall be applied toward the components of
      the Indebtedness (e.g., interest, principal and other amounts payable
      hereunder), the Loans and the Notes in such sequence as Lender shall elect
      in its sole discretion.

            1.5. Release. Lender shall promptly execute instruments prepared by
      the Obligors in customary form releasing and discharging all Liens on all
      Collateral securing payment of the Indebtedness, including all balances in
      the Collateral Accounts and shall return to the Obligors any remaining
      Defeasance Collateral, upon payment of the Indebtedness in full in
      accordance with this Agreement (including any reasonable fees and expenses
      associated with such payment and releases).

            1.6. Rating Agency Monitoring Fees. The Borrowers shall pay the
      annual monitoring fees of the Rating Agencies in connection with the
      Securitization.

                                       37
<PAGE>

                                   ARTICLE II

                   PREPAYMENTS, DISPOSITIONS AND SUBSTITUTIONS

            2.1. Voluntary Prepayment of Floating Rate Loans.

            (a) So long as no Event of Default or material monetary Default is
then continuing, the Borrowers may from time to time voluntarily prepay the
Floating Rate Loans in whole or in part on any Business Day; provided that (i)
no prepayment of the Five-Year Floating Rate Loan shall be permitted prior to
the first Payment Date following the six-month anniversary of the Closing Date,
and no more than $100,000,000 in the aggregate may be prepaid prior to the
one-year anniversary of the Closing Date, (ii) no prepayment of the Seven-Year
Floating Rate Loan shall be permitted prior to the first Payment Date following
the first anniversary of the Closing Date, (iii) any prepayment of the
Seven-Year Floating Rate Loan from and including the first Payment Date
following the first anniversary of the Closing Date to but excluding the first
Payment Date following the fourth anniversary of the Closing Date shall be
accompanied by the applicable Prepayment Premium, (iv) no prepayment shall be
permitted on the last day of any Floating Rate Interest Accrual Period, and (v)
each such prepayment shall be accompanied by the amount of interest theretofore
accrued but unpaid in respect of the principal amount so prepaid, plus the
amount of interest which would have accrued on the principal amount so prepaid
had it remained outstanding through the end of the Floating Rate Interest
Accrual Period in which such prepayment is made. Each such voluntary prepayment
shall be applied toward the reduction of the outstanding principal balances of
the Five-Year Floating Rate Notes or the Seven-Year Floating Rate Notes, as
applicable, pro rata in accordance with their then outstanding principal
balances. Any amount so prepaid on any day that is not a Payment Date shall be
held by Lender until the next succeeding Payment Date in an Eligible Account in
the name of Lender and shall be invested at the direction of the Borrowers in
Permitted Investments, and any income earned thereon during such period shall be
remitted to the Borrowers on such Payment Date.

            (b) The Borrowers must give Lender written notice of their intent to
make a voluntary prepayment, which notice shall be given at least 30 days prior
to the Business Day upon which prepayment is to be made and shall specify the
Business Day on which such prepayment is to be made and the amount of such
prepayment. If any such notice is given, the amount specified in such notice
shall be due and payable on the Business Day specified therein or on a later
Business Day (not more than 30 days after the Business Day with respect to which
Lender received such original notice) provided that the Borrowers give Lender
prior notice of the Borrowers' requirement to extend the date for such
prepayment; provided, however, that if such prepayment is not made on such date
(as may have been extended) (x) the Borrowers' notice of prepayment shall be
deemed rescinded, and (y) the Borrowers shall on such date pay to Lender all
actual reasonable expenses suffered by Lender as a consequence of such
rescission.

            2.2. Property Releases.

            (a) So long as no Event of Default or material monetary Default is
then continuing, any Obligor may from time to time obtain the release of one or
more of its Properties (each, a "Released Property") from the Liens of the Loan
Documents and, to the extent after such

                                       38
<PAGE>

release such Obligor no longer owns any Property subject to the Loan or any
Defeasance Collateral, Lender shall release such Obligor from all liabilities
and obligations arising under the Loan Documents which by their terms do not
survive repayment of the Loan, provided the following conditions are met with
respect to each such Property:

            (i) the Borrowers shall (x) prepay any Loan or portion thereof to
      the extent permitted hereunder, or repay any Loan at maturity or repay the
      Seven-Year Fixed Rate Principal Reduction when due, and/or (y) Defease all
      or a portion of any Fixed Rate Loan in the manner described in clause (ii)
      below, in such proportions as the Borrowers shall elect, provided that the
      sum of the amount of such Notes so prepaid or repaid, as the case may be,
      and the amount of the Fixed Rate Loans so Defeased shall be equal to, or
      if the Borrowers elect, greater than, the applicable Release Price;

            (ii) if the Borrowers elect to Defease all or any portion of any
      Fixed Rate Loan, the Borrowers shall deliver the following to or at the
      direction of Lender with respect to Fixed Rate Notes evidencing such Fixed
      Rate Loan (in the case of a partial Defeasance of a Fixed Rate Loan, each
      such Defeasance shall be applied toward the applicable Fixed Rate Notes
      sequentially (i.e., first to the Fixed Rate Note corresponding to the
      highest-rated Certificate in the Securitization until it has been Defeased
      in full, next to the Fixed Rate Note corresponding to the second-highest
      rated Certificate in the Securitization until it has been Defeased in
      full, and so on)):

                  (1) Defeasance Collateral sufficient to provide payments on or
            prior to, and in any event as close as possible to, all successive
            Payment Dates through the third Payment Date prior to the Seven-Year
            Maturity Date or the Ten-Year Maturity Date, as the case may be, in
            an amount sufficient (x) to pay the interest and scheduled principal
            (including the Seven Year Fixed Rate Loan Principal Reduction, if
            applicable) due on such Payment Dates on the portion of such Fixed
            Rate Note that is Defeased and (y) to repay the unamortized portion
            of such portion of such Fixed Rate Note on the third Payment Date
            prior to the Seven-Year Maturity Date or the Ten-Year Maturity Date,
            as the case may be;

                  (2) written confirmation from an independent certified public
            accounting firm that such Defeasance Collateral is sufficient to
            provide the payments described in clause (1) above;

                  (3) a security agreement, in form and substance reasonably
            satisfactory to Lender, the Borrowers and the Rating Agencies,
            creating in favor of Lender a first priority perfected security
            interest in such Defeasance Collateral (a "Defeasance Pledge
            Agreement");

                  (4) an opinion of counsel for the Borrowers, in form and
            substance reasonably satisfactory to Lender and delivered by counsel
            reasonably satisfactory to Lender (and Lender hereby confirms that
            such opinion from Piper Marbury Rudnick & Wolfe shall be acceptable
            counsel), opining that the Defeasance Pledge Agreement has been duly
            authorized and is enforceable against the applicable Borrower in
            accordance with its terms (subject to customary qualifications) and
            that

                                       39
<PAGE>

            Lender has a perfected first priority security interest in such
            Defeasance Collateral (subject to customary qualifications);

                  (5) such other customary certificates, opinions, documents or
            instruments as Lender and the Rating Agencies may reasonably
            request; and

                  (6) each of the Rating Agencies shall have delivered Rating
            Confirmation with respect to the satisfaction of the foregoing
            requirements.

            (iii) With respect to any Fixed Rate Note that is partially
      Defeased, the Obligors shall execute and deliver all documents necessary
      to amend and restate such Fixed Rate Note with two substitute notes: one
      note having a principal balance equal to the Defeased portion of the
      original Fixed Rate Note (the "Defeased Note") and one note having a
      principal balance equal to the undefeased portion of the original Fixed
      Rate Note (the "Undefeased Note"). The Undefeased Note may be the subject
      of a further Defeasance in accordance with the terms of this Section 2.2
      (the term "Fixed Rate Note", as used in this Section 2.2, being deemed to
      refer to the Undefeased Note that is the subject of further Defeasance).

            (iv) If an Obligor which owns the Released Property will, after such
      release, continue to own Property subject to Lender's Lien, such Obligor
      shall transfer and assign all of its interest in the Released Property to
      a third party or an Affiliate that is not an Obligor. If an Obligor which
      owns the Released Property will not continue to own Property subject to
      Lender's Lien, such Obligor shall not be required to transfer such
      Released Property, provided the following requirements are satisfied:

                  (1) all of the Defeasance Collateral shall be transferred to a
            Single-Purpose Entity which shall assume the obligations of the
            Obligors hereunder (a "Defeasance Borrower"); and

                  (2) such Defeasance Borrower shall have executed and delivered
            to Lender an assumption agreement in form and substance reasonably
            acceptable to Lender, the Borrowers and Defeasance Borrower, such
            Uniform Commercial Code financing statements as may be reasonably
            requested by Lender and legal opinions of counsel reasonably
            acceptable to Lender which are equivalent to the opinions delivered
            to Lender on the Closing Date, including new nonconsolidation
            opinions which (i) prior to any Securitization, are reasonably
            satisfactory to Lender, or (ii) after any Securitization, are in
            customary form as confirmed by each of the Rating Agencies; and the
            Obligors and the Defeasance Borrower shall have delivered such other
            documents, certificates and legal opinions as Lender shall
            reasonably request, each of the Rating Agencies shall have delivered
            Rating Confirmation with respect to the satisfaction of the
            foregoing requirements; in which event each Obligor shall be
            completely released and relieved of all of its obligations under the
            Loan Documents (including all indemnity obligations), except those
            obligations which by their terms survive the repayment of the Loan;

                                       40
<PAGE>

            (v) after giving effect thereto, unless the Floating Rate Loans are
      prepaid in full and the Fixed Rate Loans are Defeased in full, DSCR for
      the Fiscal Quarter then most recently ended, recalculated to include only
      income and expense attributable to the Properties remaining after the
      contemplated release and to exclude the interest expense and principal
      payments on the aggregate amount prepaid and/or Defeased, shall be equal
      to or greater than the greater of (x) the applicable Threshold DSCR and
      (y) actual DSCR for the Fiscal Quarter then most recently ended; provided,
      however, notwithstanding anything in this Agreement to the contrary, the
      Borrowers shall have the right to Defease a portion of the Fixed Rate
      Loans and/or prepay a portion of the outstanding principal balance of the
      Floating Rate Loan concurrent with the release (causing a recalculation of
      the DSCR for the Fiscal Quarter) if necessary to satisfy the aforesaid
      requirements; and

            (vi) the Borrowers shall reimburse Lender for any actual
      out-of-pocket costs and expenses incurred by Lender in connection with
      this Section 2.2 (including the reasonable fees and expenses of legal
      counsel and the Rating Agencies, the reasonable out-of-pocket expenses of
      the Servicer and any revenue, documentary stamp or intangible taxes or any
      other tax or charge due in connection herewith).

            (b) Except as provided in Section 2.2(a)(v), the Borrowers must give
      Lender and each Rating Agency at least 30 days' prior written notice of
      any prepayment and/or Defeasance under this Section 2.2, specifying the
      portion of the Floating Rate Loans to be prepaid and the portion of the
      Fixed Rate Loans to be Defeased. If such notice is given, the amounts
      specified in such notice shall be due and payable on the date specified
      therein or on a later date provided that the Borrowers give Lender
      reasonable prior written notice of their requirement to extend the date
      for such prepayment and/or Defeasance; provided, however, that if such
      prepayment and/or Defeasance is not made on such date (as may have been
      extended by not more than 30 days) (x) the Borrowers' notice of prepayment
      and/or Defeasance will be deemed rescinded, and (y) the Borrowers shall on
      such date pay to Lender all reasonable expenses actually suffered by
      Lender as a consequence of such rescission.

            (c) Upon satisfaction of the requirements contained in this Section
      2.2, Lender will execute and deliver to the applicable Obligor such
      instruments, prepared by the applicable Obligor and reasonably approved by
      Lender, as shall be necessary to release the applicable Property and/or
      the applicable Obligor from the Liens of the Loan Documents.

            2.3. Substitution.

            (a) Subject to the terms and conditions set forth in this Section
      2.3, so long as no Event of Default or material monetary Default is then
      continuing, the Obligors may, from time to time, replace Properties
      (individually, a "Replaced Property" and collectively, the "Replaced
      Properties") which in the aggregate (taking into account all such
      replacements during the term of the Loan) have initial Allocated Loan
      Amounts not exceeding 30% of the Aggregate Loan Amount with Qualified
      Substitute Properties (a "Property Substitution"), provided, in the case
      of each Property Substitution, the following conditions are met:

            (i) all conditions described in Section 8.2 shall have been
      satisfied with respect to each Qualified Substitute Property;

                                       41
<PAGE>

            (ii) the date of the Property Substitution shall not occur within
      the 12 month period immediately prior to the Payment Date in April 2006,
      the Seven-Year Loan Maturity Date or the Ten-Year Maturity Date;

            (iii) the sum of the current market values of the proposed Qualified
      Substitute Properties shall equal or exceed the greater of (x) the sum of
      the Initial Values of the corresponding Replaced Properties and (y) the
      sum of the current market values of such Replaced Properties (in each
      case, current market value shall be determined based on an actual
      arms-length purchase price, taking into account all agreements between the
      parties, payable at a closing on a purchase or sale of the applicable
      Property by an Obligor of the applicable property or pursuant to a
      purchase contract that is executed no earlier than six months prior to the
      date of the proposed Property Substitution, or, if no such purchase price
      exists or if an Obligor so elects, based on an Appraisal dated no earlier
      than six months prior to the date of the proposed Property Substitution;
      provided that if such purchase price is an allocated portion of the
      purchase price for a portfolio of properties, or if such purchase or sale
      is between affiliates, then Lender shall have the right to require that
      current market value be based on such an Appraisal);

            (iv) after giving effect thereto, DSCR for the Fiscal Quarter then
      most recently ended, recalculated to include only income and expense
      attributable to the remaining Properties (including the Qualified
      Substitute Properties, based on operating statements and rent rolls
      certified as true and correct by an officer of the Obligors), shall not be
      less than the sum of (x) the applicable Substitution DSCR Threshold plus
      (y) the applicable Substitution DSCR Improvement; provided, however,
      notwithstanding anything in this Agreement to the contrary, the Borrowers
      shall have the right to Defease a portion of any Fixed Rate Loan and/or
      prepay a portion of the outstanding principal balance of the Floating Rate
      Loan concurrent with the Property Substitution (causing a recalculation of
      the DSCR for the Fiscal Quarter) if necessary to satisfy the aforesaid
      requirement. With respect to any Property Substitution following which the
      sum of the initial Allocated Loan Amounts of all Qualified Substitute
      Properties acquired from time to time by the Obligors hereunder would be
      less than 15% of the Aggregate Loan Amount, the foregoing requirement
      shall be deemed satisfied if the aggregate Net Operating Income of the
      proposed Qualified Substitute Properties for the Fiscal Quarter then most
      recently ended equals or exceeds the greater of (x) 125% of the aggregate
      Net Operating Income of the applicable Replaced Properties for the Fiscal
      Quarter most recently ended and (y) 90% of the aggregate Closing Date Net
      Operating Income of the applicable Replaced Properties;

            (v) after giving effect thereto, the NOI Concentration Test and the
      State Concentration Test shall each be satisfied;

            (vi) after giving effect thereto, the number of individual
      Properties shall be not less than 80% of an amount equal to (x) the number
      of individual Properties on the Closing Date minus (y) the number of
      Properties theretofore released from the Collateral pursuant to Section
      2.2;

                                       42
<PAGE>

            (vii) no Property shall be released from the Collateral if any Lease
      at any Property that would remain part of the Collateral grants to the
      Tenant thereunder a right to lease space at the Property proposed to be
      released (unless an agreement is entered into whereby the applicable
      Obligors shall be able to satisfy the requirements of any such Lease) or
      if as a result of such release the representations contained in Sections
      4.27 and 4.30 would no longer be true in all material respects unless with
      respect to Section 4.27, the applicable Obligor provides an easement or
      other agreement to remedy any such misrepresentations or with respect to
      Section 4.30, all necessary filings have been made in order to obtain a
      separate tax lot as a matter of right;

            (viii) each Qualified Substitute Property shall be either (a) an
      office property or (b) the same asset class (e.g., light
      industrial/warehouse) as the corresponding Replaced Property; and

            (ix) the Borrowers shall have paid or reimbursed Lender for all
      reasonable out-of-pocket costs and expenses actually incurred by Lender in
      connection with the foregoing (including the reasonable fees and expenses
      of legal counsel and the Rating Agencies and the reasonable out-of-pocket
      expenses of the Servicer).

            (b) The Obligors must give Lender and each Rating Agency at least 30
days' prior written notice of any Property Substitution under Section 2.3(a),
identifying the proposed Replaced Property or Properties, the proposed Qualified
Substitute Property or Properties and the proposed date of the Property
Substitution (which date may be extended by up to 30 days, provided that the
Obligors give Lender reasonable prior written notice of the Obligors'
requirement to extend the date for such Property Substitution). If such Property
Substitution does not occur on such date (as may have been extended), (x) the
Obligors' notice will be deemed rescinded, and (y) the Borrowers shall on such
date pay to Lender all reasonable expenses actually suffered by Lender as a
consequence of such rescission.

            (c) Upon the satisfaction of the conditions set forth in Section
2.3(a), Lender shall execute instruments prepared by the applicable Obligor and
reasonably satisfactory to Lender releasing and discharging each Replaced
Property from the Liens of the Loan Documents.

            (d) If the owner of the Substitute Property is not a current Obligor
then such owner must be a Qualified Successor Borrower and must satisfy all of
the requirements under Section 2.4(a), (b) and (c). If any owner of the Replaced
Property no longer owns any Property or Defeasance Collateral, then upon
satisfaction of the conditions set forth in Section 2.3(a), Lender shall execute
instruments prepared by the applicable Obligor and reasonably satisfactory to
Lender releasing and discharging such Obligor from the Liens of the Loan
Documents.

            2.4. Assumption.

            (a) Each of the initial Obligors shall have the right to Transfer
all or any portion of the Collateral to a Qualified Successor Borrower that will
assume all of the obligations of the Borrowers hereunder (an "Assumption"),
provided no Event of Default or material

                                       43
<PAGE>

monetary Default is then continuing or would result therefrom and the following
conditions are met:

            (i) such Qualified Successor Borrower shall have executed and
      delivered to Lender an assumption agreement, in form and substance
      reasonably acceptable to Lender, evidencing its agreement to abide and be
      bound by the terms of the Loan Documents; provided that such assumption
      agreement shall neither (a) increase the financial obligations of, or
      personal recourse to, the Qualified Successor Borrower or decrease the
      rights of the Qualified Successor Borrower, relative to the obligations of
      the transferor, nor (b) otherwise materially modify the provisions of the
      Loan Documents, other than the inclusion of representations and warranties
      covering customary matters relating to the Qualified Successor Borrower
      such as due organization, existence, good standing, and authority and the
      validity and enforceability of the assumption document and the Loan
      Documents as against the Qualified Successor Borrower;

            (ii) such Qualified Successor Borrower shall execute and deliver
      such Uniform Commercial Code financing statements as may be reasonably
      requested by Lender;

            (iii) such Qualified Successor Borrower shall have delivered to
      Lender legal opinions of counsel reasonably acceptable to Lender which are
      substantially equivalent to the opinions delivered to Lender on the
      Closing Date, including new nonconsolidation opinions; and the Obligors
      and the Qualified Successor Borrower shall have delivered such other
      documents, certificates and legal opinions as Lender shall reasonably
      request;

            (iv) each Qualified Title Insurance Policy shall have been properly
      endorsed to reflect the Transfer of the Properties or portion thereof to
      the Qualified Successor Borrower;

            (v) each of the Rating Agencies shall have delivered Rating
      Confirmation with respect to the satisfaction of the foregoing
      requirements; and

            (vi) Lender shall have received payment of all reasonable
      out-of-pocket costs and expenses incurred by Lender in connection with the
      foregoing (including the reasonable fees and expenses of legal counsel and
      the Rating Agencies, the reasonable out-of-pocket expenses of the Servicer
      and the cost of title endorsements).

            (b) If the Qualified Successor Borrower is not an Affiliate of the
Nonrecourse Carveout Indemnitor, then concurrently with an Assumption, Lender
shall execute an instrument in form and substance reasonably satisfactory to the
Nonrecourse Carveout Indemnitor and Lender pursuant to which the Nonrecourse
Carveout Indemnitor shall be released from all of its duties and obligations
arising under the Environmental Indemnity and Section 9.14 and Section 9.19(b)
of this Agreement from and after the date of such Assumption with respect to the
Collateral or portion thereof so transferred to a Qualified Successor Borrower,
provided that a Qualified Equityholder or another party reasonably satisfactory
to Lender executes and delivers to Lender an instrument, in form and substance
reasonably satisfactory to Lender, Nonrecourse

                                       44
<PAGE>

Carveout Indemnitor and such Qualified Equityholder pursuant to which such
Qualified Equityholder assumes such duties and obligations.

            2.5 Release of Development Parcels. Lender hereby agrees to release
from the Lien of the Mortgage and the other Loan Documents one or more parcels
or out-lots (each, a "Development Parcel") in connection with the expansion or
other development of the Development Parcel upon satisfaction of the following
conditions:

            (a) not less than 30 days prior to the date of the release, the
      applicable Obligor shall have delivered to Lender a notice setting forth
      (i) the date of the proposed release, (ii) the name of the proposed
      transferee, (iii) a metes and bounds or other legal description of the
      Development Parcel, (iv) a metes and bounds or other legal description of
      the remaining Property (such remaining Property, the "Affected Property"),
      (iv) a survey of the Development Parcel, and (vi) a survey of the
      remaining Affected Property;

            (b) on the date the applicable Obligor delivers to Lender notice of
      the proposed release and on the date of the release, no Event of Default
      is continuing;

            (c) the applicable Obligor shall have delivered to Lender evidence
      which would be satisfactory to a prudent lender acting reasonably that (i)
      after giving effect to the Transfer, the Development Parcel shall be
      legally separated from the remainder of the Affected Property; (ii) after
      giving effect to such Transfer, each of the Development Parcel and the
      balance of the Affected Property conforms to and is in compliance in all
      material respects with applicable Legal Requirements and constitutes a
      separate tax lot or all necessary filings have been made in order to
      obtain as a matter of right a separate tax bill for the Development
      Parcel; and (iii) the Development Parcel is not necessary for the Affected
      Property to comply with any zoning, building, land use or parking or other
      Legal Requirements applicable to the Affected Property or for the then
      current use of the Affected Property, including without limitation for
      access, driveways, parking, utilities or drainage or, to the extent that
      the Development Parcel is necessary for any such purpose, a reciprocal
      easement agreement or other agreement has been executed and recorded that
      would allow the owner of the Affected Property to continue to use or
      benefit from the Development Parcel to the extent necessary for such
      purpose;

            (d) the applicable Obligor shall have delivered to Lender an
      endorsement to the Qualified Title Insurance Policy insuring the Mortgage
      (i) confirming no change in the priority of the Mortgage on the balance of
      the Affected Property (exclusive of the Development Parcel) or in the
      amount of the insurance or the coverage of the Affected Property
      (exclusive of the Development Parcel) under the policy; and (ii) insuring
      the rights and benefits under any new or amended reciprocal easement
      agreement or such other agreement required pursuant to clause (c)(iii) of
      this Section that has been executed and recorded, if any;

            (e) not less than five Business Days prior to the date of the
      release, the applicable Obligor shall have delivered to Lender approvals
      to the release executed by any Person other than Lender holding Liens
      encumbering the Affected Property or holding any other interest in the
      Affected Property that would be affected by the release,

                                       45
<PAGE>

      if and to the extent such approval is required pursuant to the terms of
      any loan agreement, deed of trust or other documents evidencing or
      securing such Lien or other interest including parties to any Leases,
      easement agreements, ground leases, parking agreements or other similar
      Material Agreements;

            (f) the applicable Obligor shall have delivered to Lender any other
      information, approvals, opinions and documents reasonably requested by
      Lender relating to the release, including copies of the executed documents
      evidencing the transfer of the Development Parcel;

            (g) all of Lender's reasonable out-of-pocket expenses relating to
      the release shall have been paid;

            (h) the applicable Obligor shall have delivered evidence in the form
      of an Officer's Certificate by such Obligor that any such release of a
      Development Parcel shall, to such Obligor's knowledge, not result in an
      event of default or breach by such Obligor, any right in favor of a third
      party of offset, abatement or reduction of rent payable to such Obligor,
      or any right in favor of a third party of termination, cancellation or
      surrender under any Material Agreements or Major Leases by which such
      Obligor or the Affected Property is bound or encumbered;

            (i) the Development Parcel is currently and shall at the time of the
      release be non-income producing in any material respects and unimproved
      (or improved only by surface parking areas not necessary for zoning
      compliance); and

            (j) the applicable Obligor shall represent and warrant to Lender in
      writing that such release of a Development Parcel shall not have a
      material adverse effect on the use or operation of the Affected Property
      or a material adverse effect on the value of the Affected Property (other
      than the fact that the value of the Affected Property will be reduced by
      the value of the applicable Development PARCEL).

