Document:

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                                                                   Exhibit 10.39

Conformed copy

                              SUBSIDIARIES GUARANTY

          SUBSIDIARIES GUARANTY, dated as of June 6, 2002 (as amended, modified
or supplemented from time to time, this "Guaranty"), made by each of the
undersigned guarantors (each, a "Guarantor" and, together with any other entity
that becomes a party hereto pursuant to Section 26 hereof, the "Guarantors").
Except as otherwise defined herein, capitalized terms used herein and defined in
the Credit Agreement (as defined below) shall be used herein as therein defined.

                              W I T N E S S E T H :

          WHEREAS, Host Marriott, L.P., a Delaware limited partnership (the
"U.S. Borrower"), each Canadian Revolving Loan Borrower from time to time party
thereto (together with the U.S. Borrower, the "Borrowers"), various lenders from
time to time party thereto (the "Lenders"), and Deutsche Bank Trust Company
Americas, as Administrative Agent (together with any successor administrative
agent, the "Administrative Agent"), have entered into a Credit Agreement, dated
as of June 6, 2002, providing for the making of Loans and other extensions of
credit to the Borrowers as contemplated therein (as amended, modified or
supplemented from time to time, the "Credit Agreement") (the Lenders, the
Administrative Agent and the Collateral Agent are herein called the "Lender
Creditors");

          WHEREAS, each Borrower may at any time and from time to time enter
into one or more Interest Rate Protection Agreements or Other Hedging Agreements
each of which by its terms requires the obligations of such Borrower under such
Interest Rate Protection Agreement or Other Hedging Agreement to be guaranteed
pursuant to this Guaranty ("Guaranteed Hedging Agreement") with one or more
Lenders or any affiliate thereof (each such Lender or affiliate, even if the
respective Lender subsequently ceases to be a Lender under the Credit Agreement
for any reason, together with such Lender's or affiliate's successors and
assigns, if any, collectively, the "Other Creditors," and together with the
Lender Creditors, are herein called the "Creditors");

          WHEREAS, each Guarantor is a direct or an indirect Subsidiary of the
U.S. Borrower;

          WHEREAS, it is a condition to the making of Loans and other extensions
of credit under the Credit Agreement that each Guarantor shall have executed and
delivered this Guaranty; and

          WHEREAS, each Guarantor will obtain benefits from the incurrence of
Loans by, and other extensions of credit to, the Borrowers under the Credit
Agreement and the entering into by the U.S. Borrower of the Guaranteed Hedging
Agreements referred to above and, accordingly, desires to execute this Guaranty
in order to satisfy the conditions described in the preceding paragraph;

          NOW, THEREFORE, in consideration of the foregoing and other benefits
accruing to each Guarantor, the receipt and sufficiency of which are hereby
acknowledged, each

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Guarantor hereby makes the following representations and warranties to the
Creditors and hereby covenants and agrees with each Creditor as follows:

          1. Each Guarantor, jointly and severally, absolutely, irrevocably and
unconditionally guarantees: (i) to the Lender Creditors the full and prompt
payment when due (whether at the stated maturity, by acceleration or otherwise)
of (x) the principal of and interest on the Notes issued by, and the Loans made
to, each Borrower under the Credit Agreement (including the Term Loans and
Revolving Loans) and the reimbursement obligations in respect of all Letters of
Credit and (y) all other obligations (including obligations which, but for the
automatic stay under Section 362(a) of the Bankruptcy Code, would become due)
and liabilities owing by the Borrowers to the Lender Creditors under the Credit
Agreement and each other Credit Document to which any of the Borrowers is a
party (including, without limitation, indemnities, Fees and interest thereon),
whether now existing or hereafter incurred under, arising out of or in
connection with the Credit Agreement and each such other Credit Document and the
due performance and compliance by the Borrowers with all of the terms,
conditions and agreements contained in the Credit Agreement and in each such
other Credit Document (all such principal, interest, liabilities and obligations
being herein collectively called the "Credit Agreement Obligations"); and (ii)
to each Other Creditor, the full and prompt payment when due (whether at the
stated maturity, by acceleration or otherwise) of all obligations (including
obligations which, but for the automatic stay under Section 362(a) of the
Bankruptcy Code, would become due) and liabilities owing by the Borrower under
any Guaranteed Hedging Agreement, whether now in existence or hereafter arising,
and the due performance and compliance by the Borrower with all of the terms,
conditions and agreements contained in the Guaranteed Hedging Agreements (all
such obligations and liabilities being herein collectively called the "Other
Obligations" and, together with the Credit Agreement Obligations, are herein
collectively called the "Guaranteed Obligations"). Each Guarantor understands,
agrees and confirms that the Creditors may enforce this Guaranty up to the full
amount of the Guaranteed Obligations against each Guarantor without proceeding
against any other Guarantor, against any Borrower, against any security for the
Guaranteed Obligations, or under any other guaranty covering all or a portion of
the Guaranteed Obligations.

          2. Additionally, each Guarantor, jointly and severally, absolutely,
unconditionally and irrevocably, guarantees the payment of any and all
Guaranteed Obligations to the Creditors whether or not due or payable by the
Borrowers upon the occurrence in respect of any of the Borrowers of any of the
events specified in Section 12.05 of the Credit Agreement, and absolutely,
unconditionally and irrevocably, jointly and severally, promises to pay such
Guaranteed Obligations to the Creditors, or order, on demand, in lawful money of
the United States or in such other currency as may be required by the Credit
Agreement. This Guaranty shall constitute a guaranty of payment, and not of
collection.

          3. The liability of each Guarantor hereunder is exclusive and
independent of any security for or other guaranty of the indebtedness of the
Borrowers, whether executed by such Guarantor, any other Guarantor, any other
guarantor or any other party, and the liability of each Guarantor hereunder
shall not be affected or impaired by any circumstance or occurrence whatsoever,
including, without limitation: (a) any direction as to application of payment by
the Borrowers or by any other party, (b) any other continuing or other guaranty,
undertaking or maximum liability of a guarantor or of any other party as to the
indebtedness of the Borrowers,

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(c) any payment on or in reduction of any such other guaranty or undertaking
except to the extent that any such payment or reduction results in the actual
permanent reduction of the Guaranteed Obligations, (d) any dissolution,
termination or change in personnel by any Borrower, (e) any payment made to any
Creditor on the indebtedness which any Creditor repays any Borrower pursuant to
court order in any bankruptcy, reorganization, arrangement, moratorium or other
debtor relief proceeding, or otherwise, and each Guarantor waives any right to
the deferral or modification of its obligations hereunder by reason of any such
proceeding, (f) any action or inaction by the Creditors as contemplated in
Section 6 hereof, or (g) any invalidity, irregularity or unenforceability of all
or part of the Guaranteed Obligations or of any security therefor.

          4. The obligations of each Guarantor hereunder are independent of the
obligations of any other Guarantor, any other guarantor or any Borrower, and a
separate action or actions may be brought and prosecuted against each Guarantor
whether or not action is brought against any other Guarantor, any other
guarantor or any Borrower and whether or not any other Guarantor, any other
guarantor or any Borrower be joined in any such action or actions. Each
Guarantor waives, to the fullest extent permitted by law, the benefit of any
statute of limitations affecting its liability hereunder or the enforcement
thereof. Any payment by a Borrower or other circumstance which operates to toll
any statute of limitations as to such Borrower shall operate to toll the statute
of limitations as to each Guarantor.

          5. Each Guarantor hereby waives notice of acceptance of this Guaranty
and notice of any liability to which it may apply, and waives promptness,
diligence, presentment, demand of payment, protest, notice of dishonor or
nonpayment of any such liabilities, suit or taking of other action by the
Administrative Agent or any other Creditor against, and any other notice to, any
party liable thereon (including such Guarantor, any other guarantor or any
Borrower).

          6. Any Creditor may at any time and from time to time without the
consent of, or notice to, any Guarantor, without incurring responsibility to
such Guarantor, and without impairing or releasing the obligations of such
Guarantor hereunder, upon or without any terms or conditions and in whole or in
part:

          (a) change the manner, place or terms of payment of, and/or change or
extend the time of payment of, renew or alter, any of the Guaranteed Obligations
(including any increase or decrease in the rate of interest thereon), any
security therefor, or any liability incurred directly or indirectly in respect
thereof, and the guaranty herein made shall apply to the Guaranteed Obligations
as so changed, extended, renewed or altered;

          (b) take and hold security for the payment of the Guaranteed
Obligations and sell, exchange, release, surrender, impair, realize upon or
otherwise deal with in any manner and in any order any property by whomsoever at
any time pledged or mortgaged to secure, or howsoever securing, the Guaranteed
Obligations or any liabilities (including any of those hereunder) incurred
directly or indirectly in respect thereof or hereof, and/or any offset
thereagainst, and/or release any Person liable for all or any portion of the
Guaranteed Obligations;

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          (c) act or fail to act in any manner referred to in this Guaranty
which may deprive such Guarantor of its right to subrogation against the
Borrowers to recover full indemnity for any payments made pursuant to this
Guaranty; and/or

          (d) take any other action which would, under otherwise applicable
principles of common law, give rise to a legal or equitable discharge of such
Guarantor from it liabilities under this Guaranty.

          7. No invalidity, irregularity or unenforceability of all or any part
of the Guaranteed Obligations or of any security therefor shall affect, impair
or be a defense to this Guaranty, and this Guaranty shall be primary, absolute,
irrevocable and unconditional notwithstanding the occurrence of any event or the
existence of any other circumstances which might constitute a legal or equitable
discharge of a surety or guarantor except indefeasible payment in full of the
Guaranteed Obligations.

          8. This Guaranty is a continuing one and all liabilities to which it
applies or may apply under the terms hereof shall be conclusively presumed to
have been created in reliance hereon. No failure or delay on the part of any
Creditor in exercising any right, power or privilege hereunder shall operate as
a waiver thereof; nor shall any single or partial exercise of any right, power
or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies herein
expressly specified are cumulative and not exclusive of any rights or remedies
which any Creditor would otherwise have. No notice to or demand on any Guarantor
in any case shall entitle such Guarantor to any other or further notice or
demand in similar or other circumstances or constitute a waiver of the rights of
any Creditor to any other or further action in any circumstances without notice
or demand. It is not necessary for any Creditor to inquire into the capacity or
powers of the Borrowers or the officers, directors, partners or agents acting or
purporting to act on its behalf, and any indebtedness made or created in
reliance upon the professed exercise of such powers shall be guaranteed
hereunder.

          9. Any indebtedness of any Borrower now or hereafter held by any
Guarantor is hereby subordinated to the indebtedness of such Borrower to the
Creditors; and such indebtedness of such Borrower to any Guarantor, if the
Administrative Agent, after an Event of Default has occurred, so requests at a
time when any Guaranteed Obligations are outstanding, shall be collected,
enforced and received by such Guarantor as trustee for the Creditors and be paid
over to the Creditors on account of the indebtedness of such Borrower to the
Creditors, but without affecting or impairing in any manner the liability of
such Guarantor under the other provisions of this Guaranty. Prior to the
transfer by any Guarantor of any note or negotiable instrument evidencing any
indebtedness of a Borrower to such Guarantor, such Guarantor shall mark such
note or negotiable instrument with a legend that the same is subject to this
subordination. Without limiting the generality of the foregoing, each Guarantor
hereby agrees with the Creditors that it will not exercise any right of
subrogation which it may at any time otherwise have as a result of this Guaranty
(whether contractual, under Section 509 of the Bankruptcy Code or otherwise)
until all Guaranteed Obligations have been paid in full in cash (it being
understood that each Guarantor is not waiving any right of subrogation that it
may otherwise have but is only waiving the exercise thereof as provided above).

