Document:

ex1014-10ka2007.htm

    
 

    Exhibit
10.14

    

    LASALLE
BANK NATIONAL ASSOCIATION (FORMERLY KNOWN AS LASALLE

    NATIONAL
BANK), AS TRUSTEE FOR: (A) BH FINANCE LLC, CREDIT LEASE

    LOAN
PASS-THROUGH CER11FICATES, SERIES 2000-A POOLS V-IX; and

    (B)
CAPCO AMERICA SECURITIZATION CORPORATION, COMMERCIAL

    MORTGAGE
PASS-THROUGH CERTIFICATES, SERIES 1998-D7

    

    c/o
Lennar Partners, Inc.

    1601
Washington Avenue, Suite 700

    Miami
Beach, FL 33139

    

    December
5, 2002

    

    

    

    VIA FEDERAL
EXPRESS

    

    M-Six
Penvest II Business Trust

    c/o U.S.
Realty Advisors, LLC

    1370
Avenue of the Americas, 29th Floor

    New York,
New York 10019

    

    

    
      	
               
      

            	
              Re:

            	
              Loan
      Documents described on Exhibit "A" attached hereto (the "Loan Documents")
      relating to a loan in the original principal amount of $51,934,489.63 (the
      "Loan")
      to M-Six Penvest II Business Trust, a Delaware Business Trust ("Borrower"),
      M-Six Penvest II Business Trust (LA), a Louisiana trust ("Louisiana
      Borrower") and M-Six Penvest II Limited Partnership (NEV.), a
      Delaware limited partnership ("Nevada
      Borrower"), secured by properties located in various states listed
      in Schedule A to the Indenture (each a 'Property"),
      which Loan is evidenced by two separate notes, a Class A Promissory Note
      in the original principal amount of $9,985,451.41, dated April 30, 1998
      (the 'Class A
      Note,"), and a Class B Promissory Note in the original principal
      amount of $41,949,038.22, dated April 30,1998 (the "Class B
      Note"); Loan Nos. M25819 &
  M400032935.

            

    

    

    

    Ladies
and Gentlemen:

    

    BACKGROUND

    

    As you are aware, Lennar Partners, Inc.
("Lennar") is the
Special Servicer of the above-referenced Loan as it relates to the Class B Note
now held by LaSalle Bank National Association formerly known as LaSalle National
Bank), as Trustee for BH Finance LLC, Credit Lease Loan Pass-Through
Certificates, Series 2000-A Pools V-IX (in such capacity, "Class B Lender"), having an
address of c/o BNY Asset Solutions, LLC, 600 E. Las Colinas Blvd., Suite 1300,
Irving, Texas 75039, Re: BH 2000-A, Loan No. M25819. Lennar is also is the
Special Servicer of the above-referenced Loan as it relates to the Class A Note
now zeld by LaSalle Bank National Association, a national banking association,
formerly known as LaSalle National Bank, as Trustee for the Holders of CAPCO
America Securitization Corporation, Commercial Mortgage Pass-Through
Certificates, Series 1998-D7 (in such capacity, "Class A Lender"; together with Class B
Lender, collectively, "Lender"), having an address
of c/o CapMark Services, LP, 245 Peachtree Center Avenue, N.E., Suite 1800,
Atlanta Georgia 30303-123 1, Re: CAPCO 98-D7, Loan No.
40-0032935.

    
      
         

      

      
        
          

        

      

      
         

        
          M-Six
Penvest II Business Trust

          Page

        

      

    

    You have advised us that USRA Leveraged
Net Lease, LLC, a Delaware limited liability company ("Seller"), the current owner
of all of the beneficial interests (the "Beneficial Interests") in
Borrower, desires to transfer (the 'Transfer") all of its
Beneficial Interests in Borrower to Motel Assets Holdings LLC, a Delaware
limited liability company, having an address of 5847 San Felipe, Suite 2600,
Houston, Texas 77057 ('Buyer").
Capitalized terms used herein, unless defined herein, shall have the
meanings given such terms in the Indenture referred to in Exhibit "A"
hereto.

    

    Borrower has requested Lender's consent
to the following actions (the "Requested Actions"), and
provided the terms and conditions of this Agreement are complied with to the
satisfaction of Lender, Lender has agreed to: (i) consent to (a) the liquidation
of M-Six Penvest II GP Corp. (NEV.) (the "Nevada Corporation"), the
owner of a 1% general partnership interest in Nevada Borrower, and the
distribution of such corporation's assets to Borrower, its sole stockholder, and
(b) the liquidation and distribution of Nevada Borrower's assets to its sole
partner, Borrower, (ii) consent to the Transfer of all of the Beneficial
Interests in Borrower from Seller to Buyer, and (iii) the assumption of all
obligations of Nevada Borrower under the Loan Documents by
Borrower.

    

    CONDITIONS TO LENDER'S
CONSENT

    

    
      	
              1.

            	
              Counsel
      for Buyer, Schianger, Mills, Mayer & Silver, L.L.P., shall have
      executed and delivered to Lender, its successors and assigns, its
      servicers and any rating agencies rating securities or certificates
      relating to the Loan (collectively, the "Addressees") a legal
      opinion acceptable to Lender and addressing, among other things, that
      after giving effect to the Requested Actions, the bankruptcy filing by or
      against Buyer would not cause the assets and liabilities of Borrower to be
      consolidated into the bankruptcy estate of
  Buyer.

            

    

    

    
      	
              2.

            	
              Counsel
      for Buyer, Erik Eriksson, Esq., shall have executed and delivered to the
      Addressees a legal opinion acceptable to Lender and addressing, among
      other things, that (a) this Agreement and the documents referenced in
      paragraphs 7, 8, 16 and 18 of these Conditions (collectively, the "Buyer Consent Documents")
      have been duly authorized, executed and delivered by Buyer and do
      not conflict with or violate (i) any of the organizational documents of
      Buyer, (ii) any United States federal or New York statute, rule or
      regulation applicable to Buyer or the Delaware Limited Liability Company
      Act or (iii) to counsel's knowledge, violate any order, writ, judgment,
      injunction or decree of any court or governmental authority applicable to
      Buyer; (b) Buyer has been duly formed and is validly existing in Delaware;
      (c) the Transfer of the Beneficial Interests shall not affect he continued
      enforceability against Borrower of those Loan Documents which
      are

            

    

    governed
by the applicable state law (a separate local counsel opinion in Nevada will be
required, and for all other states, counsel for Buyer can assume that the laws
in the applicable state are the same as the laws in the state in which counsel
for Buyer is licensed to practice law); (d) Buyer has the limited liability
company authority to execute, deliver and perform its obligations under this
Agreement and the other Buyer Consent Documents and the execution, delivery and
performance by Buyer of its obligations under this Agreement and the other Buyer
Consent Documents have been duly and validly authorized by all necessary limited
liability company action by Buyer, (e) this Agreement and each of the other
Buyer Consent Documents has been duly executed and delivered on behalf of Buyer,
and (f) to the extent that the laws of the State of New York govern this
Agreement and the other Buyer Consent Documents, this Agreement and the other
Buyer Consent Documents constitute a valid and binding obligation of Buyer
enforceable against it in accordance with its terms.

    

    
      	
              3.

