Document:

Exh 10.2 Pacific Center Purchase Agreement dated 4/19/2006

    
      

    

    Exhibit
      10.2

    
 

     

    

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    Table
      of Contents

    

      
        	
                Page

              
	
                1.

              	
                Purchase
                  and Sale

              	
                1

              
	
                2.

              	
                Purchase
                  Price; Deposit; Escrow

              	
                2

              
	
                3.

              	
                Buyer’s
                  Investigation

              	
                3

              
	
                3.1

              	
                Scope
                  of Investigation

              	
                3

              
	
                3.2

              	
                Entry;
                  Insurance; Indemnity

              	
                4

              
	
                3.3

              	
                Title
                  Matters; Buyer’s Objections; Seller’s Right to Cure

              	
                5

              
	
                3.4

              	
                Certain
                  Miscellaneous Agreements

              	
                7

              
	
                4.

              	
                As-Is
                  Sale; Release and Indemnity

              	
                7

              
	
                4.1

              	
                As-Is
                  Sale

              	
                7

              
	
                4.2

              	
                Release
                  and Indemnity

              	
                9

              
	
                4.3

              	
                Representations
                  and Warranties of Seller

              	
                10

              
	
                4.4

              	
                Seller’s
                  Knowledge

              	
                11

              
	
                4.5

              	
                Survival
                  of and Limitations on Seller’s Representations and
                  Warranties

              	
                11

              
	
                4.6

              	
                Representations
                  and Warranties of Buyer

              	
                12

              
	
                4.7

              	
                Survival
                  of Buyer’s Representations and Warranties

              	
                13

              
	
                5.

              	
                Interim
                  Operation of the Property

              	
                13

              
	
                5.1

              	
                Lease
                  Matters

              	
                13

              
	
                5.2

              	
                Certain
                  Leases and Other Agreements

              	
                14

              
	
                5.3

              	
                Operation
                  of Property

              	
                15

              
	
                5.4

              	
                Survival

              	
                15

              
	
                6.

              	
                Conditions
                  to Closing

              	
                15

              
	
                6.1

              	
                Conditions
                  to Buyer’s Obligations to Close

              	
                15

              
	
                6.2

              	
                Conditions
                  to Seller’s Obligations to Close

              	
                17

              
	
                7.

              	
                Closing
                  and Transfer of Title

              	
                18

              
	
                7.1

              	
                Closing
                  Date

              	
                18

              
	
                7.2

              	
                Seller’s
                  Deliveries

              	
                19

              
	
                7.3

              	
                Buyer’s
                  Deliveries

              	
                20

              
	
                7.4

              	
                Possession
                  of the Property

              	
                21

              

      

       

       

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                8.

              	
                Prorations
                  and Adjustments

              	
                21

              
	
                8.1

              	
                General

              	
                21

              
	
                8.2

              	
                Post
                  Closing Reconciliation

              	
                23

              
	
                8.3

              	
                Survival

              	
                24

              
	
                9.

              	
                Risk
                  of Loss and Insurance Proceeds

              	
                24

              
	
                9.1

              	
                Minor
                  Loss

              	
                24

              
	
                9.2

              	
                Major
                  Loss

              	
                25

              
	
                10.

              	
                Default

              	
                26

              
	
                11.

              	
                Expenses

              	
                27

              
	
                12.

              	
                Brokers

              	
                28

              
	
                13.

              	
                Assignment

              	
                28

              
	
                14.

              	
                Notices

              	
                29

              
	
                15.

              	
                Miscellaneous

              	
                30

              
	
                15.1

              	
                Attorneys’
                  Fees

              	
                30

              
	
                15.2

              	
                Gender

              	
                30

              
	
                15.3

              	
                Captions

              	
                30

              
	
                15.4

              	
                Construction

              	
                31

              
	
                15.5

              	
                Business
                  Days; Deadlines

              	
                31

              
	
                15.6

              	
                Entire
                  Agreement

              	
                31

              
	
                15.7

              	
                Recording

              	
                31

              
	
                15.8

              	
                No
                  Continuance

              	
                31

              
	
                15.9

              	
                Time
                  of Essence

              	
                32

              
	
                15.10

              	
                Original
                  Document

              	
                32

              
	
                15.11

              	
                Governing
                  Law

              	
                32

              
	
                15.12

              	
                Acceptance
                  of Offer

              	
                32

              
	
                15.13

              	
                Confidentiality

              	
                32

              
	
                15.14

              	
                Section 1031
                  Exchange

              	
                33

              
	
                15.15

              	
                Amendment

              	
                34

              
	
                15.16

              	
                Waiver

              	
                34

              

      

    

     

     

    

    
      
        
           

          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

    

    

    List
      of Schedules

    1.1 Description
      of the Land

     

    3.2 Access
      Agreement

     

    3.4 Certain
      Miscellaneous Agreements

     

    1.1(a)(1) Leases

     

    1.1(a)(2) Lease
      Default Notices

     

    1.1(a)(3) Aged
      Receivables Report

     

    1.1(a)(4) Security
      Deposits

     

    1.1(c) Future
      Leasing Commissions and Tenant Improvement Costs for Existing Leases for Which
      Buyer is Responsible

     

    
      
         

        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    List
      of Exhibits

     

    
      	
              Exhibit A

            	
              —

            	
              Estoppel
                Certificate

            

    

     

    
      	
              Exhibit B

            	
              —

            	
              Grant
                Deed

            

    

     

    
      	
              Exhibit C

            	
              —

            	
              Bill
                of Sale

            

    

     

    
      	
              Exhibit D

            	
              —

            	
              Assignment
                and Assumption of Leases

            

    

     

    
      	
              Exhibit E

            	
              —

            	
              Assignment
                and Assumption of Miscellaneous
                Agreements

            

    

     

    
      	
              Exhibit F

            	
              —

            	
              Assignment
                and Assumption of Permits, Intangible Property and
                Warranties

            

    

     

    
      	
              Exhibit G

            	
              —

            	
              Seller’s
                Closing Certification

            

    

     

    
      	
              Exhibit H

            	
              —

            	
              FIRPTA
                Affidavit

            

    

     

    
      	
              Exhibit I

            	
              —

            	
              Designation
                Agreement

            

    

     

    
      	
              Exhibit J

            	
              —

            	
              Letter
                to Tenants

            

    

     

    
      	
              Exhibit K

            	
              —

            	
              Notice
                to Vendors

            

    

     

    
      	
              Exhibit L

            	
              —

            	
              Buyer’s
                Closing Certification

            

    

     

    
      	
              Exhibit M

            	
              —

            	
              Confidentiality
                Agreement

            

    

     

     

    
      
         

        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    

     

    Purchase
      and Sale Agreement

     

    This
      Purchase and Sale Agreement
      (this
“Agreement”),
      dated
      for reference purposes as of January 10, 2006, is made by and between
DL Pacific
      Center LP,
      a
      Delaware limited partnership (“Seller”),
      and
Maguire
      Properties, L.P.,
      a
      Maryland limited partnership (“Buyer”).
      This
      Agreement shall not be effective until executed by both Buyer and Seller, and
      the date on which this Agreement is executed by Buyer or Seller, whichever
      is
      later, as indicated on the signature page hereto, shall be referred to herein
      as
      the “Effective
      Date.”

     

    
      	
              1.

            	
              Purchase
                and Sale

            

    

     

    Seller
      hereby agrees to sell to Buyer, and Buyer hereby agrees to purchase from Seller,
      subject to the terms, covenants and conditions set forth herein, all of the
      following property:

     

    (a) That
      certain real property located in the City of San Diego, County of
      San Diego, State of California, commonly known as 1455 Frazee Road and
      1615 Murray Canyon Road, and more particularly described in Schedule 1.1
      hereto
      (the “Land”);

     

    (b) The
      buildings, structures and improvements erected or located on the Land
      (collectively, the “Improvements,”
and
      together with the Land, collectively, the “Premises”);

     

    (c) All
      of
      Seller’s right, title and interest, if any, in and to any rights and
      appurtenances pertaining to the Land, including minerals, oil and gas rights,
      air, water and development rights, roads, alleys, easements, streets and ways
      adjacent to the Land, rights of ingress and egress thereto, any strips and
      gores
      within or bounding the Land and in profits or rights or appurtenances pertaining
      to the Land (the “Appurtenant
      Rights”);

     

    (d) All
      of
      Seller’s right, title, and interest, if any, in all tangible personal property
      located on the Premises, including furniture, and equipment, but excluding
      any
      of the same owned by Tenants (as defined below) (the “Personal
      Property”);

     

    (e) All
      of
      Seller’s right, title, and interest in all leases in effect at the closing of
      the purchase and sale contemplated hereunder (the “Closing”)
      for
      portions of the Premises, any guaranties thereof (collectively, the
“Leases”),
      and
      any security deposits deposited by tenants of the Property (the “Tenants”)
      in
      respect of such Leases;

     

    (a) All
      of
      Seller’s right, title, and interest in those agreements affecting the Property
      that Buyer is required to assume pursuant to Section 3.4
      below,
      or that
      are the source of obligations Buyer is required to assume pursuant to
      Section 5.1
      or
5.2
      below
      (collectively, the “Miscellaneous
      Agreements”);

     

    (g) All
      of
      Seller’s right, title and interest, if any, in and to all assignable permits and
      licenses to the extent the same pertain to the Premises (collectively, the
      “Permits”);

     

    (h) All
      of
      Seller’s right, title and interest, if any, in and to any other assignable
      intangible property, if any, not otherwise specified herein and that is used
      exclusively in connection with the occupancy and operation of the Premises
      or
      that otherwise relates exclusively to the 

     

    
      
         

        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

     

    Premises,
      including, without limitation, plans and drawings for the Improvements (the
      “Intangible
      Property”);
      and

     

    (i) All
      of
      Seller’s right, title and interest, if any, in and to all assignable warranties
      of any contractor, manufacturer or materialman which relate to the Improvements
      or the Personal Property (collectively, the “Warranties”).

     

    The
      Premises, Appurtenant Rights, Personal Property, Leases, Miscellaneous
      Agreements, Permits, Intangible Property and Warranties are herein collectively
      referred to as the “Property”.

     

    
      	
              2.

            	
              Purchase
                Price; Deposit; Escrow

            

    

     

    (b) The
      purchase price (“Purchase
      Price”)
      for
      the Property shall be One Hundred Forty-Nine Million Dollars ($149,000,000.00),
      subject to adjustment as provided in Section 8
      below,
      and
      shall be paid as set forth in subparagraphs (c),
      (c)
      and
(c)
      below.

     

    (c) Within
      one (1) business day following the Effective Date, Buyer shall deposit in
      escrow with Commonwealth Land Title Company, One Market Street, Spear Street
      Tower #1850, San Francisco, California 94105, Attn: Linda Rae Paul (the
“Escrow
      Holder”),
      as an
      initial deposit hereunder, the sum of Four Million Five Hundred Thousand Dollars
      ($4,500,000.00) (the “Initial
      Deposit”).
      If
      Buyer exercises the First Extension Option pursuant to Section 1.1(f),
      Buyer
      shall deposit the First Extension Deposit (as defined in
      Section 1.1(g))
      with
      Escrow Holder as provided in said Section. If Buyer exercises the Second
      Extension Option pursuant to Section 1.1(g),
      Buyer
      shall deposit the Second Extension Deposit (as defined in
      Section 1.1(g))
      with
      Escrow Holder as provided in said Section. The Initial Deposit and, if
      applicable, the First Extension Deposit and the Second Extension Deposit,
      together with all interest earned on the Initial Deposit, the First Extension
      Deposit and the Second Extension Deposit while the same are held by Escrow
      Holder, are referred to herein as the “Deposit”.
      At all
      times before the Closing while the Deposit is held by Escrow Holder, the Deposit
      shall be invested in an interest-bearing account approved by Buyer in writing.
      Buyer shall provide Escrow Holder with its taxpayer identification number,
      and
      all interest earned on the Deposit shall be reported to the appropriate tax
      authorities using Buyer’s taxpayer identification number. At the Closing, the
      Deposit shall be applied to the Purchase Price.
      The
      Initial Deposit shall be non-refundable and shall be deemed fully earned by
      Seller (except as otherwise expressly set forth herein).

     

    (c) The
      balance of the Purchase Price, subject to adjustment for any prorations and
      credits provided hereunder, shall be deposited with Escrow Holder by Buyer
      by
      wire transfer of immediately available funds by such time as necessary to permit
      the transfer of funds to Seller and its lenders to be completed by
      1:00 p.m., California time, on the day of the Closing.

     

    (d) Within
      two (2) business days following the Effective Date, Seller shall deliver a
      copy of this Agreement to Escrow Holder. This Agreement shall serve as the
      initial escrow instructions. Counsel for Buyer and Seller are hereby authorized
      to execute any further escrow instructions necessary or desirable, and
      consistent with the terms hereof, in connection with the escrow established
      for
      this transaction by Escrow Holder (the “Escrow”).
      Escrow Holder shall be the “Reporting
      Person”
      pursuant to Internal Revenue Code Section 6045(e) with respect to the
      transaction contemplated by this Agreement.

     

     

    
      
         

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

     

    
      	
              3.

            	
              Buyer’s
                Investigation

            

    

     

    
      	 	
              3.1

            	
              Scope
                of Investigation

            

    

     

    Buyer
      had
      the period commencing on December 7, 2005 and ending on the Effective Date
      (the “Investigation
      Period”)
      to
      review and approve all matters relating to the Property, including the following
      matters:

     

    (a) All
      matters relating to title to the Property, including (i) matters disclosed
      by that certain 2nd amended preliminary title report dated November 16,
      2005, or by any underlying exception document referred to therein (collectively,
      the “Title
      Report”),
      issued by Commonwealth Land Title Company (the “Title
      Company”)
      under
      Order No. 03206370, and a copy of which has been provided to Buyer, or
      disclosed by any updates thereof or supplements thereto, and (ii) matters
      disclosed by any survey of the Property. Seller provided Buyer with a copy
      of
      that certain survey dated August 28, 2005 and prepared by Hirsch &
Company under Job No. 2002.054, without representation or warranty of any
      kind with respect thereto. Buyer may obtain, at Buyer’s sole cost and expense,
      an updated ALTA survey of the Property, in form sufficient to satisfy the
      requirements of the Title Company for the issuance of an ALTA owner’s policy of
      title insurance, and a copy of which, as well as copies of any updates thereof
      or supplements thereto, shall be provided by Buyer to Seller promptly upon
      Buyer’s receipt thereof.

     

    (b) All
      matters relating to any governmental and other legal requirements relating
      to
      the Property, such as taxes, assessments, zoning, use permit requirements and
      building codes, including any certificates of occupancy, other governmental
      permits and plans and specifications for the Property. Notwithstanding any
      provisions of this Agreement to the contrary, Buyer shall not file or cause
      to
      be filed any application or make any request (other than inquiries of the public
      records) with any governmental or quasi-governmental agency which would or
      could
      lead to a hearing before any governmental or quasi-governmental agency or which
      would or could lead to a notice of violation of law or municipal ordinance,
      order or requirement imposed by such an agency, at the Property or any change
      in
      zoning, parcelization, licenses, permits or other entitlements or any
      investigation or restriction on the use of the Property, or any part thereof;
      provided, however, that the foregoing shall not preclude Buyer from requesting
      a
      customary zoning letter with respect to the Premises from the appropriate
      governmental agency; and provided, further, that if Buyer’s due diligence
      discloses other matters as to which Buyer desires confirmation from appropriate
      governmental authorities, Seller shall not unreasonably withhold its consent
      to
      a request from Buyer for such confirmation.

     

    (d) The
      physical condition of the Property, including the interiors, exteriors,
      structures, pavements, utilities, and all other physical and functional aspects
      of the Property, and including an investigation as to the presence of Hazardous
      Materials (as defined in Section 4.1(b)
      below)
      at, on
      or under the Property and the compliance of the Property with all Hazardous
      Materials Laws (as defined in Section 4.1(b)
      below).

     

    (d) Any
      easements and/or access rights affecting the Property.

     

    (e) To
      the
      extent in Seller’s possession or reasonable control, the following written
      materials relating to the Property, originals or true copies of all of which
      materials in Seller’s 

     

    
      
         

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

     

    possession
      or control have been delivered or made available at the Property or at Landmark
      Asset Management Group, 100 Bayview Circle, Suite 200, Newport Beach,
      California:

     

    (i) Bills
      for
      property taxes and assessments for the 2003-2004, 2004-2005 and 2005-2006 tax
      years;

     

    (ii) Certificates
      of occupancy and plans and specifications for the Property;

     

    (iii) Materials
      regarding the physical condition of the Property, including the interiors,
      exteriors, structures, utilities, and all other physical and functional aspects
      of the Property;

     

    (i) Reports,
      studies, assessments, investigations and other materials related to the presence
      of Hazardous Materials (as defined in Section 4.1(b)
      below)
      at, on
      or under the Property and the compliance of the Property with all Hazardous
      Materials Laws (as defined in Section 4.1(b)
      below);

     

    (v) The
      Leases, any other leases and occupancy agreements affecting the Property and
      all
      amendments thereto, and all the correspondence files for all
      Tenants;

     

    (vi) Profit
      and loss operating statements for the Property for the 2003, 2004 and 2005
      (year
      to date) calendar years;

     

    (ii) All
      agreements affecting the Property not encompassed within any of the other
      subparagraphs of this Section 3.1(e);
      and

     

    (viii) Personal
      Property inventory.

     

    (f) All
      matters relating to the feasibility of Buyer’s proposed ownership of the
      Property.

     

    (g) Natural
      hazards disclosure statements for the Property, as required under California
      law, to be delivered to Buyer within five (5) days after the Effective
      Date. The natural hazards disclosure statements shall be based on a report
      or
      reports of a licensed engineer, land surveyor, geologist, or expert in natural
      hazard discovery, which report or reports shall be attached to such natural
      hazards disclosure statement. Buyer acknowledges that the natural hazards
      disclosure statements shall be based solely on the information contained in
      the
      report or reports attached thereto, and Seller shall have no liability for
      any
      inaccuracy in such reports, except to the extent that Seller has actual
      knowledge of the inaccuracy at the time the corresponding natural hazards
      disclosure statement is signed by Seller.

     

    
      	 	
              3.2

            	
              Entry;
                Insurance; Indemnity

            

    

     

    (e) Pursuant
      to that certain Access Agreement (the “Access
      Agreement”)
      dated
      December 7, 2005, by Seller and Buyer (a copy of which is attached hereto
      as Schedule 3.2),
      Buyer
      shall have the right, in compliance with the requirements of the Access
      Agreement and this Section 3.2,
      to
      enter on any portion of the Premises for the limited purpose of conducting
      “Inspections” (as defined in the Access Agreement). Buyer shall conduct such
      entries and any Inspections in 

     

    
      
         

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

     

    connection
      therewith so as to minimize disruption at the Property or interference with
      Seller’s business or with Tenants and otherwise in a manner reasonably
      acceptable to Seller.

     

    (b) Buyer’s
      indemnification of Seller pursuant to Section 12 of the Access Agreement
      shall extend to the
      partners, members, trustees, shareholders, directors and officers of Seller,
      any
      party owning a direct or indirect interest in Seller, the affiliates of Seller,
      and the partners, members, trustees, shareholders, directors, officers,
      employees and agents of each of the foregoing parties (such parties are referred
      to collectively with Seller as the “Seller-Related
      Parties”).

     

    
      	 	
              3.3

            	
              Title
                Matters; Buyer’s Objections; Seller’s Right to
                Cure

            

    

     

    (a) Disapproved
      Matters.

     

    (i) For
      the
      period commencing on December 7, 2005 and ending on
      December 19, 2005 (the “Title
      Review Period”)
      Buyer
      had the right, by written notice delivered to Seller (the “Initial
      Disapproval Notice”),
      to
      disapprove any matter relating to title of the Property.
      Buyer
      sent the Initial Disapproval Notice to Seller on
      December 19, 2005.

     

    (ii) If
      any
      material matter relating to title of the Property first arises after the
      expiration of the Title Review Period, and is not created or caused by Buyer,
      then Buyer shall have the right to disapprove such matter by delivering a
      written notice to Seller (a “Disapproval
      Notice”)
      within
      five (5) days after Buyer first becomes aware of such matter.

     

    (i) All
      matters relating to title to the Property to which Buyer objects pursuant to
      Section 3.3(a)(i)
      or
3.3(a)(ii)
      above
      shall be
      referred to as “Disapproved
      Matters.”
All
      matters relating to title to the Property which are not Disapproved Matters
      shall be deemed approved by Buyer.

     

    (f) Seller’s
      Right to Undertake Curative Action.
      Within
      four (4) business days after Seller’s receipt of a Disapproval Notice,
      Seller may give written notice to Buyer (a “Cure
      Notice”)
      of
      (i) any Disapproved Matters set forth in such Disapproval Notice with
      respect to which Seller is willing to undertake any curative action before
      the
      Closing, and (ii) the nature of each such curative action that Seller is
      willing to undertake (individually and collectively, “Curative
      Action”).
      Except as expressly set forth in any Cure Notice, Seller shall be deemed to
      have
      elected not to undertake any Curative Action with respect to any Disapproved
      Matters. If (1) the Curative Action set forth by Seller in any Cure Notice
      consists of anything less than the complete and unconditional cure of all
      Disapproved Matters set forth in the Disapproval Notice to which such Cure
      Notice relates, or (2) Seller does not reply to a Disapproval Notice within
      four (4) business days after Seller’s receipt thereof, then Buyer may
      terminate this Agreement by giving written notice to Seller no later than
      5:00 p.m. California time on the third (3rd) business day after
      receipt of such Cure Notice or the expiration of such four (4) business day
      period without reply from Seller, as the case may be. If Buyer does not so
      elect
      to terminate this Agreement, then Buyer shall be deemed to have waived its
      disapproval of all Disapproved Matters set forth in such Disapproval Notice
      except to the extent of Seller’s agreement pursuant to the Cure Notice to
      undertake Curative Action with respect thereto. Unless Buyer terminates this
      Agreement pursuant to the foregoing, if Seller gives Buyer one or more Cure
      Notices, then 

     

    
      
         

        
        

      

      
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    (A) Seller
      shall use commercially reasonably efforts to complete the Curative Action set
      forth therein on or before the Closing Date, and (B) it shall be a
      condition to Buyer’s obligation to purchase the Property hereunder, but not a
      covenant of Seller, that all Curative Action shall actually be performed on
      or
      before the Closing Date.
      In
      response to Buyer’s Initial Disapproval Notice: (i) Seller agrees to take
      the following Curative Actions: cause the deed of trust described in exception
      no. 27 and the assignment of leases described in exception no. 28 of
      the Title Report to be removed at Closing; and (ii) Seller agrees that the
      issuance of CLTA 103.3 endorsements to the Title Policy (as defined in
      Section 6.1
      below)
      for
      each of the utilities easements described in exceptions nos. 9, 13 and 17,
      the deletion of exception no. 31, and the modification of exception
      no. 33 as specified in Buyer’s Initial Disapproval Notice shall be
      conditions to Buyer obligation to purchase the Property. In reliance on the
      agreements of Seller set forth in the preceding clauses (i) and (ii), Buyer
      agrees that it shall have no right to terminate this Agreement pursuant to
      the
      third sentence of this Section 1.1(f)
      as a
      result of Buyer’s
      Initial Disapproval Notice.

     

    (g) Extension
      of Closing Date.
      If any
      situation described in Section 3.3(a)(ii)
      above
      occurs,
      and the respective time periods afforded Buyer and Seller to make any elections
      and give notices with respect thereto as permitted under
      Sections 3.3(a)
      and
(f)
      will
      extend beyond the fifth (5th) day before the Closing Date, then the Closing
      Date shall be postponed until five (5) days after the disposition of such
      matter is determined in accordance with the provisions of this
      Section 3.3.

     

    (h) Agreement
      of Title Company to Insure Over Disapproved Matters.
      Notwithstanding Seller’s unwillingness to agree to completely and
      unconditionally cure any Disapproved Matter, Buyer may obtain the agreement
      of
      the Title Company to omit such Disapproved Matter from the schedule of
      exceptions to the Title Policy or to affirmatively insure over such Disapproved
      Matter by endorsement to the Title Policy. Any agreement of the Title Company
      to
      so omit or insure shall be a matter solely between Buyer and the Title Company,
      and the same shall not be condition to Closing, except to the extent the Title
      Company’s agreement to so omit or insure is based upon Seller’s agreement
      pursuant to the Cure Notice to undertake Curative Action with respect to such
      Disapproved Matter and Seller fails to undertake such Curative Action prior
      to
      the Closing. Further, with regard to Seller’s obligation to convey title to the
      Property, any Disapproved Matter which Seller has not agreed to completely
      and
      unconditionally cure shall be a Permitted Exception (as defined in
      subparagraph (g)
      below)
      to the
      Deed (as defined in Section 7.2(a)
      below)
      notwithstanding the Title Company’s agreement to omit such Disapproved Matter
      from the Title Policy or to affirmatively insure against such Disapproved Matter
      by endorsement to the Title Policy, and Buyer shall only seek recourse against
      the Title Company, and not Seller, with respect to any such Disapproved
      Matter.

     

    (e) Permitted
      Exceptions.
      The
      Deed shall be subject to the following matters (the “Permitted
      Exceptions”):

     

    (i) general
      real estate taxes not yet due and payable as of the date of
      Closing;

     

    (ii) the
      Leases;

     

    (iii) the
      Miscellaneous Agreements;

     

     

    
      
         

        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

     

    (iv) all
      title
      matters relating to the Property, other than Disapproved Matters, that are
      (1) discoverable by means of an accurate survey or inspection of the
      Property or by making inquiry of persons in possession, or (2) disclosed to
      Buyer in writing before the Closing;

     

    (v) all
      Disapproved Matters Seller has not completely and unconditionally agreed to
      cure, except to the extent, if any, Seller has agreed to undertake Curative
      Action pursuant to a Cure Notice; and

     

    (vi) all
      other
      exceptions created or agreed to by Buyer.

     

    
      	 	
              3.4

            	
              Certain
                Miscellaneous
                Agreements

            

    

     

    At
      the
      Closing, Seller’s rights and obligations under those agreements set forth on
Schedule 3.4
      attached
      hereto shall be assigned to and assumed by Buyer. As soon as practicable after
      the Effective Date, Seller shall deliver to Burnham (as defined in Schedule 3.4)
      a
      notice that the Burnham Agreement (as defined in Schedule 3.4),
      is
      terminated effective as of the earlier of the thirtieth (30th) day after
      such notice or the Closing. In addition, prior to the Closing, (i) Buyer
      shall deliver a letter to Goldman Ferguson Partners, with a copy to Seller,
      acknowledging that Buyer shall assume agreement listed as number 3 on
Schedule 3.4,
      effective as of the Closing, and (ii) Seller shall deliver to Landmark (as
      defined in Schedule 3.4)
      a
      notice that the agreement listed as number 5 on Schedule 3.4,
      is
      terminated effective as of the Closing. The termination of the Burnham Agreement
      and the agreement listed as number 5 on Schedule 3.4
      shall
      not relieve Buyer of the obligation to assume certain post-termination
      obligations under those agreements as set forth on Schedule 3.4.
      

     

    
      	
              4.

            	
              As-Is
                Sale; Release and
                Indemnity

            

    

     

    
      	 	
              4.1

            	
              As-Is
                Sale

            

    

     

    (a) Buyer
      acknowledges and agrees that it will have been given, before the expiration
      of
      the Investigation Period, a full opportunity to inspect and investigate each
      and
      every aspect of the Property, either independently or through agents of Buyer’s
      choosing. The closing of escrow for the purchase of the Property by Buyer shall
      conclusively constitute Buyer’s approval of each and every aspect of the
      Property, except as otherwise specifically provided herein.

     

    (b) Except
      with respect to any representations expressly made by Seller in this Agreement,
      Seller: (i) makes no representations or warranties concerning the Property,
      income derived therefrom or any matters pertaining thereto; and (ii) makes
      no representations or warranties with respect to the physical condition or
      any
      other aspect of the Property, including, without limitation: (A) the
      structural integrity of, or the quality of any labor and materials used in
      the
      construction of, any improvements on the Land; (B) the conformity of the
      Improvements to any plans or specifications for the Property (including any
      plans and specifications that may have been or which may be provided to Buyer
      by
      Seller); (C) the compliance of the Property or its operation with any
      applicable codes, laws, regulations, statutes, ordinances, covenants, conditions
      and restrictions of any governmental or quasi-governmental entity or of any
      other person or entity, including zoning or building code requirements;
      (D) the existence of soil instability, past soil repairs, soil additions or
      conditions of soil fill or susceptibility to landslides; (E) the
      sufficiency of any undershoring; (F) the sufficiency of any drainage;
      (G) whether the 

     

    
      
         

        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

     

    Land
      is
      located wholly or partially in any flood plain or flood hazard boundary or
      similar area; (H) the existence or non-existence of underground storage
      tanks; (I) any other matter affecting the stability or integrity of the
      Land or any buildings or improvements situated on or as part of the
      Improvements; (J) the availability, quality, nature, adequacy and physical
      condition of public utilities and services for the Property; (K) the
      habitability, merchantability, fitness, suitability, functionality, value or
      adequacy of the Property or any component or system thereof for any intended
      use; (L) the potential for further development of the Property;
      (M) the existence of vested land use, zoning or building entitlements
      affecting the Premises; (N) the quality, nature, adequacy and physical
      condition of the Property, including the structural elements, foundations,
      roofs, appurtenances, access, landscaping, parking facilities and the
      electrical, mechanical, HVAC, plumbing, sewage, and utility systems, facilities
      and appliances; (O) the quality and nature of any groundwater; (P) the
      zoning or other legal status of the Property or any other public or private
      restrictions on use of the Property; (Q) the presence of any Hazardous
      Materials (as defined below) or mold or any mold-like substance on, in, under
      or
      about the Property or any nearby property; (R) the condition of title to
      the Property; (S) the Leases, Miscellaneous Agreements, or other agreements
      affecting the Property; and (T) the economics of the operation of the
      Property. Except with respect to any representations expressly made by Seller
      in
      this Agreement, Buyer expressly acknowledges that the Property is being sold
      and
      accepted “as is,
      where is”
and
      is
      being accepted without any representation or warranty, including any
      representation or warranty by Seller or any agent, officer, employee or
      representative of Seller. Buyer agrees to make such investigations of the
      condition of the Property as Buyer deems adequate and shall rely solely upon
      its
      own investigation of such condition and not upon any statement of Seller except
      as may be expressly stated in this Agreement. As used herein, “Hazardous
      Materials”
means
      any material, substance or waste designated as hazardous, toxic, radioactive,
      injurious or potentially injurious to human health or the environment, or as
      a
      pollutant or contaminant, or words of similar import, under any Hazardous
      Materials Law (as defined below), including, but not limited to, petroleum
      and
      petroleum products, asbestos, polychlorinated biphenyls, urea formaldehyde,
      radon gas, radioactive matter, medical waste, mold, and chemicals which may
      cause cancer or reproductive toxicity. As used herein, “Hazardous
      Materials Law”
means
      any federal, state or local law, statute, regulation or ordinance now or
      hereafter in force, as amended from time to time, pertaining to materials,
      substances or wastes which are injurious or potentially injurious to human
      health or the environment or the release, disposal or transportation of which
      is
      otherwise regulated by any agency of the federal, state or any local government
      with jurisdiction over the Property or any such material, substance or waste
      removed therefrom, or in any way pertaining to pollution or contamination of
      the
      air, soil, surface water or groundwater, including, but not limited to, the
      Comprehensive Environmental Response, Compensation and Liability Act of 1980,
      as
      amended (42 U.S.C. Section 9601 et seq.),
      the
      Resource Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901
et seq.),
      the
      Clean Water Act (33 U.S.C. Section 1251 et seq.),
      the
      Safe Drinking Water Act (42 U.S.C. Section 300f et seq.),
      the
      Hazardous Materials Transportation Act (49 U.S.C. Section 1801
et seq.),
      the
      Toxic Substance Control Act (15 U.S.C. Section 2601 et seq.),
      the
      Hazardous Substance Account Act (California Health and Safety Code
      Section 25300 et seq.),
      the
      Hazardous Waste Control Law (California Health and Safety Code
      Section 25100 et seq.),
      the
      Medical Waste Management Act (California Health and Safety Code
      Section 25015 et seq.),
      and
      the Porter-Cologne Water Quality Control Act (California Water Code
      Section 13000 et seq.).

     

     

    
      
         

        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              4.2

            	
              Release
                and Indemnity

            

    

     

    (i) Without
      limiting the provisions of Section 4.1,
      Buyer
      waives its right to recover from the Seller-Related Parties, and forever
      releases, covenants not to sue and discharges the Seller-Related Parties from,
      any and all damages, demands, claims, losses, liabilities, penalties, fines,
      liens, judgments, costs or expenses whatsoever, including attorneys’ fees and
      costs, whether direct or indirect, known or unknown, foreseen or unforeseen,
      that may arise on account of or in any way be connected with the physical
      condition of the Property, including, but not limited to, the presence of any
      Hazardous Materials on, in, under or about the Property, except for any
      liability of Seller for any breach of any representation or warranty set forth
      in Section 4.3
      below,
      which
      liability shall survive the Closing only for the Survival Period (as defined
      in
      Section 4.5
      below)
      and
      shall be subject to the limitation on liability set forth in
      Section 4.5
      below.

     

    (j) In
      the
      event the Closing occurs, Buyer shall indemnify, defend and hold harmless the
      Seller-Related Parties from and against any and all suits, actions, proceedings,
      investigations, demands, claims, liabilities, fines, penalties, liens,
      judgments, losses, injuries, damages, expenses or costs whatsoever, including
      attorneys’ and experts’ fees and costs and investigation and remediation costs
      (“Claims”),
      asserted by the party originally identified as Buyer herein (“Original
      Buyer”),
      or
      any assignee to whom Buyer assigns its rights under this Agreement
      (“Assignee”),
      or
      the partners, members, trustees, shareholders, directors or officers of any
      party owning a direct or indirect interest in Original Buyer or any such
      Assignee, or any affiliate of Original Buyer or any such Assignee possessing
      at
      any time an ownership interest (whether direct or indirect) in the Property
      (including any party which may hereafter become an affiliate of Original Buyer
      or any such Assignee), arising from, relating to, or occasioned in any way
      by
      the physical condition of the Property, including, but not limited to, the
      presence of any Hazardous Materials on, in, under or about the Property, except
      for any liability of Seller for any breach of any representation or warranty
      set
      forth in Section 4.3
      below,
      which
      liability shall survive the Closing only for the Survival Period and shall
      be
      subject to the limitation on liability set forth in Section 4.5
      below.

     

    (k) The
      release set forth in Section 1.1(i)
      above,
      and the
      indemnification set forth in Section 1.1(j)
      above,
      includes claims, liabilities and other matters of which Buyer is presently
      unaware or which Buyer does not presently suspect to exist which, if known
      by
      Buyer, would materially affect Buyer’s willingness to enter into the release and
      indemnification of the Seller-Related Parties set forth in
      Sections 1.1(i)
      and
1.1(j).
      In this
      connection and to the fullest extent permitted by law, Buyer hereby agrees,
      represents and warrants that Buyer realizes and acknowledges that factual
      matters now unknown to it may have given or may hereafter give rise to causes
      of
      action, claims, demands, debts, controversies, damages, costs, loses and
      expenses which are presently unknown, unanticipated and unsuspected, and Buyer
      further agrees, represents and warrants that the release and indemnification
      set
      forth in Sections 1.1(i)
      and
1.1(j)
      have
      been negotiated and agreed upon in light of that realization and that Buyer
      nevertheless hereby intends to release, discharge and acquit the Seller-Related
      Parties from any such unknown causes of action, claims, demands, debts,
      controversies, damages, costs, losses and expenses, except for any liability
      of
      Seller for any breach of any representation or warranty set forth in
      Section 4.3
      below,
      which
      liability shall survive the Closing only for the Survival Period and shall
      be
      subject to the limitation on liability set forth in Section 4.5
      below.
      In
      connection with the 

     

    
      
         

        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

     

    release
      set forth in Section 1.1(i)
      above,
      Buyer
      expressly waives the benefits of Section 1542 of the California Civil Code
      which provides as follows:

     

    A
      general
      release does not extend to claims which the creditor does not know or expect
      to
      exist in his favor at the time of executing the release, which if known to
      him
      must have materially affected the settlement with the debtor.

     

    (l) The
      provisions of this Section 4.2
      shall
      survive the Closing.

     

    
      	 	
              4.3

            	
              Representations
                and Warranties of
                Seller

            

    

     

    Seller
      represents and warrants to Buyer as follows:

     

    (a) Seller
      is
      a limited partnership, duly organized, validly existing and in good standing
      under the laws of Delaware, and qualified to transact business and in good
      standing in the State of California.

     

    (b) Seller
      has the power and authority to enter into this Agreement and convey the Property
      to Buyer and to execute and deliver the other documents referred to herein
      and
      to perform hereunder and thereunder on behalf of Seller. This Agreement has
      been
      duly authorized, executed and delivered by Seller.

     

    (c) Neither
      the execution and delivery of this Agreement, the consummation of the
      transactions contemplated by this Agreement, nor the compliance with the terms
      and conditions hereof will violate, in any material respect, any statute,
      regulation, rule, injunction, judgment, order, decree, ruling, charge or other
      restrictions of any government, governmental agency or court to which Seller
      is
      subject or any contract, instrument or other agreement by which Seller is
      bound.

     

    (d) Seller
      is
      not required to obtain the consent or approval of any government agency,
      department or other government body, or any lender, partner, investor or other
      third party, to enter into this Agreement or if required, any such required
      consents or approvals have been obtained.

     

    (e) There
      are
      no general assignments for the benefit of creditors, or voluntary or involuntary
      proceedings in bankruptcy, existing, pending or, to Seller’s knowledge,
      threatened against Seller.

     

    (m) (i) The
      Leases listed on Schedule 4.3(f)(1)
      attached
      hereto constitute all the Leases in effect as of the Effective Date relating
      to
      the Property (other than any subleases under such Leases), the same have not
      been modified except as referenced in Schedule 1.1(a)(1),
      and
      Seller has provided true, correct and complete copies of the same to Buyer
      for
      its review pursuant to Section 3.1(e)(v)
      above.
      (ii) Except for the tenants listed on Schedule 1.1(a)(2),
      no
      tenant has given or received a written notice of default within the
      twelve (12) month period prior to the Effective Date, which default remains
      uncured as of the Effective Date. (iii) Except as set forth on the aged
      receivables report attached hereto as Schedule 1.1(a)(3),
      no
      Tenant is delinquent in the 

     

    
      
         

        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

     

    payment
      of any rent as of the date of such aged receivables report. (iv) the amount
      of the security deposit held by Seller under each Lease is as set forth on
      Schedule 1.1(d)(4).

     

    (n) To
      Seller’s knowledge, the reports, studies, assessments, investigations and other
      materials to be made available to Buyer for its review pursuant to
      Section 1.1(d)(i)
      above,
      shall
      constitute all written materials in the possession, custody or control of Seller
      or its property manager related to the presence of Hazardous Materials at,
      on or
      under the Property and the compliance of the Property with Hazardous Materials
      Laws; provided that Seller makes no representation or warranty as to whether
      Buyer is entitled to rely on any such reports, studies, assessments,
      investigations or other materials, and if Buyer desires to rely on the same,
      Buyer shall be responsible for obtaining, at its sole cost and expense, written
      permission from the preparer of any such items.

     

    (h) There
      are
      no service, maintenance, management, parking, brokerage or other agreements
      or
      contracts relating to the Property that will bind Buyer or the Property after
      the Closing except for the Permitted Exceptions and the Miscellaneous
      Agreements.

     

    (i) Seller
      has received no written notice of any litigation or other legal action, suit
      or
      proceeding that pertains to the Property, or with respect to Seller that impair
      Seller’s ability to perform its obligations under this Agreement, and which
      remains pending, except for any personal injury or property damage actions
      covered by insurance.

     

    (j) Seller
      has received no written notice of any uncured violation of any law applicable
      to
      the Premises (including, without limitation, any Hazardous Materials
      Law).

     

    (k) Seller
      has not received written notice of any pending condemnation or eminent domain
      proceeding affecting the Premises, and to Seller’s knowledge, no such action is
      threatened or contemplated.

     

    
      	 	
              4.4

            	
              Seller’s
                Knowledge

            

    

     

    As
      used
      in this Agreement or in any documents delivered pursuant hereto, the phrases
“to
      Seller’s knowledge”, “known to Seller”, “Seller has not received any notice”, or
“Seller has not received any written notice” (or similar words), shall mean that
      the representations and warranties (or other provisions) qualified by any of
      such phrases are made without investigation of the matters stated therein and
      are based solely on the current actual knowledge of Mr. A. Corey
      Hansen, the employee of Seller’s property manager, or Jim Christian, asset
      manager for Seller, either or both of whom would be expected to have the
      knowledge and would be expected to have received any notice with respect to
      the
      existence or non-existence of the matters referenced in
      Section 4.3
      above.

     

    
      	 	
              4.5

            	
              Survival
                of and Limitations on Seller’s Representations and
                Warranties

            

    

     

    All
      representations and warranties contained in Section 4.3
      and all
      representations contained within any Seller’s Lease Certificate provided to
      Buyer pursuant to Section 1.1(q)
      below,
      are
      qualified by any information contained in any documents or other material made
      available to Buyer in connection with its review of matters pertaining to the
      Property pursuant to Section 3
      above,
      including any title report or survey made available to Buyer. All
      representations and 

     

    
      
         

        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

     

    warranties
      of Seller set forth in Section 4.3
      are made
      as of the Effective Date. In addition, as of Closing Date, Seller shall provide
      Buyer with a certification regarding the accuracy of such representations and
      warranties as of such date, including any exceptions or qualifications thereto
      as of such date (“Seller’s
      Closing Certification”).
      If
      any exceptions or qualifications to such representations and warranties set
      forth in Seller’s Closing Certification are material, were not known to Buyer as
      of the expiration of the Investigation Period, and are not acceptable to Buyer
      in its sole discretion, Buyer may terminate this Agreement and receive a refund
      of the Deposit, but Seller shall have no liability to Buyer as a result of
      such
      qualification and exceptions. In addition, in the event Buyer is actually aware
      prior to the Closing that any of the representations or warranties set forth
      in
      Section 4.3
      or any
      of the representations contained within any Seller’s Lease Certificate are not
      true, correct or complete, and Buyer nonetheless proceeds with the purchase
      of
      the Property, such representations and warranties shall be deemed to be
      qualified by all matters of which Buyer is actually aware, and Buyer shall
      have
      no claim for breach of any such representation or warranty to the extent it
      is
      actually aware prior to the Closing of any inaccuracies therein. The
      representations and warranties of Seller set forth in Section 4.3,
      as
      qualified by all matters of which Buyer is actually aware as of the Closing
      and
      by any exceptions and qualifications set forth on Seller’s Closing
      Certification, and all representations contained within any Seller’s Lease
      Certificate, as qualified by all matters of which Buyer is actually aware as
      of
      the Closing, shall survive the Closing of the transaction contemplated in this
      Agreement and the delivery of the Deed from Seller to Buyer for a period of
      nine (9) months from and after the Closing Date (the “Survival
      Period”);
      provided, however, that Buyer must give Seller written notice of any claim
      Buyer
      may have against Seller for breach of any such representations and warranties
      set forth in Section 4.3
      (as
      modified by any exceptions and qualifications set forth on Seller’s Closing
      Certification) or for breach of any representations contained within any
      Seller’s Lease Certificate, prior to the expiration of the Survival Period. Any
      such claim which Buyer may have which is not so asserted prior to the expiration
      of the Survival Period shall not be valid or effective, and Seller shall have
      no
      liability with respect thereto. Notwithstanding any provision of this Agreement
      to the contrary, in no event shall Seller’s liability for any breach of any
      representation or warranty under this Agreement, or pursuant to Seller’s Closing
      Certification or a Seller’s Lease Certificate exceed Two Million Dollars
      ($2,000,000.00), in the aggregate.

     

    
      	 	
              4.6

            	
              Representations
                and Warranties of
                Buyer

            

    

     

    Buyer
      represents and warrants to Seller as follows:

     

    (a) Buyer
      is
      a limited partnership, duly organized, validly existing and in good standing
      under the laws of Maryland, and qualified to transact business and in good
      standing in the State of California.

     

    (b) Buyer
      has
      the power and authority to enter into this Agreement and to execute and deliver
      the other documents referred to herein and to perform hereunder and thereunder
      on behalf of Buyer. This Agreement has been duly authorized, executed and
      delivered by Buyer.

     

    (c) Neither
      the execution and delivery of this Agreement, the consummation of the
      transactions contemplated by this Agreement, nor the compliance with the terms
      and conditions hereof will violate, in any material respect, any statute,
      regulation, rule, injunction, judgment, 

     

    
      
         

        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

     

    order,
      decree, ruling, charge or other restrictions of any government, governmental
      agency or court to which Buyer is subject, or any contract, instrument or other
      agreement by which Buyer is bound.

     

    (d) Buyer
      is
      not required to obtain the consent or approval of any government agency,
      department or other government body, or any lender, partner, investor or other
      third party, to enter into this Agreement or if required, any such required
      consents or approvals have been obtained.

     

    (e) There
      are
      no general assignments for the benefit of creditors, or voluntary or involuntary
      proceedings in bankruptcy, existing, pending or, to Buyer’s knowledge,
      threatened against Buyer.

     

    
      	 	
              4.7

            	
              Survival
                of Buyer’s Representations and
                Warranties

            

    

     

    All
      representations and warranties of Buyer set forth in Section 4.6
      are made
      as of the Effective Date. In addition, as of Closing Date, Buyer shall provide
      Seller with a certification regarding the accuracy of such representations
      and
      warranties as of such date, including any exceptions or qualifications thereto
      as of such date (“Buyer’s
      Closing Certification”).
      If
      the exceptions or qualifications to such representations and warranties as
      of
      the Closing Date are material and are not acceptable to Seller in its sole
      discretion, Seller may refuse to consummate this transaction and exercise the
      remedy set forth in Section 1.1(s)
      below.
      The
      representations and warranties of Buyer set forth in Section 4.6,
      as
      qualified by any exceptions and qualifications set forth on Buyer’s Closing
      Certification, shall survive the Closing of the transaction contemplated in
      this
      Agreement and the delivery of the Deed from Seller to Buyer for the Survival
      Period; provided, however, that Seller must give Buyer written notice of any
      claim Seller may have against Buyer for breach of any such representations
      and
      warranties set forth in Section 4.6
      (as
      modified by any exceptions and qualifications set forth on Buyer’s Closing
      Certification), prior to the expiration of the Survival Period. Any such claim
      which Seller may have which is not so asserted prior to the expiration of the
      Survival Period shall not be valid or effective, and Buyer shall have no
      liability with respect thereto.

     

    
      	
              5.

            	
              Interim
                Operation of the Property

            

    

     

    
      	 	
              5.1

            	
              Lease
                Matters

            

    

     

    (o) Provided
      that Buyer is not in default under this Agreement (after notice from Seller
      thereof), Seller shall not execute any new leases of the Property or modify,
      renew or extend any existing leases, in a manner which will reduce the rent
      payable thereunder, change the expiration date thereof, increase Seller’s
      obligations or adversely affect Seller’s rights or interest as landlord
      thereunder, or decrease the Tenant’s obligations or increase the Tenant’s rights
      as tenant thereunder, or execute any other agreements affecting the Property
      that will survive the Closing, without first obtaining Buyer’s written consent
      (or deemed consent pursuant to this Section 5.1(a))
      thereto, which consent shall not be unreasonably withheld or delayed. If Buyer
      fails to respond within three (3) business days after receipt of a written
      request from Seller for Buyer’s consent to any of the foregoing (which request
      shall be accompanied by a copy of the proposed lease, lease modification or
      other agreement), Buyer shall be deemed to have consented 

     

    
      
         

        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

     

    to
      the
      same. If Seller, with Buyer’s consent (or deemed consent) as described above,
      enters into any leases of the Property or modifies any existing leases after
      the
      Effective Date and before the Closing Date, then, provided the Closing occurs,
      any Tenant Improvement Costs, any leasing commissions, and any other monetary
      concessions (excluding free rent) incurred in connection with such new leases
      or
      lease modifications shall be allocated between Seller and Buyer on a pro rata
      basis based on the relative duration of the portion of the term of a new lease
      (or the relative portion of a modified lease from and after the effective date
      of the modification in the case of a lease modification) occurring prior to
      or
      after the Closing. Any free rent shall be borne by the party that owns the
      Property during the period(s) to which free rent is applicable. Seller shall
      be
      given a credit at Closing for all amounts paid by Seller for Tenant Improvement
      Costs, leasing commissions or other monetary concessions (excluding free rent)
      in connection with such new leases or lease modifications to the extent such
      payments exceed Seller’s share of such items as determined pursuant to the
      immediately preceding sentence. In addition, if any leasing commissions, Tenant
      Improvement Costs or other monetary concessions (excluding free rent) are
      payable after the Closing Date with respect to such new leases or lease
      modifications, Buyer shall assume the obligation to pay the same (subject to
      a
      credit in favor of Buyer at the Closing for Seller’s share, if any, of such
      costs as determined above to the extent Seller has not paid an amount equal
      to
      or in excess of its share of such costs), and any contracts pursuant to which
      any such obligations are incurred shall be assigned to, and assumed by, Buyer
      at
      the Closing.
      Notwithstanding the foregoing, in no event shall Seller have any obligation
      to
      undertake or cause Burnham or Landmark to undertake any efforts or activity
      to
      lease any portion of the Property after the Effective Date, and Seller may
      instead refer any parties interested in leasing the Property to
      Buyer.

     

    (b) Provided
      that Buyer is not in default under this Agreement (after notice from Seller
      thereof), Seller shall not, without Buyer’s prior written consent, grant consent
      or approval to any request made by a Tenant unless Seller is obligated under
      the
      applicable lease to grant such consent or approval (without the right to
      exercise judgment or discretion) or unless such consent or approval would not
      materially increase the obligations of Seller or adversely affect Seller’s
      rights or interest as landlord under the lease. Buyer agrees to advise Seller,
      within three (3) business days after Buyer’s receipt of Seller’s notice of
      a Tenant’s request for such consent or approval (or, if earlier, three (3)
      days before the date when such response is required under the applicable lease,
      so long as Seller’s notice identifies such earlier deadline), whether Buyer
      elects that such Tenant’s request be granted or denied (and provide, in
      reasonable detail, the reasons for any denial), which election shall be made
      pursuant to the reasonableness requirements, if any, set forth in the applicable
      lease or implied under California law, or in Buyer’s judgment if no such
      requirements are set forth in such lease or implied under California law. If
      Buyer fails to timely respond to Seller’s notice, Seller may grant or deny
      consent to the Tenant’s request in Seller’s sole discretion, and Seller shall
      have no liability to Buyer therefor.

     

    
      	 	
              5.2

            	
              Certain
                Leases and Other
                Agreements

            

    

     

    (p) Except
      as
      provided in the immediately following sentence Seller agrees to pay (and shall
      not receive a credit at the Closing for any amounts paid for) the Tenant
      Improvement Costs, leasing commissions and any other monetary concessions
      (excluding free rent) associated with any leases, or any modification, renewal
      or extension entered into (or exercised, in the case of an option) prior to
      the
      Effective Date, but without giving effect to any renewals or modifications
      

     

    
      
         

        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

     

    thereof
      after the Effective Date (which modifications, renewals or extensions after
      the
      Effective Date shall be governed by Section 1.1(b)).
      Notwithstanding the foregoing, Buyer shall be responsible for the payment of
      any
      leasing commissions, Tenant Improvement Costs or other monetary concessions
      (excluding free rent) identified on Schedule 1.1(p),
      regardless of when the same become payable, and to the extent the rights and
      obligations with respect to the payment of the same have not been paid as of
      the
      Closing and are set forth in agreements, such rights and obligations shall
      be
      assigned to, and assumed by, Buyer at the Closing. To the extent Seller pays
      any
      leasing commissions, Tenant Improvement Costs or other monetary concessions
      (excluding free rent) identified on Schedule 1.1(p)
      before
      the Closing, provided the Closing occurs, Seller shall be given a credit at
      Closing for the same.
      Any free
      rent shall be borne by the party that owns the Property during the period(s)
      to
      which free rent is applicable.