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          10. (a) Each Guarantor waives any right (except as shall be required
by applicable statute and cannot be waived) to require the Creditors to: (i)
proceed against the Borrowers, any other Guarantor, any other guarantor of the
Guaranteed Obligations or any other party; (ii) proceed against or exhaust any
security held from the Borrowers, any other Guarantor, any other guarantor of
the Guaranteed Obligations or any other party; or (iii) pursue any other remedy
in the Creditors' power whatsoever. Each Guarantor waives any defense based on
or arising out of any defense of the Borrower, such Guarantor, any other
Guarantor, any other guarantor of the Guaranteed Obligations or any other party
other than payment in full of the Guaranteed Obligations, including, without
limitation, any defense based on or arising out of the disability of the
Borrowers, such Guarantor, any other Guarantor, any other guarantor of the
Guaranteed Obligations or any other party, or the unenforceability of the
Guaranteed Obligations or any part thereof from any cause, or the cessation from
any cause of the liability of the Borrowers other than payment in full of the
Guaranteed Obligations. The Creditors may, at their election, foreclose on any
security held by the Administrative Agent, the Collateral Agent or the other
Creditors by one or more judicial or nonjudicial sales or exercise any other
right or remedy the Creditors may have against the Borrowers or any other party,
or any security, without affecting or impairing in any way the liability of any
Guarantor hereunder except to the extent the Guaranteed Obligations have been
paid in full. Each Guarantor waives any defense arising out of any such election
by the Creditors, even though such election operates to impair or extinguish any
right of reimbursement or subrogation or other right or remedy of such Guarantor
against the Borrowers or any other party or any security.

          (b) Each Guarantor waives all presentments, demands for performance,
protests and notices, including, without limitation, notices of nonperformance,
notices of protest, notices of dishonor, notices of acceptance of this Guaranty,
and notices of the existence, creation or incurring of new or additional
indebtedness. Each Guarantor assumes all responsibility for being and keeping
itself informed of each Borrower's financial condition and assets, and of all
other circumstances bearing upon the risk of nonpayment of the Guaranteed
Obligations and the nature, scope and extent of the risks which such Guarantor
assumes and incurs hereunder, and agrees that the Creditors shall have no duty
to advise any Guarantor of information known to any of them regarding such
circumstances or risks.

          11. In order to induce the Lender Creditors to enter into the Credit
Agreement and to make the Loans pursuant to the Credit Agreement, and to induce
the Other Creditors to enter into the Guaranteed Hedging Agreements, each
Guarantor represents, warrants and covenants that:

          (a) Status. Such Guarantor (i) is a duly organized and validly
existing corporation, partnership, trust or limited liability company, as the
case may be, in good standing (if applicable) under the laws of the jurisdiction
of its organization, (ii) has the corporate, partnership, trust or limited
liability company power and authority, as the case may be, to own or lease its
property and assets and to transact the business in which it is engaged and
presently proposes to engage and (iii) is duly qualified and is authorized to do
business and is in good standing in each jurisdiction where the conduct of its
business requires such qualification, except for failures to be so qualified
which, individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect.

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          (b) Power and Authority. Such Guarantor has the corporate,
partnership, trust or limited liability company power and authority, as the case
may be, to execute, deliver and perform the terms and provisions of this
Guaranty and each other Credit Document to which it is a party and has taken all
necessary corporate, partnership, trust or limited liability company action, as
the case may be, to authorize the execution, delivery and performance by it of
each such Credit Document. Such Guarantor has duly executed and delivered this
Guaranty and each other Credit Document to which it is a party and each such
Credit Document constitutes the legal, valid and binding obligation of such
Guarantor enforceable in accordance with its terms, except to the extent that
the enforceability hereof and thereof may be limited by applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or other similar
laws affecting creditors' rights generally and by equitable principles
(regardless of whether enforcement is sought in equity or at law).

          (c) No Violation. Neither the execution, delivery or performance by
such Guarantor of this Guaranty or any other Credit Document to which it is a
party, nor compliance by it with the terms and provisions hereof and thereof (i)
will contravene any applicable provision of any law, statute, rule or
regulation, or any order, writ, injunction or decree of any court or
governmental instrumentality, (ii) will conflict or be inconsistent with or
result in any breach of any of the terms, covenants, conditions or provisions
of, or constitute a default under, or result in the creation or imposition of
(or the obligation to create or impose) any Lien (except pursuant to the Pledge
and Security Agreement) upon any of the property or assets of such Guarantor or
any of its Subsidiaries pursuant to the terms of, any indenture, mortgage, deed
of trust, credit agreement or loan agreement or any other material agreement,
contract or instrument to which such Guarantor or any of its Subsidiaries is a
party or by which it or any of its property or assets is bound or to which it
may be subject except for violations and defaults that may arise under contracts
of such Guarantor otherwise permitted under the Credit Agreement as a result of
the sale of, or foreclosure of a lien upon, the Securities (as defined in the
Pledge and Security Agreement) of Subsidiaries pledged under the Pledge and
Security Agreement to the extent that the prior consent of other parties to such
contracts have not been obtained or other actions specified in such contracts
have not been taken in connection with any such sale or foreclosure, or (iii)
will violate any provision of the certificate of incorporation, certificate of
partnership, partnership agreement, limited liability company agreement or
by-laws of such Guarantor or any of its Subsidiaries.

          (d) Governmental Approvals. No order, consent, approval, license,
authorization or validation of, or filing, recording or registration with
(except as have been obtained or made), or exemption by, any governmental or
public body or authority, or any subdivision thereof, is required to authorize,
or is required in connection with, (i) the execution, delivery and performance
of this Guaranty or any other Credit Document to which such Guarantor is a party
or (ii) the legality, validity, binding effect or enforceability of this
Guaranty or any other Credit Document to which such Guarantor is a party.

          (e) Litigation. There are no actions, suits or proceedings pending or,
to the best knowledge of such Guarantor, threatened (i) which purport to affect
the legality, validity or enforceability of this Guaranty or (ii) that could
reasonably be expected to have a Material Adverse Effect.

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          12. Each Guarantor covenants and agrees that on and after the
Effective Date and until the Total Revolving Loan Commitment has terminated and
when no Note remains outstanding and all Guaranteed Obligations have been paid
in full, such Guarantor shall take, or will refrain from taking, as the case may
be, all actions that are necessary to be taken or not taken so that no violation
of any provision, covenant or agreement contained in Section 10 or 11 of the
Credit Agreement occurs, and so that no Default or Event of Default is caused by
the actions of such Guarantor or any of its Subsidiaries.

          13. The Guarantors hereby jointly and severally agree to pay all
out-of-pocket costs and expenses of each Creditor in connection with the
enforcement of this Guaranty (including reasonable legal fees and expenses) and
the out-of-pocket costs and expenses of the Administrative Agent in connection
with any amendment, waiver or consent relating hereto (including reasonable
legal fees and expenses).

          14. This Guaranty shall be binding upon each Guarantor and its
successors and assigns and shall inure to the benefit of the Creditors and their
successors and assigns; provided, however, that, except as otherwise permitted
under the Credit Agreement, no Guarantor may assign or transfer any of its
rights or obligations hereunder without the prior written consent of the
Required Lenders (and any such attempted assignment or transfer without such
consent shall be null and void).

          15. Neither this Guaranty nor any provision hereof may be changed,
waived, discharged or terminated except with the written consent of each
Guarantor directly affected thereby and with the written consent of (i) the
Required Lenders, or, to the extent required by Section 14.11 of the Credit
Agreement, each of the Lenders under the Credit Agreement, as the case may be,
so long as any Credit Agreement Obligations remain outstanding and (ii) in any
situation not covered by preceding clause (i), to the extent expressly required
under any Guaranteed Hedging Agreement, the holders of a majority of the
outstanding principal amount of the Other Obligations; provided, that any
change, waiver, modification or variance affecting the rights and benefits of a
single Class (as defined below) of Creditors (and not all Creditors in a like or
similar manner) shall require the written consent of the Requisite Creditors (as
defined below) of such Class of Creditors (it being understood that the addition
or release of any Guarantor hereunder shall not constitute a change, waiver,
discharge or termination affecting any Guarantor other than the Guarantor so
added or released). For the purpose of this Guaranty, the term "Class" shall
mean each class of Creditors, i.e., whether (x) the Lender Creditors as holders
of the Credit Agreement Obligations or (y) the Other Creditors as the holders of
the Other Obligations. For the purpose of this Guaranty, the term "Requisite
Creditors" of any Class shall mean (x) with respect to the Credit Agreement
Obligations, the Required Lenders, or, to the extent required by Section 14.11
of the Credit Agreement, each of the Lenders, and (y) with respect to the Other
Obligations, the holders of at least a majority of all obligations outstanding
from time to time under the respective Guaranteed Hedging Agreements.

          16. Each Guarantor acknowledges that an executed (or conformed) copy
of each of the Credit Documents has been made available to such Guarantor and
such Guarantor is familiar with the contents thereof.

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          17. In addition to any rights now or hereafter granted under
applicable law (including, without limitation, Section 151 of the New York
Debtor and Creditor Law) and not by way of limitation of any such rights, upon
the occurrence and during the continuance of an Event of Default (such term to
mean and include any "Event of Default" as defined in the Credit Agreement or
any payment default under any Guaranteed Hedging Agreement continuing after any
applicable grace period), each Creditor is hereby authorized at any time or from
time to time, without notice to any Guarantor or to any other Person, any such
notice being expressly waived, to set off and to appropriate and apply any and
all deposits (general or special) and any other indebtedness at any time held or
owing by such Creditor to or for the credit or the account of such Guarantor,
against and on account of the obligations and liabilities of such Guarantor to
such Creditor under this Guaranty, irrespective of whether or not such Creditor
shall have made any demand hereunder and although said obligations, liabilities,
deposits or claims, or any of them, shall be contingent or unmatured.

          18. All notices, requests, demands or other communications pursuant
hereto shall be deemed to have been duly given or made when delivered to the
Person to which such notice, request, demand or other communication is required
or permitted to be given or made under this Guaranty, addressed to such party at
(i) in the case of any Lender Creditor, as provided in the Credit Agreement,
(ii) in the case of any Guarantor, at the address of the U.S. Borrower specified
in the Credit Agreement, and (iii) in the case of any Other Creditor, at such
address as such Other Creditor shall have specified in writing to the
Guarantors; or in any case at such other address as any of the Persons listed
above may hereafter notify the others in writing.