                                   ARTICLE III

                                    ACCOUNTS

            3.1. Cash Management Account.

            (a) On or prior to the Closing Date, the Obligors shall establish
and thereafter maintain with the Sweep Bank an account for the collection of
income from the Properties (the "Sweep Account"). As a condition precedent to
the Closing Date, the Obligors shall cause the Sweep Bank to execute and deliver
an agreement satisfactory to Lender which provides, inter alia, that no party
shall have the right to withdraw funds from the Sweep Account and that all funds
on deposit in the Sweep Account shall be remitted at the end of each Business
Day to the Cash Management Account (the "Sweep Agreement"). The fees and
expenses of the Sweep Bank shall be paid by the Obligors. In addition, on or
prior to the Closing Date, the Obligors shall establish and thereafter maintain
with the Cash Management Bank an account for the collection of funds from the
Sweep Account (the "Cash Management Account"). As a condition precedent to the
Closing Date, the Obligors shall cause the Cash Management Bank to execute

                                       46
<PAGE>

and deliver a Cash Management Agreement which provides, inter alia, that no
party other than Lender shall have the right to withdraw funds from the Cash
Management Account. The fees and expenses of the Cash Management Bank shall be
paid by the Obligors.

            (b) Within ten Business Days following the Closing Date, each
Obligor shall deliver to each Tenant in the Properties a written notice (a
"Tenant Notice") in the form of Exhibit D instructing that (i) all payments
under the Leases shall thereafter be transmitted by them directly to, and
deposited directly into, the Sweep Account and (ii) such instruction may not be
rescinded unless and until such Tenant receives from the applicable Obligor or
Lender a copy of Lender's written consent to such rescission (which written
consent Lender shall provide in connection with a release of a Property under
Section 2.2, a Property Substitution under Section 2.3 and an Assumption under
Section 2.4). The Obligors shall send a copy of each such written notice to
Lender and shall redeliver such notices to each Tenant until such time as such
Tenant complies therewith. The Obligors covenant to cause all cash Revenues
relating to the Properties and all other money received by the Obligors with
respect to the Properties (other than tenant security deposits required to be
held in escrow accounts) to be deposited in the Sweep Account by the end of the
first Business Day following the Obligors' or the Property Manager's receipt
thereof; other than amounts collected by the Obligors in the amount of $10,000
per month per Property which the Obligors can elect to deposit on a monthly
basis and the Obligors shall be permitted to deposit in the Sweep Account or the
Cash Management Account such additional amounts as the Obligors may elect.

            (c) Lender shall have the right to replace the Sweep Bank and/or the
Cash Management Bank with any other financial institution reasonably
satisfactory to the Obligors which will promptly execute and deliver to Lender a
Sweep Agreement or Cash Management Agreement, as applicable (and the Obligors
shall cooperate with Lender in connection with such transfer) in the event that
(i) at any time the Sweep Bank or the Cash Management Bank, as the case may be,
ceases to be an Eligible Institution, or (ii) there is a default by the Sweep
Bank under the Sweep Agreement or a default by the Cash Management Bank under
the Cash Management Agreement, as the case may be (in either case after the
expiration of any grace period provided therein).

                                       47
<PAGE>

            3.2. Distributions from Cash Management Account.

            (a) The Cash Management Agreement shall provide that, as long as no
Low DSCR Period is continuing, the Cash Management Bank shall remit to an
account or accounts specified by Obligors, at the end of each Business Day
during the term of the Loan all amounts then contained in the Cash Management
Account. Additionally, the Cash Management Agreement shall provide that the Cash
Management Bank shall remit to an account specified by the Obligors, at the end
of each Business Day falling during the continuance of a Low DSCR Period, the
amount, if any, by which amounts then contained in the Cash Management Account
exceed the Minimum Balance; provided, however, that Servicer may terminate such
remittances during the continuance of an Event of Default upon written notice to
the Cash Management Bank. Servicer shall notify the Cash Management Bank and the
Obligors of any change in the Minimum Balance at any time during the continuance
of a Low DSCR Period.

            (b) On each Payment Date falling during the continuance of a Low
DSCR Period, provided no Event of Default has occurred and is continuing, the
Servicer shall transfer amounts from the Cash Management Account, to the extent
available therein, to make the following payments in the following order of
priority:

            (i) to the Tax, Insurance and Ground Rents Escrow Account, the
      amounts then required to be deposited therein pursuant to Section 3.3;

            (ii) to Lender, the amount of all scheduled or delinquent interest
      on the Loans and all other amounts then due and payable under the Loan
      Documents (with any amounts in respect of principal paid last);

            (iii) to the TI/LC Reserve Account, any amount required to be
      deposited therein pursuant to Section 3.4;

            (iv) to the Capital Expenditure Reserve Account, the amounts
      required to be deposited therein pursuant to Section 3.5; and

            (v) all remaining amounts, to such accounts as the Obligors may
      direct.

            (c) If on any Payment Date during the continuance of a Low DSCR
Period the amount in the Cash Management Account shall be insufficient to make
all of the transfers described in Section 3.2(b)(i) through (iv), the Borrowers
shall deposit into the Cash Management Account on such Payment Date the amount
of such deficiency.

            3.3. Tax, Insurance and Ground Rents Escrow Account.

            (a) On or prior to the first Payment Date after the first occurrence
of a Low DSCR Period, the Obligors shall establish and thereafter maintain with
the Cash Management Bank an account for the purpose of reserving amounts payable
by the Obligors in respect of Taxes, Ground Rents and insurance premiums during
each Low DSCR Period (the "Tax, Insurance and Ground Rents Escrow Account").

                                       48
<PAGE>

             (b) On the first Payment Date in each Low DSCR Period, the Tax,
Insurance and Ground Rents Escrow Account shall be funded in an amount equal to
the sum of (i) an amount sufficient to pay all Taxes by the 30th day prior to
the date they come due, assuming subsequent monthly fundings on Payment Dates of
1/12 of projected annual Taxes, plus (ii) an amount sufficient to pay all Ground
Rents by the 30th day prior to the date they come due, assuming subsequent
monthly fundings on Payment Dates of 1/12 of projected annual Ground Rents, plus
(iii) an amount sufficient to pay all insurance premiums by the 30th day prior
to the date they come due, assuming subsequent monthly fundings on Payment Dates
of 1/12 of projected insurance premiums.

            (c) On each subsequent Payment Date during the continuance of a Low
DSCR Period, an additional deposit shall be made therein in an amount equal to
the sum of:

            (A) 1/12 of the Taxes that Lender reasonably estimates, based on
      information provided by the Obligors, will be payable during the next
      ensuing 12 months, plus

            (B) 1/12 of the Ground Rents that Lender reasonably estimates, based
      on information provided by the Obligors, will be payable during the next
      ensuing 12 months, plus

            (C) 1/12 of the insurance premiums that Lender reasonably estimates,
      based on information provided by the Obligors, will be payable during the
      next ensuing 12 months;

provided, however, that if at any time during the continuance of a Low DSCR
Period Lender reasonably determines that the amount in the Tax, Insurance and
Ground Rents Escrow Account will not be sufficient to accumulate (upon payment
of subsequent monthly amounts in accordance with the provisions hereof) the full
amount of all installments of Taxes, Ground Rents and insurance premiums by the
date on which such amounts come due, then Lender shall notify the Borrowers in
writing of such determination and the Borrowers shall increase their monthly
payments to the Tax, Insurance and Ground Rents Escrow Account by the amount
that Lender reasonably estimates is sufficient to achieve such accumulation.

            (d) The Borrowers shall have the right to deliver to Lender a
Qualified Letter of Credit in lieu of making the cash deposits described above,
provided that (i) the amount of such Qualified Letter of Credit shall at all
times be at least the amount that would then be required to be held in the Tax,
Insurance and Ground Rents Escrow Account had such Qualified Letter of Credit
not been delivered, (ii) the Borrowers shall be obligated to make all payments
of Taxes, Ground Rents and insurance premiums that would otherwise have been
paid from amounts contained in the Tax, Insurance and Ground Rents Escrow
Account, and (iii) if the letter of credit delivered to Lender at any time
ceases to be a Qualified Letter of Credit, the Borrowers shall deliver to Lender
a Qualified Letter of Credit in such amount within 10 days following the
Borrowers' receipt of written notice from Lender.

            (e) Each Obligor shall provide Lender with copies of all tax and
insurance bills relating to each Property promptly after such Obligor's receipt
thereof. Lender will apply amounts in the Tax, Insurance and Ground Rents Escrow
Account toward the purposes for which

                                       49
<PAGE>

such amounts are deposited therein within a reasonable period following Lender's
receipt of such tax and insurance bills. In connection with the making of any
payment from the Tax, Insurance and Ground Rents Escrow Account, Lender may
cause such payment to be made according to any bill or any statement or estimate
procured from the appropriate public office, 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 unless given written
advance notice by the applicable Obligor of such inaccuracy, invalidity or other
contest. Provided no Event of Default has occurred and is continuing, the
Borrowers shall have the right to have Lender apply amounts deposited in the
Tax, Insurance and Ground Rents Escrow Account on account of Taxes toward the
payment of such Taxes prior to their due dates or delinquent dates, as required
for the purpose of achieving a discount on such Taxes.

            (f) Notwithstanding the terms and provisions of the foregoing
paragraphs of this Section 3.3, in the event and for so long as the Obligors
have provided evidence of insurance satisfying the requirements set forth in
Section 5.15 of this Agreement under any blanket policy paid in full, the
Obligors shall not be required to reserve any amounts for payment of insurance
premiums as otherwise required by this Section 3.3; provided, however, that (x)
in the event Borrower shall fail to deliver satisfactory evidence of insurance
to Lender when and as required by Section 5.15, this Section 3.3(f) shall be of
no further force and effect; and (y) such blanket policy shall be maintained in
effect but Borrower shall fail to have a Qualified Equityholder with a net worth
of not less than $1.5 billion (or, with respect to Trizec, $1 billion), the
Obligors shall be required upon written request from Lender to reserve in
respect of insurance premiums only such amounts as Lender reasonably determines
would be the cost for Policies if they were maintained on the Properties alone,
and accumulated amounts reserved in respect of such premiums shall be returned
to the Obligors each time Lender receives evidence of payment of insurance
premiums when due.

             (g) If at any time (other than during the continuance of an Event
of Default) the amount contained in the Tax, Insurance and Ground Rents Escrow
Account exceeds the amount required to be contained therein in order to pay
Taxes, Ground Rents and insurance premiums when due in accordance herewith,
Lender shall, in its discretion, either return such excess to the Obligors or
credit such excess against future payments to be made to the Tax, Insurance and
Ground Rents Escrow Account.

            (h) Upon the termination of a Low DSCR Period, provided no Event of
Default is then continuing, Lender shall remit to the Obligors the amount then
contained in the Tax, Insurance and Ground Rents Escrow Account or return to the
Obligors the Qualified Letter of Credit, as applicable.

            3.4. TI/LC Reserve Account.

            (a) On or prior to the first Payment Date after the first occurrence
of a Low DSCR Period, the Obligors shall establish and thereafter maintain with
the Cash Management Bank an account for the purpose of reserving amounts in
respect of Tenant Improvements and Leasing Commissions during Low DSCR Periods
(the "TI/LC Reserve Account").

                                       50
<PAGE>

            (b) On each Payment Date during the continuance of a Low DSCR
Period, there shall be deposited into the TI/LC Reserve Account an amount equal
to the Monthly Low DSCR TI/LC Amount.

            (c) Upon the written request of any Obligor at any time while no
Event of Default is continuing, Lender will cause disbursements to such Obligor
from the TI/LC Reserve Account, within five Business Days after request, to pay
directly, or to reimburse such Obligor, for Leasing Commissions and Tenant
Improvement costs incurred by such Obligor in connection with a new Lease (or
Lease extension, amendment, modification or expansion) entered into in
accordance with the terms of Section 5.8 hereof, provided that (1) such Obligor
shall deliver to Lender invoices evidencing incurrence of the costs as to which
such disbursements are requested, (2) Lender may condition the making of such
disbursement on receipt of reasonable evidence establishing that the requested
disbursement is in respect of Leasing Commissions and/or Tenant Improvement
costs incurred by Borrower in connection with a new Lease (or Lease extension)
entered into in accordance herewith, and (3) if a requested disbursement relates
to a project costing more than $2,000,000, then Lender may condition the making
of such disbursement on such Obligor's receipt of partial lien releases and
waivers from contractors, subcontractors and others with respect to amounts for
which such Obligor has previously received disbursements for such project under
this Section 3.4(c).

            (d) The Obligors shall have the right to deliver to Lender a
Qualified Letter of Credit in lieu of making the cash deposits described above,
provided that (i) the amount of such Qualified Letter of Credit shall at all
times be at least the amount that would then be required to be held in the TI/LC
Reserve Account had such Qualified Letter of Credit not been delivered, (ii) the
Obligors shall be obligated to make all payments of Tenant Improvements and
Leasing Commissions that would otherwise have been paid from amounts contained
in the TI/LC Reserve Account, and (iii) if the letter of credit delivered to
Lender at any time ceases to be a Qualified Letter of Credit, the Obligors shall
deliver to Lender a Qualified Letter of Credit in such amount within 10 days
following the Obligors' receipt of written notice from Lender.

            (e) Whenever an Obligor receives a Termination Fee and either (i) a
Low DSCR Period is then continuing or (ii) a Low DSCR Period would result from
such termination (determined on a pro forma basis as if the terminated Lease had
been terminated, and any executed Lease of all or a portion of the space covered
by such terminated Lease had been entered into, prior to the commencement of the
applicable Fiscal Quarter), such Obligor shall promptly cause such Termination
Fee to be deposited into the TI/LC Reserve Account unless the amount of such
Termination Fee is less than $500,000, in which case such Obligor shall promptly
cause such Termination Fee to be deposited into the Cash Management Account in
accordance with Section 3.1(b), which amount shall be applied in accordance with
Section 3.2(a) hereof.

            (f) Upon the termination of a Low DSCR Period, provided no Event of
Default is then continuing, Lender shall remit to the Obligors the amount then
contained in the TI/LC Reserve Account and/or return to the Obligors the
Qualified Letter of Credit, as applicable, except that Lender shall retain in
the TI/LC Reserve Account amounts reserved pursuant to clause (ii) of Section
3.4(e), which shall be remitted to Borrower at such time as no Low DSCR Period
would be continuing if the terminated Lease had been terminated, and any

                                       51
<PAGE>

executed Lease of all or a portion of the space covered by such terminated Lease
had been entered into, prior to the commencement of the applicable Fiscal
Quarter.

            3.5. Capital Expenditure Reserve Account.

            (a) On or prior to the first Payment Date after the first occurrence
of a Low DSCR Period, the Obligors shall establish and thereafter maintain with
the Cash Management Bank an account for the purpose of reserving amounts in
respect of Capital Expenditures during Low DSCR Periods (the "Capital
Expenditure Reserve Account").

            (b) On each Payment Date during the continuance of a Low DSCR
Period, there shall be deposited into the Capital Expenditure Reserve Account an
amount equal to the Monthly Low DSCR Capital Expenditure Amount.

            (c) Upon the written request of any Obligor at any time that no
Event of Default is continuing, Lender will cause disbursements to such Obligor
from the Capital Expenditure Reserve Account, within five Business Days after
request, to pay directly, or to reimburse such Obligor, for Capital
Expenditures; provided that (1) such Obligor shall deliver to Lender invoices
evidencing incurrence of the costs as to which such disbursements are requested,
(2) Lender may condition the making of such disbursement on receipt of
reasonable evidence establishing that the requested disbursement is in respect
of Capital Expenditures, and (3) if a requested disbursement relates to a
project costing more than $2,000,000, then Lender may condition the making of
such disbursement on such Obligor's receipt of partial lien releases and waivers
from contractors, subcontractors and others with respect to amounts for which
such Obligor has previously received disbursements for such project under this
Section 3.5(c).

            (d) The Obligors shall have the right to deliver to Lender a
Qualified Letter of Credit in lieu of making the cash deposits described above,
provided that (i) the amount of such Qualified Letter of Credit shall at all
times be at least the amount that would then be required to be held in the
Capital Expenditure Reserve Account had such Qualified Letter of Credit not been
delivered, (ii) the Obligors shall be obligated to make all payments in respect
of Capital Expenditures that would otherwise have been paid from amounts
contained in the Capital Expenditure Reserve Account, and (iii) if the letter of
credit delivered to Lender at any time ceases to be a Qualified Letter of
Credit, the Obligors shall deliver to Lender a Qualified Letter of Credit in
such amount within 10 days following the Obligors' receipt of written notice
from Lender.

            (e) Upon the termination of a Low DSCR Period, provided no Event of
Default is then continuing, Lender shall remit to the Obligors the amount then
contained in the Capital Expenditure Reserve Account or return to the Obligors
the Qualified Letter of Credit, as applicable.

            3.6. Loss Proceeds Account.

            (a) Promptly after the occurrence of a Casualty or Condemnation, the
Obligors shall establish and thereafter maintain with the Cash Management Bank
an account for the purpose of depositing any Loss Proceeds (the "Loss Proceeds
Account").

                                       52
<PAGE>

             (b) Provided no Event of Default is continuing, funds in the Loss
Proceeds account shall be applied in accordance with Section 5.17.

            3.7. [Intentionally Omitted].

            3.8. [Intentionally Omitted].

            3.9. Account Collateral.

            (a) The Obligors hereby grant a perfected first-priority security
interest in favor of Lender in and to the Account Collateral as security for the
Indebtedness, together with all rights of a secured party with respect thereto.
Each Collateral Account shall be an Eligible Account under the sole dominion and
control of Lender and shall be in the name of the Obligors, as pledgors, and
Lender, as pledgee. No Obligor shall have any right to make withdrawals from any
of the Collateral Accounts but Lender or Servicer shall remit amounts deposited
therein as and when required under this Agreement. Funds in the Collateral
Accounts shall not be commingled with any other monies at any time. The Obligors
shall execute any additional documents that Lender in its reasonable discretion
may require and shall provide all other evidence reasonably requested by Lender
to evidence or perfect its first-priority security interest in the Account
Collateral.

            (b) The insufficiency of amounts contained in the Collateral
Accounts shall not relieve any Obligor from its obligation to fulfill all
covenants contained in the Loan Documents.

            (c) During the continuation of an Event of Default, Lender may, in
its sole discretion, apply funds in the Collateral Accounts either toward the
reduction or discharge of the Indebtedness, in the sequence described in Section
7.4, or toward the payment of Operating Expenses and Capital Expenditures.

            3.10. Permitted Investments.

            (a) So long as no Event of Default shall be continuing, the Obligors
shall be permitted to direct the investment of the funds from time to time held
in the Collateral Accounts in Permitted Investments and to sell and reinvest
proceeds from the sale or liquidation of Permitted Investments in other
Permitted Investments, with all such proceeds and reinvestments to be held in
the applicable Collateral Account; provided, however, that the maturity of an
adequate portion of the Permitted Investments on deposit in the Collateral
Accounts shall be no later than the Business Day immediately preceding the date
on which such funds are required to be withdrawn therefrom pursuant to this
Agreement, and provided further that the Obligors shall remit into the
applicable Collateral Account an amount equal to any losses realized on
Permitted Investments contained therein. No Permitted Investment shall be
liquidated at a loss at the direction of the Obligors except to the extent
required to make a required payment to Lender on behalf of Lender on a Payment
Date.

            (b) All income and gains from the investment of funds in the
Collateral Accounts shall be retained in the Collateral Accounts from which they
were derived. As between the Obligors and Lender, the Obligors shall treat all
income, gains and losses from the

                                       53
<PAGE>

investment of amounts in the Collateral Accounts as their income or loss for
federal, state and local income tax purposes.

            (c) Within one business day after the Loans and all other
Indebtedness have been paid and/or Defeased in full, the Collateral Accounts
shall be closed and the balances therein, if any, shall be promptly paid to the
Obligors.

            (d) So long as the Loans are in a Securitization, provided no Event
of Default is continuing, funds remitted to Lender from time to time by the
Obligors in respect of interest and scheduled principal payments on the Loans
shall be held by or on behalf of the Lender in an Eligible Account and the
Obligors shall direct the investment of such funds in Permitted Investments
until the first Business Day prior to the date on which such funds are required
to be distributed to holders of Certificates. All investment income resulting
from such investment shall be disbursed to or at the direction of the Obligors
from time to time; provided that the Obligors shall remit into the account in
which such Permitted Investments are contained an amount equal to any losses
realized on Permitted Investments contained therein on or prior to the first
Payment Date after the Obligors receive written notice of such losses.