            	
              Counsel
      for Seller, Proskauer Rose LLP, shall have executed and delivered to
      Addressees a legal opinion acceptable to Lender and substantially
      addressing, among other things, that (a) this Agreement, the documents
      referenced in paragraphs 7, 8 and 17 of these Conditions (collectively,
      the "Seller Consent
      Documents") have been duly authorized, executed and delivered by
      Seller and do not conflict with or violate (i) any of the organizational
      documents of Seller, (ii) any United States federal or New York statute,
      rule or regulation applicable to Seller or the Delaware Limited Liability
      Company Act or (iii) to counsel's knowledge, violate any order, writ,
      judgment, injunction or decree of any court or governmental authority
      applicable to Buyer, (b) Seller has been duly formed and is validly
      existing in the State of Delaware, (c) Seller has the limited liability
      company authority to execute, deliver and perform its obligations under
      this Agreement and the other Seller Consent Documents and the execution,
      delivery and performance by Seller of its obligations under this Agreement
      and the other Seller Consent Documents have been duly and validly
      authorized by all necessary limited liability company action by Seller,
      (d) this Agreement and each of the other Seller Consent Documents has been
      duly executed and delivered on behalf of Seller, and (e) to the extent
      that the laws of the State of New York govern this Agreement or the other
      Seller Documents, the Agreement and the other Seller Consent Documents
      constitute a valid and binding obligation of Seller enforceable against it
      in accordance with its terms.

            

    

    

    
      	
              4.

            	
              Counsel
      for Borrower (after the consummation of the Requested Actions), Erik
      Eriksson, Esq., shall have executed and delivered to Addressees a legal
      opinion acceptable to Lender and addressing, among other things, that (a)
      this Agreement and the documents referenced in paragraphs 11, 14, 19, 20,
      21 and 23 of these Conditions (collectively, the "Borrower Consent
      Documents", together with the Buyer Consent Documents and the
      Seller Consent Documents, the "Consent Documents") has
      been duly authorized, executed and delivered by Borrower (after
      consummation of the Requested Actions); and (b) the Loan Documents, to the
      extent enforceable against the Nevada Borrower, are enforceable against
      Borrower (after consummation of the Requested
  Actions).

            

    

    

    
      	
              5.

            	
               

            	
              Borrower
      shall have delivered to Lender a copy of any and all Title updates
      obtained by Borrower,

            

    

    
      	
               
      

            	
              Seller
      or Buyer in connection with the Requested
  Actions.

            

    

    

    
      	
              6.

            	
              Borrower
      shall have paid for and caused Chicago Title Insurance Company (the "Title Company") to
      issue and deliver to Lender endorsements (the "Endorsements"), to the
      extent available in the applicable jurisdiction, to the Title Company's
      Mortgagee Title Policies issued to Original Lender by the Title Company
      (the "Existing Loan
      Policies") (a) updating the effective date to the date of this
      Agreement; (b) reflecting no exceptions other than those contained in the
      Existing Loan Policies or the Endorsements; (c) affirmatively insuring
      that the validity and priority of the lien of the Mortgage are not
      affected by the Requested Actions, and (d) changing the name of the
      insured to the Lender herein.

            

    

    

    
      	
              7.

            	
              Borrower
      shall have delivered to Lender a fully executed and complete copy of that
      certain Purchase and Sale Agreement (the "PSA") dated as of
      November 12, 2002, between Seller, as Seller and Buyer, as
      Buyer.

            

    

    

    
      	
              8.

            	
              Borrower
      shall have delivered to Lender a fully-executed and complete copy of the
      Instrument of Assignment and Assumption from Seller in favor of Buyer in
      the same form attached as Schedule "B" to the
      PSA;

            

    

    

    
      	
              9.

            	
              Lender
      shall have received confirmations from the Rating Agencies that the
      Requested Actions will not result in a qualification withdrawal or
      downgrade of any then current ratings for BH Finance LLC Trust Credit
      Lease Loan Pass-Through Certificates, Series BH 2000-A Pools V IX or CAPCO
      America Securitization Corporation, Commercial Mortgage Pass-Through
      Certificates, Series 1998-D7;

            

    

    

    
      	
              10.

            	
              Lender
      shall have received written confirmation from RVI that the Loss Payee
      Endorsement remains in full force and effect after the Requested
      Actions;

            

    

    

    11.          Borrower
shall have delivered to Lender a fully executed and complete copy of the
Non-ForeignAffidavit executed by Seller in connection with the Requested
Actions;

    

    
      	
              12.

            	
              Borrower
      shall have delivered to Lender a fully executed and complete original (a)
      Tenant Estoppel Certificate substantially in the form same attached as
      Schedule "D" to
      the PSA, and (b) Guarantor Estoppel Certificate substantially in the form
      same attached as Schedule
      "E" to the PSA;

            

    

    

    
      	
              13.

            	
              Borrower
      shall have delivered to Lender current Certificates of Legal Existence for
      Borrower, Seller and Buyer issued by the Office of the Secretary of State
      of the State of Delaware (the "Delaware
      Secretary");

            

    

    

    
      	
              14.

            	
              Borrower
      shall have delivered to Lender a Certificate of Borrower Trustee attaching
      (a) a current certified copy of the Certificate of Trust of Borrower, and
      any amendments thereto, issued by the Delaware Secretary; (b) a true,
      correct and complete copy of the Trust Agreement of Borrower dated April
      22, 1998, and any amendments thereto; and (c) a current Certificate of
      Legal Existence for Borrower Trustee issued by the Delaware
      Secretary.

            

    

    

    
      	
              15.

            	
              Seller
      shall have delivered to Lender a Certificate of U.S. Realty Advisors LLC,
      a New York limited liability company ("US Realty"), the Managing Member of
      Seller, dated as of the date of closing of the Requested Actions (the
      "Closing"), from
      US Realty, (a) certifying, among other things, that (i) the Limited
      Liability Company Agreement of Seller, dated as of February 26, 1998, as
      amended through the date of the original closing of the Loan, has not been
      further amended, is in full force and effect and attaching a copy with
      certain financial terms redacted therefrom to the Certificate; and (ii)
      the sale of the Beneficial Interests to Buyer has been duly authorized;
      and (b) attaching (i) a current certified copy of the Certificate of
      Formation of Seller, and any amendments thereto, issued by the Delaware
      Secretary and (ii) Action by Written Consent of US Realty authorizing all
      officers of US Realty to execute this Agreement and the other Seller
      Consent Documents on behalf of Seller without the consent of,
      any other members of Seller;

            

    

    

    
      	
              16.

            	
              Buyer
      shall have delivered to Lender a Certificate of Member of Buyer dated as
      of the date of Closing executed by an officer of Buyer (a) attaching a
      fully executed copy of the Limited Liability Company Agreement of Buyer,
      (b) certifying, among other things, that
      the purchase of the Beneficial Interests from Seller has been duly
      authorized; and (c) attaching (i) a current certified copy of the
      Certificate of Formation of Buyer, and any amendments thereto, issued by
      the Delaware Secretary and (ii) resolutions of Buyer authorizing Erik
      Eriksson, as Vice President or J. Richard Rosenberg, as Vice President and
      Chief Financial Officer of Buyer to execute this Agreement and the other
      Buyer Consent Documents on behalf of Buyer without the joinder of any
      other party;

            

    

    

    
      	
               
      

            	
              17.

            	
              Seller
      shall have delivered to Lender a direction of beneficiary ("Seller Direction of
      Beneficiary") dated as of the date of Closing from Seller, as
      beneficiary of Borrower, to Wilmington Trust Company, a Delaware banking
      corporation, as Trustee of Borrower ("Borrower Trustee"),
      directing Borrower Trustee to execute this
    Agreement;

            

    

    

    
      	
               
      

            	
              18.

            	
              Buyer
      shall have delivered to Lender a direction of beneficiary ("Buyer Direction of
      Beneficiary") dated as of the date of Closing from Buyer, as
      beneficiary of Borrower, to the Borrower Trustee, directing Borrower
      Trustee to execute this
      Agreement;

            

    

    

    
      	
              19.

            	
              Borrower
      shall have delivered to Lender a copy of the fully executed notice to
      Borrower Trustee of change of beneficiary and address for notice purposes
      under Borrower's Trust Agreement;

            

    

    

    
      	
              20.

            	
              Borrower
      shall have delivered to Lender current Certificates of Authority to
      Transact Business and/or Good Standing Certificates issued by Secretaries
      of State of Ohio, Michigan, Arizona, Kentucky, California and West
      Virginia;

            

    

    

    
      	
              21.