     

    
      	 	
              5.3

            	
              Operation
                of Property

            

    

     

    Seller
      agrees to keep substantially similar insurance coverage in effect with respect
      to the Property as is in effect on the Effective Date until the Closing. During
      the period from the Effective Date through the Closing, Seller shall operate,
      manage, maintain and repair the Property in a manner consistent with Seller’s
      practices in effect prior to the Effective Date, provided that Seller shall
      not
      make any capital improvements to the Property except as required under the
      term
      of any Lease.

     

    
      	 	
              5.4

            	
              Survival

            

    

     

    The
      provisions of this Section 5
      pertaining to the payment of leasing commissions, Tenant Improvement Costs
      and
      any other monetary concessions with respect to Leases shall survive the
      Closing.

     

    
      	
              6.

            	
              Conditions
                to Closing

            

    

     

    
      	 	
              6.1

            	
              Conditions
                to Buyer’s Obligations to
                Close

            

    

     

    The
      obligation of Buyer to consummate the purchase of the Property as contemplated
      by this Agreement is subject to the fulfillment of each of the following
      conditions (in addition to such other items as are set forth elsewhere in this
      Agreement as conditions to Buyer’s obligations to close), any or all of which
      may be waived in whole or in part by Buyer to the extent permitted by applicable
      law:

     

    (a) Delivery
      of Documents.
      Seller
      shall have deposited into Escrow all instruments and documents to be delivered
      by Seller to Buyer at the Closing under the provisions of this
      Agreement.

     

    (q) Title
      Policy.
      The
      Title Company shall be committed to issue at Closing an owner’s title insurance
      policy, or an irrevocable binder to issue the same, dated as of the Closing
      Date, in the full amount of the Purchase Price, showing title to the Premises
      in
      the name of Buyer, the form of which shall be CLTA standard coverage; provided
      that if Buyer obtains an updated ALTA survey of the Property, in form sufficient
      to satisfy the requirements of the Title Company for the issuance of an ALTA
      owner’s policy of title insurance, then the form shall be ALTA (10/17/92)
      Standard Form B, with extended coverage, (the “Title
      Policy”),
      which
      Title Policy 

     

    
      
         

        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

     

    shall
      be
      subject only to the standard exclusions from coverage contained in such policy
      and the Permitted Exceptions, together with such endorsements as specified
      in
      Section 1.1(f)
      above.

     

    (r) Estoppel
      Certificates.
      Seller
      agrees to use its commercially reasonable efforts to obtain and deliver to
      Buyer
      an estoppel certificate substantially in the form of Exhibit A
      (except
      where the lease of such Tenant specifies a different form, in which case such
      different form shall be used) dated not more than forty-five (45) days
      prior to the original Closing Date specified in Section 1.1(a)
      below
      from
      each Tenant; provided, however, that with respect to any Lease with the United
      States General Services Administration (the “GSA”)
      or the
      State of California (the “State”)
      as
      Tenant, an estoppel certificate on the standard form used by the GSA or the
      State shall be permitted, whether or not such form is attached to the Lease.
      The
      condition to the obligation of Buyer to consummate the Closing shall be the
      delivery to Buyer of estoppel certificates satisfying the provisions of this
      Section 1.1(r)
      from the
      following Tenants: (i) each Tenant under a Lease pertaining to more than
      20,000 rentable square feet of space (each, a “Major
      Tenant”),
      and
      (ii) such other Tenants that in the aggregate with the Major Tenants lease
      not less than eighty percent (80%) of the square footage of the Improvements
      currently leased to Tenants. The estoppel certificates to be delivered to Buyer
      shall be consistent in all material respects with the terms of the applicable
      Lease as previously delivered to Buyer, and shall disclose no material defaults
      or alleged material defaults by either Seller or the Tenant under such Lease
      or
      any Tenant bankruptcy or any dispute between Seller and a Tenant except for
      any
      defaults, bankruptcies or disputes disclosed to Buyer prior to the expiration
      of
      the Investigation Period. Buyer’s failure to notify Seller of any objections to
      any estoppel certificate within three (3) business days of Buyer’s receipt
      of the same shall constitute Buyer’s acknowledgement that such estoppel
      certificate satisfies the requirements of this Section 1.1(r).
      To the
      extent Seller is unable, despite the exercise of reasonable diligence, to obtain
      the number of estoppel certificates required under this
      subparagraph (r),
      at
      Seller’s option Seller shall have the right with respect to any Leases other
      than Leases with Major Tenants that in the aggregate do not pertain to more
      than
      five percent (5%) of the square footage of the Improvements currently
      leased to Tenants, to submit in lieu thereof, at Seller’s option, a certificate
      signed by Seller with respect to the applicable Lease and otherwise complying
      with the requirements of this subparagraph (r),
      but the
      matters described in paragraphs 8,
      9,
      10
      and
12
      of
Exhibit A
      shall be
      qualified to Seller’s knowledge (a “Seller’s
      Lease Certificate”).
      The
      representations in any such Seller’s Lease Certificate shall survive the Closing
      until the expiration of the Survival Period or such earlier date as the same
      shall be replaced by an estoppel certificate for the applicable Tenant meeting
      the requirements set forth above.

     

    (d) Seller’s
      Compliance.
      Seller
      shall have performed and satisfied all material covenants and material
      obligations of Seller under this Agreement to the extent such covenants and
      obligations are to be performed or satisfied as of the Closing
      Date.

     

    The
      conditions set forth in this Section 6.1
      are
      solely for the benefit of Buyer and may be waived only by Buyer. Buyer shall
      at
      all times have the right to waive any condition. Any such waiver or waivers
      shall be in writing and shall be delivered to Seller and Escrow Holder. If
      any
      of the conditions in this Section 6.1
      is not
      satisfied or has not been so waived by Buyer prior to the Closing Date, Buyer
      shall deliver written notice to Seller describing the condition that has not
      been satisfied or waived, and if such condition remains unsatisfied as of the
      Closing Date, then Buyer shall have the right to terminate this Agreement and
      the Escrow by written notice to Seller 

     

    
      
         

        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

     

    and
      Escrow Holder. If Buyer terminates this Agreement in accordance with the
      foregoing, the Deposit shall be refunded to Buyer, all documents deposited
      into
      Escrow shall be returned to the party depositing such documents, and neither
      party shall have any further rights or obligations under this Agreement, except
      for those rights or obligations which expressly survive the termination of
      this
      Agreement. Further, if the failure of such condition also constitutes a default
      of Seller under this Agreement, then in lieu of terminating this Agreement,
      Buyer may elect to proceed under either of the options provided under
      clauses (
      )
      or
(i)
      of
      Section 1.1(b).

     

    
      	 	
              6.2

            	
              Conditions
                to Seller’s Obligations to
                Close

            

    

     

    The
      obligation of Seller to consummate the sale of the Property as contemplated
      by
      this Agreement is subject to the fulfillment of each of the following conditions
      (in addition to such other items as are set forth elsewhere in this Agreement
      as
      conditions to Seller’s obligations to close), any or all of which may be waived
      in whole or in part by Seller to the extent permitted by applicable
      law:

     

    (a) Deposit
      of Funds.
      Buyer
      shall have deposited into Escrow the Purchase Price, subject to adjustment
      for
      any prorations and credits provided hereunder, and all other monies required
      to
      be deposited by Buyer hereunder.

     

    (b) Delivery
      of Closing Documents.
      Buyer
      shall have deposited into Escrow all instruments and documents to be delivered
      by Buyer to Seller at the Closing under the provisions of this
      Agreement.

     

    (c) Buyer’s
      Compliance.
      Buyer
      shall have performed and satisfied all material covenants and material
      obligations of Buyer under this Agreement to the extent such covenants and
      obligations are to be performed or satisfied as of the Closing
      Date.

     

    The
      conditions set forth in this Section 6.2
      are
      solely for the benefit of Seller and may be waived only by Seller. Seller shall
      at all times have the right to waive any condition. Any such waiver or waivers
      shall be in writing and shall be delivered to Buyer and Escrow Holder. If any
      of
      the conditions in this Section 6.2
      is not
      satisfied or has not been so waived by Seller prior to the Closing Date, Seller
      shall deliver written notice to Buyer describing the condition that has not
      been
      satisfied or waived, and if such condition remains unsatisfied as of the Closing
      Date, then Seller shall have the right to terminate this Agreement and the
      Escrow by written notice to Buyer and Escrow Holder. If Seller terminates this
      Agreement in accordance with the foregoing, the Deposit shall be returned to
      Buyer or paid over to Seller, as required by the terms of this Agreement, all
      documents deposited into Escrow shall be returned to the party depositing such
      documents, and neither party shall have any further rights or obligations under
      this Agreement, except for those rights or obligations which expressly survive
      the termination of this Agreement; provided, however, if the failure of such
      condition also constitutes a default of Buyer under this Agreement, then the
      provisions of Section 1.1(t)
      shall
      apply, and the Deposit shall be paid to Seller as liquidated damages, rather
      than being returned to Buyer. Without limiting the foregoing, in the event
      of
      Buyer’s default, Seller’s termination of this Agreement pursuant to this
      Section 6.2
      shall
      not constitute a waiver of Seller’s right to recover liquidated damages from
      Buyer pursuant to Section 1.1(t).

     

     

    
      
         

        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

     

    
      	
              7.

            	
              Closing
                and Transfer of Title

            

    

     

    
      	 	
              1.1

            	
              Closing
                Date

            

    

     

    (s) Provided
      that all of the conditions precedent to the Closing have been satisfied or
      waived, the Closing shall be held, and delivery of all items to be made at
      the
      Closing under the terms of this Agreement shall be made, at the offices of
      Escrow Holder at 10:00 a.m. California time on January 30, 2006, or
      such earlier date and time as Buyer and Seller may mutually agree upon in
      writing (the “Closing
      Date”).
      Notwithstanding the foregoing, Seller shall have the right, by written notice
      to
      Buyer, given no later than three (3) business days prior to the
      then-scheduled Closing Date, to extend the Closing Date one or more times,
      but
      not for a period of longer than thirty (30) days in the aggregate,
      (i) if additional time is necessary for Seller to complete any Curative
      Action, or (ii) if the condition set forth in Section 1.1(r)
      has not
      been satisfied by the originally scheduled Closing Date.

     

    (t) Pursuant
      to the provisions of this Section 7.1(b),
      Buyer
      shall have two (2) options to extend the Closing Date for fifteen (15)
      days each (each referred to as an “Extension
      Option”).
      In
      order to exercise the first Extension Option (the “First
      Extension Option”),
      Buyer
      shall deliver, no later than two (2) business days prior to the
      then-scheduled Closing Date, (i) written notice to Seller and Escrow Holder
      (which may be given by electronic mail, so long as receipt is confirmed
      telephonically with Janine Roberts or Craig Etlin at the phone numbers listed
      for such persons in Section 14
      below)
      that
      Buyer is exercising the First Extension Option, (ii) immediately available
      funds in an amount equal to One Million Five Hundred Thousand Dollars
      ($1,500,000.00) (the “First
      Extension Deposit”)
      to
      Escrow Holder, and (iii) written instructions to the Escrow Holder, with a
      copy to Seller, to immediately release to Seller the entire amount of the
      Initial Deposit then being held by Escrow Holder. If Buyer exercises the First
      Extension Option, Buyer shall be deemed to have waived any liability of Seller
      and any right to refuse to consummate the Closing by reason of any condition
      known to Buyer as of the date Buyer exercises the First Extension Option, except
      to the extent the cure of any such condition is an express condition to Closing
      pursuant to another section of this Agreement. Provided that Buyer timely and
      properly exercises the First Extension Option, then in order to exercise the
      second Extension Option (the “Second
      Extension Option”),
      Buyer
      shall deliver, no later than two (2) business days prior to the
      then-scheduled Closing Date, (i) written notice to Seller and Escrow Holder
      (which may be given by electronic mail, so long as receipt is confirmed
      telephonically with Janine Roberts or Craig Etlin at the phone numbers listed
      for such persons in Section 14
      below)
      that
      Buyer is exercising the Second Extension, and (ii) immediately available
      funds in an amount equal to One Million Five Hundred Thousand Dollars
      ($1,500,000.00) (the “Second
      Extension Deposit”)
      to
      Escrow Holder. If Buyer exercises the Second Extension Option, Buyer shall
      be
      deemed to have waived any liability of Seller and any right to refuse to
      consummate the Closing by reason of any condition known to Buyer as of the
      date
      Buyer exercises the Second Extension Option, except to the extent the cure
      of
      any such condition is an express condition to Closing pursuant to another
      section of this Agreement. In the event Buyer exercises the First Extension
      Option, the Deposit (including the First Extension Deposit and, if applicable,
      the Second Extension Deposit) shall not be refundable except in the event of
      termination of this Agreement by Buyer pursuant to Sections 4.5
      (unless
      such termination is due solely to any exceptions or qualifications of one or
      more of the representations and warranties set forth in the following Sections:
      (1) Section 1.1(d)(ii),
      except for a material 

     

    
      
         

        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

     

    landlord
      default; (2) Section 1.1(d)(iii)
      and
      (iv); (3) Section 4.3(i);
      (4) Section 4.3(j),
      except
      to the extent caused by Seller, its agents, employees or contractors; and
      (5) Section 4.3(k)),
      6.1,
      9.2
      (but
      only in the case of an uninsured casualty), or 10(b)(ii).
      No
      interest shall accrue on any portion of the Deposit following payment or release
      thereof to Seller.

     

    
      	 	
              1.2

            	
              Seller’s
                Deliveries

            

    

     

    At
      the
      Closing, or at such later date as may be indicated below for any specific item,
      Seller shall deliver or cause to be delivered to Buyer through the Escrow or
      otherwise, each of the following instruments and documents, duly executed and
      acknowledged by Seller, as appropriate:

     

    (a) One (1)
      original
      of a
      Grant Deed in the form attached hereto as Exhibit B
      (the
“Deed”),
      subject only to the Permitted Exceptions.

     

    (b) Four (4)
      originals
      of a
      Bill of Sale in the form attached hereto as Exhibit C.

     

    (c) Fully
      executed originals (or copies thereof in the event the originals are not
      available) of all Leases (which may delivered within five (5) days after
      the Closing), and four (4) originals
      of an
      Assignment and Assumption of Leases in the form attached hereto as Exhibit D.

     

    (d) Fully
      executed originals (or copies thereof in the event the originals are not
      available) of all Miscellaneous Agreements (which may be delivered within
      five (5) days after the Closing), and four (4) originals
      of an
      Assignment and Assumption of Miscellaneous Agreements with respect thereto
      in
      the form attached hereto as Exhibit E.

     

    (e) Originals
      (or, if originals are unavailable, copies), of all assignable Permits and
      Warranties (which may be delivered within five (5) days after the Closing),
      unless the same are posted at the Property, and four (4) originals
      of an
      Assignment and Assumption of Permits, Intangible Property and Warranties with
      respect thereto in the form attached hereto as Exhibit F.

     

    (f) Four (4)
      originals
      of a
      Seller’s Closing Certification, in the form attached hereto as Exhibit G.

     

    (g) Any
      required real estate transfer tax declarations or any other similar
      documentation required to evidence the payment of any tax imposed by the state,
      county and city on the transaction contemplated hereby.

     

    (h) Four (4)
      originals
      of an
      affidavit pursuant to Section 1445(b)(2) of the United States Internal
      Revenue Code (the “Federal
      Code”),
      and
      on which Buyer is entitled to rely, from Seller that it is not a “foreign
      person” within the meaning of Section 1445(f)(3) of the Federal Code, in
      the form attached hereto as Exhibit H
      attached
      hereto (the “FIRPTA
      Affidavit”).

     

    (i) Four (4)
      originals
      of a
      properly executed certificate (herein, a “Qualifying
      Certificate”)
      under
      Section 18662 of the California Revenue and Taxation Code (“CALFIRPTA”)
      certifying that Seller is not an “individual” seller under CALFIRPTA and either
      (i) has a permanent place of business in California, or (ii) is
      qualified to do business in California or (iii) is exempt from 

     

    
      
         

        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

     

    the
      CALFIRPTA withholding requirements (if so, such certificate shall specify the
      applicable exemption).

     

    (j) Five (5)
      originals
      of a
      Designation Agreement in the form attached hereto as Exhibit I.

     

    (k) A
      Letter
      to Tenants in the form attached hereto as Exhibit J,
      advising of the sale of the Premises and the address to which future rent should
      be delivered (which will be delivered to the tenants by Seller or its property
      manager unless otherwise mutually agreed to by Seller and Buyer).

     

    (l) A
      Notice
      to Vendors in the form attached hereto as Exhibit K
      (which
      may be delivered to the vendors by Seller or its property manager unless
      otherwise mutually agreed to by Seller and Buyer).

     

    (m) To
      the
      extent in Seller’s possession or reasonable control, all keys and combinations
      to all locks on the Improvements.

     

    (n) Such
      other customary documents and instruments as may be required by any other
      provision of this Agreement or as may reasonably be required to carry out the
      terms and intent of this Agreement; provided that Seller shall not be obligated
      to cause the delivery of any such instrument or document that would increase
      or
      expand Seller’s obligations or liability under this Agreement.

     

    (o) Copies
      of
      all books, records, and files of Seller in Seller’s possession relating to the
      Premises and operations thereof, including Tenant files (excluding any
      proprietary matters, such as appraisals and tax returns), and, to the extent
      in
      Seller’s possession or available to Seller at no material cost, architects’
drawings, blueprints and as-built plans for the Improvements (all of which
      may
      be delivered within five (5) days after the Closing).

     

    
      	 	
              1.3

            	
              Buyer’s
                Deliveries

            

    

     

    At
      the
      Closing, Buyer shall deliver or cause to be delivered to Seller each of the
      following instruments and documents, duly executed and acknowledged by Buyer,
      as
      appropriate:

     

    (u) Counterparts
      of the closing documents referenced in Sections 1.1(c),
      (t),
      (t),
      (t)
      and
(t)
      above.

     

    (b) Four (4)
      originals
      of a
      Buyer’s Closing Certification, in the form attached hereto as Exhibit L.

     

    (c) Such
      other documents and instruments as may be required by any other provision of
      this Agreement or as may reasonably be required to carry out the terms and
      intent of this Agreement; provided that Buyer shall not be obligated to cause
      the delivery of any such instrument or document that would increase or expand
      Buyer’s obligations or liability under this Agreement.

     

     

    
      
         

        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              1.4

            	
              Possession
                of the Property

            

    

     

    At
      the
      Closing, possession of the Property shall be delivered to Buyer, subject to
      the
      Permitted Exceptions.

     

    
      	
              8.

            	
              Prorations
                and Adjustments

            

    

     

    
      	 	
              1.1

            	
              General

            

    

     

    The
      following adjustments shall be made with respect to the Property, and the
      following procedures shall be followed:

     

    (a) Preparation
      of Prorations.
      At
      least five (5) days before the Closing Date, Seller shall prepare and
      deliver, or cause Escrow Holder to prepare and deliver, to Buyer an unaudited
      statement for the Property (the “Preliminary
      Proration Statement”)
      showing prorations for the items set forth below, calculated as of
      12:01 a.m. on the Closing Date, on the basis of a 365-day year. Buyer and
      its representatives shall be afforded reasonable access to Seller’s books and
      records with respect to the Property and Seller’s work papers pertaining to the
      Preliminary Proration Statement to confirm the accuracy of the Preliminary
      Proration Statement. Buyer and Seller shall agree upon any adjustments to be
      made to the Preliminary Proration Statement before the Closing, and at the
      Closing, Buyer or Seller, as applicable, shall receive a credit equal to the
      net
      amount due Buyer or Seller, as applicable, pursuant to the Preliminary Proration
      Statement as finally agreed upon by Buyer and Seller. The items to be covered
      by
      the Preliminary Proration Statement are as follows:

     

    (i) rents,
      including percentage rents, escalation charges for real estate taxes, parking
      charges, marketing fund charges, operating expense prepayments and
      reimbursements from Tenants, maintenance escalation rents or charges,
      cost-of-living increases or other charges of a similar nature, if any, and
      any
      additional charges and expenses payable under the Leases (but only to the extent
      collected before the Closing Date); provided that if any of the foregoing are
      not finally adjusted between the landlord and Tenant under any Lease until
      after
      the preparation of the Preliminary Proration Statement then proration of such
      items shall be subject to adjustment pursuant to Section 1.2
      below;

     

    (ii) non-delinquent
      real property taxes and assessments; provided that if the real property tax
      assessment for the fiscal year in which the Closing occurs has not been issued
      as of the Closing Date, real property taxes shall be prorated based on the
      most
      recent assessed value of the Property, multiplied by the current tax rate,
      and
      such tax proration shall be subject to adjustment pursuant to
      subparagraph (v)
      of this
      Section 1.1;

     

    (iii) the
      current installment (only) on any improvement bonds which are a lien on the
      Property; Buyer shall take the Property subject to all future installments
      of
      any improvement bonds;

     

    (iv) water,
      sewer and utility charges;

     

    (iii) amounts
      payable under the Miscellaneous Agreements (including crediting Seller any
      amount to be credited pursuant to Section 5.1
      above);
      and

     

     

    
      
         

        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

     

    (vi) any
      other
      expenses normal to the operation and maintenance of the Property.

     

    (v) Principles
      of Prorations; Collections and Payments.
      Subject
      to the prorations to be made pursuant to this Section 8,
      after
      the Closing Buyer shall collect all revenues and pay all expenses with respect
      to the Property, even if such revenues and expenses relate to periods before
      the
      Closing; provided, however, if any Tenant sends payments to Seller after the
      Closing, Seller shall deposit such payments to its bank account, and promptly
      after such payment has cleared, pay to Buyer any portion of such payment to
      which Buyer is entitled under the provisions of this Section 8.
      Buyer
      shall use reasonable efforts consistent with prudent business practices to
      collect rents or other amounts payable under the Leases that were delinquent
      as
      of the Closing Date and that relate to a period before the Closing, provided
      that Buyer shall not be required to commence an action for unlawful detainer
      or
      otherwise bring legal action against any such Tenant. To the extent such
      delinquent rents and other amounts are collected by Buyer, Buyer may deduct
      from
      the amount owed to Seller an amount equal to the out-of-pocket third-party
      collection costs (including attorneys’ fees and costs) actually incurred by
      Buyer in collecting such rents and other amounts due to Seller. Subject to
      the
      foregoing sentence, any rent or other payment collected after the Closing from
      any Tenant which owed rent that was delinquent as of the Closing Date shall
      be
      applied first, to such Tenant’s unpaid monetary obligations under the applicable
      Lease with respect to any periods from the Closing Date through the end of
      the
      month in which such payment is made, in such order as Buyer may elect, until
      such monetary obligations have been paid in full; any remaining amount of such
      payment shall be paid over to Seller, for application against such Tenant’s
      delinquent monetary obligations under the applicable Lease with respect to
      any
      periods before the Closing Date, in such order as Seller may elect, until such
      delinquent monetary obligations have been paid in full; and any remaining amount
      of such payment shall be retained by Buyer for application against such Tenant’s
      future obligations under the applicable Lease. Notwithstanding the foregoing,
      or
      the provisions of Section 1.1(a)
      above,
      if any
      Tenant pays rent in arrears and as of the Closing such Tenant is not then in
      default in the payment of base rent under such Tenant’s Lease, then rent due for
      such Tenant for the month in which the Closing occurs shall be prorated between
      Buyer and Seller at Closing, whether or not the same has been paid by the
      Tenant. In addition, in calculating the prorations pursuant to this
      Section 8,
      Seller
      shall receive a credit in the amount of any utility, municipality or other
      deposits relating to the Property made by Seller and which are assigned to
      Buyer
      at the Closing. Seller shall be entitled to seek a refund of any deposits not
      assigned to Buyer and Buyer shall cooperate with Seller’s efforts to obtain such
      refund.

     

    (c) Security
      Deposits.
      At the
      Closing, Seller shall assign and deliver to Buyer all prepaid rent, security
      deposits, letters of credit and other collateral actually received by Seller
      pursuant to any of the Leases, less any portions thereof applied in accordance
      with the respective Lease (together with a statement regarding such
      applications).

     

    (w) Post-Closing
      Adjustments.
      Notwithstanding anything to the contrary contained in this
      Section 8,
      (i) if the amount of the real property taxes and assessments payable with
      respect to the Property for any period before Closing is determined to be more
      than the amount of such real property taxes and assessments that is prorated
      herein (in the case of the current year) or that was paid by Seller (in the
      case
      of any prior year), due to a reassessment of the value of the Property or
      otherwise, Seller and Buyer shall promptly adjust the proration of such real
      property taxes and assessments after the determination of such amounts, and
      Seller shall pay to Buyer any increase 

     

    
      
         

        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

     

    in
      the
      amount of such real property taxes and assessments applicable to any period
      before Closing; provided, however, that Seller shall not be required to pay
      to
      Buyer any portion of such increase that is payable by Tenants under their
      respective Leases; and (ii) if the amount of the real property taxes and
      assessments payable with respect to the Property for any period before Closing
      is determined to be less than the amount of such real property taxes and
      assessments that is prorated herein (in the case of the current year) or that
      was paid by Seller (in the case of any prior year), due to an appeal of the
      taxes by Seller, a reassessment of the value of the Property or otherwise,
      Seller and Buyer shall promptly adjust the proration of such real property
      taxes
      and assessments after the determination of such amounts (net of any costs
      incurred by Seller in connection with pursuing any appeal thereof), and
      (A) Buyer shall pay to Seller any refund received by Buyer representing
      such a decrease in the amount of such real property taxes and assessments
      applicable to any period before Closing; provided, however, that Buyer shall
      not
      be required to pay to Seller any portion of such refund which is payable to
      Tenants under their respective Leases (other than a portion of such refund
      equal
      to the amount of all costs incurred by Seller in connection with pursuing any
      appeal thereof that the landlord is entitled to deduct from the refunds payable
      to Tenants under the terms of their respective Leases); and (B) Seller
      shall be entitled to retain any refund received by Seller representing such
      a
      decrease in the amount of such real property taxes and assessments applicable
      to
      any period before Closing; provided, however, that Seller shall pay to Buyer
      that portion of any such refund, after first deducting any and all costs
      incurred by Seller in connection with pursuing such refund, that is payable
      to
      Tenants under their respective Leases. Each party shall give notice to the
      other
      party of any adjustment of the amount of the real property taxes and assessments
      payable with respect to the Property for any period before Closing within
      thirty (30) days after receiving notice of any such
      adjustment.

     

    
      	 	
              1.2

            	
              Post
                Closing
                Reconciliation

            

    

     

    (x) Certain
      Delayed Prorations.
      If any
      Tenants are required to pay percentage rents, escalation charges for real estate
      taxes, parking charges, marketing fund charges, operating expenses, maintenance
      escalation rents or charges, cost-of-living increases or other charges of a
      similar nature (“Additional
      Rents”),
      then,
      with respect to those Additional Rents which are not finally adjusted between
      the landlord and Tenant under any Lease until after the preparation of the
      Preliminary Proration Statement pursuant to Section 1.1(a)
      above,
      Buyer
      shall submit to Seller, no later than March 31, 2007, an unaudited
      statement for the Property (a “Supplemental
      Proration Statement”)
      covering any such Additional Rents or any other items which have been finally
      adjusted between Buyer and such Tenants for the 2006 calendar year, containing
      a
      calculation of the prorations of such Additional Rents and such other items,
      prepared based on the principles set forth in Section 1.1(a)
      above,
      provided that in making such adjustment, the parties shall exclude any
      Additional Rents arising from increased real property taxes for the Property
      to
      the extent such increase results from Buyer’s purchase of the Property. In order
      to enable Buyer to make any year-end reconciliations of Additional Rents with
      Tenants for the 2006 calendar year, following the Closing, Seller shall deliver
      to Buyer a final statement of (i) all operating expenses for the Property
      which are actually paid by Seller and permitted to be passed through to Tenants
      pursuant to the terms of each Tenant’s respective Lease, with respect to the
      portion of the 2006 calendar year occurring prior to the Closing (“Seller’s
      2006 Actual Operating Expenses”),
      together with copies of all documentation evidencing Seller’s 2006 Actual
      Operating Expenses, including copies of third-party invoices and copies of
      Seller’s books and records 

     

    
      
         

        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

     

    applicable
      thereto, and (ii) all estimated payments of Additional Rents received by
      Seller from Tenants with respect to the portion of the 2006 calendar year
      occurring prior to the Closing. If Additional Rents for the 2005 calendar year
      have not finally adjusted between Seller and any Tenant as of the Closing,
      Seller shall retain all rights and obligations with respect to the adjustment
      thereof directly with the Tenant following the Closing, subject to the
      provisions of Section 1.1(w)
      above.
      Without
      limiting the generality of the foregoing, but subject to the provisions of
      Section 1.1(w)
      above,
      Seller
      shall retain all rights to bill and collect any additional amounts owing by
      any
      Tenant with respect to Additional Rents for the 2005 calendar year, and shall
      remain obligated to pay any refund owing to any Tenant for overpayment of
      Additional Rents for the 2005 calendar year.

     

    (b) Audit
      Rights for Supplemental Proration Statements.
      Seller
      and its representatives shall be afforded the opportunity to review all
      underlying financial records and work papers pertaining to the preparation
      of
      all Supplemental Proration Statements, and Buyer shall permit Seller and its
      representatives to have full access to the books and records in the possession
      of Buyer or any party to whom Buyer has given custody of the same relating
      to
      the Property to permit Seller to review the Supplemental Proration Statements.
      Any Supplemental Proration Statement prepared by Buyer shall be final and
      binding for purposes of this Agreement unless Seller shall give written notice
      to Buyer of disagreement with the prorations contained therein within
      sixty (60) days following Seller’s receipt of such Supplemental Proration
      Statement, specifying in reasonable detail the nature and extent of such
      disagreement. If Buyer and Seller are unable to resolve any disagreement with
      respect to any Supplemental Proration Statement within ten (10) business
      days following receipt by Buyer of the notice referred to above, either party
      may pursue any remedy available for the resolution of such dispute.

     

    (y) Payments
      for Adjustments.
      Any net
      credit due Seller or Buyer, as the case may be, shall be paid to Seller or
      Buyer, as the case may be, within seventy-five (75) days after the delivery
      of a Supplemental Proration Statement to Seller, unless Seller approves any
      such
      statement before the expiration of the applicable sixty (60) day period
      provided in Section 1.1(b)
      above,
      in
      which case such payment shall be made within fifteen (15) days after Seller
      notifies Buyer of such approval, or unless Seller notifies Buyer of a
      disagreement with respect to any such statement as provided in
      Section 1.1(b)
      above,
      in
      which case such payment (less a hold back sufficient to cover the amount of
      the
      disagreement) shall be made within fifteen (15) days after Seller notifies
      Buyer of such disagreement, and any further payment due after such disagreement
      is resolved shall be paid within fifteen (15) days after the resolution of
      such disagreement.

     

    
      	 	
              1.3

            	
              Survival

            

    

     

    The
      obligations of Seller and Buyer under this Section 8
      shall
      survive the Closing.

     

    
      	
              9.

            	
              Risk
                of Loss and Insurance
                Proceeds

            

    

     

    
      	 	
              1.1

            	
              Minor
                Loss

            

    

     

    Except
      in
      the case of a Major Loss (as defined in Section 1.2
      below),
      Buyer
      shall be bound to purchase the Property for the full Purchase Price as required
      by the terms hereof, without 

     

    
      
         

        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

     

    regard
      to
      the occurrence or effect of any damage to the Property or destruction of any
      Improvements or condemnation of any portion of the Property, and upon the
      Closing, there shall be a credit against the Purchase Price due hereunder equal
      to the amount of any insurance proceeds or condemnation awards collected by
      Seller as a result of any such damage or destruction or condemnation, plus
      the
      amount of any insurance deductible (which, for purposes of this
      Article 9
      shall
      also include the insured’s share of any co-insurance), less any sums expended by
      Seller toward the restoration or repair of the Property as a result of such
      casualty or condemnation; provided, however, with respect to the deductible
      under any policy of earthquake insurance, Seller shall have no obligation to
      give Buyer a credit in excess of Twenty-Five Thousand Dollars ($25,000.00).
      If
      the proceeds or awards have not been collected as of the Closing, then such
      proceeds or awards shall be assigned to Buyer at Closing, and Buyer shall
      receive a credit from Seller at Closing equal to the amount of the deductible
      under any policy of insurance pursuant to which such assigned proceeds will
      be
      paid; provided that if Seller shall have expended any sums before the Closing
      to
      repair or restore the Property, the amount expended by Seller shall first be
      deducted from any credit due Buyer for the deductible under any insurance
      policy, and if the amount expended by Seller exceeds the total amount of such
      deductible(s), Seller shall reserve from the assignment of insurance proceeds
      to
      Buyer, the amount of such excess. If damage due to an earthquake occurs and
      the
      cost to repair the damage exceeds Twenty-Five Thousand Dollars ($25,000.00),
      then unless Seller notifies Buyer within twenty (20) days after the
      occurrence thereof that it will waive the Twenty-Five Thousand Dollar
      ($25,000.00) limitation on the credit to Buyer, then such loss or damage shall
      be governed by Section 1.2.

     

    
      	 	
              1.2

            	
              Major
                Loss

            

    

     

    If
      (i) the cost to repair such damage or destruction to Property exceeds Three
      Million Dollars ($3,000,000), or(ii) in the case of condemnation, if either
      the
      value of the portion of the Property taken exceeds Three Million Dollars
      ($3,000,000) or the portion of the Property that is taken causes the Property
      to
      be in violation of any existing laws or governmental regulations or would permit
      any Tenant(s) occupying in the aggregate more than ten percent (10%) of the
      rentable area of the Improvements to terminate their Leases, or (iii) in
      the case of damage due to an earthquake which, under the terms of
      Section 1.1
      above,
      is to
      be governed by this Section 1.2
      (any
      event in clause (i), (ii) or (iii) above referred to herein as a
“Major
      Loss”),
      then
      Buyer may, at its option to be exercised by written notice to Seller within
      twenty (20) days after Seller’s notice to Buyer of the occurrence of the
      damage or destruction or the commencement of condemnation proceedings, either
      (a) elect to terminate this Agreement, in which case the Deposit shall be
      refunded to Buyer, and neither party shall have any further obligations under
      this Agreement, except for obligations which expressly state that they shall
      survive termination of this Agreement, or (b) consummate the purchase of
      the Property for the full Purchase Price as required by the terms hereof,
      subject to the credits against the Purchase Price provided below. If Buyer
      elects to proceed with the purchase of the Property, then, upon the Closing,
      Buyer shall be given a credit against the Purchase Price due hereunder equal
      to
      the amount of any insurance proceeds or condemnation awards collected by Seller
      as a result of any damage or destruction or condemnation, plus the amount of
      any
      insurance deductible, less any sums expended by Seller toward the restoration
      or
      repair of the Property as a result of such casualty or condemnation; provided,
      however, with respect to the deductible under any policy of earthquake
      insurance, Seller shall have no obligation to give Buyer a credit in excess
      of
      Twenty-Five Thousand Dollars 

     

    
      
         

        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

     

    ($25,000.00).
      If the proceeds or awards have not been collected as of the Closing, then such
      proceeds or awards shall be assigned to Buyer at Closing, and Buyer shall
      receive a credit from Seller at Closing equal to the amount of the deductible
      under any policy of insurance pursuant to which such assigned proceeds will
      be
      paid; provided that if Seller shall have expended any sums before the Closing
      to
      repair or restore the Property, the amount expended by Seller shall first be
      deducted from any credit due Buyer for the deductible under any insurance
      policy, and if the amount expended by Seller exceeds the total amount of such
      deductible(s), Seller shall reserve from the assignment of insurance proceeds
      to
      Buyer, the amount of such excess. If Buyer fails to give Seller notice within
      such 20-day period, then Buyer will be deemed to have elected to proceed in
      accordance with clause (b) above.

     

    
      	
              10.

            	
              Default

            

    

     

    (z) Buyer’s
      Default.
      If
      the
      Closing does not occur as a result of Buyer’s default hereunder, Seller’s sole
      and exclusive remedy shall be to terminate this Agreement by giving written
      notice thereof to Buyer, whereupon the Deposit (which for purposes of this
      Section 1.1(a)
      shall
      mean the portion of the Deposit that has been previously delivered by Buyer
      to
      either Escrow Holder or Seller) shall be paid to Seller as liquidated damages,
      as Seller’s sole and exclusive remedy on account of such default hereunder by
      Buyer; provided, however, that this provision will not limit Seller’s right to
      receive reimbursement for attorneys’ fees pursuant to Section 1.1
      below,
      nor
      waive or affect any provisions of this Agreement which expressly state that
      they
      shall survive the termination of this Agreement, and neither party shall have
      any further liability or obligation to the other hereunder, except for
      provisions of this Agreement which expressly state that they shall survive
      the
      termination of this Agreement. The parties acknowledge and agree that Seller’s
      actual damages in the event of Buyer’s default would be extremely difficult or
      impracticable to determine. After negotiation, the parties have agreed that,
      considering all the circumstances existing on the date of this Agreement, the
      amount of the Deposit is a reasonable estimate of the damages that Seller would
      incur in such event. The payment of the Deposit to Seller as liquidated damages
      under the circumstances provided for herein is not intended as a forfeiture
      or
      penalty within the meaning of Sections 3275 or 3369 of the California
      Civil Code, but is intended to constitute liquidated damages to Seller pursuant
      to Sections 1671, 1676 and 1677 of the California Civil Code. By placing
      their initials below, each party specifically confirms the accuracy of the
      statements made above, the reasonableness of the amount of liquidated damages
      agreed upon, and the fact that each party was represented by counsel who
      explained, at the time this agreement was made, the consequences of this
      liquidated damages provision.

     

    
      	
              Initials:

            	
              DL

            	
              ML

            
	 	
              Seller

            	
              Buyer

            

    

    

     

    
      
         

        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

     

    (b) Seller’s
      Default.
      If the
      Closing does not occur as a result of Seller’s default hereunder, then, Buyer
      may, at its sole election, proceed with one of the following mutually exclusive
      alternatives:

     

    (i) waive
      such default and proceed with the Closing with no reduction in the Purchase
      Price; provided, however, that this provision will not waive or affect any
      of
      Seller’s other obligations under this Agreement to be performed after the
      Closing with respect to any matter other than such default;

     

    (ii) terminate
      this Agreement, (A) whereupon the Deposit shall be returned and paid to
      Buyer, (B) Seller shall pay to Buyer the out-of-pocket third party expenses
      incurred by Buyer in connection with the negotiation of this Agreement, the
      review, testing and analysis of the Property, the acquisition of a loan to
      fund
      the Purchase Price, and/or other matters in preparation or furtherance of the
      consummation of Closing, not to exceed One Hundred Fifty Thousand Dollars
      ($150,000.00) in the aggregate, and (C) neither party shall have any
      further liability or obligation to the other hereunder, except for provisions
      of
      this Agreement which expressly state that they shall survive the termination
      of
      this Agreement; or

     

    (i) file
      in
      any court of competent jurisdiction an action for specific performance to cause
      Seller to convey the Property to Buyer pursuant to the terms and conditions
      of
      this Agreement; but Buyer shall not be entitled to recover monetary damages
      from
      Seller in connection with such default; provided, however, that this provision
      will not limit Buyer’s right to receive reimbursement for attorneys’ fees
      pursuant to Section 1.1
      below,
      nor
      waive or affect any of Seller’s other obligations under this Agreement to be
      performed after the Closing with respect to any matter other than such
      default.

     

    
      	
              11.

            	
              Expenses

            

    

     

    (a) All
      documentary stamp taxes and county transfer taxes shall be borne and paid by
      Seller, and all recording fees shall be borne and paid one-half by Seller and
      one-half by Buyer.

     

    (b) All
      Escrow and Closing costs charged by Escrow Holder, and any investment charges
      or
      escrow fees incurred with respect to the Escrow shall be borne and paid one-half
      by Seller and one-half by Buyer.

     

    (c) Seller
      shall pay the cost of a CLTA owner’s title insurance policy in the amount of the
      Purchase Price and the cost of any endorsements obtained in connection with
      a
      Curative Action undertaken by Seller. Buyer shall pay any additional cost of
      the
      Title Policy (including the cost of ALTA extended coverage and the cost of
      all
      endorsements, except for endorsements obtained in connection with a Curative
      Action undertaken by Seller).

     

    (aa) Buyer
      shall pay its due diligence expenses (including, but not limited to, the cost
      of
      any updated survey obtained by Buyer pursuant to Section 3.1(a)
      above),
      and
      each party shall pay its own attorneys’ fees in connection with the negotiation,
      documentation and consummation of the transactions contemplated hereunder.
      Each
      party shall pay its own costs of preparing and/or reviewing the Preliminary
      Prorations Statement and any Supplemental Prorations Statement in connection
      with this Agreement. The provisions of this Section 1.1(aa)
      shall
      survive any termination of this Agreement.

     

     

    
      
         

        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    

     

    (e) Other
      costs, charges, and expenses shall be borne and paid as provided in this
      Agreement, or in the absence of such provision, in accordance with the custom
      in
      the county where the Premises are located.

     

    
      	
              12.

            	
              Brokers

            

    

     

    (a) Seller
      represents to Buyer, and Buyer represents to Seller that (except for Secured
      Capital Corp and Burnham Real Estate Services, Inc. (“Broker”),
      whose
      commission will be paid by Seller pursuant to the terms of a separate agreement
      between Broker and Seller), there is no broker, finder, or intermediary of
      any
      kind with whom such party has dealt in connection with this
      transaction.

     

    (b) Seller
      agrees to indemnify and hold harmless Buyer, the partners, members, trustees,
      shareholders, directors and officers of Buyer, any party owning a direct or
      indirect interest in Buyer, the affiliates of Buyer, and the partners, members,
      trustees, shareholders, directors, officers, employees and agents of each of
      the
      foregoing parties (the “Buyer-Related
      Parties”),
      from
      and against all claims, demands, causes of action, judgments, and liabilities
      which may be asserted or recovered for brokerage or finders fees, commissions,
      or other compensation in connection with the transaction contemplated under
      this
      Agreement claimed by any party other than Broker to be owing to such party
      due
      to any dealings between Seller and the party claiming such fee, commission
      or
      compensation, including costs and reasonable attorneys’ fees incident thereto.
      Buyer agrees to indemnify and hold harmless the Seller-Related Parties, from
      and
      against all claims, demands, causes of action, judgments, and liabilities which
      may be asserted or recovered for brokerage or finders fees, commissions, or
      other compensation in connection with the transaction contemplated under this
      Agreement claimed by any party other than Broker to be owing to such party
      due
      to any dealings between Buyer and the party claiming such fee, commission or
      compensation, including costs and reasonable attorneys’ fees incident thereto.
      The parties hereto agree that the foregoing obligations of indemnification
      shall
      survive the Closing hereunder or the expiration or termination of this
      Agreement, however caused.

     

    
      	
              13.

            	
              Assignment

            

    

     

    Original
      Buyer may, upon written notice (an “Assignment
      Notice”)
      to
      Seller, not later than five (5) business days before the Closing, assign
      its right to purchase the Property hereunder to any other entity that is (and
      as
      of the Closing shall continue to be) (i) controlled by Original Buyer
      through the control by the Original Buyer of the managing general partner of
      the
      assignee’s partnership or the managing member of the assignee’s limited
      liability company, as the case may be, and (ii) an entity in which Original
      Buyer shall own, directly or indirectly, more than twenty percent (20%) of
      the
      stock or other equity interest, provided that such entity shall assume all
      obligations of Buyer hereunder in a written agreement (the “Assignment”)
      reasonably acceptable to Seller, including, specifically, reaffirmation of
      the
      release and indemnification set forth in Section 4.2
      above.
      Any
      Assignment Notice must include the proposed form of the Assignment and the
      name
      and jurisdiction of organization of the assignee. In addition, Buyer must
      deliver to Seller a copy of the fully executed Assignment prior to the Closing
      Date. Except in compliance with the preceding three sentences, Buyer may not
      assign this Agreement to any other party without Seller’s prior written consent,
      which consent may be granted, conditioned or denied in Seller’s sole and
      absolute discretion. Notwithstanding anything herein to the contrary, 

     

    
      
         

        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    

     

    Buyer
      shall not in any event be released from any of its obligations or liabilities
      hereunder in the event of any assignment by Buyer, including, but not limited
      to, any obligations which survive the Closing, whether contained in this
      Agreement or any document to be delivered by Buyer at the Closing, even if
      such
      document is signed by the assignee of Buyer only. Subject to the limitations
      described herein, this Agreement shall be binding upon and shall inure to the
      benefit of the parties hereto, and their respective successors and
      assigns.

     

    
      	
              14.

            	
              Notices

            

    

     

    Any
      and
      all notices or other communications required or permitted to be given under
      this
      Agreement shall be in writing and either (i) personally delivered, in which
      case notice shall be deemed delivered upon receipt, (ii) sent by facsimile,
      in which case notice shall be deemed delivered upon the sender’s receipt of
      confirmation of transmission of such facsimile notice produced by the sender’s
      facsimile machine, (iii) sent by any nationally recognized overnight
      courier service with provisions for proof of delivery, in which case notice
      shall be deemed delivered on the next business day after the sender deposits
      the
      same with such delivery service, or (iv) sent by United States Mail,
      postage prepaid, certified mail, return receipt requested, in which case notice
      shall be deemed delivered on the date of delivery as shown on the return receipt
      or the date of the addressee’s refusal to accept delivery as indicated by the
      United States Postal Service, and in any case such notices or other
      communication shall be addressed to the following addresses:

     

    
      	
              Buyer:

               

            	
              Maguire
                Properties, L.P.

              333
                South Grand Avenue, Suite 400

              Los Angeles,
                California 90071

              Attention:
                Robert F. Maguire III and Mark Lammas

              Telephone:
                (213) 626-3300

              Telecopy:
                (213) 533-5107 and (213) 533-5198

               

            
	
              with
                a copy to:

               

            	
              Munger,
                Tolles & Olson LLP

              355
                South Grand Avenue, Suite 3500

              Los Angeles,
                California 90071

              Attention:
                Jeffrey A. Heintz, Esq.

              Telephone:
                (213) 683-9185

              Telecopy:
                (213) 683-5185

               

            
	
              Seller:

               

            	
              DL Pacific
                Center LP

              c/o
                DRA Advisors, LLC

              220 East
                42nd Street, 27th Floor

              New York,
                New York 10017

              Attention: Ms. Janine
                Roberts

              Telephone: (212) 697-4740

              Telecopy: (212) 697-7403

               

            

    

    
      
         

        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    

    

    
      	
              with
                a copy to:

               

            	
              Landmark
                Asset Management Group

              100 Bayview
                Circle, Suite 200

              Newport
                Beach, California 92660

              Attention: Mr. A. Corey
                Hansen

              Telephone: (949) 856-3100

              Telecopy: (949) 856-3232

               

            
	
              and
                a copy to:

               

            	
              Morrison &
                Foerster llp

              425 Market
                Street

              San Francisco,
                California 94105

              Attention: Craig B.
                Etlin, Esq.

              Reference: 23573/128

              Telephone: (415) 268-7000

              Telecopy: (415) 268-7522

               

            

    

    

    Either
      party may change its address for notice from time to time by notice to the
      other
      party in writing to the other in the manner aforesaid; provided that any such
      notice of change of address shall only be effective upon actual receipt by
      the
      other party.

     

    
      	
              15.

            	
              Miscellaneous

            

    

     

    
      	 	
              1.1

            	
              Attorneys’
                Fees

            

    

     

    In
      the
      event of any litigation between the parties with respect to the Property, this
      Agreement, the Escrow, the performance of their obligations hereunder or the
      effect of a termination under this Agreement, the losing party shall pay all
      costs and expenses incurred by the prevailing party in connection with such
      litigation including, without limitation, reasonable attorneys’ fees and
      disbursements. Any such attorneys’ fees and other expenses incurred by either
      party in enforcing a judgment in its favor under this Agreement shall be
      recoverable separately from and in addition to any other amount included in
      such
      judgment, and such attorneys’ fees obligation is intended to be severable from
      the other provisions of this Agreement and to survive and not be merged into
      any
      such judgment. Notwithstanding any provisions of this Agreement to the contrary,
      the obligations of the parties under this Section 1.1
      shall
      survive any termination of this Agreement and the Closing.

     

    
      	 	
              1.2

            	
              Gender

            

    

     

    Words
      of
      any gender used in this Agreement shall be held and construed to include any
      other gender, and words in the singular number shall be held to include the
      plural, and vice versa, unless the context requires otherwise.

     

    
      	 	
              1.3

            	
              Captions

            

    

     

    The
      captions in this Agreement are inserted only for the purpose of convenient
      reference and in no way define, limit or prescribe the scope or intent of this
      Agreement or any part hereof.

     

     

    
      
         

        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              1.4

            	
              Construction

            

    

     

    (a) No
      provision of this Agreement shall be construed by any Court or other judicial
      authority against any party hereto by reason of such party’s being deemed to
      have drafted or structured such provisions.

     

    (b) As
      used
      herein, the terms “include”, “including” and similar terms shall be construed as
      if followed by the phrase “but not limited to”. The terms “hereof”, “herein” and
“hereunder”, and words of similar import, shall be construed to refer to this
      Agreement as a whole, and not to any particular article or provision, except
      as
      expressly so stated.

     

    (c) It
      is the
      intent of the parties that all indemnification obligations of the either party
      set forth in this Agreement shall apply without regard to whether or not
      (i) the indemnifying party is negligent or otherwise at fault in any
      respect with regard to the existence or occurrence of any of the matters covered
      by any such indemnification obligation, or (ii) the indemnifying party
      otherwise caused or created, or is claimed to have caused or created, the
      existence or occurrence of any of the matters covered by any such
      indemnification obligation, whether through its own acts or omissions or
      otherwise.

     

    
      	 	
              1.5

            	
              Business
                Days; Deadlines

            

    

     

    As
      used
      in this Agreement and any document executed by any party hereto to another
      party
      hereto at the Closing, the term “business days” means all days of the year
      except Saturdays, Sundays, and holidays recognized by the Federal Reserve Bank
      of San Francisco. If a deadline provided in this Agreement or any document
      executed by any party hereto to another party hereto at the Closing falls on
      a
      day other than a business day, such deadline shall be extended until the first
      business day thereafter.

     

    
      	 	
              1.6

            	
              Entire
                Agreement

            

    

     

    This
      written Agreement, including all Schedules and Exhibits attached hereto
      (including, but not limited to, the Access Agreement) and documents to be
      delivered pursuant hereto, shall constitute the entire agreement and
      understanding of the parties, and there are no other prior or contemporaneous
      written or oral agreements, undertakings, promises, warranties, or covenants
      not
      contained or merged herein. The Schedules and Exhibits attached hereto are
      hereby incorporated in and made part of this Agreement.

     

    
      	 	
              1.7

            	
              Recording

            

    

     

    The
      parties agree that this Agreement shall not be recorded. If Buyer causes this
      Agreement or any notice or memorandum thereof to be recorded, this Agreement
      shall be null and void at the option of Seller.