            3.11. Bankruptcy. The Obligors and Lender hereby acknowledge and
agree that upon the filing of a bankruptcy petition by or against an Obligor
under the Bankruptcy Code, the Account Collateral and the Revenues (whether then
already in the Collateral Accounts, or then due or becoming due thereafter)
shall be deemed not to be property of such Obligor's bankruptcy estate within
the meaning of Section 541 of the Bankruptcy Code. In the event, however, that a
court of competent jurisdiction determines that, notwithstanding the foregoing
characterization of the Account Collateral and the Revenues by the Obligors and
Lender, the Account Collateral and/or the Revenues do constitute property of
such Obligor's bankruptcy estate, then each Obligor and Lender hereby further
acknowledge and agree that all such Revenues, whether due and payable before or
after the filing of the petition, are and shall be cash collateral of Lender.
Each Obligor acknowledges that Lender does not consent to any Obligor's use of
such cash collateral and that, in the event Lender elects (in its sole
discretion) to give such consent, such consent shall only be effective if given
in writing signed by Lender. Except as provided in the immediately preceding
sentence, no Obligor shall have the right to use or apply or require the use or
application of such cash collateral unless (i) such Obligor shall have received
a court order authorizing the use of the same, and (ii) such Obligor shall have
provided such adequate protection to Lender as shall be required by the
bankruptcy court in accordance with the Bankruptcy Code.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

            The Obligors hereby represent and warrant to Lender that, as of the
Closing Date and, with respect to each Qualified Substitute Property, as of the
date of such Property Substitution, except as set forth in the Exception Report
or, with respect to a Qualified Substitute Property, as hereafter consented to
by Lender in its reasonable discretion:

                                       54
<PAGE>

            4.1. Organization.

            (a) Each Obligor is either a limited liability company validly
existing and in good standing under the laws of the State of Delaware, the State
of Maryland or the Commonwealth of Virginia, and is in good standing as a
foreign limited liability company, as the case may be, in each other
jurisdiction where ownership of its properties or the conduct of its business
requires it to be so, and each Obligor has all power and authority under such
laws and its organizational documents and all material governmental licenses,
authorizations, consents and approvals required to carry on its business as now
conducted.

            (b) Except for the Maryland Guarantors' ownership of the applicable
Borrowers, no Obligor has any subsidiaries or owns any equity interest in any
other Person.

            4.2. Authorization. Each Obligor has the power and authority to
enter into this Agreement and the other Loan Documents, to perform its
obligations hereunder and thereunder and to consummate the transactions
contemplated by the Loan Documents, and has by proper action duly authorized the
execution and delivery of the Loan Documents.

            4.3. No Conflicts. Neither the execution and delivery of the Loan
Documents, nor the consummation of the transactions contemplated therein, nor
performance of and compliance with the terms and provisions thereof will (i)
violate or conflict with any provision of its operating agreement, certificate
of formation or other governance document, (ii) violate any law, regulation
(including Regulation U, Regulation X or Regulation T), order, writ, judgment,
injunction, decree or permit applicable to it, (iii) violate or materially
conflict with contractual provisions of, or cause an event of default under, any
indenture, loan agreement, mortgage, deed of trust, material contract or other
Material Agreement to which any Obligor or Nonrecourse Carveout Indemnitor is a
party or by which any Obligor or Nonrecourse Carveout Indemnitor may be bound,
or (iv) result in or require the creation of any lien, security interest or
other charge or encumbrance upon or with respect to any Obligor's properties in
favor of any party other than Lender.

            4.4. Consents. No consent, approval, authorization or order of, or
qualification with, any court or Governmental Authority is required in
connection with the execution, delivery or performance by the Obligors of this
Agreement or the other Loan Documents, except for any of the foregoing which
have been obtained.

            4.5. Enforceable Obligations. This Agreement and the other Loan
Documents have been duly executed and delivered by the Obligors and constitute
the Obligors' legal, valid and binding obligations, enforceable in accordance
with their respective terms, and the Loan Documents are not subject to any right
of rescission, set-off, counterclaim or defense by any Obligor, including the
defense of usury, in each case subject to bankruptcy, insolvency and similar
laws of general applicability relating to or affecting creditors' rights and to
general equity principles.

            4.6. No Event of Default. No Default or Event of Default presently
exists or will exist immediately following the making of the Loans.

                                       55
<PAGE>

            4.7. Payment of Taxes. To each Obligor's knowledge, such Obligor has
filed, or caused to be filed, all tax returns (federal, state, local and
foreign) required to be filed and paid all amounts of taxes due (including
interest and penalties). Each Obligor has paid all other taxes, fees,
assessments and other governmental charges (including mortgage recording taxes,
documentary stamp taxes and intangible taxes) owing by it necessary to preserve
any Liens in favor of Lender, except for taxes which are not yet delinquent.

            4.8. Compliance with Law. To the Obligors' knowledge, each Property
and the use thereof comply in all material respects with all applicable
Insurance Requirements and Legal Requirements, including building and zoning
ordinances and codes except for such noncompliance that is not reasonably likely
to have a Property Material Adverse Effect. Each of the Properties is a
conforming use or legal non-conforming use (except for any nonconformance that
would not have a Property Material Adverse Effect). No Obligor has received
written notice of any default or violation of any order, writ, injunction,
decree or demand of any Governmental Authority the violation of which could
cause a Property Material Adverse Effect. There has not been committed by or on
behalf of any Obligor or, to the Obligors' actual knowledge (without independent
investigation), any other person in occupancy of or involved with the operation
or use of any Property, any act or omission affording the federal government or
any state or local government the right of forfeiture as against any Property or
any portion thereof. Neither the Obligors nor Nonrecourse Carveout Indemnitor
has purchased any portion of any Property with proceeds of any illegal activity.

            4.9. ERISA; Employee Benefits Matters.

            (a) Other than with respect to any Multiemployer Plan, neither the
Obligors nor any ERISA Affiliate of the Obligors has incurred any liability
under Title IV or Section 302 of ERISA or Section 412 of the Code or maintains
or contributes to, or is or has been required to maintain or contribute to, any
employee benefit plan subject to Title IV or Section 302 of ERISA or Section 412
of the Code.

             (b) No Obligor, nor any ERISA Affiliate, has incurred any
unsatisfied, or is reasonably expected to incur any, Withdrawal Liability to any
Multiemployer Plan that could reasonably be expected to have a Material Adverse
Effect. No Obligor, nor any ERISA Affiliate, has received any notification that
any Multiemployer Plan is in reorganization or has been terminated, within the
meaning of Title IV of ERISA and, to the best of each Obligor's knowledge, no
Multiemployer Plan is reasonably expected to be in reorganization or to be
terminated within the meaning of Title IV of ERISA, in any case if such event
could reasonably be expected to result in a Material Adverse Effect. If any
Obligor or any ERISA Affiliate were to completely withdraw from all
Multiemployer Plans, neither any Obligor nor any its ERISA Affiliates would
incur, directly or indirectly, Withdrawal Liability to any such Multiemployer
Plans that would have a Material Adverse Effect.

             (c) No Obligor holds any Plan Assets by reason of Department of
Labor regulation section 2510.3-101 or otherwise.

            4.10. Government Regulation. No Obligor is (i) an "investment
company" registered or required to be registered under the Investment Company
Act of 1940, as
amended,

                                       56
<PAGE>

             (ii) a "holding company" or a "subsidiary company" of a "holding
company" or an "affiliate" of either a "holding company" or a "subsidiary
company" within the meaning of the Public Utility Holding Company Act of 1935,
as amended, or (iii) subject to any other federal or state law or regulation
which purports to restrict or regulate its ability to borrow money.

            4.11. No Bankruptcy Filing. No Obligor has filed or is contemplating
the filing of a petition by it under any state or federal bankruptcy or
insolvency laws. No Obligor has liquidated or is contemplating the liquidation
of all or a major portion of its assets or property. No Obligor has knowledge of
any Person that has filed or is contemplating the filing of any such petition
against it.

            4.12. Other Debt. After consummation of the Transaction, no Obligor
shall have outstanding any Debt other than Permitted Debt.

            4.13. Litigation. No Obligor has received written notice of any
actions, suits or proceedings at law or in equity by or before any Governmental
Authority or other agency now pending, and to the Obligors' knowledge there are
no such actions, suits or proceedings threatened against or affecting any
Obligor or any Property, which actions, suits or proceedings, alone or in the
aggregate, if determined against it or any Property, could result in a Property
Material Adverse Effect.

            4.14. Leases; Material Agreements.

            (a) The rent rolls delivered to Lender in connection with the
Closing (the "Rent Rolls") are true and correct in all material respects as of
the date of this Agreement. Except as indicated on the Rent Rolls, (i) no Tenant
under any Major Lease has any expansion, extension, renewal or termination
options, (ii) no security deposits are being held by any Obligor, (iii) to the
Obligors' knowledge, all work to be performed by the landlord under the Major
Leases has been substantially performed, all contributions to be made by the
landlord to the Tenants thereunder have been made and all other conditions to
each such Tenant's obligations thereunder have been satisfied, and (iv) no
Tenant or other party has any option, right of first refusal or similar
preferential right to purchase all or any portion of any Property or any other
real property.

            (b) The Obligors have delivered to Lender true and complete copies
of all Leases requested by Lender. No person has any possessory interest in any
Property or right to occupy the same except under and pursuant to the provisions
of the Leases or by, through and under any Tenant under a Lease (i.e.,
subleases).

            (c) Except as indicated on the Rent Rolls, no fixed rent has been
paid more than 30 days in advance of its due date and no payments of rent are
more than 30 days delinquent.

            (d) There are no Material Agreements except as described in Schedule
I. The Obligors have made available to Lender true and complete copies of all
Material Agreements.

            (e) The Leases and the Material Agreements are in full force and
effect and, except as indicated on the Rent Rolls, (i) no Obligor has received
written notice of any defaults

                                       57
<PAGE>

thereunder by such Obligor which would have a Property Material Adverse Effect,
and (ii) to the Obligors' knowledge, based on an inquiry of its local property
managers, there are no defaults thereunder by any of the Obligors or any other
party thereto. No Obligor has received written notice of any default by such
Obligor in any material respect in the performance, observance or fulfillment of
any of the obligations, covenants or conditions contained in any Permitted
Encumbrance or any other agreement or instrument to which it is a party or by
which it or any Property is bound which remain uncured.

            4.15. Full and Accurate Disclosure. To the Obligors' knowledge, no
statement of fact made by any of the Obligors in this Agreement or in any of the
other Loan Documents, taken as a whole, contains any untrue statement of a
material fact or intentionally omits to state any material fact necessary to
make statements contained herein or therein not misleading to a reasonable
person. To the Obligors' actual knowledge, there is no fact about the Obligors
or the Properties which has not been disclosed in writing to Lender which is
reasonably likely to result in a Material Adverse Effect.

            4.16. Financial Condition. To the Obligors' knowledge, all financial
data concerning the Obligors and the Properties heretofore provided to Lender on
or prior to Closing Date, taken as a whole, is true, complete and correct in all
material respects, as of the date on which it is made, and the Obligors have not
intentionally failed to disclose any material fact necessary to make statements
contained herein or therein not misleading. To the Obligors' knowledge, since
the delivery of such data, except as otherwise disclosed in writing to Lender,
there have occurred no changes or circumstances which have had or which any of
the Obligors believes are reasonably likely to result in a Material Adverse
Effect.

            4.17. Single-Purpose Requirements. Each Obligor and each
Single-Purpose Equityholder is a Single-Purpose Entity.

            4.18. Location of Chief Executive Offices. The location of each
Obligor's principal place of business and chief executive office is 4350 LaJolla
Village Drive, Suite 700, San Diego, California 92122.

            4.19. Not Foreign Person. No Obligor is a "foreign person" within
the meaning of Section 1445(f)(3) of the Code.

            4.20. Labor Matters. Except as described in the Exception Report, no
Obligor is a party to any collective bargaining agreements. The termination of
any collective bargaining agreement described in the Exception Report would not
have a Material Adverse Effect.

            4.21. Title. Each Obligor owns good, marketable and indefeasible
title in fee to the applicable Properties (except for any Ground Lease Property,
as to which such applicable Obligor has good, marketable and indefeasible title
to the leasehold estate therein), and good title to the related personal
property, in each case free and clear of all Liens whatsoever except the
Permitted Encumbrances. The Mortgages, when properly recorded in the appropriate
records, together with the Assignments of Rents and Leases and any Uniform
Commercial Code financing statements required to be filed in connection
therewith, will create (i) valid, perfected first priority liens on the
Properties or the leasehold interests therein, as the case may be, subject

                                       58
<PAGE>

only to Permitted Encumbrances, and (ii) perfected security interests in and to,
and perfected collateral assignments of, all personalty (including the Leases),
all in accordance with the terms thereof, in each case subject only to any
applicable Permitted Encumbrances. The Permitted Encumbrances do not and will
not materially adversely affect or interfere with the value, or current use or
operation, of any Property. The Permitted Encumbrances do not and will not
materially adversely affect the security intended to be provided by the
Mortgages or the Obligors' ability to repay the Loan in accordance with the
terms of the Loan Documents. Except as indicated in and insured over by a
Qualified Title Insurance Policy, no Obligor has received any written notice of
any claims for payment for work, labor or materials affecting any Property which
are or may become a lien prior to, or of equal priority with, the Liens created
by the Loan Documents, and to the Obligors' knowledge no such claims exist.
NOTHING IN THIS PARAGRAPH MAY BE RELIED ON BY ANY TITLE INSURANCE COMPANY
ISSUING A QUALIFIED TITLE INSURANCE POLICY. The Assignments of Rents and Leases,
when properly recorded in the appropriate records, create a valid first priority
assignment of, or a valid first priority security interest in, certain rights
under the related Leases, subject only to licenses granted therein to the
Obligors to exercise certain rights and to perform certain obligations of the
lessor under such Leases, including the right to operate the related Properties.
No Person other than the Obligors owns any interest in any payments due under
such Leases that is superior to or of equal priority with Lender's interest
therein.

            4.22. No Encroachments. To the Obligors' knowledge, with respect to
each Property, except as shown on the Exception Report, all of the related
improvements lie wholly within the boundaries and building restriction lines of
such Property, and no improvements on adjoining property encroach upon such
Property, and no easements or other encumbrances upon such Property encroach
upon any of the improvements, so as, in any case, to cause a Property Material
Adverse Effect, except those which are insured against by a Qualified Title
Insurance Policy.

            4.23. Physical Condition.

            (a) To the Obligors' knowledge, except for matters set forth in the
Engineering Reports and Environmental Reports, each Property (including
sidewalks, storm drainage system, roof, plumbing system, HVAC system, fire
protection system, electrical system, equipment, elevators, exterior sidings and
doors, irrigation system and all structural components) is in good condition,
order and repair in all respects material to its use, operation or value.

            (b) To the Obligors' knowledge, except for matters set forth in the
Engineering Reports and Environmental Reports, there are no material structural
or other material defects or damages in any Property, whether latent or
otherwise.

            (c) No Obligor has received written notice from any insurance
company or bonding company of any defects or inadequacies in any Property which
would, alone or in the aggregate, adversely affect in any material respect 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.

                                       59
<PAGE>

            4.24. Solvency. None of the Obligors has entered into the
Transaction or any of the Loan Documents with the actual intent to hinder, delay
or defraud any creditor. Each Obligor has received reasonably equivalent value
in exchange for its obligations under the Loan Documents. On the Closing Date,
the aggregate fair salable value of the Obligors' assets exceeds and will,
immediately following the making of the Loans and the use and disbursement of
the proceeds thereof, exceed the Obligors' aggregate liabilities (including
subordinated, unliquidated, disputed and Contingent Obligations). The fair
salable value of the Obligors' aggregate assets is and will, immediately
following the making of the Loans and the use and disbursement of the proceeds
thereof, be greater than the Obligors' probable aggregate liabilities (including
the maximum amount of its Contingent Obligations on its debts as such debts
become absolute and matured). The Obligors' aggregate assets do not and,
immediately following the making of the Loans and the use and disbursement of
the proceeds thereof will not, constitute unreasonably small capital to carry
out its business as conducted or as proposed to be conducted. The Obligors do
not intend to, and do not believe that they will, incur debts and liabilities
(including Contingent Obligations and other commitments) beyond their ability to
pay such debts as they mature (taking into account the timing and amounts to be
payable on or in respect of obligations of the Obligors).

            4.25. Management. No property management agreements are in effect
with respect to any Property.

            4.26. Condemnation. No Obligor has received any written notice of
any Condemnation that has been commenced or is contemplated with respect to all
or any material portion of any Property or for the relocation of roadways
providing access to any Property.

            4.27. Utilities and Public Access. To the Obligors' knowledge, the
following statements are accurate with respect to each Property in all material
respects, except as indicated in the Exception Report: (i) such Property has
adequate rights of access to dedicated public ways (and makes no material use of
any means of access or egress that is not pursuant to such dedicated public ways
or recorded, irrevocable rights-of-way or easements) and is served by water,
electric, sewer, sanitary sewer and storm drain facilities; (ii) all public
utilities necessary to the continued use and enjoyment of such Property as
presently used and enjoyed are located in the public right-of-way abutting the
premises or in areas ("Easement Areas") that are the subject of recorded
irrevocable easement agreements which benefit such Property and which are listed
in Schedule A of the applicable Qualified Title Insurance Policy so as to be
included in the coverage thereof, none of which alone or collectively will have
a Property Material Adverse Effect; (iii) all such utilities are connected so as
to serve such Property without passing over other property other than Easement
Areas; and (iv) all roads necessary for the full utilization of such Property
for its current purpose have been completed and are either part of the Property
(by way of deed, easement or ground lease) or dedicated to public use and
accepted by all Governmental Authorities.

            4.28. Environmental Matters. Except as disclosed in the
Environmental Reports, to the Obligors' knowledge:

            (i) Each Property is in compliance in all material respects with all
      Environmental Laws applicable to such Property (which compliance includes,
      but is not

                                       60
<PAGE>

      limited to, the possession of, and compliance with, all environmental,
      health and safety permits, approvals, licenses, registrations and other
      governmental authorizations required in connection with the ownership and
      operation of such Property under all Environmental Laws).

            (ii) There is no Environmental Claim pending or threatened, with
      respect to any Property.

            (iii) There have not been and are no past, present or threatened
      Releases of any Hazardous Substance from or at any Property that are
      reasonably likely to form the basis of any Environmental Claim.

            (iv) No Liens are presently recorded with the appropriate land
      records under or pursuant to any Environmental Law with respect to any
      Property and no Governmental Authority has been taking any action to
      subject such Property to Liens under any Environmental Law.

            (v) There have been no material environmental investigations,
      studies, audits, reviews or other analyses conducted by or that are in the
      possession of any Obligor in relation to any Property which have not been
      made available to Lender.

            4.29. Assessments. Except as disclosed in the Exception Report, the
Obligors have received no written notice of, and to the Obligors' knowledge
there are no, pending or proposed special or other assessments for public
improvements or otherwise affecting any Property, nor are there any contemplated
improvements to any Property that may result in such special or other
assessments.

            4.30. No Joint Assessment. Except as disclosed in the Exception
Report, no Obligor has suffered, permitted or initiated the joint assessment of
any Property (i) with any other real property constituting a separate tax lot,
or (ii) with any portion of such 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 other real property or personal property shall be
assessed or levied or charged to such Property as a single Lien.

            4.31. Separate Lots. To the Obligors' knowledge, except as disclosed
in the Exception Report, no Property includes any real property that is part of
a tax lot that includes (i) all or any portion of another Property, or (ii) any
property that is not Collateral.

            4.32. Permits; Certificate of Occupancy. To the Obligors' knowledge,
each Obligor has obtained all material Permits necessary for the use and
operation of each Property other than Permits the failure of which to obtain
would not have a Property Material Adverse Effect. To each Obligor's knowledge,
the uses being made of each Property are in conformity in all material respects
with the certificate of occupancy and/or Permits for such Property and any other
restrictions, covenants or conditions affecting such Property.

            4.33. Flood Zone. Except as disclosed in the Exception Report, none
of the Improvements on any Property is located in an area identified by the
Federal Emergency Management Agency or the Federal Insurance Administration as
having special flood hazards

                                       61
<PAGE>

(Zone A), and, to the extent that any portion of a Property is located in an
area identified by the Federal Emergency Management Agency as a "100 year flood
plain," such Property is covered by flood insurance meeting the requirements set
forth in Section 5.16(a).

            4.34. Security Deposits. To the Obligors' knowledge, each Obligor is
in compliance in all material respects with all Legal Requirements relating to
security deposits.

            4.35. Parking. To the Obligors' knowledge, except as disclosed in
the Exception Report, parking spaces adequate for compliance of each Property
with applicable zoning requirements and other Legal Requirements are located on
such Property unless such failure to comply would not cause a Property Material
Adverse Effect.

            4.36. [Intentionally Omitted].

            4.37. Ground Leased Parcel.

            (a) With respect to the Ground Leased Parcel forming a part of the
      Property commonly known as Continental Center II, 600 Jefferson, Houston,
      Texas, and each of the Ground Leases applicable thereto, each of the
      following is true:

            (i) a true and complete copy of each such Ground Lease has been
      delivered to Lender, and each such Ground Lease or a memorandum thereof
      has been duly recorded;

            (ii) each such Ground Lease permits the interest of the ground
      lessee thereunder to be encumbered by the applicable Mortgage and does not
      restrict the use of the Property by such ground lessee, its successors or
      assigns in a manner that would cause a Property Material Adverse Effect;

            (iii) the Ground Lease relating thereto dated June 1, 1959 (the
      "Rosenthall Ground Lease") has an original term which expires on May 31,
      2058, and the Ground Lease relating thereto dated September 15, 1960 (the
      "Pitner Ground Lease") has an original term which expires on September 14,
      2059;

            (iv) the base rental under each such Ground Lease is not subject to
      material increase;

            (v) neither such Ground Lease is subject to any liens or
      encumbrances superior to, or of equal priority with, the applicable
      Mortgage (other than the related ground lessor's fee interest and
      Permitted Encumbrances);

            (vi) there is no Lien encumbering the related ground lessor's fee
      interest other than Permitted Encumbrances, and neither Ground Lease
      provides that it shall be subordinate to any Lien upon the related fee
      interest that may hereafter be granted;

            (vii) each such Ground Lease is assignable by a holder of a deed of
      trust or mortgage encumbering the ground lessee's interest therein upon
      either a foreclosure of such deed of trust or mortgage, a deed-in-lieu
      thereof or any other similar transfer without the consent of the ground
      lessor thereunder, and, in the event of any such

                                       62
<PAGE>

      assignment, each such Ground Lease is further assignable by the assignee
      in connection with such assignment (and its successors and assigns) upon
      notice to, but without the need to obtain the consent of, such ground
      lessor;

            (viii) each such Ground Lease is in full force and effect and no
      default has occurred thereunder nor, to the Obligors' knowledge, is there
      any existing condition which, but for the passage of time or the giving of
      notice or both, would result in a default under the terms of either such
      Ground Lease;

            (ix) each such Ground Lease requires the ground lessor thereunder to
      give notice of any default by the applicable ground lessee to a holder of
      a deed of trust or mortgage encumbering the ground lessee's interest
      therein;

            (x) Lender constitutes a "mortgagee" (or the applicable
      corresponding term) as such term is used in each such Ground Lease;

            (xi) a holder of a deed of trust or mortgage encumbering the ground
      lessee's interest therein is permitted within the period during which the
      applicable Obligor is permitted to cure the same to cure any default under
      either of the Ground Leases which is curable;

            (xii) neither of the Ground Leases imposes any restrictions on
      subletting (except for restrictions on the subletting of the entirety of
      that portion of the applicable Property which is subject to each such
      Ground Lease); and the ground lessor thereunder is not permitted to
      disturb the possession, interest or quiet enjoyment of any subtenant of
      the ground lessee in the relevant portion of the Property subject to each
      such Ground Lease for any reason, or in any manner, which would adversely
      affect the security provided to Lender by the applicable Mortgage
      (provided such subtenant of the ground lessee is not in default under such
      Ground Lease);

            (xiii) the Rosenthall Ground Lease may not be amended, modified,
      cancelled or terminated without the prior written consent of Lender, and
      any such action without such consent will be void;

            (xiv) if the Rosenthall Ground Lease is terminated due to a
      bankruptcy or insolvency of the ground lessee thereunder (or any successor
      or assign) or any other event, the Lender (or any successor or assign)
      shall have the right to enter into a new ground lease with the applicable
      ground lessor on the same terms as the Rosenthall Ground Lease; and

            (xv) the loss of the leasehold estate created by either such Ground
      Lease would not constitute a Property Material Adverse Effect (except with
      respect to the use and operation of a portion of the above-ground parking
      garage on the applicable Property).

