Document:

exhibit4-1.htm

     

    
      Exhibit
4.1

    

    

Instrument

      
Universe Bidco Limited

      and

      
[Security Trustee]

    

     

    
 

     

     

     

    constituting up to £30,000,000 Floating Rate Loan Notes 2015

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    THIS INSTRUMENT is made by way
of deed
on                                                          2010

     

    BY:

     

    UNIVERSE BIDCO LIMITED (No.
7289402) whose registered office is at Washington House, Birchwood Park Avenue,
Birchwood, Warrington WA3 6GR (the "Company"); and

     

    [Security Trustee] (No ●) whose registered
office is at [●] (the "Security
Trustee").

     

    WHEREAS

     

    the
Company has, pursuant to its Memorandum and Articles of Association and by
resolution of its board of directors passed on
[      ] June 2010, created and authorised the
issue of a maximum nominal amount of £30,000,000 floating rate loan notes 2015
to be constituted as hereinafter provided and subject to and with the benefit of
the schedules which shall be deemed to form part of this
instrument.

     

    BY
THIS DEED THE COMPANY DECLARES AND COVENANTS AS FOLLOWS:

     

    
      	
              1.  

            	
              DEFINITIONS
      AND INTERPRETATION

            

    

     

    
      	
              1.1  

            	
              In
      this instrument and the schedules the following words and expressions
      shall have the following meanings, unless the context otherwise
      requires:

            

    

     

     "business day" means a day
(excluding Saturdays and Sundays) on which banks are open in London for the
transaction of normal banking business;

     

     "Conditions" means the
conditions of the Notes as set out in schedule 2 as they may from time to time
be modified in accordance with the provisions contained in this
instrument;

     

     "Directors" means the board of
directors for the time being of the Company;

     

     "Extraordinary Resolution"
means an extraordinary resolution as defined in paragraph 18 of schedule
5;

     

     "Form of Election" means the
form of election completed by each initial beneficial owner of the Notes in
connection with the election to receive the Notes;

     

     "Interest Payment Date" has
the meaning given in Condition 7.1;

     

     "Moody's" means Moody's
Investors Service, Inc.

     

     "North American person"
means:

     

    
      	
              (a)  

            	
              any
      US Person; and

            

    

     

    
      	
              (b)  

            	
              any
      individual, corporation, partnership, trust or other entity resident in
      Canada;

            

    

     

     "Notes" means the
£30,000,000 floating rate loan notes 2015 originally constituted by this
instrument or, as the case may be, the principal amounts represented by them and
for the time being issued and outstanding and reference to a "Note" is a reference to any
one of the issued Notes;

     

     "Noteholder" means a person
whose name is entered in the Register as the holder of a Note;

     

     "par" means the nominal amount
of the Notes;

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     "Parent" has the meaning given
in clause 6.1;

     

     "Rating Agency" means S&P
or any of its Subsidiaries and its or their successors or Moody's or any of its
Subsidiaries and its or their successors or any internationally recognised
rating agency substituted for either of them by the Parent from time to time
with the prior approval of the Noteholders;

     

     "Rating Downgrade" shall be deemed to have
occurred if:

     

    
      	
              (i)  

            	
              in
      the case where the Parent is assigned a rating by two Rating Agencies,
      each of the ratings assigned to the Parent by the Rating Agencies is
      withdrawn or downgraded to BB-/Ba3 (or their respective equivalents for
      the time being, or worse) and it not reinstated or upgraded to BB+/Ba2 (or
      their respective equivalents for the time being, or better) within 60 days
      of such withdrawal or downgrade; or

            

    

     

    
      	
              (ii)  

            	
              in
      the case where the Parent is only assigned a rating by one Rating Agency,
      the current rating assigned to the Parent by that Rating Agency is
      withdrawn or downgraded to BB-/Ba3 (or its respective equivalent for
      the time being, or worse) and it not reinstated or upgraded to BB+/Ba2 (or
      its respective equivalent for the time being, or better) within 60 days of
      such withdrawal or downgrade;

            

    

     

     "Register" means the register
of Noteholders referred to in clause 6;

     

     "Registrars" means,
together, Equiniti Limited and Equiniti Financial Services Limited, each of
whose registered office is Aspect House, Spencer Road, Lancing Business Park,
Lancing, West Sussex BN99 6DA or such other registrars as the Company may
appoint;

     

     "S&P" means Standard & Poor's
Financial Services LLC, a subsidiary of the McGraw Hill Companies,
Inc;

     

     "TTE Instruction" means a
transfer to escrow instruction given by a holder of uncertificated scheme shares
through CREST;

     

     "United States" means the
United States of America, its territories and possessions, any state of the
United States and the District of Columbia; and

     

     "US Person" means a US person
as defined in Regulation S under the United States Securities  Act of
1933, as amended

     

    
      	
              1.2  

            	
              Subject
      as herein expressly defined any words and expressions defined in the
      Companies Act 2006 shall have the meanings therein ascribed to
      them.

            

    

     

    
      	
              1.3  

            	
              References
      to any provision of any statute shall be deemed also to refer to any
      statutory provision modification or re-enactment thereof from time to time
      in force.

            

    

     

    
      	
              1.4  

            	
              Words
      denoting persons shall include corporations, the masculine gender shall
      include the feminine and the singular shall include the plural and vice
      versa.

            

    

     

    
      	
              1.5  

            	
              References
      to this "instrument" or this
      "deed" include,
      where the context so admits, the schedules
  hereto.

            

    

     

    
      	
              1.6  

            	
              The
      headings are for convenience only and shall not affect the interpretation
      hereof.

            

    

     

    
      	
              1.7  

            	
              "Pounds" and "£" denote the lawful
      currency of the United Kingdom.

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              2.  

            	
              AMOUNT
      AND FORM OF THE NOTES

            

    

     

    
      	
              2.1  

            	
              The
      aggregate nominal amount of the Notes constituted by this instrument is
      limited to £30,000,000.

            

    

     

    
      	
              2.2  

            	
              The
      Notes will initially be represented by a temporary global Note certificate
      (the "Temporary Global
      Certificate") registered in the name of the Registrar, acting in
      its capacity as Note agent for the beneficial owners of the interests
      therein (and such beneficial ownership and interests shall be recorded in
      a register maintained by the Registrar as Note agent for such purpose).
      The Registrar shall hold the Temporary Global Certificate for a period of
      forty days from the date of issue (the "Forty Day Period"),
      during which time neither the Temporary Global Certificate nor beneficial
      interests therein shall be transferable under any circumstances
      whatsoever. Any purported transfer of the Temporary Global Certificate or
      any beneficial interest therein during the Forty Day Period shall be null
      and void ab
      initio. Upon expiry of the Forty Day Period and receipt by the
      Registrar from each beneficial owner of an interest in the Notes of
      certification of beneficial ownership of the Notes by non-US Persons
      (which certification may be contained in a Form of Election or a TTE
      Instruction), the Temporary Global Certificate will be exchanged in whole
      but not in part for Notes represented by a definitive Note certificate
      (the "Definitive
      Certificate").  As soon as is reasonably practicable
      thereafter, the Registrar, acting in its capacity as Note agent, shall
      deliver one or more Definitive Certificates to the Noteholders in
      registered form in denominations of £1 in nominal amount or integral
      multiples thereof. Upon expiry of the Forty Day Period the Notes shall be
      transferable in accordance with schedule 2 and clause 4.7 of schedule
      3.

            

    

     

    
      	
              3.  

            	
              STATUS
      OF THE NOTES

            

    

     

    
      	
              3.1  

            	
              The
      Notes represent a direct obligation of the Company for the due and
      punctual payment of the principal and interest in respect of them and for
      the performance of all the obligations of the Company with respect to
      them.

            

    

     

    
      	
              3.2  

            	
              The
      Notes when issued will rank pari passu equally and rateably without
      discrimination or preference as unsecured obligations of the Company and
      with all other unsecured indebtedness of the Company except to the extent
      provided by law.

            

    

     

    
      	
              3.3  

            	
              The
      Notes shall be known as Floating Rate Loan Notes
  2015.

            

    

     

    
      	
              4.  

            	
              CERTIFICATE
      FOR NOTES

            

    

     

    
      	
              4.1  

            	
              Upon
      expiry of the Forty Day Period and receipt by the Registrar from each
      beneficial owner of an interest in the Notes of certification of
      beneficial ownership of the Notes by non-US Persons (which certification
      may be contained in a Form of Election or a TTE instruction), each
      Noteholder shall be entitled to one certificate without charge for the
      total nominal amount of Notes registered in his name.  Each
      certificate shall bear a denoting number, shall (subject as provided in
      this clause 4.1) be executed as a deed by the Company in accordance with
      its articles of association for the time being or in such other manner as
      may be permitted by statute, shall be substantially in the form set out in
      schedule 1 and shall have endorsed on it conditions in the form or
      substantially in the form set out in schedule 2.  The Company
      shall not be bound to register more than four persons as the joint holders
      of any Note.  Joint holders of Notes will be entitled to only
      one Note in respect of their joint holding and the Note will be delivered
      to that one of the joint holders who is first-named in the Register in
      respect of the joint holding or to such other person as the joint holders
      may, in writing, direct. Delivery of a certificate to one of such persons
      shall be sufficient delivery to all.  When a Noteholder has
      redeemed or transferred part only of his Notes the old certificate shall
      be cancelled and a new certificate for the balance of such Notes issued
      without charge.

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              4.2  

            	
              The
      Directors may by resolution (either generally or in any particular case or
      cases) determine that the signatures required by clause 4.1 shall be
      affixed by means of some method or system of mechanical
      signature.

            

    

     

    
      	
              5.  

            	
              COVENANTS
      BY THE COMPANY

            

    

     

    The
Company hereby covenants with the Noteholders and each of them to comply with
the terms of the Notes and to observe and perform the Conditions, which
conditions shall be deemed to be incorporated in this instrument and shall be
binding on the Company and the Noteholders and all persons claiming through or
under them respectively.

     

    
      	
              6.  

            	
              PARENT
      COMPANY GUARANTEE & DESIGNATED DEPOSIT
  ACCOUNT

            

    

     

    
      	
              6.1  

            	
              The
      obligations of the Company in relation to payment of the principal and
      interest under this instrument in respect of the Notes (the principal
      amount of the Notes outstanding from time to time and the interest from
      time to time thereon being together, in aggregate, the "Aggregate Outstanding
      Amount"), will at all times at the option of the Company be one of
      the following:

            

    

     

    
      	
              (a)  

            	
              guaranteed
      by the Company's ultimate holding company, Universe Corporation (the "Parent"), by executing
      a parent company guarantee substantially in the form attached as schedule
      4 hereto (the "Parent
      Guarantee"); or

            

    

     

    
      	
              (b)  

            	
              cash
      collateralised by the deposit of an amount equal to the Aggregate
      Outstanding Amount into a blocked account in the name of the Company (a
      "Designated Deposit
      Account") and, subject to clause 6.4 below, the Company undertakes,
      until such time that the Company has no further obligation under this
      instrument to pay the Loan Note Holders, only to use the proceeds of the
      Designated Deposit Account to pay the Aggregate Outstanding Amount, in
      accordance with the terms of this instrument,
  and/or

            

    

     

    
      	
              (c)  

            	
              guaranteed
      by the Parent pursuant to the terms of a Parent Guarantee and cash
      collateralised by the Company by virtue of a deposit in the Designated
      Deposit Account in such respective amounts as the Parent and the Company
      shall agree provided that the aggregate amount guaranteed by the Parent
      under the Parent Guarantee and the amount standing to the credit of the
      Designated Deposit Account shall at all times in aggregate be equal to or
      exceed the Aggregate Outstanding
Amount.

            

    

     

    
      	
              6.2  

            	
              At
      any time when there is a Parent Guarantee in issue and a Rating Downgrade
      occurs, the Outstanding Aggregate Amount will thereafter be cash
      collateralised by the deposit of an amount equal to the Aggregate
      Outstanding Amount into a Designated Deposit Account and the Company
      undertakes, until such time that the Company has no further obligation
      under this instrument to pay the Loan Note Holders, only to use the
      proceeds of the Designated Deposit Account to pay the Aggregate
      Outstanding Amount, in accordance with the terms of this
      instrument.