     

    
      	 	
              1.8

            	
              No
                Continuance

            

    

     

    Buyer
      acknowledges that there shall be no assignment, transfer or continuance of
      Seller’s insurance coverage after the Closing.

     

     

    
      
         

        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              1.9

            	
              Time
                of Essence

            

    

     

    Time
      is
      of the essence of this Agreement. In the computation of any period of time
      provided for in this Agreement or by law, the day of the act or event from
      which
      said period of time runs shall be excluded, and the last day of such period
      shall be included, unless it is not a business day, in which case the period
      shall be deemed to run until the next day which is a business day.

     

    
      	 	
              1.10

            	
              Original
                Document

            

    

     

    This
      Agreement may be executed by all parties in counterparts in which event each
      shall be deemed an original, and all of which shall constitute one and the
      same
      agreement.

     

    
      	 	
              1.11

            	
              Governing
                Law

            

    

     

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California.

     

    
      	 	
              1.12

            	
              Acceptance
                of Offer

            

    

     

    In
      the
      event this Agreement is executed only by Buyer or Seller, this Agreement shall
      be regarded only as an offer to purchase or sell, as applicable, and shall
      not
      obligate either Buyer or Seller until this offer is accepted by execution hereof
      by the other party (the “Second
      Party”)
      and
      delivered to the party that first executed this Agreement (the “First
      Party”).
      If
      the Second Party has not accepted this offer and delivered a fully executed
      copy
      of this Agreement to the First Party within five (5) business days after
      its submission by the First Party, this offer shall be of no force or
      effect.

     

    
      	 	
              1.13

            	
              Confidentiality

            

    

     

    Buyer
      and
      Seller shall each maintain as confidential the terms of this Agreement
      (including the Purchase Price) and any and all material or information about
      the
      other, and, in the case of Buyer and its agents, employees, consultants and
      contractors, about the Property, and shall not disclose such terms or
      information to any third party, except, in the case of information about the
      Property, to Buyer’s lender or prospective lenders, equity investors or
      prospective equity investors, insurance and reinsurance firms, attorneys,
      accountants, environmental assessment firms and other consultants, as may be
      reasonably required for the consummation of the transaction contemplated
      hereunder and/or as required by law; provided that Buyer shall inform such
      parties as to the confidentiality of such materials and information and use
      all
      reasonable efforts to cause such parties to abide by the confidentiality
      provisions of this Agreement. In addition to, and without limiting the
      generality of, the foregoing, with respect to any environmental assessment
      firm
      employed directly or indirectly by Buyer for the purpose of reviewing or
      analyzing the condition of the Property, Buyer shall obtain from any such party
      a confidentiality agreement in the form attached hereto as Exhibit M
      for the
      benefit of Seller. Buyer shall notify Seller, by facsimile, with a copy by
      regular mail, at least three (3) business days before Buyer or Buyer’s
      agents, employees or contractors make any disclosure that such party believes
      is
      required by law; provided that, if a court order of a court of law with
      appropriate jurisdiction requires disclosure within a period of less than
      three (3) business days, 

     

    
      
         

        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    

     

    Buyer
      shall notify Seller by facsimile immediately upon receipt of such order.
      Further, Buyer agrees not to use or to allow to be used any such information
      for
      any purpose other than to determine whether to proceed with the contemplated
      purchase or to obtain a loan in connection therewith or to obtain insurance.
      This provision shall survive the Closing or any termination of this Agreement,
      provided that Buyer shall not be obligated to maintain as confidential any
      material about the Property after the Closing. However, after Closing, Buyer
      shall not make any public disclosures mentioning Seller or regarding the
      provisions of this Agreement or the transaction accomplished at Closing without
      the prior written consent of Seller. If the purchase and sale of the Property
      pursuant hereto does not close for any reason, Buyer shall return to Seller
      all
      agreements, documents, studies, reports and other materials pertaining to the
      Property either delivered by Seller or Seller’s agents to Buyer pursuant hereto,
      or, if requested by Seller, obtained by or on behalf of Buyer during Buyer’s
      investigation of the Property (excluding any proprietary materials, such as
      valuation or asset analysis, projections, software and other materials
      constituting the work product of Buyer or its agents or consultants).
      Notwithstanding anything herein to the contrary, each party shall have the
      right
      to disclose information relating to the Property to its partners and their
      direct and indirect owners, and their respective officers, employees, directors
      and representatives, and the provisions of this Section 1.13
      shall in
      no event apply to information which is or becomes generally available to the
      public other than as a result of disclosure by such party. The provisions of
      this Section 15.13 shall not restrict Buyer from disclosures required to
      comply with federal or state securities laws or other governmental laws or
      regulations.

     

    
      	 	
              1.14

            	
              Section 1031
                Exchange

            

    

     

    Each
      party agrees to cooperate with the other party (the “Exchanging
      Party”)
      and
      any escrow holder or exchange facilitator selected by the Exchanging Party
      in
      effecting a qualifying exchange or exchanges under Section 1031 of the
      Federal Code undertaken by the Exchanging Party with respect to the Property,
      either through assignment of this Agreement by the Exchanging Party to a
      qualified intermediary or through other means determined by the Exchanging
      Party, and the non-Exchanging Party shall execute such documents as may be
      reasonably requested by the Exchanging Party provided that such documents shall
      not materially increase the non-Exchanging Party’s obligations over those
      otherwise contained in this Agreement. Neither party makes any representation
      regarding qualification of any exchange under Section 1031 of the Federal
      Code and shall not be liable to the Exchanging Party in any manner whatsoever
      if
      the exchange completed in accordance with this Section 1.14
      should
      not qualify for any reason under Section 1031 of the Federal Code. The
      Exchanging Party hereby agrees to indemnify, defend and hold the non-Exchanging
      Party harmless from and against all costs, expenses and liabilities incurred
      by
      the non-Exchanging Party in connection with any such exchange, to the extent
      the
      same would not have been incurred by the non-Exchanging Party in the absence
      of
      such exchange. Notwithstanding anything in this Section 1.14
      to the
      contrary, it is a condition precedent to the non-Exchanging Party’s obligation
      to cooperate with the Exchanging Party in any such exchange that: (i) no
      material change to the terms of this Agreement results therefrom, (ii) the
      non-Exchanging shall not be required to acquire or hold title to any other
      real
      property for the purpose of consummating the exchange, and
      (iii) consummation or accomplishment of such an exchange shall not be a
      condition precedent or a condition subsequent to either party’s obligations
      under this Agreement and shall not delay the Closing.

     

     

    
      
         

        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              1.15

            	
              Amendment

            

    

     

    This
      Agreement may be amended or modified only by a written agreement subsequently
      executed by Buyer and Seller.

     

    
      	 	
              1.16

            	
              Waiver

            

    

     

    No
      waiver
      of any provision or condition of this Agreement by any party shall be valid
      unless in writing signed by such party. No such waiver shall be taken as a
      waiver of any other or similar provision or of any future event, act, or
      default.

     

    In
      Witness Whereof,
      the
      parties have executed this Agreement as of the date first above
      written.

     

    
      	
              Buyer:

            
	 	 	 
	
              Maguire
                Properties, L.P.,

            
	
              a
                Maryland limited partnership

            
	 	 	 
	
              By:

            	
              Maguire
                Properties, Inc.

            
	 	
              a
                Maryland corporation

            
	 	
              its
                General Partner

            
	 	 	 
	 	
              By:

            	
              /s/
                Mark Lammas

            
	 	
              Name:

            	Mark
              Lammas
	 	
              Title:

            	SVP
	 	 	 
	
              Date
                signed:

            	 

    

    

     

    
      	
              Seller:

            
	 	 	 
	
              DL Pacific
                Center LP,

            
	
              a
                Delaware limited partnership

            
	 	 	 
	
              By:

            	
              G&I III
                Investment Pacific Center Corp.,

            
	 	
              a
                Delaware corporation,

            
	 	
              its
                General Partner

            
	 	 	 
	 	
              By:

            	
              
                /s/
                  David Luski

              

            
	 	
              Name:

            	David
              Luski
	 	
              Title:

            	Vice
              President
	 	 	 
	
              Date
                signed:

            	 

    

    

     

    
      
        
        

      

      
        34Exh 10.3 Pacific Center Loan Agreement dated 4/19/2006

    
      

    

    Exhibit
      10.3

     

    
 

    LOAN
      AGREEMENT

    

    Dated
      as
      of April 19, 2006

    

    Between

    

    MAGUIRE
      PROPERTIES-PACIFIC CENTER, LLC

    as
      Borrower

    

    And

    

    GREENWICH
      CAPITAL FINANCIAL PRODUCTS, INC.,

    as
      Lender

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    TABLE
      OF CONTENTS

    
      

      
        	
                Page

              
	 	 
	
                ARTICLE
                  1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION

              	
                5

              
	
                Section
                  1.1

              	
                Specific
                  Definitions

              	
                5

              
	
                Section
                  1.2

              	
                Index
                  of Other Definitions

              	
                20

              
	
                Section
                  1.3

              	
                Principles
                  of Construction

              	
                23

              
	
                ARTICLE
                  2 GENERAL LOAN TERMS

              	
                23

              
	
                Section
                  2.1

              	
                The
                  Loan

              	
                23

              
	
                Section
                  2.2

              	
                Interest;
                  Monthly Payments

              	
                23

              
	
                Section
                  2.3

              	
                Loan
                  Repayment

              	
                25

              
	
                Section
                  2.4

              	
                Release
                  of Property

              	
                28

              
	
                Section
                  2.5

              	
                Payments
                  and Computations

              	
                28

              
	
                ARTICLE
                  3 CASH MANAGEMENT AND RESERVES

              	
                29

              
	
                Section
                  3.1

              	
                Cash
                  Management Arrangements

              	
                29

              
	
                Section
                  3.2

              	
                Intentionally
                  Omitted

              	
                30

              
	
                Section
                  3.3

              	
                Taxes
                  and Insurance

              	
                30

              
	
                Section
                  3.4

              	
                Capital
                  Expense Reserves

              	
                31

              
	
                Section
                  3.5

              	
                Rollover
                  Reserve

              	
                32

              
	
                Section
                  3.6

              	
                Casualty/Condemnation
                  Subaccount

              	
                34

              
	
                Section
                  3.7

              	
                Security
                  Deposits

              	
                34

              
	
                Section
                  3.8

              	
                Cash
                  Collateral Subaccount

              	
                34

              
	
                Section
                  3.9

              	
                Grant
                  of Security Interest; Application of Funds

              	
                35

              
	
                Section
                  3.10

              	
                Property
                  Cash Flow Allocation

              	
                36

              
	
                ARTICLE
                  4 REPRESENTATIONS AND WARRANTIES

              	
                36

              
	
                Section
                  4.1

              	
                Organization;
                  Special Purpose

              	
                36

              
	
                Section
                  4.2

              	
                Authorization;
                  Valid Execution and Delivery; 

              	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Enforceability

              	
                37

              
	
                Section
                  4.3

              	
                No
                  Conflict/Violation of Law

              	
                37

              
	
                Section
                  4.4

              	
                No
                  Litigation

              	
                37

              
	
                Section
                  4.5

              	
                No
                  Defenses

              	
                37

              
	
                Section
                  4.6

              	
                Title

              	
                38

              
	
                Section
                  4.7

              	
                No
                  Insolvency or Judgment; No Bankruptcy Filing

              	
                38

              
	
                Section
                  4.8

              	
                Misstatements
                  of Fact

              	
                38

              
	
                Section
                  4.9

              	
                Tax
                  Filings

              	
                38

              
	
                Section
                  4.10

              	
                ERISA

              	
                39

              
	
                Section
                  4.11

              	
                Compliance
                  with Applicable Laws and Regulations

              	
                39

              
	
                Section
                  4.12

              	
                Contracts

              	
                40

              
	
                Section
                  4.13

              	
                Federal
                  Reserve Regulations; Investment Company Act

              	
                40

              
	
                Section
                  4.14

              	
                Access/Utilities

              	
                40

              
	
                Section
                  4.15

              	
                Condition
                  of Improvements

              	
                40

              
	
                Section
                  4.16

              	
                Leases

              	
                41

              
	
                Section
                  4.17

              	
                Fraudulent
                  Transfer

              	
                41

              
	
                Section
                  4.18

              	
                Ownership
                  of Borrower

              	
                42

              
	
                Section
                  4.19

              	
                No
                  Purchase Options

              	
                42

              
	
                Section
                  4.20

              	
                Management
                  Agreement

              	
                42

              
	
                Section
                  4.21

              	
                Hazardous
                  Substances

              	
                42

              
	
                Section
                  4.22

              	
                Name;
                  Principal Place of Business

              	
                43

              
	
                Section
                  4.23

              	
                No
                  Other Obligations

              	
                43

              
	
                Section
                  4.24

              	
                Defense
                  of Usury

              	
                43

              
	
                Section
                  4.25

              	
                Intentionally
                  Omitted

              	
                44

              
	
                Section
                  4.26

              	
                Single
                  Tax Lot

              	
                44

              
	
                Section
                  4.27

              	
                Special
                  Assessments

              	
                44

              
	
                Section
                  4.28

              	
                No
                  Condemnation

              	
                44

              
	
                Section
                  4.29

              	
                No
                  Labor or Materialmen Claims

              	
                44

              
	
                Section
                  4.30

              	
                Boundary
                  Lines

              	
                44

              
	
                Section
                  4.31

              	
                Survey

              	
                45

              
	
                Section
                  4.32

              	
                Forfeiture

              	
                45

              
	
                Section
                  4.33

              	
                Borrower
                  Entity Representations

              	
                45

              
	
                ARTICLE
                  5 COVENANTS

              	
                47

              
	
                Section
                  5.1

              	
                Existence

              	
                47

              
	
                Section
                  5.2

              	
                Taxes
                  and Other Charges

              	
                47

              
	
                Section
                  5.3

              	
                Access
                  to Property

              	
                48

              
	
                Section
                  5.4

              	
                Repairs;
                  Maintenance and Compliance; Alterations

              	
                48

              
	
                Section
                  5.5

              	
                Performance
                  of Other Agreements

              	
                49

              
	
                Section
                  5.6

              	
                Cooperate
                  in Legal Proceedings

              	
                50

              
	
                Section
                  5.7

              	
                Further
                  Assurances

              	
                50

              
	
                Section
                  5.8

              	
                Environmental
                  Matters

              	
                50

              
	
                Section
                  5.9

              	
                Title
                  to the Property

              	
                53

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Section
                  5.10

              	
                Leases

              	
                53

              
	
                Section
                  5.11

              	
                Estoppel
                  Statement

              	
                55

              
	
                Section
                  5.12

              	
                Property
                  Management

              	
                55

              
	
                Section
                  5.13

              	
                Special
                  Purpose Bankruptcy Remote Entity

              	
                56

              
	
                Section
                  5.14

              	
                Assumption
                  in Non-Consolidation Opinion

              	
                56

              
	
                Section
                  5.15

              	
                Change
                  in Business or Operation of Property

              	
                56

              
	
                Section
                  5.16

              	
                Debt
                  Cancellation

              	
                57

              
	
                Section
                  5.17

              	
                Affiliate
                  Transactions

              	
                57

              
	
                Section
                  5.18

              	
                Zoning

              	
                57

              
	
                Section
                  5.19

              	
                No
                  Joint Assessment

              	
                57

              
	
                Section
                  5.20

              	
                Principal
                  Place of Business

              	
                57

              
	
                Section
                  5.21

              	
                Change
                  of Name, Identity or Structure

              	
                57

              
	
                Section
                  5.22

              	
                Indebtedness

              	
                58

              
	
                Section
                  5.23

              	
                Licenses

              	
                58

              
	
                Section
                  5.24

              	
                Compliance
                  with Restrictive Covenants, etc.

              	
                58

              
	
                Section
                  5.25

              	
                ERISA

              	
                58

              
	
                Section
                  5.26

              	
                Transfers

              	
                59

              
	
                Section
                  5.27

              	
                Liens

              	
                68

              
	
                Section
                  5.28

              	
                Dissolution

              	
                68

              
	
                Section
                  5.29

              	
                Expenses

              	
                69

              
	
                Section
                  5.30

              	
                Indemnity

              	
                69

              
	
                Section
                  5.31

              	
                Patriot
                  Act Compliance

              	
                70

              
	
                ARTICLE
                  6 NOTICES AND REPORTING

              	
                71

              
	
                Section
                  6.1

              	
                Notices

              	
                71

              
	
                Section
                  6.2

              	
                Borrower
                  Notices and Deliveries

              	
                73

              
	
                Section
                  6.3

              	
                Financial
                  Reporting

              	
                73

              
	
                ARTICLE
                  7 INSURANCE; CASUALTY; AND CONDEMNATION

              	
                75

              
	
                Section
                  7.1

              	
                Insurance

              	
                75

              
	
                Section
                  7.2

              	
                Casualty

              	
                79

              
	
                Section
                  7.3

              	
                Condemnation

              	
                80

              
	
                Section
                  7.4

              	
                Application
                  of Proceeds or Award

              	
                81

              
	
                ARTICLE
                  8 DEFAULTS

              	
                85

              
	
                Section
                  8.1

              	
                Events
                  of Default

              	
                85

              
	
                Section
                  8.2

              	
                Remedies

              	
                87

              
	
                ARTICLE
                  9 SPECIAL PROVISIONS

              	
                89

              
	
                Section
                  9.1

              	
                Sale
                  of Note and Securitization

              	
                89

              
	
                ARTICLE
                  10 MISCELLANEOUS

              	
                94

              
	
                Section
                  10.1

              	
                Exculpation

              	
                94

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Section
                  10.2

              	
                Brokers
                  and Financial Advisors

              	
                96

              
	
                Section
                  10.3

              	
                Retention
                  of Servicer

              	
                96

              
	
                Section
                  10.4

              	
                Survival

              	
                96

              
	
                Section
                  10.5

              	
                Lender’s
                  Discretion

              	
                97

              
	
                Section
                  10.6

              	
                Governing
                  Law

              	
                97

              
	
                Section
                  10.7

              	
                Modification,
                  Waiver in Writing

              	
                98

              
	
                Section
                  10.8

              	
                Trial
                  by Jury

              	
                98

              
	
                Section
                  10.9

              	
                Headings/Exhibits

              	
                99

              
	
                Section
                  10.10

              	
                Severability

              	
                99

              
	
                Section
                  10.11

              	
                Preferences

              	
                99

              
	
                Section
                  10.12

              	
                Waiver
                  of Notice

              	
                99

              
	
                Section
                  10.13

              	
                Remedies
                  of Borrower

              	
                99

              
	
                Section
                  10.14

              	
                Prior
                  Agreements

              	
                100

              
	
                Section
                  10.15

              	
                Offsets,
                  Counterclaims and Defenses

              	
                100

              
	
                Section
                  10.16

              	
                Publicity

              	
                100

              
	
                Section
                  10.17

              	
                No
                  Usury

              	
                100

              
	
                Section
                  10.18

              	
                Conflict;
                  Construction of Documents

              	
                101

              
	
                Section
                  10.19

              	
                No
                  Third Party Beneficiaries

              	
                101

              
	
                Section
                  10.20

              	
                Yield
                  Maintenance Premium

              	
                101

              
	
                Section
                  10.21

              	
                Assignment

              	
                102

              
	
                Section
                  10.22

              	
                Certain
                  Additional Rights of Lender

              	
                102

              
	
                Section
                  10.23

              	
                Set-Off

              	
                103

              
	
                Section
                  10.24

              	
                Counterparts

              	
                104

              

      

      

      

        Schedule
          1 - Intentionally
          Omitted

        Schedule
          2 - Exceptions
          to Representations and Warranties

        Schedule
          3 - Rent
          Roll

        Schedule
          4 - Organization
          of Borrower

        Schedule
          5 - Definition
          of Special Purpose Bankruptcy Remote Entity

         

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    LOAN
      AGREEMENT

     

    LOAN
      AGREEMENT dated
      as
      of April 19, 2006 (as the same may be modified, supplemented, amended or
      otherwise changed, this “Agreement”)
      between MAGUIRE
      PROPERTIES-PACIFIC CENTER, LLC,
      a
      Delaware limited liability company (together with its permitted successors
      and
      assigns, “Borrower”),
      and
GREENWICH
      CAPITAL FINANCIAL PRODUCTS, INC.,
      a
      Delaware corporation (together with its successors and assigns, “Lender”).

     

    ARTICLE
      1

     

    

     

    DEFINITIONS;
      PRINCIPLES OF CONSTRUCTION

     

    Section
      1.1 Specific
      Definitions

     

    .
      The
      following terms have the meanings set forth below:

     

    Affiliate:
      as
      to any
      Person, any other Person that, directly or indirectly, is in Control of, is
      Controlled by or is under common Control with such Person or is a director
      or
      officer of such Person or of an Affiliate of such Person.

     

    Affiliated
      Manager:
      any
      managing agent of the Property (other than Maguire Property Services, Inc.)
      in
      which Borrower or any Guarantor has, directly or indirectly, any legal,
      beneficial or economic interest.

     

    Approved
      Capital Expenses:
      Capital
      Expenses incurred by Borrower, provided that during a Cash Management Period,
      such Capital Expenses shall either be (i) included in the Approved Annual
      Budget for the current calendar month or (ii) approved by Lender.

     

    Approved
      Leasing Expenses:
      actual
      out-of-pocket expenses incurred by Borrower and payable to third parties that
      are not Affiliates of Borrower or Guarantor in leasing space at the Property
      pursuant to Existing Leases or Leases entered into in accordance with the Loan
      Documents, including brokerage commissions and tenant improvements, which
      expenses (i) are required pursuant to the terms of Existing Leases, (ii)
      with respect to Leases entered into after the date hereof (A) incurred in
      the ordinary course of business and on market terms and conditions in connection
      with Leases which do not require Lender’s approval under the Loan Documents, or
      (B) otherwise approved by Lender, which approval shall not be unreasonably
      withheld or delayed, and (iii) are substantiated by executed Lease
      documents and brokerage agreements.

     

    Approved
      Operating Expenses:
      During
      a
      Cash Management Period, operating expenses incurred by Borrower which
      (i) are included in the Approved Annual Budget for the current calendar
      month, (ii) are for real estate taxes, insurance premiums, electric, gas,
      oil, water, sewer or other utility service to the Property or (iii) have
      been approved by Lender.

     

    Available
      Cash:
      as
      of
      each Payment Date during the continuance of a Cash Management Period, the amount
      of Rents, if any, remaining in the Deposit Account after the application of
      all
      of the payments required under clauses (i) through (vii) of Section
      3.10(a).

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    Business
      Day:
      any
      day
      other than a Saturday, Sunday or any day on which commercial banks in New York,
      New York are authorized or required to close.

     

    Calculation
      Date:
      the
      last day of each calendar quarter during the Term.

     

    Capital
      Expenses:
      expenses
      that are capital in nature or required under GAAP to be
      capitalized.

     

    Cash
      Management Period:
      shall
      commence upon Lender giving notice to the Clearing Bank of the occurrence of
      any
      of the following: (i) the Stated Maturity Date, (ii) a Default or an Event
      of Default, or (iii) if, as of any Calculation Date, the Debt Service
      Coverage Ratio is less than the Minimum DSCR Threshold (a “DSCR
      Cash Management Period”);
      and
      shall end upon Lender giving notice to the Clearing Bank that the sweeping
      of
      funds into the Deposit Account may cease, which notice Lender shall only be
      required to give if (1) the Loan and all other obligations under the Loan
      Documents have been repaid in full or (2) the Stated Maturity Date has not
      occurred and (A) with respect for the matters described in clause (ii) above,
      such Default or Event of Default has been cured and no other Default or Event
      of
      Default has occurred and is continuing, or (B) with respect to the matter
      described in clause (iii) above, either (x) Lender has reasonably determined
      that the Property has achieved a Debt Service Coverage Ratio of at least the
      Minimum DSCR Threshold for two (2) consecutive Calculation Dates, or (y)
      Borrower delivers to Lender either (a) a Letter of Credit (any such Letter
      of Credit, the “DSCR
      Cash Management Letter of Credit Collateral”),
      in an
      amount equal to the Minimum DSCR Maintenance Amount or (b) replacement DSCR
      Cash
      Management Letter of Credit Collateral which increases the outstanding face
      amount of DSCR Cash Management Letter of Credit Collateral previously delivered
      to Lender and being held by Lender in accordance with Section
      3.8.2
      hereof
      by an amount equal to the Minimum DSCR Maintenance Amount (All DSCR Cash
      Management Letter
      of
      Credit Collateral shall be held in accordance with Section
      3.8.2
      hereof.). 

     

    Code:
      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.

     

    Control
      or Controlled:
      with
      respect to any Person, (i) ownership, directly or indirectly, in the aggregate
      of 49% or more of the beneficial ownership interest of such Person or (ii)
      the
      possession, directly or indirectly, of the power to direct or cause the
      direction of the management or policies of such Person, whether through the
      ability to exercise voting power, by contract or otherwise (subject
      only to customary reservations of rights in favor of other partners or members
      to approve the sale and/or refinancing of all or substantially all of the
      entity's assets and other major decisions).

     

    Debt:
      the
      unpaid Principal, all interest accrued and unpaid thereon, any Yield Maintenance
      Premium and all other sums due to Lender in respect of the Loan or under any
      Loan Document.

     

    Debt
      Service:
      with
      respect to any particular period, the scheduled Principal and interest payments
      due under the Note in such period.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

     

    Debt
      Service Coverage Ratio:
      as
      of any
      date, the ratio calculated by Lender of (i) the Net Operating Income for
      the twelve (12)-month period during the Term of the Loan ending with the most
      recently completed calendar month to (ii) the Debt Service with respect to
      such period. In calculating the Debt Service Coverage Ratio solely for purposes
      of determining whether or nor a DSCR Cash Management Period then exists, the
      Debt Service component of such calculation shall be computed as if the
      outstanding Principal amount of the Loan on such Calculation Date was reduced
      by
      an amount equal the aggregate outstanding face amount of all DSCR Cash
      Management Letter of Credit Collateral being held by Lender pursuant to Section
      3.8.2 hereof on the Calculation Date in question.

     

    Default:
      the
      occurrence of any event under any Loan Document which, with the giving of notice
      or passage of time, or both, would be an Event of Default.

     

    Default
      Rate:
      a
      rate
      per annum equal to the lesser of (i) the maximum rate permitted by
      applicable law, or (ii) 5% above the Interest Rate.

     

    Defeasance
      Collateral:
      U.S.
      Obligations, which provide payments (i) on or prior to, but as close as possible
      to, all Payment Dates and other scheduled payment dates, if any, under the
      Note
      after the Defeasance Date and up to and including the Stated Maturity Date,
      and
      (ii) in amounts equal to or greater than the Scheduled Defeasance
      Payments.

     

    Deposit
      Bank:
      Wachovia
      Bank, National Association, a national banking association, or such other bank
      or depository selected by Lender in its discretion.

     

    Eligible
      Account:
      a
      separate and identifiable account from all other accounts held by the holding
      institution that is either (i) an account or accounts (A) maintained with a
      federal or state-chartered depository institution or trust company which
      complies with the definition of Eligible Institution or (B) as to which
      Lender has received a Rating Comfort Letter from each of the applicable Rating
      Agencies with respect to holding funds in such account, 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 similar to Title 12 of
      the
      Code of Federal Regulations §9.10(b), having in either case corporate trust
      powers, acting in its fiduciary capacity, and a combined capital and surplus
      of
      at least $50,000,000 and subject to supervision or examination by federal and
      state authorities. An Eligible Account will not be evidenced by a certificate
      of
      deposit, passbook or other instrument. 

     

    Eligible
      Institution:
      a
      depository institution insured by the Federal Deposit Insurance Corporation
      the
      short term unsecured debt obligations or commercial paper of which are rated
      at
      least A-1 by S&P, P-1 by Moody’s and F-1+ by Fitch in the case of accounts
      in which funds are held for thirty (30) days or less or, in the case of Letters
      of Credit or accounts in which funds are held for more than thirty (30) days,
      the long term unsecured debt obligations of which are rated at least “AA” by
      Fitch and S&P and “Aa2” by Moody’s. Notwithstanding the foregoing, Lender
      acknowledges that Bank of the West (Borrower’s current Clearing Bank) is deemed
      an Eligible Institution.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

     

    Eligibility
      Requirements:
      with
      respect to any Person, that such Person (i) has total assets (in name or
      under management) in excess of $750,000,000 (excluding the Property) and (except
      with respect to a pension advisory firm or similar fiduciary) capital/statutory
      surplus or shareholder’s equity of $300,000,000 (excluding the Property) and
      (ii) is regularly engaged in the business of owning and operating
      commercial real estate properties of the type, size and quality comparable
      to
      the Property.

     

    ERISA:
      the
      Employment Retirement Income Security Act of 1974, as amended from time to
      time,
      and the rules and regulations promulgated thereunder.

     

    ERISA
      Affiliate:
      all
      members of a controlled group of corporations and all trades and business
      (whether or not incorporated) under common control and all other entities which,
      together with Borrower, are treated as a single employer under any or all of
      Section 414(b), (c), (m) or (o) of the Code.

     

    Existing
      Leases:
      Leases
      of the Property or the Improvements existing on the date hereof.

     

    GAAP:
      generally
      accepted accounting principles in the United States of America as of the date
      of
      the applicable financial report or the method used in connection with the
      financial statements of Borrower delivered to Lender in connection with the
      closing of the Loan.

     

    Governmental
      Authority:
      any
      court, board, agency, commission, office or authority of any nature whatsoever
      for any governmental unit (federal, state, county, district, municipal, city
      or
      otherwise) now or hereafter in existence.

     

    Guarantor:
      the
      OP or
      any other guarantor of the Debt.

     

    Interest
      Period:
      (i) the
      period from the date hereof through the first day thereafter that is the
      5th
      day of a
      calendar month and (ii) each period thereafter from the 6th
      day of
      each calendar month through the 5th
      day of
      the following calendar month; except that the Interest Period, if any, that
      would otherwise commence before and end after the Maturity Date shall end on
      the
      Maturity Date. Notwithstanding the foregoing, if Lender exercises its right
      to
      change the Payment Date to a New Payment Date in accordance with Section
      2.2.4
      hereof,
      then from and after such election, each Interest Period shall be the period
      from
      the New Payment Date (as defined under Section 2.2.4) in each calendar month
      through the day in the next succeeding calendar month immediately preceding
      the
      New Payment Date in such calendar month.

     

    Interest
      Rate:
      a
      rate of
      interest equal to 5.7594% per annum (or, when applicable pursuant to the Note
      or
      any other Loan Document, the Default Rate).

     

    Key
      Principal(s):
      the
      OP,
      the REIT and Robert F. Maguire III.

     

    Leases:
      all
      leases and other agreements or arrangements heretofore or hereafter entered
      into
      for the use, enjoyment or occupancy of, or the conduct of any activity upon
      or
      in, the Property or the Improvements, including any guarantees, extensions,
      renewals, modifications or amendments thereof and all additional remainders,
      reversions and other rights and estates appurtenant thereunder. 

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

     

    Lease
      Termination Payments:
      (i) all
      fees, penalties, commissions or other payments made to Borrower in connection
      with or relating to the rejection, buy-out, termination, surrender or
      cancellation of any Lease (including in connection with any bankruptcy
      proceeding), (ii) any security deposits or proceeds of letters of credit held
      by
      Borrower in lieu of cash security deposits, which Borrower is permitted to
      retain pursuant to the applicable provisions of any Lease and (iii) any payments
      made to Borrower relating to unamortized tenant improvements and leasing
      commissions under any Lease.

     

    Letter
      of Credit:
      an
      irrevocable, unconditional, transferable, clean sight draft letter of credit
      acceptable to Lender and the Rating Agencies (either an evergreen letter of
      credit or one which does not expire until at least thirty (30) days after the
      Maturity Date) for which Borrower shall have no reimbursement obligation and
      which reimbursement obligation is not secured by the Property or any other
      property pledged to secure the Note in favor of Lender and entitling Lender
      to
      draw thereon in New York, New York, issued by a domestic Eligible Institution
      or
      the U.S. agency or branch of a foreign Eligible Institution.

     

    Legal
      Requirements:
      statutes,
      laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions
      of Governmental Authorities affecting Borrower, any Loan Document or all or
      part
      of the Property or the construction, ownership, use, alteration or operation
      thereof, whether now or hereafter enacted and in force, and all permits,
      licenses and authorizations and regulations relating thereto, and all covenants,
      agreements, restrictions and encumbrances contained in any instrument, either
      of
      record or known to Borrower, at any time in force affecting all or part of
      the
      Property.

     

    Lien:
      any
      mortgage, deed of trust, lien (statutory or otherwise), pledge, hypothecation,
      easement, restrictive covenant, preference, assignment, security interest or
      any
      other encumbrance, charge or transfer of, or any agreement to enter into or
      create any of the foregoing, on or affecting all or any part of the Property
      or
      any interest therein, or any direct or indirect interest in Borrower, including
      any conditional sale or other title retention agreement, any financing lease
      having substantially the same economic effect as any of the foregoing, the
      filing of any financing statement, and mechanic’s, materialmen’s and other
      similar liens and encumbrances.

     

    Loan
      Documents:
      this
      Agreement and all other documents, agreements and instruments now or hereafter
      evidencing, securing or delivered to Lender in connection with the Loan,
      including the following, each of which is dated as of the date hereof:
      (i) the Promissory Note or Promissory Notes made by Borrowers to Lender in
      the aggregate principal amount equal to the Loan (the “Note”),
      (ii) the Deed of Trust, Assignment of Leases and Rents and Security
      Agreement made by Borrower to a trustee for the benefit of Lender which covers
      the Property (the “Mortgage”),
      (iii) Assignment of Leases and Rents from Borrower to Lender, (iv) the
      Clearing Bank Instruction Letter (the “Clearing
      Account Agreement”)
      among
      Borrower, Lender, Manager and Clearing Bank, (v) the Cash Management
      Agreement (the “Cash
      Management Agreement”)
      among
      Borrower, Lender, Manager and the Deposit Bank, (vi) the Environmental and
      Hazardous Substance Indemnification Agreement, and (vii) the Non-Recourse
      Guaranty made by Guarantor (the “Non-Recourse
      Guaranty”;
      as
      each of the foregoing may be (and each of the foregoing defined terms shall
      refer to such documents as they may be) amended, restated, replaced,
      supplemented or otherwise modified from time to time. 

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

     

    Lockout
      Release Date:
      the
      earlier to occur of (i) the thirty sixth (36th) Payment Date of the Term
      and (ii) the date that is two (2) years from the “startup day” (within the
      meaning of Section 860G(a)(9) of the Code) of the REMIC Trust established in
      connection with the last Securitization involving any portion of the
      Loan.

     

    Management
      Agreement:
      the
      management agreement between Borrower and Manager, pursuant to which Manager
      is
      to manage the Property, as the same may be amended, restated, replaced,
      supplemented or otherwise modified from time to time in accordance with Section
      5.12.

     

    Manager:
      the
      OP or
      any successor, assignee or replacement manager appointed by Borrower in
      accordance with Section 5.12.

     

    Material
      Lease:
      all
      Leases which individually or in the aggregate with respect to the same tenant
      and its Affiliates (i) cover more than the greater of 25,000 square feet of
      the Improvements at an Office Building or a full floor of the Improvements
      at an
      Office Building or (ii) have a gross annual rent of more than 10% of the
      total annual Rents of the Office Buildings or (iii) demise the entirety of
      the
      Parking Garage.

     

    Maturity
      Date:
      the
      date
      on which the final payment of principal of the Note becomes due and payable
      as
      therein provided, whether at the Stated Maturity Date, by declaration of
      acceleration, or otherwise.

     

    Minor
      Lease:
      any
      Lease
      that is not a Material Lease.

     

    Minimum
      DSCR Maintenance Amount:
      as of
      any date, an amount equal to the portion of the then-outstanding Principal
      such
      that the Minimum DSCR Threshold would be maintained on the Loan after repayment
      of such amount, taking into account further reduction of Principal in an amount
      equal to the aggregate outstanding face amount of all DSCR Cash Management
      Letter of Credit Collateral being held by Lender.

     

    Minimum
      DSCR Threshold:
      with
      respect to any Calculation Date, a Debt Service Coverage Ratio of 1.05:1 or
      greater.

     

    Net
      Operating Income:
      for
      any
      period during the Term of the Loan, the actual net operating income of the
      Property determined on a cash basis of accounting, after deducting therefrom
      deposits to (but not withdrawals from) any reserves required under this
      Agreement, and without giving credit for non-recurring extraordinary items
      of
      income. 

     

    Officer’s
      Certificate:
      a
      certificate delivered to Lender by Borrower which is signed by a senior
      executive officer of the REIT.

     

    OP:
      Maguire
      Properties, L.P., a Maryland limited partnership.

     

    Operating
      Agreements:
      any
      covenants, restrictions or agreements of record relating to the construction,
      operation or use of the Property, excluding any Lease.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

     

    Other
      Charges:
      all
      ground rents, maintenance charges, impositions other than Taxes, and any other
      charges, including vault charges and license fees for the use of vaults, chutes
      and similar areas adjoining the Property (other than Taxes), now or hereafter
      levied or assessed or imposed against the Property or any part
      thereof.

     

    Payment
      Date:
      the
      6th
      day of
      each calendar month or, upon Lender’s exercise of its right to change the
      Payment Date in accordance with Section 2.2.4, the New Payment Date (in either
      case, if such day is not a Business Day, the Payment Date shall be the first
      Business Day thereafter). The first Payment Date hereunder shall be June 6,
      2006.

     

    Permitted
      Encumbrances:
      (i) the
      Liens created by the Loan Documents, (ii) all Liens and other matters
      disclosed in the Title Insurance Policy, (iii) Liens, if any, for Taxes or
      Other Charges not yet due and payable and not delinquent, (iv) any
      workers’, mechanics’ or other similar Liens on the Property provided that any
      such Lien is bonded or discharged within 30 days after Borrower first receives
      notice of such Lien, (v) such other title and survey exceptions as Lender
      approves in writing in Lender’s discretion and (vi) Liens incurred in connection
      with Permitted Equipment Financing as set forth in Section 5.22, and (vii)
      Liens
      which constitute a Permitted Transfer.

     

    Permitted
      Fund Manager:
      any
      nationally-recognized manager of investment funds which (i) invests in debt
      or
      equity interests relating to commercial real estate, (ii) invests through a
      fund with committed capital of at least $250,000,000 and (iii) is not the
      subject of a bankruptcy proceeding.

     

    Permitted
      Investment:
      (a) subject
      to the provisions of subparagraph (b) of this definition, any one or more
      of the following obligations or securities acquired at a purchase price of
      not
      greater than par, including those issued by Servicer, the trustee under any
      Securitization or any of their respective affiliates, payable on demand or
      having a maturity date not later than the Business Day immediately prior to
      the
      first Payment Date following the date of acquiring such investment (and in
      no
      event having maturities of more than 365 days) and meeting one of the
      appropriate standards set forth below: (i) obligations of, or obligations
      fully guaranteed as to payment of principal and interest by, the United States
      or any agency or instrumentality thereof provided such obligations are backed
      by
      the full faith and credit of the United States of America including, without
      limitation, obligations of: the U.S. Treasury (all direct or fully guaranteed
      obligations), the Farmers Home Administration (certificates of beneficial
      ownership), the General Services Administration (participation certificates),
      the U.S. Maritime Administration (guaranteed Title XI financing), the Small
      Business Administration (guaranteed participation certificates and guaranteed
      pool certificates), the U.S. Department of Housing and Urban Development (local
      authority bonds) and the Washington Metropolitan Area Transit Authority
      (guaranteed transit bonds); provided,
      however,
      that
      the investments described in this clause must (A) have a predetermined
      fixed dollar of principal due at maturity that cannot vary or change,
      (B) if rated by S&P, must not have an “r” highlighter affixed to their
      rating, (C) if such investments have a variable rate of interest, such
      interest rate must be tied to a single interest rate index plus a fixed spread
      (if any) and must move proportionately with that index, and (D) such
      investments must not be subject to liquidation prior to their maturity;
      (ii) Federal Housing Administration debentures; (iii) obligations of
      the following United States government sponsored agencies: Federal Home Loan
      Mortgage Corp. (debt obligations), the Farm Credit System 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

     

    (consolidated
      system wide bonds and notes), the Federal Home Loan Banks (consolidated debt
      obligations), the Federal National Mortgage Association (debt obligations),
      the
      Financing Corp. (debt obligations), and the Resolution Funding Corp. (debt
      obligations); provided,
      however,
      that
      the investments described in this clause must (A) have a predetermined
      fixed dollar of principal due at maturity that cannot vary or change,
      (B) if rated by S&P, must not have an “r” highlighter affixed to their
      rating, (C) if such investments have a variable rate of interest, such
      interest rate must be tied to a single interest rate index plus a fixed spread
      (if any) and must move proportionately with that index, and (D) such
      investments must not be subject to liquidation prior to their maturity;
      (iv) federal funds, unsecured certificates of deposit, time deposits,
      bankers’ acceptances and repurchase agreements with maturities of not more than
      365 days of any bank, the short term obligations of which at all times are
      rated
      in the highest short term rating category by each Rating Agency (defined herein)
      (or, if not rated by all Rating Agencies, rated by at least one Rating Agency
      in
      the highest short term rating category and otherwise acceptable to each other
      Rating Agency, as confirmed in writing that such investment would not, in and
      of
      itself, result in a downgrade, qualification or withdrawal of the initial,
      or,
      if higher, then current ratings assigned to the Securities issued in connection
      with a Securitization or any class thereof); provided,
      however,
      that
      the investments described in this clause must (A) have a predetermined
      fixed dollar of principal due at maturity that cannot vary or change,
      (B) if rated by S&P, must not have an “r” highlighter affixed to their
      rating, (C) if such investments have a variable rate of interest, such
      interest rate must be tied to a single interest rate index plus a fixed spread
      (if any) and must move proportionately with that index, and (D) such
      investments must not be subject to liquidation prior to their maturity;
      (v) fully Federal Deposit Insurance Corporation insured demand and time
      deposits in, or certificates of deposit of, or bankers’ acceptances issued by,
      any bank or trust company, savings and loan association or savings bank, the
      short term obligations of which at all times are rated in the highest short
      term
      rating category by each Rating Agency (or, if not rated by all Rating Agencies,
      rated by at least one Rating Agency in the highest short term rating category
      and otherwise acceptable to each other Rating Agency, as confirmed in writing
      that such investment would not, in and of itself, result in a downgrade,
      qualification or withdrawal of the initial, or, if higher, then current ratings
      assigned to the Securities or any class thereof); provided,
      however,
      that
      the investments described in this clause must (A) have a predetermined
      fixed dollar of principal due at maturity that cannot vary or change,
      (B) if rated by S&P, must not have an “r” highlighter affixed to their
      rating, (C) if such investments have a variable rate of interest, such
      interest rate must be tied to a single interest rate index plus a fixed spread
      (if any) and must move proportionately with that index, and (D) such
      investments must not be subject to liquidation prior to their maturity;
      (vi) debt obligations with maturities of not more than three hundred
      sixty-five (365) days and at all times rated by each Rating Agency (or, if
      not
      rated by all Rating Agencies, rated by at least one Rating Agency and otherwise
      acceptable to each other Rating Agency, as confirmed in writing that such
      investment would not, in and of itself, result in a downgrade, qualification
      or
      withdrawal of the initial, or, if higher, then current ratings assigned to
      the
      Securities or any class thereof) in its highest long term unsecured rating
      category; provided,
      however,
      that
      the investments described in this clause must (A) have a predetermined
      fixed dollar amount of principal due at maturity that cannot vary or change,
      (B) if rated by S&P, must not have an “r” highlighter affixed to their
      rating, (C) if such investments have a variable rate of interest, such
      interest rate must be tied to a single interest rate index plus a fixed spread
      (if any) and must move proportionately with that index, and (D) such
      investments must not be subject to liquidation prior to their maturity;
      (vii) commercial paper (including both 

     

    
      
        
        

      

      
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    non
      interest bearing discount obligations and interest bearing obligations payable
      on demand or on a specified date not more than one year after the date of
      issuance thereof) with maturities of not more than three hundred sixty-five
      (365) days and that at all times is rated by each Rating Agency (or, if not
      rated by all Rating Agencies, rated by at least one Rating Agency and otherwise
      acceptable to each other Rating Agency, as confirmed in writing that such
      investment would not, in and of itself, result in a downgrade, qualification
      or
      withdrawal of the initial, or, if higher, then current ratings assigned to
      the
      Securities or any class thereof) in its highest short term unsecured debt
      rating; provided,
      however,
      that
      the investments described in this clause must (A) have a predetermined
      fixed dollar of principal due at maturity that cannot vary or change,
      (B) if rated by S&P, must not have an “r” highlighter affixed to their
      rating, (C) if such investments have a variable rate of interest, such
      interest rate must be tied to a single interest rate index plus a fixed spread
      (if any) and must move proportionately with that index, and (D) such
      investments must not be subject to liquidation prior to their maturity; and
      (viii) other security, obligation or investment which has been approved as
      a Permitted Investment in writing by (a) Lender and (b) each Rating
      Agency, as evidenced by a written a Rating Comfort Letter with respect to that
      the designation of such security, obligation or investment as a Permitted
      Investment; provided,
      however,
      that no
      obligation or security shall be a Permitted Investment if (A) such
      obligation or security evidences a right to receive only interest payments
      or
      (B) the right to receive principal and interest payments on such obligation
      or security are derived from an underlying investment that provides a yield
      to
      maturity in excess of one hundred twenty percent (120%) of the yield to maturity
      at par of such underlying investment. Notwithstanding anything to the contrary
      contained herein, the Permitted Investments (i) through (ix) above must have
      a
      Moody’s rating of (a) ”A2 or P-1” if such investment has a maximum maturity
      of one (1) month, (b) ”A1 and P-1” if such investment has a maximum
      maturity of three (3) months, (c) ”Aa3 and P-1” if such investment has a
      maximum maturity of six (6) months and (d) ”AAA and P-1” if such investment
      has a maximum maturity of more than six (6) months.

     

    At
      any
      time when Borrower is not permitted under the Loan Documents to select Permitted
      Investments, “Permitted
      Investments”
shall
      mean any one or more of the following obligations or securities acquired at
      a
      purchase price of not greater than par, including those issued by Servicer
      (defined herein), the trustee under any Securitization or any of their
      respective Affiliates, payable on demand or having a maturity date not later
      than the Business Day immediately prior to the first Payment Date following
      the
      date of acquiring such investment (and in no event having maturities of more
      than 365 days) and meeting one of the appropriate standards set forth below:
      (i) obligations of, or obligations fully guaranteed as to payment of
      principal and interest by, the United States or any Person controlled or
      supervised by and acting as an instrumentality of the United States pursuant
      to
      authority granted by the Congress of the United States provided such obligations
      are backed by the full faith and credit of the United States of America and
      are
      one of the following: obligations of: the U.S. Treasury (all direct or fully
      guaranteed obligations), the General Services Administration (participation
      certificates), the Small Business Administration (guaranteed participation
      certificates and guaranteed pool certificates) or the U.S. Department of Housing
      and Urban Development (local authority bonds); provided,
      however,
      that
      the investments described in this clause must (A) have a predetermined
      fixed dollar of principal due at maturity that cannot vary or change,
      (B) if rated by S&P, must not have an “r” highlighter affixed to their
      rating, (C) if such investments have a variable rate of interest, such
      interest rate must be tied to a single interest rate index plus a fixed spread
      (if any) and must move proportionately with that index, and (D) such
      investments must not be subject to 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

     

    liquidation
      prior to their maturity; (ii) Federal Housing Administration debentures;
      and (iii) obligations of the following United States government sponsored
      agencies: Federal Home Loan Mortgage Corp. (debt obligations), the Farm Credit
      System (consolidated system wide bonds and notes), the Federal Home Loan Banks
      (consolidated debt obligations) and the Federal National Mortgage Association
      (debt obligations); provided,
      however,
      that
      the investments described in this clause must (A) have a predetermined
      fixed dollar of principal due at maturity that cannot vary or change,
      (B) if rated by S&P, must not have an “r” highlighter affixed to their
      rating, (C) if such investments have a variable rate of interest, such
      interest rate must be tied to a single interest rate index plus a fixed spread
      (if any) and must move proportionately with that index, and (D) such
      investments must not be subject to liquidation prior to their maturity;
provided,
      however,
      that no
      obligation or security shall be a Permitted Investment if (A) such
      obligation or security evidences a right to receive only interest payments
      or
      (B) the right to receive principal and interest payments on such obligation
      or security are derived from an underlying investment that provides a yield
      to
      maturity in excess of one hundred twenty percent (120%) of the yield to maturity
      at par of such underlying investment. Notwithstanding anything to the contrary
      contained herein, the Permitted Investments (i) through (ix) above must have
      a
      Moody’s rating of (a) “A2 or P-1” if such investment has a maximum maturity
      of one (1) month, (b) “A1 and P-1” if such investment has a maximum
      maturity of three (3) months, (c) “Aa3 and P-1” if such investment has a
      maximum maturity of six (6) months and (d) “AAA and P-1” if such investment
      has a maximum maturity of more than six (6) months.

     

    Permitted
      REIT Transferee:
      an
      entity that the REIT Controls (within the sense of clause (ii) of the defined
      term “Control”) and directly or indirectly owns at least a 51% interest in, and
      that (i) qualifies as a Special Purpose Bankruptcy Remote Entity in compliance
      with Section 5.13 hereof, and (ii) whose counsel has delivered to Lender a
      non-consolidation opinion acceptable to Lender in its reasonable discretion
      and
      acceptable to the Rating Agencies. 

     

    Permitted
      Transferee:
      for
      purposes of one Transfer and Assumption only, a Qualified Transferee (i) that
      qualifies as a Special Purpose Bankruptcy Remote Entity in compliance with
      Section 5.13 hereof, (ii) whose counsel has delivered to Lender a
      non-consolidation opinion acceptable to Lender and the Rating Agencies in their
      sole discretion, (iii) is an experienced operator and/or owner of office
      properties of similar size, type and income as the Property, as evidenced by
      financial statements and other information reasonably requested by Lender,
      and
      is, or has retained, a Qualified Manager, (iv) is not Controlled by any Person
      that has been a debtor in any Bankruptcy Action (hereinafter defined) in the
      past ten (10) years or has ever been convicted of fraud or any crimes with
      respect to securities or banking laws, and (v) that has not been involved in
      any
      prior disputes with Lender, and is not Controlled by any Person that has not
      been involved in any prior disputes with Lender. As used herein, “Bankruptcy
      Action”
means
      with respect to any Person (a) such Person filing a voluntary petition under
      the
      Bankruptcy Code or any other Federal or state bankruptcy or insolvency law;
      (b)
      the filing of an involuntary petition against such Person under the Bankruptcy
      Code or any other Federal or state bankruptcy or insolvency law, or soliciting
      or causing to be solicited petitioning creditors for any involuntary petition
      against such Person, which is not dismissed within 90 days; (c) such Person
      filing an answer consenting to or otherwise acquiescing in or joining in any
      involuntary petition filed against it, by any other Person under the Bankruptcy
      Code or any other Federal or state bankruptcy or insolvency law, or soliciting
      or causing to be solicited petitioning creditors for any involuntary petition
      from any Person; (d) such Person consenting to or acquiescing in or joining
      

     

    
      
        
        

      

      
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    in
      an
      application for the appointment of a custodian, receiver, trustee, or examiner
      for such Person or any portion of the Property; or (e) such Person making an
      assignment for the benefit of creditors, or admitting, in writing or in any
      legal proceeding, its insolvency or inability to pay its debts as they become
      due.