            (b) With respect to the Ground Leased Parcel forming a part of the
Property commonly known as Capital Center II & III, Sacramento, California, and
the Ground Lease relating thereto, each of the following is true:

                                       63
<PAGE>

             (i) such Ground Lease or a memorandum thereof has been duly
      recorded and the Ground Lease (together with an estoppel letter executed
      by the ground lessor thereunder) permits the interest of the ground lessee
      thereunder to be encumbered by the related Mortgage; such Ground Lease
      does not restrict the use of the Property by such ground lessee, its
      successors or assigns in a manner that would adversely affect the security
      provided to Lender by the applicable Mortgage; and a true and complete
      copy of such Ground Lease has been delivered to Lender;

            (ii) such Ground Lease has an original term (or an original term
      plus one or more optional renewal terms which have been previously
      exercised) which extends until December 31, 2017;

            (iii) such Ground Lease is not subject to any liens or encumbrances
      superior to, or of equal priority with, the applicable Mortgage (other
      than the related ground lessor's fee interest);

            (iv) the Ground Lease relating thereto is in full force and effect
      and no default has occurred thereunder nor, to the Obligors' knowledge
      after due inquiry and investigation, is there any existing condition
      which, but for the passage of time or the giving of notice or both, would
      result in a default under the terms of such Ground Lease;

            (v) except for its right to inspect the relevant portions of the
      Property subject to such Ground Lease, the ground lessor under such Ground
      Lease is not permitted to disturb the possession, interest or quiet
      enjoyment of any subtenant of the ground lessee in such portions of the
      Property for any reason or in any manner (subject to applicable law),
      which would adversely affect the security provided to Lender by the
      applicable Mortgage; and

            (vi) the loss of the leasehold estate created by such Ground Lease
      would not constitute a Property Material Adverse Effect.

            (c) With respect to each Ground Leased Parcel forming a part of the
Property commonly known as 10 South Riverside Plaza and the Property commonly
known as 120 South Riverside Plaza in Chicago, Illinois, and each Ground Lease
relating thereto, each of the following is true:

            (i) a true and complete copy of each Ground Lease relating thereto
      has been delivered to Lender, and each such Ground Lease or a memorandum
      thereof has been duly recorded;

            (ii) each such Ground Lease permits the interest of the ground
      lessee thereunder to be encumbered by the applicable Mortgage and does not
      restrict the use of the Property by such ground lessee, its successors or
      assigns in a manner that would cause a Property Material Adverse Effect;

            (iii) The Ground Lease relating to the 120 South Riverside Property
      dated July 1, 1965, as amended, has an original term, plus, if all renewal
      options are exercised,

                                       64
<PAGE>

      extension terms, of approximately 70 years from the commencement date of
      such Ground Lease (which, based on an estoppel letter dated December 7,
      1998 executed by the applicable ground lessor, would result in an
      expiration date of April 30, 2039 for such Ground Lease). The Ground Lease
      relating to the 10 South Riverside Property dated September 13, 1963, as
      amended, has an original term, plus, if all renewal options are exercised,
      extension terms, of approximately 70 years from the commencement date of
      such Ground Lease (which, based on an estoppel letter dated December 7,
      1998 executed by the applicable ground lessor, would result in an
      expiration date of April 30, 2036 for such Ground Lease). The Ground
      Leases described as Master Leases, dated April 19, 1989, which relate to
      the 10 South Riverside and 120 South Riverside Properties, respectively
      (each, a "Master Lease"), each expire April 30, 2150;

            (iv) the base rental under each such Ground Lease is subject to
      increase;

            (v) none of such Ground Leases is subject to any liens or
      encumbrances superior to, or of equal priority with, the applicable
      Mortgage (other than the related ground lessor's fee interest and
      Permitted Encumbrances);

            (vi) there is no Lien encumbering the fee interest of the ground
      lessor under each such Ground Lease other than Permitted Encumbrances (or
      if any such Lien exists, it is subordinate to the Lien held by Lender
      under the applicable Mortgage);

            (vii) each such Ground Lease is assignable by a holder of a deed of
      trust or mortgage encumbering the ground lessee's interest therein upon
      either a foreclosure of such deed of trust or mortgage, a deed-in-lieu
      thereof or any other similar transfer without the consent of the ground
      lessor thereunder (provided that, subject to the mortgagee rights
      described in (xii) below, a default does not then exist under such Ground
      Lease and no event or condition exists which, with the passage of time
      would constitute a default thereunder), and, in the event of any such
      assignment, each such Ground Lease is further assignable by the assignee
      in connection with such assignment (and its successors and assigns) upon
      notice to, but without the need to obtain the consent of, such ground
      lessor (provided that, subject to the mortgagee rights described in (xii)
      below, a default does not then exist under such Ground Lease and no event
      or condition exists which, with the passage of time would constitute a
      default thereunder);

            (viii) each such Ground Lease is in full force and effect and no
      default has occurred thereunder nor, to the Obligors' knowledge, is there
      any existing condition which, but for the passage of time or the giving of
      notice or both, would result in a default under the terms of such Ground
      Lease (except that the ground lessor under each Master Lease has claimed
      that a continuing problem exists with the smoke exhaust fans and plenums
      and that certain other conditions at the applicable Properties require
      remediation; the Obligors hereby represent that such remediation, if
      necessary, will not result in a Property Material Adverse Effect;

            (ix) each such Ground Lease (together with an estoppel letter
      executed by the ground lessor thereunder) requires such ground lessor to
      give notice of any default by the

                                       65
<PAGE>

      ground lessee to a holder of a deed of trust or mortgage encumbering the
      ground lessee's interest therein;

            (x) Lender constitutes a "mortgagee" (or the applicable
      corresponding term) as such term is used in each such Ground Lease;

            (xi) the ground lessor under each such Ground Lease may not
      terminate such Ground Lease (or, in the case of the Master Leases, the
      ground lessee's possession under each such Ground Lease of the applicable
      portions of the 10 South Riverside and 120 South Riverside Properties):

                  a. in connection with a default under the Ground Lease by the
            ground lessee relating to bankruptcy or insolvency, if the Lender
            requests the ground lessor thereunder not to exercise such right
            within thirty days after such ground lessor shall have notified the
            Lender of the existence of such event and if a new lease to the
            Lender would not be subject to material title exceptions other than
            those to which such Ground Lease was then subject; or

                  b. in connection with any other default under the Ground Lease
            by the ground lessee, unless the Lender fails to cure such default
            within thirty days after receipt of notice from the ground lessor
            that such ground lessee has failed to cure or proceed with
            reasonable promptness to cure such default (as the case may be);
            provided that, (i) if such default cannot reasonably be cured within
            thirty days, the Lender shall have the right to begin to cure such
            default within thirty days after receipt of notice of such default,
            and (ii) if the Lender proceeds with reasonable promptness and
            diligence to cure such default, until such cure is completed, such
            ground lessor will not be permitted to terminate such Ground Lease;
            and provided further that (x) in the case of a default which by its
            nature can be cured by Lender only after Lender has obtained
            possession of the applicable demised premises or after foreclosure
            of the applicable Mortgage, the curing of such default shall include
            Lender's taking all appropriate legal or other action to obtain such
            possession or to foreclose such Mortgage, and (y) if a default by
            its nature cannot be cured by Lender, the conditions of the
            preceding proviso shall be satisfied so long as Lender cooperates in
            good faith in any legal or other action taken by the applicable
            ground lessor to compel the ground lessee or others to cure such
            default;

            (xii) If the ground lessor under any such Ground Lease terminates
      such Ground Lease (or, in the case of either Master Lease, terminates
      possession of the premises due to default), then such ground lessor will
      be obligated to lease the applicable demised premises to the Lender on the
      same terms as such Ground Lease for the balance of the unexpired term
      thereof, if (a) the Lender is ready to do so within thirty days after the
      termination of such Ground Lease (or of the ground lessee's possession
      under such Ground Lease), and (b) the Lender undertakes to cure any
      defaults of the ground lessee which would exist absent such termination,
      other than by bankruptcy or insolvency (provided that if any such default
      cannot reasonably be cured within such thirty day period, (1) the Lender
      shall have the right to begin to cure such default within such thirty

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      day period (or, in case of a default which by its nature can be cured by
      the Lender only after obtaining possession of the premises, within thirty
      days after possession is available to it) and to proceed with reasonable
      promptness and diligence thereafter, and (2) if the Lender so proceeds
      with curing such default until completion, the ground lessor will not be
      permitted to terminate the new ground lease by reason of such prior
      default; and provided further that, in case of any default which by its
      nature cannot be cured by the Lender, the foregoing conditions shall be
      satisfied so long as the Lender cooperates in good faith in any legal or
      other action taken by the ground lessor to compel the ground lessee or
      others to cure such default);

            (xiii) none of such Ground Leases imposes any restrictions on
      subletting; and the ground lessor under each such Ground Lease has agreed
      to enter into non-disturbance agreements with subtenants provided that,
      among other conditions (a) rents under the applicable sublease may not be
      prepaid more than 3 months in advance, (b) rents under such sublease are
      comparable to those for other subtenants, and (c) such sublease does not
      impose substantial burdens on the sublandlord thereunder; and

            (xiv) under each such Ground Lease and the related Mortgage, taken
      together, any related Loss Proceeds are to be applied to the repair or
      restoration of the applicable demised premises (all such Loss Proceeds to
      be held in an account in the name of the Lender and the applicable ground
      lessor, pending joint disbursement thereof by the Lender and such ground
      lessor in connection with, and as, such repair or restoration progresses);

            (d) With respect to the Ground Leased Parcel at the Property
commonly known as the Allstate Parcel, Atlanta Georgia, and the Ground Lease
relating thereto, each of the following is true:

            (i) a true and complete copy of such Ground Lease has been delivered
      to Lender, and such Ground Lease or a memorandum thereof has been duly
      recorded;

            (ii) such Ground Lease permits the interest of the ground lessee
      thereunder to be encumbered by the applicable Mortgage and does not
      restrict the use of the Property by such ground lessee, its successors or
      assigns in a manner that would cause a Property Material Adverse Effect;

            (iii) such Ground Lease has an original term which expires on
      January 1, 2011, subject to a right of automatic extension;

            (iv) the base rental under such Ground Lease is not subject to
      material increase;

            (v) such Ground Lease is not subject to any liens or encumbrances
      superior to, or of equal priority with, the applicable Mortgage (other
      than the related ground lessor's fee interest and Permitted Encumbrances);

            (vi) there is no Lien encumbering the related ground lessor's fee
      interest other than Permitted Encumbrances (or if any such Lien exists, it
      is subordinate to the Lien

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<PAGE>

      held by Lender under the applicable Mortgage) and the Ground Lease does
      not provide that it shall be subordinate to any Lien upon the related fee
      interest that may hereafter be granted;

            (vii) such Ground Lease is assignable by a holder of a deed of trust
      or mortgage encumbering the ground lessee's interest therein upon either a
      foreclosure of such deed of trust or mortgage, a deed-in-lieu thereof or
      any other similar transfer without the consent of the ground lessor
      thereunder, and, in the event of any such assignment, such Ground Lease is
      further assignable by the assignee in connection with such assignment (and
      its successors and assigns) upon notice to, but without the need to obtain
      the consent of, such ground lessor;

            (viii) such Ground Lease is in full force and effect and no default
      has occurred thereunder nor, to the Obligors' knowledge, is there any
      existing condition which, but for the passage of time or the giving of
      notice or both, would result in a default under the terms of such Ground
      Lease;

            (ix) such Ground Lease does not impose any restrictions on
      subletting; and the ground lessor thereunder is not permitted to disturb
      the possession, interest or quiet enjoyment of any subtenant of the ground
      lessee in the relevant portion of the Property subject to such Ground
      Lease for any reason, or in any manner, which would adversely affect the
      security provided to Lender by the applicable Mortgage, provided such
      subtenant of the ground lessee is not in default under such Ground Lease
      beyond any applicable cure periods;

            (x) such Ground Lease may not be amended, modified, cancelled or
      terminated without the prior written consent of the Lender, which consent
      will not be unreasonably withheld, delayed or conditioned, and any such
      action without such consent will be void;

            (xi) the ground lessor under such Ground Lease is required to give
      notice of any default by the ground lessee thereunder to the Lender and no
      notice given under the Ground Lease will be effective against the Lender
      unless a copy of such notice has been given to the Lender;

            (xii) the Lender will receive sixty days in addition to any
      applicable cure period provided to the ground lessee under such Ground
      Lease to cure any default of such ground lessee before the ground lessor
      thereunder will be permitted to terminate such Ground Lease (and when
      necessary, prior to termination of such Ground Lease, the Lender will be
      permitted the opportunity to gain possession of the applicable demised
      premises through legal proceedings or to take other similar action, so
      long as Lender is diligently proceeding with the same);

            (xiii) in the case of any default under such Ground Lease which is
      not curable by the Lender, or in the event of the bankruptcy or insolvency
      of the ground lessee thereunder, the Lender (or a nominee thereof) will
      have the right, following termination of such Ground Lease or rejection
      thereof by a bankruptcy trustee or similar party, to

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<PAGE>

      enter into a new ground lease with the ground lessor thereunder on the
      same terms as such Ground Lease, and all rights of the ground lessee
      thereunder may be exercised by Lender (or such nominee); and

            (xiv) under such Ground Lease and the Loan Documents, taken
      together, any Loss Proceeds will be held and applied in the manner set
      forth in this Loan Agreement.

            (e) With respect to the Ground Leased Parcel commonly known as the
Borden Building, Columbus, Ohio, and the Ground Lease relating thereto, each of
the following is true:

            (i) the Ground Lease or a memorandum thereof has been duly recorded,
      and there has not been a material change in the terms of the Ground lease
      since its recordation, with the exception of the written instruments which
      are part of the related mortgage file (including, without limitation, the
      Amended and Restated Ground Lease relating to the Ground Lease Parcel,
      dated as of May 1, 2001;

            (ii) such Ground Lease permits the interest of the ground lessee
      thereunder to be encumbered by the applicable Mortgage and does not
      restrict the use of the Property by such ground lessee, its successors or
      assigns in a manner that would cause a Property Material Adverse Effect;

            (iii) such Ground Lease may not be amended, modified, cancelled or
      terminated without the prior written consent of Lender, as beneficiary,
      and any such action without such consent is void;

            (iv) such Ground Lease has an original term which expires on
      December 31, 2051;

            (v) the base rental under such Ground Lease is not subject to
      material increase;

            (vi) such Ground Lease is not subject to any liens or encumbrances
      superior to, or of equal priority with, the applicable Mortgage (other
      than the related ground lessor's fee interest and any Mortgage held by
      Lender as security for the Loans);

            (vii) there is no Lien encumbering the related ground lessor's fee
      interest (or if any such Lien exists, it is held by Lender as security for
      the Loans), and the Ground Lease shall remain prior to any Lien upon the
      related fee interest that may hereafter be granted;

            (viii) such Ground Lease is assignable by a holder of a deed of
      trust or mortgage encumbering the ground lessee's interest therein upon
      either a foreclosure of such deed of trust or mortgage, a deed-in-lieu
      thereof or any other similar transfer without the consent of the ground
      lessor thereunder, and, in the event of any such assignment, such Ground
      Lease is further assignable by the assignee in connection with such
      assignment (and its successors and assigns) upon notice to, but without
      the need to obtain the consent of, such ground lessor;

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<PAGE>

            (ix) such Ground Lease is in full force and effect and no default
      has occurred thereunder nor, to Borrower's knowledge, is there any
      existing condition which, but for the passage of time or the giving of
      notice or both, would result in a default under the terms of such Ground
      Lease;

            (x) such Ground Lease requires the ground lessor thereunder to give
      notice of any default by the ground lessee to a holder of a deed of trust
      or mortgage encumbering the ground lessee's interest therein; and such
      Ground Lease further provides that no notice given thereunder is effective
      against such holder, unless a copy has been given to such holder in the
      manner described in such Ground Lease;

            (xi) Lender constitutes a "mortgagee" (or the applicable
      corresponding term) as such term is used in the Ground Lease;

            (xii) a holder of a deed of trust or mortgage encumbering the ground
      lessee's interest therein is permitted at least 30 days in addition to
      Borrower's applicable cure period to cure any default under such Ground
      Lease which is curable after the receipt of notice of any such default
      before the ground lessor thereunder may terminate such Ground Lease (and,
      where necessary, is permitted the opportunity to gain possession of the
      interest of the ground lessee under such Ground Lease through legal
      proceedings or to take other action so long as such holder is proceeding
      diligently);

            (xiii) in the case of any default which is not curable by a holder
      of a deed of trust or mortgage encumbering the ground lessee's interest
      therein, or in the event of the bankruptcy or insolvency of the ground
      lessee under such Ground Lease, such holder has the right, following
      termination of the existing Ground Lease or rejection thereof by a
      bankruptcy trustee or similar party, to enter into a new ground lease with
      the ground lessor on the same terms as the existing Ground Lease, and all
      rights of the ground lessee under such Ground Lease may be exercised by or
      on behalf of such holder; and

            (xiv) such Ground Lease does not impose any restrictions on
      subletting; and the ground lessor thereunder is not permitted to disturb
      the possession, interest or quiet enjoyment of any subtenant of the ground
      lessee in the relevant portion of the applicable Property for any reason,
      or in any manner, which would adversely affect the security provided to
      Lender by the applicable Mortgage.

            (xv) under such Ground Lease and the Loan Documents, taken together,
      any Loss Proceeds will be held and applied in the manner set forth in this
      Loan Agreement.

            4.38. Insurance. The Obligors have obtained insurance policies
reflecting the insurance coverages, amounts and other requirements set forth in
this Agreement. All premiums on such insurance policies required to be paid as
of the date hereof have been paid for the current policy period. To the
Obligors' knowledge, no Person, including an Obligor, has done, by act or
omission, anything which would impair the coverage of any such policy.

            4.39. Condominium. The applicable Obligor has a 70% aggregate
percentage interest in the Condominium. Neither the applicable Obligor nor, to
the Obligors' knowledge,

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<PAGE>

any other party thereto, is in default under the Declaration or the By-laws of
the Association (unless such default would not cause a Property Material Adverse
Effect).

            4.40 Survival. Each Obligor agrees that all of the representations
and warranties of the Obligors set forth in this Agreement and in the other Loan
Documents shall survive for so long as any portion of the Indebtedness is
outstanding. All representations, warranties, covenants and agreements made by
the Obligors in this Agreement or in the other Loan Documents shall be deemed to
have been relied upon by Lender notwithstanding any investigation heretofore or
hereafter made by Lender or on its behalf.

                                    ARTICLE V

                              AFFIRMATIVE COVENANTS

            5.1. Existence. Each Obligor shall do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its existence as
a limited liability company and all rights, licenses, Permits, franchises and
other agreements necessary for the continued use and operation of its business
(except where the absence of such rights, licenses, Permits, franchises and
other agreements would not have Property Material Adverse Effect). Each Obligor
shall deliver to Lender a copy of each amendment or other modification to any of
its organizational documents promptly after the execution thereof.

            5.2. Maintenance of Properties; Compliance with Legal Requirements.
The Obligors will keep the Properties in good working order and repair,
reasonable wear and tear excepted, and shall from time to time make, or cause to
be made, all reasonably necessary repairs, renewals, replacements, betterments
and improvements thereto. Without limiting the generality of the foregoing, the
Obligors shall reasonably promptly remediate the items set forth in Schedule K
(and shall exercise reasonable efforts to do so within one year following the
Closing Date). Upon the written request of Lender from time to time, the
Obligors shall provide an Officer's Certificate setting forth the status of such
remediation. The Obligors shall comply with, and shall cause the Properties to
be operated, maintained, repaired and improved in compliance with, all Legal
Requirements and Insurance Requirements (subject to the applicable Obligor's
right to contest allegations of noncompliance in good faith and by appropriate
proceedings).

            5.3. Impositions and Other Claims. The Obligors shall pay and
discharge all taxes, assessments and governmental charges levied upon it, its
income and its assets as and when such taxes, assessments and charges are due
and payable, as well as all lawful claims for labor, materials and supplies or
otherwise, subject to any rights to contest contained in the definition of
Permitted Encumbrances. The Obligors shall file all federal, state and local tax
returns and other reports that they are required by law to file. In the event of
the enactment after this date of any law or regulation applicable to Lender, any
Note, any Property or any Mortgage deducting from the value of property for the
purpose of taxation any lien or security interest thereon, or imposing upon
Lender the payment of the whole or any portion of the taxes, assessments or
charges or liens herein required to be paid by any Obligor, or changing in any
way the laws or regulations relating to the taxation of deeds of trust or
mortgages or security agreements or debts secured by deeds of trust or mortgages
or security agreements or the interest

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<PAGE>

of the mortgagee or secured party in the property covered thereby, or the manner
of collection of such taxes, so as to affect any Mortgage, the Indebtedness or
Lender, then the Obligors, upon demand by Lender, shall pay such taxes,
assessments, charges or liens, or reimburse Lender for any amounts paid by
Lender; provided that if in the opinion of Lender's counsel it might be unlawful
to require the Obligors to make such payment or the making of such payment might
result in the imposition of interest beyond the maximum amount permitted by
applicable Law, Lender may elect to declare all of the Indebtedness to be due
and payable 180 days from the giving of written notice by Lender to the Obligors
(without prepayment premium, fee or Release Price).

            5.4. Access to Property. Each Obligor shall permit agents,
representatives and employees of Lender and the Servicer, at Lender's (or
Servicer's) cost to inspect the Properties or any portion thereof (subject to
the rights of Tenants), and/or the books and records of the Obligors (unless
during the continuance of an Event of Default, not more than four times per
year), at such reasonable times during normal business hours as may be requested
by Lender upon reasonable advance written notice.

            5.5. Notice of Default. Each Obligor shall promptly advise Lender of
any Default or Event of Default of which such Obligor is aware.

            5.6. Litigation. Each Obligor shall give prompt written notice to
Lender of any litigation or governmental proceedings pending or threatened in
writing against such Obligor which is reasonably likely to have a Material
Adverse Effect.

            5.7. Cooperate in Legal Proceedings. Except with respect to any
claim by an Obligor against Lender, each Obligor shall cooperate fully with
Lender with respect to any proceedings before any Governmental Authority which
may in any way affect the rights of Lender hereunder or under any of the Loan
Documents and, in connection therewith, Lender may, at its election and expense,
participate or designate a representative to participate in any such
proceedings.