            	
              Borrower
      shall have delivered to Lender an original of the fully executed notice to
      Lender of change of beneficiary and address for notice purposes under the
      Loan Documents;

            

    

    

    
      	
              22.

            	
              Borrower
      shall have delivered to Lender a true and correct copy of the new Fee
      Agreement between Buyer and Borrower
Trustee

            

    

    

    
      	
              23.

            	
              Borrower
      (after consummation of the Requested Actions) shall have delivered to
      Lender true, correct and complete executed copies of all documents
      executed in connection with the liquidation of the Nevada Corporation and
      the Nevada Borrower;

            

    

    

    
      	
              24.

            	
              Borrower
      shall deliver to Chicago Title Insurance Company or one of its agents for
      filing/recording UCC-3 Amendments to Financing Statements reflecting the
      change of address for Borrower and amending the description of the
      collateral described in the UCC-1 Financing Statements to conform to the
      description attached hereto as Exhibit "
      B";

            

    

    

    
      	
              25.

            	
              The
      parties shall have paid to Lender a consent fee (the "Consent Fee") of
      $15,000, $2,500 of which Lennar has previously received as a
      non-refundable deposit to be applied towards the Consent Fee at the
      closing of the Requested Actions;

            

    

    

    
      	
              26.

            	
              Borrower
      shall have paid any and all reasonable out-of-pocket costs and expenses
      incurred by Lender and/or Lennar in connection with this transaction,
      including, but not limited to Lender's and Lennar's reasonable attorneys'
      fees (collectively, with the Consent Fee, the "Consent Expenses"),
      $25,000 of which Lennar's attorneys have received as a
      non-refundable deposit to be applied towards the Consent Expenses at the
      closing of the Requested Actions. Borrower acknowledges and agrees that
      none of the Consent Expenses will be applied to reduce the Indebtedness
      (as defined below) owed to Lender.

            

    

    

    ACKNOWLEDGMENTS,
AGREEMENTS,

    REPRESENTATIONS AND
WARRANTIES

    

    As a material inducement for Lender
to grant its consent to the Requested Actions as provided herein, Borrower,
Seller, and Buyer, each on behalf of itself as applicable, represents, warrants
and acknowledges and agrees to and with Lender and Lennar as follows as of the
date of closing of the Requested Actions and subject to the limitation of
liability provisions set forth in Section4.3(z) of the Indenture:

    

    
      	
              1.

            	
              Each
      party confirms that all of facts (except those relating to the
      securitization of the Loan) set forth in the BACKGROUND Section of this
      Agreement that pertain to it are true and correct and incorporated herein
      by this reference;

            

    

    

    
      	
              2.

            	
              Borrower
      confirms that Borrower is a duly organized, validly existing business
      trust in good standing under the laws of the State of Delaware. Borrower
      Trustee has the full authority to execute this Agreement on behalf of
      Borrower without the joinder of any other trustee or beneficiary of
      Borrower or any other party. The execution and delivery of, and
      performance under, this Agreement by Borrower has been duly and properly
      authorized pursuant to all requisite trust action and does not (i) violate
      any provision of any law, rule, revelation, order, writ, judgment,
      injunction, decree, determination or award presently in effect having
      applicability to Borrower or the certificate of trust or the trust
      agreement of Borrower. or (ii) provided that the representation made by
      Buyer in Section 3.02(d) of the PSA is true, result in a breach of or
      constitute or cause a default under any indenture, agreement, lease or
      instrument to which Borrower is a
party;

            

    

    

    
      	
              3.

            	
              Seller
      confirms that Seller is a duly organized, validly existing limited
      liability company in good standing under the laws of the State of
      Delaware. US Realty is the managing member of Seller. US Realty, acting
      alone without the consent of any other manager or member of Seller or any
      other party, has the power and authority to execute this Agreement and the
      other Seller Consent Documents on behalf of and to duly bind Seller under
      this Agreement and the other Seller Consent Documents. The execution and
      delivery of, and performance under, this Agreement and the other Seller
      Consent Documents by Seller has been duly and properly authorized pursuant
      to all requisite company action and does not (i) violate any provision of
      any law, rule, regulation, order, writ, judgment, injunction, decree,
      determination or award presently in effect having applicability to Seller
      or the certificate of formation or the limited liability company agreement
      of Seller, or (ii) provided the representation made by Buyer is Section
      3.02(d) of the PSA is true and correct, result in a breach of or
      constitute or cause a default under any indenture, agreement, lease or
      instrument to which Seller is a
party;

            

    

    

    
      	
              4.

            	
              Seller
      confirms that US Realty is a duly organized, validly existing limited
      liability company in good standing under the laws of the State of New
      York.

            

    

    

    
      	
              5.

            	
              Buyer
      is a duly organized, validly existing limited liability company in good
      standing under the laws of the State of Delaware. Salmon Creek LLC, a
      Delaware limited liability company ("Member") is the sole
      member of Buyer. Erik Eriksson, as Vice President or J. Richard Rosenberg,
      as Vice President and Chief Financial Officer of Buyer, each acting alone
      without the joinder of the other or of any other officer, manager or
      Member of Buyer or any other party, has the power and authority to execute
      this Agreement and the other Buyer Consent Documents on behalf of and to
      duly bind Buyer under this Agreement and the other Buyer Consent
      Documents. The execution and delivery of, and performance under, this
      Agreement and the other Buyer Consent Documents by Buyer has been duly and
      properly authorized pursuant to all requisite company action and will not
      (i) violate any provision of any law, rule, regulation, order, writ,
      judgment, injunction, decree, determination or award presently in effect
      having applicability to Buyer or the certificate of formation or the
      limited liability company agreement of Buyer or (ii) result in a breach of
      or constitute or cause a default under any indenture, agreement, lease or
      instrument to which Buyer is a
party.

            

    

    

    
      	
              6.

            	
              Each
      party confirms that it has the requisite power and authority and has taken
      all necessary limited liability company, corporate or other action to
      execute and deliver and enter into the Consent Documents to which it is a
      party;

            

    

    

    
      	
              7.

            	
              Subject
      to the limitation of liability provisions set forth in Section 4.3(z) of
      the Indenture, Borrower hereby assumes all of the obligations of Nevada
      Borrower, as grantor, mortgagor, owner, borrower, trustor, indemnitor,
      guarantor, or maker, as the case may be, under the Loan Documents to the
      same extent as if Borrower had signed such instruments. Borrower agrees to
      comply with and be bound by all of the terms, covenants, agreements,
      conditions and provisions set forth in the Loan Documents, to which Nevada
      Borrower was bound as set forth in the Loan
  Documents.

            

    

    

    
      	
              8.

            	
              Based
      solely on opinions of local counsel issued in connection with the Loan
      made by Original Lender, Borrower confirms that Borrower was not required
      by law to become qualified to transact business as a foreign entity in the
      States of Missouri and Texas. To the best of Buyer's knowledge, Borrower
      is still not required to qualify to do business in these States to own the
      Properties located in such states;

            

    

    

    
      	
              9.

            	
              That
      in connection with the Requested Actions, Borrower's organizational
      documents shall not be modified in any respect other than to change the
      beneficiary from Seller to Buyer and as otherwise contemplated by the
      Requested Actions as they relate to the Nevada
  Borrower;

            

    

    

    
      	
              10.

            	
              Borrower,
      and by its execution hereof, Lender confirms that to Lender's actual
      knowledge: (a) as of ________________, 2002, the principal balance of the
      Class A Note was $________________, and   the principal
      balance of the Class B Note was $________________,  and (b) the
      current rate of interest on the Class A Note and the Class B Note is 7.03
      % (the "Indebtedness").
      Lender confirms that to Lender's actual knowledge, (i) all interest
      and principal payments due under the Loan Documents through and including
      ____________ have been paid and the next payment of interest and principal
      is due __________________

            

    

    
      	
               

            	
              ,
      (ii) Lender has not issued any written notices of default to Borrower
      which have not been cured, and (iii) there are no existing material
      defaults under the Loan Documents;

            

    

    

    
      	
              11.