          19. If claim is ever made upon any Creditor for repayment or recovery
of any amount or amounts received in payment or on account of any of the
Guaranteed Obligations and any of the aforesaid payees repays all or part of
said amount by reason of (i) any judgment, decree or order of any court or
administrative body having jurisdiction over such payee or any of its property
or (ii) any settlement or compromise of any such claim effected by such payee
with any such claimant (including a Borrower), then and in such event each
Guarantor agrees that any such judgment, decree, order, settlement or compromise
shall be binding upon such Guarantor, notwithstanding any revocation hereof or
other instrument evidencing any liability of a Borrower, and such Guarantor
shall be and remain liable to the aforesaid payees hereunder for the amount so
repaid or recovered to the same extent as if such amount had never originally
been received by any such payee.

          20. (A) This Guaranty shall be binding upon the successors and assigns
of each Guarantor (although no Guarantor may assign its rights and obligations
hereunder except in accordance with Section 14 hereof) and shall inure to the
benefit of and be enforceable by the Administrative Agent and the other
Creditors and their respective successors and assigns. THIS GUARANTY AND THE
RIGHTS AND OBLIGATIONS OF THE CREDITORS AND OF THE UNDERSIGNED HEREUNDER SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW
YORK. Any legal action or proceeding with respect to this Guaranty or any other
Credit Document to which any Guarantor is a party may be brought in the courts
of the State of New York or of the United States of America for the Southern
District of New York, in each case which are located in the City of New York,
and, by execution and delivery of this Guaranty, each Guarantor hereby
irrevocably accepts for itself and in respect of its property, generally and
unconditionally, the

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jurisdiction of the aforesaid courts. Each Guarantor hereby further irrevocably
waives any claim that any such courts lack jurisdiction over such Guarantor, and
agrees not to plead or claim in any legal action or proceeding with respect to
this Guaranty or any other Credit Document to which such Guarantor is a party
brought in any of the aforesaid courts that any such court lacks jurisdiction
over such Guarantor. Each Guarantor further irrevocably consents to the service
of process out of any of the aforementioned courts in any such action or
proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to each Guarantor at its address set forth opposite its
signature below, such service to become effective 30 days after such mailing.
Each Guarantor hereby irrevocably waives any objection to such service of
process and further irrevocably waives and agrees not to plead or claim in any
action or proceeding commenced hereunder or under any other Credit Document to
which such Guarantor is a party that service of process was in any way invalid
or ineffective. Nothing herein shall affect the right of any of the Creditors to
serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against each Guarantor in any other
jurisdiction.

          (A) Each Guarantor hereby irrevocably waives any objection which it
may now or hereafter have to the laying of venue of any of the aforesaid actions
or proceedings arising out of or in connection with this Guaranty or any other
Credit Document to which such Guarantor is a party brought in the courts
referred to in clause (a) above and hereby further irrevocably waives and agrees
not to plead or claim in any such court that such action or proceeding brought
in any such court has been brought in an inconvenient forum.

          (B) WAIVER OF TRIAL BY JURY. EACH GUARANTOR AND EACH CREDITOR (BY ITS
ACCEPTANCE OF THE BENEFITS OF THIS GUARANTY) HEREBY IRREVOCABLY WAIVES ALL
RIGHTS TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS GUARANTY, THE OTHER CREDIT DOCUMENTS TO WHICH SUCH
GUARANTOR IS A PARTY OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

          21. In the event that all of the capital stock of one or more
Guarantors is sold or otherwise disposed of or liquidated in compliance with the
requirements of the Credit Agreement (or such sale or other disposition has been
approved in writing by the Required Lenders (or, to the extent required by the
Credit Agreement, each of the Lenders)) and the proceeds of such sale,
disposition or liquidation are applied in accordance with (and to the extent
required by) the provisions of the Credit Agreement, to the extent applicable,
or in the circumstances set forth in Section 10.15(a)(2) of the Credit Agreement
with respect to a Guarantor or in circumstances where the Collateral is released
pursuant to Section 14.20 of the Credit Agreement, in any such case such
Guarantor shall be released from this Guaranty and this Guaranty shall, as to
each such Guarantor or Guarantors, terminate, and have no further force or
effect (it being understood and agreed that the sale or other disposition of one
or more Persons that own, directly or indirectly, all of the capital stock,
partnership interests or limited liability company interests of any Guarantor
shall be deemed to be a sale of such Guarantor for the purposes of this Section
21) and the Administrative Agent, at the request and expense of the respective
Guarantor, will promptly execute and deliver to such Guarantor a proper
instrument or instruments acknowledging such release.

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          22. Each Guarantor hereby confirms that it is its intention that this
Guaranty not constitute a fraudulent transfer or conveyance for purposes of any
bankruptcy, insolvency or similar law, the Uniform Fraudulent Conveyance Act or
any similar Federal, state or foreign law. To effectuate the foregoing
intention, if enforcement of the liability of any Guarantor under this Guaranty
for the full amount of the Guaranteed Obligations would be an unlawful or
voidable transfer under any applicable fraudulent conveyance or fraudulent
transfer law or any comparable law, then the liability of such Guarantor
hereunder shall be reduced to the maximum amount for which such liability may
then be enforced without giving rise to an unlawful or voidable transfer under
any such law.

          23. To the extent that any Guarantor shall be required hereunder to
pay a portion of the Guaranteed Obligations which shall exceed the greater of
(i) the amount of the economic benefit actually received by such Guarantor from
the incurrence of the Loans under the Credit Agreement and the entering into of
Guaranteed Hedging Agreements and (ii) the amount which such Guarantor would
otherwise have paid if such Guarantor had paid the aggregate amount of the
Guaranteed Obligations (excluding the amount thereof repaid by the Borrower and
the other Guarantors) in the same proportion as such Guarantor's net worth at
the date enforcement hereunder is sought bears to the aggregate net worth of all
the Guarantors at the date enforcement hereunder is sought (the "Contribution
Percentage"), then such Guarantor shall have a right of contribution against
each other Guarantor who has made payments in respect of the Guaranteed
Obligations to and including the date enforcement hereunder is sought in an
aggregate amount less than such other Guarantor's Contribution Percentage of the
aggregate payments made to and including the date enforcement hereunder is
sought by all Guarantors in respect of the Guaranteed Obligations; provided,
that no Guarantor may take any action to enforce such right until the Guaranteed
Obligations have been indefeasibly paid in full and the Total Revolving Loan
Commitment has been terminated, it being expressly recognized and agreed by all
parties hereto that any Guarantor's right of contribution arising pursuant to
this Section 23 against any other Guarantor shall be expressly junior and
subordinate to such other Guarantor's obligations and liabilities in respect of
the Guaranteed Obligations and any other obligations owing under this Guaranty.
All parties hereto recognize and agree that, except for any right of
contribution arising pursuant to this Section 23, each Guarantor who makes any
payment in respect of the Guaranteed Obligations shall have no right of
contribution or subrogation against any other Guarantor in respect of such
payment. Each of the Guarantors recognizes and acknowledges that the rights to
contribution arising hereunder shall constitute an asset in favor of the party
entitled to such contribution. In this connection, each Guarantor has the right
to waive its contribution right against any Guarantor to the extent that after
giving effect to such waiver such Guarantor would remain solvent, in the
determination of the Required Lenders.

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

          25. All payments made by any Guarantor hereunder will be made without
setoff, counterclaim or other defense.

                                      -10-

<PAGE>

         26. It is understood and agreed that any Subsidiary of the U.S.
Borrower that is required to execute a counterpart of this Guaranty pursuant to
the Credit Agreement shall automatically become a Guarantor hereunder by
executing a counterpart hereof and delivering the same to the Administrative
Agent or by executing and delivering a supplement hereto in the form of Annex 1
hereto.

         27. Any provision of this Guaranty held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such invalidity, illegality or unenforceability without
affecting the validity, legality and enforceability of the remaining provisions
hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.

                                      * * *

                                      -11-

<PAGE>

                  IN WITNESS  WHEREOF, each Guarantor has caused this Guaranty
to be executed and delivered as of the date first above written.

                                      THE GUARANTORS LISTED ON SCHEDULE 1 HERETO

                                               /s/ John A. Carnella
                                      ------------------------------------------
                                      By:      John A. Carnella
                                      Title:   Vice President

                     Signature Page to Subsidiaries Guaranty

<PAGE>

Accepted and Agreed to:

DEUTSCHE BANK TRUST COMPANY AMERICAS,
as Collateral Agent and Pledgee

By:  /s/ Linda Wang
   ---------------------------------
    Name: Linda Wang
    Title: Vice President

                     Signature Page to Subsidiaries Guaranty

<PAGE>

                                            SCHEDULE 1 TO SUBSIDIARIES GUARANTY

GUARANTORS:

AIRPORT HOTELS LLC

AMELIATEL
By:      HMC AMELIA I LLC and HMC AMELIA II LLC
         its General Partners

CHESAPEAKE FINANCIAL SERVICES LLC

CHESAPEAKE HOTEL LIMITED PARTNERSHIP
By:      HMC PLP LLC
         its General Partner

CITY CENTER HOTEL LIMITED PARTNERSHIP
By:      HOST LA JOLLA LLC
         its General Partner

CITY CENTER INTERSTATE PARTNERSHIP LLC

DURBIN LLC

FARRELL'S ICE CREAM PARLOUR RESTAURANTS LLC

FERNWOOD HOTEL LLC

HMC AMELIA I LLC

HMC AMELIA II LLC

HMC ATLANTA LLC

HMC BCR HOLDINGS LLC

HMC BURLINGAME LLC

HMC CALIFORNIA LEASING LLC

HMC CAPITAL LLC

HMC CAPITAL RESOURCES LLC

HMC CHICAGO LLC

<PAGE>

HMC DESERT LLC

HMC DIVERSIFIED LLC

HMC EAST SIDE II LLC

HMC GATEWAY LLC

HMC GEORGIA LLC

HMC GRAND LLC

HMC HANOVER LLC

HMC HARTFORD LLC

HMC HEADHOUSE FUNDING LLC

HMC HOST RESTAURANTS LLC

HMC HOTEL DEVELOPMENT LLC

HMC HPP LLC

HMC HT LLC

HMC IHP HOLDINGS LLC

HMC JWDC GP LLC

HMC JWDC LLC

HMC MANHATTAN BEACH LLC

HMC MARKET STREET LLC

HMC MEXPARK LLC

HMC NGL LLC

HMC OLS I L.P.,
By:      HMC OLS I LLC
         its General Partner

HMC OLS I LLC

<PAGE>

HMC OLS II L.P.,
By:  HMC OLS I LLC
     its General Partner

HMC OP BN LLC

HMC PACIFIC GATEWAY LLC

HMC PALM DESERT LLC

HMC PARK RIDGE LLC

HMC PARTNERSHIP HOLDINGS LLC

HMC PLP LLC

HMC POLANCO LLC

HMC POTOMAC LLC

HMC PROPERTIES I LLC

HMC PROPERTIES II LLC

HMC PROPERTY LEASING LLC

HMC RETIREMENT PROPERTIES, L.P.
By:  DURBIN LLC
     its General Partner

HMC SBM TWO LLC

HMC SEATTLE LLC

HMC SFO LLC

HMC SUITES LIMITED PARTNERSHIP,
By:  HMC SUITES LLC
     its General Partner

HMC SUITES LLC

HMC SWISS HOLDINGS LLC

HMC WATERFORD LLC

<PAGE>

HMC/INTERSTATE MANHATTAN BEACH, L.P.
By:  HMC MANHATTAN BEACH LLC
     its General Partner