            

    

     

    
      	
              6.3  

            	
              At
      the option of the Company, if at any time when there is a Parent Guarantee
      in issue and the requisite funds are deposited into the Designated Deposit
      Account in accordance with clauses 6.1(b) or 6.2, then the Parent shall be
      entitled to cancel the Parent Guarantee in an amount equal to such deposit
      and the Parent shall have no further liability under the Parent Guarantee
      to that extent.

            

    

     

    
      	
              7.  

            	
              SECURITY
      TRUSTEE

            

    

     

    
      	
              7.1  

            	
              The
      Company hereby appoints the Security Trustee to act in accordance with the
      terms of Schedule 6 and by executing this Instrument the Security Trustee
      consents to such appointment.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              8.  

            	
              REGISTER
      OF NOTEHOLDERS

            

    

     

    
      	
              8.1  

            	
              The
      Company shall cause a register to be maintained in respect of the Notes in
      accordance with the provisions of schedule
3.

            

    

     

    
      	
              8.2  

            	
              The
      provisions relating to the Register set out in schedule 3 shall be deemed
      to be incorporated in this instrument and shall be binding on the Company
      and the Noteholders and on all persons claiming through or under them
      respectively.

            

    

     

    
      	
              9.  

            	
              MEETINGS
      OF NOTEHOLDERS

            

    

     

    The
provisions for meetings of holders of the Notes set out in schedule 5 shall be
deemed to be incorporated in this instrument and shall be binding on the Company
and the Noteholders and on all persons claiming through or under them
respectively.

     

    
      	
              10.  

            	
              FOREIGN
      NOTEHOLDERS

            

    

     

    The Notes
have not been and will not be registered under the United States Securities Act
of 1933, as amended, nor under any of the relevant securities laws of any
province or territory of Japan, Canada or Australia.  Accordingly,
unless an exemption under such Act or laws is applicable, the Notes may not be
offered, sold or delivered, directly or indirectly, in or into the United
States, Japan, Canada or Australia or to or for the account or benefit of any
North American person or resident of Japan, Canada or Australia.

     

    
      	
              11.  

            	
              FURTHER
      NOTES

            

    

     

    The
Company shall be entitled from time to time, by resolution of the board or of a
duly authorised committee thereof, to cancel any created but unissued Notes or
to create and issue further unsecured loan notes to be constituted by deed or
instrument expressed to be supplemental hereto either so as to be identical in
all respects and form a single series with the Notes or to carry such rights as
to interest, redemption and otherwise as the board may think fit.

     

    
      	
              12.  

            	
              GOVERNING
      LAW

            

    

     

    
      	
              12.1  

            	
              These
      presents (and any dispute, controversy, proceedings or claim of whatever
      nature arising out of or in any way relating to this instrument or the
      constitution of the Notes) shall be governed by and construed in
      accordance with English law.

            

    

     

    
      	
              12.2  

            	
              The
      Company to these presents irrevocably agrees that the courts of England
      shall have exclusive jurisdiction to hear and decide any suit, action or
      proceedings, and/or to settle any disputes, which may arise out of or in
      connection with them and, for these purposes, each party irrevocably
      submits to the jurisdiction of the courts of
  England.

            

    

     

    
      	
              13.  

            	
              CONTRACTS
      (RIGHTS OF THIRD PARTIES) ACT 1999

            

    

     

    
      	
              13.1  

            	
              Each
      Noteholder shall have the right under the Contracts (Rights of Third
      Parties) Act 1999 to enforce its rights against the Company under the
      terms of this instrument (subject to clause
  12.2).

            

    

     

    
      	
              13.2  

            	
              Save
      as provided in clause 12.1, no person other than the parties to this
      instrument shall be entitled to enforce its rights under this instrument
      under the Contracts (Rights of Third Parties) Act
  1999.

            

    

     

    IN WITNESS whereof this
instrument has been executed as a deed and has been delivered on the date first
above written.

     

    

     

    

    
      
        
          
            
              	 
      	 
      	 
      
	
                       

                    

            

            

          

           

        

        
          5

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
1

     

    Form
of Note

     

    

     

    
      	
              Certificate
      No.

            	
              Transfer
      No.

            	
              Date

            	
              Nominal
      Amount

            
	 
      	 
      	 
      	
               

              £.....................

            

    

    

     

    LIMITED

     

    ________________________________________________________

     

    (Registered
in England No. ●)

     

    FLOATING
RATE (AT 0.25 PER CENT. BELOW SIX MONTH LIBOR PER ANNUM) LOAN NOTES
2015

     

    Issue of
£30,000,000 Floating Rate (at 0.25 per cent. below six month LIBOR per annum)
Loan Notes 2015 (the "Notes"), created and issued
by UNIVERSE BIDCO LIMITED (the "Company") pursuant to the
Memorandum and Articles of Association of the Company and a resolution of the
board of directors passed on ● 2010.

     

    THIS IS
TO CERTIFY
that                                            of

     

    is/are
the registered holder(s) of £● nominal of the Notes which are constituted by an
instrument made by the Company on ● 2010 (the "instrument") and are issued
with the benefit of and subject to the provisions contained in the instrument
and the conditions endorsed hereon.

     

    Interest
calculated in accordance with the conditions endorsed hereon is payable half
yearly in arrears on 10 March and 10 September in each year.

     

    Executed
as a deed by the Company

     

    acting
by

     

    ...........................................

     

    Director

     

    ............................................

     

    Director/Secretary

     

    

     

    
      	
               
      

            	
              Notes:

            	
              (i)

            	
              Where
      the context so admits, words and expressions defined in the instrument
      shall bear the same respective meanings in the conditions endorsed
      hereon.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              The
      Notes are transferable in accordance with and subject to the provisions of
      the instrument in amounts or multiples of £1.  No transfer,
      whether of the whole or any part of the Notes comprised in this
      certificate, will be accepted for registration unless accompanied by this
      certificate and lodged with the
Registrars.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              This
      Note has not been and will not be registered under the United States
      Securities Act of 1933, as amended, nor under any of the relevant
      securities laws of any province or territory of Japan, Canada or
      Australia.  Accordingly, unless an exemption under such Act or
      laws is applicable, this Note may not be offered, sold, delivered or
      otherwise transferred, directly or indirectly in or into the United
      States, Japan, Canada or Australia or to or for the account or benefit of
      any North American person or resident of Japan, Australia or
      Canada.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (iv)

            	
              The
      Notes are repayable in accordance with the conditions endorsed
      hereon.

            

    

     

    
      	
               
      

            	
              (v)

            	
              A
      copy of the instrument is available for inspection at the Company's
      registered office at all reasonable times during office
    hours.

            

    

    
 

    

    
      
        
          
            
              	 
      	 
      	 
      
	
                       

                    

            

            

          

           

        

        
          7

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
2

     

    Conditions

     

    
      	
              1.  

            	
              FORM
      AND STATUS

            

    

     

    The Notes
constitute obligations of the Company and are issued in amounts or integral
multiples of £1. The instrument pursuant to which the Notes are issued does not
contain any restrictions on borrowing, charging or disposal of assets by the
Company or any of its subsidiaries.

     

    
      	
              2.  

            	
              REPAYMENT,
      PREPAYMENT, PURCHASE AND REDEMPTION

            

    

     

    
      	
              2.1  

            	
              If
      not previously repaid or purchased, the Notes will be repaid by the
      Company at par on the first Interest Payment Date falling five years after
      the date of issue of the Notes together with accrued interest up to and
      including that date.

            

    

     

    
      	
              2.2  

            	
              Each
      Noteholder shall be entitled to require the whole or any part (being £1 in
      nominal amount or an integral multiple thereof) of the Notes held by him
      to be repaid at par, together with accrued interest in accordance with
      condition 2.7 on any Interest Payment Date falling at least six months
      from the date of issue of the
Notes.

            

    

     

    
      	
              2.3  

            	
              Such
      right shall be exercisable by the Noteholder concerned completing and
      signing the Notice of Repayment printed on the Note to be repaid (or by
      completing such other form as the Directors may approve) and lodging it at
      the offices of the Registrars on behalf of the Company not less than 30
      days before the relevant Interest Payment Date accompanied by such
      evidence (if any) as the Directors may reasonably require to prove the
      title of the person requiring repayment.  A Notice of Repayment
      given to the Company in accordance with this condition shall be
      irrevocable.  No such notice may be given in respect of any
      Notes in respect of which notice of redemption has previously been given
      by the Company.

            

    

     

    
      	
              2.4  

            	
              Against
      such delivery, the Company shall on the relevant Interest Payment Date pay
      to the Noteholder concerned the principal amount of his Note together with
      accrued interest in accordance with condition
  2.7.

            

    

     

    
      	
              2.5  

            	
              The
      Company may at any time after six months following the date of the issue
      of the Notes pursuant to this instrument purchase any Notes by tender
      (available to all holders alike) or by private treaty at any price
      (provided that under the terms of the tender offer no Noteholders shall be
      required to sell any of their Notes to the
  Company).

            

    

     

    
      	
              2.6  

            	
              The
      Company shall be entitled to redeem all (but not some only) of the
      outstanding Notes at par together with accrued interest in accordance with
      condition 2.7 on not less than 30 days' prior written notice if, at any
      time the aggregate amount of all the Notes outstanding is less than
      £1,500,000, provided that all of the Notes so redeemed have been in issue
      for more than six months.

            

    

     

    
      	
              2.7  

            	
              On
      making any payment of principal to a Noteholder under this condition the
      Company shall pay to him the interest accrued thereon up to (but
      excluding) the date of repayment but subject to any deduction or
      withholding required by law.

            

    

     

    
      	
              3.  

            	
              EVENTS
      OF DEFAULT

            

    

     

    
      	
              3.1  

            	
              Notwithstanding
      any other provisions of this instrument, each Noteholder shall be entitled
      to require all or any part (being £1 in nominal amount or any integral
      multiple thereof) of the Notes held by him to be repaid at par together
      with accrued interest (after deduction of tax) on or at any time after the
      occurrence of the following events of
default:

            

    

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              (a)  

            	
              the
      Company fails to pay within 30 days of the due date any principal or
      interest payable in respect of the Notes;
or

            

    

     

    
      	
              (b)  

            	
              an
      order is made by a court of competent jurisdiction for the winding up or
      dissolution of the Company or an effective resolution is passed for the
      winding-up of the Company (otherwise than in each case for the purposes of
      an solvent amalgamation or reconstruction or a members' voluntary winding
      up on terms previously approved by Extraordinary Resolution);
      or

            

    

     

    
      	
              (c)  

            	
              an
      encumbrancer takes possession or a trustee, receiver or an administrator
      or administrative receiver or similar officer is appointed of all or
      substantially all of the undertaking of the Company and such person has
      not been paid out or discharged within 30 days;
  or

            

    

     

    
      	
              (d)  

            	
              it
      is or becomes, in the sole opinion of the Company, unlawful for the
      Company or the Parent to perform any of its obligations under the
      instrument.

            

    

     

    
      	
              3.2  

            	
              Such
      right shall be exercisable by the Noteholder concerned in the manner
      described in condition 2.3 and thereupon such Notes shall immediately
      become repayable.

            

    

     

    
      	
              3.3  

            	
              At
      any time after the Notes have become repayable under the provisions of
      this condition, any Noteholder may without notice institute such
      proceedings as he may think fit to enforce repayment of the
      Notes.

            

    

     

    
      	
              3.4  

            	
              The
      Company shall notify the Noteholders forthwith of the happening of any of
      the events specified in condition
3.1.

            

    

     

    
      	
              4.  

            	
              METHOD
      OF PAYMENT

            

    

     

    
      	
              4.1  

            	
              Payment
      of the principal monies and interest payable on the Notes, or any part
      thereof, may be made by cheque, warrant or money order sent through the
      post at the risk of the Noteholder to the registered address of the
      Noteholder or, in the case of joint Noteholders, to the registered address
      of that one of them who is first named on the Register (or to such person
      and to such address as the Noteholder or joint Noteholders may in writing
      direct) or by a bank or other funds transfer system.  Every such
      cheque, warrant or money order shall be made payable to the order of the
      person to whom it is sent (or to such person as the Noteholder or joint
      Noteholders may in writing direct) and payment of the cheque, warrant or
      money order shall be a satisfaction of the principal and interest
      represented thereby.  If payment is made by a bank or other
      funds transfer, the Company shall not be responsible for amounts lost or
      delayed in the course of the
transfer.