            	
              Borrower
      confirms that to its actual knowledge, there are no indemnities or
      guaranties with respect to any recourse obligations given by Seller or any
      entity which controls Seller, is controlled by Seller or is under common
      control with Seller or any pledges of Beneficial Interests in Borrower,
      given by Seller in favor of Original Lender or any other person or entity
      in connection with the Loan;

            

    

    

    
      	
              12.

            	
              Borrower
      confirms that notwithstanding the consummation of the Requested Actions,
      all of the terms, covenants and conditions of the Loan Documents shall
      continue in full force and effect, unmodified (except that Borrower has
      assumed the obligations of Nevada Borrower pursuant to the terms of this
      Agreement) and enforceable against Borrower, and Borrower hereby confirms
      and reaffirms its liability under the Loan Documents, subject to the
      limitation of liability provisions set forth in Section 4.3(z) of the
      Indenture;

            

    

    

    
      	
              13.

            	
              Borrower
      confirms that the Lease Agreement (the "Lease") dated as of
      April 30, 1998, between Borrower as Lessor and Tenant as Lessee is still
      in full force and effect and has not been modified or amended in any
      respect Borrower confirms that Borrower has not entered into any other
      leases for all or any portion of any Property, other than the Lease.
      Borrower confirms that Borrower has not received written notice from
      Tenant of any landlord/lessor default under the Lease. Borrower has not
      received any prepaid rents or given any concessions for free or reduced
      rent under the Lease not otherwise set forth in the Lease. Borrower also
      has not sent Tenant any notice of default. To Borrower's actual knowledge,
      no Property is presently left unoccupied and unattended for a period of
      thirty (30) days (other than for renovation or reconstruction or during
      periods of seasonal closure). Borrower confirms that, provided that the
      representation made by Buyer in Section 3.02(d) of the PSA is true, the
      Requested Actions are not prohibited by the terms of the Lease, and Tenant
      has no right to consent thereto;

            

    

    

    14.           Buyer
confirms that the representation made by Buyer in Section 3.02(d) of the PSA is
true

    

    
      	
              15.

            	
              Borrower
      (after consummation of the Requested Actions) and Buyer shall comply with
      all of the facts and assumptions contained in that certain
      nonconsolidation opinion letter, dated as of the date hereof, delivered by
      Buyer's counsel, Schlanger, Mills, Mayer. & Silver, L.L.P., in
      connection with the Requested Actions (the "Non-Consolidation Opinion"),
      including but not limited to, any exhibits and certificates
      attached thereto, all of which facts and assumptions are true and correct.
      Borrower (after consummation of the Requested Actions) and Buyer shall
      cause each entity other than Borrower (after consummation of the Requested
      Actions) or Buyer with respect to which an assumption, if any, is made in
      the Non-Consolidation Opinion, including but not limited to, any exhibits
      and certificates attached thereto, to comply with each of the assumptions
      made with respect to it in the Non-Consolidation Opinion, including, but
      not limited to, any exhibits and certificates attached thereto. Borrower
      (after consummation of the Requested Actions) and Buyer further covenant
      and agree not to amend, modify or supplement, or seek to amend, modify or
      supplement any provisions of the Loan Documents or its organizational
      documents that would affect the separateness of Borrower (after
      consummation of the Requested Actions) or any of the assumptions made in
      the Non-Consolidation Opinion;

            

    

    

    
      	
              16.

            	
              Prior
      to the consummation of the Requested Actions, Borrower confirms that
      Borrower is not a party to any agreement with a third party or affiliated
      property manager for any of the Properties. After the consummation of the
      Requested Actions, Borrower confirms that Borrower shall not enter into
      any agreement with a third party or affiliated property manager for any of
      the Properties;

            

    

    

    
      	
              17.

            	
              Buyer
      confirms that Buyer did not finance all or any portion of the purchase
      price of the Beneficial Interests through Seller or any third party
      financing, other than acquiring the Beneficial Interests subject to the
      obligations relating to the Loan, and did not and does not intend to
      pledge all or any portion of the Beneficial Interests of Borrower in
      connection with the Requested Actions or
  otherwise;

            

    

    

    
      	
              18.

            	
              Borrower
      confirms that in connection with the Requested Actions, there will be no
      change in the location of or the account number for the Deposit Account or
      the Central Account (as such terms are defined in the Central Account
      Agreement described on Exhibit "A" attached hereto); however, from and
      after the date hereof, the "Borrower Excess Property Income Subaccount"
      (as such term also defined in the Central Account Agreement) shall be
      disbursed to the following account:

            

    

    

    Wells Fargo Bank

    San Francisco, CA

    ABA# 121-000-248

    Credit: Salmon Creek

    5847 San Felipe

    Suite 2600

    Houston, TX

    A/C# 4047-10-1944

    

    
      	
              19.

            	
              Borrower
      confirms that notwithstanding the consummation of the Requested Actions,
      Borrower continues to be and has, at all times since the original closing
      of the Loan, been a Single Purpose Entity as such term is defined in the
      Indenture in compliance with Section 2.10 of the
  Indenture;

            

    

    

    20.           Seller
is not a Single Purpose Entity as defined in Section 2.10 of the
Indenture;

    

    
      	
              21.

            	
              Borrower
      confirms the Properties securing the Loan are not subject to any type of
      franchise, license, use or similar type of agreement held by
      Borrower;

            

    

    

    
      	
              22.

            	
              Other
      than the consent of Lender or any consent that has been obtained, no other
      person or entity is required to consent to the Requested
      Actions;

            

    

    

    
      	
              23.

            	
              Borrower
      confirms that Borrower has no defenses, offsets or counterclaims to the
      enforceability of the Loan Documents and waives and releases Lender,
      CapMark Services, L.P., BNY Asset Solutions, LLC and Lennar and each of
      their respective officers, directors, partners, members, employees,
      attorneys and agents (collectively, the "Released Parties") from
      and against, any and all claims, both known and unknown, that Borrower or
      any trustee or beneficiary or affiliate of Borrower now has or heretofore
      had against any of the Released Parties relating to the Loan, the Loan
      Documents or the Indebtedness from the beginning of time through the date
      of this Agreement;

            

    

    

    
      	
              24.

            	
              That
      there are no other documents evidencing the Requested Actions other than
      those described herein or in the PSA or relating to the liquidation of the
      Nevada Corporation and Nevada
Borrower;

            

    

    

    
      	
              25.

            	
              Buyer
      confirms that no new or updated environmental reports, surveys or
      engineering or other third party inspection reports were obtained by or on
      behalf of Buyer, except for those delivered to Lennar on November 7,
      2002;

            

    

    

    
      	
              26.

            	
              Borrower
      has no actual knowledge that the Borrower's warranties and representations
      set forth in the Loan Documents, do not remain true, correct and complete
      as of the date of the Requested
Actions;

            

    

    

    
      	
              27.

            	
              Borrower,
      Buyer and Seller each confirm that it has no present intent to file any
      voluntary petition, or in any manner seek any proceeding for relief,
      protection, reorganization, liquidation, dissolution or similar relief for
      debtors under any local, state, federal or other bankruptcy or insolvency
      law or laws providing relief for
debtors.

            

    

    

    The
parties acknowledges that the representations, warranties, acknowledgments and
agreements made by Borrower, Seller or Buyer, as the case may be, in this
section are intended solely for the benefit of Lender and it is not the
intention of any of the parties to confer third-party beneficiary rights upon
any other party or any other person.