     

    Person:
      any
      individual, corporation, partnership, limited liability company, joint venture,
      estate, trust, unincorporated association, any other person or entity, and
      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:
      (i) an
      employee benefit or other plan established or maintained by Borrower or any
      ERISA Affiliate or to which Borrower or any ERISA Affiliate makes or is
      obligated to make contributions and (ii) which is covered by Title IV of
      ERISA or Section 302 of ERISA or Section 412 of the Code.

     

    Prescribed
      Laws:
      collectively,
      (i) the Uniting and Strengthening America by Providing Appropriate Tools
      Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56)
      (The USA PATRIOT Act), (ii) Executive Order No. 13224 on Terrorist
      Financing, effective September 24, 2001, and relating to Blocking Property
      and
      Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support
      Terrorism, (iii) the International Emergency Economic Power Act, 50 U.S.C.
§1701 et seq. and (iv) all other legal requirements relating to money
      laundering or terrorism.

     

    Property:
      the
      parcels of real property and Improvements thereon owned by Borrower and
      encumbered by the Mortgage; together with all rights pertaining to such real
      property and Improvements, and all other collateral for the Loan as more
      particularly described in the Granting Clauses of the Mortgage and referred
      to
      therein as the Property. The Property is known as Pacific Center and is located
      at 1455 Frazee Road and 1615 Murray Canyon Road (collectively, the “Office
      Buildings”),
      and
      1585 Murray Canyon Road (the “Parking
      Garage”),
      San
      Diego, California. 

     

    Qualified
      Manager:
      any of
      (a) the OP, (b) an Affiliated Manager, (c) any property manager Controlled
      (within the sense of clause (ii) of the defined term “Control”) by the REIT or
      (d) in the reasonable judgment of Lender, a reputable and experienced management
      company which (i) is a reputable national (or regional) major management
      company having at least five (5) years’ experience in the management of
      commercial properties of comparable quality to the Property, with similar uses
      as the Property and in the jurisdiction in which the Property is located,
      (ii) at the time of its engagement has managed, for at least five (5) years
      prior to its engagement as property manager, at least (5) commercial office
      buildings of comparable quality to the Property, (iii) at the time of its
      engagement as property manager is managing leaseable square footage of office
      buildings of comparable quality to the Property equal to five times the
      leaseable square feet of the Property or such lesser amount as is approved
      by
      the applicable Rating Agencies and (iv) is not the subject of a Bankruptcy
      Action; provided that Borrower
      shall have obtained prior written confirmation from the applicable Rating
      Agencies that management of the Property by such Person will not cause a
      downgrade, withdrawal or qualification of the then current ratings of the
      Securities or any class thereof (provided that no such written confirmation
      from
      the Rating Agencies in connection with such Qualified Manager 

     

    
      
        
        

      

      
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    will
      be
      required in connection with Permitted Transfers under Section 5.26.5 and the
      Transfer and Assumption under Section 5.26.6 not requiring such prior written
      confirmation from the Rating Agencies).

     

    Qualified
      Transferee:

     

    (i) a
      real
      estate investment trust, bank, saving and loan association, investment bank,
      insurance company, trust company, commercial credit corporation, pension plan,
      pension fund or pension advisory firm, mutual fund, government entity or plan,
      provided that any such Person referred to in this clause (i) satisfies the
      Eligibility Requirements;

     

    (ii) an
      investment company, money management firm or “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, as amended,
      or
      an institutional “accredited investor” within the meaning of Regulation D
      under the Securities Act of 1933, as amended, provided that any such Person
      referred to in this clause (ii) satisfies the Eligibility
      Requirements;

     

    (iii) an
      institution substantially similar to any of the foregoing entities described
      in
      clauses (i) or (ii) that satisfies the Eligibility Requirements;

     

    (iv) any
      entity Controlled (which for purposes of this definition means the ownership,
      directly or indirectly, in the aggregate of more than fifty percent (50%) of
      the
      beneficial ownership interests of an entity and the possession, directly or
      indirectly, of the power to direct or cause the direction of the management
      or
      policies of an entity, whether through the ability to exercise voting power,
      by
      contract or otherwise) by any of the entities described in clauses (i) (ii)
      or (iii) above or (v) below; 

     

    (v) an
      investment fund, limited liability company, limited partnership or general
      partnership where a Permitted Fund Manager or an entity that is otherwise a
      Qualified Transferee under clauses (i) (ii), (iii) or (iv) of this definition
      investing through a fund with committed capital of at least $250,000,000 acts
      as
      the general partner, managing member or fund manager and at least 50% of the
      equity interests in such investment vehicle are owned, directly or indirectly,
      by one or more entities that are otherwise Qualified Transferees under clauses
      (i) (ii), (iii) or (iv) of this definition; 

     

    (vi) a
      Person
      (i) with a long-term unsecured debt rating from each of the Rating Agencies
      rating the Securities of at least "investment grade" that (ii) owns, controls
      or
      operates, with its Affiliates, office buildings totaling at least 4,000,000
      square feet of gross leaseable area (exclusive of the Property), has with its
      Affiliates a net worth, as of a date no more than three (3) months prior to
      the
      date of such Transfer; of at least $300 million (exclusive of the Property),
      and
      immediately prior to such Transfer, controls with its Affiliates real
      estate equity assets of at least $750 million (exclusive of the Property);
      or

     

    (vii) Robert
      F.
      Maguire III or a Person Controlled (within the meaning of clauses (i) and (ii)
      of the definition of Control) by Robert F. Maguire III, provided that at the
      time of such Transfer, Robert F. Maguire III has a net worth of at least $200
      million.

     

     

    
      
        
        

      

      
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    Rating
      Agency:
      each
      of
      Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
      Inc. (“S&P”),
      Moody’s Investors Service, Inc. (“Moody’s”),
      and
      Fitch, Inc. (“Fitch”)
      or any
      other nationally recognized statistical rating organization to the extent any
      of
      the foregoing have been engaged by Lender or its designee in connection with
      or
      in anticipation of any Securitization.

     

    Rating
      Comfort Letter:
      a
      letter
      issued by each of the applicable Rating Agencies which confirms that the taking
      of the action referenced to therein will not result in any qualification,
      withdrawal or downgrading of any existing ratings of Securities created in
      a
      Securitization or, if a Securitization has not occurred, any ratings to be
      assigned in connection with a Securitization.

     

    REIT:
      Maguire
      Properties, Inc., a Maryland corporation.

     

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

     

    Rents:
      all
      rents, rent equivalents, moneys payable as damages (including payments by reason
      of the rejection of a Lease in a Bankruptcy Proceeding) or in lieu of rent
      or
      rent equivalents, royalties (including all oil and gas or other mineral
      royalties and bonuses), income, fees, receivables, receipts, revenues, deposits
      (including security, utility and other deposits), accounts, cash, issues,
      profits, charges for services rendered, and other payment and consideration
      of
      whatever form or nature received by or paid to or for the account of or benefit
      of Borrower, Manager or any of their agents or employees from any and all
      sources arising from or attributable to the Property, including, without
      limitation, income related to parking, and the Improvements, including all
      receivables, customer obligations, installment payment obligations and other
      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 the Property or rendering of services by Borrower, Manager or
      any
      of their agents or employees and proceeds, if any, from business interruption
      or
      other loss of income insurance. 

     

    Restricted
      Party:
      (i)
      Borrower, the OP, the Guarantor, or any Affiliated Manager, and (ii) any
shareholder,
      general partner, member, non-member manager, direct or indirect legal or
      beneficial owner of, Borrower, the OP, Guarantor, any Affiliated Manager or
      any
      non-member manager; provided, however, that the term "Restricted Party" shall
      not include any limited partner of the OP, Guarantor, or any Affiliated Manager,
      or any shareholders of the REIT, or any person owning direct or indirect
      interests in or through such limited partners or shareholders.

     

    Sale
      or Pledge:
      a
      voluntary or involuntary sale, conveyance, assignment, transfer, encumbrance
      or
      pledge of a legal or beneficial interest.

     

    Scheduled
      Defeasance Payments:
      the
      Monthly Debt Service Payment Amount required under the Note for all Payment
      Dates occurring after the Defeasance Date (including the outstanding Principal
      balance on the Note as of the Stated Maturity Date).

     

    Security
      Agreement:
      a
      security agreement in form and substance that would be satisfactory to Lender
      (in Lender’s sole but good faith discretion) pursuant to which Borrower

     

    
      
        
        

      

      
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    grants
      Lender a perfected, first priority security interest in the Defeasance
      Collateral Account and the Defeasance Collateral.

     

    Servicer:
      a
      servicer selected by Lender to service the Loan, including any “master servicer”
or “special servicer” appointed under the terms of any pooling and servicing
      agreement or similar agreement entered into as a result of a
      Securitization.

     

    State:
      the
      state
      in which the Premises (as defined in the Mortgage) is located.

     

    Stated
      Maturity Date:
      May 6,
      2016, as such date may be changed in accordance with Section 2.2.4.

     

    Taxable
      REIT Subsidiary:
      a
      taxable REIT subsidiary within the meaning of Section 856(1) of the Code and
      of
      which the OP owns, directly or indirectly, no less than a 51%
      interest.

     

    Taxes:
      all
      real
      estate and personal property taxes, assessments, water rates or sewer rents,
      maintenance charges, impositions, vault charges and license fees, now or
      hereafter levied or assessed or imposed against all or part of the
      Property.

     

    Term:
      the
      entire term of this Agreement, which shall expire upon repayment in full of
      the
      Debt and full performance of each and every obligation to be performed by
      Borrower pursuant to the Loan Documents.

     

    Title
      Insurance Policy:
      the
      ALTA
      mortgagee title insurance policy in the form acceptable to Lender issued with
      respect to the Property and insuring the Lien of the Mortgage.

     

    UCC:
      the
      Uniform Commercial Code as in effect in the state of Delaware or the state
      in
      which any of the Cash Management Accounts are located, as the case may
      be.

     

    U.S.
      Obligations:
      (i)
      direct full faith and credit obligations of (or guaranteed as to timely payment
      by) the United States of America (or any agency or instrumentality of the United
      States of America, to the extent acceptable by the applicable Rating Agencies),
      or the obligations of which are backed by the full faith and credit of the
      United States of America, in each case that are not subject to prepayment,
      call
      or early redemption, (ii) obligations that are “government securities” within
      the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as
      amended, and, (iii) to the extent acceptable to the applicable Rating Agencies,
      other non-callable government securities satisfying the REMIC Provisions
      (hereinafter defined), in each case to the extent such obligations are not
      subject to prepayment, call or early redemption. As used herein, “REMIC
      Provisions”
mean
      provisions
      of the federal income tax law relating to real estate mortgage investment
      conduits, which appear at Sections 860A through 860G of Subchapter M of Chapter
      1 of Subtitle A of the Code, and related provisions, and temporary and final
      regulations and,
      to
      the extent not inconsistent with such temporary and final regulations, proposed
      regulations, and published rulings, notices and announcements promulgated
      thereunder, as the foregoing may be in effect from time to time.

     

    Yield
      Maintenance Premium:
      an
      amount
      equal to the greater of (i) one percent of the outstanding principal
      balance of the Loan at the time of prepayment or (ii) an amount 

     

    
      
        
        

      

      
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    which,
      when added to the outstanding Principal, would be sufficient to purchase U.S.
      Obligations which provide payments (a) on or prior to, but as close as
      possible to, all successive scheduled Payment Dates under this Agreement through
      the Stated Maturity Date and (b) in amounts equal to the Monthly Debt
      Service Payment Amount required under this Agreement through the Stated Maturity
      Date together with the outstanding principal balance of the Note as of the
      Stated Maturity Date assuming all such Monthly Debt Service Payments are made
      (including any servicing costs associated therewith). In no event shall the
      Yield Maintenance Premium be less than zero.

     

    Section
      1.2 Index
      of Other Definitions

     

    .
      The
      following terms are defined in the sections or Loan Documents indicated
      below:

     

    “Approved
      Annual Budget”
-
      6.3.4

    “Annual
      Budget”
-
      6.3.4

    “Applicable
      Taxes”
-
      2.2.3

    “Asbestos”
-
      5.8.2

    “Assignment
      of Leases and Rents”
-
      4.16

    “Award”
-
      7.3.2

    “Bankruptcy
      Proceeding”
-
      4.8

    “Blanket
      Insurance Premium Financing Arrangements”
-
      7.1.4

    “Borrower
      Parties”
-
      10.1

    “Capital
      Reserve Subaccount”
-
      3.4

    “Cash
      Collateral Subaccount”
      -
      3.8.1

    “Cash
      Management Accounts”
-
      3.9

    “Cash
      Management Agreement”
-
      1.1 (Definition
      of Loan Documents)

    “Casualty”
-
      7.2.1

    “Casualty/Condemnation
      Prepayment”
-
      2.3.2

    “Casualty/Condemnation
      Subaccount”
-
      3.6

    “Casualty
      Consultant”
-
      7.4.1(e)

    “Casualty
      Restoration”
-
      7.2.1

    “Casualty
      Retainage”
-
      7.4.1(b)

    “Clearing
      Account”
      --
3.1

    “Clearing
      Account Agreement”
-
      1.1 (Definition
      of Loan Documents)

    “Clearing
      Bank”
-
      3.1

    “Condemnation”
-
      7.3.1

    “Condemnation
      Proceeds”
-
      7.4.1

    “Condemnation
      Restoration”
-
      7.3.1

    “Defeasance
      Collateral Account”
-
      2.3.3

    “Defeasance
      Event”
-
      2.3.3

    “Defeasance
      Date”
-
      2.3.3

    “Delinquency
      Date”
-
      5.2

    “Deposit
      Account”
-
      3.1

    “Disclosure
      Document”
-
      9.1.2

    “DSCR
      Cash Management Letter of Credit Collateral”
-
      1.1
      (Definition of Cash Management Period)

    “Eligible
      Account”
-
      Cash
      Management Agreement

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    “Endorsement”
-
      5.26.b(c)(iv)

    “Environmental
      Laws”
-
      4.21

    “Equipment”
-
      Mortgage

    “Event
      of Default”
-
      8.1

    “Exchange
      Act”
-
      9.1.2

    “Excluded
      Costs”
      -
      5.4.2

    “Financing
      Installment”
-
      7.1.4

    “Fitch”
-
      1.1 (Definition
      of Rating Agency)

    “Full
      Replacement Cost”
-
      7.1.1(j)

    “Full
      Coverage”
-
      7.1.1(a)

    “Government
      Lists”
      -
      5.30

    “Hazardous
      Substances”
-
      4.21

    “Improvements”
-
      Mortgage

    “Indemnified
      Liabilities”
-
      5.30

    “Indemnified
      Party”
-
      5.30

    “Indemnified
      Group”
-
      9.1.3

    “Independent
      Director”
-
      Schedule 5

    “Initial
      Rollover Deposit”
      -
      3.5.1

    “Insurance
      Premiums”
-
      7.1.3

    “Insurance
      Proceeds”
-
      7.4.1

    “Insured
      Casualty”
-
      7.2.2

    “Investor”
-
      9.1.1

    “Late
      Payment Charge”
-
      2.5.3

    “Lender’s
      Consultant”
-
      5.8.1

    “Liabilities”
-
      9.1.3

    “Licenses”
-
      4.11

    “Loan”
-
      2.1

    “Monthly
      Debt Service Payment Amount”
-
      2.2.1

    “Moody’s”
-
      1.1
      (Definition of Rating Agency)

    “Mortgage”
-
      1.1 (Definition
      of Loan Documents)

    “Net
      Proceeds”
-
      7.4(b)

    “New
      Payment Date”
-
      2.2.4

    “Non-Recourse
      Guaranty”
      - 1.1
      (Definition of Loan Documents)

    “Note”
      - 1.1
      (Definition of Loan Documents)

    “Notice”
-
      6.1

    “OFAC”
      -
      5.30

    “Office
      Buildings”
      1.1
      (Definition of Property)

    “Parent”
-
      9.1.1(a)

    “Parking
      Garage”
      1.1
      (Definition of Property)

    “Patriot
      Act”
      -
      5.30

    “Patriot
      Act Offense”
      -
      5.30

    “Permitted
      Indebtedness”
-
      5.22

    “Permitted
      Prepayment Date”
      -
2.3.4

    “Phase
      I Reports”
-
      4.21

    “Policies”
      or
“Policy”
-
      7.1.2

    “Principal”
-
      2.1

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    “Proceeds”
-
      7.2.2

    “Provided
      Information”
-
      9.1.1

    “Public
      Releases: - 10.16

    “Registration
      Statement”
-
      9.1.3

    “Related
      Party”
      or
“Related
      Parties
      -
      4.33(d)

    “Remedial
      Work”
-
      5.8.3

    “Rent
      Roll”
-
      4.16

    “Restoration”
-
      7.3.1

    “Rollover
      Reserve Subaccount”
      -
      3.5.1

    “S&P”
-
      1.1 (Definition
      of Rating Agency)

     “Securities”
-
      9.1.1

    “Securities
      Act”
-
      9.1.2

    “Securitization”
-
      9.1.1

    “Securitization
      Information
      -
      9.1.3(b)

    “Security
      Deposit Account”
-
      3.7

    “Security
      Deposit Subaccount”
-
      3.7

    “Significant
      Casualty”
-
      7.2.2

    “Special
      Purpose Bankruptcy Remote Entity”
-
      5.13

    “Subaccounts”
-
      3.1

    “Subordination
      of Management Agreement”
-
      5.12.1

    “Successor
      Borrower”
-
      2.3.3

    “Survey”
-
      4.31

     “Tax
      and Insurance Impound Fund”
-
      3.3

    “Tax
      and Insurance Subaccount”
-
      3.3

    “Tenant
      Estoppels”
-
      4.16

    “Terrorism
      Acts”
-
      7.1.1(j)

    “Threshold
      Amount”
-
      5.4.2

    “Toxic
      Mold”
-
      4.21

    “Transfer”
-
      5.26.3

    “Transfer
      and Assumption”
-
      5.26.6(a)

    “Transferee
      Borrower”
-
      5.26.6(a)

     

    Section
      1.3 Principles
      of Construction

     

    .
      Unless
      otherwise specified, (i) all references to sections and schedules are to
      those in this Agreement, (ii) the words “hereof,” “herein” and “hereunder”
and words of similar import refer to this Agreement as a whole and not to any
      particular provision, (iii) all definitions are equally applicable to the
      singular and plural forms of the terms defined, (iv) the word “including”
means “including but not limited to,” and (v) accounting terms not
      specifically defined herein shall be construed in accordance with GAAP. To
      the
      extent that the definition of Net Operating Income deviates from GAAP, the
      definitions of such terms contained herein shall govern.

     

    ARTICLE
      2

     

    

     

    GENERAL
      LOAN TERMS

     

    Section
      2.1 The
      Loan

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

     

    .
      Lender
      is making a loan (the “Loan”)
      to
      Borrower on the date hereof, in the original principal amount (the “Principal”)
      of
      $121,200,000.00 which shall mature on the Stated Maturity Date. Borrower
      acknowledges receipt of the Loan, the proceeds of which are being and shall
      be
      used to (i) return capital to direct and indirect owners of Borrower used to
      acquire the Property, (ii) fund certain of the Subaccounts, and
      (iii) pay transaction costs. Any excess proceeds may be used for any lawful
      purpose. No amount repaid in respect of the Loan may be reborrowed.

     

    Section
      2.2 Interest;
      Monthly Payments

     

    .

     

    2.2.1 Generally.
      From
      and after the date hereof, interest on the unpaid Principal shall accrue at
      the
      Interest Rate and be payable as hereinafter provided. On the date hereof,
      Borrower shall pay interest on the unpaid Principal from the date hereof through
      and including May 5, 2006. On June 6, 2006 and each Payment Date thereafter
      through and including the Maturity Date, the interest on the Principal at the
      Interest Rate shall be payable in monthly installments (each such installment,
      the “Monthly
      Debt Service Payment Amount”).
      The
      Monthly Debt Service Payment Amount due on any Payment Date shall be applied
      to
      the payment of interest accrued during the preceding Interest Period. All
      accrued and unpaid interest shall be due and payable on the Maturity Date.
      If
      the Loan is repaid on any date other than on a Payment Date (whether prior
      to or
      after the Stated Maturity Date), Borrower shall also pay interest that would
      have accrued on such repaid Principal to but not including the next Payment
      Date.

     

    2.2.2 Default
      Rate.
      After
      the occurrence and during the continuance of an Event of Default, the entire
      unpaid Debt shall bear interest at the Default Rate, and shall be payable,
      to
      the extent permitted by applicable law, within ten (10) days after the date
      Lender makes written demand therefor.

     

    2.2.3 Taxes.
      Any and
      all payments by Borrower hereunder and under the other Loan Documents shall
      be
      made free and clear of and without deduction for any and all present or future
      taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
      with respect thereto, excluding taxes imposed on Lender’s income, and franchise
      and other similar taxes imposed on Lender by the law or regulation of any
      Governmental Authority (all such non-excluded taxes, levies, imposts,
      deductions, charges, withholdings and liabilities being hereinafter referred
      to
      in this Section 2.2.3 as “Applicable
      Taxes”).
      If
      Borrower shall be required by law to deduct any Applicable Taxes from or in
      respect of any sum payable hereunder to Lender, the following shall apply:
      (i) the sum payable shall be increased as may be necessary so that after
      making all required deductions (including deductions applicable to additional
      sums payable under this Section 2.2.3), Lender receives an amount equal to
      the
      sum it would have received had no such deductions been made, (ii) Borrower
      shall make such deductions and (iii) Borrower shall pay the full amount
      deducted to the relevant taxation authority or other authority in accordance
      with applicable law. Payments pursuant to this Section 2.2.3 shall be made
      within ten (10) days after the date Lender makes written demand therefor.
      Notwithstanding the foregoing, if the Loan is transferred to a transferee which
      is organized under the laws of any jurisdiction other than the United States
      of
      America or any state thereof, the transferor shall cause such transferee,
      concurrently with the effectiveness of such transfer, to 

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

     

    furnish
      to the transferor and Borrower either a United States Internal Revenue Service
      Form W-8BEN, United States Internal Revenue Service Form W-8ECI or United States
      Internal Revenue Service Form W-8IMY (wherein such transferee claims entitlement
      to complete exemption from United States federal withholding tax on all interest
      payments hereunder); provided, however, that in the event that the transferor
      fails to cause the transferee to furnish either such Form, Borrower shall deduct
      any Applicable Taxes to the extent required by law and payments shall be made
      net of any Applicable Taxes without regard to the provisions of clause (i)
      of the second sentence of this Section 2.2.3.

     

    2.2.4 New
      Payment Date.
      Lender
      shall have the right, to be exercised not more than once during the term of
      the
      Loan, to change the Payment Date to a date later than the sixth day of each
      month (a “New
      Payment Date”),
      on 30
      days’ written notice to Borrower; provided,
      however,
      that
      any such change in the Payment Date: (i) shall not modify the amount of
      regularly scheduled monthly principal (if any) and interest payments, except
      that the first payment of principal (if any) and interest payable on the New
      Payment Date shall be accompanied by interest at the interest rate herein
      provided for the period from the Payment Date in the month in which the New
      Payment Date first occurs to the New Payment Date, and (ii) shall extend
      the Stated Maturity Date to the New Payment Date occurring in the month set
      forth in the definition of Stated Maturity Date.

     

    Section
      2.3 Loan
      Repayment

     

    .

     

    2.3.1 Repayment.
      Borrower shall repay the entire outstanding principal balance of the Note in
      full on the Maturity Date, together with interest thereon to (but excluding)
      the
      date of repayment and any other amounts due and owing under the Loan Documents.
      Borrower shall have no right to prepay or defease all or any portion of the
      Principal except in accordance with Section 2.3.2, Section 2.3.3 and Section
      2.4
      below. Except during the continuance of an Event of Default, all proceeds of
      any
      repayment, including any prepayments of the Loan, shall be applied by Lender
      as
      follows in the following order of priority: First,
      accrued
      and unpaid interest at the Interest Rate; second,
      to
      Principal; and third,
      to and
      any other amounts then due and owing under the Loan Documents. If prior to
      the
      Stated Maturity Date the Debt is accelerated by reason of an Event of Default,
      then Lender shall be entitled to receive, in addition to the unpaid Principal
      and accrued interest and other sums due under the Loan Documents, an amount
      equal to the Yield Maintenance Premium applicable to such Principal so
      accelerated. During the continuance of an Event of Default, all proceeds of
      repayment, including any payment or recovery on the Property (whether through
      foreclosure, deed-in-lieu of foreclosure, or otherwise) shall, unless otherwise
      provided in the Loan Documents, be applied in such order and in such manner
      as
      Lender shall elect in Lender’s discretion.

     

    2.3.2 Mandatory
      Prepayments.
      The
      Loan is subject to mandatory prepayment in certain instances of Insured Casualty
      or Condemnation (each, a “Casualty/Condemnation
      Prepayment”),
      in
      the manner and to the extent set forth in Section 7.4.2. Each
      Casualty/Condemnation Prepayment, after deducting Lender’s costs and expenses
      (including reasonable attorneys’ fees and expenses) in connection with the
      settlement or collection of the Proceeds or Award, shall be applied in the
      same
      manner as repayments under Section 2.3.1, and 

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

     

    if
      such
      Casualty/Condemnation Payment is made on any date other than a Payment Date,
      then such Casualty/Condemnation Payment shall include interest that would have
      accrued on the Principal prepaid to but not including the next Payment Date.
      Provided that no Event of Default is continuing, any such mandatory prepayment
      under this Section 2.3.2 shall be without the payment of the Yield Maintenance
      Premium. Notwithstanding anything to the contrary contained herein, each
      Casualty/Condemnation Prepayment shall be applied in inverse order of maturity
      and shall not extend or postpone the due dates of the monthly installments
      due
      under the Note or this Agreement.

     

    2.3.3 Defeasance

     

    (a) Conditions
      to Defeasance.
      Provided no Event of Default shall be continuing, Borrower shall have the right
      on any Payment Date after the Lockout Release Date
      and
      prior to the Permitted Prepayment Date to voluntarily defease the
      entire amount of the Principal and obtain a release of the Lien of the Mortgage
      and a release of Borrower’s and Guarantor’s obligations under the other Loan
      Documents (other than (i) those obligations which are expressly stated to
      survive the payment in full of the Loan and (ii) the Security Agreement) by
      providing Lender with the Defeasance Collateral (a “Defeasance
      Event”),
      subject to the satisfaction of the following conditions precedent:

     

    (1) Borrower
      shall give Lender not less than thirty (30) days prior written notice
      specifying a Payment Date (the “Defeasance
      Date”)
      on
      which the Defeasance Event is expected to occur.

     

    (2) Borrower
      shall pay to Lender (A) all payments of interest due on the Loan to and
      including the Defeasance Date and (B) all other sums then due under the Note,
      this Agreement and the other Loan Documents;

     

    (3) Borrower
      shall deposit the Defeasance Collateral into the Defeasance Collateral Account
      and otherwise comply with the provisions of subsections (b) and (c) of this
      Section 2.3.3;

     

    (4) Borrower
      shall execute and deliver to Lender a Security Agreement in respect of the
      Defeasance Collateral Account and the Defeasance Collateral;

     

    (5) Borrower
      shall deliver to Lender an opinion of counsel for Borrower that is standard
      in
      commercial lending transactions and subject only to customary qualifications,
      assumptions and exceptions opining to the effect that, among other things,
      that
      (i) Lender has a legal and valid perfected security interest in the
      Defeasance Collateral Account and the Defeasance Collateral, (ii) if a
      securitization has occurred, the REMIC Trust formed pursuant to such
      securitization will not fail to maintain its status as a “real estate mortgage
      investment conduit” within the meaning of Section 860D of the Code solely
      as a result of a Defeasance Event pursuant to this Section 2.3.3,
      (iii) the Defeasance Event will not result in a significant modification
      and will not be an exchange of the Note for purposes of Section 1001 of the
      Code
      and the Treasury Regulations thereunder, (iv) delivery of the Defeasance
      Collateral and the grant of a security interest therein to Lender shall not
      constitute an avoidable preference under 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

     

    Section 547
      of the Bankruptcy Code or applicable state law and (v) a non-consolidation
      opinion with respect to the Successor Borrower (if any);

     

    (6) Borrower
      shall deliver to Lender and the Rating Agencies a Rating Comfort Letter as
      to
      the Defeasance Event;

     

    (7) Borrower
      shall deliver an Officer’s Certificate certifying that the requirements set
      forth in this Section 2.3.3 have been satisfied;

     

    (8) Borrower
      shall deliver an agreed upon procedures letter from a “big four” or other
      nationally recognized public accounting firm that would be acceptable to a
      prudent lender (or any other accounting firm that is reputable and experienced
      in preparing such procedure letters and reports and would be reasonably
      acceptable to a prudent lender) verifying that the Defeasance Collateral will
      generate monthly amounts equal to or greater than the Scheduled Defeasance
      Payments, (ii) the revenue from the Defeasance Collateral will be applied within
      four months of receipt towards payments of Debt Service, (iii) the securities
      that comprise the Defeasance Collateral are not subject to prepayment, call
      or
      early redemption and (iv) the interest income to Borrower (or the Successor
      Borrower, if applicable) from the Defeasance Collateral will not in any tax
      year
      materially exceed the interest expense associated with the defeased
      Loan;

     

    (9) Borrower
      shall deliver such other certificates, opinions, documents and instruments
      as a
      prudent lender may reasonably request; and

     

    (10) Borrower
      shall pay all costs and expenses of Lender incurred in connection with the
      Defeasance Event, including Lender’s reasonable attorneys’ fees and expenses and
      Rating Agency fees and expenses.

     

    (b) Defeasance
      Collateral Account.
      On
      or
      before the date on which Borrower delivers the Defeasance Collateral, Borrower
      shall open at any Eligible Institution the defeasance
      collateral account (the “Defeasance
      Collateral Account”)
      which
      shall at all times be an Eligible Account. The Defeasance Collateral Account
      shall contain only (i) Defeasance Collateral, and (ii) cash from interest and
      principal paid on the Defeasance Collateral. All cash from interest and
      principal payments paid on the Defeasance Collateral shall be paid over to
      Lender on each Payment Date and applied first to accrued and unpaid interest
      and
      then to
      Principal. Any cash from interest and principal paid on the Defeasance
      Collateral not needed to pay accrued and unpaid interest or Principal shall
      be
      retained in the Defeasance Collateral Account as additional collateral for
      the
      Loan. Borrower shall cause the Eligible Institution at which the Defeasance
      Collateral is deposited to enter an agreement with Borrower and Lender,
      satisfactory to Lender in its sole discretion, pursuant to which such Eligible
      Institution shall agree to hold and distribute the Defeasance Collateral in
      accordance with this Agreement. The Borrower or the Successor Borrower shall
      be
      the owner of the Defeasance Collateral Account and shall report all income
      accrued on Defeasance Collateral for federal, state and local income tax
      purposes in its income tax return to the extent required by law. Borrower shall
      pay all costs and expenses associated with opening and maintaining the
      Defeasance Collateral Account. Neither Borrower (provided that a Successor
      Borrower has assumed the Loan) nor Lender shall in any way be liable by reason
      of any insufficiency in the Defeasance Collateral Account.

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

     

    (c) Successor
      Borrower.
      In
      connection with a Defeasance Event under this Section 2.3.3, Borrower
      shall, if required by the Rating Agencies or if Borrower elects to do so,
      establish or designate a successor entity (the “Successor
      Borrower”)
      which
      shall be a Single Purpose Bankruptcy Remote Entity and which shall be approved
      by the Rating Agencies. Any such Successor Borrower may, at Borrower’s option,
      be an Affiliate of Borrower unless the Rating Agencies shall require otherwise.
      Borrower shall transfer and assign all obligations, rights and
      duties under
      and
      to the Note, together with the Defeasance Collateral
      to such
      Successor Borrower. Such Successor Borrower shall assume the obligations under
      the Note and the Security Agreement and Borrower shall be relieved of its
      obligations under the Debt and the Loan Documents (other than those obligations
      which are expressly stated to survive the payment in full of the Loan). Borrower
      shall pay a minimum of $1,000 to any such Successor Borrower as consideration
      for assuming
      the obligations under the Note and the Security Agreement
      (unless such requirement shall be waived by the applicable Rating Agencies).
      Borrower shall pay all costs and expenses
      incurred by Lender, including Lender’s attorney’s fees and expenses, incurred in
      connection therewith.

     

    2.3.4 Optional
      Prepayments.
      From
      and after the third Payment Date prior to the Stated Maturity Date (the
“Permitted
      Prepayment Date”),
      Borrower shall have the right to prepay the Principal in whole but not in part,
      provided that Borrower gives Lender at least 15 days’ prior written notice
      thereof. If any such prepayment is not made on a Payment Date, Borrower shall
      also pay interest that would have accrued on such prepaid Principal to, but
      not
      including, the next Payment Date. Any such prepayment shall be made without
      payment of the Yield Maintenance Premium.

     

    2.3.5 Prepayments
      After Default.
      If
      after the occurrence and during the continuance of an Event of Default, payment
      of all or any part of the principal of the Loan is tendered by Borrower, a
      purchaser at foreclosure or any other Person, such tender shall be deemed an
      attempt to circumvent the prohibition against prepayment set forth in Section
      2.3.1 and Borrower, such purchaser at foreclosure or other Person shall pay
      the
      Yield Maintenance Premium, in addition to the outstanding principal balance,
      all
      accrued and unpaid interest and other amounts payable under the Loan
      Documents.

     

    Section
      2.4 Release
      of Property

     

    .

     

    2.4.1 Release
      on Defeasance.
      If
      Borrower has elected to defease the Note and the requirements of Section 2.3.3
      and this Section 2.4 have been satisfied, the Property shall be released
      from the Lien of the Mortgage and the other Loan Documents, and the Defeasance
      Collateral pledged pursuant to the Security Agreement shall be the sole source
      of collateral securing the Note. In connection with the release of the Lien,
      Borrower shall submit to Lender, not less than fifteen (15) days prior to the
      Defeasance Date (or such shorter time as is acceptable to Lender in its sole
      discretion), release of Lien (and related Loan Documents) for execution by
      Lender. Such release shall be in a form appropriate in the jurisdiction in
      which
      the Property is located. In addition, Borrower shall provide all other
      documentation as a prudent lender would reasonably require to be delivered
      by
      Borrower in connection with such release, together with an Officer’s Certificate
      certifying that such documentation (i) is in compliance with all Legal 

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

     

    Requirements,
      and (ii) will effect such release in accordance with the terms of this
      Agreement. Borrower shall pay all costs, taxes and expenses associated with
      the
      release of the Lien of the Mortgage and the other Loan Documents, including
      Lender’s reasonable attorneys’ fees.

     

    2.4.2 Release
      on Payment in Full.
      Lender
      shall, upon the written request and at the expense of Borrower, upon payment
      in
      full of the Debt in accordance herewith, release or, if requested by Borrower,
      assign to Borrower’s designee (without any representation or warranty by and
      without any recourse against Lender whatsoever), the Lien of the Loan Documents
      if not theretofore released.

     

    Section
      2.5 Payments
      and Computations

     

    .

     

    2.5.1 Making
      of Payments.
      Each
      payment by Borrower shall be made in funds settled through the New York Clearing
      House Interbank Payments System or other funds immediately available to Lender
      by 4:00 p.m., New York City time, on the date such payment is due, to Lender
      by
      deposit to such account as Lender may designate by written notice to Borrower.
      Whenever any such payment shall be stated to be due on a day that is not a
      Business Day, such payment shall be made on the first Business Day thereafter.
      All such payments shall be made irrespective of, and without any deduction,
      set-off or counterclaim whatsoever and are payable without relief from valuation
      and appraisement laws and with all costs and charges incurred in the collection
      or enforcement thereof, including attorneys’ fees and court costs.

     

    2.5.2 Computations.
      Interest payable under the Loan Documents shall be computed on the basis of
      the
      actual number of days elapsed over a 360-day year.

     

    2.5.3 Late
      Payment Charge.
      If any
      Principal, interest or other sum due under any Loan Document is not paid by
      Borrower on the date on which it is due, Borrower shall pay to Lender (within
      ten (10) days after the date Lender makes written demand therefor) an amount
      equal to the lesser of 5% of such unpaid sum or the maximum amount permitted
      by
      applicable law (the “Late
      Payment Charge”),
      in
      order to defray the expense incurred by Lender in handling and processing such
      delinquent payment and to compensate Lender for the loss of the use of such
      delinquent payment. Such amount shall be secured by the Loan
      Documents. 

     

    ARTICLE
      3

     

    

     

    CASH
      MANAGEMENT AND RESERVES

     

    Section
      3.1 Cash
      Management Arrangements

     

    .
      Borrower shall cause all Rents to be transmitted directly by non-residential
      tenants of the Property into an Eligible Account (the “Clearing
      Account”)
      maintained by Borrower at a local bank selected by Borrower, which shall at
      all
      times be an Eligible Institution (the “Clearing
      Bank”)
      as
      more fully described in the Clearing Account Agreement. Without in any way
      limiting the foregoing, all Rents received by Borrower or Manager shall be
      deposited into the Clearing Account within one Business Day of receipt. Funds
      deposited into the Clearing Account shall be swept by the Clearing Bank on
      a
      daily basis into the Borrower’s operating 

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

     

    account
      at the Clearing Bank, unless a Cash Management Period is continuing, in which
      event such funds shall be swept on a daily basis into an Eligible Account at
      the
      Deposit Bank controlled by Lender (the “Deposit
      Account”)
      and
      applied and disbursed in accordance with this Agreement. Funds in the Deposit
      Account shall be invested at Lender’s discretion only in Permitted Investments.
      Lender will also establish subaccounts of the Deposit Account which shall at
      all
      times be Eligible Accounts (and may be ledger or book entry accounts and not
      actual accounts) (such subaccounts are referred to herein as “Subaccounts”).
      The
      Deposit Account and any Subaccount will be under the sole control and dominion
      of Lender, and Borrower shall have no right of withdrawal therefrom. Borrower
      shall pay for all expenses of opening and maintaining all of the above
      accounts.

     

    Section
      3.2 Intentionally
      Omitted

     

    .

     

    Section
      3.3 Taxes
      and Insurance

     

    .
      Borrower shall pay to Lender (i) on each Payment Date, one-twelfth of the
      Taxes that Lender estimates will be payable during the next ensuing twelve
      (12)
      months in order to accumulate with Lender sufficient funds to pay all such
      Taxes
      at least thirty (30) days prior to their Delinquency Date, and
      (ii) (1) for so long as the applicable Blanket Insurance Premium
      Financing Arrangement remains in full force and effect, on each Payment Date,
      the Financing Installment for the next occurring payment under the applicable
      Blanket Insurance Premium Financing Arrangement and/or (2) with respect to
      any Insurance Premiums not covered by a Blanket Insurance Premium Financing
      Arrangement, on each Payment Date, one-twelfth of the Insurance Premiums that
      Lender estimates will be payable for the renewal of the coverage afforded by
      the
      Policies upon the expiration thereof in order to accumulate with Lender
      sufficient funds to pay all such Insurance Premiums at least thirty (30) days
      prior to the expiration of the Policies (said amounts in (i) and (ii) above
      hereinafter called the “Tax
      and Insurance Impound Fund”).
      Such
      amounts will be transferred by Lender to a Subaccount (the “Tax
      and Insurance Subaccount”).
      Lender will apply the Tax and Insurance Impound Fund to payments of Taxes and
      Insurance Premiums required to be made by Borrower pursuant to Sections 5.2
      and
      7.1 hereof and/or to payments due to the applicable finance company under the
      applicable Blanket Insurance Premium Financing Arrangement, as applicable.
      In
      making any payment relating to the Tax and Insurance Impound Fund, Lender may
      do
      so according to any bill, statement or estimate procured from the appropriate
      public office (with respect to Taxes) or insurer or agent (with respect to
      Insurance Premiums), 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. If the amount of the Tax and Insurance Impound
      Fund shall exceed the amounts due for Taxes and Insurance Premiums pursuant
      to
      Sections 5.2 and 7.1 hereof, Lender shall, in its sole discretion, return any
      excess to Borrower or credit such excess against future payments to be made
      to
      the Tax and Insurance Impound Fund. In allocating such excess, Lender may deal
      with the person shown on the records of Lender to be the owner of the Property.
      If at any time Lender determines that the Tax and Insurance Impound Fund is
      not
      or will not be sufficient to pay the items set forth in (i) and (ii) above,
      Lender shall notify Borrower of such determination and Borrower shall increase
      its monthly payments to Lender by the amount that Lender estimates is sufficient
      to make up the deficiency at least thirty (30) days prior to delinquency of
      the
      Taxes 

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

     

    and/or
      expiration of the Policies, as the case may be. All earnings of interest on
      the
      Tax and Insurance Impound Fund shall become part of the Tax and Insurance
      Impound Fund and shall be disbursed in accordance with this Section 3.3. If
      Lender so elects at any time, Borrower shall provide, at Borrower’s expense, a
      tax service contract for the Term issued by a tax reporting agency acceptable
      to
      Lender. If Lender does not so elect, Borrower shall reimburse Lender for the
      cost of making annual tax searches throughout the Term.

     

    Section
      3.4 Capital
      Expense Reserves

     

    .
      On the
      date hereof, Borrower shall deposit with Lender $5,000,000. Lender will transfer
      such amount into a Subaccount (the “Capital
      Reserve Subaccount”).
      In
      addition to the foregoing, Borrower shall pay to Lender on each Payment Date
      an
      amount initially equal to $9,145 (one-twelfth (1/12th)
      of the
      product obtained by multiplying $0.25 by the aggregate number of rentable square
      feet of space in the Property) for deposit into the Capital Reserve Subaccount;
      provided,
      however,
      Borrower shall only be obligated to make such monthly payment on any Payment
      Date on which the aggregate amount then on deposit in the Capital Reserve
      Subaccount is below $500,000. Additionally, upon thirty (30) days’ prior notice
      to Borrower, Lender may reassess the amount of the monthly payment required
      under this Section 3.4 from time to time in its reasonable discretion
      (based upon its then current underwriting standards). Provided that no Event
      of
      Default is continuing, Lender shall disburse funds held in the Capital Reserve
      Subaccount to Borrower, within fifteen (15) days after the delivery by Borrower
      to Lender of a request therefor (but not more often than once per month), in
      increments of at least $5,000 provided that (i) such disbursement is for an
      Approved Capital Expense; (ii) with respect to disbursements in excess of
      $100,000, Lender shall have (if it desires) verified (by an inspection conducted
      at Borrower’s expense) performance of the work associated with such Approved
      Capital Expense; and (iii) the request for disbursement is accompanied by
      (A) an Officer’s Certificate certifying (1) that such funds will be
      used to pay or reimburse Borrower for Approved Capital Expenses and a
      description thereof, (2) that all outstanding trade payables (other than
      those to be paid from the requested disbursement or those constituting Permitted
      Indebtedness) have been paid in full, (3) that the same has not been
      the subject of a previous disbursement, and (4) that all previous
      disbursements have been used to pay the previously identified Approved Capital
      Expenses, and (B) lien waivers or other evidence of payment satisfactory to
      Lender, (C) at Lender’s option, a title search for the Property indicating that
      the Property is free from all Liens, claims and other encumbrances not
      previously approved by Lender and (D) such other evidence as Lender shall
      reasonably request that the Approved Capital Expenses at the Property to be
      funded by the requested disbursement have been completed and are paid for or
      will be paid upon such disbursement to Borrower. Any such disbursement of more
      than $100,000 to pay (rather than reimburse) Approved Capital Expenses may,
      at
      Lender’s option, be made by joint check payable to Borrower and the payee on
      such Approved Capital Expenses. 

     

    Section
      3.5 Rollover
      Reserve

     

    .
      Borrower
      shall pay to Lender $4,400,000 on the date hereof (the “Initial
      Rollover Deposit”),
      and
      Lender shall transfer such funds into a Subaccount (the “Rollover
      Reserve Subaccount”).
      Additionally, on each Payment Date commencing on the earlier to occur of (x)
      May
      6, 2009 or (y) the first Payment Date following the date that the funds
      constituting the Initial Rollover 

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

     

    Deposit
      have been reduced to $1,000,000, Borrower shall pay to Lender (for deposit
      into
      the Rollover Reserve Subaccount) $45,725 (one-twelfth (1/12th)
      of the
      product obtained by multiplying $1.25 by the aggregate number of rentable square
      feet of space in the Property); provided,
      however,
      Borrower shall only be obligated to make such monthly payment on any Payment
      Date on which the aggregate amount then on deposit in the Rollover Reserve
      Subaccount (excluding any Lease Termination Payments) is below $2,500,000.
      Borrower shall also pay to Lender (for deposit into the Rollover Reserve
      Subaccount) all Lease Termination Payments received by Borrower with respect
      to
      Material Leases; provided,
      however,
      once
      Borrower has provided to Lender evidence reasonably acceptable to Lender that
      the space under the Lease that was the subject of such Lease Termination Payment
      has been re-tenanted and all Approved Leasing Expenses in connection with such
      space have been paid, Lender shall (provided no Event of Default is then
      continuing) disburse to Borrower any remaining portion of the subject Lease
      Termination Payment.
      Provided that no Event of Default has occurred and is continuing, Lender shall
      disburse funds held in the Rollover Reserve Subaccount to Borrower, within
      fifteen (15) days after the delivery by Borrower to Lender of a request therefor
      (but not more often than once per month), in increments of at least $5,000,
      provided (i) such disbursement is for an Approved Leasing Expense;
      (ii) with respect to disbursements in excess of $100,000, Lender shall have
      (if it desires) verified (by an inspection conducted at Borrower’s expense)
      performance of any construction work associated with such an Approved Leasing
      Expense; and (iii) the request for disbursement is accompanied by
      (A) an Officer’s Certificate certifying (1) that such funds will be
      used only to pay (or reimburse Borrower for) an Approved Leasing Expense, and
      a
      description thereof, (2) that all outstanding trade payables (other than
      those to be paid from the requested disbursement or those constituting Permitted
      Indebtedness) have been paid in full, (3) that the same has not been the
      subject of a previous disbursement, and (4) that all previous disbursements
      have been used only to pay (or reimburse Borrower for) the previously identified
      Approved Leasing Expenses, and (B) reasonably detailed supporting
      documentation as to the amount, necessity and purpose therefor. Any such
      disbursement of more than $100,000 to pay (rather than reimburse) Approved
      Leasing Expenses may, at Lender’s option, be made by joint check payable to
      Borrower and the payee of such Approved Leasing Expenses. 

     

    Section
      3.6 Casualty/Condemnation
      Subaccount

     

    .
      Borrower shall pay, or cause to be paid, to Lender all Proceeds or Awards due
      to
      any Casualty or Condemnation to be transferred to a Subaccount (the
“Casualty/Condemnation
      Subaccount”)
      in
      accordance with the provisions of Article 7. All amounts in the
      Casualty/Condemnation Subaccount shall be disbursed in accordance with the
      provisions of Article 7.

     

    Section
      3.7 Security
      Deposits

     

    .
      Borrower shall keep all security deposits actually paid to Borrower under Leases
      at a separately designated account under Borrower’s control at the Clearing Bank
      (and in the case of a letter of credit received after the date hereof, assigned
      with full power of attorney and executed sight drafts to Lender) so that the
      security deposits shall not be commingled with any other funds of Borrower
      (such
      account, the “Security
      Deposit Account”).
      After
      the occurrence of an Event of Default which is continuing, Borrower shall,
      upon
      Lender’s request, if permitted by applicable 

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

     

    Legal
      Requirements, turn over to Lender the security deposits (and any interest
      theretofore earned thereon) under Leases, to be held by Lender in a Subaccount
      (the “Security
      Deposit Subaccount”)
      subject to the terms of the Leases. Security deposits held in the Security
      Deposit Subaccount will be released by Lender upon notice from Borrower together
      with such evidence as Lender may reasonably request that such security deposit
      is required to be returned to a tenant pursuant to the terms of a Lease or
      may
      be applied as Rent pursuant to the rights of Borrower under the applicable
      Lease. Any letter of credit or other instrument that Borrower receives in lieu
      of a cash security deposit under any Lease entered into after the date hereof
      shall (i) be maintained in full force and effect in the full amount
      required by the applicable Lease unless replaced by a cash deposit as
      hereinabove described and (ii) if permitted pursuant to any Legal
      Requirements, name Lender as payee or mortgagee thereunder (or at Lender’s
      option, be fully assignable to Lender).

     

    Section
      3.8 Cash
      Collateral/DSCR
      Cash Management Letter of Credit Collateral

     

    .

     

    3.8.1 Cash
      Collateral Subaccount

     

    .
      If a
      Cash Management Period shall have commenced, then on the immediately succeeding
      Payment Date and on each Payment Date thereafter during the continuance of
      such
      Cash Management Period, all Available Cash shall be paid to Lender, which
      amounts shall be transferred by Lender into a Subaccount (the “Cash
      Collateral Subaccount”)
      as cash
      collateral for the Debt. Any funds in the Cash Collateral Account and not
      previously disbursed or applied shall be disbursed to Borrower upon the
      termination of such Cash Management Period. Lender shall have the right, but
      not
      the obligation, at any time during the continuance of an Event of Default,
      in
      its sole and absolute discretion to apply all sums then on deposit in the Cash
      Collateral Subaccount to the Debt, in such order and in such manner as Lender
      shall elect in its sole and absolute discretion, including to make a prepayment
      of Principal (together which the applicable Yield Maintenance Premium applicable
      thereto). Additionally, Lender shall have the right, but not the obligation,
      at
      any time subsequent to the second Calculation Date following the commencement
      of
      a DSCR Cash Management Period (whether or not an Event of Default is then
      continuing), in its sole and absolute discretion to apply all sums then on
      deposit in the Cash Collateral Subaccount towards a partial Defeasance of the
      Loan (together with any Defeasance costs associated therewith), and Borrower
      shall execute such documents and take such other actions necessary to satisfy
      the Defeasance requirements set forth in Section 2.3.3 hereof (to the extent
      applicable to a partial involuntary Defeasance).

     

    3.8.2 DSCR
      Cash Management Letter of Credit Collateral

     

    .
      

     

    (a) All
      DSCR
      Cash Management Letter of Credit Collateral received by Lender from Borrower
      in
      accordance with the definition of “Cash Management Period” shall be held as
      collateral and additional security for the payment of the Debt. Upon the
      occurrence and during the continuance of an Event of Default, Lender shall
      have
      the right, at its option, to draw on all 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    

     

    or
      any
      portion of the DSCR Cash Management Letter of Credit Collateral and to apply
      such amount drawn to payment of the Debt in such order, proportion or priority
      as Lender may determine. Any such application to the Debt shall be subject
      to
      the Yield Maintenance Premium, if applicable. Borrower shall not be entitled
      to
      draw upon any such DSCR Cash Management Letter of Credit Collateral. However,
      if, as of any Calculation Date, the aggregate outstanding face amount of the
      DSCR Cash Management Letter of Credit Collateral received by Lender from
      Borrower in accordance with the definition of “Cash Management Period” is in an
      amount which is at least $350,000.00 greater than the amount necessary to (i)
      prevent the triggering of a DSCR Cash Management Period or (ii) end any
      then-continuing DSCR Cash Management Period, then, provided no Default or Event
      of Default then exists, Borrower may, at its option, reduce (or replace) the
      DSCR Cash Management Letter of Credit Collateral with DSCR Cash Management
      Letter of Credit Collateral which, when utilized in the calculation of the
      Debt
      Service component of the Debt Service Coverage Ratio, is in an amount equal
      to a
      portion of the then-outstanding Principal such that the Minimum DSCR Threshold
      would be maintained on the Loan after reduction of Principal in an amount equal
      to the aggregate outstanding face amount of the reduced (or replaced) DSCR
      Cash
      Management Letter of Credit Collateral.