            5.8. Leases.

            (a) Each applicable Obligor shall furnish Lender with executed
copies of all Major Leases, together with a detailed breakdown of income and
cost associated therewith. A new Lease which is not a Major Lease, and a renewal
or amendment of a Lease which is not a Major Lease, and any termination of, or
surrender of rights under, a Lease which is not a Major Lease, shall not require
Lender's approval, provided that, in the case of the execution of a new Lease
that is not a Major Lease or amendment or renewal of a Lease which is not a
Major Lease, (i) the rent and other amounts payable thereunder, based upon the
location of the demised premises, the type of property, and the tenant
improvements, allowances or concessions to be made or provided by the landlord
thereunder (taken as a whole) are "market" rate and (ii) the proposed terms
thereof (taken as a whole) are Commercially Reasonable. Any Lease that does not
satisfy the requirements set forth in the preceding sentence, and all new Leases
which are Major Leases, and all terminations, renewals and amendments of Major
Leases, and any surrender of rights under any Major Lease which results in a
reduction of the rent payable thereunder, may be entered into only with the
prior written consent of Lender, which consent

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<PAGE>

shall not be unreasonably withheld, delayed or qualified. Additionally, Lender's
approval shall not be required for the extension, renewal or other amendment of
a Lease that is not a Major Lease if such extension, renewal or other amendment
is at a rental rate required pursuant to the terms of such Tenant's existing
Lease and the other terms of such extended, renewed or modified Lease are, taken
as a whole, substantially the same as or better than those contained in such
Tenant's existing Lease. All new Leases shall provide that they are subject and
subordinate to any current or future mortgage financing on the applicable
Property and that the Tenant agrees to attorn to any foreclosing mortgagee at
such mortgagee's request; provided that Lender will enter into subordination,
nondisturbance and attornment agreements with any Tenant, if required to do so
pursuant to such Tenant's Lease, on Lender's standard form of subordination,
nondisturbance and attornment agreement attached hereto as Exhibit J, subject to
such changes as Lender shall approve in its reasonable discretion.

            (b) Notwithstanding anything to the contrary contained in this
Section 5.8, and in addition thereto, Lender agrees that Lender's consent shall
be given with respect to a proposed Major Lease if (i) the rent and other
amounts payable under such proposed Major Lease based upon the location of the
demised premises, the type of property, the tenant improvements, allowances and
concessions to be made or provided by the landlord under such proposed Major
Lease (taken as a whole) is at "market" rates, and (ii) the proposed terms of
such proposed Major Lease (taken as a whole) are Commercially Reasonable. In
addition, Lender's approval of any extension or renewal of a Major Lease
(whether such extension or renewal is by way of a modification of a Tenant's
existing Lease or by way of a new Lease with such Tenant) shall not be required
if such extension or renewal is required pursuant to the terms of such Tenant's
existing Lease and the other terms of such extended or renewed Lease are, taken
as a whole, substantially the same or better than those contained in such
Tenant's existing Lease, and Lender's approval of any amendment of a Major Lease
shall not be required if such amendment is required pursuant to the terms of
such Major Lease. Furthermore, Lender's approval of any termination of any Major
Lease shall not be required following a material default thereunder by the
respective Tenant.

            (c) Any proposed new Major Lease, and any proposed terminations,
renewals, amendments of a Major Lease or any other Lease amendment or matter
which requires Lender's approval under this Section 5.8, which is submitted to
Lender together with a summary of the economic terms thereof and any termination
options contained therein or, with respect to a proposed termination, a
description of the reason therefor and any proposed subordination,
non-disturbance and attornment agreement, shall be deemed approved by Lender if
(i) Lender shall not have notified the applicable Obligor in writing of its
disapproval and the reasons therefor within 10 Business Days after such
submission (provided, however, that if Lender requests additional information
during such 10-Business Day period, then such period shall be extended through
the 5th Business Day following Lender's receipt of such additional information),
and (ii) such submission explicitly and prominently refers to the 10-day deemed
approval requirement. For any such disapproval to be effective, it shall be
accompanied by a written statement in reasonable detail describing the basis for
such disapproval and, if relevant to Lender's disapproval, the suggested
modifications, if any, which if adopted would render such proposed Major Lease,
lease amendment, subordination, non-disturbance and attornment agreement or
other matter acceptable to Lender.

                                       73
<PAGE>

            (d) Each Obligor shall (i) deliver to each new Tenant a Tenant
Notice upon execution of such Tenant's Lease, and promptly thereafter deliver to
Lender evidence of such Tenant's receipt thereof; (ii) observe and perform all
the material obligations imposed upon the lessor under the Leases, the Material
Agreements and the Permitted Bond Debt in a commercially reasonable manner;
(iii) enforce all of the material terms, covenants and conditions contained in
the Leases on the part of the lessee thereunder to be observed or performed
except to the extent the enforcement thereof is not, in the reasonable judgment
of such Obligor, in the best interests of the applicable Property; (iv) not seek
to collect any of the rents thereunder more than one month in advance; (v) not
execute any assignment of lessor's interest in the Leases or associated rents
other than the Assignment of Leases; and (vi) not cancel or terminate any
guarantee of any of the Major Leases without the prior written consent of
Lender, not to be unreasonably withheld, delayed or qualified (clause (vi) of
this Section 5.8(d) shall be subject to the deemed approval requirement
contained in Section 5.8(c), mutatis mutandis).

            (e) Following the occurrence and during the continuance of any Event
of Default, the Obligors shall, upon Lender's request, to the extent not
prohibited by applicable Legal Requirements, remit to Lender an amount equal to
the aggregate amount of the security deposits (and any interest theretofore
earned thereon to which Tenants are entitled) under all Leases, which security
deposits will thereafter be held by Lender subject to the terms of the Leases
until such Event of Default is cured.

            5.9. Plan Assets, etc.

            (a) The Obligors will do, or cause to be done, all things necessary
to ensure that none of them will be deemed to hold Plan Assets at any time.

            (b) As long as there is outstanding any Loan, Obligor shall notify
Lender, promptly, and in any event within five Business Days after receipt
thereof by any Obligor, any ERISA Affiliate from a Multiemployer Plan sponsor, a
copy of each notice received by the Obligor, or any ERISA Affiliate concerning
(A) the imposition of Withdrawal Liability by a Multiemployer Plan which could
reasonably be expected to result in a Material Adverse Effect, (B) the
determination that a Multiemployer Plan is, or is expected to be, in
reorganization within the meaning of Title IV of ERISA which could reasonably be
expected to result in a Material Adverse Effect, (C) the termination of a
Multiemployer Plan within the meaning of Title IV of ERISA which could
reasonably be expected to result in a Material Adverse Effect, and (D) the
amount of liability incurred, or which may be incurred, by the Obligor, or any
ERISA Affiliate in connection with any event described in clause (A), (B) or (C)
above, individually or collectively, which could reasonably be expected to
result in a Material Adverse Effect.

            5.10. Further Assurances. Each Obligor shall, at the Obligors' sole
cost and expense, from time to time as reasonably requested by Lender, execute,
acknowledge, record, register, file and/or deliver to Lender such other
instruments, agreements, certificates and documents (including Uniform
Commercial Code financing statements and amended or replacement mortgages) as
Lender may reasonably request to evidence, confirm, perfect and maintain the
Liens securing or intended to secure the obligations of the Obligors under the
Loan Documents or to facilitate a replacement of the Cash Management Bank, in
each case if requested by Lender, and do and execute all such further lawful and
reasonable acts,

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<PAGE>

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. Each Obligor hereby authorizes and
appoints Lender as its attorney-in-fact to execute, acknowledge, record,
register and/or file such instruments, agreements, certificates and documents,
and to do and execute such acts, conveyances and assurances, should the
applicable Obligor fail to do so itself in violation of this Agreement following
written request from Lender, in each case without the signature of any Obligor.
The foregoing grant of authority is a power of attorney coupled with an interest
and such appointment shall be irrevocable for the term of this Agreement. Each
Obligor hereby ratifies all actions that such attorney shall lawfully take or
cause to be taken in accordance with this Section 5.10.

            5.11. Management of Collateral.

            (a) Subject to Section 5.11(f), each Property shall be managed by
the applicable Obligor owning such Property or an Affiliate of such Obligor
(provided that the management fee payable to such Affiliate shall not exceed 4%
of Operating Income for the applicable Property), or by a Qualified Manager
appointed in accordance with Section 5.11(b), in accordance with standards at
least equal to those of owners and managers of office buildings of comparable
quality in the respective locale.

            (b) Each Obligor may from time to time appoint one or more Qualified
Managers to manage one or more of the Properties, provided that the appointment
of each Qualified Manager (other than the appointment of an Affiliate, so long
as no Manager Appointment Event is continuing) and the terms of its management
agreement (excluding the management agreement of any Affiliate, provided that
the management fee payable to such Affiliate shall not exceed 4% of Operating
Income and such management agreement shall otherwise be on commercially
reasonable terms) shall be subject to Lender's prior written consent (such
consent not to be unreasonably withheld, delayed or qualified) (and any
subsequent replacement of a Property Manager or material modification to a
management agreement shall also require such consent (such consent not to be
unreasonably withheld, delayed or qualified)). Each Qualified Manager selected
hereunder to manage one or more of the Properties shall execute a Subordination
of Property Management Agreement for Lender's benefit. Each property management
agreement hereafter entered into by any Obligor shall be collaterally assigned
to Lender pursuant to the Contract Assignment.

            (c) Following the occurrence of a Manager Appointment Event with
respect to any Property, Lender shall have the right to require that the
applicable Obligor, within 30 days following receipt of written notice from
Lender, terminate the applicable Property Manager or cease to self-manage such
Property, as the case may be, and appoint a replacement Property Manager
satisfactory to Lender.

            (d) Each Obligor covenants and agrees to maintain or cause to be
maintained at all times during the term of the Loan worker's compensation
insurance with respect to each Property as required by Governmental Authorities.

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             (e) Each Obligor shall promptly notify Lender in writing of any
"Event of Default" under and as defined in any Property Management Agreement of
which such Obligor has actual knowledge.

            (f) Notwithstanding anything in this Agreement to the contrary, at
any time the Properties known as Minnesota Center, Williams Center I & II, Clark
Tower, Borden Building, and Capital Center II & III may, at the applicable
Obligor's option, be managed by Persons that are not Qualified Managers so long
as (i) each of the other requirements provided in subsection (b) hereof have
been satisfied and (ii) the sum of the Allocated Loan Amounts of the Properties
managed by Persons that are not Qualified Managers shall not exceed 5% of the
sum of the Allocated Loan Amounts of all Properties which are then Collateral
for the Loans.

            5.12. Annual Financial Statements. As soon as available, and in any
event within 120 days after the close of each Fiscal Year, the Obligors will
furnish, or cause to be furnished, to Lender a balance sheet of each Obligor, on
a Property-by-Property basis as at the end of such year, together with related
statements of income and partners/members capital for such Fiscal Year, audited
by independent certified public accountants of recognized national standing
whose opinion shall be to the effect that such financial statements have been
prepared in accordance with GAAP applied on a consistent basis and shall not be
qualified as to the scope of the audit or as to the status of any Obligor as a
going concern. Together with the Obligors' annual financial statements, the
Obligors shall furnish to Lender:

            (i) a statement of cash flows, on a Property-by-Property basis;

            (ii) then current rent rolls and occupancy reports;

            (iii) an annual report, for the most recently completed fiscal year,
      describing Capital Expenditures (stated separately with respect to any
      project costing in excess of $250,000), Tenant Improvements, Leasing
      Commissions, and renovations, expansions and enhancements;

            (iv) the Annual Budget for the applicable Fiscal Year; and

            (v) such other information as Lender shall reasonably request which
      can be provided by the Obligors without undue burden or cost.

            5.13 Quarterly Reporting. As soon as available, and in any event
within 60 days after the end of each Fiscal Quarter of the Obligors, the
Obligors will furnish, or cause to be furnished, to Lender, a quarterly and
year-to-date financial statements prepared for such fiscal quarter with respect
to the Obligors, including an operating statement as at the end of such Fiscal
Quarter, together with related statements of income, partners/members capital
and cash flow (on a Property-by-Property basis) for such Fiscal Quarter and for
the portion of the Fiscal Year ending with such Fiscal Quarter, which shall be
accompanied by an Officer's Certificate as being true and correct in all
material respects and as having been prepared in accordance with GAAP applied on
a consistent basis, subject to changes resulting from audit and normal year-end
audit adjustments. Each such quarterly report shall be accompanied by the
following:

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             (i) a statement in reasonable detail which calculates DSCR and Net
      Operating Income for the trailing four Fiscal Quarters, in each case,
      ending at the end of such quarter;

            (ii) a comparison of the budgeted income and expenses and the actual
      income and expenses for such Fiscal Quarter and year-to-date for the
      Properties, together with a reasonably detailed explanation of any
      variances of 5% or more between budgeted and actual amounts in the
      aggregate and on a line-item basis for such period and year to date,
      determined on a Property-by-Property basis;

            (iii) a summary of Leases signed during such quarter, which summary
      shall include the Tenant's name, lease term, base rent, Tenant
      Improvements, Leasing Commissions paid, free rent and other concessions;
      and

            (iv)  then current rent rolls and occupancy reports.

            5.14. Assignment or Participation of Note. In the event that Lender
notifies the Obligors that a sale of a Note or any interest therein (an
"Assignment"), or a sale of a participation interest in a Note (a
"Participation"), to another party is desirable, then, subject to Section 9.7,
the Obligors agree reasonably to cooperate with Lender in order to effectuate
such Assignment or Participation.

            5.15. Insurance.

            (a) Each Obligor shall obtain and maintain with respect to its
      Properties, for the mutual benefit of such Obligor and Lender at all
      times, the following policies of insurance:

            (i) insurance against loss or damage by standard perils included
      within the classification "All Risks of Physical Loss". Such insurance
      shall be in an aggregate amount equal to the then full replacement cost of
      the respective Properties and fixtures (without deduction for physical
      depreciation); shall have reasonable and customary deductibles; shall be
      paid annually in advance; shall contain a "Replacement Cost Endorsement"
      with a waiver of depreciation; and shall include an ordinance or law
      coverage endorsement containing Coverage A: "Loss Due to Operation of Law"
      (with a minimum liability equal to replacement cost), Coverage B:
      "Demolition Cost" and Coverage C: "Increased Cost of Construction"
      coverages;

            (ii) flood insurance if any portion of the Property is located in an
      area identified by the Federal Emergency Management Agency as a "100 year
      flood plain", in an amount at least equal to the lesser of the applicable
      Release Price or the maximum limit of coverage available with respect to
      the Property under such program;

            (iii) Commercial general liability insurance, including broad form
      property damage, blanket contractual and personal injuries (including
      death resulting therefrom) coverages and containing minimum limits per
      occurrence of not less than $1,000,000 with not less than a $2,000,000 per
      location aggregate for any policy year. In addition, at least $75,000,000
      per Property excess and/or umbrella liability insurance (or, if such
      Obligor's liability insurance is not a blanket policy, $50,000,000 per
      Property) shall be

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<PAGE>

      obtained and maintained for any and all claims, including all legal
      liability imposed upon such Obligor and all related court costs and
      attorneys' fees and disbursements;

             (iv) rental loss and/or business interruption insurance in an
      annual aggregate amount equal to the estimated gross revenues from such
      Property, such insurance to cover losses for a period of at least 18
      months. The amount of such insurance shall be increased from time to time
      (but not more than once in any 12-month period) as and when the gross
      revenues from the Property increase;

            (v) insurance against loss or damage from (A) leakage of sprinkler
      systems and (B) explosion of steam boilers, air conditioning equipment,
      high pressure piping, machinery and equipment, pressure vessels or similar
      apparatus now or hereafter installed in any of the Improvements (without
      exclusion for explosions) and insurance against loss of occupancy or use
      arising from any breakdown, in such amounts as are generally available at
      reasonable premiums and are generally required by institutional lenders
      for properties comparable to such Property;

            (vi) worker's compensation insurance with respect to all employees
      of such Obligor as and to the extent required by any Governmental
      Authority or Legal Requirement and employer's liability coverage of at
      least $1,000,000;

            (vii) during any period of repair or restoration, builder's "all
      risk" insurance in an amount equal to not less than the full insurable
      value of the Property against such risks (including fire and extended
      coverage and collapse of the Improvements to agreed limits) as Lender may
      reasonably request, in form and substance reasonably acceptable to Lender;

            (viii) coverage to fully compensate for the cost of demolition and
      the increased cost of construction, renovation or alteration for the
      Property;

            (ix) if required by Lender, earthquake insurance in an amount equal
      to the probable maximum loss of such Property, as indicated in the
      applicable Engineering Report, with a reasonable and customary deductible;

            (x) if required by Lender, windstorm insurance in an amount equal to
      the probable maximum loss of such Property, as indicated in the applicable
      Engineering Report, with a deductible reasonably approved by Lender; and

            (xi) such other insurance as may from time to time be reasonably
      required by Lender, to the extent such insurance is then routinely
      maintained by owners of similar properties in the applicable locations and
      is available at commercially reasonable rates.

            (b) All policies of insurance (the "Policies") required pursuant to
this Section 5.15:

            (i) with respect to at least 75% of the applicable limit of
      liability, shall be issued by an insurer which has a claims paying ability
      rating of not less than Aa2 by Moody's, AA- by S&P and either AA- by Fitch
      or, if not rated by Fitch, A:VIII by A.M.

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<PAGE>

      Best (except that with respect to at least 50% of the applicable limit of
      liability, earthquake insurance may be issued by an insurer which has a
      claims paying ability rating of not less than A2 by Moody's and A by S&P,
      subject to Section 5.15(d)); provided that no portion of the applicable
      limit of liability may be issued by an insurer which has a claims paying
      ability rating of less than A2 by Moody's or BBB- by S&P;

            (ii) shall be maintained throughout the term of the Loans without
      cost to Lender;

            (iii) with respect to casualty policies, shall contain a standard
      noncontributory mortgagee clause naming Lender and its successors and
      assigns as first mortgagee and loss payee;

            (iv) with respect to liability policies, shall name Lender and its
      successors and assigns as additional insureds;

            (v) with respect to rental or business interruption insurance
      policies, shall name Lender and its successors and/or assigns as loss
      payee;

            (vi) shall contain an endorsement providing that neither such
      Obligor nor Lender nor any other party shall be a co-insurer under said
      Policies and that Lender shall receive at least 30 days' prior written
      notice of any modification, reduction or cancellation;

            (vii) shall contain an endorsement providing that no act or
      negligence of such Obligor or of a Tenant or other occupant shall affect
      the validity or enforceability of the insurance insofar as a mortgagee is
      concerned;

            (viii) shall contain a waiver of subrogation against Lender;

            (ix) shall contain deductibles no larger than is customary for
      similar policies covering similar properties in the geographic market in
      which such Property is located; and

            (x) may be in the form of a blanket policy, provided that the
      Obligors shall provide evidence to Lender that the insurance premiums for
      the Properties are separately allocated under such Policy to the
      Properties.

Any policies of insurance maintained by an Obligor but not required hereunder
shall comply with clauses (iii), (iv), (v), (vi) and (viii) above.

            (c) The Obligors shall pay the premiums for all Policies as the same
become due and payable. Copies of such Policies, certified as true and correct
by the Obligors, or certificates thereof (on ACORD Form 27 where available),
shall be delivered to Lender promptly upon request. Not later than 30 days prior
to the expiration date of each Policy, the applicable Obligor shall deliver to
Lender evidence of its renewal.

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<PAGE>

             (d) The Nonrecourse Carveout Indemnitor agrees with Lender, as
evidenced by the signature of the Nonrecourse Carveout Indemnitor below, that if
(i) an earthquake damage occurs with respect to a Property, (ii) the applicable
Obligor is permitted to apply insurance proceeds toward restoration pursuant
hereto, and (iii) any portion of the earthquake insurance maintained by the
Obligors hereunder with respect to such Earthquake Insurance Property is issued
by an insurer which has a claims paying ability rating of less than "Aa" or "AA"
(or the equivalent), then the Nonrecourse Carveout Indemnitor shall be liable to
make a payment to the Obligors, for the benefit of the Lender, in the amount of
the applicable deductible, for application in accordance with Section 5.16.

            5.16. Casualty and Condemnation.

            (a) In the event of any Casualty or Condemnation, the applicable
Obligor shall give prompt notice thereof to Lender. Lender (i) shall, provided
there is no continuing Event of Default, jointly with such Obligor settle and
adjust any claims; provided, however, that so long as no Event of Default is
continuing, such Obligor may settle and adjust claims aggregating not in excess
of the lesser of (x) $10,000,000 and (y) 10% of the applicable Allocated Loan
Amount if such settlement or adjustment is carried out in a competent and timely
manner, and such proceeds shall be discharged directly to such Obligor to be
applied to the restoration of the affected Property, (ii) may, after the
occurrence and during the continuation of an Event of Default which constitutes
a Lender Settlement Event, settle and adjust any claims without the consent or
participation of such Obligor, (iii) may, after the occurrence and during the
continuation of an Event of Default which does not constitute a Lender
Settlement Event, direct a Qualified Adjuster to settle and adjust such claims
in a manner that would, in the professional opinion of such Qualified Adjuster,
maximize the present value of aggregate recoveries (provided that any settlement
which would result in receipt by Lender of less than the amount of the
Indebtedness shall be subject to the prior written consent of Lender), and (iv)
shall, at its option, allow such Obligor to settle and adjust any claims. The
reasonable expenses incurred by Lender in connection with the adjustment and
collection of Loss Proceeds shall become part of the Indebtedness and shall be
reimbursed by the Borrowers to Lender upon demand therefor.