    

    It is
expressly understood and agreed by the parties hereto that (a) this Agreement is
executed and delivered by Wilmington Trust Company, not individually or
personally but solely as trustee of Borrower, in the exercise of the powers and
authority conferred and vested in it, (b) each of the representations,
undertakings and agreements herein made on the part of Borrower is made and
intended not as personal representations, undertakings and agreements by
Wilmington Trust Company but is made and intended for the purpose of binding
only Borrower, (c) nothing herein contained shall be construed as creating any
liability on Wilmington Trust Company, individually or personally, to perform
any covenant either expressed or implied contained herein, all such liability,
if any, being expressly waived by the parties hereto and by any Person claiming
by, through or under the parties hereto and (d) under no circumstances shall
Wilmington Trust Company be personally liable for the payment of any
indebtedness or expenses of Borrower or be liable for the breach or failure of
any obligation, representation, warranty or covenant made or undertaken by
Borrower under this Agreement or any other related documents.

    

    CONSENT

    

    Upon
satisfaction of the conditions set forth herein, which shall be evidenced by
Lender's execution and delivery hereof, Lender shall be deemed to have, and
hereby does consent to the Requested Actions.

    

    MISCELLANEOUS

    

    
      	
              1.

            	
              Borrower
      and Lender acknowledge and agree that, except as specifically provided
      herein, nothing in this Agreement is intended to be and should not be
      construed as a modification or amendment of the Loan or the Loan
      Documents

            

    

    

    
      	
              2.

            	
              For
      purposes of Section 5.1 of the Indenture and all other notice provisions
      in any of the other Loan Documents, after the consummation of the
      Requested Actions, all notices to Owner should be sent to Borrower at c/o
      Motel Assets Holdings LLC, 5847 San Felipe, Suite 2600, Houston, Texas
      77057, Attention: Vice President and Chief Financial Officer, Fax:
      713-267-3703, with a copy to: Motel Assets Holdings LLC, 5847 San Felipe,
      Suite 2600, Houston, Texas 77057, Attention: Vice President/Senior
      Assistant General Counsel, Fax: 713-267-3702. In addition, all notices to
      Lender should be addressed and sent to the addresses set forth in the
      first paragraph of this Agreement.

            

    

    

    
      	
              3.

            	
              This
      Agreement may be executed in any number of counterparts, each of which
      shall be effective only upon delivery and thereafter shall be deemed an
      original, and all of which shall be taken to be one and the same
      instrument, fir the same effect as if all parties hereto had signed the
      same signature page.

            

    

    

    
      	
              4.

            	
              A
      determination that any provision of this Agreement is unenforceable or
      invalid shall not affect the enforceability or validity of any other
      provision, and any determination that the application of any provision of
      this Agreement to any person or circumstance is illegal or unenforceable
      shall not affect the enforceability or validity of such provision as it
      may apply to any other persons or
circumstances.

            

    

    

    
      	
              5.

            	
              By
      consenting to the foregoing matters, or accepting delivery of any item
      described, neither Lennar nor Lender shall be deemed to be a mortgagee in
      possession or to have warranted, consented to, or affirmed the
      sufficiency, legality, effectiveness or legal effect of any such matters
      or items or of any term, provision or condition
  thereof.

            

    

    

    
      	
              6.

            	
              Lender's
      consent to the Requested Actions contained herein is limited solely to the
      Requested Actions described herein, and is not and should in no manner be
      deemed a waiver or consent of similar actions or transfers or other
      restrictions for any future similar actions or transfers or other
      prohibited matters that may be prohibited or restricted by the terms of
      Section 2.16 of the Indenture or any other provisions of the Loan
      Documents.

            

    

    

    
      	
              7.

            	
              Borrower
      acknowledges and agrees that this Agreement shall be deemed to be one of
      the Loan Documents defined in the Indenture and therefore, an uncured
      breach by Borrower of any agreement or covenant contained herein or if any
      representation, statement, report or certificate made or given by Borrower
      to Lender in connection herewith is not true and correct in any material
      respect shall constitute an Event of Default under the same circumstances
      as a breach thereof would constitute an Event of Default under the
      Indenture.

            

    

    

    
      	
              8.

            	
              EACH
      OF BORROWER, BUYER AND SELLER AGREES NOT TO ELECT A RIGHT TO TRIAL BY JURY
      OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY
      JURY FULLY TO THE
      EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO
      THIS AGREEMENT, THE LENDER OR THE OTHER LOAN DOCUMENTS OR ANY CLAIM,
      COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER
      OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY EACH OF
      BORROWER, BUYER AND SELLER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH
      INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO TRIAL BY JURY WOULD
      OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO PILE A COPY OF THIS.
      PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY
      BORROWER, SELLER AND BUYER.

            

    

    

    

    [THIS
REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Please acknowledge your acceptance of
the terms of this Agreement by countersigning two originals where indicated and
returning both original executed Agreements, together with the documents
required by this Agreement and the Consent Expenses to our attorneys at Bilzin
Sumberg Baena Price & Axelrod LLP, 2500 First Union Financial Center, 200
South Biscayne Boulevard, Miami Florida 33131-2336, Attn: Audrey Ellis,
Esq.

    

    [Signature
pages follow of Lennar Partners, Inc., as attorney-in-fact for LaSalle Bank
National

           
Association, as Trustee for BH Finance LLC Trust, Credit Lease Loan Pass-Through
Certificates,

     Series
2000-A Pools V-IX; Lennar Partners Inc., as attorney-in-fact- for LaSalle Bank
National

     Association,
as Trustee for Capco America Securitization Corporation, Commercial
Mortgage

     Pass-Through
Certificates, Series 1998-D7; William Wade and Wilmington Trust Company
as

            
Trustees for the M-Six Penvest II Business Trust; William Wade as Trustee for
the M-Six Penvest

    II
Business Trust (LA); USRA Leveraged Net Lease, LLC; and Motel Assets Holdings
LLC]ex1019-10ka2007.htm

    
 

    Exhibit
10.19

    LOAN
AGREEMENT

    dated as
of November 19 , 2002

    between

    BELTWAY
ASSETS LLC,

    as
Borrower

    and

    LEGG
MASON REAL ESTATE SERVICES, INC.,

    as
Lender

    

    

    
      
         

      

      
        
          

        

      

       

    

    LOAN
AGREEMENT

    

    THIS LOAN
AGREEMENT (this “Loan
Agreement”), dated as of November 19 , 2002, between BELTWAY ASSETS LLC,
a Delaware limited liability company having an address of 5847 San Felipe, Suite
2600, Houston, Texas 77057 (“Borrower”) and LEGG MASON
REAL ESTATE SERVICES, INC., a Pennsylvania corporation, having an address at 100
Light Street, 32nd Floor,
Baltimore, Maryland 21202 (the “Lender”).

    

    

    BACKGROUND
RECITALS

    

    A.            Reference
is made to the Loan Agreement Standard Terms and Conditions for this Loan
Agreement attached as Exhibit
A hereto
(the “Standard Terms and
Conditions”). The terms of this Loan Agreement are set forth in the
Standard Terms and Conditions.

    

    B.            Lender
has made a loan to Borrower in the principal amount of Thirty-One Million
Nineteen Thousand Two Hundred Fifty Dollars ($31,019,250.00) (the “Loan”) evidenced by the Note
and secured, in part, by the Security Documents.

    

    C.           Borrower
owns the Mortgaged Property described in the Deed of Trust, Security Agreement,
Assignment of Leases and Rents and Fixture Filing, executed effective as of the
date hereof, from Borrower for the benefit of Lender (the “Indenture”).

    

    D.           Borrower
has leased the Mortgaged Property to Tenant pursuant to the Lease.

    

    E.            Lender
is willing, on the terms and subject to the conditions set forth in this Loan
Agreement, to make the Loan to Borrower.

    

    NOW,
THEREFORE, in consideration of the premises, the agreements contained in this
Loan Agreement, the making of the Loan and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

    

    Section
1.                     Background. The
Background Recitals above are incorporated by

    reference.