     

    (b) In
      addition to any other right Lender may have to draw upon DSCR Cash Management
      Letter of Credit Collateral pursuant to the terms and conditions of Section
      3.8.2(a)
      above,
      Lender shall have the additional rights to draw in full any Letter of Credit
      constituting DSCR Cash Management Letter of Credit Collateral: (i) with
      respect to any evergreen Letter of Credit, if Lender has received a notice
      from
      the issuing bank that the applicable Letter of Credit will not be renewed and
      a
      substitute Letter of Credit is not provided at least thirty (30) days prior
      to
      the date on which the outstanding Letter of Credit is scheduled to expire;
      (ii)
      with respect to any Letter of Credit with a stated expiration date, if Lender
      has not received a notice from the issuing bank that it has renewed the Letter
      of Credit at least thirty (30) days prior to the date on which such Letter
      of
      Credit is scheduled to expire and a substitute Letter of Credit is not provided
      at least twenty (20) days prior to the date on which the outstanding Letter
      of
      Credit is scheduled to expire; (iii) upon receipt of notice from the issuing
      bank that the Letter of Credit will be terminated (except if the termination
      of
      such Letter of Credit is permitted pursuant to the terms and conditions of
      this
      Agreement or a substitute Letter of Credit is provided) or (iv) if Lender has
      received notice that the bank issuing the Letter of Credit shall cease to be
      an
      Approved Bank and Borrower shall not have replaced such Letter of Credit with
      a
      Letter of Credit issued by an Approved Bank within twenty (20) days after notice
      thereof. Notwithstanding anything to the contrary contained in the above, Lender
      is not obligated to draw any DSCR Cash Management Letter of Credit Collateral
      upon the happening of an event specified in (i), (ii), (iii) or (iv) above
      and
      shall not be liable for any losses sustained by Borrower due to the insolvency
      of the bank issuing the Letter of Credit if Lender has not drawn the applicable
      Letter of Credit.

     

    Section
      3.9 Grant
      of Security Interest; Application of Funds

     

    .
      As
      security for payment of the Debt and the performance by Borrower of all other
      terms, conditions and provisions of the Loan Documents, Borrower hereby pledges
      and assigns to Lender, and grants to Lender a security interest in, all
      Borrower’s right, title and interest in and to the Clearing Account, the Deposit
      Account and all Subaccounts, all Rents and in and to all payments to or monies
      held in the Clearing Account, the Deposit Account, and all Subaccounts 

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    

     

    created
      pursuant to this Agreement (collectively, the “Cash
      Management Accounts”).
      Borrower hereby grants to Lender a continuing security interest in, and agrees
      to hold in trust for the benefit of Lender, all Rents in its possession prior
      to
      the (i) payment of such Rents to Lender or (ii) deposit of such Rents
      into the Deposit Account until such Rents are released to Borrower from the
      Clearing Account pursuant to this Agreement and the Cash Management Agreement.
      Borrower shall not, without obtaining the prior written consent of Lender,
      further pledge, assign or grant any security interest in any Cash Management
      Account, or permit any Lien to attach thereto, or any levy to be made thereon,
      or any UCC Financing Statements, except those naming Lender as the secured
      party, to be filed with respect thereto. This Agreement is, among other things,
      intended by the parties to be a security agreement for purposes of the UCC.
      Upon
      the occurrence and during the continuance of an Event of Default, Lender may
      apply any sums in any Cash Management Account in any order and in any manner
      as
      Lender shall elect in Lender’s discretion without seeking the appointment of a
      receiver and without adversely affecting the rights of Lender to foreclose
      the
      Lien of the Mortgage or exercise its other rights under the Loan Documents.
      Cash
      Management Accounts shall not constitute trust funds and may be commingled
      with
      other monies held by Lender. Provided no Event of Default has occurred and
      is
      continuing, at the direction of Borrower, Lender shall deposit the amounts
      held
      in the Cash Management Accounts in Permitted Investments selected by Borrower.
      All investment earnings which accrues on the funds in any Cash Management
      Account shall accrue for the benefit of Borrower and shall be taxable to
      Borrower and shall be added to and disbursed in the same manner and under the
      same conditions as the principal sum on which said interest accrued. Lender
      shall not be responsible for any losses resulting from the investment of the
      Funds or for obtaining any specific level or percentage of earnings on such
      investment. Upon repayment in full of the Debt or defeasance of the Loan, all
      remaining funds in the Cash Management Accounts, if any, shall be promptly
      disbursed to Borrower.

     

    Section
      3.10 Property
      Cash Flow Allocation

     

    .

     

    (a) During
      any Cash Management Period, all Rents deposited into the Deposit Account during
      the immediately preceding Interest Period shall be applied on each Payment
      Date
      as follows in the following order of priority: (i) First,
      to make
      payments into the Tax and Insurance Subaccount as required under Section 3.3;
      (ii) Second,
      to pay
      the monthly portion of the fees charged by the Deposit Bank in accordance with
      the Cash Management Agreement; (iii) Third,
      to
      Lender to pay the Monthly Debt Service Payment Amount due on such Payment Date
      (plus, if applicable, interest at the Default Rate and all other amounts, other
      than those described under other clauses of this Section 3.10(a), then due
      to
      Lender under the Loan Documents); (iv) Fourth,
      to make
      payments into the Capital Reserve Subaccount as required under Section 3.4;
      (v) Fifth,
      to make
      payments into the Rollover Reserve Subaccount if and as required under
      Section 3.5.1; (vi) Sixth,
      to
      Borrower the monthly amount set forth in the Approved Budget for the following
      month as being necessary for payment of Approved Operating Expenses at the
      Property for such month, plus the amount for Budgeted Variances (as defined
      in
      the Cash Management Agreement); (vii) Seventh,
      after
      the consummation of a Securitization, to pay the pro rata portion of the
      expenses described in Section 9.1.4; and (viii) Lastly,
      to make
      payments in an amount equal to all remaining Available Cash on such Payment
      Date
      into the Cash Collateral Subaccount in accordance with Section 3.8.

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    

     

    (b) The
      failure of Borrower to make all of the payments required under clauses (i)
      through (viii) of Section 3.10(a) in full on each Payment Date shall constitute
      an Event of Default under this Agreement; provided,
      however,
      if
      adequate funds are available in the Deposit Account for such payments, the
      failure by the Deposit Bank to allocate such funds into the appropriate
      Subaccounts shall not constitute an Event of Default.

     

    (c) Notwithstanding
      anything to the contrary contained in this Section 3.10, after the occurrence
      and continuance of a Default or an Event of Default, Lender may apply all Rents
      deposited into the Deposit Account and other proceeds of repayment in such
      order
      and in such manner as Lender shall elect.

     

    ARTICLE
      4

     

    

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Borrower
      represents and warrants to Lender as of the date hereof that, except to the
      extent (if any) disclosed on Schedule 2 with reference to a specific Section
      of
      this Article 4:

     

    Section
      4.1 Organization;
      Special Purpose

     

    .
      Borrower has been duly organized and is validly existing and in good standing
      under the laws of the state of its formation, with requisite power and
      authority, and all rights, licenses, permits and authorizations, governmental
      or
      otherwise, necessary to own its properties and to transact the business in
      which
      it is now engaged. Borrower is duly qualified to do business and is in good
      standing in each jurisdiction where it is required to be so qualified in
      connection with its properties, business and operations. Borrower is a Special
      Purpose Bankruptcy Remote Entity.

     

    Section
      4.2 Authorization;
      Valid Execution and Delivery; Enforceability

     

    .
      Borrower has taken all necessary actions for the authorization of the borrowing
      on account of the Loan and for the execution and delivery of the Loan Documents,
      including, without limitation, that those members of Borrower whose approval
      is
      required by the terms of Borrower’s organizational documents have duly approved
      the transactions contemplated by the Loan Documents and have authorized
      execution and delivery thereof by the respective signatories. To the best of
      Borrower’s knowledge, no other consent by any local, state or federal agency is
      required in connection with the execution and delivery of the Loan Documents.
      All of the Loan Documents requiring execution by Borrower have been duly and
      validly executed and delivered by Borrower. All of the Loan Documents constitute
      valid, legal and binding obligations of Borrower and are fully enforceable
      against Borrower in accordance with their terms by Lender and its successors,
      transferees and assigns, subject only to bankruptcy laws, and general principles
      of equity, insolvency, reorganization, arrangement, moratorium, receivership
      or
      other similar laws relating to or affecting the rights of creditors. All
      consents, approvals, authorizations, orders or filings with any court or
      governmental agency or body, if any, required for the execution, delivery and
      performance of the Loan Documents by Borrower have been obtained or
      made.

     

    Section
      4.3 No
      Conflict/Violation of Law

     

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    

     

    .
      The
      execution, delivery and performance of the Loan Documents by Borrower will
      not
      cause or constitute a default under or conflict with the organizational
      documents of Borrower, any Guarantor or any general partner or managing member
      of Borrower or any Guarantor. The execution, delivery and performance of the
      obligations imposed on Borrower under the Loan Documents will not cause Borrower
      to be in default, including after due notice or lapse of time or both, under
      the
      provisions of any agreement, judgment or order to which Borrower is a party
      or
      by which Borrower is bound.

     

    Section
      4.4 No
      Litigation

     

    .
      Except
      as otherwise disclosed on Schedule 2, to the best of Borrower’s knowledge there
      are no pending actions, suits or proceedings, arbitrations or governmental
      investigations against the Property, an adverse outcome of which would
      materially affect Borrower’s performance under the Note, this Agreement or the
      other Loan Documents.

     

    Section
      4.5 No
      Defenses

     

    .
      The
      Note, this Agreement, the Mortgage and the other Loan Documents are not subject
      to any right of rescission, set-off, counterclaim or defense, nor would the
      operation of any of the terms of the Note, this Agreement, the Mortgage or
      any
      of the other Loan Documents, or the exercise of any right thereunder, render
      this Agreement or the Mortgage unenforceable, in whole or in part, or subject
      to
      any right of rescission, set-off, counterclaim or defense, including the defense
      of usury.

     

    Section
      4.6 Title

     

    .
      Borrower has good and marketable fee simple title to the Property constituting
      real property (other than the beneficial interests), and good title to the
      Equipment, subject to no liens, charges or encumbrances other than the Permitted
      Encumbrances and liens, charges or encumbrances otherwise expressly permitted
      by
      the Loan Documents. The possession of the Property has been peaceful and
      undisturbed and title thereto has not been disputed or questioned to the best
      of
      Borrower’s knowledge. The Permitted Encumbrances do not and will not materially
      and adversely affect (1) the ability of Borrower to pay in full the
      principal and interest on the Note in a timely manner or (2) the use of the
      Property for the use currently being made thereof, the operation of the Property
      as currently being operated or the value of the Property. Upon the execution
      by
      Borrower and the recording of the Mortgage, and upon the filing of UCC-1
      financing statements or amendments thereto, the Lender will have a valid first
      lien on the Property and a valid security interest in the Equipment subject
      to
      no liens, charges or encumbrances other than the Permitted Encumbrances and
      liens, charges or encumbrances otherwise expressly permitted by the Loan
      Documents.

     

    Section
      4.7 No
      Insolvency or Judgment; No Bankruptcy Filing

     

    .
      Neither
      Borrower, nor any general partner or member of Borrower, nor any Guarantor
      of
      the Loan is currently (a) the subject of or a party to any completed or
      pending bankruptcy, reorganization or insolvency proceeding; or (b) the subject
      of any judgment unsatisfied of record or docketed in any court of the state
      in
      which the Property is located or in any other court located in the United
      States. The Loan will not render Borrower nor any general partner or member
      of

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    

     

    Borrower
      insolvent. As used herein, the term “insolvent”
means
      that the sum total of all of an entity’s liabilities (whether secured or
      unsecured, contingent or fixed, or liquidated or unliquidated) is in excess
      of
      the value of all such entity’s non-exempt assets, i.e., all of the assets of the
      entity that are available to satisfy claims of creditors. Borrower is not
      contemplating either the filing of a petition by it under any state or federal
      bankruptcy or insolvency law or the liquidation of all or a major portion of
      its
      property (a “Bankruptcy
      Proceeding”),
      and
      Borrower has no knowledge of any Person contemplating the filing of any such
      petition against it. In addition, except as described on Schedule
      2
      attached
      hereto, neither Borrower nor any principal nor Affiliate of Borrower has been
      a
      party to, or the subject of a Bankruptcy Proceeding for the past ten
      years.

     

    Section
      4.8 Misstatements
      of Fact

     

    .
      No
      statement of fact made in the Loan Documents contains any untrue statement
      of a
      material fact or omits to state any material fact known to Borrower or its
      Affiliates necessary to make statements contained herein or therein not
      misleading. There is no fact presently known to Borrower which has not been
      disclosed which materially adversely affects, nor as far as Borrower can
      reasonably foresee, might materially adversely affect the business, operations
      or condition (financial or otherwise) of Borrower.

     

    Section
      4.9 Tax
      Filings

     

    .
      To the
      extent required, Borrower has filed (or has obtained effective extensions for
      filing) all federal, state and local tax returns required to be filed and,
      except as otherwise disclosed to Lender in writing, has paid or made adequate
      provision for the payment of all federal, state and local taxes, charges and
      assessments payable by Borrower pursuant to such returns or any notice of
      assessment received by Borrower. Borrower believes that its tax returns (if
      any)
      properly reflect the income and taxes of Borrower for the periods covered
      thereby, subject only to reasonable adjustments required by the Internal Revenue
      Service or other applicable tax authority upon audit. Borrower does not have
      any
      knowledge of any basis for additional assessment with respect to such taxes
      other than a possible reassessment of the Property for real estate tax purposes
      resulting from transactions occurring in connection with the acquisition of
      the
      Property on or prior to the date hereof.

     

    Section
      4.10 ERISA

     

    .
      As of
      the date hereof and throughout the Term (i) Borrower is not and will not be
      an
“employee benefit plan,” as defined in Section 3(3) of
      ERISA,
      which is subject to Title I of ERISA, (ii) none of the assets of Borrower
      constitutes or will constitute “plan assets” of one or more such plans within
      the meaning of 29 C.F.R.
      Section 2510.3-101, (iii) Borrower is not and will not be a
“governmental plan” within the meaning of Section 3(32) of ERISA, and
      (iv) transactions by or with Borrower are not and will not
      be
      subject to state statutes regulating investment of, and fiduciary obligations
      with respect to, governmental plans.
      As of
      the date hereof, neither Borrower, nor any member of the “controlled group of
      corporations” (within the meaning of Section 414 of the Code) that includes
      Borrower maintains, sponsors or contributes to a “defined benefit plan” (within
      the meaning of Section 3(35) of ERISA) or a “multiemployer pension plan” (within
      the meaning of Section 3(37)(A) of ERISA). 

     

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    

     

    Section
      4.11 Compliance
      with Applicable Laws and Regulations

     

    .
      To the
      Borrower’s knowledge, except as set forth in the engineering reports obtained
      and submitted to Lender in connection with the Loan, all of the Improvements
      and
      the use of the Property comply in all material respects with, and shall remain
      in compliance in all material respects with, all applicable statutes, rules,
      regulations and private covenants now or hereafter relating to the ownership,
      construction, use or operation of the Property, including all applicable
      Prescribed Laws and all applicable statutes, rules and regulations pertaining
      to
      requirements for equal opportunity, anti-discrimination, fair housing,
      environmental protection, zoning and land use and the Improvements comply in
      all
      material respects with, and shall remain in compliance in all material respects
      with, applicable health, fire and building codes. Borrower is not aware of
      any
      illegal activities relating to controlled substances on the Property. To
      Borrower’s knowledge, all certifications, permits, licenses and approvals,
      including, without limitation, certificates of completion and occupancy permits
      required for the legal use, occupancy and operation of the Property as an office
      building (collectively, the “Licenses”),
      have
      been obtained and are in full force and effect. To the Borrower’s knowledge, all
      of the Improvements comply with all material requirements of any applicable
      zoning and subdivision laws and ordinances. To Borrower’s knowledge, in the
      event that all or any part of the Improvements are destroyed or damaged, said
      Improvements can be legally reconstructed to their condition prior to such
      damage or destruction, and thereafter exist for the same use without violating
      any zoning or other ordinances applicable thereto and without the necessity
      of
      obtaining any variances or special permits. No legal proceedings are pending
      or,
      to the knowledge of Borrower, threatened with respect to the zoning of the
      Property. To the Borrower’s knowledge, neither the zoning nor any other right to
      construct, use or operate the Property is in any way dependent upon or related
      to any property other than the Property. The use being made of the Property
      is
      in conformity with the certificate of occupancy issued for the Property and,
      to
      the Borrower’s knowledge, all other restrictions, covenants and conditions
      affecting the Property.

     

    Section
      4.12 Contracts

     

    .
      Except
      as set forth on Schedule 2, to the Borrower’s knowledge there are no service,
      maintenance or repair contracts affecting the Property that are not terminable
      on one month’s notice or less without cause and without penalty or premium. All
      service, maintenance or repair contracts affecting the Property entered into
      by
      the Borrower have been entered into at arms-length in the ordinary course of
      Borrower’s business and provide for the payment of fees in amounts and upon
      terms comparable to existing market rates.

     

    Section
      4.13 Federal
      Reserve Regulations; Investment Company Act

     

    .
      No part
      of the proceeds of the Loan will be used for the purpose of purchasing or
      acquiring any “margin stock” within the meaning of Regulation U of the Board of
      Governors of the Federal Reserve System or for any other purpose that would
      be
      inconsistent with such Regulation U or any other regulation of such Board of
      Governors, or for any purpose prohibited by Legal Requirements or any Loan
      Document. Borrower is not (i) an “investment company” or a company
“controlled” by an “investment company,” within the meaning of the Investment
      Company Act of 1940, as amended; (ii) a “holding company” or a “subsidiary
      company” of a “holding company” or an “affiliate” of either a “holding company”
or a “subsidiary company” 

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    

     

    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.

     

    Section
      4.14 Access/Utilities

     

    .
      To
      Borrower’s best knowledge, the Property has adequate rights of access to public
      ways and is served by adequate water, sewer, sanitary sewer and storm drain
      facilities. Other than as disclosed on the Survey (as hereinafter defined),
      all
      public utilities necessary to the continued use and enjoyment of the Property
      as
      presently used and enjoyed are located in the public right-of-way abutting
      the
      Property, and all such utilities are connected so as to serve the Property
      without passing over other property. All roads necessary for the full
      utilization of the Property for its current purpose have been completed and
      dedicated to public use and accepted by all Governmental Authorities or are
      the
      subject of access easements for the benefit of the Property.

     

    Section
      4.15 Condition
      of Improvements

     

    .
      To the
      Borrower’s knowledge, except as may be expressly disclosed in the engineering
      reports obtained and submitted to Lender, the Property, including all
      Improvements, parking facilities, systems, Equipment and landscaping, are in
      good condition, order and repair in all material respects; and there exists
      no
      structural or other material defect or damages to the Property, whether latent
      or otherwise. Borrower has not received notice from any insurance company or
      bonding company of any defect or inadequacy in the Property, or any part
      thereof, which would adversely affect its insurability or cause the imposition
      of extraordinary premiums or charges thereon or any termination of any policy
      of
      insurance or bond. No portion of the Property is located in an area as
      identified by the Federal Emergency Management Agency as an area having special
      flood hazards. The Property has not been damaged by fire, water, wind or other
      cause of loss which has not been fully restored in all material
      respects.

     

    Section
      4.16 Leases

     

    .
      To
      Borrower’s best knowledge the rent roll attached hereto as Schedule 3 together
      with the schedules and the exhibits attached to such rent roll (collectively,
      the “Rent
      Roll”)
      is
      true, complete and correct and the Property is not subject to any Leases other
      than the Leases described in the Rent Roll and any existing subleases
      thereunder. To Borrower’s best knowledge no Person has any possessory interest
      in the Property or right to occupy the same except under and pursuant to the
      provisions of the Leases (and any existing subleases thereunder). As of the
      date
      hereof (i) Borrower is the owner and holder of the landlord’s interest
      under each Lease; (ii) there are no prior assignments of the landlord’s
      interest by Borrower (and to Borrower’s knowledge any prior landlord) in any
      Lease or any portion of Rents which are presently outstanding and have priority
      over the Assignment of Leases and Rents (the “Assignment
      of Leases and Rents”),
      dated
      the date hereof, given by Borrower to Lender and intended to be duly recorded;
      (iii) true and correct copies of the Leases have been delivered by Borrower
      to Lender or made available to Lender and, to Borrower’s knowledge, the Leases
      have not been further modified or amended, except as disclosed to Lender in
      writing on or prior to the date hereof; (iv) to Borrower’s best knowledge,
      each Lease is in full force and effect; (v) to Borrower’s best knowledge,
      except as disclosed on the Rent Roll or in any tenant estoppels delivered to
      Lender in 

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    

     

    connection
      with the Loan (collectively, the “Tenant
      Estoppels”),
      neither Borrower nor, to Borrower’s knowledge, any tenant under any Lease is in
      default under any of the material terms, covenants or provisions of the Lease,
      and, except as disclosed to Lender in writing or in any Tenant Estoppels,
      Borrower knows of no event which, but for the passage of time or the giving
      of
      notice or both, would constitute an event of default under any Lease;
      (vi) to Borrower’s best knowledge, except as expressly set forth in the
      Leases, the Tenant Estoppels or on the Rent Roll, there are no offsets or
      defenses to the payment of any portion of the Rents; and (vii) to
      Borrower’s best knowledge, except as disclosed on the Rent Roll or in any Tenant
      Estoppel, all Rents due and payable under each Lease have been paid in full
      and,
      except for estimated payments of operating expenses and taxes made by tenants
      in
      accordance with their Leases, no Rents have been paid more than one (1) month
      in
      advance of the due dates thereof. For purposes of the preceding sentence, the
      term “Lease” shall exclude subleases.

     

    Section
      4.17 Fraudulent
      Transfer

     

    .
      Borrower (1) has not entered into the Loan or any Loan Document with the
      actual intent to hinder, delay, or defraud any creditor and (2) received
      reasonably equivalent value in exchange for its obligations under the Loan
      Documents. Giving effect to the Loan contemplated by the Loan Documents, the
      fair saleable value of Borrower’s assets exceed and will, immediately following
      the execution and delivery of the Loan Documents, exceed Borrower’s total
      liabilities, including, without limitation, subordinated, unliquidated, disputed
      or contingent liabilities. The fair market value of Borrower’s assets is and
      will, immediately following the execution and delivery of the Loan Documents,
      be
      greater than Borrower’s probable liabilities, including the maximum amount of
      its contingent liabilities or its debts as such debts become absolute and
      matured. Borrower’s assets do not and, immediately following the execution and
      delivery of the Loan Documents will not, constitute unreasonably small capital
      to carry out its business as conducted or as proposed to be conducted. Borrower
      does not intend to, and does not believe that it will, incur debts and
      liabilities (including, without limitation, contingent liabilities and other
      commitments) beyond its 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
      Borrower).

     

    Section
      4.18 Ownership
      of Borrower

     

    .
      The
      sole member of Borrower is the OP, whose sole general partner is the REIT.
      The
      membership interests in Borrower are owned free and clear of all Liens,
      warrants, options and rights to purchase. Borrower does not have any obligation
      to any Person to purchase, repurchase or issue any ownership interest in it.
      The
      organizational chart attached hereto as Schedule 4 is complete and accurate
      and
      illustrates all Persons who have a direct ownership interest in Borrower and
      the
      OP.

     

    Section
      4.19 No
      Purchase Options

     

    .
      To
      Borrower’s best knowledge, no tenant, person, party, firm, corporation or other
      entity has an option to purchase the Property, any portion thereof or any
      interest therein other than options, rights of first refusal and similar rights
      to lease space in the Improvements granted to a tenant pursuant to its
      respective Lease or in another writing otherwise delivered to Lender and other
      

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    

     

    than
      rights of first refusal contained in operating agreements of members of Borrower
      in favor of members of the members of Borrower in the event of a sale of the
      Property by Borrower.

     

    Section
      4.20 Management
      Agreement

     

    .
      The
      Management Agreement is in full force and effect and there is no default or
      violation by any party thereunder. The fee due under the Management Agreement,
      and the terms and provisions of the Management Agreement, are subordinate to
      the
      Mortgage and Manager agrees to attorn to Lender pursuant to and in accordance
      with that certain Assignment and Subordination of Management Agreement dated
      of
      even date herewith by and among Borrower, Manager and Lender.

     

    Section
      4.21 Hazardous
      Substances

     

    .
      To
      Borrower’s knowledge, except as disclosed in the reports, dated March 28, 2006,
      prepared by URS Corporation (the “Phase
      I Reports”)
      and
      delivered to Lender in connection with the Loan: (a) the Property is not in
      violation of any local, state, federal or other governmental authority, statute,
      ordinance, code, order, decree, law, rule or regulation pertaining to or
      imposing liability or standards of conduct concerning environmental regulation,
      contamination or clean-up including, without limitation, the Comprehensive
      Environmental Response, Compensation and Liability Act, as amended, the Resource
      Conservation and Recovery Act, as amended, the Emergency Planning and Community
      Right-to-Know Act of 1986, as amended, the Hazardous Substances Transportation
      Act, as amended, the Solid Waste Disposal Act, as amended, the Clean Water
      Act,
      as amended, the Clean Air Act, as amended, the Toxic Substance Control Act,
      as
      amended, the Safe Drinking Water Act, as amended, the Occupational Safety and
      Health Act, as amended, any state super-lien and environmental clean-up statutes
      (including with respect to Toxic Mold) and all rules and regulations adopted
      in
      respect to the foregoing laws (collectively, “Environmental
      Laws”);
      (b) the Property is not subject to any private or governmental lien or
      judicial or administrative notice or action or inquiry, investigation or claim
      relating to hazardous and/or toxic, dangerous and/or regulated, substances,
      wastes, materials, raw materials which include hazardous constituents,
      pollutants or contaminants including without limitation, petroleum, tremolite,
      anthlophylie, actinolite or polychlorinated biphenyls, toxic mold or fungus
      of a
      type that may pose a risk to human health or the environment or would materially
      and negatively impact the value of the Property (“Toxic
      Mold”)
      and
      any other substances or materials which are included under or regulated by
      Environmental Laws or which are considered by scientific opinion to be otherwise
      dangerous in terms of the health, safety and welfare of humans (collectively,
      “Hazardous
      Substances”);
      (c) no Hazardous Substances are or have been (including the period prior to
      Borrower’s acquisition of the Property) discharged, generated, treated, disposed
      of or stored on, incorporated in, or removed or transported from the Property
      other than in compliance with all Environmental Laws; (d) no Hazardous
      Substances are present in, on or under any nearby real property which could
      migrate to or otherwise affect the Property and which would reasonably be likely
      to result in a requirement under applicable Environmental Laws to remediate
      the
      Property; and (e) no underground storage tanks exist on any of the
      Property. Notwithstanding anything to the contrary in this Section 4.21,
      Borrower and tenants may use and store ordinary amounts of Hazardous Substances
      at the Property in compliance with all applicable Environmental Laws if such
      use
      and storage is in connection with business 

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    

     

    supplies
      used by Borrower, a tenant in accordance with the terms of its Lease or in
      connection with the ordinary cleaning and maintenance of the
      Property.

     

    Section
      4.22 Name;
      Principal Place of Business

     

    .
      Borrower does not use and will not use any trade name and has not done and
      will
      not do business under any name other than its actual name set forth herein.
      The
      principal place of business of Borrower is its primary address for notices
      as
      set forth in Section 6.1, and Borrower does not have any other place of
      business.

     

    Section
      4.23 No
      Other Obligations

     

    .
      Borrower does not have any material financial obligation or contingent
      liabilities under any indenture, mortgage, deed of trust, loan agreement or
      other agreement or instrument to which Borrower is a party or by which Borrower
      or the Property is otherwise bound, other than obligations incurred in the
      ordinary course of the operation of the Property and other than obligations
      under the Leases, this Agreement and the other Loan Documents that would
      materially affect Borrower’s performance under the Note, this Agreement or the
      other Loan Documents.

     

    Section
      4.24 Defense
      of Usury

     

    .
      Borrower knows of no facts that would support a claim of usury to defeat or
      avoid its obligation to repay the principal of, interest on, and other sums
      or
      amounts due and payable under, the Loan Documents.

     

    Section
      4.25 Intentionally
      Omitted

     

    .
      

     

    Section
      4.26 Single
      Tax Lot

     

    .
      The
      Property consists of a single lot or multiple tax lots; no portion of said
      tax
      lot(s) covers property other than the Property or a portion of the Property
      and
      no portion of the Property lies in any other tax lot.

     

    Section
      4.27 Special
      Assessments

     

    .
      Except
      as disclosed in the Title Insurance Policy, there are no pending or, to the
      knowledge of Borrower, proposed special or other assessments for public
      improvements or otherwise affecting the Property, nor, to the knowledge of
      Borrower, are there any contemplated improvements to the Property that may
      result in such special or other assessments.

     

    Section
      4.28 No
      Condemnation

     

    .
      No part
      of any property subject to the Mortgage has been taken in condemnation or other
      like proceeding to an extent which would impair the value of the Property,
      the
      Mortgage or the Loan or the usefulness of such property for the purposes for
      which it is currently being operated, nor to 

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    

     

    Borrower’s
      knowledge, is any proceeding pending, threatened or known to be contemplated
      for
      the partial or total condemnation or taking of the Property.

     

    Section
      4.29 No
      Labor or Materialmen Claims

     

    .
      Except
      for those improvements and other work performed in the ordinary course of
      business with respect to which any applicable payments are not more than sixty
      (60) days past due, to Borrower’s knowledge, all parties furnishing labor and
      materials for which payment is due and payable as of the date hereof have been
      paid in full and, except for such liens or claims insured against by the policy
      of title insurance to be issued in connection with the Loan, there are no
      mechanics’, laborers’ or materialmens’ liens or claims outstanding for work,
      labor or materials affecting the Property, whether prior to, equal with or
      subordinate to the lien of the Mortgage.

     

    Section
      4.30 Boundary
      Lines

     

    .
      Except
      as disclosed in the survey of the Property and Improvements delivered to Lender
      in connection with the funding of the Loan (the “Survey”),
      to
      Borrower’s knowledge, (i) all of the Improvements which were included in
      determining the appraised value of the Property lie wholly within the boundaries
      and building restriction lines of the Property, (ii) no improvements on
      adjoining properties encroach upon the Property, and (iii) no easements or
      other encumbrances upon the Property encroach upon any of the Improvements,
      so
      as to materially and adversely affect the value or marketability of the Property
      except those which are insured against by title insurance.

     

    Section
      4.31 Survey

     

    .
      To
      Borrower’s knowledge, the Survey does not fail to reflect any material matter
      affecting the Property or the Improvements or the title thereto.

     

    Section
      4.32 Forfeiture

     

    .
      There
      has not been and shall never be committed by Borrower or, to Borrower’s
      knowledge, any other person in occupancy of or involved with the operation
      or
      use of the Property any act or omission affording the federal government or
      any
      state or local government the right of forfeiture as against the Property or
      any
      part thereof or any monies paid in performance of Borrower’s obligations under
      any of the Loan Documents.

     

    Section
      4.33 Borrower
      Entity Representations

     

    .
      Borrower hereby represents, warrants, covenants, with respect to Borrower,
      from
      the date of formation of Borrower to the date of this Agreement as
      follows:

     

    (a) Borrower’s
      business has been limited solely to (i) acquiring, improving, developing,
      owning, holding, leasing, financing, operating and managing the Property,
      (ii) entering into financings and refinancings of the Property and
      (iii) transacting any and all lawful business that was incident, necessary
      and appropriate to accomplish the foregoing.

     

    (b) Borrower
      has not engaged in any business other than as set forth in (a)
      above.

     

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    

     

    (c) Borrower
      has not owned any asset or property other than (i) the Property, and
      (ii) incidental personal property reasonably necessary for and used or to
      be used in connection with the ownership or operation of the
      Property.

     

    (d) Borrower
      has not entered into any contract or agreement with any Affiliate of Borrower,
      any constituent party of Borrower, any owner of Borrower, any guarantors of
      the
      obligations of Borrower or any Affiliate of any such constituent party, owner
      or
      guarantor (individually, a “Related
      Party”
and
      collectively, the “Related
      Parties”),
      except upon terms and conditions that are commercially reasonable.

     

    (e) Borrower
      has not made any loans or advances to any Person and has not acquired
      obligations or securities of any Related Party.

     

    (f) Borrower
      has paid its debts and liabilities from its assets as the same have become
      due.

     

    (g) Borrower
      has done or caused to be done all things necessary to observe organizational
      formalities and preserve its existence.

     

    (h) Borrower
      has maintained all of its books, records, financial statements and bank accounts
      separate from those of any other Person and Borrower’s assets have not been
      listed as the assets of any other Person on the financial statement of any
      other
      Person, and without limiting the foregoing, to the extent Borrower’s financial
      information were required under GAAP or tax-reporting rules to be included
      within a consolidated set of financial statements, such statements has included
      a footnote to the effect that Borrower is a separate legal entity and its assets
      are not available to creditors of other members of the consolidated group.
      Borrower has maintained its books, records, resolutions and agreements as
      official records.

     

    (i) Borrower
      has been, and at all times has held itself out to the public as, a legal entity
      separate and distinct from any other Person (including any Affiliate or other
      Related Party), has corrected any known misunderstanding regarding its status
      as
      a separate entity, has conducted its business in its own name, has not
      identified itself or any of its Affiliates as a division or part of the other
      and has maintained and utilized separate stationery, invoices and
      checks.

     

    (j) Borrower
      has not commingled its assets with those of any other Person and has held all
      of
      its assets in its own name.

     

    (k) Borrower
      has not guaranteed or become obligated for the debts of any other Person and
      has
      not held itself out as being responsible for the debts or obligations of any
      other Person.

     

    (l) Borrower
      has allocated fairly and reasonably any overhead expenses that have been shared
      with an Affiliate (other than the other Borrower), including paying for office
      space and services performed by any employee of an Affiliate or Related
      Party.

     

     

    
      
        
        

      

      
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    (m) Borrower
      has not pledged its assets for the benefit of any other Person other than with
      respect to loans secured by the Property and no such pledge remains outstanding
      except in connection with the Loan.

     

    (n) Borrower
      has maintained a sufficient number of employees in light of its contemplated
      business operations and has paid the salaries of its own employees from its
      own
      funds.

     

    (o) Borrower
      has not made loans to any other Person or has bought or held evidence of
      indebtedness issued by any other Person.

     

    (p) Except
      as
      otherwise disclosed on Schedule 2, Borrower does not have any actions, suits
      or
      proceedings at law or in equity by or before any Governmental Authority or
      other
      agency now pending or, threatened against or affecting Borrower, which actions,
      suits or proceedings, if determined against Borrower, would materially adversely
      affect the financial condition or business of Borrower.

     

    (q) Borrower
      has not incurred any indebtedness that is still outstanding other than
      indebtedness that is permitted under the Loan Documents.

     

    (r) Borrower
      is not now party to any lawsuit, arbitration, summons, or legal proceeding,
      except as otherwise disclosed in Schedule 2, and any prior litigation related
      solely to the Property or the ownership in Borrower.

     

    (s) Borrower
      has no judgments or liens of any nature against it except for tax liens not
      delinquent and liens disclosed in the title report and other Permitted
      Encumbrances.

     

    (t) To
      Borrower’s knowledge, Borrower is in compliance with all laws, regulations, and
      orders applicable to it and has received all permits necessary for it to
      operate.

     

    (u) Borrower
      is not involved in any dispute with any taxing authority.

     

    (v) Borrower
      does not have any material contingent or actual obligations not related to
      the
      Property.

     

    (w) Borrower
      is and has since its formation been duly formed, validly existing, and in good
      standing in the state of its formation and in all other jurisdictions where
      it
      is qualified to do business.

     

    (x) Borrower
      has paid all taxes which Borrower owes pursuant to Legal
      Requirements. 

     

    All
      of
      the representations and warranties in this Article 4 and elsewhere in the Loan
      Documents (i) shall survive for so long as any portion of the Debt remains
      owing to Lender and (ii) shall be deemed to have been relied upon by Lender
      notwithstanding any investigation heretofore or hereafter made by Lender or
      on
      its behalf; provided,
      however,
      that,
      with regard to events or conditions that occur or arise on the Property before
      Lender or any other Person 

     

    
      
        
        

      

      
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    acquires
      the Property by foreclosure or deed in lieu of foreclosure, the representations,
      warranties and covenants set forth in Section 4.21 shall survive in
      perpetuity.

     

    ARTICLE
      5

     

    

     

    COVENANTS

     

    Until
      the
      end of the Term, Borrower hereby covenants and agrees with Lender
      that:

     

    Section
      5.1 Existence

     

    .
      Borrower shall (i) do or cause to be done all things necessary to preserve,
      renew and keep in full force and effect its existence, rights, and franchises,
      (ii) continue to engage in the business presently conducted by it,
      (iii) obtain and maintain all Licenses, and (iv) qualify to do
      business and remain in good standing under the laws of each jurisdiction, in
      each case as and to the extent required for the ownership, maintenance,
      management and operation of the Property.

     

    Section
      5.2 Taxes
      and Other Charges

     

    .
      Borrower shall pay all Taxes on or before the last date prior to which any
      interest, late fees or penalties would begin to accrue thereon (the
“Delinquency
      Date”)
      and
      Other Charges as the same become due and payable, and deliver to Lender receipts
      for payment or other evidence satisfactory to Lender that the Taxes and Other
      Charges have been so paid no later than the Delinquency Date (provided,
      however,
      that
      Borrower need not pay such Taxes nor furnish such receipts for payment of Taxes
      paid by Lender pursuant to Section 3.3). Borrower shall not suffer and shall
      promptly cause to be paid and discharged any Lien against the Property other
      than Permitted Encumbrances, and shall promptly pay for all utility services
      provided to the Property required to be paid by Borrower. After prior notice
      to
      Lender, Borrower, at its own expense, may contest by appropriate legal
      proceeding, promptly initiated and conducted in good faith and with due
      diligence, the amount or validity or application of any Taxes or Other Charges,
      provided that (i) no Default or Event of Default has occurred and is
      continuing, (ii) such proceeding shall suspend the collection of the Taxes
      or such Other Charges, (iii) such proceeding shall be permitted under and
      be conducted in accordance with the provisions of any other instrument to which
      Borrower is subject and shall not constitute a default thereunder, (iv) no
      part of or interest in the Property will be in danger of being sold, forfeited,
      terminated, canceled or lost, (v) Borrower shall have furnished such
      security as may be required in the proceeding, or as may be requested by Lender,
      to insure the payment of any such Taxes or Other Charges, together with all
      interest and penalties thereon, which shall not be less than 125% of the Taxes
      and Other Charges being contested, and (vi) Borrower shall promptly upon
      final determination thereof pay the amount of such Taxes or Other Charges,
      together with all costs, interest and penalties. Lender may pay over any such
      security or part thereof held by Lender to the claimant entitled thereto at
      any
      time when, in the judgment of Lender, the entitlement of such claimant is
      established.

     

    Section
      5.3 Access
      to Property

     

     

    
      
        
        

      

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

     

    Section
      5.4 Repairs;
      Maintenance and Compliance; Alterations

     

    .

     

    5.4.1 Repairs;
      Maintenance and Compliance.
      Borrower shall at all times maintain, preserve and protect all franchises and
      trade names, and Borrower shall cause the Property to be maintained in a good
      and safe condition and repair and shall not remove, demolish or alter the
      Improvements or Equipment (except for alterations performed in accordance with
      Section 5.4.2 and normal replacement of Equipment with Equipment of equivalent
      value and functionality). Borrower shall promptly comply with all Legal
      Requirements, including, without limitation, Prescribed Laws, and immediately
      cure properly any violation of a Legal Requirement, including, without
      limitation, Prescribed Laws; provided,
      however,
      that
      after prior written notice to Lender, Borrower, at its own expense, may contest
      by appropriate legal proceeding, promptly initiated and conducted in good faith
      and with due diligence, such Legal Requirement, provided that (i) no Event
      of Default has occurred and is continuing; (ii) such proceeding shall not
      be prohibited by the provisions of any other instrument to which Borrower is
      subject and shall not constitute a default thereunder and such proceeding shall
      be conducted in accordance with all applicable statutes, laws and ordinances;
      (iii) neither the Property nor any part thereof or interest therein will be
      in danger of being sold, forfeited, terminated, cancelled or lost;
      (iv) Borrower shall promptly upon final determination thereof comply with
      such Legal Requirement and pay all costs, interest and penalties which may
      be
      payable in connection therewith; and (v) such proceeding shall suspend the
      requirement of Borrower to comply with such Legal Requirement. Borrower shall
      notify Lender in writing within one Business Day after Borrower first receives
      notice of any such non-compliance. Borrower shall promptly repair, replace
      or
      rebuild any part of the Property that becomes damaged, worn or dilapidated
      and
      shall complete and pay for any Improvements at any time in the process of
      construction or repair. 

     

    5.4.2 Alterations.
      Borrower shall obtain Lender’s prior written consent, which consent shall not be
      unreasonably withheld or delayed, to any alterations to the Improvements, the
      cost of which is reasonably anticipated to exceed $3,500,000 (the “Threshold
      Amount”)
      or
      that will have a material adverse effect on Borrower’s financial condition, the
      use, operation or value of the Property or the Net Operating Income with respect
      to the Property, other than (a) tenant improvement work performed pursuant
      to the terms of any Existing Lease, (b) tenant improvement work performed
      pursuant to the terms and provisions of a Lease executed after the date hereof
      and not adversely affecting any structural component of any Improvements, any
      utility or HVAC system contained in any Improvements or the exterior of any
      building constituting a part of any Improvements (it being understood that
      the
      foregoing provision shall not require Lender’s consent to tenants’ exterior
      signage pursuant to any Lease approved by Lender in accordance with the terms
      and provisions of this Agreement) or (c) alterations performed in
      connection with the restoration of the Property after the occurrence of a
      Casualty or Condemnation in accordance with the terms and provisions of this
      Agreement (“Excluded
      Costs”).
      If
      Lender fails to respond to a request for consent under this Section 5.4.2 within
      ten (10) Business Days of receipt thereof, such consent shall be deemed granted,
      provided that such 

     

    
      
        
        

      

      
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    request
      shall have been accompanied by all information reasonably requested by Lender
      or
      reasonably necessary for Lender to evaluate such request and shall have clearly
      stated, in 14 point type or greater, that if Lender fails to respond to such
      request within ten (10) Business Days, Lender’s consent shall be deemed to have
      been granted. If Lender refuses to grant such consent, Lender shall specify in
      writing the reasons for such refusal. Any approval by Lender of the plans,
      specifications or working drawings for alterations of the Property shall not
      create responsibility or liability on behalf of Lender for their completeness,
      design, sufficiency or their compliance with applicable laws. Lender may
      condition any such approval upon receipt of a certificate of compliance with
      applicable laws from an independent architect, engineer, or other Person
      reasonably acceptable to Lender. If the total unpaid amounts due and payable
      with respect to alterations to the Improvements (other than such amounts to
      be
      paid or reimbursed by tenants under the Leases or paid from accounts established
      hereunder or Excluded Costs) shall at any time exceed the Threshold Amount,
      Borrower shall promptly deliver to Lender as security for the payment of such
      amounts and as additional security for Borrower’s obligations under the Loan
      Documents any of the following: (1) cash, (2) U.S. Treasury
      securities, (3) other securities having a rating acceptable to Lender and
      with respect to which the applicable Rating Agencies have delivered a Rating
      Comfort Letter, or (4) a Letter of Credit. Such security shall be in an
      amount equal to the excess of the total unpaid amounts with respect to
      alterations to the Improvements (other than such amounts to be paid or
      reimbursed by tenants under the Leases or from accounts established hereunder
      or
      Excluded Costs) over the Threshold Amount. Upon completion of the alterations
      to
      the satisfaction of Lender in its reasonable discretion Lender shall promptly
      return to Borrower such additional security.

     

    Section
      5.5 Performance
      of Other Agreements

     

    .
      Borrower shall observe and perform each and every term to be observed or
      performed by it pursuant to the terms of any agreement or instrument affecting
      or pertaining to the Property, including the Loan Documents.

     

    Section
      5.6 Cooperate
      in Legal Proceedings

     

    .
      Borrower shall cooperate fully with Lender with respect to, and permit Lender,
      at its option, to participate in, any proceedings before any Governmental
      Authority which may in any way affect the rights of Lender under any Loan
      Document.

     

    Section
      5.7 Further
      Assurances

     

    .
      Borrower shall, at Borrower’s sole cost and expense, (i) execute and
      deliver to Lender such documents, instruments, certificates, assignments and
      other writings, and do such other acts necessary or desirable, to evidence,
      preserve and/or protect the collateral at any time securing or intended to
      secure the Debt and/or for the better and more effective carrying out of the
      intents and purposes of the Loan Documents, as Lender may reasonably require
      from time to time; and (ii) upon Lender’s request therefor given from time
      to time after the occurrence and continuation of any Default or Event of Default
      pay for (a) reports of UCC, federal tax lien, state tax lien, judgment and
      pending litigation searches with respect to Borrower and the OP and
      (b) searches of title to the Property, each such search to be conducted by
      search firms reasonably designated by Lender in each of the locations reasonably
      designated by Lender.

     

     

    
      
        
        

      

      
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    Section
      5.8 Environmental
      Matters

     

    .

     

    5.8.1 Environmental
      Covenants.
      So long
      as Borrower owns or is in possession of the Property, Borrower (i) shall
      keep or cause the Property to be kept free from Hazardous Substances except
      those in compliance with all Environmental Laws or any permits issued with
      respect thereto, (ii) shall promptly notify Lender if Borrower shall become
      aware of any release of Hazardous Substances on the Property and/or if Borrower
      shall become aware that the Property is in violation of any Environmental Laws
      and/or if Borrower shall become aware of any condition on the Property which
      shall pose a threat to the health, safety or welfare of humans, and
      (iii) shall remove or remediate such Hazardous Substances and/or cure such
      violations and/or remove or remediate such threats, as applicable, as required
      by law (or as shall be reasonably required by Lender in the case of removal
      or
      remediation which is not required by law, but in response to the opinion of
      a
      licensed hydrogeologist, licensed environmental engineer or other qualified
      consultant engaged by Lender (“Lender’s
      Consultant”)
      provided that such removal, remediation or cure is reasonably necessary to
      eliminate imminent danger to the health, safety or welfare of humans and would
      customarily be performed by prudent owners of properties similar to the Property
      in similar circumstances), promptly after Borrower becomes aware of same, at
      Borrower’s sole expense, without prejudice to any rights Borrower may have
      against any responsible parties. Notwithstanding anything to the contrary in
      this Section, Borrower, Manager and/or tenants on the Property may use and
      store
      ordinary amounts of Hazardous Substances at the Property if such use or storage
      is in connection with business supplies used by Borrower, a tenant in accordance
      with the terms of its Lease or by Manager pursuant to the Management Agreement
      or is in connection with the ordinary cleaning and maintenance of the Property
      so long as such use and storage (A) does not violate any applicable
      Environmental Laws and (B) is not the subject of any specific
      recommendations in the Phase I Reports that would prohibit such use or storage.
      Nothing herein shall prevent Borrower from recovering such expenses from any
      other party that may be liable for such removal or cure. The obligations and
      liabilities of Borrower under this Section 5.8.1 shall survive any termination,
      satisfaction, or assignment of the Mortgage and the exercise by Lender of any
      of
      its rights or remedies hereunder, including, without limitation, the acquisition
      of the Property by foreclosure or a conveyance in lieu of foreclosure; provided
      that such obligations and liabilities of Borrower shall not survive after the
      date Lender or its Affiliates take title to the Property pursuant to foreclosure
      or a conveyance in lieu of foreclosure.

     

    5.8.2 Asbestos.
      Borrower represents and warrants that, to Borrower’s knowledge, no asbestos or
      any substance or material containing asbestos (collectively, “Asbestos”)
      is
      located on the Property except as may have been disclosed in the Phase I Reports
      delivered to Lender in connection with the Loan. Borrower shall not install
      in
      the Property, nor permit to be installed in the Property, Asbestos and shall
      remove any Asbestos to the extent required by applicable Legal Requirements,
      at
      Borrower’s sole expense. Borrower shall in all instances comply with, and ensure
      compliance by all occupants of the Property with, all applicable federal, state
      and local laws, ordinances, rules and regulations with respect to Asbestos
      and
      shall keep the Property free and clear of any liens imposed pursuant to such
      laws, ordinances, rules or regulations. In the event that Borrower receives
      any
      notice or advice from 

     

    
      
        
        

      

      
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    any
      governmental agency or any source whatsoever with respect to Asbestos on,
      affecting or installed on the Property, Borrower shall promptly notify
      Lender. 

     

    5.8.3 Environmental
      Monitoring.
      Except
      to the extent already disclosed in the Phase I Reports, Borrower shall give
      prompt written notices to Lender of: (a) any proceeding or inquiry by any
      party with respect to the presence of any Hazardous Substance or Asbestos on,
      under, from or about the Property, (b) all claims made or threatened by any
      third party against Borrower or the Property relating to any loss or injury
      resulting from any Hazardous Substance or Asbestos, and (c) Borrower’s
      discovery of any occurrence or condition on any real property adjoining or
      in
      the vicinity of the Property that could reasonably be expected to cause the
      Property to be subject to any investigation or cleanup pursuant to any
      Environmental Law. Upon becoming aware of the presence of mold or fungus at
      the
      Property, Borrower shall (a) undertake an investigation to identify the
      source(s) of such mold or fungus and shall develop and implement an appropriate
      remediation plan to eliminate the presence of any Toxic Mold, (b) perform or
      cause to be performed all acts reasonably necessary for the remediation of
      any
      Toxic Mold (including taking any action necessary to clean and disinfect any
      portions of the Property affected by Toxic Mold, including providing any
      necessary moisture control systems at the Property), and (c) provide evidence
      reasonably satisfactory to Lender of the foregoing. Borrower shall permit Lender
      to join and participate in, as a party if it so elects, any legal proceedings
      or
      actions initiated with respect to the Property in connection with any actual
      or
      alleged violation of Environmental Law or the presence of Hazardous Substance
      at
      the Property, and Borrower shall pay all reasonable attorneys’ fees and
      disbursements incurred by Lender in connection therewith. Upon Lender’s request,
      at any time and from time to time while the Loan is outstanding but not more
      frequently than once per calendar year, unless Lender has determined (in the
      exercise of its good faith judgment) that reasonable cause exists for the
      performance of an environmental inspection or audit of the Property, Borrower
      shall provide at Borrower’s sole expense, (i) an inspection or audit of the
      Property prepared by a licensed hydrogeologist or licensed environmental
      engineer approved by Lender indicating the presence or absence of Hazardous
      Substances on, in or near the Property, and (ii) an inspection or audit of
      the Property prepared by a duly qualified engineering or consulting firm
      approved by Lender, indicating the presence or absence of Asbestos on the
      Property; provided,
      however,
      any
      such inspection or audit requested by Lender, during the Term, in excess of
      one
      (1) inspection during each three (3) year period commencing upon the date
      hereof, shall be performed at Lender’s expense unless an Event of Default exists
      or Lender has determined (in the exercise of its good faith judgment) that
      reasonable cause exists for the performance of an environmental inspection
      or
      audit. If Borrower fails to provide such inspection or audit within sixty (60)
      days after such request Lender may order same, and Borrower hereby grants to
      Lender and its employees and agents access to the Property and a license to
      undertake such inspection or audit upon reasonable prior notice to Borrower
      and
      in a manner that does not unreasonably interfere with tenants or occupants
      thereof. The cost of such inspection or audit obtained by Lender upon Borrower’s
      failure to do so shall bear interest from the date such costs are incurred
      by
      Lender until paid at the Default Rate and shall be due and payable by Borrower
      to Lender within ten (10) days after the date Lender makes written demand
      therefor, and if not so paid, may be added to the Debt. In the event that any
      environmental site assessment report prepared in connection with such inspection
      or audit recommends that an operations and maintenance plan be implemented
      for
      Asbestos or any Hazardous Substance, Borrower shall cause such operations and
      maintenance plan to be prepared and implemented at Borrower’s expense upon
      request of Lender, and with respect to any Toxic 

     

    
      
        
        

      

      
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    Mold,
      Borrower shall take all action necessary to clean and disinfect any portions
      of
      the Improvements affected by Toxic Mold in or about the Improvements, including
      providing any necessary moisture control systems at the Property. In the event
      that any investigation, site monitoring, containment cleanup, removal,
      restoration, or other work of any kind is reasonably necessary under an
      applicable Environmental Law (the “Remedial
      Work”),
      Borrower shall promptly commence and thereafter diligently prosecute to
      completion all such Remedial Work, provided that in any event Borrower shall
      complete such Remedial Work within the time required by applicable Environmental
      Law, and provided, further, that Borrower’s obligation to perform Remedial Work
      shall be without prejudice to any rights Borrower may have against responsible
      parties. All Remedial Work shall be performed by contractors approved in advance
      by Lender, and under the supervision of a consulting engineer approved by
      Lender. All costs and expenses of such Remedial Work shall be paid by Borrower
      including, without limitation, Lender’s reasonable attorneys’ fees and
      disbursements incurred in connection with monitoring or review of such Remedial
      Work. Nothing herein shall prevent Borrower from recovering such expenses from
      any other party that may be liable for such Remedial Work. In the event Borrower
      shall fail to timely commence, or cause to be commenced, or fail to diligently
      prosecute to completion, such Remedial Work, Lender may, but shall not be
      required to, cause such Remedial Work to be performed, and all costs and
      expenses thereof, or incurred in connection therewith, shall bear interest
      from
      the date such costs are incurred by Lender until paid at the Default Rate and
      shall be due and payable by Borrower to Lender within ten (10) days after the
      date Lender makes written demand therefor, and if not so paid, may be added
      to
      the Debt.