            (b) All Loss Proceeds from any Casualty or Condemnation not made
available to the Obligors under Section 5.16(a) above shall be immediately
deposited into the Loss Proceeds Account, except as otherwise required under any
applicable Ground Lease and except for monthly rental loss proceeds (which
rental loss proceeds shall be deposited into the Cash Management Account). If
any Condemnation or Casualty occurs as to which, (x) Loss Proceeds total less
than 1% of the sum of the Allocated Loan Amounts of the Properties which are
then Collateral for the Loans or (y) in the reasonable judgment of Lender:

            (i) the Condemnation or Casualty, together with all contemporaneous
      Condemnations and Casualties, did not involve an actual or constructive
      loss of more than 15% (in the case of a Condemnation) or 30% (in the case
      of a Casualty) of the aggregate fair market value of the Properties and
      did not render untenantable or result in the cancellation of Leases
      covering more than 15% (in the case of a Condemnation) or 30% (in the case
      of a Casualty) of the aggregate rentable area of the Properties;

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             (ii) restoration of the affected Property is expected to be
      completed prior to the expiration of rental interruption insurance and at
      least six months prior to the Ten-Year Maturity Date; and

            (iii) after such restoration, the fair market value of the affected
      Property will equal at least the fair market value of such Property
      immediately prior to such Condemnation or Casualty (assuming the affected
      portion of the Property is relet);

or (z) if Lender otherwise elects to allow the applicable Obligor to restore the
affected Property, then, provided that no Event of Default shall have occurred
and be then continuing, the Loss Proceeds after receipt thereof by Lender and
reimbursement of any reasonable expenses actually incurred by Lender in
connection therewith shall be disbursed to such Obligor from time to time upon
Lender's being furnished with (i) evidence reasonably satisfactory to it of the
estimated cost of completion of the restoration, (ii) funds, or assurances
reasonably satisfactory to Lender that such funds are available and sufficient
in addition to the remaining Loss Proceeds, to complete the proposed
restoration, and (iii) such architect's certificates, waivers of lien,
contractor's sworn statements, title insurance endorsements, bonds, plats of
survey and such other evidences of cost, payment and performance as Lender may
reasonably require; and Lender may, in any event, require that all plans and
specifications for restoration reasonably estimated by Lender to exceed the
lesser of (x) $10,000,000 and (y) 10% of the applicable Allocated Loan Amount be
submitted to and approved by Lender prior to commencement of work (which
approval shall not be unreasonably withheld, conditioned or delayed). If Lender
reasonably estimates that the cost to restore will exceed the lesser of (x)
$10,000,000 and (y) 10% of the applicable Allocated Loan Amount, Lender may
retain a local construction consultant to inspect such work and review such
Obligor's request for payments and such Obligor shall, on demand by Lender,
reimburse Lender for the actual reasonable fees and disbursements of such
consultant (which fees and expenses shall constitute Indebtedness). With respect
to disbursements made pursuant to this paragraph, (i) no payment of "hard" costs
of construction shall exceed 90% of the value of the work performed from time to
time until such time as 50% of the restoration (calculated based on anticipated
aggregate cost of the work) has been completed, and amounts retained prior to
completion of 50% of the restoration shall not be paid prior to the final
completion of the restoration, and (ii) funds other than Loss Proceeds shall be
disbursed prior to disbursement of such Loss Proceeds, and at all times the
undisbursed balance of such proceeds remaining in the Loss Proceeds Account,
together with any additional funds irrevocably and unconditionally deposited
therein or irrevocably and unconditionally committed for that purpose, shall be
at least sufficient in the reasonable judgment of Lender to pay for the cost of
completion of the restoration free and clear of all liens or claims for lien.
Any Loss Proceeds not required to be made available for restoration by the
provisions of this Section or applied to the prepayment of the Notes in
accordance with subsection (d) below shall be disbursed to the Cash Management
Account.

            (c) The Obligors shall cooperate with Lender in obtaining for Lender
the benefits of any Loss Proceeds lawfully or equitably payable to Lender in
connection with the affected Property. Lender shall be reimbursed for any actual
expenses reasonably incurred in connection therewith (including reasonable
attorneys' fees and disbursements, and, if reasonably necessary to collect such
proceeds, the expense of an Appraisal on behalf of Lender) out of such Loss
Proceeds. Except for the expenses described in this subsection (c) and the costs
and

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<PAGE>

expenses of the local construction consultant described in subsection (b)
hereof, the Obligors shall not be responsible for any other costs or expenses of
Lender or Servicer (including, without limitation, any processing or other
Lender or Servicer fee) in connection with a Casualty or Condemnation or the
disbursement of Loss Proceeds.

            (d) If the applicable Obligor is not entitled to apply Loss Proceeds
toward the restoration of the affected Property pursuant to Section 5.16(b) and
Lender elects not to permit such Loss Proceeds to be so applied, then provided
no Event of Default is continuing, such Loss Proceeds shall be applied on the
second Payment Date following such election to the prepayment of the Floating
Rate Notes and the Fixed Rate Notes pro rata in accordance with their then
outstanding principal balances and shall be accompanied by interest thereon
through the end of the applicable Interest Accrual Periods (and if an Event of
Default is continuing such Loss Proceeds shall be applied on such Payment Date
in the manner set forth in Section 7.4).

            (e) Notwithstanding anything herein to the contrary, provided no
Event of Default is continuing, the Obligors shall be entitled to all Loss
Proceeds obtained in connection with a Condemnation of a portion of a Property
if the income generated from such Property and the fair market value of such
Property is not materially reduced and to the extent such Loss Proceeds are not
necessary for the restoration of the Property remaining after the Condemnation
as determined by the applicable Obligor.

            5.17. General Indemnity. Subject to Section 9.19, the Obligors shall
indemnify, reimburse, defend and hold harmless Lender and its officers,
directors, employees and agents (collectively, the "Indemnified Parties") for,
from and against any and all liabilities, obligations, losses, damages,
penalties, assessments, actions, or causes of action, judgments, suits, claims,
demands, costs, expenses (including reasonable attorneys' fees and legal
expenses whether or not suit is brought and settlement costs) and disbursements
of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against the Indemnified Parties, in any way relating to or arising out
of the making or holding or enforcement of the Loans by Lender or the
administration of the Transaction to the extent resulting, directly or
indirectly, from any claim made (whether or not in connection with any legal
action, suit, or proceeding) by or on behalf of any Person; provided, however,
that no Indemnified Party shall have the right to be indemnified hereunder for
its own fraud, bad faith, gross negligence or willful misconduct. In addition,
the Obligors shall, to the extent permitted by law, indemnify Lender against any
present or future stamp, documentary or other similar or related taxes or other
similar or related charges now or hereafter imposed, levied, collected, withheld
or assessed by any United States Governmental Authority by reason of the
execution and delivery of the Loan Documents and any consents, waivers,
amendments and enforcement of rights under the Loan Documents. The provisions of
and undertakings and indemnification set forth in this Section 5.17 shall
survive until three years after the satisfaction and payment in full of the
Indebtedness and termination of this Agreement (except that, as to any claim
pending at such date, such provisions, undertakings and indemnification shall
survive until the ultimate disposition of such claim).

            5.18  Condominium Covenants.

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            (a) In connection with its ownership of the Obligor Units, the
applicable Obligor shall, to the extent (x) permitted by law, and (y) failure to
do so would cause a Property Material Adverse Effect:

            (i) comply with all material terms, conditions and covenants of the
      Declaration as the same may be from time to time amended, and all
      documents and agreements binding upon or otherwise pertaining to the
      Condominium or such Obligor;

            (ii) conform to and abide by all law affecting the Condominium,
      condominium development and land sales, including all applicable federal
      laws and laws of the State of Texas;

            (iii) promptly deliver to Lender a true and complete copy of each
      and every notice of default received by such Obligor with respect to any
      obligation of such Obligor under the provisions of the Declaration, the
      by-laws of the Association or the rules and regulations promulgated
      thereunder;

            (iv) deliver to Lender copies of any written notices of default or
      event of default relating to the Condominium served by the applicable
      Obligor;

            (v) after the occurrence of an Event of Default, so long as any of
      the Loans are outstanding, the applicable Obligor shall not cast its
      vote(s) in the Association without the prior written consent of Lender
      (which consent shall not be unreasonably withheld or delayed).

            (b) In connection with its ownership of the Obligor Units, the
applicable Obligor shall pay to the Association all Condominium fees,
assessments and charges assessed pursuant to the Declaration against the Obligor
and the Obligor Units as and when the same become due and payable. Upon request
of Lender, the applicable Obligor shall deliver to Lender evidence reasonably
satisfactory to Lender that all Condominium fees, assessments and charges for
the immediately preceding month or quarter, as applicable, and all other fees
and charges assessed pursuant to the Declaration against the applicable Obligor
and the Obligor Units, which are then due and payable, have been paid by such
Obligor, which evidence shall include, without limitation, a true and correct
photocopy of such Obligor's cancelled check(s) evidencing such payment(s).

            (c) In the event proceeds of a Casualty or Condemnation with respect
to the common areas of the Condominium are required to be deposited into an
account pursuant to Sections 11.04 and/or 12.01 of the Declaration, the
applicable Obligor shall cause such the Condominium to select an Eligible
Account to serve such purpose.

                                   ARTICLE VI

                               NEGATIVE COVENANTS

            6.1. Liens on the Properties. No Obligor shall permit the existence
of any Lien on any of its assets, other than Permitted Encumbrances.

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<PAGE>

            6.2. Ownership. Except for the ownership by the Maryland Guarantors
of equity interests in the corresponding Borrower, no Obligor shall own any
assets other than the Properties and related personal property and fixtures
located therein or used in connection therewith.

            6.3. Transfer. No Obligor shall Transfer any Collateral other than
in compliance with Article II and other than the replacement or other
disposition of obsolete or non-useful personal property and fixtures in the
ordinary course of business.

            6.4. Debt. No Obligor shall have any Debt, other than Permitted
Debt.

            6.5. Dissolution; Merger or Consolidation. No Obligor shall
dissolve, terminate, liquidate, merge with or consolidate into another Person
without first causing the Loan to be assumed by a Qualified Successor Borrower
pursuant to Section 2.4 other than with respect to a technical dissolution or
termination for tax purposes that is not a dissolution for state law purposes
and that is immediately followed by a reconstitution of such entity.

            6.6. Change in Business. No Obligor shall 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.

            6.7. Debt Cancellation. No Obligor shall cancel or otherwise forgive
or release any material claim or Debt owed to it by any Person, except for
adequate consideration or in the ordinary course of its business.

            6.8. Affiliate Transactions. No Obligor shall enter into, or be a
party to, any transaction with any Affiliate of such Obligor, except on terms
which are no less favorable to such Obligor than would be obtained in a
comparable arm's length transaction with an unrelated third party.

            6.9. Misapplication of Funds. No Obligor shall distribute any
Revenue or Loss Proceeds in violation of the provisions of this Agreement, fail
to remit amounts to the Cash Management Account as required by Section 3.1(b),
or misappropriate any security deposit or portion thereof.

            6.10. Place of Business. No Obligor shall change its chief executive
office or its principal place of business without giving Lender at least 30
days' prior written notice thereof and promptly providing Lender such
information and replacement Uniform Commercial Code financing statements as
Lender may reasonably request in connection therewith.

            6.11. Modifications and Waivers. Unless otherwise consented to in
writing by Lender (such consent not to be unreasonably withheld, delayed or
qualified):

            (i) No Obligor shall terminate its operating agreement or
      certificate of formation, as the case may be;

            (ii) No Obligor shall amend or modify any portion of its operating
      agreement or certificate of formation in any manner that would alter the
      single purpose or

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<PAGE>

      bankruptcy remoteness provisions contained therein or that would result in
      a Material Adverse Effect on such Obligor.

            (iii) No Obligor shall amend, modify, surrender or waive any
      material rights or remedies under, or enter into or terminate, any
      Material Agreement or Permitted Bond Debt, if doing so would have a
      Property Material Adverse Effect.

            (iv) No Obligor shall amend, modify, surrender, cancel, terminate or
      waive any material rights or remedies under, or agree or otherwise consent
      to the amendment, modification, surrender, cancellation, termination or
      waiver of any material rights or remedies under, any Ground Lease,
      provided that Lender's consent shall not be required with respect to any
      of the foregoing under this clause (iv) if Rating Confirmation is received
      with respect thereto.

            6.12. ERISA.

            (a) No Obligor shall maintain or contribute to, or agree to maintain
or contribute to, or permit any ERISA Affiliate of such Obligor to maintain or
contribute to or agree to maintain or contribute to, any employee benefit plan
subject to Title IV or Section 302 of ERISA or Section 412 of the Code, other
than with respect to any Multiemployer Plan.

            (b) No Obligor shall hold any Plan Assets by reason of Department of
Labor regulation Section 2510.3-101 or otherwise.

            (c) No Obligor and no ERISA Affiliate shall incur any liability with
respect to any Multiemployer Plan or all Multiemployer Plans which, alone or in
the aggregate, could reasonably be expected to result in a Material Adverse
Effect.

            6.13. Alterations and Expansions. No Obligor shall perform or
contract to perform any Material Alteration without the prior written consent of
Lender, which consent shall not be unreasonably withheld, conditioned or delayed
provided no Event of Default is continuing and, provided no Event of Default is
continuing, shall be deemed given by Lender if (A) Lender shall not have
notified the applicable Obligor in writing of its refusal to grant such consent
within the Material Alteration Approval Period (as hereinafter defined) after
its receipt of a written request for such consent from such Obligor and (B) the
written request described in clause (A) explicitly and prominently refers to the
deemed approval requirement during the Material Alteration Approval Period. If
Lender's consent is requested hereunder with respect to a Material Alteration
and the cost of such Material Alteration exceeds $10,000,000, Lender may retain
a construction consultant to review such request and, if such request is
granted, Lender may retain a construction consultant to inspect the work from
time to time. The Obligors shall, on demand by Lender, reimburse Lender for the
actual reasonable fees and disbursements of such consultant. As used herein,
"Material Alteration Approval Periods" shall mean the 10 Business Day period
following the Lender's receipt of Obligor's written request; provided, however,
that Lender may by written notice given to the applicable Obligor within the
initial 10 Business Day period extend the initial Material Alteration Approval
Period for a reasonable time (not to exceed 30 days, subject to reasonable
extension by Lender if Lender is diligently pursuing its evaluation of the
proposed Material Alteration).

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            6.14. Advances and Investments. No Obligor shall lend money or make
advances to any Person, or purchase or acquire any stock, obligations or
securities of, or any other interest in, or make any capital contribution to,
any Person, except for Permitted Investments. Notwithstanding anything in this
Agreement to the contrary, each Obligor shall be permitted to distribute
proceeds of the Loan, Revenues and other income to any of its Affiliates.

            6.15. Single-Purpose Entity. No Obligor shall cease to be a
Single-Purpose Entity. No Obligor shall change its name unless it shall have
first given Lender 30 days' prior written notice. Any Obligor that changes its
name shall execute such UCC financing statements as Lender shall determine are
necessary to reflect such change. No Obligor shall change its jurisdiction of
formation.

            6.16. Zoning and Uses. No Obligor shall, without the consent of
Lender, do any of the following:

            (i) initiate or support any limiting change in the permitted uses of
      any Property (or to the extent applicable, zoning reclassification of any
      Property) or any portion thereof, seek any variance under existing land
      use restrictions, laws, rules or regulations (or, to the extent
      applicable, zoning ordinances) applicable to any Property if such variance
      would have a Property Material Adverse Effect, or use or permit the use of
      any Property in a manner that would result in the use of any Property
      becoming a nonconforming use under applicable land-use restrictions or
      zoning ordinances or that would violate the terms of any Lease, operating
      agreement, Legal Requirement or Permitted Encumbrance;

            (ii) consent to any modification, amendment or supplement to any of
      the terms of any Permitted Encumbrance in any manner that would have a
      Property Material Adverse Effect;

            (iii) impose or consent to the imposition of any restrictive
      covenants, easements or encumbrances upon any Property in any manner that
      would have a Property Material Adverse Effect or have a material adverse
      effect on the transferability of any Property;

            (iv) execute or file any subdivision plat affecting any Property, or
      institute, or permit the institution of, proceedings to alter any tax lot
      comprising any Property in any manner that would have a Property Material
      Adverse Effect; or

            (v) permit or consent to any Property being used by the public or
      any Person in such manner as might make reasonably likely a claim of
      adverse usage or possession or of any implied dedication or easement which
      claim, if successful, would have a Property Material Adverse Effect.

            6.17. Waste. No Obligor shall commit or permit any Waste on any
Property, nor take any actions that might invalidate any insurance carried on
any Property.

            6.18. Condominium Covenants. In connection with its ownership of the
Obligor Units, the applicable Obligor shall not, without the prior written
consent of Lender,

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amend or cause to be amended the Declaration or the by-laws of the Association
in any manner that might diminish the value of the Obligor's Units or diminish
in any material respect the rights of the applicable Obligor thereunder, and the
applicable Obligor shall not, without the consent of Lender, terminate the
Declaration or the by-laws of the Association for any reason or purpose
whatsoever.

                                   ARTICLE VII

                                    DEFAULTS

            7.1. Event of Default. The occurrence of any one or more of the
following events shall be, and shall constitute the commencement of, an "Event
of Default" hereunder (any Event of Default which has occurred shall continue
unless and until cured by the Obligors or waived by Lender in its sole
discretion):

            (a) Payment. The Borrowers shall (i) default in the payment when due
of any principal or interest owing hereunder or under the Notes (including any
mandatory prepayment required hereunder), subject to Lender's right in its sole
and absolute discretion to provide, by written notice to the Borrowers, a grace
period through no later than the penultimate day of the applicable Floating Rate
Interest Accrual Period, or (ii) default, and such default shall continue for at
least five (5) Business Days after written notice to the Borrowers that such
amounts are owing, in the payment when due of fees, expenses or other amounts
owing hereunder, under the Notes or under any of the other Loan Documents.
Notwithstanding anything to the contrary set forth in this Agreement including,
without limitation, the terms of this Section 7.1(a), if an Event of Default
described in this Section 7.1(a) shall arise by reason of the Borrowers' failure
to make a payment required to be made on a Payment Date (other than the Maturity
Date), and such failure has not occurred on any other occasion in the prior
12-month period, then Lender's right to accelerate the Loan under Section 7.2 by
reason of such failure shall be conditioned on Borrower's failure to cure such
default by 12:30 p.m. on the first Business Day after Borrower's receipt from
Lender of written notification thereof.

            (b) Representations. Any representation or warranty made by any
Obligor in any of the Loan Documents, or in any report, certificate, financial
statement or other instrument, agreement or document furnished to Lender, or any
representation or warranty deemed to have been made by any Obligor hereunder in
connection with the acquisition of a Qualified Substitute Property, shall have
been false or misleading in any material respect (or, with respect to any
representation or warranty which itself contains a materiality qualifier, in any
respect), without regard to knowledge qualifiers contained therein, as of the
date such representation or warranty was made, and such default is not cured
within 30 days after written notice from Lender; provided, however, that if any
such default which cannot be cured by the payment of money is susceptible of
cure but cannot reasonably be cured within such 30-day period and the applicable
Obligor shall have commenced to cure such default within such 30-day period and
thereafter diligently and expeditiously proceeds to cure the same, the Obligors
shall have such additional time as is reasonably necessary to effect such cure,
but in no event in excess of 120 days from the original notice.

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<PAGE>

             (c) Other Loan Documents. Except to the extent willfully caused by
Lender, any Loan Document shall fail to be in full force and effect or to convey
the material liens, rights, powers and privileges purported to be created
thereby (including any such failure that results from a change in any provision
of the Condominium Act of the State of Texas or the interpretation thereof) and
such failure is not promptly remedied pursuant to Section 5.10; or a default
shall occur under any of the other Loan Documents, any Ground Lease, any
Permitted Bond Debt or the Declaration or by-laws of the Condominium, in each
case beyond the expiration of any applicable cure period.

            (d) Bankruptcy, etc. Any of the following shall occur:

            (i) Any Obligor or Single-Purpose Equityholder shall commence a
      voluntary case concerning itself under Title 11 of the United States Code
      (as amended, modified, succeeded or replaced, from time to time, the
      "Bankruptcy Code");

            (ii) Any Obligor or Single-Purpose Equityholder shall commence any
      other proceeding under any reorganization, arrangement, adjustment of
      debt, relief of creditors, dissolution, insolvency or similar law of any
      jurisdiction whether now or hereafter in effect relating to such Obligor
      or Single-Purpose Equityholder;

            (iii) there is commenced against any Obligor or Single-Purpose
      Equityholder an involuntary case under the Bankruptcy Code, or any such
      other proceeding, which remains undismissed for a period of 60 days after
      commencement;

            (iv) any Obligor or Single-Purpose Equityholder is adjudicated
      insolvent or bankrupt;

            (v) any order of relief or other order approving any such case or
      proceeding is entered;

            (vi) any Obligor or Single-Purpose Equityholder suffers appointment
      of any custodian or the like for it or for any substantial portion of its
      property and such appointment continues unchanged or unstayed for a period
      of 90 days after commencement of such appointment;

            (vii) any Obligor or Single-Purpose Equityholder makes a general
      assignment for the benefit of creditors; or

            (viii) any action is taken by any Obligor or Single-Purpose
      Equityholder for the purpose of effecting any of the foregoing.

            (e) Change of Control. A Change of Control shall occur with respect
to any Obligor or Single-Purpose Equityholder; or any party shall hereafter
obtain 49% or more of the direct equity interests in any Obligor or
Single-Purpose Equityholder (even if not constituting a Change of Control) and
the Obligors shall fail to deliver to Lender with respect to such new
equityholder a new non-consolidation opinion which is in customary form as
confirmed in writing by each of the Rating Agencies.

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<PAGE>

            (f) Insurance. The Obligors shall fail to maintain in full force and
effect all Policies required hereunder.

            (g) ERISA; Negative Covenants. A default shall occur in the due
performance or observance by any Obligor of any term, covenant or agreement
contained in Section 5.9 or Article VI, and if such default is susceptible of
cure such default is not cured within 30 days after written notice from Lender,
provided, however, that if any such default which cannot be cured by the payment
of money is susceptible of cure but cannot reasonably be cured within such
30-day period and the Obligors shall have commenced to cure such default within
such 30-day period and thereafter diligently and expeditiously proceeds to cure
the same, the Obligors shall have such additional time as is reasonably
necessary to effect such cure, but in no event in excess of 90 days from the
original notice and provided further that no cure period shall be available with
respect to a default under Section 6.3, which default therefore shall constitute
an immediate Event of Default).

            (h) Other Covenants. A default shall occur in the due performance or
observance by the Obligors of any term, covenant or agreement (other than those
referred to in subsections (a) through (g), inclusive, of this Section 7.1)
contained in this Agreement or in any of the other Loan Documents, provided that
if such default referred to in this subsection (h) is susceptible of being
cured, such default shall not constitute an Event of Default unless and until it
shall remain uncured for 10 days after the Obligors receive written notice
thereof, for a default which can be cured by the payment of money, or for 30
days after Obligors receive written notice thereof, for a default which cannot
be cured by the payment of money; provided, however, that if a default which
cannot be cured by the payment of money is susceptible of cure but cannot
reasonably be cured within such 30-day period and the Obligors shall have
commenced to cure such default within such 30-day period and thereafter
diligently and expeditiously proceeds to cure the same, the Obligors shall have
such additional time as is reasonably necessary to effect such cure, but in no
event in excess of 120 days from the original notice.

Upon the occurrence of any such Event of Default and at any time thereafter when
such Event of Default is continuing, Lender or its successors or assigns may by
written notice to the Obligors, in addition to any other rights or remedies
available pursuant to this Agreement, the Notes, the Mortgages, and the other
Loan Documents, at law or in equity, declare by written notice to the Obligors
all or any portion of the Indebtedness to be immediately due and payable,
whereupon all or such portion of the Indebtedness shall so become due and
payable, and may enforce or avail itself of any or all rights or remedies
provided in the Loan Documents against the Obligors and the Properties
(including all rights or remedies available at law or in equity); provided,
however, that, notwithstanding the foregoing, if an Event of Default specified
in paragraph 7.1(d) shall occur, then the Notes and the Loans shall immediately
become due and payable without the giving of any notice or other action by
Lender.
            7.2. Remedies.