HMC/INTERSTATE ONTARIO, L.P.
By:  HMC PARTNERSHIP HOLDINGS LLC
     its General Partner

HMC/INTERSTATE WATERFORD, L.P.
By:  HMC WATERFORD LLC
     its General Partner

HMH GENERAL PARTNER HOLDINGS LLC

HMH MARINA LLC

HMH NORFOLK LLC

HMH NORFOLK, L.P.
By:  HMH NORFOLK LLC
     its General Partner

HMH PENTAGON LLC

HMH RESTAURANTS LLC

HMH RIVERS LLC

HMH RIVERS, L.P.
By:  HMH RIVERS LLC
     its General Partner

HMH WTC LLC

HMP CAPITAL VENTURES LLC

HMP FINANCIAL SERVICES LLC

HMT LESSEE PARENT LLC

HOST/INTERSTATE PARTNERSHIP, L.P.
By:  CITY CENTER INTERSTATE PARTNERSHIP LLC
     its General Partner

HOST LA JOLLA LLC

<PAGE>

HOST OF BOSTON, LTD.
By:  AIRPORT HOTELS LLC
     its General Partner

HOST OF HOUSTON 1979,
By:  AIRPORT HOTELS LLC and HOST OF HOUSTON, LTD. (By: AIRPORT HOTELS LLC, its
General Partner),
     its General Partners

HOST OF HOUSTON, LTD.
By:  AIRPORT HOTELS LLC
     its General Partner

HOST PARK RIDGE LLC

IVY STREET LLC

IVY STREET HOPEWELL LLC

MARKET STREET HOST LLC

MDSM FINANCE LLC

MFR OF ILLINOIS LLC

MFR OF VERMONT LLC

MFR OF WISCONSIN LLC

NEW MARKET STREET LP
By:  HMC MARKET STREET LLC
     its General Partner

PHILADELPHIA AIRPORT HOTEL LLC

PM FINANCIAL LLC

PM FINANCIAL LP
By:  PM FINANCIAL LLC
     its General Partner

PRM LLC

ROCKLEDGE HOTEL LLC

<PAGE>

S.D. HOTELS LLC

SANTA CLARA HMC LLC

TIMES SQUARE GP LLC

TIMES SQUARE LLC

WELLSFORD-PARK RIDGE HMC HOTEL LIMITED PARTNERSHIP,
By:  HOST PARK RIDGE LLC
     its General Partner

YBG ASSOCIATES LLC

<PAGE>

                                                ANNEX 1 TO SUBSIDIARIES GUARANTY

                    FORM OF SUBSIDIARIES GUARANTY SUPPLEMENT

          SUPPLEMENT NO. dated as of [___________] (this "Supplement"), to the
Subsidiaries Guaranty, dated as of ____________, ____ (the "Guaranty"), made by
the Guarantors party thereto (immediately before giving effect to this
Supplement) and accepted by Deutsche Bank Trust Company Americas as Collateral
Agent and Pledgee (each capitalized term used but not defined having the meaning
given it in the Guaranty) for the benefit of the Creditors.

          A. Reference is made to the Credit Agreement, dated as of June 6, 2002
(as amended or modified from time to time, the "Credit Agreement"), among Host
Marriott, L.P. (the "U.S. Borrower"), each Canadian Revolving Loan Borrower from
time to time party thereto, the lenders from time to time party thereto (the
"Lenders"), and Deutsche Bank Trust Company Americas, as Administrative Agent.

          B. The Guarantors have entered into the Guaranty in order to induce
the Lenders to make Loans and to issue, and participate in, Letters of Credit
pursuant to, and upon the terms and subject to the conditions specified in, the
Credit Agreement. Pursuant to Section 10.15 of the Credit Agreement, certain
Subsidiaries of the U.S. Borrower may, after the date of the Guaranty, be
required to enter into the Guaranty as a Guarantor. Section 26 of the Guaranty
provides that such additional Subsidiaries may become Guarantors under the
Guaranty by execution and delivery of an instrument in the form of this
Supplement. The undersigned (the "New Subsidiary Guarantor") is a Subsidiary of
the U.S. Borrower and is executing this Supplement in accordance with the
requirements of the Credit Agreement to become a Guarantor under the Guaranty in
order to induce the Lenders to make additional Loans and to issue, and
participate in, additional Letters of Credit and as consideration for Loans
previously made and Letters of Credit previously issued.

          Accordingly, the Collateral Agent and the New Subsidiary Guarantor
agree as follows:

          SECTION 1. In accordance with Section 26 of the Guaranty, the New
Subsidiary Guarantor by its signature below becomes a Guarantor under the
Guaranty with the same force and effect as if originally named therein as a
Guarantor and the New Subsidiary Guarantor hereby agrees to all the terms and
provisions of the Guaranty applicable to it as a Guarantor thereunder. Each
reference to a "Guarantor" in the Guaranty shall be deemed to include the New
Subsidiary Guarantor. The Guaranty is hereby incorporated herein by reference.

          SECTION 2. The New Subsidiary Guarantor represents and warrants to the
Creditors that (i) this Supplement has been duly authorized, executed and
delivered by it and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms, subject to the effects of
applicable bankruptcy, insolvency or similar laws effecting creditors' rights
generally and equitable principles of general applicability and (ii) the

<PAGE>

representations and warranties contained in Section 11 of the Guaranty are true
and correct as of the date hereof as to the New Subsidiary Guarantor.

          SECTION 3. This Supplement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute but one instrument. This Supplement shall
become effective when the Administrative Agent shall have received counterparts
of this Supplement that, when taken together, bear the signatures of the New
Subsidiary Guarantor and the Administrative Agent.

          SECTION 4. Except as expressly supplemented hereby, the Guaranty shall
remain in full force and effect.

          SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          SECTION 6. In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect,
neither party hereto shall be required to comply with such provision for so long
as such provision is held to be invalid, illegal or unenforceable, but the
validity, legality and enforceability of the remaining provisions contained
herein and in the Guaranty shall not in any way be affected or impaired. The
parties hereto shall endeavor in good-faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect of
which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

          SECTION 7. All communications and notices hereunder shall be in
writing and given as provided in the Credit Agreement. All communications and
notices hereunder to the New Subsidiary Guarantor shall be given to it at the
address set forth under its signature, with a copy to the U.S. Borrower.

                                       -2-

<PAGE>

          IN WITNESS WHEREOF, the New Subsidiary Guarantor and the Collateral
Agent have duly executed this Supplement to the Guaranty as of the day and year
first above written.

Address:

                                       [NAME OF NEW GUARANTOR],
                                          as Subsidiary Guarantor

                                       By ________________________________
                                          Name:
                                          Title:
                                          Address: _______________________
                                                   _______________________

                                       DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                          as Collateral Agent

                                       By ________________________________
                                          Name:
                                          Title:

                                       -3-<PAGE>

                                  Exhibit 10.1

                        SECOND AMENDMENT AND RESTATEMENT
                               OF CREDIT AGREEMENT

                                      among

                 PRENTISS PROPERTIES ACQUISITION PARTNERS, L.P.,
                                   as Borrower

                                  BANK ONE, NA,
                             as Administrative Agent

                             BANK OF AMERICA, N.A.,
                              as Syndication Agent

                           DRESDNER BANK AG, NEW YORK
                           AND GRAND CAYMAN BRANCHES,

               COMMERZBANK AG, NEW YORK AND GRAND CAYMAN BRANCHES,
                                       and

                       SOCIETE GENERALE, SOUTHWEST AGENCY,
                             as Documentation Agents

                                       and

                            THE LENDERS NAMED HEREIN,
                                   as Lenders

                                  $300,000,000

                                      As of
                                  May 22, 2002

                         BANC ONE CAPITAL MARKETS, INC.
                                       and
                         BANC OF AMERICA SECURITIES LLC,
                  as Co-Lead Arrangers and Joint Book Managers

<PAGE>

              SECOND AMENDMENT AND RESTATEMENT OF CREDIT AGREEMENT

     THIS SECOND AMENDMENT AND RESTATEMENT OF CREDIT AGREEMENT (this
"Amendment") is entered into to be effective as of May 22, 2002 between PRENTISS
PROPERTIES ACQUISITION PARTNERS, L.P., a Delaware limited partnership
("Borrower"), each of the banks or other lending institutions which is a
signatory to this Amendment (collectively, "Lenders"), BANK ONE, NA, a national
banking association, as Administrative Agent (in such capacity, together with
its successors and assigns, "Administrative Agent"), and BANK OF AMERICA, N.A.,
as Syndication Agent (in such capacity, together with its successors and
assigns, "Syndication Agent").

                                 R E C I T A L S
                                 - - - - - - - -

     A.  Reference is hereby made to that certain Credit Agreement dated as of
May 23, 2000, executed by Borrower, Lenders, Administrative Agent, the
Syndication Agent defined therein, and the Documentation Agent defined therein,
as amended by that certain First Amendment of Credit Agreement effective as of
December 29, 2000 (as renewed, extended, modified, and amended from time to
time, the "Existing Agreement").

     B.  Capitalized terms used herein shall, unless otherwise indicated, have
the respective meanings set forth in the Credit Agreement.

     C.  Borrower, Administrative Agent, and Lenders desire to modify certain
provisions contained in the Credit Agreement, subject to the terms and
conditions set forth herein.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     I.  Amendment and Restatement of Existing Agreement. All of the terms,
provisions, and conditions of the Existing Agreement are incorporated herein by
reference and are deemed restated in their entirety except as amended by the
provisions set forth in this Amendment. The amendment and restatement of the
Existing Agreement hereunder is not intended by the parties to constitute either
a novation or a discharge or satisfaction of the indebtedness, obligations, and
Liens under the Existing Agreement or other Loan Documents, which indebtedness,
obligations, and Liens under the Existing Agreement and other Loan Documents
shall remain outstanding hereunder on the terms and conditions of this
Agreement.

     (a) The preamble on page one is hereby deleted in its entirety and replaced
with the following:

         THIS CREDIT AGREEMENT is dated as of May 22, 2002 (the "Closing
     Date"), among PRENTISS PROPERTIES ACQUISITION PARTNERS, L.P., a Delaware
     limited partnership ("Borrower"), each of the lenders that are a signatory
     hereto (each such lender, together with each lender that becomes a
     signatory hereto as provided in Sections 2.5 and 13.11(b), being
     individually, together with its successors and assigns, a "Lender" and
     collectively, the "Lenders"), BANK ONE, NA, a national banking association,
     as Administrative Agent (in such capacity, together with its successors and
     assigns, "Administrative Agent"), and BANK OF AMERICA, N.A., as Syndication
     Agent (in such capacity, together with its successors and assigns,
     "Syndication Agent").

     (b) Section 1.1 of the Credit Agreement is hereby amended to add the
     following definitions:

Second Amendment

<PAGE>

          "Approved Fund" is defined in Section 13.11(g).

          "Foreign Lender" means any Lender that is organized under the
     Governmental Requirements of any jurisdiction other than the United States
     of America or any State thereof.

          "Fund" is defined in Section 13.11(g).

          "Increasing Lender" is defined in Section 2.5.

          "Register" is defined in Section 13.11(c).

          "Second Amendment" means the Second Amendment and Restatement of
     Credit Agreement dated as of May 22, 2002, executed by Borrower,
     Administrative Agent, Syndication Agent, and Lenders.