     

    5.8.4 Underground
      Storage Tanks.
      Borrower shall not install or permit to be installed on the Property any
      underground storage tank.

     

    Section
      5.9 Title
      to the Property

     

    .
      Borrower will warrant and defend the title to the Property, and the validity
      and
      priority of all Liens granted or otherwise given to Lender under the Loan
      Documents, subject only to Permitted Encumbrances, against the claims of all
      Persons.

     

    Section
      5.10 Leases

     

    .

     

    5.10.1 All
      new
      Leases shall be subordinate to the Mortgage and the tenant thereunder shall
      agree to attorn to Lender either pursuant to the Lease or a subordination,
      nondisturbance and attornment agreement executed by such tenant and Lender.
      None
      of the Leases shall contain any option to purchase, any right of first refusal
      to purchase or any right by a tenant to terminate the lease term (except for
      termination rights (i) set forth in Leases executed prior to, or on, the
      date hereof or (ii) arising from a taking or the destruction of all or
      substantially all of the Property or all or substantially all of a tenant’s
      demised premises). Leases executed after the date hereof shall not contain
      any
      provisions which adversely affect the Property or which might adversely affect
      the rights of any holder of the Loan without the prior written consent of
      Lender. Each tenant shall conduct business only in that portion of the 

     

    
      
        
        

      

      
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    Property
      covered by its Lease. Upon request, Borrower shall furnish Lender with executed
      copies of all Leases.

     

    5.10.2 Borrower
      shall not, without the prior consent of Lender, which consent shall not be
      unreasonably withheld or conditioned (i) enter into any Material Lease of
      all or any part of the Property, (ii) cancel, terminate (other than as a
      result of a tenant default thereunder), abridge or otherwise modify in any
      material respect the terms of any Material Lease unless such action is required
      by the terms thereof, or accept a surrender thereof, (iii) consent to any
      assignment of or subletting under any Material Lease not in accordance with
      its
      terms, (iv) cancel, terminate, abridge or otherwise modify any guaranty of
      any Material Lease or the terms thereof, (v) accept prepayments of
      installments of Rents for a period of more than one (1) month in advance (other
      than estimated payments of taxes and reimbursable expenses paid by tenants
      pursuant to their Leases) or (vi) further assign the whole or any part of
      the Leases or the Rents other than in connection with a Transfer and Assumption.
      If Lender fails to respond to a request for consent under this Section 5.10.2
      within ten (10) Business Days of receipt thereof, such consent shall be deemed
      granted, provided that such request shall have been accompanied by all
      information requested by Lender or reasonably necessary for Lender to evaluate
      such request and shall have clearly stated, in 14 point type or greater, that
      if
      Lender fails to respond to such request within ten (10) Business Days, Lender’s
      consent shall be deemed to have been granted. In the event that Lender refuses
      to grant any such consent, Lender shall specify in writing the reasons for
      such
      refusal. In addition, Borrower shall not (A) lease all or any part of the
      Property, (B) cancel, terminate (other than as a result of a tenant default
      thereunder), abridge or otherwise modify the terms of any Lease in any material
      respect, or accept a surrender thereof, (C) consent to any assignment of or
      subletting under any Lease not in accordance with its terms or (D) cancel,
      terminate, abridge or otherwise modify in any material respect any guaranty
      of
      any Lease or the terms thereof, unless such actions are exercised for a
      commercially reasonable purpose in arms-length transactions for market rate
      terms. The foregoing shall not apply to any Lease or license entered into with
      a
      Taxable REIT Subsidiary.

     

    5.10.3 Notwithstanding
      the provisions of Section 5.10.2 above, provided that no Event of Default
      is continuing, renewals, amendments and modifications of existing Leases and
      proposed leases, shall not be subject to the prior approval of Lender provided
      (i) the proposed lease would be a Minor Lease or the existing Lease as
      amended or modified or the renewal Lease is a Minor Lease, (ii) the
      proposed lease shall be written substantially in accordance with the standard
      form of Lease which shall have been approved by Lender, (iii) the Lease as
      amended or modified or the renewal Lease or series of leases or proposed lease
      or series of leases: (a) shall provide for net effective rental rates comparable
      to existing local market rates, (b) shall have a term of not less than three
      (3)
      years or greater than ten (10) years, (c) shall provide for automatic
      self-operative subordination to the Mortgage and, at Lender’s option, (x)
      attornment to Lender and (y) the unilateral right by Lender, at the option
      of
      Lender, to subordinate the Lien of the Mortgage to the Lease, and (d) shall
      not contain any option to purchase, any right of first refusal to purchase,
      any
      right to terminate (except in the event of the destruction or condemnation
      of
      substantially all of the Property), any requirement for a non-disturbance or
      recognition agreement, or any other provision which might adversely affect
      the
      rights of Lender under the Loan Documents in any material respect. Borrower
      shall deliver to Lender copies of all Leases which are entered into pursuant
      to
      the preceding sentence together with Borrower’s certification that it has
      satisfied all of the conditions of the preceding sentence within ten (10) days
      after the 

     

    
      
        
        

      

      
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    execution
      of the Lease. With respect to any Lease or proposed renewal, extension or
      modification of an existing Lease that requires Lender’s consent under this
      Section 5.10.3, provided that no Event of Default is continuing, if
      Borrower provides Lender with a written request for approval (which written
      request shall specifically refer to this Section 5.10.3 and shall
      explicitly state that failure by Lender to approve or disapprove within ten
      (10)
      Business Days will constitute a deemed approval) and Lender fails to reject
      the
      request in writing delivered to Borrower within ten (10) Business Days after
      receipt by Lender of the request, the proposed Lease or proposed renewal,
      extension or modification of an existing Lease shall be deemed approved by
      Lender, and Borrower shall be entitled to enter into such proposed Lease or
      proposed renewal, extension or modification of an existing Lease.

     

    5.10.4 Borrower
      (i) shall observe and perform all the material obligations imposed upon the
      lessor, grantor or licensor, as applicable, under the Leases and shall not
      do or
      permit to be done anything to impair the value of the Leases as security for
      the
      Debt; (ii) shall promptly send copies to Lender of all notices of default
      which Borrower shall send or receive thereunder; (iii) shall enforce all
      the material terms, covenants and conditions contained in the Leases upon the
      part of the lessee, grantee or licensee, as applicable, thereunder to be
      observed or performed, short of termination thereof (unless by reason of default
      thereunder); (iv) shall not collect any of the Rents (other than estimated
      payments of taxes and reimbursable expenses paid by tenants pursuant to their
      Leases) more than one (1) month in advance; (v) shall not execute any other
      assignment of the lessor’s interest in the Leases or the Rents except in
      connection with a Transfer and Assumption; (vi) shall, upon request of
      Lender, request and use commercially reasonable efforts to obtain and deliver
      to
      Lender tenant estoppel certificates from each commercial tenant at the Property
      in form and substance reasonably satisfactory to Lender, provided that Borrower
      shall not be required to deliver such certificates more frequently than two
      (2)
      times in any calendar year; and (vii) shall execute and deliver at the
      request of Lender all such further assurances, confirmations and assignments
      in
      connection with the Property as Lender shall from time to time reasonably
      require.

     

    5.10.5 All
      security deposits of tenants, whether held in cash or any other form, if cash,
      shall be deposited by Borrower at such commercial or savings bank or banks
      and
      shall be held in compliance with applicable Legal Requirements, as may be
      reasonably satisfactory to Lender. Any bond or other instrument which Borrower
      is permitted to hold in lieu of cash security deposits under any applicable
      legal requirements shall be maintained in full force and effect in the full
      amount of such deposits unless replaced by cash deposits as hereinabove
      described, shall (if issued after the date hereof) be fully assignable to Lender
      and shall, in all respects, comply with any applicable legal requirements and
      otherwise be reasonably satisfactory to Lender. Borrower shall, upon request,
      provide Lender with evidence reasonably satisfactory to Lender of Borrower’s
      compliance with the foregoing. Following the occurrence and during the
      continuance of any Event of Default, Borrower shall, upon Lender’s request, if
      permitted by any applicable legal requirements, turn over to Lender the security
      deposits (and any interest theretofore earned thereon) with respect to all
      or
      any portion of the Property, to be held by Lender subject to the terms of the
      Leases.

     

    Section
      5.11 Estoppel
      Statement

     

     

    
      
        
        

      

      
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    .
      After
      request by Lender, Borrower shall within ten days furnish Lender with a
      statement addressed to Lender, its successors and assigns, duly acknowledged
      and
      certified, setting forth (i) the unpaid Principal, (ii) the Interest
      Rate, (iii) the date installments of interest and/or Principal were last
      paid, (iv) any offsets or defenses to the payment of the Debt, and
      (v) that the Loan Documents are valid, legal and binding obligations and
      have not been modified or if modified, giving particulars of such
      modification.

     

    Section
      5.12 Property
      Management

     

    .

     

    5.12.1 Management
      Agreement.
      Borrower shall maintain, or cause to be maintained, the Management Agreement
      in
      full force and effect and timely perform all of Borrower’s obligations
      thereunder and enforce performance in all material respects of all obligations
      of the Manager thereunder, and except as otherwise permitted by the Loan
      Documents, not permit the termination or amendment of the Management Agreement
      unless the prior written consent of Lender is first obtained, which consent
      shall not be unreasonably withheld, conditioned or delayed. Borrower shall
      cause
      the Manager to enter into an assignment and subordination of the management
      agreement in form satisfactory to Lender (the “Subordination
      of Management Agreement”).
      The
      Subordination of Management Agreement shall assign and subordinate the Manager’s
      interests in the Property and all fees and other rights of the Manager pursuant
      to the Management Agreement to the rights of Lender. Upon an Event of Default,
      Borrower shall, at Lender’s request made at any time while such Event of Default
      continues, terminate, or cause the termination of, the Management Agreement.
      After the date hereof, Borrower shall not enter into any agreement relating
      to
      the management of the Property with any party without the express written
      consent of Lender (which consent shall not be unreasonably withheld to the
      extent that such manager is an affiliate of Borrower); provided,
      however,
      with
      respect to a new manager of the Property (but not a leasing agent or
      subcontractor appointed in accordance with the Management Agreement) such
      consent may also be conditioned upon Borrower delivering (i) a Rating
      Comfort Letter with respect to such new manager and management agreement (other
      than a Qualified Manager that is Controlled (in the sense of clause (ii) of
      the
      defined term “Control”) by the REIT), and (ii) evidence satisfactory to
      Lender (which shall include, at the request of Lender, a legal non-consolidation
      opinion acceptable to Lender) that the single purpose nature and bankruptcy
      remoteness of Borrower, its shareholders, partners or members, as the case
      may
      be, after the engagement of the new manager are in accordance with the
      requirements of the Rating Agencies. If at any time Lender consents to the
      appointment of a new manager, such new manager and Borrower shall, as a
      condition of Lender’s consent, execute an assignment and subordination of such
      management agreement in the form then used by Lender.

     

    5.12.2 Termination
      of Manager.
      Borrower, upon the request of Lender, shall terminate the Manager, without
      penalty or fee, if at any time during the Term (a) the Manager shall become
      insolvent or a debtor in any bankruptcy or insolvency proceeding, (b) there
      exists an Event of Default for which Lender has not accepted a cure thereof,
      (c) the Maturity Date has occurred and the Loan has not been repaid or
      (d) the Manager’s gross negligence, malfeasance or willful misconduct or
      the occurrence of a default by Manager under the Management Agreement and its
      continuance beyond any applicable notice or cure period. At such time as the
      Manager 

     

    
      
        
        

      

      
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    may
      be
      removed pursuant to and in accordance with the terms and provisions of the
      Loan
      Documents, a replacement manager and management agreement acceptable to Lender
      and the applicable Rating Agencies in their sole discretion shall assume
      management of the Property and shall receive a property management fee not
      to
      exceed the then current market rates.

     

    Section
      5.13 Special
      Purpose Bankruptcy Remote Entity

     

    .
      Borrower shall at all times be a Special Purpose Bankruptcy Remote Entity.
      Borrower shall not, directly or indirectly, make any change, amendment or
      modification to its organizational documents, or otherwise take any action
      which
      could result in Borrower not being a Special Purpose Bankruptcy Remote Entity.
      A
“Special
      Purpose Bankruptcy Remote Entity”
shall
      have the meaning set forth on Schedule 5 hereto.

     

    Section
      5.14 Assumption
      in Non-Consolidation Opinion

     

    .
      Borrower and the OP shall each conduct its business so that the assumptions
      (with respect to each Person) made in that certain substantive non-consolidation
      opinion letter dated the date hereof delivered by Borrower’s counsel in
      connection with the Loan, shall be true and correct in all
      respects.

     

    Section
      5.15 Change
      in Business or Operation of Property

     

    .
      Borrower shall not purchase or own any real property other than the Property
      and
      shall not enter into any line of business other than the ownership and operation
      of the Property, or make any material change in the scope or nature of its
      business objectives, purposes or operations, or undertake or participate in
      activities other than the continuance of its present business or otherwise
      cease
      to operate the Property as an office property or terminate such business for
      any
      reason whatsoever (other than temporary cessation in connection with renovations
      to the Property).

     

    Section
      5.16 Debt
      Cancellation

     

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

     

    Section
      5.17 Affiliate
      Transactions

     

    .
      Borrower shall not enter into, or be a party to, any transaction with an
      Affiliate of Borrower or any of the members of Borrower except in the ordinary
      course of business and on terms which are fully disclosed to Lender in advance
      and are no less favorable to Borrower than would be obtained in a comparable
      arm’s length transaction with an unrelated third party.

     

    Section
      5.18 Zoning

     

    .
      Borrower shall not initiate or consent to any zoning reclassification of any
      portion of the Property or seek any variance under any existing zoning ordinance
      or use or permit the use of any portion of the Property in any manner that
      could
      result in such use becoming a non 

     

    
      
        
        

      

      
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    conforming
      use under any zoning ordinance or any other applicable land use law, rule or
      regulation, without the prior consent of Lender.

     

    Section
      5.19 No
      Joint Assessment

     

    .
      Borrower shall not suffer, permit or initiate the joint assessment of the
      Property (i) with any other real property constituting a tax lot separate
      from the Property, and (ii) with any portion of the Property which may be
      deemed to constitute personal property, or any other procedure whereby the
      lien
      of any taxes which may be levied against such personal property shall be
      assessed or levied or charged to the Property.

     

    Section
      5.20 Principal
      Place of Business

     

    .
      Borrower shall not change its principal place of business or chief executive
      office without first giving Lender 30 days’ prior notice.

     

    Section
      5.21 Change
      of Name, Identity or Structure

     

    .
      Borrower shall not change its name, identity (including its trade name or names)
      or Borrower’s corporate, partnership or other structure without notifying Lender
      of such change in writing at least thirty (30) days prior to the effective
      date
      of such change and, in the case of a change in Borrower’s structure, without
      first obtaining the prior written consent of Lender. Borrower shall execute
      and
      deliver to Lender, prior to or contemporaneously with the effective date of
      any
      such change, any financing statement or financing statement change required
      by
      Lender to establish or maintain the validity, perfection and priority of the
      security interest granted herein. At the request of Lender, Borrower shall
      execute a certificate in form satisfactory to Lender listing the trade names
      under which Borrower intends to operate the Property, and representing and
      warranting that Borrower does business under no other trade name with respect
      to
      the Property.

     

    Section
      5.22 Indebtedness

     

    .
      Borrower shall not directly or indirectly create, incur or assume any
      indebtedness other than (i) the Debt and (ii) unsecured trade payables incurred
      in the ordinary course of business relating to the ownership and operation
      of
      the Property and (iii) Permitted
      Equipment Financing (hereinafter defined), (A), which in the case of such
      unsecured trade payables, are not evidenced by a note, (B) such trade payables
      and Permitted Equipment Financing do not exceed, at any time, a maximum
      aggregate amount of two percent (2%) of the original amount of the Principal
      and
      (C) all such unsecured trade payables are paid within sixty (60) days of
      the date incurred (collectively, “Permitted
      Indebtedness”).
      As
      used herein, “Permitted
      Equipment Financing”
      means
      equipment financing that is (i) entered into in the ordinary course of
      Borrower’s business, (ii) for equipment related to the ownership and operation
      of the Property whose removal would not materially damage or impair the value
      of
      the Property, and (iii) which is secured only by the financed equipment and
      proceeds thereof.

     

    Section
      5.23 Licenses

     

    .
      Borrower shall not Transfer any License required for the operation of the
      Property.

     

     

    
      
        
        

      

      
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    Section
      5.24 Compliance
      with Restrictive Covenants, etc.

     

    Borrower
      will not amend, modify, supplement, waive in any material respect, cancel,
      terminate or release any Operating Agreement, easements, restrictive covenants
      or other Permitted Encumbrances, or suffer, consent to or permit any of the
      foregoing, without Lender’s prior written consent, which consent may be granted
      or denied in Lender’s sole discretion. 

     

    Section
      5.25 ERISA

     

    .

     

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

     

    (2) Borrower
      shall not maintain, sponsor, contribute to or become obligated to contribute
      to,
      or suffer or permit any ERISA Affiliate of Borrower to, maintain, sponsor,
      contribute to or become obligated to contribute to, any Plan or permit the
      assets of Borrower to become “plan assets,” whether by operation of law or under
      regulations promulgated under ERISA.

     

    (3) Borrower
      shall deliver to Lender such certifications or other evidence from time to
      time
      throughout the Term, as requested by Lender in its sole discretion, that
      (A) Borrower is not an “employee benefit plan” as defined in Section 3(3)
      of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within
      the meaning of Section 3(32) of ERISA; (B) Borrower is not subject to state
      statutes regulating investments and fiduciary obligations with respect to
      governmental plans; and (C) one or more of the following circumstances is
      true:

     

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

     

    (ii) Less
      than
      twenty-five percent (25%) of each outstanding class of equity interests in
      Borrower are held by “benefit plan investors” within the meaning of 29 C.F.R.
§ 2510.3-101(f)(2); or

     

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

     

    Section
      5.26 Transfers

     

    .

     

    5.26.1 Transfers
      Prohibited.
      Borrower shall not directly or indirectly make, suffer or permit the occurrence
      of any Transfer except as expressly permitted pursuant to Section 5.26.5 and
      Section 5.26.6.

     

     

    
      
        
        

      

      
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    5.26.2 Lender’s
      Reliance.
      Borrower acknowledges that Lender has examined and relied on the
      creditworthiness and experience of Borrower in owning and operating properties
      such as the Property in agreeing to make the Loan, and that Lender will continue
      to rely on Borrower’s ownership of the Property as a means of maintaining the
      value of the Property as security for repayment of the Debt. Borrower
      acknowledges that Lender has a valid interest in maintaining the value of the
      Property so as to ensure that, should Borrower default in the repayment of
      the
      Debt, Lender can recover the Debt by a sale of the Property.

     

    5.26.3 Transfer
      Defined.
      “Transfer”
shall
      mean a sale, conveyance, mortgage, grant, bargain, encumbrance, pledge,
      assignment, lease, grant of options with respect to, or other transfer or
      disposition of (directly or indirectly, voluntarily or involuntarily, by
      operation of law or otherwise, and whether or not for consideration or of
      record) the Property or any part thereof or any legal or beneficial interest
      therein, or a Sale or Pledge of an interest in any Restricted Party, other
      than
      pursuant to Leases of space in the Improvements to tenants in accordance with
      the provisions of Section 5.10, licenses of rights to a Taxable REIT Subsidiary
      to operate any fitness center, provide concierge services or in connection
      with
      parking agreements and Permitted Encumbrances. A Transfer shall include, but
      not
      be limited to, (i) an installment sales agreement wherein Borrower agrees
      to sell the Property or any part thereof for a price to be paid in installments;
      (ii) an agreement by Borrower leasing all or a substantial part of the
      Property for other than actual occupancy by a space tenant thereunder or a
      sale,
      assignment or other transfer of, or the grant of a security interest in,
      Borrower’s right, title and interest in and to any Leases or any Rents;
      (iii) if a Restricted Party is a corporation, any merger, consolidation or
      Sale or Pledge of such corporation’s stock or the creation or issuance of new
      stock such that more than ten percent (10%) of such corporation’s stock shall be
      vested in a party or parties who are not stockholders as of the date hereof;
      (iv) if a Restricted Party is a limited or general partnership or joint
      venture, any merger or consolidation of such Restricted Party or the change,
      removal, resignation or addition of a general partner thereof or the Sale or
      Pledge of the partnership interest of any general partner of such Restricted
      Party or any profits or proceeds relating to such partnership interest, or
      the
      Sale or Pledge of limited partnership interests of such Restricted Party or
      any
      profits or proceeds relating to such limited partnership interests or the
      creation or issuance of new limited partnership interests of such Restricted
      Party; (v) if a Restricted Party is a limited liability company, any merger
      or consolidation of such Restricted Party or the change, removal, resignation
      or
      addition of a managing member or non member manager (or if no managing member,
      any member) of such Restricted Party or the Sale or Pledge of the membership
      interest of a managing member (or if no managing member, any member) of such
      Restricted Party or any profits or proceeds relating to such membership
      interest, or the Sale or Pledge of non managing membership interests of such
      Restricted Party or the creation or issuance of new non managing membership
      interests of such Restricted Party such that more than ten percent (10%) of
      such
      limited liability company’s non-managing membership interest shall be vested in
      a party or parties who are not members as of the date hereof; (vi) if a
      Restricted Party is a trust or nominee trust, any merger, consolidation or
      the
      Sale or Pledge of the legal or beneficial interest in a Restricted Party or
      the
      creation or issuance of new legal or beneficial interests; or (vii) the
      removal or the resignation of the managing agent (including, without limitation,
      an Affiliated Manager) without Lender’s consent other than in accordance with
      Section 5.12.

     

    5.26.4 No
      Impairment Required.
      Lender
      shall not be required to demonstrate any actual impairment of its security
      or
      any increased risk of default hereunder in order to declare the 

     

    
      
        
        

      

      
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    Debt
      immediately due and payable upon any Transfer in violation of this Section
      5.26
      without Lender’s consent. This provision shall apply to every Transfer
      regardless of whether voluntary or not, or whether or not Lender has consented
      to any previous Transfer. Lender’s consent to one Transfer shall not be deemed
      to be a waiver of Lender’s right to require such consent to any future Transfer.
      Any Transfer made in contravention of this Section 5.26 shall be null and void
      and of no force and effect. Borrower agree to bear and shall pay or reimburse
      Lender on demand for all reasonable expenses (including, without limitation,
      reasonable attorneys’ fees and disbursements, title search costs and title
      insurance endorsement premiums) incurred by Lender in connection with the
      review, approval and documentation of any such Transfer, except as provided
      herein.

     

    5.26.5 Permitted
      Transfers.
      Notwithstanding anything to the contrary contained in this Section 5.26, the
      following Transfers (“Permitted
      Transfers”)
      shall
      not require the prior written consent of Lender:

     

    (a) Transfers
      of direct or indirect interests in any Restricted Party provided that the
      following conditions are satisfied:

     

    (i) after
      taking into account any prior Transfers pursuant to this subsection, whether
      to
      the proposed transferee or otherwise, no such Transfer (or series of Transfers)
      shall result in (1) the proposed transferee, together with all members of
      his/her immediate family or any Affiliates thereof, owning in the aggregate
      (directly, indirectly or beneficially) more than forty-nine percent (49%) of
      the
      interests in Borrower (or any entity directly or indirectly holding an interest
      in Borrower that is a Restricted Party), or (2) a Transfer in the aggregate
      of more than forty-nine percent (49%) of the interests in Borrower as of the
      date hereof, except in either case for Transfers to a direct or indirect
      interest holder of Borrower as of the date hereof, or any Affiliate thereof,
      including any Taxable REIT Subsidiary, provided that if reasonably requested
      by
      Lender or if requested by any Rating Agency, Borrower shall deliver a
      non-consolidation opinion acceptable to Lender and the Rating Agencies with
      respect to such transferee which may be relied upon by Lender, the Rating
      Agencies and their successors and assigns;

     

    (ii) after
      giving effect to such Transfer, the REIT shall continue to own not less than
      a
      fifty-one percent (51%) direct general and/or limited partnership interest
      in
      the OP and the REIT shall continue to Control (in the sense of clause (ii)
      of
      the defined term “Control”) Borrower and, subject to the rights of Manager under
      the Management Agreement (or any replacement manager under a replacement
      management agreement with respect to the Property, each as approved by Lender
      in
      accordance with Section 5.12 of this Agreement), the day-to-day operations
      of
      the Property;

     

    (iii) Borrower
      shall give Lender notice of such Transfer together with copies of all
      instruments effecting such transfer not less than ten (10) days prior to the
      date of such Transfer;

     

    (iv) no
      Event
      of Default or event which with the giving of notice or the passage of time
      would
      constitute an Event of Default shall have occurred and remain uncured or
      unwaived;

     

     

    
      
        
        

      

      
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    (v) the
      single purpose nature and bankruptcy remoteness of Borrower and its
      shareholders, partners or members after such transfer, shall satisfy Lender’s
      then current applicable underwriting criteria and requirements; and

     

    (vi) Lender
      shall have received payment of, or reimbursement for, all costs and expenses
      incurred by Lender in connection with such Transfer (including, but not limited
      to, reasonable attorneys’ fees and costs and expenses of the Rating
      Agencies).

     

    Notwithstanding
      the foregoing, in the event that such Transfer is (A) by a limited partner
      of
      the OP of such limited partner’s limited partnership interest in the OP, then
      Borrower shall not be required to satisfy subsections (a)(iii), (a)(iv) or
      (a)(vi) above so long as Borrower has satisfied subsections (a)(i), (a)(ii)
      and
      (a)(v) above or (B) is to a Taxable REIT Subsidiary, then Borrower shall not
      be
      required to satisfy subsections (a)(iii) or (a)(v) (provided, that in any such
      case, Borrower shall continue to be a Special Purpose Bankruptcy Remote Entity
      after giving effect to such Transfer) so long as Borrower has satisfied
      subsections (a)(i), (a)(ii), (a)(iv) and (a)(vi) above.

     

    (b) Intentionally
      omitted.

     

    (c)  the
      Sale
      or Pledge of stock in the REIT (the “Traded
      Equity”),
      provided such stock is listed on the New York Stock Exchange or such other
      nationally recognized stock exchange, or any Sale or Pledge.

     

    (d) (A) the
      issuance of any securities, options, warrants or other interests in the REIT
      or
      any entity owning an interest in the REIT, (B) the merger or consolidation
      of the REIT or (C) the merger or consolidation of the OP or (D) the merger
      of consolidation of any other Restricted Party, provided that in the case of
      each of (B) and (C) above, the surviving entity shall be the REIT and/or the
      OP,
      as applicable, and, in the case of each of (B), (C) and (D) above, after giving
      effect to such merger or consolidation, the REIT shall continue to own not
      less
      than a fifty-one percent (51%) direct general and/or limited partnership
      interest in the OP and the REIT shall continue to Control (in the sense of
      clause (ii) of the defined term “Control”) Borrower and, subject to the rights
      of Manager under the Management Agreement (or any replacement manager under
      a
      replacement management agreement with respect to the Property, each as approved
      by Lender in accordance with Section 5.12.1 of this Agreement), the day to
      day
      operations of the Property.

     

    (e) without
      in any way limiting any other Permitted Transfers under this Section 5.26.5,
      transfers by the REIT, the OP and/or their respective Affiliates of up to
      one-hundred percent (100%) of the direct or indirect ownership interests in
      Borrower and/or other indirect ownership interests in the Property to a
      Qualified Transferee provided that the following conditions are
      met:

     

    (i) no
      Event
      of Default or event which with the giving of notice or the passage of time
      would
      constitute an Event of Default shall have occurred and remain
      uncured;

     

    (ii) Lender
      shall have received a Rating Comfort Letter with respect to such
      Transfer;

     

     

    
      
        
        

      

      
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    (iii) Borrower
      shall deliver to Lender a non-consolidation opinion acceptable to Lender and
      the
      Rating Agencies which may be relied upon by Lender, the Rating Agencies and
      their successor and assigns;

     

    (iv) the
      single purpose nature and bankruptcy remoteness of Borrower and its
      shareholders, partners or members after such Transfer, shall satisfy Lender’s
      then current applicable underwriting criteria and requirements;

     

    (v) the
      property manager that shall manage the day to day operations of the Property
      shall be a Qualified Manager; 

     

    (vi) Lender
      shall have received payment of, or reimbursement for, all costs and expenses
      incurred by Lender in connection with such transfer (including, but not limited
      to, reasonable attorneys’ fees and costs and expenses of the Rating
      Agencies);

     

    (vii) concurrently
      with the consummation of such Transfer, Borrower shall pay to Lender a transfer
      fee in the amount of 0.25% of the then unpaid Principal; and

     

    (viii) If
      the
      Qualified Transferee assumes in writing the obligation of the OP under the
      Non-Recourse Guaranty (pursuant to documentation reasonably satisfactory to
      Lender), and Lender accepts the Qualified Transferee as an acceptable
      replacement guarantor (which consent will not be unreasonably withheld), then
      the OP and any other Guarantor shall be released from all liability under the
      Non-Recourse Guaranty, and Lender shall execute and deliver to the OP such
      documents as reasonably requested by the OP to evidence such release.
      Notwithstanding anything to the contrary contained herein, Robert F. Maguire
      III
      shall be deemed an acceptable replacement guarantor for the purposes of this
      Section 5.26.5(e)(viii), provided that he has a net worth of at least $200
      million at the time of any such Transfer.

     

    (f) without
      in any way limiting any other Permitted Transfers under this Section 5.26.5,
      the
      restructuring of the ownership interests in the Property held by the REIT,
      the
      OP or any entity holding any direct or indirect interests in the REIT or the
      OP
      (including the adjustment of partnership units held by partners in the OP to
      reflect redemptions pertaining to the limited partner interests in the OP)
      or
      the Borrower, provided that the following conditions are met:

     

    (i) no
      Event
      of Default or event which with the giving of notice or the passage of time
      would
      constitute an Event of Default shall have occurred and remain uncured or
      unwaived;

     

    (ii) such
      restructuring does not reduce the REIT’s or the OP’s aggregate ownership
      interests in the Property;

     

    (iii) in
      the
      event that such restructuring shall result in any Person, together with any
      Affiliates thereof, that prior to such restructuring, owned in the aggregate
      (directly, indirectly or beneficially) less than forty-nine percent (49%) of
      the
      interests in Borrower (or any entity directly or indirectly holding an interest
      in Borrower), owning in the aggregate (directly, indirectly or beneficially)
      more than forty-nine percent (49%) of the interests in Borrower (or any entity
      directly or indirectly holding an interest in Borrower), 

     

    
      
        
        

      

      
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    then
      Borrower shall deliver a non-consolidation opinion acceptable to Lender and
      the
      Rating Agencies with respect to such entity which may be relied upon by Lender,
      the Rating Agencies and their successors and assigns;

     

    (iv) In
      the
      event that such restructuring requires a new non-consolidation opinion pursuant
      to subsection (iii) above, Borrower shall give Lender notice of such
      restructuring together with copies of all instruments effecting such
      restructuring not less than ten (10) days prior to the date of such
      restructuring;

     

    (v) In
      the
      event that such restructuring requires a new non-consolidation opinion pursuant
      to subsection (iii) above, Lender shall have received payment of, or
      reimbursement for, all costs and expenses incurred by Lender in connection
      with
      such restructuring (including, but not limited to, reasonable attorneys’ fees
      and costs and expenses of the Rating Agencies).

     

    (g) notwithstanding
      anything to the contrary contained herein (including the provisions of Section
      5.27 below), pledges (but not the foreclosure thereon) by the REIT, the OP
      or
      any entity holding any direct or indirect interests in the REIT, the OP or
      the
      Borrower of their direct or indirect ownership interest in Borrower or any
      entity holding any direct or indirect interests in the Borrower to any
      institutional lender (including investors in syndicated loan facilities or
      the
      agent for such investors) providing a corporate line of credit or other
      financing to the REIT, the OP or any entity holding any direct or indirect
      interests in the REIT or the OP or the Borrower, provided that the value of
      the
      Property which is indirectly pledged as collateral under such corporate line
      of
      credit or other financing constitutes no more than thirty-three percent (33%)
      of
      the total value of all assets directly or indirectly securing such line of
      credit or other financing, and provided that the following conditions are met:
      

     

    (i) no
      Event
      of Default or event which with the giving of notice or the passage of time
      would
      constitute an Event of Default shall have occurred and remain uncured or
      unwaived; and

     

    (ii) Lender
      shall have received payment of, or reimbursement for, all costs and expenses
      incurred by Lender in connection with such pledges (including, but not limited
      to, reasonable attorneys’ fees and costs and expenses of the Rating
      Agencies).

     

    Lender
      shall respond to any requests made by Borrower pursuant to this Section 5.26.5
      in a prompt manner. In the event that Lender claims that Borrower has not
      satisfied any of the requirements of this Section 5.26.5, Lender shall specify
      in writing the reason why any conditions are deemed not satisfied.

     

    Any
      provisions of this Section 5.26.5 which require more conditions to be satisfied
      in connection with any particular Permitted Transfer than other provisions
      under
      this Section 5.26.5 (relating to other Permitted Transfers) which require fewer
      conditions to be satisfied shall not be deemed to be a limitation or
      modification on the Transfer rights provided hereunder containing such fewer
      conditions.

     

     

    
      
        
        

      

      
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    Notwithstanding
      anything to the contrary contained herein, and without limiting any of the
      Transfers or rights contained in this Section
      5.26.5,
      Lender
      agrees that, provided no Event of Default has occurred and is continuing, a
      Transfer of an interest in Borrower shall not require the consent of Lender
      and
      no transfer fee shall be payable in connection therewith, provided that (i)
      such
      Transfer is of an interest in the OP or any direct or indirect owner of the
      OP
      that occurs by gift, devise or bequest or by operation of law upon the death
      or
      incapacity of a natural person that was the holder of such interest to a member
      of the immediate family of such interest holder or a trust established for
      the
      benefit of such immediate family member, provided that (A) no such Transfer
      shall result in a change of the day to day operations of the Property, (B)
      Borrower shall give Lender notice of such Transfer together with copies of
      all
      instruments effecting such Transfer not more than ten (10) days after the date
      of such Transfer, (C) such Transfer shall not cause a default by Borrower of
      the
      single purpose bankruptcy remote provisions set forth in Section
      5.13
      hereof,
      (D) if any such Transfer would result in a change of Control of Borrower or
      the
      OP Borrower, at Borrower’s sole cost and expense, shall, within thirty (30) days
      after any such Transfer, (a) deliver (or cause to be delivered) a substantive
      non-consolidation opinion to Lender and the Rating Agencies with respect to
      Borrower and the OP and such transferee in form and substance satisfactory
      to
      Lender and the Rating Agencies, and (b) reimburse Lender for all reasonable
      expenses incurred by Lender in connection with such Transfer, (E) if any such
      Transfer would result in a change of Control of Borrower or the OP and occurs
      prior to the occurrence of a Secondary Market Transaction, such Transfer is
      approved by Lender in writing within thirty (30) days after any such Transfer,
      which approval shall not be unreasonably withheld, (F) if any such Transfer
      would result in a change of Control of Borrower or the OP and occurs after
      the
      occurrence of a Secondary Market Transaction, Borrower, at Borrower’s sole cost
      and expense, shall, within thirty (30) days after any such Transfer, (a) deliver
      (or cause to be delivered) a Rating Comfort Letter to Lender, and (b) obtain
      the
      prior written consent of Lender which shall not be unreasonably withheld or
      delayed, or (ii) such Transfer is of a direct or indirect interest in the OP
      related to or in connection with the estate and/or gift planning of such
      transferor to (A) the immediate family members of such transferor or Key
      Principal(s), including without limitation, the spouse, children or
      grandchildren of such transferor (B) a trust established for the benefit of
      the
      transferor, a Key Principal(s) and/or any of the parties described in the
      preceding clause (A) provided that (a) after giving effect to such Transfer,
      Key
      Principal(s) and/or family trusts or other entities Controlled by Key
      Principal(s) shall continue to Control (in the sense of clause (ii) of the
      defined term “Control”) Borrower, (b) Borrower shall give Lender notice of
      such Transfer together with copies of all instruments effecting such Transfer
      not more than ten (10) days after the date of such Transfer and (c) such
      Transfer shall not cause a default by Borrower of the single purpose bankruptcy
      remote provisions set forth in Section 5.13
      hereof.

     

    Notwithstanding
      the foregoing, none of the foregoing Transfers shall be deemed a “Permitted
      Transfer” hereunder if, as a result of any of the foregoing Transfers, the
      Guarantor no longer owns any direct or indirect interests in Borrower, unless,
      upon Lender’s request, one or more creditworthy Persons or entities reasonably
      satisfactory to Lender, that then Controls Borrower or owns a material direct
      or
      indirect interest in Borrower, shall execute and deliver a guaranty of recourse
      obligations (in the same form as the guaranty of recourse obligations delivered
      to Lender by Guarantor on the date hereof, or in such other form as may be
      acceptable to Lender, in Lender’s sole and absolute discretion) and otherwise
      reasonably satisfactory to Lender, pursuant to which the replacement
      guarantor(s) agrees to be liable under such guaranty of recourse obligations
      from and after the date executed (whereupon (i) the previous guarantor
      shall be 

     

    
      
        
        

      

      
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    released
      solely with respect to obligations arising and accruing from and after the
      date
      of such Transfer and (ii) such replacement guarantor(s) shall become liable
      for all obligations arising or accruing from and after the date of such Transfer
      and (iii) from and after the date of such Transfer, such replacement
      guarantor(s) shall be the “Guarantor” for all purposes set forth in this
      Agreement and the other Loan Documents (it being agreed and understood that
      the
      previous guarantor shall remain the “Guarantor” with respect to any and all
      obligations accruing prior to the date of such Transfer)).

     

    Notwithstanding
      anything to the contrary contained herein, the terms and provisions of this
      Section
      5.26.5
      are
      mutually exclusive from the term of the provisions contained in Section
      5.26.6.

     

    5.26.6 Transfer
      and Assumption.
      (a)  Notwithstanding the foregoing, Borrower shall have the right to
      Transfer the Property to another party (the “Transferee
      Borrower”)
      and
      have the Transferee Borrower assume all of Borrower’s obligations under the Loan
      Documents, and have replacement guarantors and indemnitors assume all of the
      obligations of the indemnitors and guarantors of the Loan Documents
      (collectively, a “Transfer
      and Assumption”).
      Borrower may make a written application to Lender for Lender’s consent to the
      Transfer and Assumption, subject to the conditions set forth in paragraphs
      (b)
      and (c) of this Section 5.26.6. Together with such written application, Borrower
      will pay to Lender the reasonable review fee then required by Lender. Borrower
      also shall pay on demand all of the reasonable costs and expenses incurred
      by
      Lender, including reasonable attorneys’ fees and expenses, and including the
      fees and expenses of Rating Agencies and other outside entities, in connection
      with considering any proposed Transfer and Assumption, whether or not the same
      is permitted or occurs.

     

    (b) Lender’s
      consent to a Transfer and Assumption, shall be subject to the following
      conditions (and if all such conditions have been satisfied, Lender shall not
      withhold its consent to the subject Transfer and Assumption):

     

    (i) No
      Default or Event of Default has occurred and is continuing;

     

    (ii) Borrower
      has submitted to Lender true, correct and complete copies of any and all
      information and documents reasonably requested by Lender concerning the
      Property, Transferee Borrower, replacement guarantors and indemnitors and
      Borrower;

     

    (iii) Evidence
      satisfactory to Lender has been provided showing that the Transferee Borrower
      and such of its Affiliates as shall be designated by Lender comply and will
      comply with Section 5.13 hereof, as those provisions may be modified by Lender
      taking into account the ownership structure of Transferee Borrower and its
      Affiliates;

     

    (iv) If
      the
      Loan, by itself or together with other loans, has been the subject of a
      Securitization, then Lender shall have received a Rating Comfort Letter from
      the
      applicable Rating Agencies; provided that the requirements contained in this
      clause (iv) shall not apply in connection with a Transfer and Assumption to
      a
      Transferee Borrower that is a Permitted REIT Transferee;

     

     

    
      
        
        

      

      
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    (v) If
      the
      Loan has not been the subject of a Securitization, then Lender shall have
      determined in its reasonable discretion (taking into consideration such factors
      as Lender may determine, including the attributes of the loan pool in which
      the
      Loan might reasonably be expected to be securitized) that no rating for any
      securities that would be issued in connection with such securitization will
      be
      diminished, qualified, or withheld by reason of the Transfer and Assumption;
      provided that the requirements contained in this clause (v) shall not apply
      in
      connection with a Transfer and Assumption to a Transferee Borrower that is
      a
      Permitted REIT Transferee;

     

    (vi) Borrower
      shall have paid all of Lender’s reasonable costs and expenses in connection with
      considering the Transfer and Assumption, and shall have paid the amount
      requested by Lender as a deposit against Lender’s costs and expenses in
      connection with effecting the Transfer and Assumption;

     

    (vii) Borrower,
      the Transferee Borrower, and the replacement guarantors and indemnitors shall
      have indicated in writing in form and substance reasonably satisfactory to
      Lender their readiness and ability to satisfy the conditions set forth in
      subsection (c) below (other than clause (i) with respect to a Permitted REIT
      Transferee); and

     

    (viii) The
      identity, experience, and financial condition of the Transferee Borrower and
      the
      replacement guarantors and indemnitors shall be reasonably satisfactory to
      Lender; provided that the requirements contained in this clause (viii) shall
      not
      apply in connection with a Transfer and Assumption to a Transferee Borrower
      that
      is a Permitted REIT Transferee.

     

    (c) If
      Lender
      consents to the Transfer and Assumption, the Transferee Borrower and/or Borrower
      as the case may be, shall immediately deliver the following to Lender
      concurrently with the consummation of such Transfer and Assumption:

     

    (i) Borrower
      shall deliver to Lender an assumption fee in the amount of (x) with respect
      to
      the first Transfer and Assumption, 0.25% of the then unpaid Principal and (ii)
      with respect to any subsequent Transfer and Assumption, 0.50% of the then unpaid
      Principal, less any review fees, costs and expenses previously paid by Borrower
      pursuant to the provision of Section 5.26.6(a) and (b)(vi); provided that,
      no
      assumption fee shall apply in connection with a Transfer and Assumption to
      a
      Transferee Borrower that is a Permitted REIT Transferee;

     

    (ii) Borrower,
      Transferee Borrower and the original and replacement guarantors and indemnitors
      shall execute and deliver to Lender any and all documents reasonably required
      by
      Lender, in form and substance reasonably required by Lender;

     

    (iii) Counsel
      to the Transferee Borrower and replacement guarantors and indemnitors shall
      deliver to Lender opinions in form and substance reasonably satisfactory to
      Lender as to such matters as Lender shall reasonably require, which may include
      opinions as to substantially the same matters and were required in connection
      with the origination of the Loan;

     

     

    
      
        
        

      

      
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    (iv) Borrower
      or the Transferee Borrower shall cause to be delivered to Lender, an endorsement
      (relating to the change in the identity of the vestee and execution and delivery
      of the Transfer and Assumption documents) to the Title Insurance Policy in
      form
      and substance acceptable to Lender, in Lender’s reasonable discretion (the
“Endorsement”);
      and

     

    (v) Borrower
      or the Transferee Borrower shall deliver to Lender a payment in the amount
      of
      all remaining unpaid costs incurred by Lender in connection with the Transfer
      and Assumption, including but not limited to, Lender’s reasonable attorneys fees
      and expenses, all recording fees, and all fees payable to the title company
      for
      the delivery to Lender of the Endorsement.

     

    (d) Notwithstanding
      anything to the contrary contained in this Section 5.26.6, with respect to
      a
      one-time only Transfer and Assumption, Lender’s prior consent shall not be
      required in connection with a Transfer and Assumption where either (i) the
      Transferee Borrower is a Permitted Transferee; provided that the conditions
      set
      forth in subsection (b) above (other than clause (viii) therein) and subsection
      (c) above have been satisfied or (ii) the Transferee Borrower is a Permitted
      REIT Transferee; provided that the conditions set forth in subsection (b) above
      (other than clauses (iv), (v) and (viii) therein) and subsection (c) above
      (other than clause (i) therein) have been satisfied.

     

    (e) Upon
      the
      closing of a Transfer and Assumption, Lender shall release Borrower, the OP
      and
      Guarantor from all obligations under the Loan Documents arising prior to and
      after the date of the Transfer and Assumption (but only to the extent that
      such
      obligations of Borrower, the OP and Guarantor are expressly assumed by the
      Transferee Borrower or replacement guarantor, as the case may be, in connection
      with the Transfer and Assumption).

     

    Section
      5.27 Liens

     

    .
      Without
      Lender’s prior written consent, Borrower shall not create, incur, assume, permit
      or suffer to exist any Lien on all or any portion of the Property or any direct
      or indirect legal or beneficial ownership interest in Borrower, except Liens
      in
      favor of Lender, Permitted Encumbrances and Liens encumbering Traded Equity,
      unless such Lien is bonded or discharged within 30 days after Borrower first
      receives notice of such Lien.

     

    Section
      5.28 Dissolution

     

    .
      Borrower shall not (i) engage in any dissolution (to the fullest extent
      such prohibition is permitted by law), liquidation or consolidation or merger
      with or into any other business entity, (ii) engage in any business
      activity not related to the ownership and operation of the Property or
      (iii) transfer, lease or sell, in one transaction or any combination of
      transactions, all or substantially all of the property or assets of Borrower
      except to the extent expressly permitted by the Loan Documents.

     

    Section
      5.29 Expenses

     

    .
      Borrower shall reimburse Lender, within ten (10) days after demand therefor,
      for
      all reasonable out-of-pocket costs and expenses (including reasonable attorneys’
fees and disbursements) 

     

    
      
        
        

      

      
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    incurred
      by Lender in connection with the Loan, including (i) the preparation,
      negotiation, execution and delivery of the Loan Documents and the consummation
      of the transactions contemplated thereby and all the costs of furnishing all
      opinions by counsel for Borrower; (ii) Borrower’s and Lender’s ongoing
      performance under and compliance with the Loan Documents, including confirming
      compliance with environmental and insurance requirements; (iii) the
      negotiation, preparation, execution, delivery and administration of any
      consents, amendments, waivers or other modifications of or under any Loan
      Document and any other documents or matters requested by Lender;
      (iv) filing and recording of any Loan Documents; (v) title insurance,
      surveys, inspections and appraisals; (vi) the creation, perfection or
      protection of Lender’s Liens in the Property and the Cash Management Accounts
      (including fees and expenses for title and lien searches, intangibles taxes,
      personal property taxes, Mortgage, recording taxes, due diligence expenses,
      travel expenses, accounting firm fees, costs of appraisals, environmental
      reports and Lender’s Consultant, surveys and engineering reports);
      (vii) 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 Borrower, the Loan Documents, the
      Property, or any other security given for the Loan; (viii) fees charged by
      Rating Agencies in connection with the Loan or any modification thereof; and
      (ix) enforcing any obligations of or collecting any payments due from
      Borrower under any Loan Document or with respect to the Property or in
      connection with any refinancing or restructuring of the Loan in the nature
      of a
“work-out,” or any insolvency or bankruptcy proceedings. Any costs and expenses
      due and payable to Lender hereunder which are not paid by Borrower within ten
      (10) days after demand therefor may be paid from any amounts in the Deposit
      Account, with notice thereof to Borrower. The obligations and liabilities of
      Borrower under this Section 5.29 shall survive the Term and the exercise by
      Lender of any of its rights or remedies under the Loan Documents, including
      the
      acquisition of the Property by foreclosure or a conveyance in lieu of
      foreclosure.