            (a) Upon the occurrence of an Event of Default, all or any one or
more of the rights, powers and other remedies available to Lender against the
Obligors under this Agreement, the Notes (or, with respect to the Maryland
Guarantors, the Maryland Guarantees), the Mortgages or any of the other Loan
Documents executed by or with respect to the Obligors, at law or in equity, may
be exercised by Lender at any time and from time to time, whether or not

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all or any portion of the Indebtedness 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 portion of the Properties. Any 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.

            (b) In the event of the foreclosure or other action by Lender to
enforce its remedies in connection with all or any portion of the Properties,
Lender shall apply all proceeds from any letters of credit (including any
Qualified Letters of Credit) or net proceeds of such foreclosure received to
repay the Indebtedness, the Indebtedness shall be reduced to the extent of such
net proceeds and the remaining portion of the Indebtedness shall remain
outstanding and secured by the Properties and the other Loan Documents, it being
understood and agreed by the Obligors that the Obligors are liable for the
repayment of all the Indebtedness; provided, however, that at the election of
Lender, the Notes shall be deemed to have been accelerated only to the extent of
the net proceeds actually received by Lender with respect to the Properties and
applied in reduction of the Indebtedness.

            (c) Upon the occurrence of any Event of Default, Lender may, but
without any obligation to do so and without notice to or demand on the Obligors
and without releasing any Obligor from any obligation hereunder or under any of
the other Loan Documents, take any action to cure such Event of Default. Lender
may enter upon any or all of the Properties upon reasonable notice to the
applicable Obligors for such purposes or appear in, defend, or bring any action
or proceeding to protect its interests and the interests of Lender in the
Properties or to foreclose any or all of the Mortgages or collect the
Indebtedness. The actual costs and expenses incurred by Lender in exercising
rights under this paragraph (including reasonable attorneys' fees to the extent
permitted by law), with interest at the Default Rate for the period after notice
from Lender that such costs or expenses were actually incurred to the date of
payment to Lender, shall constitute a portion of the Indebtedness, shall be
secured by the Mortgages and other Loan Documents and shall be due and payable
to Lender upon demand therefor.

            (d) Interest shall accrue on any judgment obtained by Lender in
connection with its enforcement of the Loans at a rate of interest equal to the
Default Rate.

            7.3. Remedies Cumulative. The rights, powers and remedies of Lender
under this Agreement shall be cumulative and not exclusive of any other right,
power or remedy that Lender may have against the Obligors pursuant to this
Agreement or the other Loan Documents executed by or with respect to the
Obligors, 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 its 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 by Lender to be expedient. A waiver of any Default
or Event of Default shall not be construed to be a waiver of any

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<PAGE>

subsequent Default or Event of Default or to impair any remedy, right or power
consequent thereon.

            7.4. Application of Payments after an Event of Default. During the
continuance of an Event of Default, all amounts received by Lender in respect of
the Loans shall be applied toward the components of the Indebtedness (e.g.,
interest, principal and other amounts payable hereunder), the Loans and the
Notes in such sequence as Lender shall elect in its sole discretion.

                                  ARTICLE VIII

                              CONDITIONS PRECEDENT

            8.1. Conditions Precedent to Closing. This Agreement shall become
effective on the date that all of the following conditions shall have been
satisfied (or waived in accordance with Section 9.3):

            (a) Loan Documents. Lender shall have received a duly executed copy
of each Loan Document. Each Loan Document which is to be recorded in the public
records shall be in form suitable for recording.

            (b) Collateral Accounts. Each of the Collateral Accounts shall have
been established with the Cash Management Bank and funded to the extent required
under Article III.

            (c) Opinions of Counsel. Lender shall have received (i) a New York
legal opinion in substantially the form of Exhibit I-1, (ii) legal opinions, in
substantially the form of Exhibit I-2, from the Obligors' local counsel in each
state in which a Property is located, (iii) a bankruptcy nonconsolidation
opinion in substantially the form of Exhibit I-3 with respect to each Person
owning at least a 49% direct equity interest in any Obligor or Single-Purpose
Equityholder, and (iv) a Delaware legal opinion in substantially the form of
Exhibit I-4.

            (d) Organizational Documents. Lender shall have received all
documents reasonably requested by Lender relating to the existence of the
Obligors and the Single-Purpose Equityholders, the validity of the Loan
Documents and other matters relating thereto, in form and substance reasonably
satisfactory to Lender, including, but not limited to:

            (i) Authorizing Resolutions. A certified copy of the resolutions of
      its board of managers approving and adopting the applicable Loan Documents
      and authorizing the execution and delivery thereof.

            (ii) Operating Agreement. Certified copies of the certificate of
      formation and the operating agreement of each such Person, in each case
      together with all amendments thereto.

            (iii) Certificates of Good Standing or Existence. Certificates of
      good standing or existence for each such Person issued as of a recent date
      by its state of organization and by each state in which Properties are
      located.

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<PAGE>

            (e) Lease; Material Agreements. Lender shall have received true and
complete copies of all Leases requested in writing by Lender and all Material
Agreements.

            (f) Lien Search Reports. Lender shall have received satisfactory
reports of Uniform Commercial Code, tax lien and judgment searches conducted by
a search firm reasonably acceptable to Lender with respect to the Properties,
the Obligors and the Single-Purpose Equityholders, such searches to be conducted
in such locations as Lender shall have requested.

            (g) No Default or Event of Default. No Default or Event of Default
shall have occurred and be continuing on such date either before or after the
execution and delivery of this Agreement.

            (h) No Injunction. No Legal Requirement shall exist, and no
litigation shall be pending or threatened, which in the good faith judgment of
Lender would enjoin, prohibit or restrain, or impose or result in the imposition
of any material adverse condition upon, the making or repayment of the Loans or
the consummation of the Transaction.

            (i) Representations and Warranties. The representations and
warranties herein and in 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 such date.

            (j) Tenant Estoppel Letters. Lender shall have received estoppel
letters in form and substance reasonably satisfactory to Lender from either (i)
Tenants occupying not less than 80% of the aggregate occupied rentable square
feet in the Properties or (ii) Tenants contributing not less than 80% of the
aggregate base rent at the Properties, which estoppel letters shall include
estoppel letters from the Tenants under each Major Lease, and such
subordination, non-disturbance and attornment agreement with respect to such
Major Leases as Lender shall reasonably require.

            (k) No Material Adverse Effect. As of the Closing Date, no event or
series of events shall have occurred which Lender reasonably believes has had or
is reasonably likely to have a Material Adverse Effect.

            (l) Transaction Costs. The Obligors shall have paid all Transaction
Costs (or provided for the direct payment of such Transaction Costs by Lender
from the proceeds of the Loans).

            (m) Insurance. Lender shall have received certificates of insurance
on ACORD Form 27, demonstrating insurance coverage in respect of the Properties
of types, in amounts, with insurers and otherwise in compliance with the terms,
provisions and conditions set forth herein. Such certificates shall indicate
that Lender is named as additional insured on each liability policy, and that
each casualty policy and rental interruption policy contains a loss payee
endorsement in favor of Lender.

            (n) Title. Lender shall have received a marked, signed commitment to
issue, or a pro-forma version of, a Qualified Title Insurance Policy in respect
of each Property, listing

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only encumbrances set forth in clauses (i), (ii), (iii), (v) and (vi) of the
definition of "Permitted Encumbrances" and such exceptions as are reasonably
satisfactory to Lender.

            (o) Zoning. Lender shall have received evidence reasonably
satisfactory to Lender that each Property is in compliance in all material
respects with all applicable zoning requirements (including, where obtainable,
zoning endorsements and letters from the applicable municipalities).

            (p) Permits; Certificate of Occupancy. Lender shall have received a
copy of all material Permits for the use and operation of the Properties and the
certificate(s) of occupancy, if required, for each Property, all of which shall
be in form and substance reasonably satisfactory to Lender.

            (q) Engineering Report. Lender shall have received a current
Engineering Report with respect to each Property, each of which reports shall be
in form and substance reasonably satisfactory to Lender.

            (r) Environmental Report. Lender shall have received an
Environmental Report (not more than six months old) with respect to each
Property which discloses no material environmental contingencies with respect to
such Property that would have a Material Adverse Effect.

            (s) Qualified Survey. Lender shall have received a Qualified Survey
with respect to each Property in form and substance reasonably satisfactory to
Lender.

            (t) Appraisal. Lender shall have obtained an Appraisal of each
Property reasonably satisfactory to Lender.

            (u) Consents, Licenses, Approvals, etc. Lender shall have received
copies of all consents, licenses and approvals, if any, required in connection
with the execution, delivery and performance by the Obligors, and the validity
and enforceability, of the Loan Documents, and such consents, licenses and
approvals shall be in full force and effect.

            (v) Financial Information. Lender shall have received (i) audited
financial statements for the Nonrecourse Carveout Indemnitor and operating
statements for the Properties, in each case for the prior three years, prepared
by an independent certified public accountant of recognized national standing,
(ii) current results from operations certified by an officer of the Nonrecourse
Carveout Indemnitor, and (iii) such other financial information as Lender shall
reasonably request, which information shall be in form and substance reasonably
satisfactory to Lender.

            (w) Annual Budget. Lender shall have received the 2001 Annual Budget
with respect to each Property.

            (x) Condominium Estoppel. Lender shall have received the Condominium
Estoppel.

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<PAGE>

            (y) Additional Matters. Lender shall have received such other
certificates, opinions, documents and instruments relating to the Loans as may
have been reasonably requested by Lender. All corporate and other proceedings,
all other documents (including all documents referred to herein and not
appearing as exhibits hereto) and all legal matters in connection with the Loans
shall be reasonably satisfactory in form and substance to Lender.

            8.2. Conditions Precedent to Addition of Qualified Substitute
Property. Any addition of a Qualified Substitute Property to the Collateral
which is otherwise permitted hereunder shall be made only upon satisfaction of
the following requirements:

            (a) Completion. The Qualified Substitute Property shall be fully
completed (except for punch-list items and the build-out of unleased space), and
at least 70% of the rentable area therein shall be leased to Tenants in
occupancy which have commenced payment of rent pursuant to executed Leases
(which, in the case of Major Leases, shall have been reasonably approved by
Lender).

            (b) Rating Agency Notification and Confirmation. Each Rating Agency
shall have received prior written notice of the proposed addition of the
Qualified Substitute Property to the Collateral and such other information with
respect to such Qualified Substitute Property as such Rating Agency shall
reasonably request. If following such a Property Substitution, the sum of the
initial Allocated Loan Amounts of Qualified Substitute Properties acquired by
the Obligors from time to time under Section 2.3 would exceed 15% of the
Aggregate Loan Amount, Lender shall have received Rating Confirmation with
respect thereto. Lender shall affirmatively recommend to the Rating Agencies
that they grant Rating Confirmation if Lender determines that the conditions
described in this Section 8.2 (other than such Rating Confirmation requirement)
and in Section 2.3 have been satisfied.

            (c) Representations and Warranties. Each of the representations and
warranties contained in Article IV of this Agreement shall be true and correct
in all material respects with respect to the Obligor acquiring the Property and
each Qualified Substitute Property on and as of the date such Qualified
Substitute Property is added to the Collateral except as set forth in any
Exception Report delivered to Lender (provided that any such Exception Report
shall be subject to Lender's reasonable approval, which shall be provided so
long as the matters set forth therein do not constitute a Property Material
Adverse Effect) and such Obligor's acquisition of such Property shall be deemed
to constitute such Obligor's representation to such effect. In addition, if a
material portion of such Qualified Substitute Property is a Ground Leased
Parcel, the applicable Obligor shall represent and warrant as follows:

            (i) a true and complete copy of the Ground Lease relating thereto
      has been delivered to Lender, and such Ground Lease or a memorandum
      thereof has been duly recorded;

            (ii) such Ground Lease permits the interest of the lessee thereunder
      to be encumbered by the applicable Mortgage and does not restrict the use
      of the Property by such lessee, its successors or assigns in a manner that
      would cause a Property Material Adverse Effect;

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<PAGE>

            (iii) such Ground Lease may not be cancelled or terminated by the
      ground lessor unless prior written notice of default shall have been given
      to Lender and the time specified in the Ground Lease for curing such
      default shall have expired without the same having been cured; no notice
      of termination by ground lessor shall be effective unless notice thereof
      has been sent to Lender;

            (iv) the leasehold estate of such Ground Lease has an original term
      (or an original term plus one or more optional renewal terms which may be
      exercised at the option of lessee) which extends not less than 20 years
      beyond the Maturity Date;

            (v) the base rental under such Ground Lease is not subject to
      material increase;

            (vi) such Ground Lease is not subject to any liens or encumbrances
      superior to, or of equal priority with, the applicable Mortgage (other
      than the related ground lessor's fee interest);

            (vii) to the best of the Obligors' knowledge, there is no Lien
      encumbering the related ground lessor's fee interest (or if any such Lien
      exists, it does not encumber the leasehold estate under the applicable
      Mortgage), and the Ground Lease shall remain prior to any Lien upon the
      related fee interest that may hereafter be granted;

            (viii) such Ground Lease is assignable by a holder of a deed of
      trust or mortgage encumbering the lessee's interest therein upon a
      foreclosure of such deed of trust or mortgage without the consent of the
      lessor thereunder;

            (ix) such Ground Lease is in full force and effect and no default
      has occurred thereunder nor, to the Obligors' knowledge, is there any
      existing condition which, but for the passage of time or the giving of
      notice or both, would result in a default under the terms of such Ground
      Lease;

            (x) such Ground Lease requires the lessor thereunder to give notice
      of any default by the lessee to a holder of a deed of trust or mortgage
      encumbering the lessee's interest therein; and such Ground Lease further
      provides that no notice given thereunder is effective against such holder,
      unless a copy has been given to such holder in the manner described in
      such Ground Lease;

            (xi) Lender constitutes a "mortgagee" (or the applicable
      corresponding term) as such term is used in the Ground Lease;

            (xii) a holder of a deed of trust or mortgage encumbering the
      lessee's interest therein is permitted at least 10 days, in the case of
      monetary defaults, and 30 days, in the case of non-monetary defaults, in
      addition to the applicable Obligor's applicable cure period to cure any
      default under such Ground Lease which is curable after the receipt of
      notice of any such default before the lessor thereunder may terminate such
      Ground Lease (and, where necessary, is permitted the opportunity to gain
      possession of the interest of the lessee under such Ground Lease through
      legal proceedings or to take other action so

                                       95
<PAGE>

      long as such holder is proceeding diligently; but not more than 180 days
      from notice of such default);

            (xiii) in the case of any default which is not curable by a holder
      of a deed of trust or mortgage encumbering the lessee's interest therein,
      or in the event of the bankruptcy or insolvency of the lessee under such
      Ground Lease, such holder has the right, following termination of the
      existing Ground Lease, to enter into a new ground lease with the lessor on
      the same terms as the existing Ground Lease, and all rights of the lessee
      under such Ground Lease may be exercised by or on behalf of such holder;

            (xiv) such Ground Lease does not impose any material restrictions on
      subletting; and the lessor thereunder is not permitted to disturb the
      possession, interest or quiet enjoyment of any subtenant of the lessee in
      the relevant portion of the Property subject to such Ground Lease for any
      reason, or in any manner, which would adversely affect the security
      provided to Lender by the applicable Mortgage; provided such subtenant is
      not in default under the applicable sublease;

            (xv) under the terms of the Ground Lease and the applicable
      Mortgage, taken together, any related Loss Proceeds will be applied either
      to repair or restoration of all or part of the related Property, with the
      Lender alone or the Lender and the Ground Lessor or a trustee appointed by
      Lender having the right to hold and disburse the proceeds as the repair or
      restoration progresses, or to payment of the outstanding principal balance
      of the Loan with any accrued interest thereon; and

            (xvi) such Ground Lease may not be amended, modified, cancelled or
      terminated without the prior written consent of Lender, and any such
      action without such consent will be void;

            (d) Loan Documents. The applicable Obligor shall have executed,
acknowledged and delivered to Lender, with respect to each Qualified Substitute
Property, a Mortgage, an Assignment of Rents and Leases, an Assignment of
Contracts (or an amendment of the existing Assignment of Contracts), an
Environmental Indemnity (or an amendment of the existing Environmental
Indemnity) and applicable Uniform Commercial Code financing statements, in each
case with such state-specific modifications as shall be recommended by counsel
admitted to practice in such state and selected by Lender. Each Mortgage shall
secure the entire Indebtedness, provided that in the event that the jurisdiction
in which the applicable Qualified Substitute Property is located imposes a
mortgage recording, intangibles or similar Tax and does not permit the
allocation of indebtedness for the purpose of determining the amount of such Tax
payable, the principal amount secured by such Mortgage shall be equal to 150% of
such Qualified Substitute Property's Allocated Loan Amount.

            (e) Legal Opinions. Lender shall have received (i) a legal opinion
from the Obligors' New York counsel in substantially the form of Exhibit I-1,
and (ii) a legal opinion from the Obligors' local counsel in the state in which
such Qualified Substitute Property is located in substantially the form of
Exhibit I-2 subject to customary qualifications and exceptions.

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            (f) Lien Search Reports. Lender shall have received reports of
Uniform Commercial Code, tax lien and judgment searches conducted by a
nationally recognized search firm with respect to the Qualified Substitute
Property and such Obligor and showing no Liens, claims or encumbrances against
such Obligor or the Qualified Substitute Property which is not reasonably
approved by Lender. Such searches to be conducted in such locations as Lender
shall have reasonably requested.

            (g) No Default or Event of Default. No Default or Event of Default
shall have occurred and be continuing on such date either before or after the
addition of such Qualified Substitute Property to the Collateral.

            (h) Tenant Estoppel Letters. Lender shall have received estoppel
letters in the form attached hereto as Exhibit K (or in such other form as
Lender may reasonably approve) and containing no material exceptions or
qualifications (unless reasonably approved by Lender) from either (i) Tenants
occupying not less than 80% of the aggregate occupied rentable square feet in
the Qualified Substitute Property or (ii) Tenants contributing not less than 80%
of the aggregate base rent at the Qualified Substitute Property, which estoppel
letters shall include estoppel letters from the Tenants under each Major Lease
at the Qualified Substitute Property; and Lender shall have received such
subordination, non-disturbance and attornment agreements as Lender shall
reasonably require.

            (i) Transaction Costs. The Obligors shall have paid all Transaction
Costs.

            (j) Insurance. Lender shall have received certificates of insurance
on ACORD Form 27, demonstrating insurance coverage in respect of the Qualified
Substitute Property of types, in amounts, with insurers and otherwise in
compliance with the terms, provisions and conditions set forth herein. Such
certificates shall indicate that Lender is named as additional insured on each
liability policy, and that each casualty policy and rental interruption policy
contains a loss payee endorsement in favor of Lender.

            (k) Title. Lender shall have received a marked, signed commitment to
issue, or a signed pro-forma version of, a Qualified Title Insurance Policy in
respect of the Qualified Substitute Property, listing only encumbrances set
forth in clauses (i), (iii), (v) and (vi) of the definition of "Permitted
Encumbrances" and such other exceptions as are reasonably satisfactory to
Lender; provided, however, that an exception to title listed in clause (iv) of
the definition of "Permitted Encumbrances" that is endorsed over by the Title
Company shall be an acceptable exception to title for purposes of this
subsection.

            (l) Zoning. Lender shall have received evidence reasonably
satisfactory to Lender that the Qualified Substitute Property is in compliance
in all material respects with all applicable zoning requirements (including,
where obtainable, zoning endorsements and letters from the applicable
municipalities).

            (m) Permits; Certificate of Occupancy. Lender shall have received a
copy of all material Permits for the use and operation of the Properties and the
certificate(s) of occupancy, if required and obtainable, for the Qualified
Substitute Property.

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            (n) Engineering and Environmental Reports. Lender shall have
received reasonably satisfactory Environmental Reports and Engineering Reports
regarding each Qualified Substitute Property and, if corrective measures are
recommended therein and the cost thereof exceeds the lesser of (x) 1% of the
Allocated Loan Amount of such Qualified Substitute Property and (y) $500,000,
the applicable Obligor shall have either (i) deposited into escrow with the
Lender pursuant to documentation reasonably satisfactory to the Lender 125% of
the amount required to fund such corrective measures or (ii) delivered to Lender
a Qualified Letter of Credit in such amount or (iii) if such cost is less than
$5 million, delivered to Lender a guaranty from Trizec (provided that Trizec has
a net worth of not less than $1 billion), in form and substance reasonably
satisfactory to Lender, in such amount; and in any case the applicable Obligor
shall covenant to perform such corrective measures within the time period
recommended in such reports.

            (o) Qualified Survey. Lender shall have received a Qualified Survey
with respect to the Qualified Substitute Property in form and substance
reasonably satisfactory to Lender.

            (p) Consents, Licenses, Approvals, etc. Lender shall have received
copies of all consents, licenses and approvals, if any, required in connection
with the execution, delivery and performance by the Obligors, and the validity
and enforceability, of the Loan Documents, and such consents, licenses and
approvals shall be in full force and effect.

            (q) Financial Information. Lender shall have received (i) operating
statements for the Qualified Substitute Property for the prior three years,
prepared by an independent certified public accountant of recognized national
standing to the extent such statements can be obtained without undue burden or
cost, (ii) current results from operations certified by an officer of the
Nonrecourse Carveout Indemnitor if an Affiliate of the Obligors owned the
Property for the prior fiscal year, and (iii) such other financial information
as Lender shall reasonably request and is obtainable without undue burden or
cost, which information shall be in form and substance reasonably satisfactory
to Lender.

            (r) Annual Budget. Lender shall have received the then-current
Annual Budget with respect to the Qualified Substitute Property.

            (s) Lease; Material Agreements. Lender shall have received true and
complete copies of all Leases requested in writing by Lender (from a rent roll
listing all Leases previously delivered to Lender) and all Material Agreements.

            (t) Appraisal. Lender shall have obtained an Appraisal with respect
to such Qualified Substitute Property if required under Section 2.3.

            (u) Additional Matters. Lender shall have received such other
certificates, opinions, documents and instruments relating to the Loans as may
have been reasonably requested by Lender. All corporate and other proceedings,
all other documents (including all documents referred to herein and not
appearing as exhibits hereto) and all legal matters in connection with the Loans
shall be reasonably satisfactory in form and substance to Lender.

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                                   ARTICLE IX

                                  MISCELLANEOUS

            9.1. Successors. Except as otherwise provided in this Agreement,
whenever in this Agreement any of the parties hereto is referred to, such
reference shall be deemed to include the successors and permitted assigns of
such party. All covenants, promises and agreements in this Agreement contained,
by or on behalf of the Obligors, shall inure to the benefit of Lender and its
successors and assigns and all covenants, promises and agreements in this
Agreement contained by or on behalf of Lender shall inure to the benefit of the
Obligors and their respective successors and permitted assigns.

            9.2. GOVERNING LAW.

            (A) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK PURSUANT TO THE PROVISIONS OF THE NEW
YORK GENERAL OBLIGATIONS LAW SECTIONS 5-1401 AND 1402, EXCEPT THAT AT ALL TIMES
THE PROVISIONS FOR THE CREATION, PERFECTION AND ENFORCEMENT OF THE LIENS OF THE
SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN
DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
STATE IN WHICH THE APPLICABLE PROPERTY IS LOCATED, OR (IN THE CASE OF THE
ACCOUNT COLLATERAL OR OTHER INTANGIBLES) THE LAW OF THE STATE OR STATES WHICH
GOVERN SUCH CREATION, PERFECTION AND ENFORCEMENT.