            

    

     

    
      	
              4.2  

            	
              Except
      as provided in this instrument or as requested by the relevant Noteholder,
      all payments made or to be made by the Company under this instrument shall
      be made in full without set-off or counterclaim and not subject to any
      condition and free and clear of and without deduction or withholding for
      or on account of any taxes or any other
purpose.

            

    

     

    
      	
              5.  

            	
              SURRENDER
      OF CERTIFICATE AND PRESCRIPTION

            

    

     

    
      	
              5.1  

            	
              Every
      Noteholder any part of whose Notes are due to be repaid under any of the
      provisions of these conditions shall, not later than the due date for such
      repayment, deliver the relevant certificates for such Notes to the
      Registrars on behalf of the Company or as it shall
      direct.  Unless payment of the amount due to be repaid has
      already been made in accordance with condition 4, upon such delivery and
      against a receipt for the principal moneys payable in respect of the Notes
      to be repaid, the Company shall pay to the Noteholder the amount payable
      to him in respect of such repayment in accordance with condition 4. If
      part only of any Note(s) as evidenced by the relevant certificate so
      delivered is then due to be repaid, the Company shall either endorse such
      Note with a memorandum of the date and amount paid to the holder of such
      Note and return it to the Noteholder or shall cancel such Note and without
      charge issue to such Noteholder a new Note for the balance of the
      principal amount due to him.

            

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              5.2  

            	
              If
      any Noteholder, any part of whose Notes is liable to be repaid under these
      conditions, shall fail or refuse to deliver up the forms required under
      condition 2.3 and/or the certificate(s) for such Notes at the time and
      place fixed for repayment thereof or should fail or refuse to accept
      payment of the repayment monies payable in respect thereof, the monies
      payable to such Noteholder shall be set aside by the Company and paid into
      a separate interest bearing bank account and held by the Company in trust
      for such Noteholder and such setting aside shall be deemed for all the
      purposes of these conditions to be a payment to such Noteholder and the
      Company shall thereby be discharged from all obligations in connection
      with such Notes.  If the Company shall place the said monies on
      deposit at a bank, the Company shall not be responsible for the safe
      custody of such monies or for interest thereon. The company may deduct
      from such interest as the said monies may earn whilst on deposit any
      expenses reasonably incurred by the Company in connection
      therewith.  Any amount so paid or deposited, together with
      accrued interest, will as soon as is reasonably practicable be paid to the
      Noteholder or his successors upon delivery of the relevant documents
      referred to above at any time after a period of 6 years from the making of
      the deposit. Any such amount so paid or deposited which remains unclaimed
      after a period of 6 years from the making of the payment or deposit,
      together with any accrued interest, shall revert to the Company
      notwithstanding that in the intervening period the obligation to pay the
      same may have been provided for in the books, accounts and other records
      of the Company.

            

    

     

    
      	
              6.  

            	
              CANCELLATION

            

    

     

    All Notes
purchased or repaid by the Company shall be cancelled and shall not be available
for reissue.

     

    
      	
              7.  

            	
              INTEREST

            

    

     

    
      	
              7.1  

            	
              Until
      such time as the Notes are repaid or purchased in accordance with these
      conditions, the Company will pay interest on the principal amount of each
      Note (subject to any requirement to deduct tax) twice yearly in arrears on
      10 March and 10 September in each year (each, an "Interest Payment Date")
      in respect of the Interest Period (as defined below) ending on the day
      immediately preceding those dates, in each case only to persons who are
      registered as Noteholders at the close of business on the relevant record
      date, except that the first payment of interest in respect of any Note is
      payable on 10 March 2011 and is in respect of the period starting on the
      date of issue of such Note up to (but excluding) 10 March
      2011.  In respect of the Notes such period and each subsequent
      period commencing on an Interest Payment Date and ending on the date
      immediately preceding the next Interest Payment Date is referred to as an
      "Interest
      Period".

            

    

     

    
      	
              7.2  

            	
              The
      "record date"
      shall mean the close of business on the thirtieth day before the relevant
      Interest Payment Date or, if such day is not a business day, then the next
      following business day and every Noteholder shall be deemed for the
      purposes of these presents to be the holder on such Interest Payment Date
      of the Notes held by him on such preceding date, notwithstanding any
      intermediate transfer or transmission of any such
  Notes.

            

    

     

    
      	
              7.3  

            	
              If
      any Interest Payment Date should fall on a day which is not a business
      day, then for the purpose of the payment of interest and any other
      payments due to the Noteholder pursuant to condition 2, the Interest
      Payment Date shall be deemed to be the next business day immediately
      following such an Interest Payment Date.  This provision shall
      not affect any Interest Period nor shall it affect the amount of interest
      (or any other monies) to be paid on any Interest Payment
    Date.

            

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              7.4  

            	
              The
      rate of interest on the Notes for each Interest Period (the "Rate of Interest") will
      be determined on the basis of the following
  provisions:

            

    

     

    
      	
              (a)  

            	
              on
      the date of the first issue of the Notes (or, if not a business day, the
      first business day thereafter) and on the first business day of each
      subsequent Interest Period for such Note(s) ("Interest Determination
      Date"), the rate of interest on the Notes for each Interest Period
      will be the rate per annum calculated by the Company to be 0.25 per cent.
      below Six Month LIBOR.  "Six Month LIBOR" is
      defined as the rate per annum for the six months corresponding to the
      relevant Interest Period quoted at or about 11.00 a.m. (London time) on
      the applicable Interest Determination Date that appears on that page of
      the Telerate Screen which displays British Bankers Association Interest
      Settlement Rates for deposits of such amount as the Company shall
      determine having regard to the aggregate principal amount of the Notes
      then in issue in pounds for such period (such page currently designated as
      page 3750) or if such page or such service is discontinued, such other
      page as may replace page 3750 on that service or such other source as may
      be nominated by the British Bankers Association for the purpose of
      displaying British Bankers Association Interest Settlement Rates for
      deposits in pounds sterling; and

            

    

     

    
      	
              (b)  

            	
              if
      on any Interest Determination Date, the rate of interest cannot be
      established in accordance with paragraph 7.4 (a) above, the Rate of
      Interest for the relevant Interest Period shall be calculated by reference
      to such rate as the Company shall determine on the basis of quotations
      made for six month deposits of a similar size and currency in any such
      other inter-bank market or markets as the Company may select and, if a
      rate of interest cannot be established in accordance with the foregoing
      provisions for any succeeding Interest Period, then the rate of interest
      on the Notes for such Interest Period shall be the same as that applicable
      to the Notes during the previous Interest
  Period.

            

    

     

    
      	
              7.5  

            	
              The
      amount of interest payable on a Note shall be calculated by applying the
      Rate of Interest to the principal amount of the Note and multiplying such
      sum by the actual number of days in the Interest Period concerned divided
      by 365 or, in the case of an Interest Payment Date falling in a leap year,
      366 and by rounding up the resultant figure to the nearest penny. The
      determination by the Company of the Rate of Interest and the Company's
      calculation of each interest amount shall, in the absence of manifest
      error, be final and binding.

            

    

     

    
      	
              7.6  

            	
              Interest
      on such Notes becoming liable to repayment shall cease to accrue as from
      the due date for repayment of such Notes unless (and subject to compliance
      with the condition 5) payment of the monies is not made by the Company in
      which case interest shall continue to accrue until, but not excluding, the
      date of actual payment.

            

    

     

    
      	
              7.7  

            	
              Any
      interest which remains unclaimed after the period of six years from the
      date of first payment shall revert to the Company notwithstanding that in
      the intervening period the obligation to pay the same may have been
      provided for in the books, accounts and the other records of the
      Company.

            

    

     

    
      	
              8.  

            	
              REDEMPTION
      IN DOLLARS

            

    

     

    A
Noteholder may, by notice in writing to the Company given at the same time as
any Notice of Repayment given pursuant to condition 2.3 elect that the principal
amount of the Note(s) the subject of that Notice of Repayment shall be redeemed
in US dollars in which event the Company shall on the relevant Interest Payment
Date (the "Redemption
Date") and in full discharge of its obligations to repay such Note(s) pay
to the Noteholder an amount in US dollars obtained by converting the principal
amount outstanding of such Note(s) in US dollars (at Barclays Bank plc's spot
rate for the purchase of US dollars with sterling certified by Barclays Bank plc
as prevailing in London interbank foreign exchange market (or such replacement
service from time to time) at or about 11.00 a.m. on the date on which the
Notice of Repayment is deemed received by the Company (or where that date is not
a business day on the immediately preceding business day)) PROVIDED
THAT:

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
              (a)  

            	
              if
      the amount payable in US dollars hereunder would otherwise exceed an
      amount in US dollars obtained by converting 100.2 per cent. of the
      sterling principal amount outstanding of such Note(s) into US dollars at
      the spot rate for the purchase of US dollars with sterling certified by
      Barclays Bank plc as prevailing at or about 11.00 a.m. on the Redemption
      Date the latter amount shall be substituted therefor;
  and

            

    

     

    
      	
              (b)  

            	
              if
      the amount payable in US dollars hereunder would otherwise be less than
      the amount in US dollars obtained by converting 99.6 per cent. of the
      sterling principal amount outstanding of such Note(s) into US dollars at
      the spot rate for the purchase of US dollars with sterling certified by
      Barclays  Bank plc as prevailing at or about 11.00 a.m. on the
      Redemption Date the latter amounts shall be substituted
      therefor.

            

    

     

    
      	
              9.  

            	
              MODIFICATION

            

    

     

    
      	
              9.1  

            	
              The
      provisions of the instrument and the rights of the Noteholders may from
      time to time be modified, abrogated or compromised in any respect by the
      Company with the written consent of the holders of not less than 75 per
      cent. in nominal amount of the Notes then in issue or the sanction of an
      Extraordinary Resolution of the Noteholders as provided in the
      instrument.

            

    

     

    
      	
              9.2  

            	
              The
      Company may amend the provisions of the instrument without such sanction
      or consent if, in the opinion of the financial adviser to the Company,
      such amendment would not be prejudicial to the interest of Noteholders or
      is of a formal, minor or technical nature or corrects a manifest
      error.  Any opinion of the financial adviser in this regard
      shall be arrived at in its absolute discretion and no liability shall
      attach to it in respect thereof.

            

    

     

    
      	
              10.  

            	
              REGISTRATION,
      TRANSFER AND MARKETABILITY

            

    

     

    
      	
              10.1  

            	
              The
      Notes are transferable, subject to and in accordance with the provisions
      of the instrument, in amounts of £1 or integral multiples
      thereof.

            

    

     

    
      	
              10.2  

            	
              No
      application has been or is intended to be made to any listing authority or
      to any stock exchange for any of the Notes to be listed or otherwise
      traded.

            

    

     

    
      	
              11.  

            	
              LOST
      OR DESTROYED NOTES

            

    

     

    If a Note
is worn-out, defaced, lost or destroyed it may be renewed on payment of such
out-of-pocket expenses of the Company as is reasonable and on such terms (if
any) as to evidence and indemnity as the board may reasonably require but so
that in the case of defacement or wearing out the defaced or worn-out Note shall
be surrendered before a new Note is issued.  An entry as to the issue
of a new Note and indemnity (if any) shall be made in the Register.

     

    
      	
              12.  

            	
              NOTICE
      TO NOTEHOLDERS

            

    

     

    
      	
              12.1  

            	
              Any
      notice or other document (including certificates for Notes) may be served
      on a Noteholder by sending the same by post in a prepaid letter addressed
      to such Noteholder at his registered address, in the United Kingdom or (if
      he has no registered address within the United Kingdom) to the address, if
      any, within the United Kingdom supplied by him to the Company as his
      address for the service of notices.

            

    

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	
              12.2  

            	
              In
      the case of joint Noteholders a notice or document served on the
      Noteholder whose name stands first in the Register shall be sufficient
      notice to all the joint
Noteholders.

            

    

     

    
      	
              12.3  

            	
              Any
      notice or other document may be served on the person entitled to a Note in
      consequence of the death or bankruptcy of any Noteholder by sending the
      same by post, in a prepaid letter addressed to him by name or by the title
      of the representative or trustees of such Noteholder, at the address (if
      any) in the United Kingdom supplied for the purpose by such persons or
      (until such address is supplied) by giving notice in the manner in which
      it would have been given if the death or bankruptcy had not
      occurred.