     

    Section
      5.30 Indemnity

     

    (a) .
      Borrower shall defend, indemnify and hold harmless Lender and each of its
      Affiliates and their respective successors and assigns, including the directors,
      officers, partners, members, shareholders, participants, employees,
      professionals and agents of any of the foregoing (including any Servicer) and
      each other Person, if any, who Controls Lender, its Affiliates or any of the
      foregoing (each, an “Indemnified
      Party”),
      from
      and against any and all liabilities, obligations, losses, damages, penalties,
      actions, judgments, suits, claims, costs, expenses and disbursements of any
      kind
      or nature whatsoever (including the reasonable fees and disbursements of counsel
      for an Indemnified Party in connection with any investigative, administrative
      or
      judicial proceeding commenced or threatened, whether or not Lender shall be
      designated a party thereto, court costs and costs of appeal at all appellate
      levels, investigation and laboratory fees, consultant fees and litigation
      expenses), that may be imposed on, incurred by, or asserted against any
      Indemnified Party (collectively, the “Indemnified
      Liabilities”)
      in any
      manner, relating to or arising out of or by reason of the Loan, including:
      (i) any breach by Borrower of its obligations under, or any
      misrepresentation by Borrower contained in, any Loan Document; (ii) the use
      or intended use of the proceeds of the Loan; (iii) any information provided
      by or on behalf of Borrower, or contained in any documentation approved by
      Borrower; (iv) ownership of the Mortgage, the Property or any interest
      therein, or receipt of any Rents; (v) any accident, injury to or death of
      persons or loss of or damage to property occurring 

     

    
      
        
        

      

      
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    in,
      on or
      about the Property or on the adjoining sidewalks, curbs, adjacent property
      or
      adjacent parking areas, streets or ways; (vi) any use, nonuse or condition
      in, on or about the Property or on adjoining sidewalks, curbs, adjacent property
      or adjacent parking areas, streets or ways; (vii) performance of any labor
      or services or the furnishing of any materials or other property in respect
      of
      the Property; (viii) the presence, disposal, escape, seepage, leakage,
      spillage, discharge, emission, release, or threatened release of any Hazardous
      Substance on, from or affecting the Property; (ix) any personal injury
      (including wrongful death) or property damage (real or personal) arising out
      of
      or related to such Hazardous Substance; (x) any lawsuit brought or
      threatened, settlement reached, or government order relating to such Hazardous
      Substance; (xi) any violation of the Environmental Laws which is based upon
      or in any way related to such Hazardous Substance, including the costs and
      expenses of any Remedial Work; (xii) any failure of the Property to comply
      with any Legal Requirement; (xiii) any claim by brokers, finders or similar
      persons claiming to be entitled to a commission in connection with any Lease
      or
      other transaction involving the Property or any part thereof, or any liability
      asserted against Lender with respect thereto; and (xiv) the claims of any
      lessee of any portion of the Property or any Person acting through or under
      any
      lessee or otherwise arising under or as a consequence of any Lease; provided,
      however,
      that
      Borrower shall not have any obligation to any Indemnified Party hereunder (A)
      to
      the extent that it is finally judicially determined that such Indemnified
      Liabilities arise from the gross negligence, illegal acts, fraud or willful
      misconduct of such Indemnified Party or (B) for any event or condition that
      first arises on or after the date on which Lender or any Affiliate of Lender
      acquires title to the Property (whether at foreclosure sale, a transfer in
      lieu
      of foreclosure or any other transfer); provided that
      Borrower’s obligation to indemnify the Indemnified Parties with respect to an
      event or condition specified in clauses (viii) through (xi) above (relating
      to Hazardous Substances) shall continue in perpetuity after Lender or its
      Affiliates acquires title or control of the Property unless such specified
      event
      or condition occurs during or after Lender’s (or its Affiliate’s) period of
      ownership and provided that Borrower shall bear the burden of proving that
      such
      specified event or condition occurred during Lender’s (or such Affiliate’s)
      period of ownership.. Any amounts payable to any Indemnified Party by reason
      of
      the application of this Section 5.30 shall be payable on demand and shall bear
      interest at the Default Rate from the date loss or damage is sustained by any
      Indemnified Party until paid. The obligations and liabilities of Borrower under
      this Section 5.30 shall survive the Term and the exercise by Lender of any
      of
      its rights or remedies under the Loan Documents, including the acquisition
      of
      the Property by foreclosure or a conveyance in lieu of foreclosure.

     

    Section
      5.31 Patriot
      Act Compliance

     

    .
      (a)
      Borrower will use its good faith and commercially reasonable efforts to comply
      with the Patriot Act (as defined below) and all applicable requirements of
      governmental authorities having jurisdiction over Borrower and the Property,
      including those relating to money laundering and terrorism. Lender shall have
      the right to audit Borrower’s compliance with the Patriot Act and all applicable
      requirements of governmental authorities having jurisdiction over Borrower
      and
      the Property, including those relating to money laundering and terrorism. In
      the
      event that Borrower fails to comply with the Patriot Act or any such
      requirements of governmental authorities, then Lender may, at its option, cause
      Borrower to comply therewith and any and all reasonable costs and expenses
      incurred by Lender in connection therewith shall be secured by the Mortgage
      and
      the other Loan Documents and shall be immediately due and payable. For purposes
      hereof, the term “Patriot
      Act”
means
      the Uniting and Strengthening America by 

     

    
      
        
        

      

      
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    Providing
      Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT
      ACT)
      Act of 2001, as the same may be amended from time to time, and corresponding
      provisions of future laws.

     

    (b) Neither
      Borrower, OP nor REIT nor to Borrower’s knowledge, any Affiliate that owns more
      than a 20% interest in either the OP or REIT (a) is listed on any Government
      Lists (as defined below), (b) is a person who has been determined by competent
      authority to be subject to the prohibitions contained in Presidential Executive
      Order No. 13224 (Sept. 23, 2001) or any other similar prohibitions contained
      in
      the rules and regulations of OFAC (as defined below) or in any enabling
      legislation or other Presidential Executive Orders in respect thereof, (c)
      has
      been previously indicted for or convicted of any felony involving a crime or
      crimes of moral turpitude or for any Patriot Act Offense (as defined below),
      or
      (d) is currently under investigation by any governmental authority for alleged
      criminal activity. For purposes hereof, the term “Patriot
      Act Offense”
means
      any violation of the criminal laws of the United States of America or of any
      of
      the several states, or that would be a criminal violation if committed within
      the jurisdiction of the United States of America or any of the several states,
      relating to terrorism or the laundering of monetary instruments, including
      any
      offense under (a) the criminal laws against terrorism; (b) the criminal laws
      against money laundering, (c) the Bank Secrecy Act, as amended, (d) the Money
      Laundering Control Act of 1986, as amended, or the (e) Patriot Act. “Patriot Act
      Offense” also includes the crimes of conspiracy to commit, or aiding and
      abetting another to commit, a Patriot Act Offense. For purposes hereof, the
      term
“Government
      Lists”
means
      (i) the Specially Designated Nationals and Blocked Persons Lists maintained
      by
      Office of Foreign Assets Control (“OFAC”),
      (ii)
      any other list of terrorists, terrorist organizations or narcotics traffickers
      maintained pursuant to any of the Rules and Regulations of OFAC that Lender
      notified Borrower in writing is now included in “Governmental Lists”, or (iii)
      any similar lists maintained by the United States Department of State, the
      United States Department of Commerce or any other government authority or
      pursuant to any Executive Order of the President of the United States of America
      that Lender notified Borrower in writing is now included in “Governmental
      Lists”.

     

    ARTICLE
      6

     

    

     

    NOTICES
      AND REPORTING

     

    Section
      6.1 Notices

     

    .
      All
      notices, consents, approvals and requests required or permitted hereunder or
      under any other Loan Document (a “Notice”)
      shall
      be given in writing and shall be effective for all purposes if either hand
      delivered with receipt acknowledged, or by a nationally recognized overnight
      delivery service (such as Federal Express), or by certified or registered United
      States mail, return receipt requested, postage prepaid, or by facsimile and
      confirmed by facsimile answer back, in each case addressed as follows (or to
      such other address or Person as a party shall designate from time to time by
      notice to the other party):

     

     

    
      
        
        

      

      
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    If
      to
      Lender: 

     

    Greenwich
      Capital Financial Products, Inc. 

    600
      Steamboat Road

    Greenwich,
      Connecticut 06830

    Attention:
      Mortgage Loan Department

    Telecopier
      (203) 618-2052

     

    With
      a
      copy to: 

     

    Kaye
      Scholer LLP 

    425
      Park
      Avenue

    New
      York,
      New York 10022 

    Attention:
      Stephen Gliatta, Esq. 

    Telecopier:
      (212) 836-8689

     

    If
      to
      Borrower: 

     

    Maguire
      Properties-Pacific Center, LLC

    333
      South
      Grand Avenue, Suite 400

    Los
      Angeles, California 90071

    Attention:
      Mr. Robert F. Maguire III and Mark T. Lammas, Esq.

    Telecopier:
      (213) 533-5100

     

    With
      a
      copy to: 

     

    Munger,
      Tolles & Olson LLP

    355
      South
      Grand Avenue, Suite 3500

    Los
      Angeles, California 90071

    Attention:
      Jeffrey A. Heintz, Esq.

    Telecopier:
      (213) 638-5185

     

    A
      notice
      shall be deemed to have been given: (i) in the case of hand delivery, at
      the time of delivery; (ii) in the case of registered or certified mail,
      when delivered or the first attempted delivery on a Business Day; (iii) in
      the case of overnight delivery, upon the first attempted delivery on a Business
      Day; or (iv) in the case of facsimile, upon the confirmation of such
      facsimile transmission. Any party may change the address to which any such
      Notice is delivered, by furnishing ten (10) days’ written notice of such change
      to the other parties in accordance with the provisions of this Section 6.1.
      Notice for either party may be given by its respective counsel.

     

    Section
      6.2 Borrower
      Notices and Deliveries

     

    .
      Borrower shall (a) give prompt written notice to Lender of: (i) any
      litigation, governmental proceedings or claims or investigations pending or
      threatened against Borrower or the OP or the REIT which might materially
      adversely affect Borrower’s or the OP’s or the REIT’s condition (financial or
      otherwise) or business or the Property; (ii) any material adverse change in

     

    
      
        
        

      

      
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    Borrower’s
      or the OP’s or the REIT’s condition, financial or otherwise, or of the
      occurrence of any Default or Event of Default of which Borrower has knowledge;
      and (b) furnish and provide to Lender: (i) if requested by Lender, any
      Securities and Exchange Commission or other public filings, if any, of Borrower,
      the OP, the REIT, Manager, or any Affiliate of any of the foregoing within
      two
      (2) Business Days of such filing and (ii) all instruments, documents,
      boundary surveys, footing or foundation surveys, certificates, plans and
      specifications, appraisals, title and other insurance reports and agreements,
      reasonably requested, from time to time, by Lender. In addition, after request
      by Lender (but no more frequently than twice in any year), Borrower shall(x)
      furnish to Lender within ten days, a certificate addressed to Lender, its
      successors and assigns reaffirming all representations and warranties of
      Borrower set forth in the Loan Documents as of the date requested by Lender
      or,
      to the extent of any changes to any such representations and warranties, so
      stating such changes, and (y) within 30 days, use commercially reasonable
      efforts to obtain tenant estoppel certificates addressed to Lender, its
      successors and assigns from each commercial tenant at the Property in form
      and
      substance reasonably satisfactory to Lender.

     

    Section
      6.3 Financial
      Reporting

     

    .

     

    6.3.1 Financial
      Statements.
      The
      financial statements heretofore furnished to Lender with respect to Borrower,
      the OP and the REIT are, as of the dates specified therein, complete and correct
      in all material respects and fairly present in all material respects the
      financial condition of Borrower, the OP and the REIT and are prepared in
      accordance with GAAP. Since the date of such financial statements, there has
      been no materially adverse change in the financial condition, operation or
      business of Borrower, the OP and the REIT from that set forth in said financial
      statements.

     

    6.3.2 Quarterly
      Reports.
      Borrower will maintain full and accurate books of accounts and other records
      reflecting the results of the operations of the Property and will furnish to
      Lender on or before forty-five (45) days after the end of each calendar quarter
      the following items, each certified by Borrower as being true and correct in
      all
      material respects: (i) a written statement (rent roll) dated as of the last
      day of each such calendar quarter identifying each of the Leases (excluding
      subleases) by the term, space occupied, rental required to be paid, security
      deposit paid, any rental concessions, and a report identifying any defaults
      or
      payment delinquencies thereunder; (ii) monthly and year to date operating
      statements prepared for each calendar month during each such calendar quarter,
      noting Net Operating Income, and operating expenses, and including an
      itemization of actual (not pro forma) capital expenditures and other information
      necessary and sufficient under generally accepted accounting practices to fairly
      represent the financial position and results of operation of the Property during
      such calendar month, all in form satisfactory to Lender; (iii) a property
      balance sheet for each such calendar quarter; (iv) a comparison of the
      budgeted income and expenses and the actual income and expenses for year to
      date
      together with a detailed explanation of any variances of five percent (5%)
      or
      more between budgeted and actual amounts for such year to date period; and
      (v) a calculation reflecting the Debt Service Coverage Ratio as of the last
      day of each such calendar quarter. Until a Securitization has occurred, Borrower
      shall furnish monthly each of the items listed in the immediately preceding
      sentence within thirty (30) days after the end of such month.

     

     

    
      
        
        

      

      
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    6.3.3 Annual
      Reports.
      Within
      one hundred twenty (120) days following the end of each calendar year
      (provided,
      however,
      if
      requested by Lender, Borrower shall use commercially reasonable efforts to
      provide Lender with any unaudited annual statements prior to such date),
      Borrower shall furnish statements of its financial affairs and condition
      including a balance sheet and a statement of profit and loss for Borrower in
      such detail as Lender may reasonably request, and setting forth the financial
      condition and the income and expenses for the Property for the immediately
      preceding calendar year, which statements shall be prepared by Borrower.
      Borrower’s annual financial statements shall include (x) a list of the
      tenants, if any, occupying more than twenty (20%) percent of the total floor
      area of the Improvements, and (y) a breakdown showing the year in which
      each Lease then in effect expires and the percentage of total floor area of
      the
      Improvements and the percentage of base rent with respect to which Leases shall
      expire in each such year, each such percentage to be expressed on both a per
      year and a cumulative basis. Borrower’s annual financial statements shall be
      accompanied by a certificate executed by a financial officer of Borrower or
      the
      REIT stating that each such annual financial statement presents fairly the
      financial condition of the Property being reported upon and shall be audited
      by
      a “Big Four” accounting firm or other independent certified public accountant
      reasonably acceptable to Lender, which audited financial statements may be
      in
      the form of schedules to the audited consolidated financial statements of the
      REIT. Each such annual financial statement shall be prepared in accordance
      with
      GAAP. At any time and from time to time Borrower shall deliver to Lender or
      its
      agents such other financial data as Lender or its agents shall reasonably
      request with respect to the ownership, maintenance, use and operation of the
      Property.

     

    6.3.4 Annual
      Budget.
      Within
      30 days after the commencement of a Cash Management Period, and not later than
      each December 15 during the Term of the Loan until such Cash Management Period
      has ended, Borrower shall submit to Lender a detailed budget (an “Annual
      Budget”)
      for
      the Property covering the calendar year commencing on the following January
      1,
      each of which budgets shall be subject to Lender’s approval, not to be
      unreasonably withheld, (provided that Borrower shall have the option to submit
      to Lender a revised budget not later than June 30 of each year during the Term
      of the Loan to adjust such budget on the basis of the actual results of Borrower
      to such point in such calendar year) (each such budget, when so approved, is
      referred to as an “Approved
      Annual Budget”).
      Until
      such time that Lender approves a proposed Annual Budget, Borrower may operate
      under the most recently Approved Annual Budget (adjusted to reflect actual
      increases in real estate taxes, insurance premiums, utilities expenses, labor
      costs, interest and other fixed costs with respect to the ownership, operation
      and financing of the Property).

     

    ARTICLE
      7

     

    

     

    INSURANCE;
      CASUALTY; AND CONDEMNATION

     

    Section
      7.1 Insurance

     

    .

     

     

    
      
        
        

      

      
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    7.1.1 Coverage.
      Borrower shall maintain insurance for Borrower and the Property providing at
      least the following coverages:

     

    (a) comprehensive
      all risk insurance on the Improvements and the Equipment, in each case
      (A) in an amount equal to one hundred percent (100%) of the “Full
      Replacement Cost,”
which
      for purposes of this Agreement shall mean actual replacement value (exclusive
      of
      costs of excavations, foundations, underground utilities and footings) with
      a
      waiver of depreciation; (B) containing an agreed amount endorsement with
      respect to the Improvements and Equipment waiving all co insurance provisions;
      (C) providing for no “all risk” deductible in excess of $100,000; and
      (D) containing an “Ordinance or Law Coverage” or “Enforcement” endorsement
      if any of the Improvements or the use of the Property shall at any time
      constitute legal non conforming structures or uses. In addition, Borrower shall
      obtain: (x) Flood Insurance in an amount of not less than $25,000,000 each
      occurrence; (y) earthquake insurance in an amount at least equal to one
      multiplied by a “Probable Maximum Loss” of total replacement value less a
      deductible of 5% of the Total Insured Value (which includes annual rental value)
      at the Property, and otherwise in form and substance reasonably satisfactory
      to
      Lender; and (z) coastal windstorm insurance in amounts and in form and
      substance satisfactory to Lender, provided that the insurance pursuant to
      clauses (x), (y) and (z) hereof shall be on terms consistent with the
      comprehensive all risk insurance policy required under this subsection (a)
      and
      rental interruption insurance under subsection (c). Notwithstanding anything
      to
      the contrary contained herein, provided that Borrower maintains a minimum
      blanket Policy limit of $1,250,000,000 per occurrence and the entire blanket
      Policy limit is available for any one loss, Lender shall accept Borrower’s
      stated value of insurance for the Property, which is $76,149,250 as of the
      date
      hereof. If at any time during the Term, Borrower either (x) losses its blanket
      Policy coverage, (y) reduces its overall blanket Policy limit or (z) elects
      to
      insure the Property separately, Borrower shall increase the stated value for
      the
      Property to the then 100% replacement cost of the improvements, as reasonably
      determined by Lender;

     

    (b) commercial
      general liability insurance against claims for personal injury, bodily injury,
      death or property damage occurring upon, in or about the Property, such
      insurance (A) to be on the so-called “occurrence” form with a combined
      limit of not less than Two Million and No/100 Dollars ($2,000,000) in the
      aggregate and One Million and No/100 Dollars ($1,000,000) per occurrence;
      (B) to continue at not less than the aforesaid limit until required to be
      changed by Lender in writing by reason of changed economic conditions making
      such protection inadequate; and (C) to cover at least the following
      hazards: (1) premises and operations; (2) products and completed
      operations on an “if any” basis; (3) independent contractors;
      (4) blanket contractual liability for all legal contracts; and
      (5) liability that may arise from acts of terrorism, if commercially
      available. The
      self-insured retention or deductible for general liability coverage is not
      to
      exceed $100,000 per occurrence subject to a $750,000 maximum. This deductible
      is
      to be initially funded with a letter of credit in the amount of $200,000, held
      and administrated by the carrier. Once the first $200,000 is exhausted
      additional Letters of Credit must be continually posted until the $750,000
      maximum deductible is exhausted.

     

    (c) rental
      interruption insurance (A) with loss payable to Lender (allowing
      reimbursement to Borrower for reasonable operating costs during the
      interruption); (B) covering all risks required to be covered by the
      insurance provided for in subsection (a) above; 

     

    
      
        
        

      

      
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    (C) containing
      an unlimited period of restoration and extended period of indemnity endorsement
      which provides that after the physical loss to the Improvements and Equipment
      has been repaired, the continued loss of rental income will be insured until
      such rental income either returns to the same level it was at prior to the
      loss,
      or the expiration of twelve (12) months from the date that the Property is
      repaired or replaced and operations are resumed, whichever first occurs, and
      notwithstanding that the policy may expire prior to the end of such period,
      provided that the unlimited period of restoration endorsement may be limited
      to
      the length of time required with the exercise of due diligence and dispatch
      to
      rebuild, repair or replace the damaged or destroyed property; and (D) in an
      amount equal to one hundred percent (100%) of the projected gross income from
      the Property for a period of eighteen (18) months from the date that the
      Property is repaired or replaced and operations are resumed. The amount of
      such
      rental interruption insurance shall be determined prior to the date hereof
      and
      at least once each year thereafter based on Borrower’s reasonable estimate of
      the gross income from the Property for the succeeding eighteen (18) month
      period. Subject to the rights of Lender and subject to the provisions of Section
      7.4.1(j) below, all proceeds payable to Lender pursuant to this subsection
      shall
      be held by Lender and shall be applied to the obligations secured by the Loan
      Documents from time to time due and payable hereunder and under the Note;
provided,
      however,
      that
      nothing herein contained shall be deemed to relieve Borrower of its obligations
      to pay the obligations secured by the Loan Documents on the respective dates
      of
      payment provided for in the Note and the other Loan Documents except to the
      extent such amounts are actually paid out of the proceeds of such rental
      interruption insurance. Notwithstanding anything to the contrary contained
      herein, provided that Borrower maintains a minimum blanket Policy limit of
      $1,250,000,000 per occurrence and the entire blanket Policy limit is available
      for any one loss, Lender shall accept Borrower’s loss of rents calculation in
      lieu of the amount set forth in sub-clause (D) hereof, which such calculation
      currently deducts for “variable expenses.” If at any time during the Term,
      Borrower either (x) losses its blanket Policy coverage, (y) reduces its overall
      blanket Policy limit or (z) elects to insure the Property separately, Borrower
      shall provide rental interruption insurance in the amount set forth in
      sub-clause (D) hereof without any deductions;

     

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

     

    (e) Workers’
      Compensation insurance, as required by any governmental authority or any Legal
      Requirements and Employer’s Liability Insurance of not less than One Million and
      No/100 Dollars ($1,000,000) for each occurrence;

     

    (f) comprehensive
      boiler and machinery insurance in an amount of not less than Fifty Million
      and
      No/100 Dollars ($50,000,000) each occurrence on terms consistent with the
      commercial property insurance policy required under subsections (a) and (c)
      above;

     

     

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

    

     

    (g) umbrella
      liability insurance in an amount not less than Twenty-Five Million and No/100
      Dollars ($25,000,000) per occurrence, on terms consistent with the commercial
      general liability insurance policy and motor liability insurance policy required
      under subsection (b) above and (h) below, on a portfolio basis naming the
      Property and all other properties owned by the OP and/or its Affiliates;
      provided, that such insurance may be provided under a blanket insurance Policy
      so long as the coverage required pursuant to this clause is not reduced below
      the per occurrence limit set forth in this clause;

     

    (h) motor
      vehicle liability coverage for all owned and non owned vehicles, including
      rented and leased vehicles containing minimum limits per occurrence, including
      umbrella coverage, of Twenty Six Million and No/100 Dollars
      ($26,000,000);

     

    (i) if
      the
      Property is or becomes a legal "non conforming" use, ordinance and law coverage
      is required based on the following minimum limits: Coverage A (value of the
      undamaged portion) to be included with the insured building limit; Coverage
      B
      (demolition/debris removal) at 10% of insured building value; and Coverage
      C
      (increased cost of construction) at 10% of insured building value;

     

    (j) if
      “certified acts of terrorism”,
      as
      declared by the United States Government, are now or hereafter excluded from
      Borrower’s comprehensive all risk insurance policy, business income coverage,
      commercial general liability insurance or umbrella liability insurance coverage,
      Borrower
      shall obtain an endorsement to such policies, or separate policies, insuring
      against all such “certified acts of terrorism” (such acts or events so excluded,
“Terrorism
      Acts”),
      at
      Borrower’s option, either (A) in an amount not less than Three Hundred
      Sixty Million and No/100 Dollars ($360,000,000) on an aggregate basis covering
      the Property and all other properties owned by the OP and/or its Affiliates
      and
      providing for a deductible not exceeding $1,000,000.00 or (B) in a total
      amount not less than Four Hundred Ten Million and No/100 Dollars ($410,000,000)
      on an aggregate basis covering the Property and all other properties owned
      by
      the OP and/or its Affiliates as of the date hereof and providing for a
      deductible of not in excess of 5% of the full replacement value of the Property;
      in either case, the endorsement or policy shall be (x) in form and
      substance reasonably satisfactory to Lender; and (y) non-cancelable (to the
      extent such non-cancelable insurance is available in the marketplace) (insurance
      meeting such requirements being referred to herein as “Full
      Coverage”);
      provided Borrower shall not be required to spend in excess of an amount equal
      to
      200% of the aggregate amount of the “all risk” insurance premiums payable with
      respect to the Property and all other properties owned by the OP and/or its
      Affiliates per annum for the last policy year in which coverage for terrorism
      was included as part of the “all risk” property policy, adjusted annually by a
      percentage equal to the increase in the Consumer Price Index (hereinafter
      defined) (the “Terrorism
      Premium Cap”)
      for
      such coverage and, in the event that Full Coverage is not available at a per
      annum cost of the Terrorism Premium Cap, then Borrower shall purchase insurance
      covering Terrorism Acts in an amount equal to the principal balance of the
      Loan,
      but shall not be required to maintain the full amount of such coverage if such
      coverage is not available at a per annum cost of the Terrorism Premium Cap
      or
      less, provided that in the event that the Terrorism Premium Cap is not
      sufficient to purchase such coverage in an amount equal to the principal balance
      of the Loan, then Borrower shall obtain the greatest amount of coverage
      obtainable at a per annum cost of the Terrorism Premium Cap. As used herein,
      “Consumer
      Price Index”
      means
      the Consumer Price Index for All Urban Consumers published by the 

     

    
      
        
        

      

      
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    Bureau
      of
      Labor Statistics of the United States Department of Labor, New York Metropolitan
      Statistical Area, All Items (1982-84 = 100), or any successor index thereto,
      approximately adjusted, and in the event that the Consumer Price Index is
      converted to a different standard reference base or otherwise revised, the
      determination of adjustments provided for herein shall be made with the use
      of
      such conversion factor, formula or table for converting the Consumer Price
      Index
      as may be published by the Bureau of Labor Statistics or, if said Bureau shall
      not publish the same, then with the use of such conversion factor, formula
      or
      table as may be published by Prentice-Hall, Inc., or any other nationally
      recognized publisher of similar statistical information; and if the Consumer
      Price Index ceases to be published, and there is no successor thereto (i) such
      other index as Lender and Borrower shall agree upon in writing or (ii) if Lender
      and Borrower cannot agree on a substitute index, such other index, as reasonably
      selected by Lender.

     

    In
      the
      event that the limits of insurance in place covering Terrorism Acts on a
      portfolio basis are exhausted by damage to a property other than the Property,
      then Borrower shall restore the coverage provided for in clause (x) above
      (or any lesser amount of coverage that is available if such coverage is not
      available), to the extent such insurance is commercially available;
      and

     

    (k) upon
      sixty (60) days’ written notice, such other reasonable insurance and in such
      reasonable amounts as Lender from time to time may reasonably request against
      such other insurable hazards which at the time are commonly insured against
      for
      property similar to the Property located in or around the region in which the
      Property is located.

     

    7.1.2 Policies.
      All
      insurance provided for in Section 7.1.1 shall be obtained under valid and
      enforceable policies (collectively, the “Policies”
or
      in
      the singular, the “Policy”
and
      shall be subject to the reasonable approval of Lender as to insurance companies,
      amounts, deductibles, loss payees and insureds. The Policies (or a “cut-through”
endorsement, approved by Lender, with respect to any such Policy) shall be
      issued by financially sound and responsible insurance companies authorized
      to do
      business in the State and, except in the case of flood hazard insurance and
      earthquake insurance, having a claims paying ability rating of “A-” or better by
      S&P and an equivalent rating by Moody’s (provided, however for multi-layered
      policies, (A) if four (4) or less insurance companies issue the Policies,
      then at least 75% of the insurance coverage represented by the Policies must
      be
      provided by insurance companies with a claims paying ability rating of “A-” or
      better by S&P (and the equivalent by any other Rating Agency), with no
      carrier below “BBB” (and the equivalent by any other Rating Agency) or
      (B) if five (5) or more insurance companies issue the Policies, then at
      least sixty percent (60%) of the insurance coverage represented by the Policies
      must be provided by insurance companies with a claims paying ability rating
      of
“A-” or better by S&P (and the equivalent by any other Rating Agency), with
      no carrier below “BBB” (and the equivalent by any other Rating Agency). The
      Policies described in Section 7.1.1 (other than those strictly limited to
      liability protection) shall designate Lender as loss payee and Lender shall
      be
      an additional named insured, as its interests may appear. Not less than ten
      (10)
      days prior to the expiration dates of the Policies theretofore furnished to
      Lender, certificates of insurance evidencing the Policies accompanied by
      evidence satisfactory to Lender of payment of the premiums due thereunder shall
      be delivered by Borrower to Lender.

     

     

    
      
        
        

      

      
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    7.1.3 Insurance
      Premiums.
      Subject
      to the provisions of Section 3.3 hereof, Borrower shall pay the premiums for
      such Policies (the “Insurance
      Premiums”)
      as the
      same become due and payable and shall furnish to Lender evidence of the renewal
      of each of the Policies with receipts for the payment of the Insurance Premiums
      or other evidence of such payment reasonably satisfactory to Lender
      (provided,
      however,
      that
      Borrower is not required to furnish such evidence of payment to Lender in the
      event that such Insurance Premiums have been paid by Lender pursuant to Section
      3.3 hereof). If Borrower is required to furnish such evidence and receipts
      pursuant to the preceding sentence and Borrower does not furnish such evidence
      and receipts at least ten (10) days prior to the expiration of any expiring
      Policy, then Lender may procure, but shall not be obligated to procure, such
      insurance and pay the Insurance Premiums therefor, and Borrower agrees to
      reimburse Lender for the cost of such Insurance Premiums promptly on demand.
      Within thirty (30) Business Days after request by Lender, Borrower shall obtain
      such increases in the amounts of coverage required hereunder as may be
      reasonably requested by Lender, taking into consideration changes in the value
      of money over time, changes in liability laws, changes in prudent customs and
      practices of owners of property similar to the Property located in or around
      the
      region in which the Property is located and as may be available at commercially
      reasonable rates. Lender acknowledges that the Policies, delivered with respect
      to the Property as of the date hereof satisfy the requirements of this Section
      7. Such approval shall continue in effect until the expiration or termination
      of
      such Policies, provided that there is not a downgrade by S&P or Moody’s of
      any insurer providing such Policies and, as a result thereof, Borrower fails
      to
      satisfy the rating criteria set forth in Section 7.1.2. Any renewal or
      replacement of such Policies, however, shall require Lender’s approval as
      provided above in this Section 7.1.2 unless (i) the companies providing
      such renewal or replacement Policies are licensed to do business in the state
      where the Property is located and have a claims paying ability rating by S&P
      and Moody’s that satisfy the requirements set forth in Section 7.1.2 above or
      that, subject to the provisions of Section 7.1.5 below, such rating is no less
      than the rating as of the date hereof of the company providing the insurance
      approved by Lender as of the date hereof, (ii) the coverage provided by
      such renewal or replacement Policies is no less than the coverage approved
      by
      Lender as of the date hereof, (iii) such renewal or replacement Policies
      contain in all material respects the same terms and conditions as the Policies
      approved by Lender as of the date hereof and (iv) Lender has not notified
      Borrower in accordance with this Section 7.1 that the requirements for the
      Policies have changed since the date hereof.

     

    7.1.4 Blanket
      Policies.
      The
      insurance coverage required under this Section 7.1 may be effected under one
      or
      more blanket Policies covering the Property and other property and assets not
      constituting a part of the Property; provided that any blanket Policy shall
      specify, except in the case of general liability insurance, the portion of
      the
      total coverage of such blanket Policy that is allocated exclusively to the
      Property and shall comply in all respects with the requirements of this Section
      7. Lender hereby confirms that it approves (i) the terms of the existing
      Property Insurance Sharing Agreement among Borrower and certain of its
      Affiliates, and (ii) that the Insurance Premiums are financed through one
      or more finance companies (individually and/or collectively, the “Blanket
      Insurance Premium Financing Arrangement”)
      to
      whom Borrower pays Borrower’s allocable share of the annual initial deposit and
      the monthly payments due for each blanket Policy to the applicable finance
      company (with respect to each blanket Policy, such monthly payment, together
      with one-twelfth (1/12th) of the allocable share 

     

    
      
        
        

      

      
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    of
      the
      annual initial deposit necessary to accumulate such allocable share for such
      Policy at least thirty (30) days prior to its due date, each, a “Financing
      Installment”).

     

    Section
      7.2 Casualty

     

    .

     

    7.2.1 Notice;
      Restoration.
      If the
      Property shall be damaged or destroyed, in whole or in part, by fire or other
      casualty (a “Casualty”),
      Borrower shall give prompt notice thereof to Lender. Following the occurrence
      of
      a Casualty, Borrower, regardless of whether insurance proceeds are available
      (unless Lender has breached its obligation (if any) to make such insurance
      proceeds available pursuant to Section 7.4.1), shall promptly proceed to
      restore, repair, replace or rebuild the same to be of at least equal value
      and
      of substantially the same character as prior to such damage or destruction
      (a
“Casualty
      Restoration”),
      all
      to be effected in accordance with applicable law

     

    7.2.2 Settlement
      of Proceeds.
      If a
      Casualty covered by any of the Policies (an “Insured
      Casualty”)
      occurs
      where the loss does not exceed $1,500,000, provided no Default or Event of
      Default has occurred and is continuing, Borrower may settle and adjust any
      claim
      without the prior consent of Lender; provided such adjustment is carried out
      in
      a competent and timely manner, and Borrower is hereby authorized to collect
      and
      receipt for the Insurance Proceeds (as hereinafter defined). In the event of
      an
      Insured Casualty where the loss exceeds $1,500,000 (a “Significant
      Casualty”),
      Lender may, in its sole discretion, settle and adjust any claim without the
      consent of Borrower and agree with the insurer(s) in a commercially reasonable
      manner on the amount to be paid on the loss, and the Proceeds shall be due
      and
      payable solely to Lender and held by Lender in the Casualty/Condemnation
      Subaccount and disbursed in accordance herewith. If Borrower or any party other
      than Lender is a payee on any check representing Proceeds with respect to a
      Significant Casualty, Borrower shall immediately endorse, and cause all such
      third parties to endorse, such check payable to the order of Lender. Borrower
      hereby irrevocably appoints Lender as its attorney-in-fact, coupled with an
      interest, to endorse such check payable to the order of Lender. The expenses
      incurred by Lender in the settlement, adjustment and collection of the Proceeds
      shall become part of the Debt and shall be reimbursed by Borrower to Lender
      within ten (10) days following demand. Notwithstanding anything to the contrary
      contained herein, if in connection with a Casualty any insurance carrier makes
      a
      payment under a property insurance Policy that Borrower proposes be treated
      as
      business or rental interruption insurance, then, notwithstanding any designation
      (or lack of designation) by the insurance carrier as to the purpose of such
      payment, as between Lender and Borrower, such payment shall not be treated
      as
      business or rental interruption insurance proceeds unless Borrower has
      demonstrated to Lender’s reasonable satisfaction that the remaining net Proceeds
      that will be received from the property insurance carriers are sufficient to
      pay
      100% of the cost of fully restoring the Improvements or, if such net Proceeds
      are to be applied to repay the Debt in accordance with the terms hereof, that
      such remaining net Proceeds, together with any portion of the amount treated
      as
      business or rental interruption insurance that will be paid to Lender, will
      be
      sufficient to pay the Debt in full.

     

     

    
      
        
        

      

      
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    Section
      7.3 Condemnation

     

    .

     

    7.3.1 Notice;
      Restoration.
      Borrower shall promptly give Lender written notice of the actual or threatened
      commencement of any condemnation or eminent domain proceeding (a “Condemnation”)
      and
      shall deliver to Lender copies of any and all papers served in connection with
      such Condemnation. Following the occurrence of a Condemnation, Borrower,
      regardless of whether an Award (hereinafter defined) is available (unless Lender
      has breached its obligation (if any) to make such Award available pursuant
      to
      Section 7.4.1), shall promptly proceed to restore, repair, replace or rebuild
      the same to the extent practicable to be of at least equal value and of
      substantially the same character as prior to such Condemnation (a “Condemnation
      Restoration”,
      together with a Casualty Restoration, collectively a “Restoration”),
      all
      to be effected in accordance with applicable law.

     

    7.3.2 Collection
      of Award.
      Lender
      is hereby irrevocably appointed as Borrower’s attorney-in-fact, coupled with an
      interest, with exclusive power to collect, receive and retain any award or
      payment (“Award”)
      for
      any taking accomplished through a Condemnation (a “Taking”)
      and to
      make any commercially reasonable compromise or settlement in connection with
      any
      such Condemnation, subject to the provisions of this Agreement. Notwithstanding
      the foregoing, Borrower shall have the right, provided no Default or Event
      of
      Default has occurred and is continuing, to compromise and collect or receive
      any
      award that does not exceed $1,500,000. Notwithstanding any Taking by any public
      or quasi-public authority (including, without limitation, any transfer made
      in
      lieu of or in anticipation of such a Taking), Borrower shall continue to pay
      the
      Debt at the time and in the manner provided for in the Note, in this Agreement
      and the other Loan Documents and the Debt shall not be reduced unless and until
      any Award shall have been actually received and applied by Lender to expenses
      of
      collecting the Award and to discharge of the Debt. Lender shall not be limited
      to the interest paid on the Award by the condemning authority but shall be
      entitled to receive out of the Award interest at the rate or rates provided
      in
      the Note. Borrower shall cause any Award that is payable to Borrower to be
      paid
      directly to Lender. The expenses incurred by Lender in the adjustment and
      collection of the Award shall become part of the Debt and be secured hereby
      and
      shall be reimbursed by Borrower to Lender within ten (10) days after the date
      Lender makes written demand therefor.

     

    Section
      7.4 Application
      of Proceeds or Award

     

    .

     

    7.4.1 Application
      to Restoration.
      The
      following provisions shall apply in connection with the Restoration of the
      Property and Improvements:

     

    (a) If
      the
      Net Proceeds shall be less than $1,500,000 and the costs of completing the
      Restoration shall be less than $1,500,000, the Net Proceeds will be disbursed
      by
      Lender to Borrower upon receipt, provided that all of the conditions set forth
      in Section 7.4.1(c)(i) are met and Borrower delivers to Lender a written
      undertaking to expeditiously commence and to 

     

    
      
        
        

      

      
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    satisfactorily
      complete with due diligence the Restoration in accordance with the terms of
      this
      Agreement.

     

    (b) If
      the
      Net Proceeds are equal to or greater than $1,500,000 or the costs of completing
      the Restoration is equal to or greater than $1,500,000 Lender shall make the
      Net
      Proceeds available for the Restoration in accordance with the provisions of
      this
      Section 7.4. The term “Net
      Proceeds”
shall
      mean: (A) the net amount of all insurance proceeds received by Lender
      pursuant to Section 7.1.1(a), (d), (f), (i) and (j) (and any similar or
      comparable types of insurance obtained pursuant to Section 7.1.1(i) as a result
      of such damage or destruction, after deduction of its reasonable costs and
      expenses (including, but not limited to, reasonable counsel fees), if any,
      in
      collecting same (“Insurance
      Proceeds”),
      or
      (B) the net amount of the Award, after deduction of its reasonable costs and
      expenses (including, but not limited to, reasonable counsel fees), if any,
      actually incurred in collecting same (“Condemnation
      Proceeds”),
      whichever the case may be.

     

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

     

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

     

    (ii) (1) in
      the event the Net Proceeds are Insurance Proceeds, less than thirty percent
      (30%) of the total floor area of the Improvements has been damaged, destroyed
      or
      rendered unusable as a result of such fire or other casualty or (2) in the
      event the Net Proceeds are Condemnation Proceeds, less than fifteen percent
      (15%) of the land constituting the Property is taken, and such land is located
      along the perimeter or periphery of the Property, and no portion of the
      Improvements is located in such land;

     

    (iii) Leases
      demising in the aggregate at least sixty-five percent (65%) of the total
      rentable space in the Property and in effect as of the date of the occurrence
      of
      such Insured Casualty or Condemnation remain in full force and effect during
      and
      after the completion of the Restoration;

     

    (iv) Borrower
      shall commence the Restoration as soon as reasonably practicable (but in no
      event later than ninety (90) days after such damage or destruction or taking,
      whichever the case may be, occurs) and shall diligently pursue the same to
      satisfactory completion;

     

    (v) Lender
      shall be reasonably satisfied that any operating deficits, including all
      scheduled payments of principal and interest under the Note, which will be
      incurred with respect to the Property as a result of the occurrence of any
      such
      fire or other casualty or taking, whichever the case may be, will be covered
      out
      of (1) the Net Proceeds, (2) the insurance coverage referred to in
      Section 7.1.1(c), if applicable, or (3) by other funds of
      Borrower;

     

    (vi) Lender
      shall be satisfied that the Restoration will be completed on or before the
      earliest to occur of (1) six (6) months prior to the Maturity Date, (2) the
      earliest date required for such completion under the terms of any Required
      Lease, (3) such time as may be required under applicable zoning law,
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    regulation
      in order to repair and restore the Property to the condition it was in
      immediately prior to such fire or other casualty or to as nearly as possible
      the
      condition it was in immediately prior to such taking, as applicable or
      (4) the expiration of the insurance coverage referred to in Section
      7.1.1(c);

     

    (vii) the
      Property and the use thereof after the Restoration will be in compliance with
      and permitted under all applicable zoning laws, ordinances, rules and
      regulations and all necessary operating or reciprocal easement agreements for
      the operation and maintenance of the Property are, or remain, in
      effect;

     

    (viii) the
      Restoration shall be done and completed by Borrower in an expeditious and
      diligent fashion and in compliance with all applicable governmental laws, rules
      and regulations (including, without limitation, all applicable environmental
      laws); and

     

    (ix) such
      fire
      or other casualty or taking, as applicable, does not result in a material loss
      of access to the Property.

     

    (d) Unless
      such amounts are payable to Borrower pursuant to Section 7.2 or 7.3, the Net
      Proceeds shall be held by Lender in an interest-bearing account for the benefit
      of Borrower (which interest shall be added to and become a part of the Net
      Proceeds) and, until disbursed in accordance with the provisions of this Section
      7.4, shall constitute additional security for the Debt and other obligations
      under the Loan Documents. The Net Proceeds shall be disbursed by Lender to,
      or
      as directed by, Borrower from time to time during the course of the Restoration,
      upon receipt of evidence reasonably satisfactory to Lender that (A) all
      materials installed and work and labor performed (except to the extent that
      they
      are to be paid for out of the requested disbursement) in connection with the
      Restoration have been paid for in full, and (B) there exist no notices of
      pendency, stop orders, mechanic’s or materialman’s liens or notices of intention
      to file same, or any other liens or encumbrances of any nature whatsoever on
      the
      Property arising out of the Restoration which have not either been fully bonded
      to the satisfaction of Lender and discharged of record or in the alternative
      fully insured to the reasonable satisfaction of Lender by the title company
      issuing the title insurance policy.

     

    (e) All
      plans
      and specifications required in connection with any Restoration following a
      Casualty or Condemnation resulting in Net Proceeds of $3,000,000 or more shall
      be subject to prior review and reasonable acceptance in all respects by Lender
      and by an independent consulting engineer selected by Lender (the “Casualty
      Consultant”)
      provided that if the correspondence from Borrower to Lender requesting approval
      of any such plans and specifications (or contractors, subcontractors or
      materialmen in connection therewith) contains a bold faced, conspicuous legend
      at the top of the first page stating that “IF YOU FAIL TO RESPOND TO THIS
      REQUEST FOR APPROVAL IN WRITING WITHIN 15 BUSINESS DAYS, YOUR APPROVAL SHALL
      BE
      DEEMED GIVEN”, and if Lender fails to respond to such request for approval in
      writing within fifteen (15) Business Days after receipt by Lender of such
      written request, the related plans and specifications and all information
      reasonably required in order to adequately review the same, then such approval
      will be deemed given. Lender shall have the use of the plans and specifications
      and all permits, licenses and approvals required or obtained in connection
      with
      the Restoration. The identity of the contractors, subcontractors and 

     

    
      
        
        

      

      
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    materialmen
      engaged in any Restoration following a Casualty or Condemnation resulting in
      Net
      Proceeds of $3,000,000 or more, as well as the contracts under which they have
      been engaged, shall be subject to prior review and acceptance by Lender and
      the
      Casualty Consultant, which acceptance shall not be unreasonably withheld,
      conditioned or delayed. All costs and expenses incurred by Lender in connection
      with making the Net Proceeds available for the Restoration including, without
      limitation, reasonable counsel fees and disbursements and the Casualty
      Consultant’s fees, shall be paid by Borrower.

     

    (f) In
      no
      event shall Lender be obligated to make disbursements of the Net Proceeds in
      excess of an amount equal to the costs actually incurred from time to time
      for
      work in place as part of the Restoration, as certified by the Casualty
      Consultant, minus the Casualty Retainage. The term “Casualty
      Retainage”
shall
      mean an amount equal to ten percent (10%) of the hard costs actually incurred
      for work in place as part of the Restoration, as certified by the Casualty
      Consultant, until the Restoration has been completed. The Casualty Retainage
      shall in no event, and notwithstanding anything to the contrary set forth above
      in this clause (f), be less than the amount actually held back by Borrower
      from
      contractors, subcontractors and materialmen engaged in the Restoration. The
      Casualty Retainage shall not be released until the Casualty Consultant certifies
      to Lender that the Restoration has been completed in accordance with the
      provisions of this Section 7.4.1 and that all approvals necessary for the
      re-occupancy and use of the Property have been obtained from all appropriate
      governmental and quasi governmental authorities, and Lender receives evidence
      satisfactory to Lender that the costs of the Restoration have been paid in
      full
      or will be paid in full out of the Casualty Retainage; provided,
      however,
      that
      Lender will release the portion of the Casualty Retainage being held with
      respect to any contractor, subcontractor or materialman engaged in the
      Restoration as of the date upon which the Casualty Consultant certifies to
      Lender that the contractor, subcontractor or materialman has satisfactorily
      completed all work and has supplied all materials in accordance with the
      provisions of the contractor’s, subcontractor’s or materialman’s contract, the
      contractor, subcontractor or materialman delivers the lien waivers and evidence
      of payment in full of all sums due to the contractor, subcontractor or
      materialman as may be reasonably requested by Lender or by the title company
      issuing the title insurance policy, and Lender receives an endorsement to the
      title insurance policy insuring the continued priority of the lien of the
      Mortgage and evidence of payment of any premium payable for such endorsement.
      If
      required by Lender, the release of any such portion of the Casualty Retainage
      shall be approved by the surety company, if any, which has issued a payment
      or
      performance bond with respect to the contractor, subcontractor or
      materialman.

     

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

     

    (h) If
      at any
      time the Net Proceeds or the undisbursed balance thereof shall not, in the
      reasonable opinion of Lender in consultation with the Casualty Consultant,
      be
      sufficient to pay in full the balance of the costs which are estimated by the
      Casualty Consultant to be incurred in connection with the completion of the
      Restoration, Borrower shall deposit the deficiency (the “Net
      Proceeds Deficiency”)
      with
      Lender before any further disbursement of the Net Proceeds shall be made. The
      Net Proceeds Deficiency deposited with Lender shall be held by Lender and shall
      be disbursed for costs actually incurred in connection with the Restoration
      on
      the same conditions applicable to the disbursement of the Net Proceeds, and
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    this
      Section 7.4 shall constitute additional security for the Debt and other
      obligations under the Loan Documents.

     

    (i) The
      excess, if any, of the Net Proceeds and the remaining balance, if any, of the
      Net Proceeds Deficiency deposited with Lender after the Casualty Consultant
      certifies to Lender that the Restoration has been completed in accordance with
      the provisions of this Section 7.4.1, and the receipt by Lender of evidence
      satisfactory to Lender that all costs incurred in connection with the
      Restoration have been paid in full, shall be remitted by Lender to Borrower,
      provided no Event of Default shall have occurred and shall be continuing under
      the Note, this Agreement or any of the other Loan Documents.

     

    (j) Notwithstanding
      the last sentence of Section 7.1.1(c) and provided no Event of Default exists
      hereunder, proceeds received by Lender on account of the rental or business
      interruption insurance specified in Section 7.1.1(c) above with respect to
      any
      Casualty shall either (x) at any time other than during the continuance of
      a
      Cash Management Period, be released to Borrower for Borrower’s deposit with the
      Clearing Bank or (y) during a Cash Management Period, be deposited by Lender
      directly into the Deposit Account and allocated as Rents in accordance with
      Section 3.10(i) through (viii) but (a) only to the extent it reflects a
      replacement for (i) lost Rents that would have been due under Leases
      existing on the date of such Casualty, and/or (ii) lost Rents under Leases
      that had not yet been executed and delivered at the time of such Casualty which
      Borrower has proven to the insurer under the related Policy would have been
      due
      under such Leases (and then only to the extent such proceeds disbursed by such
      insurer reflect a replacement for such past due Rents) and (b) with respect
      to clause (y) above, only to the extent necessary to fully make the
      disbursements required by Section 3.10(i) through (viii). All other such
      proceeds shall be held by Lender and disbursed in accordance with this Section
      7.4.

     

    7.4.2 Application
      to Debt.
      All Net
      Proceeds not required (i) to be made available for the Restoration or
      (ii) to be returned to Borrower as excess Net Proceeds pursuant to Section
      7.4.1(i) may be retained and applied by Lender toward the payment of the Debt
      whether or not then due and payable in such order, priority and proportions
      as
      Lender in its sole discretion shall deem proper, or, at the discretion of
      Lender, the same may be paid, either in whole or in part, to Borrower for such
      purposes as Lender shall designate, in its discretion. So long as no Event
      of
      Default has occurred and is continuing, any application of Net Proceeds to
      the
      Debt shall not require any payment of the Yield Maintenance Premium or any
      other
      premium or penalty.

     

    ARTICLE
      8

     

    

     

    DEFAULTS

     

    Section
      8.1 Events
      of Default

     

    .
      An
“Event of Default” shall exist with respect to the Loan if any of the following
      shall occur:

     

    (a) if
      any
      portion of the Debt (including required deposits into the Subaccounts pursuant
      to Sections 3.3, 3.4, 3.5, 3.6 and 3.8) that is due on a Payment Date is not
      paid on or 

     

    
      
        
        

      

      
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    before
      the related Payment Date or, for any payment other than payments due on a
      Payment Date, the date on which such payment is due;

     

    (b) subject
      to Borrower’s right to contest as provided herein, if any of the Taxes are not
      paid prior to the date that any interest, late fees or other penalties would
      accrue thereon or any of the Other Charges are not paid when the same are due
      and payable (unless sums equaling the amount of Taxes and Other Charges then
      due
      and payable have been delivered to Lender in accordance with Section 3.3
      hereof);

     

    (c) if
      the
      Policies are not kept in full force and effect, or if the Policies or
      certificates evidencing such Policies are not delivered to Lender within fifteen
      (15) days after request;

     

    (d) except
      as
      expressly permitted by the terms of this Agreement or the other Loan Documents,
      a Transfer occurs without Lender’s prior written consent;

     

    (e) if
      any
      representation or warranty of Borrower, or of any Guarantor, made herein or
      in
      any other Loan Document or in any certificate, report, financial statement
      or
      other instrument or document furnished to Lender in connection with the Loan
      shall have been false or misleading in any material respect when made, provided
      that if such misrepresentation was not intentional, is susceptible to cure
      and
      Lender will not be adversely affected by a delay in enforcing its remedy under
      the Loan Documents, Borrower shall have thirty (30) days after notice thereof
      to
      cure such default;

     

    (f) if
      Borrower or any Guarantor shall make an assignment for the benefit of creditors
      or if Borrower shall generally not be paying its debts as they become
      due;

     

    (g) if
      a
      receiver (other than a receiver appointed by Lender), liquidator or trustee
      of
      Borrower or of any Guarantor shall be appointed or if Borrower or any Guarantor
      shall be adjudicated a bankrupt or insolvent, or if any petition for bankruptcy,
      reorganization or arrangement pursuant to federal bankruptcy law, or any similar
      federal or state law, shall be filed by or against, consented to, or acquiesced
      in by, Borrower or any Guarantor or if any proceeding for the dissolution or
      liquidation of Borrower or of any Guarantor shall be instituted; however, if
      such appointment, adjudication, petition or proceeding was involuntary and
      not
      consented to by Borrower or such Guarantor, upon the same not being discharged,
      stayed or dismissed within ninety (90) days;

     

    (h) Borrower
      breaches any covenant contained in Section 5.12.1, 5.13, 5.15, 5.22, 5.25 or
      5.28;

     

    (i) if
      Borrower shall be in default under any other deed of trust or security agreement
      covering any part of the Property whether it be superior or junior in lien
      to
      the Mortgage;

     

    (j) subject
      to Borrower’s right to contest as provided herein, if the Property becomes
      subject to any mechanic’s, materialman’s or other lien that is not otherwise
      permitted by the Loan Documents and such lien is not removed of record within
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    filing
      or
      recording of such lien (except a lien for local real estate taxes and
      assessments or special taxes not then due and payable);

     

    (k) if
      Borrower fails to cure properly any violations of laws or ordinances affecting
      or which may be interpreted to affect the Property within thirty (30) days
      after
      Borrower first receives notice of any such violations; provided,
      however,
      that if
      such violation is reasonably susceptible of cure, but not within such thirty
      (30) day period and the applicable law or ordinance permits such longer period
      within which to cure such violation, then Borrower shall be permitted up to
      an
      additional sixty (60) days to cure such violation provided that Borrower
      diligently and continuously pursues such cure;

     

    (l) except
      as
      permitted in this Agreement, the alteration, improvement, demolition or removal
      of any of the Improvements without the prior consent of Lender;

     

    (m) if
      Borrower shall continue to be in default under any term, covenant, or provision
      of the Note or any of the other Loan Documents, beyond applicable notice and/or
      cure periods contained in those documents;

     

    (n) if
      Borrower fails to cure a default under any other term, covenant or provision
      of
      this Agreement within thirty (30) days after Borrower first receives notice
      of
      any such default; provided,
      however,
      if such
      default is reasonably susceptible of cure, but not within such thirty (30)
      day
      period, then Borrower may be permitted up to an additional sixty (60) days
      to
      cure such default provided that Borrower diligently and continuously pursues
      such cure;

     

    (o) if
      without Lender’s prior written consent, except as otherwise expressly permitted
      by the Loan Documents, (i) the Management Agreement is terminated,
      (ii) the ownership, management or control of Manager is transferred,
      (iii) there is a material change in the Management Agreement, or
      (iv) there shall be a material default by Borrower under the Management
      Agreement that is not cured within any applicable notice or cure period provided
      under the Management Agreement;

     

    (p) if
      Borrower ceases to continuously operate the Property or any material portion
      thereof as office space for any reason whatsoever (other than temporary
      cessation in connection with any repair or renovation thereof undertaken with
      the consent of Lender or otherwise permitted under this Agreement);

     

    (q) if
      any of
      the assumptions contained in the “non-consolidation” opinion delivered to Lender
      in connection with the Loan, or in any other “non-consolidation” opinion
      delivered subsequent to the closing of the Loan, is or shall become untrue
      in
      any respect; or

     

    (r) if
      Borrower fails to comply with the covenants as to Prescribed Laws set forth
      in
      Section 5.4.1 hereof.