          "Second Amendment Effective Date" means May 22, 2002, the effective
     date of the Second Amendment.

          "Subsequent Lender" is defined in Section 2.5.

     (c)  Section 1.1 of the Credit Agreement is hereby amended to delete the
definitions of "Credit Parties," "Eligible Assignee," "Participant," and
"Termination Date" in their entireties and replace such definitions with the
following:

          "Credit Parties" means Agents and Lenders, and "Credit Party" means
     any one of the Credit Parties.

          "Eligible Assignee" is defined in Section 13.11(g).

          "Participant" is defined in Section 13.11(d).

          "Termination Date" means the earlier of (a) May 23, 2005, and (b) the
     effective date that Lenders' commitments to lend hereunder are otherwise
     canceled or terminated in accordance with this Agreement.

     (d)  Section 1.1 of the Credit Agreement is hereby amended to delete the
definitions of "Documentation Agent," "Maryland Properties," "Purchaser," and
"Terramics Entities" in their entirety.

     (e)  Section 2 of the Credit Agreement is hereby amended to add the
following Section 2.5:

          2.5 Lenders; Increase in Total Commitment.

          (a) The Lenders on the Second Amendment Effective Date shall be the
     Lenders set forth on Schedule 1 to the Second Amendment.

Second Amendment

                                       -2-

<PAGE>

          (b)    After the Closing Date until May 22, 2004, Administrative Agent
     may, from time to time at the request of Borrower, increase the Total
     Commitment by (i) admitting additional Lenders hereunder (each a
     "Subsequent Lender"), or (ii) increasing the Commitment of any Lender (each
     an "Increasing Lender"), subject to the following conditions:

          (i)    Each Subsequent Lender is an Eligible Assignee;

          (ii)   Borrower executes (A) a new Note payable to the order of a
     Subsequent Lender, or (B) a replacement Note payable to the order of an
     Increasing Lender;

          (iii)  Each Subsequent Lender executes a signature page to this
     Agreement;

          (iv)   After giving effect to the admission of any Subsequent Lender
     or the increase in the Commitment of any Increasing Lender, the aggregate
     of the Total Commitment does not exceed $350,000,000 unless all Lenders
     consent in writing;

          (v)    Each increase in the Total Commitment shall be in the minimum
     amount of $10,000,000 or a greater integral multiple of $1,000,000;

          (vi)   No admission of any Subsequent Lender shall increase the
     Commitment of any existing Lender without the consent of such Lender;

          (vii)  No Lender shall be an Increasing Lender without the written
     consent of such Lender; and

          (viii) No Potential Default or Default exists.

Subject to the conditions precedent set forth above, Administrative Agent agrees
to exercise ordinary and reasonable diligence to complete documentation to admit
a Subsequent Lender or increase the Commitment of an Increasing Lender. After
the admission of any Subsequent Lender or the increase in the Commitment of any
Increasing Lender, Administrative Agent shall promptly provide to each Lender a
new Schedule 1.1 to this Agreement.

     (f)  Section 4.4 of the Credit Agreement is hereby deleted in its entirety
and replaced with the following:

          4.4 Unencumbered Properties Held by Consolidated Affiliates.
     Notwithstanding anything contained herein to the contrary,
     Unencumbered Properties may include Properties owned by a
     Consolidated Affiliate of Borrower only if (a) Borrower or PPT
     owns or controls, directly or indirectly, at least ninety-five
     percent (95%) of the issued and outstanding Stock of such
     Consolidated Affiliate free and clear of any Liens (other than
     Permitted Liens) or other restrictions on the sale or pledge
     thereof, (b) a majority of the holders of the Stock of such
     Consolidated Affiliate has the power to cause such Consolidated
     Affiliate to execute the Subsidiary Guaranty, grant Liens in the
     Unencumbered Properties owned by such Consolidated Affiliate, and
     transfer ownership of the Unencumbered Properties owned by such
     Consolidated Affiliate, (c) such Consolidated Affiliate has not
     (i) created, incurred, assumed, guaranteed, or suffered to exist
     any Liabilities, other than

Second Amendment

                                       -3-

<PAGE>

     (A) the Obligation, (B) trade payables created in the
     ordinary course of business, (C) endorsements of negotiable
     instruments in the ordinary course of business, (D) contingent
     Liabilities covered by reserves or insurance, (E) the guaranty of
     the obligations of Borrower pursuant to Permitted Recourse Debt
     of Borrower, and (F) equipment leases incurred in the ordinary
     course of business, (d) such Consolidated Affiliate has not
     created, incurred, or suffered or permitted to be created or
     incurred or to exist any Lien upon any of its assets (other than
     Permitted Liens), (e) such Consolidated Affiliate has executed
     the Subsidiary Guaranty, and (f) such Consolidated Affiliate is
     not a general partnership. Notwithstanding the foregoing, any
     Consolidated Affiliate may guarantee any Unsecured Debt of
     Borrower or PPT, which guarantee shall be pari passu with the
     obligations of such Consolidated Affiliate under the Subsidiary
     Guaranty.

     (g) Section 12.1(f) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

                (f) Other Agents. No Lender or other Persons identified
     on the facing page or signature pages of this Agreement as a
     "documentation agent," "co-documentation agent," "book manager,"
     "lead manager," "arranger," or "lead arranger" shall have any
     right, power, obligation, liability, responsibility, or duty
     under this Agreement other than, in the case of such Lenders,
     those applicable to all Lenders as such. Without limiting the
     foregoing, no Lenders or other Persons so identified shall have
     or be deemed to have any fiduciary relationship with any Lender.
     Each Lender acknowledges that it has not relied, and will not
     rely, on any Lenders or other Persons so identified in deciding
     to enter into this Agreement or in taking or not taking action
     hereunder.

     (h)  Section 13.11 of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

          13.11 Successors and Assigns; Participations.

          (a)   The provisions of this Agreement shall be binding upon and inure
     to the benefit of the parties hereto and their respective successors and
     assigns permitted hereby, except that Borrower may not assign or otherwise
     transfer any of its rights or obligations hereunder without the prior
     written consent of each Lender and no Lender may assign or otherwise
     transfer any of its rights or obligations hereunder except (i) to an
     Eligible Assignee in accordance with the provisions of subsection (b) of
     this Section 13.11, (ii) by way of participation in accordance with the
     provisions of subsection (d) of this Section 13.11, (and any other
     attempted assignment or transfer by any party hereto shall be null and
     void). Nothing in this Agreement, expressed or implied, shall be construed
     to confer upon any Person (other than the parties hereto, their respective
     successors and assigns permitted hereby, Participants to the extent
     provided in subsection (d) of this Section 13.11 and, to the extent
     expressly contemplated hereby, the Indemnitees) any legal or equitable
     right, remedy or claim under or by reason of this Agreement.

          (b)   Any Lender may at any time assign to one or more Eligible
     Assignees all or a portion of its Rights and obligations under this
     Agreement (including all or a portion of its Commitment and Note (including
     for purposes of this subsection (b), participations in Swing Line Loans) at
     the time owing to it); provided that (i) except for an assignment by such
     Lender to an Affiliate of such Lender,

Second Amendment

                                       -4-

<PAGE>

     such Lender shall have received the prior consent of each Agent and, so
     long as no Default has occurred and is continuing, Borrower (each such
     consent not to be unreasonably withheld or delayed); (ii) except in the
     case of an assignment of the entire remaining amount of the assigning
     Lender's Commitment and Note at the time owing to it or in the case of an
     assignment to a Lender or an Affiliate of a Lender or an Approved Fund with
     respect to a Lender, the aggregate amount of the Commitment (which for this
     purpose includes Principal Debt outstanding thereunder) subject to each
     such assignment, determined as of the date the Assignment and Assumption
     with respect to such assignment is delivered to Administrative Agent or, if
     "Trade Date" is specified in the Assignment and Assumption, as of the Trade
     Date, shall not be less than $5,000,000; (iii) each partial assignment
     shall be made as an assignment of a proportionate part of all the assigning
     Lender's Rights and obligations under this Agreement with respect to the
     Notes or the Commitment assigned, except that this clause (iii) shall not
     apply to rights in respect of Swing Line Loans; (iv) the parties to each
     assignment shall execute and deliver to Administrative Agent an Assignment
     and Assumption, together with a processing and recordation fee of $3,500;
     and (v) except in the case of an assignment of the entire remaining amount
     of the assigning Lender's Commitment and Principal Debt at the time, the
     aggregate amount of the Commitments of such assigning Lender or, if the
     Total Commitment is not then in effect, the Principal Debt of the Notes of
     such assigning Lender, after giving effect to such assignment, is at least
     $5,000,000. Subject to acceptance and recording thereof by Administrative
     Agent pursuant to subsection (c) of this Section 13.11, from and after the
     effective date specified in each Assignment and Assumption, the Eligible
     Assignee thereunder shall be a party to this Agreement and, to the extent
     of the interest assigned by such Assignment and Assumption, have the rights
     and obligations of a Lender under this Agreement, and the assigning Lender
     thereunder shall, to the extent of the interest assigned by such Assignment
     and Assumption, be released from its obligations under this Agreement (and,
     in the case of an Assignment and Assumption covering all of the assigning
     Lender's Rights and obligations under this Agreement, such Lender shall
     cease to be a party hereto but shall continue to be entitled to the
     benefits of Sections 3.15(c) and (d), 3.17, 7.7 and 7.12 with respect to
     facts and circumstances occurring prior to the effective date of such
     assignment). Upon request, Borrower (at its expense) shall execute and
     deliver a Note to the assignee Lender. Administrative Agent agrees to
     provide Borrower with copies of all Assignment and Assumption Agreements so
     long as no Default exists. Any assignment or transfer by a Lender of rights
     or obligations under this Agreement that does not comply with this
     subsection shall be treated for purposes of this Agreement as a sale by
     such Lender of a participation in such rights and obligations in accordance
     with subsection (d) of this Section 13.11.

          (c) Administrative Agent, acting solely for this purpose as an agent
     of Borrower, shall maintain at Administrative Agent's office a copy of each
     Assignment and Assumption delivered to it and a register for the
     recordation of the names and addresses of the Lenders, and the Commitments
     of, and principal amounts of the Notes owing to, each Lender pursuant to
     the terms hereof from time to time (the "Register"). The entries in the
     Register shall be conclusive, absent manifest error, and Borrower,
     Administrative Agent, and Lenders may treat each Person whose name is
     recorded in the Register pursuant to the terms hereof as a Lender hereunder
     for all purposes of this Agreement, notwithstanding notice to the contrary.
     The Register shall be available for inspection by Borrower and any Lender,
     at any reasonable time and from time to time upon reasonable prior notice.