            

    

     

    
      	
              13.  

            	
              NOTICES
      TO THE COMPANY

            

    

     

    Any
notice, demand or other document (including certificates for Notes and transfers
of Notes) may be served on the Registrar (acting on behalf of Company) by
sending the same by post in a prepaid letter to the Registrar at Aspect House,
Spencer Road, Lancing Business Park, Lancing, West Sussex BN99 6DA or to such
other address as the Company may from time to time notify
Noteholders.

     

    
      	
              14.  

            	
              SERVICE
      OF NOTICES

            

    

     

    Any
notice or other document addressed to a Noteholder at his registered address or
address for service in the United Kingdom is deemed to be given, if sent by
pre-paid first class post, within 24 hours or, if sent by pre-paid second class
post, within 48 hours, after the time when it was posted.  In proving
such service or receipt it shall be sufficient to prove that the envelope
containing the notice or document was properly addressed, stamped and posted. A
notice or document not sent by post but left at a Noteholder's registered
address (or at another address notified for the purpose) is deemed to have been
given on the day it was left.

     

    
      	
              15.  

            	
              INSPECTION
      OF THE INSTRUMENT

            

    

     

    A copy of
the instrument shall be kept at the registered office of the
Company.  A Noteholder and any person authorised by a Noteholder may
at all reasonable times during office hours inspect such copy.

     

     
 

     

    

    
      
        
          
            
              	 
      	 
      	 
      
	
                       

                    

            

            

          

           

        

        
          13

          
            

          

        

        
           

        

      

    

    

    NOTICE
OF REPAYMENT

     

    To:                                                                                               LIMITED
(the "Company")

     

    
      	
              1.  

            	
              I/We
      being the registered holder(s) of the notes represented by this
      certificate hereby give notice that i/we require repayment in the manner
      set out in paragraph 2.1/2.2 below  of  all/£● of the
      notes in accordance with the above
conditions.

            

    

     

    
      	
              2.  

            	
              I/We
      authorise and request you:

            

    

     

    
      	
              (a)  

            	
              to
      make the cheque or warrant payable to the person whose name is set out
      below or, if none is set out, to me/us;
and

            

    

     

    
      	
              (b)  

            	
              to
      send it by post at my/our risk to the person whose name and address is set
      out below or, if none is set out, to the registered address of the sole or
      first-named holder; or

            

    

     

    
      	
              2.2  

            	
              to
      transfer the repayment monies to:

            

    

     

    
      	
              Bank:

            	 
      
	
              Address:

            	 
      
	
              (outside
      the United States, Japan, Canada or Australia)

            	 
      
	 
      
	
              Branch
      Code:

            	 
      
	
              Account
      name:

            	 
      
	
              Account
      no:

            	 
      

    

    

     

    I/We
acknowledge that payment of the moneys hereby authorised shall be in full and
final satisfaction of the moneys to which I/we become entitled as
aforesaid.

     

    
      	
              3.  

            	
              I/We
      hereby authorise the despatch of a certificate for the balance (if any) of
      the Notes represented by this certificate which is not repaid by post at
      my/our risk to the person whose name and address is set out below or, if
      none is set out, to the sole or first-named holder at his/her registered
      address.

            

    

     

    Dated ●
●

     

    
      	
              Signature(s)
      of Noteholder(s)1

            	 
      
	 
      	 
      
	
              Name2

            	 
      
	 
      
	
              Address:

            	 
      
	
              (outside
      the United States, Japan, Canada or Australia)

            	 
      
	 
      

    

    

     

    

      

    

     

    1 In the case of joint holders
ALL must sign.  A body corporate should execute under its common seal
or under the hand of some officer or attorney duly authorised in that behalf in
which event the Note must be accompanied by the authority under which this
Notice is completed.

    
 

     2
Please insert in BLOCK CAPITALS the name of the person to whom you wish
the cheque, warrant or money order to be made payable (if not to you) and/or the
address of the person to whom you wish the cheque, warrant or money order and
any balance certificate to be sent if it is different from that of the sole or
first-named holder.  If the space is left blank, the cheque, warrant
or money order will be made payable to the sole holder or all of the joint
holders and it and any balance certificate will be sent to the registered
address of the first-named Noteholder.

     

    

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      
        	
                Address:

              	 
      
	
                (outside
      the United States, Japan, Canada or Australia)

              	 
      
	 
      

      

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
3

     

    Provisions
as to the Register

     

    
      	
              1.  

            	
              REGISTER
      OF NOTES

            

    

     

    
      	
              1.1  

            	
              The
      Company shall cause a register to be maintained at the offices of the
      Registrars on behalf of the Company (or at such other place as the Company
      may specify in accordance with the Companies Act 2006) showing the amount
      of the Notes for the time being issued, the date of issue and the amount
      of Notes for the time being outstanding, the names and addresses of the
      Noteholders, the nominal amounts of the Notes held by the Noteholders
      respectively and all transfers or changes of ownership of the
      Notes.

            

    

     

    
      	
              1.2  

            	
              Any
      change of name or address on the part of any holder of Notes shall
      forthwith be notified by the holder to the Company and the Company shall
      alter the Register accordingly.

            

    

     

    
      	
              2.  

            	
              RECOGNITION
      OF NOTEHOLDER AS ABSOLUTE OWNER

            

    

     

    
      	
              2.1  

            	
              Except
      as required by law, the Company will recognise the registered holder of
      any Notes as the absolute owner thereof and shall not (except as ordered
      by a court of competent jurisdiction) be bound to take notice or see to
      the execution of any trust, whether express, implied or constructive, to
      which any Notes may be subject and the Company may accept the receipt of
      the registered holder for the time being of any Notes, or in the case of
      joint registered holders the receipt of any of them, for the principal
      monies payable in respect thereof or for the interest from time to time
      accruing due in respect thereof or for any other moneys payable in respect
      thereof as a good discharge to the Company notwithstanding any notice it
      may have whether express or otherwise of the right, title, interest or
      claim of any other person to or in such Notes, interest or
      moneys.

            

    

     

    
      	
              2.2  

            	
              If
      a warrant in payment of any amounts due to the registered holders of any
      Notes, made payable and despatched in accordance with the conditions, is
      encashed such encashment shall be deemed to be a good discharge to the
      Company notwithstanding any notice it may have whether express or
      otherwise of the right, title, interest or claim of any other person to or
      in such moneys.

            

    

     

    
      	
              2.3  

            	
              No
      notice of any trust, express, implied or constructive, shall (except as by
      statute provided or as required by order of a court of competent
      jurisdiction) be entered in the Register in respect of any
      Notes.

            

    

     

    
      	
              3.  

            	
              EXCLUSION
      OF EQUITIES

            

    

     

    The
Company will recognise every holder of Notes as entitled to his Notes free from
any equity, set-off or cross-claim on the part of the Company against the
original or any intermediate holder of the Notes.

     

    
      	
              4.  

            	
              TRANSFERABILITY
      OF NOTES

            

    

     

    
      	
              4.1  

            	
              Subject
      to paragraph 4.7, a Noteholder will be entitled (subject as hereinafter
      provided) to transfer his entire holding of Notes or any part (in amounts
      or integral multiples of £1) by an instrument in writing in the usual or
      common form or such other form as the Company may accept.  There
      shall not be included in any instrument of transfer any notes other than
      the Notes constituted by the
instrument.

            

    

     

    
      	
              4.2  

            	
              Every
      instrument of transfer must be signed by the transferor or where the
      transferor is a corporation given under its common seal or signed on its
      behalf by a duly authorised officer or agent and the transferor shall
      remain the owner of the Notes to be transferred until the name of the
      transferee is entered in the Register in respect
  thereof.

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	
              4.3  

            	
              Every
      instrument of transfer must be lodged for registration at the place where
      the Register shall for the time being be kept accompanied by the
      certificate for the Notes all or part of the nominal amount of which is to
      be transferred and such other evidence as the Directors or other officers
      of the Company authorised to deal with transfers may require to prove the
      title of the transferor or his right to transfer the Notes and, if the
      instrument of transfer is executed by some other person on his behalf, the
      authority of the person signing the
same.

            

    

     

    
      	
              4.4  

            	
              No
      assignment, transfer, sale or other disposal of any holding of Notes will
      be registered during the 30 days preceding an interest payment date or a
      date by which a payment in respect of interest or principal is required to
      be made by the Company.

            

    

     

    
      	
              4.5  

            	
              No
      transfer shall be registered of any Notes in respect of which a repayment
      notice has been given by a Noteholder in accordance with condition 2.2 or
      a redemption notice has been given by the Company in accordance with
      condition 2.7.

            

    

     

    
      	
              4.6  

            	
              All
      instruments of transfer which shall be registered may be retained by the
      Company.

            

    

     

    
      	
              4.7  

            	
              The
      Notes may not be transferred other
than:

            

    

     

    
      	
              (a)  

            	
              outside
      of the Forty Day Period;

            

    

     

    
      	
              (b)  

            	
              to
      or between any spouse, former spouse, civil partner, child (including any
      stepchild or adopted child) of a Noteholder or lineal descendent of any of
      these;

            

    

     

    
      	
              (c)  

            	
              to
      the trustees of a trust of which the principal beneficiaries (and only
      people capable of being beneficiaries) are the Noteholder who established
      the trust and who is transferring the relevant Notes, and/or the persons
      referred to in paragraph (b) above;

            

    

     

    
      	
              (d)  

            	
              on
      the death or bankruptcy of the Noteholder;
and

            

    

     

    
      	
              (e)  

            	
              with
      the prior written consent of the
Company,

            

    

     

    in each
case subject to and in accordance with the provisions of this instrument and in
amounts of £1 or integral multiples thereof. Any purported transfer of a Note or
a beneficial interest therein not in accordance with this clause 4.7 shall be
null and void ab
initio.

     

    
      	
              5.  

            	
              NO
      FEE FOR REGISTRATION OF TRANSFERS

            

    

     

    No fee
shall be charged for the registration of any transfer or for the registration of
any probate, letters of administration, certificate of marriage or death, power
of attorney or other document relating to or affecting the title to any
Notes.

     

    
      	
              6.  

            	
              DEATH
      OR BANKRUPTCY OF NOTEHOLDERS

            

    

     

    
      	
              6.1  

            	
              The
      executors or administrators of a deceased Noteholder (not being one of
      several joint holders) shall be the only persons recognised by the Company
      as having any title to or interest in such
Note.

            

    

     

    
      	
              6.2  

            	
              In
      the case of the death of any of the joint holders of a Note the survivors
      or survivor will be the only persons or person recognised by the Company
      as having any title to or interest in such
Note.

            

    

     

    
      	
              6.3  

            	
              Any
      person becoming entitled to Notes in consequence of the death or
      bankruptcy of any Noteholder or of any other event giving rise to the
      transmission of such Notes by operation of law may, upon producing such
      evidence that he sustains the character in respect of which he proposes to
      act under this paragraph or of his title as the Directors shall think
      sufficient, be registered himself as the holder of the Note or subject to
      the preceding paragraphs may transfer the
Note.

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	
              7.  

            	
              RECEIPT
      OF JOINT HOLDERS

            

    

     

    If
several persons are entered in the register as joint registered holders of any
Notes then, without prejudice to paragraph 2 above, the receipt of any one of
such persons for any interest or principal or other monies payable in respect of
such Notes shall be as effective a discharge to the Company as if the person
signing such receipt were the sole registered holder of such Notes.

     

    
      	
              8.  

            	
              THE
      REGISTER

            

    

     

    
      	
              8.1  

            	
              A
      Noteholder and any person authorised by him may at all reasonable times
      during office hours inspect the Register and upon payment of a reasonable
      charge take copies of, or extracts from, the Register or any part of
      it.

            

    

     

    
      	
              8.2  

            	
              The
      Register may be closed by the Company for such periods and at such times
      (not exceeding 30 business days in any one year) as it may think fit and
      during such period the Company shall be under no obligation to register
      transfers of the Notes.

            

    

     

    
      	
              9.  

            	
              REPLACEMENT
      OF CERTIFICATES

            

    

     

    If the
certificate for any Notes is lost, worn-out, defaced or destroyed, it may be
renewed, on such terms (if any) as to evidence and indemnity as the Directors
may reasonably require, but so that in the case of defacement or wearing out the
defaced or worn-out certificate shall be surrendered before the new certificate
is issued.