     

    Section
      8.2 Remedies

     

    .

     

     

    
      
        
        

      

      
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    8.2.1 Acceleration.
      Upon
      the occurrence of an Event of Default (other than an Event of Default described
      in paragraph (f) or (g) of Section 8.1) and at any time and from time to time
      thereafter, in addition to any other rights or remedies available to it pursuant
      to the Loan Documents or at law or in equity, Lender may take such action,
      without notice or demand, that Lender deems advisable to protect and enforce
      its
      rights against Borrower and in and to the Property including declaring the
      Debt
      to be immediately due and payable (including unpaid interest, Default Rate
      interest, Late Payment Charges, Yield Maintenance Premium and any other amounts
      owing by Borrower), without notice or demand; and upon any Event of Default
      described in paragraph (f) or (g) of Section 8.1, the Debt (including unpaid
      interest, Default Rate interest, Late Payment Charges, Yield Maintenance Premium
      and any other amounts owing by Borrower) shall immediately and automatically
      become due and payable, without notice or demand, and Borrower hereby expressly
      waives any such notice or demand, anything contained in any Loan Document to
      the
      contrary notwithstanding.

     

    8.2.2 Remedies
      Cumulative.
      Upon
      the occurrence of an Event of Default, all or any one or more of the rights,
      powers, privileges and other remedies available to Lender against Borrower
      under
      the Loan Documents or at law or in equity may be exercised by Lender at any
      time
      and from time to time, whether or not all or any of the Debt shall be declared,
      or be automatically, 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. Any such actions taken
      by
      Lender shall be cumulative and concurrent and may be pursued independently,
      singly, successively, together or otherwise, at such time and in such order
      as
      Lender may determine in its 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 in the Loan Documents.
      Without limiting the generality of the foregoing, Borrower agrees that if an
      Event of Default is continuing, (i) to the extent permitted by applicable
      law, Lender is not subject to any “one action” or “election of remedies” law or
      rule, and (ii) all Liens and other rights, remedies or privileges provided
      to Lender shall remain in full force and effect until Lender has exhausted
      all
      of its remedies against the Property, the Mortgage has been foreclosed, the
      Property has been sold and/or otherwise realized upon in satisfaction of the
      Debt or the Debt has been paid in full. To the extent permitted by applicable
      law, nothing contained in any Loan Document shall be construed as requiring
      Lender to resort to any portion of the Property for the satisfaction of any
      of
      the Debt in preference or priority to any other portion, and Lender may seek
      satisfaction out of the entire Property or any part thereof, in its
      discretion.

     

    8.2.3 Severance.
      Lender
      shall have the right from time to time to sever the Note and the other Loan
      Documents into one or more separate notes, mortgages and other security
      documents in such denominations and priorities of payment and liens as Lender
      shall determine in its discretion for purposes of evidencing and enforcing
      its
      rights and remedies. Borrower shall execute and deliver to Lender from time
      to
      time, promptly after the request of Lender, a severance agreement and such
      other
      documents as Lender shall request in order to effect the severance described
      in
      the preceding sentence, all in form and substance reasonably satisfactory to
      Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true
      and lawful attorney, coupled with an interest, in its name and stead to make
      and
      execute all documents necessary or desirable to effect such severance, Borrower
      ratifying all that such attorney shall do by virtue thereof.

     

     

    
      
        
        

      

      
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    8.2.4 Delay.
      No
      delay or omission to exercise any remedy, right or power accruing upon an Event
      of Default, or the granting of any indulgence or compromise by Lender shall
      impair any such remedy, right or power hereunder or be construed as a waiver
      thereof, but any such remedy, right or power may be exercised from time to
      time
      and as often as may be deemed expedient. A waiver of one Default or Event of
      Default shall not be construed to be a waiver of any subsequent Default or
      Event
      of Default or to impair any remedy, right or power consequent thereon.
      Notwithstanding any other provision of this Agreement, Lender reserves the
      right
      to seek a deficiency judgment or preserve a deficiency claim in connection
      with
      the foreclosure of the Mortgage to the extent necessary to foreclose on all
      or
      any portion of the Property, the Rents, the Cash Management Accounts or any
      other collateral.

     

    8.2.5 Lender’s
      Right to Perform.
      If
      Borrower fails to perform any covenant or obligation contained herein (including
      the covenant set forth in the last sentence of Section 5.4.1) and such failure
      shall continue for a period of five Business Days after Borrower’s receipt of
      written notice thereof from Lender, without in any way limiting Lender’s right
      to exercise any of its rights, powers or remedies as provided hereunder, or
      under any of the other Loan Documents, Lender may, but shall have no obligation
      to, perform, or cause performance of, such covenant or obligation, and all
      costs, expenses, liabilities, penalties and fines of Lender incurred or paid
      in
      connection therewith shall be payable by Borrower to Lender within ten (10)
      days
      after the date Lender makes written demand therefor and, if not paid, shall
      be
      added to the Debt (and to the extent permitted under applicable laws, secured
      by
      the Mortgage and other Loan Documents) and shall bear interest thereafter at
      the
      Default Rate. Notwithstanding the foregoing, Lender shall have no obligation
      to
      send notice to Borrower of any such failure.

     

    ARTICLE
      9

     

    

     

    SPECIAL
      PROVISIONS

     

    Section
      9.1 Sale
      of Note and Securitization

     

    .

     

    9.1.1 Cooperation
      in Securitization.
      At the
      request of the holder of the Note and, to the extent not already required to
      be
      provided by Borrower under the Note, Loan Agreement or other Loan Documents,
      Borrower and its affiliates shall use reasonable efforts to comply with the
      requests of the holder of the Note or to take such action as may be required
      by
      a purchaser, transferee, assignee, servicer, participant or other potential
      investor (collectively, the “Investor”)
      or by
      the Rating Agencies in connection with one or more sales, transfers or
      assignments of the Loan (or portions thereof or interests therein), or grants
      of
      participation interests therein, in connection with one or more securitizations
      of such Note, or portions thereof or interests therein (each such sale and/or
      securitization, a “Securitization”)
      involving the issuance of rated or unrated single-class or multi-class
      securities (the “Securities”)
      secured by or evidencing direct or indirect ownership interests in, among other
      things, the Note (or any portion thereof or interests therein) and the Loan
      Agreement. Such efforts, with respect to each Securitization may include,
      without limitation, to:

     

     

    
      
        
        

      

      
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    (a) (i) provide
      such financial and other information with respect to the Property, Borrower,
      the
      OP and the REIT (the OP and the REIT, being individually or collectively
      referred to herein as the “Parent”)
      and
      the manager of the Property as reasonably determined by the holder of the Note
      to be necessary or appropriate in connection with the Securitization (including,
      without limitation, existing audited or unaudited financial statements or at
      no
      expense to Borrower or any Parent, audited or unaudited financial statements),
      (ii) provide budgets relating to the Property (iii) at no expense to
      Borrower or any Parent, perform or permit or cause to be performed or permitted
      such site inspections, appraisals, market studies, environmental reviews and
      reports (Phase I’s and, if appropriate, Phase II’s), engineering reports and
      other due diligence investigations of the Property, as may be reasonably
      requested by the holder of the Note, the Rating Agencies, and/or Investors
      in
      the Securities, or as may be reasonably necessary or appropriate in connection
      with the Securitization in a manner which does not unreasonably interfere with
      the tenants or occupants thereof (such information in clauses (i), (ii) and
      (iii) being collectively referred to as the “Provided
      Information”),
      together with appropriate verification and/or consents with respect to the
      Provided Information through letters of auditors or opinions of counsel of
      independent attorneys acceptable to the holder of the Note and the Rating
      Agencies;

     

    (b) prepare
      a
      presentation for the Rating Agencies describing Borrower, Parent, the Property,
      management of the Property and such other matters as are customary for
      securitizations such as the Securitization, in each case as may be reasonably
      requested by the holder of the Note, the Rating Agencies and/or Investors in
      the
      Securities or as may be reasonably determined by the holder of the Note to
      be
      necessary or appropriate in connection with the Securitization;

     

    (c) cause
      counsel to render opinions, which may be relied upon by the holder of the Note,
      the Rating Agencies, Investors and/or other participants in the Securitization,
      as to non consolidation or any other opinion customary in securitization
      transactions with respect to the Property, Borrower, Parent and their respective
      affiliates, which counsel and opinions shall be reasonably satisfactory to
      the
      holder of the Note, the Rating Agencies and/or Investors in the
      Securities;

     

    (d) work
      with
      and, if requested, supervise third-party service providers engaged by Borrower
      to obtain, collect and deliver information reasonably required by the Rating
      Agencies in connection with the Securitization;

     

    (e) if
      required by the Rating Agencies, use commercially reasonable efforts to deliver
      such additional tenant estoppel letters, subordination agreements or other
      agreements from parties to agreements that affect the Property, which estoppel
      letters, subordination agreements or other agreements shall be reasonably
      satisfactory to Lender and the Rating Agencies;

     

    (f) make
      such
      representations and warranties as of the closing date of the Securitization
      with
      respect to the Property, Borrower, Parent, the Note, Loan Agreement and other
      Loan Documents as may be reasonably requested by the holder of the Note, the
      Rating Agencies and/or Investors in the Securities and as are consistent with
      the facts covered by such 

     

    
      
        
        

      

      
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    representations
      and warranties as they exist on the date thereof, including the representations
      and warranties made in the Note, Loan Agreement and other Loan Documents;
      and

     

    (g) execute
      such amendments to the Note, Loan Agreement, other Loan Documents and
      organizational documents as may be reasonably requested by the holder of the
      Note, the Rating Agencies and/or Investors in the Securities or otherwise to
      effect one or more Securitizations (including, without limitation, such
      amendments as shall be necessary or advisable to sever the Note (and/or any
      then
      existing component thereof) into one or more notes and/or one or more components
      and allocate Principal amounts thereof in order to effectuate one or more sales
      of the Note (and/or the resulting notes or components thereof) and/or to
      correspond to the related classes of Securities in one or more Securitizations
      so long as, in all such cases, the overall duration-weighted interest rate
      over
      all of the notes and components shall equal the Interest Rate); provided,
      however,
      that
      Borrower shall not be required to modify or amend the Note, Loan Agreement
      or
      any other Loan Documents if such modification or amendment would (i) have a
      material adverse economic effect on Borrower or its Affiliates, (ii) modify
      or amend the loan term, amortization or any other economic term of the Loan
      or
      (iii) otherwise materially increase the obligations or materially decrease
      the rights of Borrower or the other parties pursuant to the Note, Loan Agreement
      and other Loan Documents (including, but not limited to, modifying the transfer,
      recourse, prepayment, event of default or remedy provisions of the Loan
      Documents or the organizational documents of Borrower or its
      Affiliate).

     

    9.1.2 Costs
      and Expenses.
      Borrower, the REIT and their Affiliates will bear their own internal costs
      of
      cooperation required by this Agreement in connection with any Securitization,
      but Lender shall be responsible for all other out-of-pocket costs and expenses
      in connection with any Securitization after the closing of the
      Loan.

     

    9.1.3 Indemnification. 

     

    (a) Borrower
      and its respective Affiliates understand that certain of the Provided
      Information may be included in disclosure documents in connection with each
      Securitization, including, without limitation, a prospectus, prospectus
      supplement, private placement memorandum, collateral term sheets, structured
      term sheets and computational materials (each, a “Disclosure
      Document”)
      and
      may also be included in filings with the Securities and Exchange Commission
      pursuant to the Securities Act of 1933, as amended (the “Securities
      Act”),
      or
      the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”),
      or
      provided or made available to Investors in the Securities, the Rating Agencies
      and service providers relating to such Securitization. In the event that such
      Disclosure Document is required to be revised prior to the sale of all
      Securities, Borrower, and its respective Affiliates will cooperate with the
      holder of the Note in updating the Disclosure Document by providing all current
      information necessary to keep the Disclosure Document accurate and complete
      in
      all material respects; provided,
      however,
      that
      this provision shall be limited to those portions of the Disclosure Statement
      that described Borrower or any of its Affiliates, the Property, the Loan or
      the
      other Loan Documents.

     

    (b) In
      the
      case of each Securitization, Borrower agrees to cooperate in connection with
      (i) the preparation of a preliminary and a final private placement
      memorandum and/or (ii) the preparation of a preliminary and final
      prospectus or prospectus supplement, as applicable, and (iii) the execution
      of an indemnification certificate (A) certifying that Borrower has
      carefully 

     

    
      
        
        

      

      
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    examined
      in each such memorandum or prospectus, as applicable, all sections containing
      information relating to the Property, Parent, Borrower, any Affiliates of
      Parent, Borrower, or the Loan, and that such information included therein
      (collectively, the “Securitization
      Information”),
      does
      not contain any untrue statement of a material fact or omit to state a material
      fact known to Borrower that is necessary in order to make the statements made,
      in the light of the circumstances under which they were made, not misleading,
      (B) indemnifying Lender (and for purposes of this Section 9.1.3, Lender
      hereunder shall include its officers, directors and employees), the Person
      who
      acts as depositor, issuer and/or registrant who may have filed a registration
      statement relating to the Securitization, each underwriter or placement agent
      involved in the Securitization, each of their respective directors and officers
      and each Person who controls such Person within the meaning of Section 15 of
      the
      Securities Act or Section 20 of the Exchange Act (collectively, the
“Indemnified
      Group”),
      for
      any losses, claims, damages or liabilities (collectively, the “Liabilities”)
      to
      which any of the Indemnified Group may become subject insofar as the Liabilities
      arise out of or are based upon any untrue statement or alleged untrue statement
      of any material fact contained in the Securitization Information which untrue
      or
      alleged untrue statement is not expressly disclosed to Lender by Borrower after
      Borrower has been given an opportunity to review the Securitization Information,
      or arise out of or are based upon the omission or alleged omission to state
      therein a material fact required to be stated therein or necessary in order
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading and (C) agreeing to reimburse each Person in the
      Indemnified Group for any legal or other expenses incurred by each such Person
      in connection with investigating or defending the Liabilities for which an
      indemnity is owed hereunder; provided,
      however,
      that
      Borrower will be liable in any such case under clauses (B) or (C) above only
      to
      the extent that any such Liability arises out of or is based upon any Provided
      Information or upon the omission or alleged omission to state therein a material
      fact known to Borrower that is required to be stated therein or necessary in
      order to make the statements therein, in light of the circumstances under which
      they were made, not misleading, or any other information furnished to Lender
      or
      any other Person in the Indemnified Group by Borrower or an affiliate in
      connection with the preparation of any Disclosure Document or in connection
      with
      the underwriting of the Debt, including, without limitation, financial
      statements of Borrower, operating statements, rent rolls, environmental site
      assessment reports and Property condition reports with respect to the Property.
      This indemnity agreement will be in addition to any liability which Borrower
      may
      otherwise have.

     

    (c) In
      the
      case of each Securitization, in connection with filings under the Exchange
      Act,
      Borrower agrees to indemnify (i) each Person in the Indemnified Group for
      Liabilities to which each such Person may become subject insofar as the
      Liabilities arise out of or are based upon an untrue statement or an alleged
      untrue statement in the Provided Information or an omission or alleged omission
      to state in the Provided Information a material fact known to Borrower that
      is
      necessary in order to make the statements in the Provided Information, in light
      of the circumstances under which they were made, not misleading, which untrue
      or
      alleged untrue statement or omission or alleged omission is not expressly
      disclosed to Lender by Borrower after Borrower has been given an opportunity
      to
      review such filings under the Exchange Act and (ii) each Person in the
      Indemnified Group for any reasonable legal or other expenses incurred by each
      such Person in connection with defending or investigating the Liabilities for
      which an indemnity is owed hereunder.

     

     

    
      
        
        

      

      
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    (d) Promptly
      after receipt by a party seeking indemnification hereunder of notice of the
      commencement of any action, suit or proceeding against such party in respect
      of
      which a claim is to be made under this Section 9.1.3, such party will notify
      Borrower in writing of the commencement thereof, but the omission to so notify
      Borrower will not relieve Borrower from any liability which Borrower may have
      to
      any indemnified party hereunder except to the extent that failure to notify
      causes prejudice to Borrower. In the event that any action is brought against
      any indemnified party, and it notifies Borrower of the commencement thereof,
      Borrower will be entitled to participate therein and, to the extent that
      Borrower may elect by written notice delivered to the indemnified party promptly
      after receiving the aforesaid notice from such indemnified party, to assume
      the
      defense thereof with counsel reasonably satisfactory to such indemnified party.
      After notice from Borrower to such indemnified party hereunder, Borrower shall
      be responsible for any legal or other expenses subsequently incurred by such
      indemnified party in connection with the defense thereof other than reasonable
      costs of investigation; provided,
      however,
      if the
      defendants in any such action include both the indemnified party and Borrower
      and the indemnified party shall have reasonably concluded that there are any
      legal defenses available to it and/or other indemnified parties that are
      different from or in addition to those available to Borrower, the indemnified
      party or parties shall have the right to select separate counsel to assert
      such
      legal defenses and to otherwise participate in the defense of such action on
      behalf of such indemnified party or parties. Borrower shall not be liable for
      the expenses of more than one separate counsel unless an indemnified party
      shall
      have reasonably concluded that there may be legal defenses available to Borrower
      that are different from or additional to those available to another indemnified
      party.

     

    (e) In
      order
      to provide for just and equitable contribution in circumstances in which any
      indemnification provided for under this Section 9.1.3 is for any reason held
      to
      be unenforceable, unavailable or insufficient to hold harmless an indemnified
      party in respect of any Liabilities which would otherwise be indemnifiable
      hereunder, Borrower shall contribute to the amount paid or payable by the
      indemnified party as a result of such Liabilities; provided,
      however,
      that if
      any indemnified party is guilty of fraudulent misrepresentation (within the
      meaning of Section 11(f) of the Securities Act) it shall not be entitled to
      contribution from Borrower if Borrower was not guilty of such fraudulent
      misrepresentation. In determining the amount of contribution to which the
      respective parties are entitled, the following factors shall be considered:
      (i) the relative knowledge and access to information concerning the matter
      with respect to which a claim was asserted; (ii) the opportunity to correct
      and prevent any statement or omission; and (iii) any other equitable
      considerations appropriate in the circumstances. Lender and Borrower hereby
      agree that it would not be equitable if the amount of such contribution were
      determined by pro rata or per capita allocation.

     

    (f) The
      liabilities and obligations of Borrower and its Affiliates hereunder shall
      survive the termination of the Note, Loan Agreement and other Loan Documents
      and
      the satisfaction and discharge of the Debt.

     

    (g) Each
      Person in the Indemnified Group is an intended third party beneficiary of the
      obligations of Borrower herein.

     

    9.1.4 Rating
      Surveillance.
      Lender
      will retain the Rating Agencies to provide rating surveillance services on
      Securities. The pro rata expenses of such surveillance will be 

     

    
      
        
        

      

      
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    paid
      for
      by Borrower based on the applicable percentage of such expenses determined
      by
      dividing the then outstanding Principal by the then aggregate outstanding amount
      of the pool created in the Securitization which includes the Loan.

     

    9.1.5 Severance
      of Loan.
      Lender
      shall have the right, at any time (whether prior to, in connection with, or
      after any Securitization), with respect to all or any portion of the Loan,
      to
      modify, split and/or sever all or any portion of the Loan as hereinafter
      provided. Without limiting the foregoing, Lender may (i) cause the Note and
      the Mortgage to be split into a first and second mortgage loan, (ii) create
      one more senior and subordinate notes (i.e.,
      an A/B
      or A/B/C structure), (iii) create multiple components of the Note or Notes
      (and allocate or reallocate the Principal balance of the Loan among such
      components) or (iv) otherwise sever the Loan into two or more loans secured
      by mortgages, in each such case, in whatever proportion and whatever priority
      Lender determines; provided,
      however,
      in each
      such instance the outstanding Principal balance of all the Notes evidencing
      the
      Loan (or components of such Notes) immediately after the effective date of
      such modification equals the outstanding Principal balance of the Loan
      immediately prior to such modification and the weighted average of the interest
      rates for all such Notes (or components of such Notes) immediately after the
      effective date of such modification equals the interest rate of the original
      Note immediately prior to such modification and such action shall not result
      in
      additional costs to Borrower except as expressly provided above. If requested
      by
      Lender, Borrower (and Borrower’s constituent members, if applicable, and
      Guarantor) shall execute within five (5) Business Days after such request,
      such
      documentation as Lender may reasonably request to evidence and/or effectuate
      any
      such modification or severance.

     

    ARTICLE
      10

     

    

     

    MISCELLANEOUS

     

    Section
      10.1 Exculpation

     

    .
      Subject
      to the qualifications below, Lender shall not enforce the liability and
      obligation of Borrower or its constituent members, partners, shareholders,
      directors, employees or agents or the direct or indirect constituent members,
      partners, shareholders, directors, employees or agents thereof (collectively,
      the “Borrower
      Parties”)
      or any
      other Person, to perform and observe the obligations contained in this
      Agreement, the Note or any of the other Loan Documents by any action or
      proceeding wherein a money judgment shall be sought against any of the Borrower
      Parties or any other Person, except that Lender may bring a foreclosure action,
      an action for specific performance or any other appropriate action or proceeding
      to enable Lender to enforce and realize upon the Property, the Rents or any
      other collateral given to Lender pursuant to this Agreement and the other Loan
      Documents; provided,
      however,
      that,
      except as specifically provided herein, any judgment in any such action or
      proceeding shall be enforceable against the Borrower Parties only to the extent
      of their interest in the Property, the Rents and in any other collateral given
      to Lender, and Lender, by accepting this Agreement, the Note and the other
      Loan
      Documents, agrees that it shall not sue for, seek or demand any deficiency
      judgment against any of the Borrower Parties or any other Person in any such
      action or proceeding under or by reason of or in connection with this Agreement,
      the Note or any of the other Loan Documents. The provisions of this paragraph
      shall not, however, (i) constitute a waiver, release or impairment of

     

    
      
        
        

      

      
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    any
      obligation evidenced or secured by this Agreement, the Note or any of the other
      Loan Documents; (ii) impair the right of Lender to name any of the Borrower
      Parties, as a party defendant in any action or suit for foreclosure and sale
      under the Mortgage; (iii) affect the validity or enforceability of any
      guaranty made in connection with the Loan or any rights and remedies of Lender
      thereunder; (iv) impair the right of Lender to obtain the appointment of a
      receiver; (v) impair the enforcement of the Assignment of Leases and Rents
      executed in connection herewith; or (vi) constitute a waiver of the right
      of Lender to enforce the liability and obligation of Borrower (but not against
      any members of Borrower (other than Guarantor to the extent provided in the
      Non-Recourse Guaranty) or their direct or indirect constituent members or
      partners or any other Person), by money judgment or otherwise, to the extent
      of
      any loss, damage, cost, expense, liability, claim or other obligation (but
      excluding any punitive, consequential or speculative damages) incurred by Lender
      (including attorneys’ fees and costs reasonably incurred) arising out of or in
      connection with the following:

     

    (a) fraud
      or
      intentional misrepresentation by Borrower or any Guarantor in connection with
      the Loan;

     

    (b) intentional
      physical waste of the Property (including, but not limited to, waste due to
      gross negligence) by Borrower or any affiliate thereof; provided,
      however,
      such
      physical waste shall exclude wear and tear to the Property that occurs in the
      ordinary course of business of the Property by Borrower or any affiliate
      thereof;

     

    (c) the
      material breach of any representation, warranty, covenant or indemnification
      provision in that certain Environmental and Hazardous Substance Indemnification
      Agreement of even date herewith given by Borrower to Lender or in this Agreement
      concerning Environmental Laws, Hazardous Substances and Asbestos;

     

    (d) the
      removal or disposal by Borrower or any affiliate thereof of any portion of
      the
      Property after an Event of Default has occurred and while it is continuing,
      unless such portion of the Property is replaced by an item of equal or greater
      value as determined by Lender in its reasonable discretion;

     

    (e) the
      misapplication or conversion by Borrower or any affiliate thereof of
      (i) any insurance proceeds paid by reason of any loss, damage or
      destruction to the Property, (ii) any awards or other amounts received in
      connection with the condemnation of all or a portion of the Property,
      (iii) any Rents following an Event of Default or (iv) any Rents paid
      more than one month in advance;

     

    (f) failure
      to pay charges for labor or materials or taxes or other charges that can create
      liens superior to the lien of the Mortgage on any portion of the Property unless
      such taxes or other charges are being contested in accordance herewith or such
      taxes or charges have been delivered to Lender in accordance with Section 3.3
      or
      Borrower has complied with Section 5.2; and

     

    (g) any
      security deposits collected by Borrower or any affiliate thereof with respect
      to
      the Property which are not delivered to Lender upon a foreclosure of the
      Property or action in lieu thereof, except to the extent any such security
      deposits were applied in accordance 

     

    
      
        
        

      

      
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    with
      the
      terms and conditions of any of the Leases prior to the occurrence of the Event
      of Default that gave rise to such foreclosure or action in lieu
      thereof.

     

    Notwithstanding
      anything to the contrary in any of the Loan Documents (i) Lender shall not
      be deemed to have waived any right which Lender may have under Section 506(a),
      506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file
      a
      claim for the full amount of the Debt or to require that all collateral shall
      continue to secure all of the Debt owing to Lender in accordance with the Loan
      Documents, and (ii) the Debt shall become fully recourse to Borrower (but not
      its members (other than Guarantor solely to the extent provided in the
      Non-Recourse Guaranty) or other direct or indirect constituent members or
      partners or any other Person) in the event that: (A) the first full Monthly
      Payment Amount (as defined in the Note) under the Note is not paid when due;
      (B) other than in connection with a default under subsection (x) of
      the definition of Special Purpose Bankruptcy Remote Entity set forth in Schedule
      5 hereof, Borrower fails to maintain its status as a Special Purpose Bankruptcy
      Remote Entity in accordance with the provisions of this Agreement and such
      failure results in the substantive consolidation of Borrower with another
      Person; (C) except as otherwise permitted pursuant to the Loan Documents,
      Borrower fails to obtain Lender’s prior written consent to any subordinate
      financing or other voluntary lien encumbering the Property; (D) except as
      otherwise permitted pursuant to the Loan Documents, Borrower fails to obtain
      Lender’s prior written consent to any assignment, transfer, or conveyance of the
      Property or any interest therein as and to the extent required by this Agreement
      or the Mortgage; or (E) (1) if any petition for bankruptcy,
      reorganization or arrangement pursuant to federal bankruptcy law, or any similar
      federal or state law, shall be filed by Borrower or Guarantor, or (2) if
      Borrower or Guarantor files an answer consenting to, or otherwise joining in,
      any involuntary petition for bankruptcy, reorganization or arrangement pursuant
      to federal bankruptcy law, or any similar federal or state law filed against
      it
      by any other Person, or is found pursuant to a final, unappealable order of
      a
      court of competent jurisdiction to have solicited or caused to be solicited
      creditors to file any involuntary petition for bankruptcy, reorganization or
      arrangement pursuant to federal bankruptcy law, or any similar federal or state
      law against Borrower or Guarantor, or (3) if Borrower or Guarantor are
      found, pursuant to a final unappealable order of a court of competent
      jurisdiction, to have been in collusion with creditors that initiate a
      bankruptcy action or proceeding against Borrower or Guarantor.

     

    Section
      10.2 Brokers
      and Financial Advisors

     

    .
      Borrower hereby represents that, with the exception of Secured Capital Corp.,
      it
      has dealt with no financial advisors, brokers, underwriters, placement agents,
      agents or finders in connection with the Loan. Borrower shall indemnify and
      hold
      Lender harmless from and against any and all claims, liabilities, costs and
      expenses (including attorneys’ fees, whether incurred in connection with
      enforcing this indemnity or defending claims of third parties) of any kind
      in
      any way relating to or arising from a claim by any Person that such Person
      acted
      on behalf of Borrower in connection with the transactions contemplated herein.
      The provisions of this Section 10.2 shall survive the expiration and termination
      of this Agreement and the repayment of the Debt.

     

    Section
      10.3 Retention
      of Servicer

     

     

    
      
        
        

      

      
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    .
      Lender
      reserves the right to retain the Servicer to act as its agent hereunder with
      such powers as are specifically delegated to the Servicer by Lender, whether
      pursuant to the terms of this Agreement, any pooling and servicing agreement
      or
      similar agreement entered into as a result of a Securitization, the Cash
      Management Agreement or otherwise, together with such other powers as are
      reasonably incidental thereto. Borrower shall pay any reasonable fees and
      expenses of the Servicer in connection with a release of the Property,
      assumption or modification of the Loan, enforcement of the Loan Documents or
      any
      other action taken by Servicer hereunder on behalf of Lender.

     

    Section
      10.4 Survival

     

    .
      This
      Agreement and all covenants, agreements, representations and warranties made
      herein and in the certificates delivered pursuant hereto shall survive the
      making by Lender of the Loan and the execution and delivery to Lender of the
      Note, and shall continue in full force and effect so long as any of the Debt
      is
      unpaid or such longer period if expressly set forth in this Agreement. All
      Borrower’s covenants and agreements in this Agreement shall inure to the benefit
      of the respective legal representatives, successors and assigns of
      Lender.

     

    Section
      10.5 Lender’s
      Discretion

     

    .
      Whenever pursuant to this Agreement or any other Loan Document, Lender exercises
      any right given to it to approve or disapprove, or consent or withhold consent,
      or any arrangement or term is to be satisfactory to Lender or is to be in
      Lender’s discretion, the decision of Lender to approve or disapprove, to consent
      or withhold consent, or to decide whether arrangements or terms are satisfactory
      or not satisfactory, or acceptable or unacceptable or in Lender’s discretion
      shall (except as is otherwise specifically herein provided) be in the sole
      discretion of Lender and shall be final and conclusive.

     

    Section
      10.6 Governing
      Law

     

    .

     

    (a) THIS
      AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK AND THE PROCEEDS OF THE NOTE
      DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH
      STATE
      THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE
      UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING MATTERS
      OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS
      ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
      LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN
      SUCH
      STATE AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT
      ALL
      TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS
      CREATED PURSUANT TO THE MORTGAGE AND THE ASSIGNMENT OF LEASES AND RENTS SHALL
      BE
      GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE
      PREMISES (AS DEFINED IN THE MORTGAGE) ARE LOCATED, IT BEING UNDERSTOOD THAT,
      TO
      THE FULLEST 

     

    
      
        
        

      

      
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    EXTENT
      PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL
      GOVERN THE VALIDITY AND THE ENFORCEABILITY OF ALL LOAN DOCUMENTS AND THE DEBT.
      TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND
      IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION
      GOVERNS THIS AGREEMENT AND THE NOTE, AND THIS AGREEMENT AND THE NOTE SHALL
      BE
      GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
      PURSUANT TO § 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

     

    (b) ANY
      LEGAL
      SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING
      TO THIS AGREEMENT SHALL BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN NEW
      YORK
      COUNTY, NEW YORK AND BORROWER WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
      HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER
      HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT,
      ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT CORPORATION
      TRUST COMPANY AT 111 EIGHTH AVENUE, NEW YORK, NEW YORK 10011, AS ITS AUTHORIZED
      AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS
      WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR
      STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON
      SAID
      AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE OF BORROWER MAILED
      OR
      DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY
      RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER (UNLESS LOCAL LAW REQUIRES
      ANOTHER METHOD OF SERVICE), IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE
      OF NEW YORK. BORROWER (i) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED
      ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (ii) MAY AT ANY TIME AND FROM
      TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW
      YORK,
      NEW YORK (WHICH OFFICE SHALL BE DESIGNATED AS THE ADDRESS FOR SERVICE OF
      PROCESS), AND (iii) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS
      AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED
      WITHOUT LEAVING A SUCCESSOR.

     

    Section
      10.7 Modification,
      Waiver in Writing

     

    .
      No
      modification, amendment, extension, discharge, termination or waiver of any
      provision of this Agreement or of any other Loan Document, nor consent to any
      departure by Borrower therefrom, shall in any event be effective unless the
      same
      shall be in a writing signed by the party against whom enforcement is sought,
      and then such waiver or consent shall be effective only in the specific
      instance, and for the purpose, for which given. Except as otherwise expressly
      provided herein, no notice to or demand on Borrower shall entitle Borrower
      to
      any other or future notice or demand in the same, similar or other
      circumstances. Neither any failure nor any delay on the part of Lender in
      insisting upon strict performance of any term, condition, covenant or agreement,
      or exercising any right, power, remedy or privilege hereunder, or under

     

    
      
        
        

      

      
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    any
      other
      Loan Document, shall operate as or constitute a waiver thereof, nor shall a
      single or partial exercise thereof preclude any other future exercise, or the
      exercise of any other right, power, remedy or privilege. In particular, and
      not
      by way of limitation, by accepting payment after the due date of any amount
      payable under any Loan Document, Lender shall not be deemed to have waived
      any
      right either to require prompt payment when due of all other amounts due under
      the Loan Documents, or to declare an Event of Default for failure to effect
      prompt payment of any such other amount.

     

    Section
      10.8 Trial
      by Jury

     

    .
      BORROWER AND LENDER 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 BORROWER AND LENDER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY
      EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD
      OTHERWISE ACCRUE. EITHER PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS
      PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY THE
      OTHER.

     

    Section
      10.9 Headings/Exhibits

     

    .
      The
      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. The Exhibits attached hereto, are hereby incorporated by reference
      as a
      part of the Agreement with the same force and effect as if set forth in the
      body
      hereof.

     

    Section
      10.10 Severability

     

    .
      Wherever possible, each provision of this Agreement shall be interpreted in
      such
      manner as to be effective and valid under applicable law, but if any provision
      of this Agreement shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provision or the remaining provisions
      of this Agreement.

     

    Section
      10.11 Preferences

     

    .
      Upon
      the occurrence and continuance of an Event of Default, Lender shall have the
      continuing and exclusive right to apply or reverse and reapply any and all
      payments by Borrower to any portion of the Debt. To the extent Borrower makes
      a
      payment to Lender, or Lender receives proceeds of any collateral, which is
      in
      whole or part 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
      Debt or part thereof intended to be satisfied shall be revived and continue
      in
      full force and effect, as if such payment or proceeds had not 

     

    
      
        
        

      

      
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    been
      received by Lender. This provision shall survive the expiration or termination
      of this Agreement and the repayment of the Debt.

     

    Section
      10.12 Waiver
      of Notice

     

    .
      Borrower shall not be entitled to any notices of any nature whatsoever from
      Lender except with respect to matters for which this Agreement or any other
      Loan
      Document specifically and expressly requires the giving of notice by Lender
      to
      Borrower and except with respect to matters for which Borrower is not, pursuant
      to applicable Legal Requirements, permitted to waive the giving of notice.
      Borrower hereby expressly waives the right to receive any notice from Lender
      with respect to any matter for which no Loan Document specifically and expressly
      requires the giving of notice by Lender to Borrower.

     

    Section
      10.13 Remedies
      of Borrower

     

    .
      If a
      claim or adjudication is made that Lender or any of its agents, including
      Servicer, has acted unreasonably or unreasonably delayed acting in any case
      where by law or under any Loan Document, Lender or any such agent, as the case
      may be, has an obligation to act reasonably or promptly, Borrower agrees that
      neither Lender nor its agents, including Servicer, shall be liable for any
      monetary damages, and Borrower’s sole remedy shall be to commence an action
      seeking injunctive relief or declaratory judgment. Any action or proceeding
      to
      determine whether Lender has acted reasonably shall be determined by an action
      seeking declaratory judgment. Borrower specifically waives any claim against
      Lender and its agents, including Servicer, with respect to actions taken by
      Lender or its agents on Borrower’s behalf.

     

    Section
      10.14 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, understandings and negotiations among
      or
      between such parties, whether oral or written, are superseded by the terms
      of
      this Agreement and the other Loan Documents.

     

    Section
      10.15 Offsets,
      Counterclaims and Defenses

     

    .
      Borrower hereby waives the right to assert a counterclaim, other than a
      mandatory or compulsory counterclaim, in any action or proceeding brought
      against it by Lender or its agents, including Servicer, or otherwise offset
      any
      obligations to make payments required under the Loan Documents. Any assignee
      of
      Lender’s interest in and to the Loan Documents shall take the same free and
      clear of all offsets, counterclaims or defenses which Borrower may otherwise
      have against any assignor of such documents, and no such offset, counterclaim
      or
      defense shall be interposed or asserted by Borrower in any action or proceeding
      brought by any such assignee upon such documents, and any such right to
      interpose or assert any such offset, counterclaim or defense in any such action
      or proceeding is hereby expressly waived by Borrower.

     

    Section
      10.16 Publicity

     

    .
      All
      news releases, publicity or advertising through any media intended to reach
      the
      general public (collectively, “Public
      Releases”)
      issued
      by Borrower or its Affiliates that refer to the 

     

    
      
        
        

      

      
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    Loan
      Documents, the Loan, Lender or any member of the Indemnified Group, a Loan
      purchaser, the Servicer or the trustee in a Securitization shall be subject
      to
      the prior written approval of Lender. Lender shall have the right to issue
      any
      Public Releases without Borrower’s approval.

     

    Section
      10.17 No
      Usury

     

    .
      Borrower and Lender intend at all times to comply with applicable state law
      or
      applicable United States federal law (to the extent that it permits Lender
      to
      contract for, charge, take, reserve or receive a greater amount of interest
      than
      under state law) and that this Section 10.17 shall control every other agreement
      in the Loan Documents. If the applicable law (state or federal) is ever
      judicially interpreted so as to render usurious any amount called for under
      the
      Note or any other Loan Document, or contracted for, charged, taken, reserved
      or
      received with respect to the Debt, or if Lender’s exercise of the option to
      accelerate the maturity of the Loan or any prepayment by Borrower results in
      Borrower having paid any interest in excess of that permitted by applicable
      law,
      then it is Borrower’s and Lender’s express intent that all excess amounts
      theretofore collected by Lender shall be credited against the unpaid Principal
      and all other Debt (or, if the Debt has been or would thereby be paid in full,
      refunded to Borrower), and the provisions of the Loan Documents immediately
      be
      deemed reformed and the amounts thereafter collectible thereunder reduced,
      without the necessity of the execution of any new document, so as to comply
      with
      applicable law, but so as to permit the recovery of the fullest amount otherwise
      called for thereunder. All sums paid or agreed to be paid to Lender for the
      use,
      forbearance or detention of the Loan shall, to the extent permitted by
      applicable law, be amortized, prorated, allocated, and spread throughout the
      full stated term of the Loan until payment in full so that the rate or amount
      of
      interest on account of the Debt does not exceed the maximum lawful rate from
      time to time in effect and applicable to the Debt for so long as the Debt is
      outstanding. Notwithstanding anything to the contrary contained in any Loan
      Document, it is not the intention of Lender to accelerate the maturity of any
      interest that has not accrued at the time of such acceleration or to collect
      unearned interest at the time of such acceleration.

     

    Section
      10.18 Conflict;
      Construction of Documents

     

    .
      In the
      event of any conflict between the provisions of this Agreement and any of the
      other Loan Documents, the provisions of this Agreement shall control. The
      parties hereto acknowledge that each is represented by separate counsel in
      connection with the negotiation and drafting of the Loan Documents and that
      the
      Loan Documents shall not be subject to the principle of construing their meaning
      against the party that drafted them.

     

    Section
      10.19 No
      Third Party Beneficiaries

     

    .
      The
      Loan Documents are solely for the benefit of Lender and Borrower and nothing
      contained in any Loan Document shall be deemed to confer upon anyone other
      than
      the Lender and Borrower any right to insist upon or to enforce the performance
      or observance of any of the obligations contained therein.

     

    Section
      10.20 Yield
      Maintenance Premium

     

    .
      Borrower acknowledges that (a) Lender is making the Loan in consideration
      of the receipt by Lender of all interest and other benefits intended to be
      conferred by the Loan Documents and 

     

    
      
        
        

      

      
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    (b) if
      payments of Principal are made to Lender prior to the Stated Maturity Date,
      for
      any reason whatsoever, whether voluntary, as a result of Lender’s acceleration
      of the Loan after an Event of Default, by operation of law or otherwise, Lender
      will not receive all such interest and other benefits and may, in addition,
      incur costs. For these reasons, and to induce Lender to make the Loan, Borrower
      agrees that, except as expressly provided in this Agreement, all prepayments,
      if
      any, whether voluntary or involuntary, will be accompanied by the Yield
      Maintenance Premium. Such Yield Maintenance Premium shall be required whether
      payment is made by Borrower, by a Person on behalf of Borrower, or by the
      purchaser at any foreclosure sale, and may be included in any bid by Lender
      at
      such sale. Borrower further acknowledges that (A) it is a knowledgeable
      real estate developer and/or investor; (B) it fully understands the effect
      of the provisions of this Section 10.20, as well as the other provisions of
      the
      Loan Documents; (C) the making of the Loan by Lender at the Interest Rate
      and other terms set forth in the Loan Documents are sufficient consideration
      for
      Borrower’s obligation to pay a Yield Maintenance Premium (if required); and
      (D) Lender would not make the Loan on the terms set forth herein without
      the inclusion of such provisions. Borrower also acknowledges that the provisions
      of this Agreement limiting the right of prepayment and providing for the payment
      of the Yield Maintenance Premium and other charges specified herein were
      independently negotiated and bargained for, and constitute a specific material
      part of the consideration given by Borrower to Lender for the making of the
      Loan
      except as expressly permitted hereunder. BORROWER
      EXPRESSLY ACKNOWLEDGES AND UNDERSTANDS THAT, PURSUANT TO THE TERMS OF THIS
      AGREEMENT, BORROWER HAS AGREED THAT IT DOES NOT HAVE THE RIGHT TO PREPAY THE
      LOAN IN WHOLE OR IN PART WITHOUT PREMIUM EXCEPT AS OTHERWISE PROVIDED HEREIN,
      AND THAT BORROWER SHALL BE LIABLE FOR THE PAYMENT OF THE PREPAYMENT PREMIUM
      OR
      YIELD MAINTENANCE PREMIUM, AS APPLICABLE AND TO THE EXTENT PROVIDED HEREIN
      IF
      BORROWER PREPAYS THE LOAN FOLLOWING THE OCCURRENCE OF AN ACCELERATION OF THE
      LOAN. FURTHERMORE, BORROWER WAIVES ANY RIGHTS THEY MAY HAVE UNDER SECTION
      2954.10 OF THE CALIFORNIA CIVIL CODE, OR ANY SUCCESSOR STATUTE, AND BORROWER
      AGREES THAT IF A PREPAYMENT OF ANY OR ALL OF THIS AGREEMENT IS MADE FOLLOWING
      ANY ACCELERATION OF THE MATURITY DATE BY LENDER ON ACCOUNT OF ANY TRANSFER
      OR
      DISPOSITION PROHIBITED OR RESTRICTED HEREIN OR BY THE MORTGAGE, BORROWER SHALL
      BE OBLIGATED TO PAY CONCURRENTLY THEREWITH THE PREPAYMENT PREMIUM OR YIELD
      MAINTENANCE PREMIUM, IF ANY. BORROWER EXPRESSLY ACKNOWLEDGES AND UNDERSTANDS
      THAT LENDER HAS MADE THE LOAN EVIDENCED HEREBY IN RELIANCE ON THE FOREGOING
      AGREEMENTS AND WAIVERS OF BORROWER, THAT LENDER WOULD NOT HAVE MADE THIS LOAN
      WITHOUT SUCH AGREEMENTS AND WAIVERS OF BORROWER, AND THAT THE MAKING OF THE
      LOAN
      AT THE INTEREST RATE AND FOR THE TERMS SET FORTH HEREIN CONSTITUTES ADEQUATE
      CONSIDERATION, GIVEN WEIGHT BY THE UNDERSIGNED, FOR SUCH AGREEMENTS AND
      WAIVER.

     

    

    

    Section
      10.21 Assignment

     

     

    
      
        
        

      

      
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    .
      The
      Loan, the Note, the Loan Documents and/or Lender’s rights, title, obligations
      and interests therein may be assigned by Lender and any of its successors and
      assigns to any Person at any time in its discretion, in whole or in part,
      whether by operation of law (pursuant to a merger or other successor in
      interest) or otherwise. Upon such assignment, all references to Lender in this
      Agreement and in any Loan Document shall be deemed to refer to such assignee
      or
      successor in interest and such assignee or successor in interest shall
      thereafter stand in the place of Lender. Borrower may not assign its rights,
      title, interests or obligations under this Agreement or under any of the Loan
      Documents except as specifically provided in Sections 5.26.5 and 5.26.6 of
      this
      Agreement. In connection with any assignment, the new Lender shall provide
      notice to Borrower of the identity, address and other pertinent information
      pertaining to the new Lender. 

     

    Section
      10.22 Certain
      Additional Rights of Lender

     

    .
      Notwithstanding
      anything to the contrary which may be contained in this Agreement, Lender shall
      have:

     

    (1) the
      right
      to routinely consult with Borrower’s management regarding the significant
      business activities and business and financial developments of Borrower,
      provided, however, that such consultations shall not include discussions of
      environmental compliance programs or disposal of hazardous substances.
      Consultation meetings should occur on a regular basis (no less frequently than
      quarterly) with Lender having the right to call special meetings at any
      reasonable times;

     

    (2) the
      right, in accordance with the terms of this Agreement, to examine the books
      and
      records of Borrower at any time upon reasonable notice;

     

    (3) the
      right, in accordance with the terms of this Agreement, to receive financial
      reports, including balance sheets, statements of income, shareholder’s equity
      and cash flow, a management report and schedules of outstanding
      indebtedness;

     

    (4) the
      right, without restricting any other rights of Lender under this Agreement
      (including any similar right), to restrict financing to be obtained with respect
      to the Property so long as any portion of the Debt remains
      outstanding;

     

    (5) the
      right, without restricting any other right of Lender under this Agreement or
      the
      other Loan Documents (including any similar right), to restrict, upon the
      occurrence of an Event of Default, Borrower’s payments of management,
      consulting, director or similar fees to Affiliates of Borrower from the
      Rents;

     

    (6) the
      right, without restricting any other rights of Lender under this Agreement
      (including any similar right), to approve any operating budget and/or capital
      budget of Borrower;

     

    (7) the
      right, without restricting any other rights of Lender under this Agreement
      (including any similar right), to approve any acquisition by Borrower of any
      other significant property (other than personal property required for the day
      to
      day operation of the Property); and

     

    (8) the
      right, without restricting any other rights of Lender under this Agreement
      (including any similar right), to restrict the transfer of interests in Borrower
      held by its members, 

     

    
      
        
        

      

      
        96

        
          

        

      

      
        
        

      

    

    

     

    and
      the
      right to restrict the transfer of interests in such member, except for any
      transfer that is a Permitted Transfer.

     

    The
      rights described above may be exercised directly or indirectly by any Person
      that owns substantially all of the ownership interests in Lender. The provisions
      of this Section are intended to satisfy the requirement of management
      rights for purposes of the Department of Labor “plan assets” regulation 29
      C.F.R., Section 2510.3-101.

     

    Section
      10.23 Set-Off

     

    .
      In
      addition to any rights and remedies of Lender provided by this Loan Agreement
      and by law, Lender shall have the right, without prior notice to Borrower,
      any
      such notice being expressly waived by Borrower to the extent permitted by
      applicable law, upon any amount becoming due and payable by Borrower hereunder
      (whether at the stated maturity, by acceleration or otherwise) to set-off and
      appropriate and apply against such amount any and all deposits (general or
      special, time or demand, provisional or final), in any currency, and any other
      credits, indebtedness or claims, in any currency, in each case whether direct
      or
      indirect, absolute or contingent, matured or unmatured, at any time held or
      owing by Lender or any Affiliate thereof to or for the credit or the account
      of
      Borrower. Lender agrees promptly to notify Borrower after any such set-off
      and
      application made by Lender; provided that the failure to give such notice shall
      not affect the validity of such set-off and application.

     

    Section
      10.24 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.

     

    

    

     

    
      
        
        

      

      
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    [Remainder
      of Page Intentionally Left Blank; Signature Page Follows]

     

    
      
        
        

      

      
        98

        
          

        

      

      
        
        

      

    

    

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Loan Agreement to be duly executed by their
      duly
      authorized representatives, all as of the day and year first above
      written.

     

     

    

      
        	
                BORROWER:

              
	 	 	 
	
                MAGUIRE
                  PROPERTIES - PACIFIC CENTER, LLC,
                  

              
	
                
                  a
                    Delaware limited liability company

                

              
	 	 	 
	
                By:

              	
                /s/
                  Mark Lammas

              
	 	
                Name:
                  Mark Lammas

              
	 	
                Its:
                  Vice President and Secretary

              

      

    

    

     

    

    

    

     

    

     

    [SIGNATURES
      CONTINUE ON FOLLOWING PAGE]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    

      

        
          	
                  LENDER:

                
	 	 	 
	
                  GREENWICH
                    CAPITAL FINANCIAL PRODUCTS, INC.,

                
	
                  a
                    Delaware corporation

                
	 	 
	
                  By:

                	
                  /s/
                    Chapin P. Hunt

                
	 	
                  Name:
                    Chapin P. Hunt

                
	 	
                  Title:
                    Managing Director

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