          (d) Any Lender may at any time, sell participations to any Person
     (other than a natural person or Borrower or any of Borrower's Affiliates or
     Subsidiaries) (each, a "Participant") in all or a portion of such Lender's
     rights and/or obligations under this Agreement (including all or a portion
     of

Second Amendment

                                       -5-

<PAGE>

     its Commitment and/or the Notes (including such Lender's participations in
     Swing Line Loans owing to it); provided that (i) such Lender's obligations
     under this Agreement shall remain unchanged, (ii) such Lender shall remain
     solely responsible to the other parties hereto for the performance of such
     obligations, (iii) Borrower, Administrative Agent, and the other Lenders
     shall continue to deal solely and directly with such Lender in connection
     with such Lender's rights and obligations under this Agreement, (iv) the
     amount of each such participation shall not be less than $5,000,000; and
     (v) the aggregate amount of the Commitments of such Lender selling such
     participation or, if the Total Commitment is not then in effect, the
     Principal Debt of the Notes of the Lender selling such participation, after
     giving effect to such assignment, is at least $5,000,000. Any agreement or
     instrument pursuant to which a Lender sells such a participation shall
     provide that such Lender shall retain the sole right to enforce this
     Agreement and to approve any amendment, modification or waiver of any
     provision of this Agreement; provided that such agreement or instrument may
     provide that such Lender will not, without the consent of the Participant,
     agree to any amendment, waiver or other modification described in Section
     13.9(b) that directly affects such Participant. Subject to subsection (e)
     of this Section 13.11, Borrower agrees that each Participant shall be
     entitled to the benefits of Sections 3.15(c) and (d) and 3.17 to the same
     extent as if it were a Lender and had acquired its interest by assignment
     pursuant to subsection (b) of this Section 13.11. To the extent permitted
     by law, each Participant also agrees to be subject to Section 3.12 as
     though it were a Lender.

          (e) A Participant shall not be entitled to receive any greater payment
     under Sections 3.15(c) and (d) than the applicable Lender would have been
     entitled to receive with respect to the participation sold to such
     Participant. A Participant that would be a Foreign Lender if it were a
     Lender shall not be entitled to the benefits of Section 3.15(d) unless
     Borrower is notified of the participation sold to such Participant and such
     Participant agrees, for the benefit of Borrower, to comply with Section
     3.18 as though it were a Lender.

          (f) Any Lender may at any time pledge or assign a security interest in
     all or any portion of its Rights under this Agreement (including under its
     Note) to secure obligations of such Lender, including any pledge or
     assignment to secure obligations to a Federal Reserve Bank; provided that
     no such pledge or assignment shall release such Lender from any of its
     obligations hereunder or substitute any such pledgee or assignee for such
     Lender as a party hereto.

          (g) As used herein, the following terms have the following meanings:

          "Approved Fund" means any Fund that is administered or managed by (a)
     a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of
     an entity that administers or manages a Lender.

          "Eligible Assignee" means (a) a Lender; (b) an Affiliate of a Lender;
     (c) an Approved Fund; and (d) any other Person (other than a natural
     person) approved by (i) the Agents, and (ii) unless a Default or Potential
     Default has occurred and is continuing, Borrower (each such approval not to
     be unreasonably withheld or delayed); provided that notwithstanding the
     foregoing, "Eligible Assignee" shall not include Borrower or any of
     Borrower's Affiliates or Subsidiaries.

          "Fund" means any Person (other than a natural person) that is (or will
     be) engaged in making, purchasing, holding or otherwise investing in
     commercial loans and similar extensions of credit in the ordinary course of
     its business.

Second Amendment

                                       -6-

<PAGE>

          (h) Prior to the expiration or termination of the Total Commitment,
     and unless a Default exists or Borrower otherwise consents in writing, each
     Agent shall, at all times prior to its resignation or replacement as either
     Administrative Agent or Syndication Agent, as the case may be, hereunder,
     retain a minimum Commitment equal to the greater of (i) $20,000,000, and
     (ii) an amount equal to the largest Commitment held by any Lender under
     this Agreement (without giving effect to any mergers of any Lenders other
     than any Agent).

     (i)  Schedule 1 to the Credit Agreement is hereby deleted in its entirety
and replaced with Schedule 1 attached hereto.

     (j)  Schedule 2 to the Credit Agreement is hereby deleted in its entirety.

     (k)  Exhibit D-1 to the Credit Agreement is hereby deleted in its entirety
and replaced with Exhibit D-1 attached hereto.

     (l)  Exhibit E to the Credit Agreement is hereby deleted in its entirety
and replaced with Exhibit E attached hereto.

     II.  Continuing Lenders. On the date hereof, (a) all outstanding
Liabilities under the Existing Agreement owed to any "Lender" that is not
continuing as a Lender under this Agreement (each a "Non-Continuing Lender")
shall be repaid in full by Borrower and such Non-Continuing Lender's commitment
under the Existing Agreement shall be terminated and (b) with respect to Lenders
which are continuing as Lenders under this Agreement (the "Continuing Lenders"),
Administrative Agent shall make appropriate allocations and adjustments in the
initial funding instructions to the Lenders to reflect the modifications
effected by the Loan Documents to each Continuing Lender's Commitment.

     III. Replacement Notes. Borrower shall execute Replacement Revolving Credit
Notes dated as of the date hereof, payable to each Continuing Lender in the
amount of such Continuing Lender's Commitment (the "Replacement Revolving Credit
Notes"), which Replacement Revolving Credit Notes are in replacement of, and not
extinguishment of the indebtedness under those certain Revolving Credit Notes
each dated May 23, 2000, executed by Borrower and payable to the order of each
Lender in the original aggregate principal amount of $300,000,000 (the "Original
Revolving Credit Notes"). The Replacement Revolving Credit Notes executed
pursuant to this Amendment amend, renew, extend, modify, replace, substitute,
and supersede in their entirety (but do not extinguish the Indebtedness arising
under) the Original Revolving Credit Notes. Administrative Agent agrees to
exercise its reasonable best efforts to obtain the Original Revolving Credit
Notes from each of the Lenders under the Existing Agreement.

     IV.  Amendment of Credit Agreement and Other Loan Documents.

     (a)  All references in the Loan Documents to the "Agreement" or the "Credit
Agreement" shall henceforth include references to the Agreement or Credit
Agreement as modified, amended, and restated by this Amendment, and as may, from
time to time, be further modified, amended, restated, extended, renewed, and/or
increased.

     (b)  All references in the Loan Documents to the "Notes" shall henceforth
include references to the Replacement Revolving Credit Notes, as modified and
amended hereby, and as may, from time to time, be further amended, modified,
extended, renewed, and/or increased.

Second Amendment

                                      -7-

<PAGE>

     (c)  Any and all of the terms and provisions of the Loan Documents are
hereby amended and modified wherever necessary, even though not specifically
addressed herein, so as to conform to the amendments and modifications set forth
herein.

     V.   Ratifications. Borrower (a) ratifies and confirms all provisions of
the Loan Documents as amended by this Amendment, the Replacement Revolving
Credit Notes, and the other documents executed in connection therewith
(collectively, the "Amendment Documents"), (b) ratifies and confirms that all
guaranties, assurances, and Liens granted, conveyed, or assigned to the Credit
Parties under the Loan Documents are not released, reduced, or otherwise
adversely affected by this Amendment and continue to guarantee, assure, and
secure full payment and performance of the present and future Obligation,
including without limitation, the Replacement Revolving Credit Notes, and (c)
agrees to perform such acts and duly authorize, execute, acknowledge, deliver,
file, and record such additional documents, and certificates as the Credit
Parties may reasonably request in order to create, perfect, preserve, and
protect those guaranties, assurances, and Liens.

     VI.  Representations. Borrower represents and warrants to the Credit
Parties that as of the date of this Amendment: (a) the Amendment Documents have
been duly authorized, executed, and delivered by Borrower and each of the other
Obligors that are parties to the Amendment Documents; (b) no action of, or
filing with, any Governmental Authority is required to authorize, or is
otherwise required in connection with, the execution, delivery, and performance
by any Obligor of the Amendment Documents to which they are a party; (c) the
Loan Documents, as amended by the Amendment Documents, are valid and binding
upon Borrower and each other Obligor that are parties to the Amendment Documents
and are enforceable against Borrower and such Obligors in accordance with their
respective terms, except as limited by Debtor Relief Laws and general principles
of equity; (d) the execution, delivery, and performance by Borrower and each
other Obligor to which Borrower or such Obligor is a party of the Amendment
Documents do not require the consent of any other Person and do not and will not
constitute a violation of any Governmental Requirement, order of any
Governmental Authority, or material agreements to which Borrower or any other
Obligor is a party thereto or by which Borrower or any other Obligor is bound;
(e) all representations and warranties in the Loan Documents are true and
correct in all material respects on and as of the date of this Amendment, except
to the extent that (i) any of them speak to a different specific date, or (ii)
the facts on which any of them were based have been changed by transactions
contemplated or permitted by the Credit Agreement; and (f) both before and after
giving effect to the Amendment Documents, no Potential Default or Default
exists.

     VII. Conditions. This Amendment and the other Amendment Documents shall not
be effective unless and until:

     (a)  this Amendment, the Replacement Revolving Credit Notes, and the other
Amendment Documents have been executed by Borrower, the other Obligors that are
parties to the Amendment Documents, Administrative Agent, and all Lenders;

     (b)  the representations and warranties in this Amendment are true and
correct in all material respects on and as of the date of this Amendment, except
to the extent that (i) any of them speak to a different specific date, or (ii)
the facts on which any of them were based have been changed by transactions
contemplated or permitted by the Credit Agreement;

     (c)  Administrative Agent shall have received Officers' Certificates of
Borrower and of each other Obligor (i) certifying that there have been no
changes to the Constituent Documents of Borrower or such other

Second Amendment

                                      -8-

<PAGE>

Obligor since the date of their last certification pursuant to the Loan
Documents, (ii) certifying the incumbency of the officers of Borrower or such
other Obligor authorized to execute the Loan Documents, and (iii) certifying
copies of resolutions duly adopted by the Borrower's or such other Obligor's
Board of Directors approving the Amendment Documents and authorizing the
transactions contemplated therein;

     (d)   Administrative Agent shall have received payment of (i) the fees
required under the separate Fee Letter by and between Administrative Agent and
Borrower, and (ii) all unpaid fees and expenses payable on or prior to the date
hereof to Administrative Agent, including, without limitation, fees and expenses
of Administrative Agent's counsel;

     (e)   Administrative Agent shall have received such other agreements,
documents, instruments, opinions, certificates, and evidences as Administrative
Agent may reasonably request; and

     (f)   both before and after giving effect to this Amendment, no Potential
Default or Default exists.

     VIII. Continued Effect. Except to the extent amended hereby or by any
documents executed in connection herewith, all terms, provisions, and conditions
of the Credit Agreement and the other Loan Documents, and all documents executed
in connection therewith, shall continue in full force and effect and shall
remain enforceable and binding in accordance with their respective terms.

     IX.   Miscellaneous. Unless stated otherwise (a) the singular number
includes the plural and vice versa and words of any gender include each other
gender, in each case, as appropriate, (b) headings and captions may not be
construed in interpreting provisions, (c) this Amendment shall be construed --
and its performance enforced -- under Texas law, (d) if any part of this
Amendment is for any reason found to be unenforceable, all other portions of it
nevertheless remain enforceable, and (e) this Amendment may be executed in any
number of counterparts with the same effect as if all signatories had signed the
same document, and all of those counterparts must be construed together to
constitute the same document.

     X.    Parties. This Amendment binds and inures to Borrower and the Credit
Parties and their respective successors and permitted assigns.