     

    
      	
              10.  

            	
              RISK
      TO NOTEHOLDERS

            

    

     

    All
certificates, other documents and remittances sent through the post shall be
sent at the risk of the Noteholders entitled thereto.

     

    

     

     
 

     

    

    
      
        
          
            
              	 
      	 
      	 
      
	
                       

                    

            

            

          

           

        

        
          18

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
4

     

    Form
of Parent Company Guarantee

     

    THIS GUARANTEE is made
on ● 2010

     

    BY:

     

    
      	
              (1)  

            	
              UNIVERSE CORPORATION a
      Delaware Corporation whose registered office is at 600 Montgomery Street,
      26th Floor, San Francisco, CA 94111 (the "Parent")

            

    

     

    WHEREAS:

     

    
      	
              (A)  

            	
              This
      guarantee is supplemental to the Instrument (as defined
      below).

            

    

     

    THE
PARENT AGREES AS FOLLOWS:

     

    
      	
              1.  

            	
              INTERPRETATION

            

    

     

    
      	
              1.1  

            	
              Unless
      otherwise defined herein, words defined in the Instrument (as defined
      below) shall bear the same meaning when used in this
      guarantee.

            

    

     

    
      	
              1.2  

            	
              In
      this guarantee:

            

    

     

     "Company" means Universe Bidco
Limited (CRN 07289402), a subsidiary of the Parent;

     

     "Company's Obligations" has
the meaning given to it in clause 2.1(a) (Guarantee);

     

     "Instrument" means the loan
note instrument entered into by the Company and dated on or about the date
hereof; and

     

     "Guarantee Obligations" has
the meaning given to it in clause 3 (Continuing Security).

     

    
      	
              2.  

            	
              GUARANTEE

            

    

     

    The
Parent irrevocably and unconditionally:

     

    
      	
              (a)  

            	
              guarantees
      to the Noteholders the punctual performance by the Company of its
      obligations under the Instrument to pay to the Loan Note Holders the
      principal amount of the Notes, together with all interest due and payable
      thereon (the "Company's
      Obligations"); and

            

    

     

    
      	
              (b)  

            	
              undertakes
      that whenever the Company does not pay any amount comprised in the
      Company's Obligations when due, the Parent will immediately on demand pay
      that amount as if it were the principal
obligor.

            

    

     

    
      	
              3.  

            	
              CONTINUING
      SECURITY

            

    

     

    The
obligations of the Parent under clause 2 (Guarantee) (the "Guarantee Obligations") are
a continuing security and will extend to the ultimate balance of the Company's
Obligations regardless of any intermediate payment or discharge in whole or
part;

     

    
      	
              4.  

            	
              NOTEHOLDERS'
      PROTECTIONS

            

    

     

    
      	
              4.1  

            	
              The
      Guarantee Obligations shall not be discharged, diminished or in any way
      affected as a result of any of the following (whether or not known to the
      Parent or the Noteholders):

            

    

     

    
      	
              (a)  

            	
              any
      concession, time, consent or waiver given to, or composition made with,
      the Company or any other person;

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	
              (b)  

            	
              any
      amendment to, renewal, determination, transfer, substitution or
      replacement of the Instrument (however
  fundamental);

            

    

     

    
      	
              (c)  

            	
              any
      purported obligation of the Company or any other person to the Noteholders
      becoming wholly or in part void, invalid, illegal or unenforceable for any
      reason;

            

    

     

    
      	
              (d)  

            	
              any
      incapacity, lack of power, authority or legal personality or any change in
      the constitution of, or any amalgamation or reconstruction of, the
      Company, the Noteholders or any other person;
or

            

    

     

    
      	
              (e)  

            	
              any
      insolvency or similar proceedings.

            

    

     

    
      	
              4.2  

            	
              The
      Parent waives any right it may have of first requiring the Noteholders to
      proceed against or enforce any rights or security or claim payment from
      any person before claiming from it under this
  guarantee.

            

    

     

    
      	
              5.  

            	
              NO
      COMPETITION

            

    

     

    
      	
              5.1  

            	
              Until
      all the Company's Obligations have been irrevocably paid and discharged in
      full, the Parent will not exercise any rights which it may
      have:

            

    

     

    
      	
              (a)  

            	
              to
      exercise or enforce any of its rights of subrogation, indemnity or
      contribution against the Company;

            

    

     

    
      	
              (b)  

            	
              to
      bring legal or other proceedings for any order requiring the Company to
      make any payment or perform any obligation in respect of which this
      guarantee has been provided; or

            

    

     

    
      	
              (c)  

            	
              to
      claim or prove in a liquidation or other insolvency proceeding of the
      Company in competition with the
Noteholders.

            

    

     

    
      	
              6.  

            	
              PAYMENTS

            

    

     

    
      	
              6.1  

            	
              All
      payments to be made by the Parent under this guarantee are to be made to
      the Noteholders:

            

    

     

    
      	
              (a)  

            	
              in
      immediately available cleared funds in the same currency in which the sums
      comprised in the Company's Obligations are denominated to the account each
      Noteholder specifies for this purpose;
and

            

    

     

    
      	
              (b)  

            	
              in
      full without set-off or counterclaim and not subject to any condition and
      free and clear of and without deduction or withholding for or on account
      of any taxes or any other purpose.  If any deduction or
      withholding from any payment is required by law then the Parent will
      promptly pay to the Noteholders an additional amount being the amount
      required to procure that the aggregate net amount received by the
      Noteholders will equal the full amount which would have been received by
      it had no deduction or withholding been
made.

            

    

     

    
      	
              7.  

            	
              CANCELLATION

            

    

     

    The
Parent shall be entitled to cancel this guarantee in accordance with the terms
of clauses 6.2 and 6.3 of the Instrument.

     

    
      	
              8.  

            	
              MISCELLANEOUS

            

    

     

    
      	
              8.1  

            	
              For
      the avoidance of doubt, this instrument is not a demand guarantee or
      performance bond and the Parent shall be entitled to raise defences to its
      liability hereunder save for whether those defences have been expressly
      excluded by the terms of this
guarantee.

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	
              8.2  

            	
              No
      failure or delay by any Noteholder in exercising any right under this
      guarantee shall operate as a waiver of that right nor shall any single or
      partial exercise of any right  preclude any other or further
      exercise of that or any other
right.

            

    

     

    
      	
              8.3  

            	
              If
      any provision of this guarantee is or becomes invalid, illegal or
      unenforceable in any respect under any law, the validity, legality and
      enforceability of the remaining provisions shall not be affected or
      impaired in any way.

            

    

     

    
      	
              9.  

            	
              GOVERNING
      LAW

            

    

     

    This
guarantee shall be governed by and construed in all respects in accordance with
English law and the Parent agrees that the courts of England shall have
non-exclusive jurisdiction to hear and decide any suit, action or proceedings
and/or to settle any disputes, which may arise out of or in connection with this
guarantee and, for these purposes, the Parent irrevocably submits to the
jurisdiction of the courts of England.

     

    IN WITNESS whereof this
instrument has been executed as a deed on the date first above
written.

     

    
      	
              Signed
      as a deed on behalf of

              UNIVERSE CORPORATION
      acting by:

               

            	 
      	
              )

              )

              )

              )

            	 
      
	
              Name:

              Title:

               

            	 
      	 
      	 
      
	
              Who,
      in accordance with the laws of that territory, is acting under the
      authority of the company.

            	 
      	 
      	 
      

    

    

     

    

    
      
        
          
            
              	 
      	 
      	 
      
	
                       

                    

            

            

          

           

        

        
          21

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
5

     

    Provisions
for meetings of Noteholders

     

    
      	
              1.  

            	
              CALLING
      OF MEETINGS

            

    

     

    The
Company at any time may, and shall upon the request in writing signed by
Noteholders holding not less than one-tenth in nominal value of the Notes for
the time being outstanding, convene a meeting of the
Noteholders.  Every such meeting and every adjourned meeting shall be
held at the registered office of the Company for the time being or such other
place as the Company may specify.

     

    
      	
              2.  

            	
              NOTICE
      OF MEETINGS

            

    

     

    At least
21 days' notice (exclusive of the day on which the notice is given or deemed to
be given and the day on which the meeting is to be held) specifying the day,
time and place of meeting shall be given to the Noteholders of any meeting of
the Noteholders.  Any such notice shall specify the terms of the
resolutions to be proposed and shall include a statement to the effect that
proxies may be appointed in accordance with the provisions of paragraph 15 of
this schedule.  No amendment (other than an amendment to correct a
typographical or manifest error) may subsequently be made to the resolution(s)
specified in the notice of meeting.  The accidental omission to give
notice to, or the non-receipt of notice by, any of the Noteholders shall not
invalidate the proceedings at any meeting.

     

    
      	
              3.  

            	
              CHAIRMAN
      OF MEETINGS

            

    

     

    Such
person (who may, but need not, be a Noteholder) nominated in writing by the
Company shall be entitled to take the chair at every such meeting or adjourned
meeting.  If at any meeting or adjourned meeting no person shall be
nominated or the person nominated shall not be present within 15 minutes after
the time appointed for the holding of such meeting or adjourned meeting the
Noteholders present shall choose one of their number to be
chairman.

     

    
      	
              4.  

            	
              QUORUM
      AT MEETINGS

            

    

     

    At any
such meeting two or more persons present in person (not being the Company, any
person directly or indirectly under the control of the Company or any nominees
thereof) or by proxy holding Notes or being proxies and being or representing in
the aggregate the holders of not less than one-tenth in nominal amount of the
Notes then outstanding and not held by or on behalf of the Company shall form a
quorum for the transaction of business and no business (other than the choosing
of a chairman) shall be transacted at any meeting unless the requisite quorum be
present at the commencement of business.

     

    
      	
              5.  

            	
              ABSENCE
      OF QUORUM

            

    

     

    If within
half an hour from the time appointed for any such meeting a quorum is not
present, the meeting shall, if convened upon the requisition of Noteholders, be
dissolved.  In any other case, the meeting shall stand adjourned for
such period, not being less than 14 days nor more than 42 days, and to such time
and place as may be appointed by the chairman.  At such adjourned
meeting two or more persons present in person or by proxy (not being the
Company, any person directly or indirectly under the control of the Company or
any nominee thereof) holding Notes or being proxies (whatever the nominal amount
of the Notes which they hold or represent) shall form a quorum and shall have
the power to pass any resolution and to decide upon all matters which could
properly have been dealt with at the meeting from which the adjournment took
place had a quorum been present at such meeting.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	
              6.  

            	
              NOTICE
      OF ADJOURNED MEETINGS

            

    

     

    At least
ten days' notice of any meeting adjourned through want of a quorum shall be
given in the same manner as of an original meeting and such notice shall state
the quorum required at such adjourned meeting.  Subject as aforesaid
it shall not be necessary to give any notice of an adjourned
meeting.

     

    
      	
              7.  

            	
              ADJOURNMENT
      OF MEETINGS

            

    

     

    The
chairman may with the consent of (and shall if directed by) any meeting adjourn
the same from time to time and from place to place but no business shall be
transacted at any adjourned meeting except business which might lawfully have
been transacted at the meeting from which the adjournment took
place.

     

    
      	
              8.  

            	
              RESOLUTION
      ON A SHOW OF HANDS OR POLL

            

    

     

    Every
question submitted to a meeting shall be decided in the first instance by a show
of hands, and unless a poll is demanded (before or on the declaration of the
result of the show of hands) by the chairman, the Company or by one or more
persons holding Notes or being proxies and being or representing in the
aggregate the holders of not less than one-twentieth of the nominal amount of
the Notes then outstanding and not held by or on behalf of the Company, a
declaration by the chairman that the resolution has been carried, or carried by
a particular majority, or lost, or not carried by any particular majority shall
be conclusive evidence of the fact without proof of the number or proportion of
the votes recorded in favour of or against such resolution.

     

    
      	
              9.  

            	
              MANNER
      OF TAKING POLL

            

    

     

    If at any
meeting a poll is so demanded it shall be taken in such manner and, subject as
hereinafter provided, either at once or after such an adjournment as the
chairman directs and the result of such poll shall be deemed to be the
resolution of the meeting at which the poll was demanded as at the date of the
taking of the poll.  The demand for a poll shall not prevent the
continuance of the meeting for the transaction of any business other than the
question on which the poll has been demanded.