    

    Section
2.                     Standard Terms and
Conditions. The Standard Terms and Conditions are incorporated by
reference.

    
      	
               
      

            	
              [SIGNATURES
      APPEAR ON THE FOLLOWING PAGES]

            

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Borrower has duly executed and delivered this Loan
Agreement as of the date first above written.

    

    

    BORROWER:

    

    BELTWAY
ASSETS LLC,

    a
Delaware limited liability company

    

    
      	
              By:

            	
                                                                       
         /s/  J. Richard
  Rosenberg

            

    

    Name:  J.
Richard Rosenberg

    Title:   Vice
President and Chief Financial Officer

    
      	
               
      

            	
               [SIGNATURES
      CONTINUE ON FOLLOWING PAGE]

            

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Lender has duly executed and delivered this Loan Agreement
as of the date first above written.

    

    

    LENDER:

    

    LEGG
MASON REAL ESTATE SERVICES, INC., a Pennsylvania corporation

    

    
      	
              By:

            	
                                                                         
         /s/  Judith M.
  Shewbridge

            

    

     Name:   Judith
M. Shewbridge

    Title:     Assistant
Vice President

     

    

    

    

    
      
         

      

      
        
          

        

      

       

    

    

     

    

     

    

     

    EXHIBIT A

     

     

    LOAN
AGREEMENT

     

    STANDARD
TERMS AND CONDITIONS

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBITS

     
A          Form of
Note

    
      	
               
      

            	
              B

            	
              Other
      Properties

            

    

     
C           Beneficial
Owner Instrument of Accession and Assumption

    
      	
               
      

            	
              D

            	
              Certificate
      of Compliance and Release

            

 
E           Instrument of
Accession and Assumption

     
F           Certificate
of Compliance and Release

    

    APPENDIX
A - Rules of Construction and Definitions

    
      
         

      

      
        
          

        

      

       

    

    ARTICLE
1

    DEFINITIONS
AND RULES OF CONSTRUCTION

    

    

    Section
1.01                               Definitions. For
purposes of this Loan Agreement, capitalized terms used in this Loan Agreement
and not otherwise defined in the body of this Loan Agreement have the meanings
ascribed to them in Appendix A,
unless the context otherwise requires, and the rules of construction set
forth in Appendix A
shall apply thereto and hereto.

    

    Section
1.02                               Resolution of Drafting
Ambiguities. Each of the parties hereto acknowledges that it was
represented by counsel in connection with the Loan Documents to which it is a
party that it and its counsel reviewed and revised the Loan Documents and that
any rule of construction to the effect that ambiguities are to be resolved
against the drafting party will not be employed in the interpretation of the
Loan Documents.

    

    ARTICLE
2

    THE
NOTE

    

    

    Section
2.01                               Form of Note. On the
Closing Date, Borrower will execute and deliver the Note to Lender substantially
in the form set out in Exhibit
A.

    

    Section
2.02                               Payment of Debt.
Borrower shall duly and punctually pay the Debt in accordance with the terms
hereof and of the Note, as and when due and payable.

    

    Section
2.03                               [Intentionally
Omitted.]

    

    Section
2.04                               Prepayment of the
Note. The Debt may be prepaid only if and as permitted by the Note and
this Loan Agreement. Borrower may not prepay the Note, in whole or in part,
except on or after July 9, 2024 during which period Borrower may prepay the Note
in whole, but not in part, at par and without payment of the Prepayment
Consideration. In addition, if a Permitted Lease Termination Event occurs, then
Borrower must prepay the Note as follows:

    

    If a
Destruction occurs that results in a Permitted Lease Termination Event, then
Borrower must prepay the entire outstanding principal balance of the Note,
together with accrued and unpaid interest thereon, and all other amounts due and
owing under the Note, this Loan Agreement and the Security
Documents.

    

    Section
2.05                               Defeasance of the
Note. Borrower may defease the Note in whole but not in part at any time
after the Lockout Period and before the Maturity Date, but only on the first day
of the month after not less than sixty (60) days’ prior written notice to
Lender, subject to the following:

    

    (a)          At
any time after the Lockout Period, and provided no Event of Default exists,
Borrower may obtain the release of the Mortgaged Property from the Lien of the
Indenture and the other Security Documents upon the satisfaction of the
following conditions precedent (such release in accordance with the terms hereof
is called a “Defeasance”):

    

    (i)           not
less than sixty (60) days’ prior written notice to Lender of Borrower’s intent
to effect a Defeasance specifying a Release Date;

    

      
(ii)           the
payment to Lender of the Monthly Payment due on the Release Date;

    

    (iii)          
the payment to Lender on the Release Date of all other sums, not including
scheduled interest or principal payments, due under the Note, this Loan
Agreement and the Security Documents the amount of which Lender shall notify
Borrower of not less than 5 days before the Release Date;

    

    (iv) the payment to Lender on the
Release Date of the Defeasance Deposit;
and

    

    (v)           the
delivery to Lender on the Release Date of:

    

    (A)            a
pledge and security agreement, in form and substance satisfactory to Lender,
creating a first priority Lien in favor of Lender on the Defeasance Deposit and
the U.S. Obligations purchased on behalf of Borrower with the Defeasance Deposit
in accordance with the provisions of this paragraph (the “Security
Agreement”);

    

    (B)          a
release of the Mortgaged Property from the Lien of the Indenture and the other
Security Documents (for execution by Lender) in a form appropriate for the
jurisdiction in which the Mortgaged Property is located;

    

    (C)          a
duly executed certificate of Borrower certifying that the requirements set forth
in this subparagraph (a) have been satisfied;

    

    (D)          an
opinion of counsel for Borrower in form satisfactory, or other documentation
satisfactory, to Lender stating, among other things, that (1) Lender has a
perfected first priority security interest in the Defeasance Deposit and the
U.S. Obligations purchased by Lender on behalf of Borrower, (2) the Security
Agreement is enforceable against Borrower in accordance with its terms, (3)
there exist no material adverse tax consequences to Lender in connection with
the Defeasance, and (4) the Defeasance will not violate or have any adverse
consequences under any applicable federal securities laws;

    

    (E)          such
other certificates, documents or instruments as Lender may reasonably request;
and,

    

    (F)          payment
to Lender by Borrower of all reasonable third party costs and expenses incurred
by Lender in connection with the Defeasance hereunder including, but not limited
to, reasonable fees of attorneys and accountants.

    

    In
connection with the conditions set forth in subparagraph (a)(v) above, Borrower
hereby appoints Lender as its agent and attorney-in-fact se the Defeasance
Deposit to purchase U.S. Obligations which provide payments on or before, but as
close as possible to, all successive scheduled payment dates after the Release
Date upon which Monthly Payments are required under the Note (including the
amounts due on the Maturity Date) and in amounts equal to the Monthly Payments
due on such dates and on the assumed Maturity Date under the Note (the “Scheduled Defeasance Payments”).
Borrower, pursuant to the Security Agreement or other appropriate
document, shall authorize and direct that the payments received from the U.S.
Obligations must be made directly to Lender and applied to satisfy the
obligations of Borrower under the Note.

     

    (b)           Upon
compliance with the requirements of this Section 2.05, Lender will release the
Mortgaged Property from the Lien of the Indenture and the other Security
Documents and the pledged U.S. Obligations will be the sole source of collateral
securing the Note. Any portion of the Defeasance Deposit in excess of the amount
necessary to purchase the U.S. Obligations required by subparagraph (a) above
and to satisfy Borrower’s obligations under this subparagraph (b) will be
remitted to Borrower with the release of the Mortgaged Property from the Lien of
the Indenture and the other Security Documents. In connection with such release,
Lender will establish or designate a successor entity (the “Successor Borrower”) and
Borrower must transfer and assign all obligations, rights and duties under and
to the Note together with the pledged U.S. Obligations to such Successor
Borrower. Such Successor Borrower must assume the obligations under the Note and
the Security Agreement and upon such assumption Borrower will be relieved of its
obligations thereunder. Borrower must pay $1,000 to any such Successor Borrower
as consideration for assuming the obligations under the Note and the Security
Agreement. No other assumption fee will be payable upon a transfer of the Note
in accordance with this paragraph, but Borrower must pay all reasonable third
party costs and expenses incurred by Lender, including the reasonable expenses
of Lender’s attorneys, incurred in connection with this paragraph.