     XI.   Entireties. The Credit Agreement and the other Loan Documents, as
amended by this Amendment and the other Amendment documents, represent the final
agreement between the parties about the subject matter of the Credit Agreement
and may not be contradicted by evidence of prior, contemporaneous, or subsequent
oral agreements of the parties. There are no unwritten oral agreements between
the parties.

                  [Remainder of Page Intentionally Left Blank;
                           Signature Pages to Follow]

Second Amendment

                                       -9-

<PAGE>

     To induce the Credit Parties to enter into this Amendment, each of the
undersigned (a) consents and agrees to the Amendment Documents' execution and
delivery, (b) ratifies and confirms that all guaranties, assurances, and Liens
granted, conveyed, or assigned to the Credit Parties under the Loan Documents
are not released, diminished, impaired, reduced, or otherwise adversely affected
by the Amendment Documents and continue to guarantee, assure, and secure the
full payment and performance of all present and future Obligation (except to the
extent specifically limited by the terms of such guaranties, assurances, or
Liens), (c) confirms that the term "Guaranteed Debt" in each Guaranty includes,
without limitation, the indebtedness evidenced by the Replacement Revolving
Credit Notes, (d) agrees to perform such acts and duly authorize, execute,
acknowledge, deliver, file, and record such additional guaranties, assignments,
security agreements, deeds of trust, mortgages, and other agreements, documents,
instruments, and certificates as the Credit Parties may reasonably deem
necessary or appropriate in order to create, perfect, preserve, and protect
those guaranties, assurances, and Liens, and (e) waives notice of acceptance of
this consent and agreement, which consent and agreement binds the undersigned
and its successors and permitted assigns and inures to the Credit Parties and
their respective successors and permitted assigns.

                  [Remainder of Page Intentionally Left Blank;
                           Signature Pages to Follow]

Second Amendment

<PAGE>

                                   SCHEDULE 1

             PARTIES, ADDRESSES, COMMITMENTS, AND WIRING INFORMATION

<TABLE>
<CAPTION>
====================================================================================================================

                           Borrower
====================================================================================================================
<S>                                                              <C>                     <C>
Prentiss Properties Acquisition Partners, L.P.
3890 W. Northwest Highway, Suite 400
Dallas, Texas  75220
Attention:  Mr. Rick C. Bower

With a Copy to:

Prentiss Properties Acquisition Partners, L.P.
3890 W. Northwest Highway, Suite 400
Dallas, Texas  75220
Attention:  General Counsel

With a Copy to:

Akin, Gump, Strauss, Hauer & Feld, L.L.P.
1700 Pacific Avenue, Suite 4100
Dallas, Texas 75201-4675
Attention:  Randall M. Ratner, Esq.
====================================================================================================================

                     Administrative Agent
====================================================================================================================
Bank One, NA
Corporate Real Estate
1 Bank One Plaza
Mail Code IL1-0315
Chicago, Illinois 60670-0315
Attention:  Kenneth Nelson
Fax:  312-732-5939

Wiring Instructions:
Bank One, NA
ABA #
Account Name:  Prentiss Properties Trust
Account Number:
Reference: Prentiss Properties Acquisition Partners
LS2 Incoming Clearing Account
Attn:    Loan Operations Admin:  Maria Lozano
         312-336-2057

====================================================================================================================

                     Syndication Agent
====================================================================================================================
Bank of America, N.A.
</TABLE>

Second Amendment

<PAGE>

<TABLE>
<S>                                                              <C>                     <C>
====================================================================================================================
901 Main Street, 64th Floor
Dallas, Texas  75202
Attn:    Ms. Renee Sampson
         Vice President
Fax:     214-209-0085

With a Copy to:

Banc of America Securities LLC
NC1-007-15-06
100 North Tryon Street
15th Floor
Charlotte, NC 28255-0001
Attn:    Mr. Anthony Fertitta
         Vice President
Fax:     704-386-0255

Wiring Instructions:
Bank of America, N.A.
ABA #
Account Name: Credit Services
Account Number:
Reference: Prentiss Properties Acquisition Partners, L.P.
Attn:    Kajal Patel
         214-209-0993
====================================================================================================================
                                                                                           Pro Rata Share of the
                            Lenders                                   Commitment $           Total Commitments
====================================================================================================================
Bank One, NA                                                          $30,000,000                 10.000000%
Corporate Real Estate
1 Bank One Plaza
Mail Code IL1-0315
Chicago, Illinois 60670-0315
Attention:  Kenneth Nelson
Fax:  312-732-5939

Wiring Instructions:
Bank One, NA
ABA #
Account Name:  Prentiss Properties Trust
Account Number:
Reference: Prentiss Properties Acquisition Partners
LS2 Incoming Clearing Account
Attn:    Loan Operations Admin:  Maria Lozano
         312-336-2057
--------------------------------------------------------------------------------------------------------------------
</TABLE>

Second Amendment

<PAGE>

<TABLE>
<S>                                                              <C>                     <C>
--------------------------------------------------------------------------------------------------------------------
Bank of America, N.A.                                                 $30,000,000                10.000000%
901 Main Street, 64th Floor
Dallas, Texas  75202
Attn:    Ms. Renee Sampson
         Vice President
Fax:     214-209-0085

With a Copy to:

Banc of America Securities LLC
NC1-007-15-06
100 North Tryon Street
15th Floor
Charlotte, NC 28255-0001
Attn:    Mr. Anthony Fertitta
         Vice President
Fax:     704-386-0255

Wiring Instructions:
Bank of America, N.A.
ABA #
Account Name: Credit Services
Account Number:
Reference:    Prentiss Properties Acquisition
              Partners, L.P.
Attn:    Kajal Patel
         214-209-0993
--------------------------------------------------------------------------------------------------------------------
Dresdner Bank AG, New York and Grand Cayman Branches                  $30,000,000                10.000000%
75 Wall Street, 25th Floor
New York, New York 10005-2886

Attn:    Michael A. Seton
Fax:     212-429-2781

Wiring Instructions:
Dresdner Bank AG New York
ABA #
Account Name: Prentiss Properties Trust
Account Number:
Reference: $300 Million Revolver [include type of payment,
i.e., principal, interest, fees]
Attn:    Natividad Tadurem
         212-429-2511
--------------------------------------------------------------------------------------------------------------------
Commerzbank AG, New York Branch                                       $30,000,000                10.000000%
Real Estate Department
Two World Financial Center
</TABLE>

Second Amendment

<PAGE>

<TABLE>
<S>                                                              <C>                     <C>
--------------------------------------------------------------------------------------------------------------------
New York, New York  10281-1050

Attn:    Mr. David Schwarz
         Mr. Bill Knickerbocker
Fax:     212-266-7565

Wiring Instructions:

Commerzbank A.G., New York Branch
ABA #
Account Number:
Reference: Prentiss Properties
--------------------------------------------------------------------------------------------------------------------
Societe Generale, Southwest Agency                                    $30,000,000                10.000000%
2001 Ross Avenue
Suite 2200
Dallas, Texas 75201-6776

Attn:    Mr. Jeff Schultz
Fax:     214-979-2727

Wiring Instructions:
Societe Generale, New York
ABA #
Account Name: Prentiss Properties Acquisition Partners, LP
Account Number:
Attention:    Becky Aduddell
              214-979-2776
--------------------------------------------------------------------------------------------------------------------
PNC Bank, National Association                                        $25,000,000                 8.333333%
249 Fifth Avenue
One PNC Plaza
Mail Stop P1-POPP-19-2
Pittsburgh, Pennsylvania 15222

Attn:    Mr. Wayne Robertson
         Mr. Brendan McCarthy
Fax:     412-762-6500

Wiring Instructions:
PNC Bank, National Association
ABA #
Account Name: Commercial Loan Operations
Account Number:
Reference: Prentiss Properties
Attention:    Angela Price
              412-768-1696
--------------------------------------------------------------------------------------------------------------------
SunTrust Bank                                                         $25,000,000                 8.333333%
</TABLE>

Second Amendment

<PAGE>

<TABLE>
------------------------------------------------------------------------------------------------------------------
<S>                                                                    <C>                      <C>
8245 Boone Boulevard, Suite 820
Vienna, Virginia  22182-3871

Attn:    Ms. Nancy Richards
Fax:     703-902-9190

Wiring Instructions:
SunTrust Bank
ABA #
Account Name: REFG-Vienna
Account Number:
Reference: Prentiss Properties
Attn:    Connie Dores
         703-902-9166
------------------------------------------------------------------------------------------------------------------
Comerica Bank                                                        $20,000,000               6.666667%
Comerica Tower
500 Woodward Avenue, 7th Floor
Detroit, Michigan  48226

Attn:    Mr. Sam Meehan
Fax:     313-222-9295

Wiring Instructions:
Comerica Bank
ABA #
Account Name: CLO
Account Number:
Reference: Prentiss Properties
Notify:  Betsy Branson
         313-222-5878
------------------------------------------------------------------------------------------------------------------
Mellon Bank, N.A.                                                    $20,000,000               6.666667%
One Mellon Bank Center
Suite 5325
Pittsburgh, Pennsylvania  15258-0001

Attn:    Mr. David Tetrick
Fax:     412-234-8657

Wiring Instructions:
Mellon Bank, N.A.
ABA #
Account Name: Real Estate Finance Department
Account Number:
Reference: Prentiss Properties - Revolver
Attention:    Rick Kokal
              412-234-7271
------------------------------------------------------------------------------------------------------------------
SouthTrust Bank                                                      $20,000,000               6.666667%
</TABLE>

Second Amendment

<PAGE>

<TABLE>
-------------------------------------------------------------------------------------------------------------------
<S>                                                                 <C>                       <C>
420 North 20th Street
11th Floor
Birmingham, Alabama 35203

Attn:    Ms. Ann Peck
Fax:     205-254-8270

Wiring Instructions:
SouthTrust Bank
ABA #
Account Name: Bank Wire suspense
Account Number:
Reference: Prentiss Properties
Attn:    Natalie Johnson
         205-599-5416
-------------------------------------------------------------------------------------------------------------------
Union Bank of California                                            $ 20,000,000               6.666667%
500 Akard
Suite 4200
Dallas, Texas 75201

Attn:    Mr. Patrick A. Trowbridge
Fax:     214-922-4210

Wiring Instructions:
Union Bank of California
ABA #
Account Number:
Reference: Prentiss Properties Acquisition Partners,
L.P.
-------------------------------------------------------------------------------------------------------------------
KeyBank National Association                                        $ 20,000,000               6.666667%
227 West Monroe Avenue, 18/th/ Floor
Chicago, Illinois 60606

Attn:    Mr. James W. Blessing
Fax:     312-730-2755

Wiring Instructions:
KeyBank National Association
ABA #
Account Number:
Reference: Prentiss Properties
Attn: Gayle Klass Ext. 4-3222
===================================================================================================================

Total Commitments                                                   $300,000,000             100.000000%
===================================================================================================================
</TABLE>

Second Amendment

<PAGE>

                                   EXHIBIT D-1

                        SUBSTITUTE REVOLVING CREDIT NOTE

 $____________                  Dallas, Texas                 As of May 22, 2002

     1. FOR VALUE RECEIVED, PRENTISS PROPERTIES ACQUISITION PARTNERS, L.P., a
Delaware limited partnership ("Maker"), hereby unconditionally promises to pay
to the order of __________________ ("Payee"), at the address of Administrative
Agent (defined below) set forth in that Credit Agreement defined below, the sum
of _____________ Dollars ($_____________) (or, if less, so much thereof as may
be advanced), in lawful money of the United States of America. Capitalized terms
not defined herein shall have the meaning assigned to those terms in the Credit
Agreement.