     

    
      	
              10.  

            	
              TIME
      FOR TAKING POLL

            

    

     

    Any poll
demanded at any meeting on the election of a chairman or on any question of
adjournment shall be taken at the meeting without adjournment.

     

    
      	
              11.  

            	
              PERSONS
      ENTITLED TO ATTEND AND VOTE

            

    

     

    Any
persons duly authorised by the Company including without limitation the
Directors, the secretary or the Company's auditors or legal or financial
advisers shall be entitled to attend and speak at any meeting of the Noteholders
and any other person authorised in that behalf by the Directors.  Save
as aforesaid no person shall be entitled to attend or vote at any meeting of the
Noteholders unless he is registered as a holder of Notes or he produces written
evidence of his appointment as a representative pursuant to paragraph 20 or is a
proxy.  No votes may be exercised in respect of Notes held by or for
the account of the Company or anyone directly or indirectly under the control of
it, but this shall not prevent any proxy from being a director, officer or
representative of, or otherwise connected with the Company.

     

    
      	
              12.  

            	
              VOTES

            

    

     

    
      	
              12.1  

            	
              Subject
      as provided in paragraph 11 above, at any
  meeting:

            

    

     

    
      	
              (a)  

            	
              on
      a show of hands every Noteholder who (being an individual) is present in
      person or by proxy or (being a corporation) is present by its
      representative duly authorised in accordance with paragraph 20 below or
      its proxy, shall have one vote; and

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    
      	
              (b)  

            	
              on
      a poll every person who is so present shall have one vote in respect of
      every £1 nominal of Notes of which he is the holder or in respect of which
      he is a proxy or a representative.

            

    

     

    
      	
              12.2  

            	
              Without
      prejudice to the obligations of any proxies any person entitled to more
      than one vote need not use all his votes or cast all the votes to which he
      is entitled in the same way.

            

    

     

    
      	
              13.  

            	
              VOTES
      OF JOINT HOLDERS

            

    

     

    In the
case of the joint holders of Notes the vote of the senior who tenders a vote
whether in person or by proxy shall be accepted to the exclusion of the votes of
the other joint holders and for this purpose seniority shall be determined by
the order in which the name stands in the Register.

     

    
      	
              14.  

            	
              CASTING
      VOTE OF CHAIRMAN

            

    

     

    In the
case of an equality of votes, the chairman shall both on a show of hands and on
a poll have a casting vote in addition to the vote or votes (if any) to which he
may be entitled as a Noteholder or as a proxy or as a
representative.

     

    
      	
              15.  

            	
              APPOINTMENT
      OF PROXY

            

    

     

    
      	
              15.1  

            	
              Proxies
      named in any Form of Proxy (as defined below) or block voting instruction
      need not be Noteholders.

            

    

     

    
      	
              15.2  

            	
              A
      Noteholder may by instrument in writing (a "Form of Proxy") appoint
      a proxy.  The Form of Proxy shall be signed by the appointor or
      his attorney duly authorised in writing or if the appointor is a
      corporation either under the common seal or under the hand of an officer
      or attorney so authorised.  The Company may, but shall not be
      bound to, require evidence of the authority of any such officer or
      attorney.

            

    

     

    
      	
              15.3  

            	
              A
      Form of Proxy and the power of attorney or other authority (if any) under
      which it is signed or a notarially certified copy of such power or
      authority shall be deposited at such place as the Company may, in the
      notice convening the meeting, direct or, if no such place is appointed,
      then at the registered office of the Company not less than 48 hours before
      the time appointed for holding the meeting at which the person named in
      the Form of Proxy proposes to vote and in default the Form of Proxy shall
      not be treated as valid.  No Form of Proxy shall be valid after
      the expiration of 12 months from the date named in it as the date of its
      execution.

            

    

     

    
      	
              15.4  

            	
              A
      Form of Proxy may be in any usual or common form or in any other form
      which the Company shall approve.  A proxy shall, unless the
      contrary is stated therein and subject to paragraph 15.3 above and
      paragraph 15.5 below, be valid as well for any adjournment of the meeting
      as for the meeting to which it relates and need not be
      witnessed.

            

    

     

    
      	
              15.5  

            	
              A
      vote given in accordance with the terms of a Form of Proxy shall be valid
      notwithstanding the previous death or insanity of the principal or
      revocation of the proxy or of the authority under which the proxy was
      executed provided that no intimation in writing of such death, insanity or
      revocation shall have been received by the Company at its registered
      office before the commencement of the meeting or adjourned meeting for the
      time being at which the proxy is
used.

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    
      	
              16.  

            	
              POWERS
      OF MEETINGS OF NOTEHOLDERS

            

    

     

    
      	
              16.1  

            	
              A
      meeting of the Noteholders shall in addition to all other powers (but
      without prejudice to any powers conferred on other persons in the
      instrument) have the following powers exercisable only by Extraordinary
      Resolution namely:

            

    

     

    
      	
              16.2  

            	
              to
      sanction any proposal by the Company for any modification, abrogation,
      variation or compromise of, or arrangement in respect of, the rights of
      the Noteholders against the Company whether such rights shall arise under
      the conditions, the instrument or
otherwise;

            

    

     

    
      	
              16.3  

            	
              to
      sanction any proposal by the Company for the exchange or substitution for
      the Notes of, or the conversion of the Notes into, other obligations or
      securities of the Company or any other person or
  entity;

            

    

     

    
      	
              16.4  

            	
              to
      assent to any modification or abrogation of the conditions and of the
      provisions of these presents which shall be proposed by the Company and to
      authorise the Company to execute an instrument in substitution to this
      instrument embodying any such modification or abrogation;
    and

            

    

     

    
      	
              16.5  

            	
              to
      appoint any persons (whether Noteholders or not) as a committee or
      committees to represent the interests of the Noteholders and to confer
      upon such committee or committees any powers or discretions which the
      Noteholders could themselves exercise by Extraordinary
      Resolution.

            

    

     

    
      	
              17.  

            	
              EXTRAORDINARY
      RESOLUTION BINDING ON ALL
NOTEHOLDERS

            

    

     

    An
Extraordinary Resolution passed at a meeting of the Noteholders duly convened
and held in accordance with this instrument shall be binding upon all the
Noteholders whether present or not at such meeting and each of the Noteholders
shall be bound to give effect thereto accordingly.  The passing of any
such resolution shall be conclusive evidence that the circumstances of any such
resolution justify the passing thereof.

     

    
      	
              18.  

            	
              DEFINITION
      OF EXTRAORDINARY RESOLUTION

            

    

     

    The
expression "Extraordinary
Resolution" when used in this instrument means a resolution passed at a
meeting of the Noteholders duly convened and held in accordance with the
provisions contained herein by a majority consisting of not less than
three-quarters of the persons voting thereat upon a show of hands or, if a poll
is demanded, then by a majority consisting of not less than three-quarters of
the votes cast thereon.

     

    
      	
              19.  

            	
              MINUTES
      OF MEETINGS

            

    

     

    Minutes
of all resolutions and proceedings at every meeting shall be made and duly
entered in books to be from time to time provided for that purpose by the
Company and any such minutes, if they purport to be signed by the chairman of
the meeting at which such resolutions were passed or proceedings were transacted
or by the chairman of the next succeeding meeting of the Noteholders, shall be
conclusive evidence of the matters therein contained and, until the contrary is
proved, every meeting in respect of which minutes of the proceedings have been
made and signed as aforesaid shall be deemed to have been duly held and convened
and all resolutions passed or proceedings transacted thereat to have been duly
passed and transacted.

     

    
      	
              20.  

            	
              CORPORATE
      REPRESENTATIVES

            

    

     

    Any
company or corporation which is a holder of Notes may by resolution of its
directors or other governing body authorise any person to act as its
representative at any meeting of Noteholders and such representative shall be
entitled to exercise the same powers on behalf of the company or corporation
which he represents as if he were the holder of Notes.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	
              21.  

            	
              RESOLUTIONS
      IN WRITING

            

    

     

    A
resolution in writing proposed by the Company and signed by the holders of not
less than three-quarters in nominal amount of the Notes then in issue (other
than Notes held by or for the account of the Company) shall have effect in the
same manner as an Extraordinary Resolution of Noteholders duly passed at a
meeting duly convened and held.  Such resolution in writing may be
contained in one document or in several documents in like form, each signed by
one or more Noteholders.

     

    
      	
              22.  

            	
              CONSENT
      OF COMPANY

            

    

     

    Notwithstanding
anything in this instrument to the contrary, no resolution shall be effective
which would increase any obligation of the Company under the instrument without
the written consent of the Company.

     

    

    
      
        
          
            
              	 
      	 
      	 
      
	
                       

                    

            

            

          

           

        

        
          26

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
6

     

    ROLE
OF THE SECURITY TRUSTEE

     

    

     

    

    
      
        
          
            
              	 
      	 
      	 
      
	
                       

                    

            

            

          

           

        

        
          27

          
            

          

        

        
           

        

      

    

    

    
      	
              Executed
      as a deed by

              UNIVERSE BIDCO LIMITED
      acting by

              .....................................................................:

               

            	 
      	
              )

              )

              )

              )

            	 
      
	
              Signature
      of director

               

              Signature
      of witness

               

              Name
      of witness

               

              Address
      of witness

               

               

               

               

               

              Occupation
      of witness

               

            	 
      	
              ...........................................................................

               

              ..............................................................................

               

              ............................................................................

               

              ............................................................................

               

              ............................................................................

               

              ............................................................................

               

              ..............................................................................

               

            	 
      

    

    

     

    
      	
              Executed
      as a deed by

              [SECURITY TRUSTEE]
      acting by

              .....................................................................:

               

            	 
      	
              )

              )

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              Signature
      of director

               

              Signature
      of witness

               

              Name
      of witness

               

              Address
      of witness

               

               

               

               

               

              Occupation
      of witness

               

            	 
      	
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          28Exhibit 10

Exhibit
10.46

Freddie Mac
Loan No. 504181106
Lazy Hollow Apartments

MULTIFAMILY
NOTE

MULTISTATE – FIXED
RATE

(REVISION DATE
6-1-2010)

 

	
US $6,330,000.00
	
Effective Date:  As of June
30, 2010

FOR VALUE RECEIVED, the undersigned
(together with such party's or parties' successors and assigns,
"Borrower") jointly and severally (if more than one) promises to pay to
the order of WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking
association, the principal sum of Six Million Three Hundred Thirty Thousand and
00/100 Dollars (US $6,330,000.00), with interest on the unpaid principal
balance, as hereinafter provided.

1.                 
Defined Terms.  

(a)               
As used in this Note: 

"Base Recourse" means a
portion of the Indebtedness equal to zero percent (0%) of the original principal
balance of this Note.

"Business Day" means any day
other than a Saturday, a Sunday or any other day on which Lender or the national
banking associations are not open for business.

"Default Rate" means an annual
interest rate equal to four (4) percentage points above the Fixed Interest
Rate.  However, at no time will the Default Rate exceed the Maximum
Interest Rate.

"Fixed Interest Rate" means the
annual interest rate of five and eighty-eight hundredths percent (5.88%).

"Installment Due Date" means,
for any monthly installment of interest only or principal and interest, the date
on which such monthly installment is due and payable pursuant to Section 3 of
this Note. The "First Installment Due Date" under this Note is August 1,
2010.  

"Lender" means the holder from
time to time of this Note.

"Loan" means the loan evidenced
by this Note.

"Maturity Date" means
the earlier of (i) July 1, 2020 (the "Scheduled Maturity
Date"), and (ii) the date on which the unpaid principal
balance of this Note becomes due and payable by acceleration or otherwise
pursuant to the Loan Documents or the exercise by Lender of any right or remedy
under any Loan Document. 

"Maximum Interest Rate" means
the rate of interest that results in the maximum amount of interest allowed by
applicable law. 

"Prepayment Premium Period"
means the period during which, if a prepayment of principal occurs, a prepayment
premium will be payable by Borrower to Lender.  The
Prepayment Premium Period is the period from and including the date of this Note
until but not including the first day of the Window Period.

"Security Instrument" means the
multifamily mortgage, deed to secure debt or deed of trust effective as of the
effective date of this Note, from Borrower to or for the benefit of Lender and
securing this Note.