             (B) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST ANY OBLIGOR OR THE
NONRECOURSE CARVEOUT INDEMNITOR ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
ANY OF THE OTHER LOAN DOCUMENTS (OTHER THAN ANY ACTION IN RESPECT OF THE
CREATION, PERFECTION OR ENFORCEMENT OF A LIEN OR SECURITY INTEREST CREATED
PURSUANT TO ANY LOAN DOCUMENTS NOT GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK) SHALL BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK.
THE OBLIGORS, LENDER AND THE NONRECOURSE CARVEOUT INDEMNITOR HEREBY (i)
IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
OBJECTION WHICH THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY
SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM, AND (ii) IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY SUCH COURT IN ANY
SUCH SUIT, ACTION OR PROCEEDING.

            9.3. Modification, Waiver in Writing. Neither this Agreement nor any
other Loan Document nor any of the terms hereof or thereof may be amended,
changed, waived, discharged or terminated, nor shall any consent or approval of
Lender be granted hereunder, unless such amendment, change, waiver, discharge,
termination, consent or approval is in writing signed by Lender.

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            9.4. Notices.

            (a) All notices, requests, directions and other communications
permitted or provided for hereunder shall be in writing (including, unless the
context expressly otherwise provides, facsimile transmission) and mailed, faxed
or delivered, (i) if to the Obligors or the Nonrecourse Carveout Indemnitor, to
the following address: Sears Tower, 233 S. Wacker Drive, Suite 4600, Chicago, IL
60606, Attention: Jeffrey D. Echt, or to such other address as shall be
designated by the Obligors and/or the Nonrecourse Carveout Indemnitor in a
written notice to Lender from time to time, (ii) if to Lender, to it c/o Wells
Fargo Bank, N.A., 45 Fremont Street, San Francisco, CA 94105, 2d floor,
Attention: Commercial Mortgage Servicing, with a copy to Robert F. Darling,
Esq., Wells Fargo Bank, N.A, 633 Folsom Street, 7th Floor 94111, or to such
other address as shall be designated by Lender in a written notice to the
Obligors from time to time. THE OBLIGORS HEREBY APPOINT TRIZECHAHN COLONY SQUARE
GP LLC (TOGETHER WITH ITS PERMITTED SUCCESSORS, THE "REPRESENTATIVE OBLIGOR") TO
SERVE AS AGENT ON BEHALF OF ALL OBLIGORS TO RECEIVE ANY NOTICES REQUIRED TO BE
DELIVERED TO ANY OR ALL OF THE OBLIGORS HEREUNDER OR UNDER THE OTHER LOAN
DOCUMENTS AND TO BE THE SOLE PARTY AUTHORIZED TO DELIVER NOTICES ON BEHALF OF
THE OBLIGORS HEREUNDER. ANY NOTICE DELIVERED TO THE REPRESENTATIVE OBLIGOR SHALL
BE DEEMED TO HAVE BEEN DELIVERED TO ALL OBLIGORS, AND ANY NOTICE RECEIVED FROM
THE REPRESENTATIVE OBLIGOR SHALL BE DEEMED TO HAVE BEEN RECEIVED FROM ALL
OBLIGORS. THE OBLIGORS SHALL BE ENTITLED FROM TIME TO TIME TO APPOINT A
REPLACEMENT REPRESENTATIVE OBLIGOR BY WRITTEN NOTICE DELIVERED TO LENDER AND
SIGNED BY BOTH THE NEW REPRESENTATIVE OBLIGOR AND THE REPRESENTATIVE OBLIGOR
BEING SO REPLACED.

            (b) All such notices and communications transmitted by overnight
delivery shall be effective when delivered or upon refusal to accept delivery
(in the case of overnight delivery) or if mailed or delivered, upon receipt or
upon refusal to accept delivery. All notices hereunder sent by facsimile
transmission shall be deemed sufficiently served or given for all purposes
hereunder upon transmission as confirmed by the sender's verified facsimile
transmission or certified facsimile activity report, provided that such
transmission is promptly followed by another form of notice allowed by this
Section 9.4.

            9.5. TRIAL BY JURY. THE OBLIGORS, LENDER AND THE NONRECOURSE
CARVEOUT INDEMNITOR, TO THE FULLEST EXTENT THAT THEY MAY LAWFULLY DO SO, HEREBY
AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND
WAIVE 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 THE OBLIGORS AND
THE NONRECOURSE CARVEOUT INDEMNITOR 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, THE OBLIGORS AND NONRECOURSE CARVEOUT INDEMNITOR ARE
HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS
CONCLUSIVE EVIDENCE OF THIS WAIVER BY THE OBLIGORS, LENDER AND THE NONRECOURSE
CARVEOUT INDEMNITOR.

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<PAGE>

            9.6. Headings. The Article and Section headings in this Agreement
are included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose.

            9.7. Assignment and Participation. Except as explicitly provided in
Article II, no Obligor may sell, assign or transfer any interest in the Loan
Documents or any portion thereof (including, without limitation, the Obligors'
rights, title, interests, remedies, powers and duties hereunder and thereunder).
Lender and each assignee of all or a portion of the Loans (an "Assignee") shall
have the right from time to time in its discretion to make an Assignment or sell
a Participation. In the case of an Assignment, (i) each Assignee shall have, to
the extent of such Assignment, the rights, benefits and obligations of the
assigning Lender as a "Lender" hereunder and under the other Loan Documents,
(ii) the assigning Lender shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to an Assignment, relinquish its
rights and be released from its obligations under this Agreement, and (iii) one
Lender shall serve as agent for all Lenders and shall be the sole Lender to whom
notices, requests and other communications shall be addressed and the sole party
authorized to grant or withhold consents hereunder on behalf of the Lenders
(subject, in each case, to appointment of a Servicer, pursuant to Section 9.22,
to receive such notices, requests and other communications and/or to grant or
withhold consents, as the case may be) and to be the sole Lender to designate
the account to which payments shall be made by the Borrowers to the Lenders
hereunder. Goldman Sachs Mortgage Company shall maintain, or cause to be
maintained, as agent for the Borrowers, a register at 85 Broad Street or such
other address as it shall notify the Borrowers in writing, on which it shall
enter the name or names of the registered owner or owners from time to time of
the Notes (and the Borrowers may review such register upon request following
reasonable advance written notice). The Borrowers agree that upon effectiveness
of any Assignment of any Note in part, the Borrowers will promptly provide to
the assignor and the Assignee separate promissory notes in the amount of their
respective interests (but, if applicable, with a notation thereon that it is
given in substitution for and replacement of an original Note or any replacement
thereof), and otherwise in the form of such Note, upon return of the Note then
being replaced. The assigning Lender shall notify in writing each of the other
Lenders of any Assignment. Each potential Assignee and potential participant
(until it becomes clear that such potential Assignee or potential participant is
not to become an actual Assignee or participant), and each actual Assignee and
participant, and each rating agency or potential investor in connection with a
Securitization, shall be entitled to receive all information received by Lender
under this Agreement. After the effectiveness of any Assignment or
Participation, the party conveying the Assignment or Participation shall provide
notice to the Obligors of the identity and address of the Assignee or
participant. Notwithstanding anything in this Agreement to the contrary, after
an Assignment, the assigning Lender (in addition to the Assignee) shall continue
to have the benefits of any indemnifications contained herein which such
assigning Lender had prior to such assignment with respect to matters occurring
prior to the date of such assignment.

            9.8. 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.

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            9.9. Preferences. Lender shall have no obligation to marshal any
assets in favor of the Obligors or any other party or against or in payment of
any or all of the obligations of the Obligors pursuant to this Agreement, the
Notes or any other Loan Document. Lender shall have the continuing and exclusive
right to apply or reverse and reapply any and all payments by the Obligors to
any portion of the obligations of the Obligors hereunder and under the Loan
Documents. To the extent the Obligors make a payment or payments to Lender,
which payment or proceeds or any portion 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
federal law, common law or equitable cause, then, to the extent of such payment
or proceeds received, the obligations hereunder or portion 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.

            9.10. Rating Confirmations.

            (a) Whenever any covenant or agreement in this Agreement or the
other Loan Documents requires that the performance of any covenant or the
satisfaction of any condition shall be to the Lender's or Servicer's
"satisfaction" or words of similar import, then Lender's or Servicer's
determination with respect to such agreement or conditions shall be exercised
promptly, in good faith, and in a commercially reasonable manner.

            (b) Lender and Servicer shall reasonably cooperate with Borrower in
obtaining any Rating Confirmation required under this Agreement or any of the
Loan Documents as long as, if Lender's consent to such underlying action is
required, such Lender consent has been given, and shall within five Business
Days following any written request to Borrower provide Borrower with, to
Lender's knowledge, a detailed list of requirements for obtaining any such
Rating Confirmation, all at no cost and expense of the Borrower, except for the
reasonable third party out-of pocket costs paid or incurred by Lender or
Servicer, as the case may be.

            9.11. Offsets, Counterclaims and Defenses. All payments made by the
Obligors hereunder or under the other Loan Documents shall be made irrespective
of, and without any deduction for, any setoffs or counterclaims. The Obligors
hereby waive the right to assert a counterclaim, other than a mandatory or
compulsory counterclaim, in any action or proceeding brought against it by
Lender arising out of or in any way connected with the Notes, this Agreement,
the other Loan Documents or the Indebtedness. Any Assignee of Lender's interest
in a Loan shall take the same free and clear of all offsets, counterclaims or
defenses which are unrelated to the Loans.

            9.12. No Joint Venture. Nothing in this Agreement is intended to
create a joint venture, partnership, tenancy-in-common, or joint tenancy
relationship between any Obligor and Lender, nor to grant Lender any interest in
the Properties other than that of mortgagee or lender.

            9.13. Conflict; Construction of Documents. In the event of any
conflict between the provisions of this Agreement and the provisions of the
Notes, the Mortgages or any of the other Loan Documents, the provisions of this
Agreement shall prevail.

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<PAGE>

            9.14. Brokers and Financial Advisors. Each Obligor, Nonrecourse
Carveout Indemnitor and Lender hereby represents it has dealt with no financial
advisors, brokers, underwriters, placement agents, agents or finders in
connection with the transactions contemplated by this Agreement except for
Goldman, Sachs & Co. and Morgan Stanley & Co., Incorporated. Lender, Borrowers
and each Nonrecourse Carveout Indemnitor hereby agree, jointly and severally, to
indemnify and hold the other harmless from and against any and all claims,
liabilities, costs and expenses of any kind in any way relating to or arising
from a claim by any Person that such Person acted on behalf of the indemnified
party in connection with the transactions contemplated herein. The provisions of
this Section 9.14 shall survive the expiration and termination of this Agreement
and the repayment of the Indebtedness.

            9.15. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original,
but all of which shall together constitute one and the same instrument.

            9.16. Estoppel Certificates. The Obligors and Lender each hereby
agree at any time and from time to time, upon not less than 5 Business Days'
prior written notice, to execute, acknowledge and deliver to the party specified
in such notice a statement, in writing, certifying that each of the Loan
Documents is in full force and effect and has not been modified (or if there
have been modifications, that the same, as modified, is in full force and effect
and stating the modifications hereto), and stating whether or not, to the
knowledge of such certifying party, any Event of Default has occurred and is
then continuing, and, if so, specifying each such Event of Default. In addition,
any such written statement shall specify (A) the unpaid principal amount of the
Note, (B) the date installments of interest and/or principal were last paid, (C)
whether, to the knowledge of such party, there exist any offsets or defenses to
the payment of the Indebtedness, and (D) such other matters related to the
status of the Loan as such party may reasonably request.

            9.17. Payment of Expenses; Mortgage Recording Taxes. The Obligors
covenant and agrees to reimburse Lender upon receipt of written notice from
Lender for all (i) Transaction Costs; (ii) costs and expenses reasonably and
actually incurred by Lender in connection with (A) the Obligors' ongoing
performance of and compliance with their agreements and covenants contained in
this Agreement and the other Loan Documents on their part to be performed or
complied with after the Closing Date, including confirming compliance with
environmental and insurance requirements; (B) 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 requested by the Obligors or by Lender; (C) filing and
recording fees and expenses, title insurance and reasonable fees and
disbursements of counsel for providing to Lender all required legal opinions,
and other similar expenses incurred in creating and perfecting the Liens in
favor of Lender pursuant to this Agreement and the other Loan Documents; (D)
enforcing or preserving any rights, in response to third party claims or the
prosecuting or defending of any action or proceeding or other litigation, in
each case against, under or affecting any Obligor, this Agreement, the other
Loan Documents or any other security given for the Loans or the Properties; and
(E) enforcing any obligations of or collecting any payments due from any Obligor
under this Agreement, the other Loan Documents or with respect to the Properties
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.

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<PAGE>

            9.18. No Third-Party Beneficiaries. This Agreement and the other
Loan Documents are solely for the benefit of Lender and the Obligors, and
nothing contained in this Agreement or the other Loan Documents shall be deemed
to confer upon anyone other than Lender and the Obligors 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 Loans 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 Loans 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.

            9.19. Recourse.

            (a) Except as set forth in the balance of this Section, in the
Environmental Indemnity and in Section 9.14, no recourse shall be had for the
Indebtedness against any Affiliate of the Obligors or any officer, director,
stockholder, partner, member or other owner of the Obligors or any such
Affiliate, or any separate account contract holder, beneficial owner, advisor,
consultant, manager, fiduciary or employee of any of the foregoing, and recourse
to the Obligors shall be limited to the Obligors' interest in the Properties and
the other Collateral. Each Obligor and the Nonrecourse Carveout Indemnitor (as
evidenced by the Nonrecourse Carveout Indemnitor's signature below) shall
indemnify Lender and hold Lender harmless from and against any and all actual
damages to Lender (including the actual reasonable legal and other expenses of
enforcing the obligations of the Nonrecourse Carveout Indemnitor under this
Section 9.19) resulting from fraud, intentional misrepresentation, voluntary
bankruptcy filing by any Obligor or Single-Purpose Equityholder,
misappropriation or misapplication of funds (including Loss Proceeds, Revenue
and security deposits), Waste, failure of the Obligors to comply with Section
5.8(e) following the occurrence and during the continuance of an Event of
Default, any liability for the payment of mortgage recording or other similar
taxes relating to the Mortgages securing the Maryland Guarantees, and any breach
of the representation contained in Section 4.17 to the extent such breach
relates to events occurring prior to the Closing Date (the "Indemnified
Liabilities").

            (b) Each Obligor and the Nonrecourse Carveout Indemnitor shall
indemnify Lender and hold Lender harmless from and against any and all actual
Damages to Lender resulting from or arising out of the Indemnified Liabilities
(including the actual reasonable legal and other expenses of enforcing the
obligations of the Nonrecourse Carveout Indemnitor under this Section 9.19(b)).
The liability of the Nonrecourse Carveout Indemnitor under this Agreement shall
be direct and immediate and not conditional or contingent upon the pursuit of
any remedies against the Obligors or any other Person, nor against the
Collateral, and shall not be impaired or limited by any of the following events,
whether occurring with or without notice to the Nonrecourse Carveout Indemnitor
or with or without consideration:

            (i) any extensions of time for performance required by any of the
      Loan Documents or any extension or renewal of the Notes;

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<PAGE>

            (ii) any sale, assignment or foreclosure of the Notes, any
      Mortgage(s) or any of the other Loan Documents or any sale or transfer of
      any or all of the Properties;

            (iii) any Assumption or any other change in the composition of any
      Obligor, including the withdrawal or removal of the Nonrecourse Carveout
      Indemnitor from any current or future position of ownership, management or
      control of the Obligors;

            (iv) the accuracy or inaccuracy of the representations and
      warranties made by the Obligors in any of the Loan Documents;

            (v) the release of the Obligors or of any other Person from
      performance or observance of any of the agreements, covenants, terms or
      conditions contained in any of the Loan Documents by operation of law,
      Lender's voluntary act or otherwise; or

            (vi) the modification of the terms of any one or more of the Loan
      Documents.

The Nonrecourse Carveout Indemnitor hereby acknowledges that Lender would not
make the Loans but for the personal liability undertaken by the Nonrecourse
Carveout Indemnitor herein. The Nonrecourse Carveout Indemnitor agrees that it
shall not demand or accept any payment from any Obligor in respect of any
amounts owing or paid by the Nonrecourse Carveout Indemnitor hereunder until one
year and one day after such time as the Indebtedness shall have been paid in
full.

            (c) Without limitation to any other right or remedy provided to
Lender in this Agreement or any of the other Loan Documents, each Obligor
acknowledges and agrees that, to the full extent permitted under applicable law,
this Agreement and the other Loan Documents upon the occurrence of an Event of
Default (i) Lender shall have the right to pursue all of its rights and remedies
in one proceeding, or separately and independently in separate proceedings which
it, as Lender, in its sole and absolute discretion, shall determine from time to
time, (ii) Lender is not required to either marshal assets, sell Collateral in
any inverse order of alienation, or be subjected to any "one action" or
"election or remedies" law or rule, (iii) the exercise by Lender of any remedies
against any Collateral will not impede Lender from subsequently or
simultaneously exercising remedies against any other Collateral, (iv) all Liens
and other rights, remedies and privileges provided to Lender in this Agreement
and in the other Loan Documents or otherwise shall remain in full force and
effect until Lender has exhausted all of its remedies against the Collateral and
all Collateral has been foreclosed, sold and/or otherwise realized upon and (v)
each Property shall be security for the performance of all of the Obligors'
obligations hereunder. Each Obligor acknowledges and agrees that it shall be
jointly and severally liable for the obligations of all Obligors under the Loan
Documents.

            (d) Notwithstanding anything to the contrary contained in this
Section or in any other provision of this Agreement or in any of the Loan
Documents, no member, shareholder, partner, or other owner of any Obligor or the
Nonrecourse Carveout Indemnitor (or any interest therein) or any separate
account contract holder, beneficial owner, advisor, consultant, manager,
fiduciary, director, officer, employee or agent of any of the foregoing, shall
have any personal or other liability under the Loan, this Agreement or other
Loan Documents,

                                      105
<PAGE>

except for the Obligors and the Nonrecourse Carveout Indemnitor to the extent
provided herein and in the Environmental Indemnity.

            9.20. Right of Set-Off. In addition to any rights now or hereafter
granted under applicable law or otherwise, and not by way of limitation of any
such rights, upon the occurrence and during the continuance of an Event of
Default, Lender may from time to time, without presentment, demand, protest or
other notice of any kind (all of which rights being hereby expressly waived),
set-off and appropriate and apply any and all deposits (general or special) and
any other indebtedness at any time held or owing by Lender (including branches,
agencies or Affiliates of Lender wherever located) to or for the credit or the
account of the Obligors against the obligations and liabilities of the Obligors
to Lender hereunder, under the Notes, the other Loan Documents or otherwise,
irrespective of whether Lender shall have made any demand hereunder and although
such obligations, liabilities or claims, or any of them, may be contingent or
unmatured, and any such set-off shall be deemed to have been made immediately
upon the occurrence of an Event of Default even though such charge is made or
entered on the books of Lender subsequent thereto.

            9.21. Exculpation of Lender. Lender neither undertakes nor assumes
any responsibility or duty to the Obligors or any other party to select, review,
inspect, examine, supervise, pass judgment upon or inform the Obligors or any
third party of (a) the existence, quality, adequacy or suitability of Appraisals
of the Properties or other Collateral, (b) any environmental report, or (c) any
other matters or items, including, but not limited to, engineering, soils and
seismic reports which are contemplated in the Loan Documents. Any such
selection, review, inspection, examination and the like, and any other due
diligence conducted by Lender, is solely for the purpose of protecting Lender's
rights under the Loan Documents, and shall not render Lender liable to the
Obligors or any third party for the existence, sufficiency, accuracy,
completeness or legality thereof.

            9.22. Servicer. Lender may delegate any and all rights and
obligations of Lender hereunder and under the other Loan Documents to the
Servicer upon notice by Lender to the Obligors, whereupon any notice or consent
from the Servicer to the Obligors, and any action by Servicer on Lender's
behalf, shall have the same force and effect as if Servicer were Lender. Notice
is hereby given that the initial Servicer shall be Wells Fargo, N.A.

            9.23 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 AMONG OR
BETWEEN SUCH PARTIES, WHETHER ORAL OR WRITTEN, ARE SUPERSEDED BY THE TERMS OF
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

                                      106
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have cause this Agreement to
be duly executed by their duly authorized representatives, all as of the day and
year first above written.

                                    LENDER:

                                    SECORE FINANCIAL CORPORATION

                                    By: ___________________________
                                    Its:  Authorized Signatory

                                    BORROWERS:

                                    TRIZECHAHN COLONY SQUARE GP LLC, a
                                    Delaware limited liability company

                                    By:____________________________
                                    Its:  Authorized Signatory

                                    TRIZECHAHN RESTON I LLC, a Delaware limited
                                    liability company

                                    By:____________________________
                                    Its:  Authorized Signatory

                                    TRIZECHAHN REGIONAL POOLING LLC, a
                                    Delaware limited liability company

                                    By:____________________________
                                    Its:  Authorized Signatory

                                    TRIZECHAHN 1250C/2401P LLC, a Delaware
                                    limited liability company

                                    By:____________________________
                                    Its:  Authorized Signatory

                                       1
<PAGE>

                                    TRIZECHAHN RESTON II LLC, a Virginia
                                    limited liability company

                                    By:____________________________
                                    Its:  Authorized Signatory

                                    TRIZECHAHN TBI CLARK TOWER LLC, a Delaware
                                    limited liability company

                                    By:____________________________
                                    Its:  Authorized Signatory

                                    TRIZECHAHN INTERSTATE NORTH
                                    DEVELOPMENT LLC, a Delaware limited
                                    liability company

                                    By:____________________________
                                    Its:  Authorized Signatory

                                    TRIZECHAHN NI SILVER SPRING METRO PLAZA
                                    LLC, a Delaware limited liability company

                                    By:____________________________
                                    Its:   Authorized Signatory

                                       1
<PAGE>

                                    TRIZECHAHN NI SILVER SPRING LLC, a
                                    Delaware limited liability company

                                    By:____________________________
                                    Its:  Authorized Signatory

                                    TRIZECHAHN TBI SACRAMENTO I LLC, a
                                    Delaware limited liability company

                                    By:____________________________
                                    Its:  Authorized Signatory

                                    MARYLAND GUARANTORS:

                                    TRIZECHAHN TBI SILVER SPRING LLC, a
                                    Maryland limited liability company

                                    By:____________________________
                                    Its:  Authorized Signatory

                                    TRIZECHAHN SILVER SPRING METRO PLAZA LLC,
                                    a Maryland limited liability company

                                    By:____________________________
                                    Its:  Authorized Signatory

NONRECOURSE CARVEOUT
INDEMNITOR:

TRIZECHAHN OFFICE PROPERTIES INC.

By: _______________________________
    Name:
    Title:

                                       2

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