     2. The unpaid principal amount of, and accrued unpaid interest on, this
Note is payable in accordance with the Credit Agreement.

     3. The unpaid principal balance advanced and outstanding hereunder shall
bear interest from the date of advance until maturity at the rate per annum
provided in the Credit Agreement that is selected by Maker pursuant to the
Credit Agreement. The interest rate specified in this section is subject to
adjustment under the circumstances described in the Credit Agreement. Interest
shall be computed in the manner provided in the Credit Agreement.

     4. Notwithstanding any provision contained in this Note or any other
document executed or delivered in connection with this Note or in connection
with the Credit Agreement, Payee shall never be deemed to have contracted for or
be entitled to receive, collect, or apply as interest on this Note, any amount
in excess of the maximum rate of interest permitted to be charged by applicable
law, and, if Payee ever receives, collects, or applies as interest any such
excess, then the amount that would be excessive interest shall be applied to
reduce the unpaid principal balance of this Note, and, if the principal balance
of this Note is paid in full by that application, then any remaining excess
shall promptly be paid to Maker. In determining whether the interest paid or
payable under any specific contingency exceeds the highest lawful rate, Maker
and Payee shall, to the maximum extent permitted under applicable law, (a)
characterize any non-principal payment (other than payments expressly designated
as interest payments hereunder) as an expense or fee rather than as interest,
(b) exclude voluntary prepayments and the effect thereof, and (c) spread the
total amount of interest throughout the entire contemplated term of this Note so
that the interest rate is uniform throughout that term.

     5. This Note has been executed and delivered pursuant to the Credit
Agreement (as modified, amended, renewed, extended, or restated from time to
time, the "Credit Agreement") dated as of May 23, 2000, executed by and between
Maker, Bank One, NA, as Administrative Agent (together with any successor or
assigns, the "Administrative Agent"), Bank of America, N.A., as Syndication
Agent, and the Lenders defined therein, and is one of the "Notes" referred to
therein, and the holder of this Note is entitled to the benefits provided in the
Credit Agreement. Reference is hereby made to the Credit Agreement for a
statement of (a) the obligation of Payee to advance funds hereunder, (b) the
prepayment rights and obligations of Maker, and (c) the events upon which the
maturity of this Note may be accelerated.

     6. If the principal of, or any installment of interest on, this Note
becomes due and payable on a day other than a Business Day, then the maturity
thereof shall be extended to the next succeeding Business Day. If this Note, or
any installment or payment due hereunder, is not paid when due, whether at
maturity or by

Second Amendment

                                      -17-

<PAGE>

acceleration, or if it is collected through a bankruptcy, probate or other
court, whether before or after maturity, then Maker shall pay all costs of
collection, including, but not limited to, reasonable attorneys' fees incurred
by the holder of this Note. All past due principal of, and to the extent
permitted by applicable law, interest on this Note shall bear interest until
paid at the rate provided in the Credit Agreement.

     7. Except as expressly provided in the Credit Agreement, Maker and all
sureties, endorsers, guarantors and other parties ever liable for payment of any
sums payable pursuant to the terms of this Note, jointly and severally waive
demand, presentment for payment, protest, notice of protest, notice of
acceleration, notice of intent to accelerate, diligence in collection, the
bringing of any suit against any party, and any notice of or defense on account
of any extensions, renewals, partial payments, or changes in any manner of or in
this Note or in any of its terms, provisions, and covenants, or any releases or
substitutions of any security, or any delay, indulgence, or other act of any
trustee or any holder hereof, whether before or after maturity.

     8. All Borrowings made by Payee, the respective Interest Periods thereof
(if applicable), and all repayments of the principal thereof may be recorded by
Payee and, before any transfer hereof, endorsed by Payee on the schedule
attached hereto, or on a continuation of the schedule attached to and a part
hereof, provided that the failure of Payee to record any endorsement shall not
affect the obligation of Maker hereunder or under the Credit Agreement.

     9. This Note is Being Executed and Delivered, and is Intended to be
Performed in the State of Texas. Except to the Extent That the Laws of the
United States May Apply to the Terms Hereof, the Substantive Laws of the State
of Texas Shall Govern the Validity, Construction, Enforcement, and
Interpretation of This Note.

     10. This Note is given in partial substitution and replacement, but not
extinguishment, of those certain Revolving Credit Notes dated May 23, 2000,
executed by Maker, for the benefit of Lenders, in the aggregate original
principal amount of $300,000,000.

                                  PRENTISS PROPERTIES ACQUISITION
                                  PARTNERS, L.P., a Delaware limited partnership

                                  By:   PRENTISS PROPERTIES I, INC.,
                                        General Partner

                                        By: ____________________________________
                                            Richard C. Bower, II
                                            Vice President

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<PAGE>

                                    EXHIBIT E

                        FORM OF ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (this "Assignment and Assumption") is dated
as of the Effective Date set forth below and is entered into by and between
_________________ (the "Assignor") and ____________________ (the "Assignee").
Capitalized terms used but not defined herein shall have the meanings given to
them in the Credit Agreement identified below (the "Credit Agreement"), receipt
of a copy of which is hereby acknowledged by the Assignee. The Standard Terms
and Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and
Assumption as if set forth herein in full.

     For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
Administrative Agent as contemplated below (i) all of the Assignor's rights and
obligations as a Lender under the Credit Agreement and any other documents or
instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding Rights and
obligations of the Assignor under such Assignor's Commitment (including, without
limitation, Guarantees and Swing Line Loans included in such Commitment) and
(ii) to the extent permitted to be assigned under applicable law, all claims,
suits, causes of action and any other right of the Assignor (in its capacity as
a Lender) against any Person, whether known or unknown, arising under or in
connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby or in any
way based on or related to any of the foregoing, including, but not limited to,
contract claims, tort claims, malpractice claims, statutory claims and all other
claims at law or in equity to the extent related to the rights and obligations
sold and assigned pursuant to clause (i) above (the rights and obligations sold
and assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as, the "Assigned Interest"). Such sale and assignment is without
recourse to the Assignor and, except as expressly provided in this Assignment
and Assumption, without representation or warranty by the Assignor.

     1. Assignor: ______________________________

     2. Assignee: ______________________________ [and is an Affiliate/Approved
Fund of [identify Lender] ]

     3. Borrower: ______________________________

     4. Administrative Agent: ______________________, as administrative agent
under the Credit Agreement.

     5. Credit Agreement: The Credit Agreement, dated as of May 22, 2002, among
Borrower, Bank One, N.A., as Administrative Agent, Bank of America, N.A., as
Syndication Agent, and the Lenders parties thereto.

     6. Assigned Interest:

    ----------------------------------------------------------------------------
               Aggregate
               Amount of               Amount of            Percentage

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<PAGE>

  --------------------------------------------------------------------------
          Commitment               Commitment             Assigned of
        for all Lenders             Assigned               Commitment
        ---------------             --------               ----------

  --------------------------------------------------------------------------
     $____________________    $____________________    __________________%
  --------------------------------------------------------------------------
     $____________________    $____________________    __________________%
  --------------------------------------------------------------------------
     $____________________    $____________________    __________________%
  --------------------------------------------------------------------------

   [7. Trade Date: __________________]

                            [Signature Pages Follow.]

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<PAGE>

Effective Date: __________________, 20__

The terms set forth in this Assignment and Assumption are hereby agreed to:

                                 ASSIGNOR:

                                 _______________________________________________

                                 By:   _________________________________________
                                       Name: ___________________________________
                                       Title:___________________________________

                                 ASSIGNEE:

                                 _______________________________________________

                                 By:   _________________________________________
                                       Name: ___________________________________
                                       Title:___________________________________

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<PAGE>

ACCEPTED BY ADMINISTRATIVE AGENT
THIS _____ DAY OF __________________

ADMINISTRATIVE AGENT:

By:______________________
       Name:_____________________________________
       Title:____________________________________

ACCEPTED BY SYNDICATION AGENT
THIS ____ DAY OF ___________________

SYNDICATION AGENT:

By:______________________
       Name:_____________________________________
       Title:____________________________________

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<PAGE>

                      ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

Credit Agreement, dated as of May 22, 2002, by and among Prentiss Properties
Acquisition Partners, L.P. ("Borrower"), Bank One, N.A., as administrative agent
("Administrative Agent"), Bank of America, N.A., as Syndication Agent, and the
Lenders parties thereto.

                        STANDARD TERMS AND CONDITIONS FOR
                            ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties.

   1.1.Assignor. The Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest
is free and clear of any lien, encumbrance or other adverse claim and (iii) it
has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the
Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of
Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by Borrower,
any of its Subsidiaries or Affiliates or any other Person of any of their
respective obligations under any Loan Document.

   1.2.Assignee. The Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver
this Assignment and Assumption and to consummate the transactions contemplated
hereby and to become a Lender under the Credit Agreement, (ii) it meets all
requirements of an Eligible Assignee under the Credit Agreement (subject to
receipt of such consents as may be required under the Credit Agreement), (iii)
from and after the Effective Date, it shall be bound by the provisions of the
Credit Agreement as a Lender thereunder and, to the extent of the Assigned
Interest, shall have the obligations of a Lender thereunder, (iv) it has
received a copy of the Credit Agreement, together with copies of the most recent
financial statements delivered pursuant to Section 7.1 thereof, as applicable,
and such other documents and information as it has deemed appropriate to make
its own credit analysis and decision to enter into this Assignment and
Assumption and to purchase the Assigned Interest on the basis of which it has
made such analysis and decision independently and without reliance on
Administrative Agent or any other Lender, and (v) if it is a Foreign Lender,
attached hereto is any documentation required to be delivered by it pursuant to
the terms of the Credit Agreement, duly completed and executed by the Assignee;
and (b) agrees that (i) it will, independently and without reliance on
Administrative Agent, the Assignor or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Loan
Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

2. Payments. From and after the Effective Date, Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of
principal, interest, fees and other amounts) to the Assignee whether such
amounts have accrued prior to or on or after the Effective Date. The Assignor
and the Assignee

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                                      -23-

<PAGE>

shall make all appropriate adjustments in payments by Administrative Agent for
periods prior to the Effective Date or with respect to the making of this
assignment directly between themselves.

3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and
assigns. This Assignment and Assumption may be executed in any number of
counterparts, which together shall constitute one instrument. Delivery of an
executed counterpart of a signature page of this Assignment and Assumption by
telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of Texas, without
giving effect to the conflict of laws principles thereof.

4. Address for Notice. Assignee's address for notices and payments under the
Credit Agreement and this Assignment and Assumption are as set forth below.
Assignee may by notice in accordance with the Credit Agreement to Assignor,
Administrative Agent, and Borrower change the address or telex number or
facsimile number at which notices, communications and payments are to be given
to it.

Address:
         ______________________________

         Telecopier: __________________

Account for Payments

Account No.:___________________________
Attention: ____________________________

Reference: ____________________________
Depository:_________

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