"Window Period" means the six
(6) consecutive calendar month period prior to the Scheduled Maturity
Date.

"Yield Maintenance Period"
means the period from and including the date of this Note until but not
including January 1, 2020. 

(b)              
Other capitalized terms used but not defined in this Note shall
have the meanings given to such terms in the Security Instrument.

2.                 
Address for Payment.  All payments due under this
Note shall be payable at 2010 Corporate Ridge, Suite 1000, McLean, Virginia
22102, or such other place as may be designated by Notice to Borrower from or on
behalf of Lender.

3.                 
Payments.  

(a)               
Interest will accrue on the outstanding principal balance of this
Note at the Fixed Interest Rate, subject to the provisions of Section 8 of this
Note.  

(b)              
Interest under this Note shall be computed, payable and allocated
on the basis of a 360-day year consisting of twelve 30-day months. 

(c)               
Unless disbursement of principal is made by Lender to Borrower on
the first day of a calendar month, interest for the period beginning on the date
of disbursement and ending on and including the last day of such calendar month
shall be payable by Borrower simultaneously with the execution of this
Note.  If disbursement of principal is made by Lender to Borrower on the
first day of a calendar month, then no payment will be due from Borrower at the
time of the execution of this Note.  The Installment Due Date for the first
monthly installment payment under Section 3(d) of interest only or principal and
interest, as applicable, will be the First Installment Due Date set forth in
Section 1(a) of this Note.  Except as provided in this Section 3(c) and in
Section 10, accrued interest will be payable in arrears. 

(d)              
Beginning on the First Installment Due Date, and continuing until
and including the monthly installment due on the Maturity Date, principal and
accrued interest shall be payable by Borrower in consecutive monthly
installments due and payable on the first day of each calendar month.  The
amount of the monthly installment of principal and interest payable pursuant to
this Section 3(d) on an Installment Due Date shall be Thirty-Seven Thousand Four
Hundred Sixty-Four and 57/100 Dollars ($37,464.57).

(e)               
All remaining Indebtedness, including all principal and interest,
shall be due and payable by Borrower on the Maturity Date.

(f)                
All payments under this Note shall be made in immediately
available U.S. funds.

(g)               
Any regularly scheduled monthly installment of interest only or
principal and interest payable pursuant to this Section 3 that is received
by Lender before the date it is due shall be deemed to have been received on the
due date for the purpose of calculating interest due.

(h)               
Any accrued interest remaining past due for 30 days or more, at
Lender's discretion, may be added to and become part of the unpaid principal
balance of this Note and any reference to "accrued interest" shall refer to
accrued interest which has not become part of the unpaid principal
balance.  Any amount added to principal pursuant to the Loan Documents
shall bear interest at the applicable rate or rates specified in this Note and
shall be payable with such interest upon demand by Lender and absent such
demand, as provided in this Note for the payment of principal and
interest.    

4.                 
Application of Payments.  If at any time Lender
receives, from Borrower or otherwise, any amount applicable to the Indebtedness
which is less than all amounts due and payable at such time, Lender may apply
the amount received to amounts then due and payable in any manner and in any
order determined by Lender, in Lender's discretion.  Borrower agrees that
neither Lender's acceptance of a payment from Borrower in an amount that is less
than all amounts then due and payable nor Lender's application of such payment
shall constitute or be deemed to constitute either a waiver of the unpaid
amounts or an accord and satisfaction.

5.                 
Security.  The Indebtedness is secured by, among
other things, the Security Instrument, and reference is made to the Security
Instrument for other rights of Lender as to collateral for the
Indebtedness.

6.                 
Acceleration.  If an Event of Default has occurred
and is continuing, the entire unpaid principal balance, any accrued interest,
any prepayment premium payable under Section 10, and all other amounts
payable under this Note and any other Loan Document, shall at once become due
and payable, at the option of Lender, without any prior notice to Borrower
(except if notice is required by applicable law, then after such notice). 
Lender may exercise this option to accelerate regardless of any prior
forbearance.  For purposes of exercising such option, Lender shall
calculate the prepayment premium as if prepayment occurred on the date of
acceleration.  If prepayment occurs thereafter, Lender shall recalculate
the prepayment premium as of the actual prepayment date.

7.                 
Late Charge.

(a)               
If any monthly installment of interest or principal and interest
or other amount payable under this Note or under the Security Instrument or any
other Loan Document is not received in full by Lender within ten (10) days after
the installment or other amount is due, counting from and including the date
such installment or other amount is due (unless applicable law requires a longer
period of time before a late charge may be imposed, in which event such longer
period shall be substituted), Borrower shall pay to Lender, immediately and
without demand by Lender, a late charge equal to five percent (5%) of such
installment or other amount due (unless applicable law requires a lesser amount
be charged, in which event such lesser amount shall be substituted). 

(b)              
Borrower acknowledges that its failure to make timely payments
will cause Lender to incur additional expenses in servicing and processing the
Loan and that it is extremely difficult and impractical to determine those
additional expenses.  Borrower agrees that the late charge payable pursuant
to this Section represents a fair and reasonable estimate, taking into
account all circumstances existing on the date of this Note, of the additional
expenses Lender will incur by reason of such late payment.  The late charge
is payable in addition to, and not in lieu of, any interest payable at the
Default Rate pursuant to Section 8.

8.                 
Default Rate.  

(a)               
So long as (i) any monthly installment under this Note
remains past due for thirty (30) days or more or (ii) any other Event of
Default has occurred and is continuing, then notwithstanding anything in Section
3 of this Note to the contrary, interest under this Note shall accrue on the
unpaid principal balance from the Installment Due Date of the first such unpaid
monthly installment or the occurrence of such other
Event of Default, as applicable, at the Default Rate.  

(b)              
From and after the Maturity Date, the unpaid principal balance
shall continue to bear interest at the Default Rate until and including the date
on which the entire principal balance is paid in full.  

(c)               
Borrower acknowledges that (i) its failure to make timely
payments will cause Lender to incur additional expenses in servicing and
processing the Loan, (ii) during the time that any monthly installment
under this Note is delinquent for thirty (30) days or more, Lender will incur
additional costs and expenses arising from its loss of the use of the money due
and from the adverse impact on Lender's ability to meet its other obligations
and to take advantage of other investment opportunities; and (iii)  it is
extremely difficult and impractical to determine those additional costs and
expenses.  Borrower also acknowledges that, during the time that any
monthly installment under this Note is delinquent for thirty (30) days or more
or any other Event of Default has occurred and is continuing, Lender's risk of
nonpayment of this Note will be materially increased and Lender is entitled to
be compensated for such increased risk.  Borrower agrees that the increase
in the rate of interest payable under this Note to the Default Rate represents a
fair and reasonable estimate, taking into account all circumstances existing on
the date of this Note, of the additional costs and expenses Lender will incur by
reason of the Borrower's delinquent payment and the additional compensation
Lender is entitled to receive for the increased risks of nonpayment associated
with a delinquent loan.

9.                 
Limits on Personal Liability. 

(a)               
Except as otherwise provided in this Section 9, Borrower
shall have no personal liability under this Note, the Security Instrument or any
other Loan Document for the repayment of the Indebtedness or for the performance
of any other obligations of Borrower under the Loan Documents and Lender's only
recourse for the satisfaction of the Indebtedness and the performance of such
obligations shall be Lender's exercise of its rights and remedies with respect
to the Mortgaged Property and to any other collateral held by Lender as security
for the Indebtedness.  This limitation on Borrower's liability shall not
limit or impair Lender's enforcement of its rights against any guarantor of the
Indebtedness or any guarantor of any other obligations of Borrower.

(b)              
Borrower shall be personally liable to Lender for the amount of
the Base Recourse, plus any other amounts for which Borrower has personal
liability under this Section 9. 

(c)               
In addition to the Base Recourse, Borrower shall be personally
liable to Lender for the repayment of a further portion of the Indebtedness
equal to any loss or damage suffered by Lender as a result of the occurrence of
any of the following events:

(i)                 
Borrower fails to pay to Lender upon demand after an Event of
Default all Rents to which Lender is entitled under Section 3(a) of the
Security Instrument and the amount of all security deposits collected by
Borrower from tenants then in residence.  However, Borrower will not be
personally liable for any failure described in this subsection (i) if
Borrower is unable to pay to Lender all Rents and security deposits as required
by the Security Instrument because of a valid order issued in a bankruptcy,
receivership, or similar judicial proceeding.

(ii)               
Borrower fails to apply all insurance proceeds and condemnation
proceeds as required by the Security Instrument.  However, Borrower will
not be personally liable for any failure described in this subsection (ii)
if Borrower is unable to apply insurance or condemnation proceeds as required by the Security Instrument because of a valid order
issued in a bankruptcy, receivership, or similar judicial proceeding.

(iii)              
Borrower fails to comply with Section 14(g) or (h) of the
Security Instrument relating to the delivery of books and records, statements,
schedules and reports.  

(iv)             
Borrower fails to pay when due in accordance with the terms of the
Security Instrument the amount of any item below marked "Deferred";
provided however, that if no item is marked "Deferred", this
Section 9(c)(iv) shall be of no force or effect.   

[Deferred]       
Hazard Insurance premiums or other insurance premiums,

[Deferred]       
Taxes, 

[Deferred]       
water and sewer charges (that could become a lien on the Mortgaged
Property),

[N/A]  
            ground rents,

[Deferred]       
assessments or other charges (that could become a lien on the Mortgaged
Property)

(v)               
Borrower engages in any willful act of material waste of the
Mortgaged Property.

(d)              
In addition to the Base Recourse, Borrower shall be personally
liable to Lender for:

(i)                 
the performance of all of Borrower's obligations under
Section 18 of the Security Instrument (relating to environmental
matters);

(ii)               
the costs of any audit under Section 14(g) of the Security
Instrument; and 

(iii)              
any costs and expenses incurred by Lender in connection with the
collection of any amount for which Borrower is personally liable under this
Section 9, including Attorneys' Fees and Costs and the costs of conducting
any independent audit of Borrower's books and records to determine the amount
for which Borrower has personal liability.

(e)               
All payments made by Borrower with respect to the Indebtedness and
all amounts received by Lender from the enforcement of its rights under the
Security Instrument and the other Loan Documents shall be applied first to the
portion of the Indebtedness for which Borrower has no personal liability.

(f)                
Notwithstanding the Base Recourse, Borrower shall become
personally liable to Lender for the repayment of all of the Indebtedness upon
the occurrence of any of the following Events of Default: 

(i)                 
Borrower's ownership of any property or operation of any business
not permitted by Section 33 of the Security Instrument;

(ii)               
a Transfer (including, but not limited to, a lien or encumbrance)
that is an Event of Default under Section 21 of the Security Instrument,
other than a Transfer consisting solely of the involuntary removal or
involuntary withdrawal of a general partner in a limited partnership or a
manager in a limited liability company; 

(iii)              
fraud or written material misrepresentation by Borrower or any
officer, director, partner, member or employee of Borrower in connection with
the application for or creation of the Indebtedness or any request for any
action or consent by Lender; or

(iv)             
an involuntary bankruptcy or other involuntary insolvency
proceeding is commenced against Borrower (by a party other than Lender) but only
if Borrower has failed to use commercially reasonable efforts to dismiss such
proceeding or has consented to such proceeding.

(g)               
To the extent that Borrower has personal liability under this
Section 9, Lender may exercise its rights against Borrower personally
without regard to whether Lender has exercised any rights against the Mortgaged
Property or any other security, or pursued any rights against any guarantor, or
pursued any other rights available to Lender under this Note, the Security
Instrument, any other Loan Document or applicable law.  To the fullest
extent permitted by applicable law, in any action to enforce Borrower's personal
liability under this Section 9, Borrower waives any right to set off the
value of the Mortgaged Property against such personal liability.

10.             
Voluntary and Involuntary Prepayments.

(a)               
Any receipt by Lender of principal due under this Note prior to
the Maturity Date, other than principal required to be paid in monthly
installments pursuant to Section 3, constitutes a prepayment of principal
under this Note.  Without limiting the foregoing, any application by
Lender, prior to the Maturity Date, of any proceeds of collateral or other
security to the repayment of any portion of the unpaid principal balance of this
Note constitutes a prepayment under this Note. 