     

    

    Section
2.06                                Default Interest and Late
Charge. If an Event of Default exists (including Borrower’s failure to
pay the Debt in full on the Maturity Date), Lender will be entitled to receive,
and Borrower must pay, interest at the Default Rate on the entire unpaid
principal sum and any other amounts due under this Loan Agreement, the Note and
the Security Documents. The Default Rate will be computed from the date the
default occurs until the earlier of the date the default is cured or the actual
receipt and collection of the Debt. This charge will be added to the Debt, and
will be deemed secured by the Indenture and other Security Documents. In
addition, if any portion of the Debt is not paid within ten (10) days after it
is due, Borrower must pay to Lender, upon demand, a late fee equal to four
percent (4%) (or the maximum amount permitted by applicable Legal Requirements,
whichever is less) on such unpaid sum to defray the expenses incurred by Lender
in handling and processing such delinquent payment and to compensate Lender for
the loss of the use of such delinquent payment and such amount will be secured
by the Indenture and the other Security Documents. This paragraph, however, will
not be construed as an agreement or privilege to extend the date to pay the
Debt, or as a waiver of any other right or remedy accruing to Lender because of
the occurrence of any Event of Default.

    

    Section
2.07                                Registration and Transfer of
Note. Lender agrees with Borrower that Lender shall keep a register (the
“Note Register”) in
which provisions shall be made for the registration of the Note and the
registration of transfers of the Note. The Certificate Trustee shall keep the
Note Register at its corporate trust, and the Certificate Trustee is hereby’
appointed “Note Registrar” to register the Note and transfers of the
Note.

    

    Section
2.08                                Mutilated, Destroyed, Lost
or Stolen Note. If the Note shall become mutilated, destroyed, lost or
stolen, Borrower shall, upon the written request of the Lender, execute and
Borrower shall authenticate and deliver, in replacement thereof, a new Note in
the same principal amount, dated the date of the Note being replaced. If the
Note being replaced has become mutilated, such Note shall be surrendered to
Borrower. If the Note being replaced has been destroyed, lost or stolen, the
Lender shall furnish to Borrower such security or indemnity as Borrower may
reasonably require to save Borrower harmless and shall deliver evidence
reasonably satisfactory to Borrower of the destruction, loss or theft of the
Note and of the ownership thereof. Upon the execution and delivery of a new Note
pursuant to this Section 2.08, Borrower may require from the party requesting
such new Note, without any right of reimbursement under any Loan Document,
payment of a sum to reimburse Borrower for, or to provide funds for, the payment
of any tax or other governmental charge in connection therewith or any charges
and expenses connected with such tax or other governmental charge paid or
payable by Borrower.

    

    ARTICLE
3

    

    OBLIGATIONS
SECURED/SECURITY/APPLICATION OF PAYMENTS

    

    Section
3.01                                Obligations
Secured.

    

    (a)           The
Indenture and the other Security Documents and the grants, assignments and
transfers made thereunder to Lender are given to secure the following, in such
order of priority as Lender may determine in its sole discretion (the “Debt”):

    

    (i)           the
payment of the principal indebtedness evidenced by the Note in lawful money of
the United States of America;

    

    (ii)          the
payment of interest, default interest, late charges and other sums, as provided
in the Note, this Loan Agreement or the Security Documents;

    

    (iii)         the
payment of Prepayment Consideration; (iv) the payment of all Protective
Advances;

    

    (v)         the
payment of all other monies agreed to or provided to be paid by Borrower in the
Note, this Loan Agreement and the Security Documents; and

    

    (vi)        the
payment of all other sums advanced and costs and expenses Lender incurs in
connection with the Loan or any part thereof, any renewal, extension,
modification, consolidation, change, substitution, replacement, restatement or
increase of the Loan or any part thereof, or the acquisition or perfection of
the security therefor, whether made or incurred at Borrower’s or Lender’s
request.

    

     (b)          The
Indenture and the other Security Documents and the grants, assignments and
transfers made therein are also given to secure the following (the “Other
Obligations”):

    (i)       the
performance of all other obligations of Borrower contained

    herein;

     

    (ii)     
the performance of each obligation of Borrower contained in the Note in addition
to the payment of the Debt and of Borrower contained in this Loan Agreement and
the Security Documents; and

     

    (iii)     the
performance of each obligation of Borrower contained in any renewal, extension,
modification, consolidation, change, substitution, replacement for, restatement
or increase of all or any part of the Note, this Loan Agreement or the Security
Documents.

     

    Section
3.02                               
Other Security for
Payment of the Note. The Indenture and the other Security Documents
secure the payment and performance of the Obligations.

     

    Section
3.03                               
Application of
Payments. (a) Borrower will direct Tenant to pay directly to Lender or
its designee all Rents due to Borrower under the Lease when such amounts are due
and payable. Lender will apply all such Rents and other payments received by it
promptly upon receipt, but not less frequently than monthly, as follows: First,
to pay to the Certificate Trustee all amounts due and payable pursuant to
Schedule A of the Note; Second, to pay default interest, late charges,
Prepayment Consideration and all other amounts due on account of the Debt then
due and payable under the Note, this Loan Agreement or the Security Documents
other than payments for Protective Advances; Third, to reimburse Lender for any
Protective Advances; Fourth, to deposit into the Escrow Fund, all amounts, if
any, due and payable under Section 4.03 hereof; and Fifth, as long as no Event
of Default exists, to pay the balance of the funds, if any, within two (2)
Business Days after Lender receives good funds, to Borrower by wire transfer of
immediately available funds to an account designated by Borrower, which payments
to Borrower will be free of the Lien of the Indenture and Lender’s rights under
the Loan Documents. If Lender does not receive any payment Tenant is required to
pay directly to Lender, Lender will use its reasonable efforts to promptly
notify Borrower of Tenant’s failure to make such payment; provided, however, Lender’s
failure to provide such notice shall not relieve, waive or alter Borrower’s
absolute obligation to pay all amounts due hereunder and under the Note and the
other Security Documents at the time and in the manner required
hereunder.

    

    (b)
Notwithstanding the foregoing, any moneys Lender or its designee receives as
Additional Rent shall be applied first for the purposes for which such moneys
were paid pursuant to the Lease.

    

    

    ARTICLE
4

    COVENANTS

    

    Section
4.01                               Insurance.

     

    (a)          Borrower
will satisfy, or will cause Tenant to satisfy, the Insurance Requirements.
During such time as Tenant satisfies the Insurance Requirements, Borrower will
be deemed to be in compliance with the requirements of this Section 4.01. If at
any time Tenant fails to satisfy the Insurance Requirements, then Borrower must
satisfy the Insurance Requirements and make the Tax and Insurance Reserve Fund
Payments required pursuant to Section 4.03 hereof.

     

    (b)           Borrower
acknowledges Lender’s right under and pursuant to Section 9.03 hereof to obtain
(either itself or by its agents, servicers, nominees or attorneys) any Policies
required of Borrower should Borrower or Tenant fail to do so as required
hereunder.