(b)              
Borrower may voluntarily prepay all of the unpaid principal
balance of this Note on an Installment Due Date so long as Borrower designates
the date for such prepayment in a Notice from Borrower to Lender given at least
30 days prior to the date of such prepayment.  If an Installment Due Date
(as defined in Section 1(a)) falls on a day which is not a Business Day, then
with respect to payments made under this Section 10 only, the term "Installment
Due Date" shall mean the Business Day immediately preceding the scheduled
Installment Due Date.

(c)               
Notwithstanding subsection (b) above, Borrower may voluntarily
prepay all of the unpaid principal balance of this Note on a Business Day other
than an Installment Due Date if Borrower provides Lender with the Notice set
forth in subsection (b) and meets the other requirements set forth in this
subsection.  Borrower acknowledges that Lender has agreed that Borrower may
prepay principal on a Business Day other than an Installment Due Date only
because Lender shall deem any prepayment received by Lender on any day other
than an Installment Due Date to have been received on the Installment Due Date
immediately following such prepayment and Borrower shall be responsible for all
interest that would have been due if the prepayment had actually been made on
the Installment Due Date immediately following such prepayment.

(d)              
Unless otherwise expressly provided in the Loan Documents,
Borrower may not voluntarily prepay less than all of the unpaid principal
balance of this Note.  In order to voluntarily prepay all or any part of
the principal of this Note, Borrower must also pay to Lender, together
with the amount of principal being prepaid, (i) all accrued and unpaid
interest due under this Note, plus (ii) all other sums due to Lender at the
time of such prepayment, plus (iii) any prepayment premium calculated
pursuant to Section 10(e).

(e)               
Except as provided in Section 10(f), a prepayment premium shall be
due and payable by Borrower in connection with any prepayment of principal under
this Note during the Prepayment Premium Period.  The prepayment premium
shall be computed as follows:

(i)                 
For any prepayment made during the Yield Maintenance Period, the
prepayment premium shall be whichever is the greater of subsections (A) and (B)
below:

(A)             
1.0% of the amount of principal being prepaid; or 

(B)             
the product obtained by multiplying:

(1)              
the amount of principal being prepaid or accelerated, 

by

(2)              
the excess (if any) of the Monthly Note Rate over the Assumed
Reinvestment Rate, 

by

(3)              
the Present Value Factor.

For purposes of subsection (B),
the following definitions shall apply:

Monthly Note Rate:one-twelfth (1/12) of the Fixed
Interest Rate, expressed as a decimal calculated to five digits.

Prepayment Date:  in the case of a voluntary
prepayment, the date on which the prepayment is made; in the case of the
application by Lender of collateral or security to a portion of the principal
balance, the date of such application.

Assumed Reinvestment
Rate: 
one-twelfth (1/12) of the yield rate expressed as a decimal to two digits, as of
the close of the trading session which is five Business Days before the
Prepayment Date, found among the Daily Treasury Yield Curve Rates, commonly
known as Constant Maturity Treasury (“CMT”) rates, with a maturity equal to the
remaining Yield Maintenance Period, as reported on the U.S. Department of the
Treasury website. If no published CMT maturity matches the remaining Yield
Maintenance Period, Lender shall interpolate as a decimal to two digits the
yield rate between (a) the CMT with a maturity closest to, but shorter than, the
remaining Yield Maintenance Period, and (b) the CMT with a maturity closest to,
but longer than, the remaining Yield Maintenance Period, as follows:

 

	
		

 

 

 {[(B-A)/(D-C)] X [E-C]}
+ A

 

A = yield rate for the CMT with a
maturity shorter than the remaining Yield Maintenance Period 

B = yield rate for the CMT with a
maturity longer than the remaining Yield Maintenance Period

C = number of months to maturity for
the CMT maturity shorter than the remaining Yield Maintenance Period

D = number of
months to maturity for the CMT maturity longer than the remaining Yield
Maintenance Period

E = number of months remaining in the
Yield Maintenance Period

 

In the event the U.S. Department of
the Treasury ceases publication of the CMT rates, the Assumed Reinvestment Rate
shall equal the yield rate on the first U.S. Treasury security which is not
callable or indexed to inflation and which matures after the expiration of the
Yield Maintenance Period.

 

Present Value Factor: 
the factor that
discounts to present value the costs resulting to Lender from the difference in
interest rates during the months remaining in the Yield Maintenance Period,
using the Assumed Reinvestment Rate as the discount rate, with monthly
compounding, expressed numerically as follows:

 

 [1-{1/(1+ARR)}n]/ARR

 

n= the number of months remaining in
Yield Maintenance Period; provided, however, if a prepayment occurs on an
Installment Due Date, then the number of months remaining in the Yield
Maintenance Period shall be calculated beginning with the month in which such
prepayment occurs and if such prepayment occurs on a Business Day other than an
Installment Due Date, then the number of months remaining in the Yield
Maintenance Period shall be calculated beginning with the month immediately
following the date of such prepayment.

ARR = Assumed Reinvestment Rate

(ii)               
For any prepayment made after the expiration of the Yield
Maintenance Period but during the remainder of the Prepayment Premium Period,
the prepayment premium shall be 1.0% of the amount of principal being
prepaid.

(f)                
Notwithstanding any other provision of this Section 10, no
prepayment premium shall be payable with respect to (i) any prepayment made
during the Window Period, or (ii) any prepayment occurring as a result of
the application of any insurance proceeds or condemnation award under the
Security Instrument.

(g)               
Unless Lender agrees otherwise in writing, a permitted or required
prepayment of less than the unpaid principal balance of this Note shall not
extend or postpone the due date of any subsequent monthly installments or change
the amount of such installments. 

(h)               
Borrower recognizes that any prepayment of any of the unpaid
principal balance of this Note, whether voluntary or involuntary or resulting
from an Event of Default by Borrower, will result in Lender's incurring loss,
including reinvestment loss, additional expense and frustration or impairment of
Lender's ability to meet its commitments to third parties.  Borrower agrees
to pay to Lender upon demand damages for the detriment caused by any prepayment,
and agrees that it is extremely difficult and impractical to ascertain the
extent of such damages.  Borrower therefore acknowledges and agrees that
the formula for calculating prepayment premiums set
forth in this Note represents a reasonable estimate of the damages Lender will
incur because of a prepayment.  Borrower further acknowledges that the
prepayment premium provisions of this Note are a material part of the
consideration for the Loan, and that the terms of this Note are in other
respects more favorable to Borrower as a result of the Borrower's voluntary
agreement to the prepayment premium provisions. 

11.             
Costs and Expenses.  To the fullest extent allowed
by applicable law, Borrower shall pay all expenses and costs, including
Attorneys' Fees and Costs incurred by Lender as a result of any default under
this Note or in connection with efforts to collect any amount due under this
Note, or to enforce the provisions of any of the other Loan Documents, including
those incurred in post-judgment collection efforts and in any bankruptcy
proceeding (including any action for relief from the automatic stay of any
bankruptcy proceeding) or judicial or non-judicial foreclosure
proceeding.

12.             
Forbearance.  Any forbearance by Lender in
exercising any right or remedy under this Note, the Security Instrument, or any
other Loan Document or otherwise afforded by applicable law, shall not be a
waiver of or preclude the exercise of that or any other right or remedy. 
The acceptance by Lender of any payment after the due date of such payment, or
in an amount which is less than the required payment, shall not be a waiver of
Lender's right to require prompt payment when due of all other payments or to
exercise any right or remedy with respect to any failure to make prompt
payment.  Enforcement by Lender of any security for Borrower's obligations
under this Note shall not constitute an election by Lender of remedies so as to
preclude the exercise of any other right or remedy available to Lender.

13.             
Waivers.  Borrower and all endorsers and
guarantors of this Note and all other third party obligors waive presentment,
demand, notice of dishonor, protest, notice of acceleration, notice of intent to
demand or accelerate payment or maturity, presentment for payment, notice of
nonpayment, grace, and diligence in collecting the Indebtedness.

14.             
Loan Charges.  Neither this Note nor any of the
other Loan Documents shall be construed to create a contract for the use,
forbearance or detention of money requiring payment of interest at a rate
greater than the Maximum Interest Rate.  If any applicable law limiting the
amount of interest or other charges permitted to be collected from Borrower in
connection with the Loan is interpreted so that any interest or other charge
provided for in any Loan Document, whether considered separately or together
with other charges provided for in any other Loan Document, violates that law,
and Borrower is entitled to the benefit of that law, that interest or charge is
hereby reduced to the extent necessary to eliminate that violation.  The
amounts, if any, previously paid to Lender in excess of the permitted amounts
shall be applied by Lender to reduce the unpaid principal balance of this Note.
For the purpose of determining whether any applicable law limiting the amount of
interest or other charges permitted to be collected from Borrower has been
violated, all Indebtedness that constitutes interest, as well as all other
charges made in connection with the Indebtedness that constitute interest, shall
be deemed to be allocated and spread ratably over the stated term of this
Note.  Unless otherwise required by applicable law, such allocation and
spreading shall be effected in such a manner that the rate of interest so
computed is uniform throughout the stated term of this Note.  

15.             
Commercial Purpose.  Borrower represents that
Borrower is incurring the Indebtedness solely for the purpose of carrying on a
business or commercial enterprise, and not for personal, family, household, or
agricultural purposes.

16.             
Counting of Days.  Except where otherwise
specifically provided, any reference in this Note to a period of "days" means
calendar days, not Business Days.

17.             
Governing Law.  This Note shall be governed by the
law of the Property Jurisdiction.

18.             
Captions.  The captions of the Sections of
this Note are for convenience only and shall be disregarded in construing this
Note.

19.             
Notices; Written Modifications.  

(a)               
All Notices, demands and other communications required or
permitted to be given pursuant to this Note shall be given in accordance with
Section 31 of the Security Instrument.  

(b)              
Any modification or amendment to this Note shall be ineffective
unless in writing signed by the party sought to be charged with such
modification or amendment; provided, however, in the event of a Transfer under
the terms of the Security Instrument that requires Lender's consent, any or some
or all of the Modifications to Multifamily Note set forth in Exhibit A to
this Note may be modified or rendered void by Lender at Lender's option, by
Notice to Borrower and the transferee, as a condition of Lender's
consent.

20.             
Consent to Jurisdiction and Venue.  Borrower
agrees that any controversy arising under or in relation to this Note may be
litigated in the Property Jurisdiction.  The state and federal courts and
authorities with jurisdiction in the Property Jurisdiction shall have
jurisdiction over all controversies that shall arise under or in relation to
this Note.  Borrower irrevocably consents to service, jurisdiction, and
venue of such courts for any such litigation and waives any other venue to which
it might be entitled by virtue of domicile, habitual residence or
otherwise.  However, nothing in this Note is intended to limit any right
that Lender may have to bring any suit, action or proceeding relating to matters
arising under this Note in any court of any other jurisdiction.

21.             
WAIVER OF TRIAL BY JURY.  BORROWER AND LENDER EACH
(A) AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING
OUT OF THIS NOTE OR THE RELATIONSHIP BETWEEN THE PARTIES AS LENDER AND BORROWER
THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY
JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR
IN THE FUTURE.  THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN
BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL
COUNSEL. 

22.             
State-Specific Provisions. N/A

ATTACHED EXHIBIT.  The Exhibit noted below, if
marked with an "X" in the space provided, is attached to this Note: 

	
X
	
 
	
Exhibit A
	
Modifications to Multifamily
Note

IN WITNESS WHEREOF, and in consideration of the Lender's
agreement to lend Borrower the principal amount set forth above, Borrower has
signed and delivered this Note under seal or has caused this Note to be signed
and delivered under seal by its duly authorized representative. Borrower intends
that this Note shall be deemed to be signed and delivered as a sealed
instrument. 

LAZY HOLLOW
PARTNERS, a California general
partnership

 

By:    Angeles Realty Corporation II, a
California corporation, its managing general partner

 

 

 

By:    /s/Patti K.
Fielding

Patti K. Fielding

Executive Vice President and Treasurer

 

 

 

 

 

 

 

 

 

 

 

 

PAY TO THE ORDER OF FEDERAL HOME LOAN
MORTGAGE CORPORATION, WITHOUT RECOURSE.

 

WELLS FARGO BANK, NATIONAL
ASSOCIATION, a
national banking association

 

 

 

By:   /s/Christian
Adrian

  Christian Adrian

  Assistant Vice
President

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