     

    Section
4.02                               Payment of Taxes and
Impositions, etc. (a) Borrower will pay and discharge, or will cause
Tenant to pay and discharge, all Taxes and Impositions at the time and in the
manner required by the Lease. Borrower will deliver, or will cause Tenant to
deliver, to Lender, promptly upon Lender’s request, receipts (or if receipts are
not available, copies of cancelled checks evidencing payment with receipts to
follow promptly after they become available) showing payment of Taxes and
Impositions before the applicable delinquency date. therefor. Borrower will not
suffer and will pay within thirty (30) days of knowledge or will cause Tenant to
pay within thirty (30) days of knowledge, and discharge any Lien which may be or
become a Lien against the Mortgaged Property, subject to Borrower’s contest
rights under-subsection
4.02(b) hereof.

     

    (b)           After
prior written notice to Lender, and provided no Default (as defined in the
Lease) or Event of Default (as defined in the Lease) exists, Borrower (or, to
the extent permitted under the Lease, Tenant), may contest, or permit to be
contested (including through abatement proceedings), in good faith and at its
sole expense, by appropriate legal proceedings, the amount or validity or
application in whole or in part of any of the Taxes or Impositions, and/or any
Legal Requirements affecting the Leased Property, and to postpone payment of or
compliance with the same during the pendency of such contest, provided that such
contest is conducted in accordance with and subject to the conditions contained
in paragraph 6(d) of the Lease.

    

    Section
4.03                                Escrow. Fund. At any
time that Tenant is obligated under the Lease to pay the Tax and Insurance
Reserve Fund Payment, Borrower shall pay or cause Tenant to pay same.
Additionally, if at any time under the Lease, Borrower is obligated to return to
Tenant any amounts in the Escrow Fund, Lender shall release such amounts from
the Escrow Fund to Tenant in accordance with the terms of the Lease. In
addition, during any period that Borrower is required to maintain Policies
pursuant to Section 4.01 hereof, Borrower will also pay monthly to Lender, for
deposit into the Escrow Fund, one-twelfth of an amount which would be sufficient
to pay the Insurance Premiums due on such Policies. The Escrow Fund, if any, and
the payments of interest or principal or both, payable pursuant to the Note,
will be added together and must be paid as an aggregate sum by Borrower to
Lender. Borrower pledges to Lender any and all monies now or hereafter deposited
in the Escrow Fund as additional security to pay the Debt subject to Tenant’s
right to such monies, if any, as set forth in subparagraph 13(e) of the Lease.
Lender will apply the Escrow Fund to pay Taxes and Insurance Premiums required
to be paid pursuant to Sections 4.01 and 4.02 hereof. If the amount of the
Escrow Fund exceeds the amounts due for Taxes and Insurance Premiums pursuant to
Sections 4.01 and 4.02 hereof, Lender will either return any excess to Borrower
or credit such excess against future payments to be made to the Escrow Fund. In
allocating such excess, Lender may deal with the Person shown on the records of
Lender to be the owner of the Mortgaged Property. If the Escrow Fund is not
sufficient, in Lender’s judgment, to pay when due the Taxes and Insurance
Premiums, Borrower must promptly pay, or must cause Tenant to pay promptly, to
Lender, upon demand, an amount which Lender shall estimate as sufficient to make
up the deficiency. Subject to Tenant’s rights set forth in subparagraph 13(e) of
the Lease, if an Event of Default exists, Lender may apply any sums then on
deposit in the Escrow Fund to pay the following items in any order in its sole
discretion:

    (i)      
Taxes and Impositions and Insurance Premiums;

    (ii)      Interest
on the unpaid principal balance of the Note;

    (iii)     Amortization
of the unpaid principal balance of the Note; or

     

    (iv)     All
other sums payable pursuant to the Loan Documents, including,’ Protective
Advances made by Lender.

     

    Until
expended or applied as above provided, any amounts in the Escrow Fund will
constitute additional security for the Debt. The Escrow Fund will not constitute
a trust fund and may be commingled with other monies held by Lender. No earnings
or interest on the Escrow Fund will be payable or credited to
Borrower.

     

    Section
4.04                               Changes in the Legal
Requirements Regarding Taxation. If any Legal Requirement is enacted or
adopted or amended after the Closing Date which imposes a tax, either directly
or indirectly, on the Debt or Lender’s interest in the Mortgaged Property,
Borrower must pay such tax, with interest and penalties thereon, if any. If
Lender is advised by counsel chosen by it that the payment of such tax or
interest and penalties by Borrower would be unlawful or taxable to Lender or
unenforceable or provide the basis for a defense of usury, then in any such
event, Lender may, by written notice to Borrower of not less than ninety (90)
days, declare the Debt immediately due and payable without Prepayment
Consideration.

     

    Section
4.05                               No Credits on Account of the
Debt. Borrower will not claim or demand or be entitled to any credit or
credits on account of the Debt for any payment of Taxes or Impositions assessed
against the Mortgaged Property and no deduction shall otherwise be made or
claimed from the assessed value of the Mortgaged Property for real estate tax
purposes because of the Loan Documents or the Debt. If Legal Requirements
require such claim, credit or deduction, Lender may, by written notice to
Borrower of not less than ninety (90) days, declare the Debt immediately due and
payable.

    

    Section
4.06                           Documentary Stamps.
If at any time any Governmental Authority requires revenue or other stamps to be
affixed to the Note or the Indenture, or imposes any other tax or charge on the
same, Borrower must pay for the same, with interest and penalties thereon, if
any.

    

    Section
4.07                            Maintenance of Mortgaged
Property. Borrower, will maintain, or will cause Tenant to maintain, the
Mortgaged Property in accordance with the requirements and subject to the
conditions of the Lease. Borrower will comply with, and will cause Tenant and
the Mortgaged Property to comply with, all Legal Requirements, subject in each
case to any contest thereof conducted in accordance with the provisions of
paragraph 6(d) of the Lease. Except as expressly provided in Section 21 of the
Lease and subject to the provisions of the SNDA, Borrower will not initiate,
join in, acquiesce in, or consent to any change in any Legal Requirements,
limiting or defining the uses which may be made of the Mortgaged Property
without the express written consent of Lender. If under applicable zoning
provisions the use of all or any portion of the Mortgaged Property is or shall
become a nonconforming use, Borrower will not cause or permit such nonconforming
use to be discontinued or abandoned without Lender’s express written
consent.

    

    Section
4.08                               
Books and
Records. Borrower will keep adequate books and records of account in
accordance with income tax method of accounting and deliver to Lender: (a)
copies of all tax returns, if any, filed by Borrower within twenty (20) days
after the filing thereof; (b) copies of all financial information received by
Borrower under the Lease, within twenty (20) days after receipt thereof; (c)
within one hundred ten (110) days after the close of each fiscal year, an annual
operating statement of the Mortgaged Property; (d) and an annual balance sheet..
and profit and loss statement of Borrower certified by Borrower’s chief
financial officer.. Borrower will provide Lender with such additional financial
or management information as,. Lender may reasonably request, provided that any
such additional information with respect tat., Tenant
or the Mortgaged Property is in Borrower’s possession or is available to
Borrower pursuant to the terms and provisions of the Lease.

    

    Section
4.09                               Performance of Other
Agreements. (a) Borrower will observe and perform or cause Tenant to
observe and perform each and every term to be observed or performed by Borrower
pursuant to the terms of any agreement or recorded instrument affecting or
pertaining to the Mortgaged Property, including, any reciprocal easement,
operating or similar agreement, and if Borrower fails to so observe and perform,
or cause to be observed or performed, any such terms, Lender and Servicer and
their agents, employees, contractors, engineers, architects and other
representatives may observe and perform such terms.

    

    Section
4.10                               
ERISA.

    

    (a)         Throughout
the term of this Loan Agreement, Borrower must not (i) become an “employee
benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title 1
of ERISA; (ii) allow any of its assets to constitute “plan assets” of one or
more such plans within the meaning of 29 C.F.R. Section 2510.3-101; (iii) become
a “governmental plan” within the meaning of Section 3(32) of ERISA; or (iv)
allow any of its assets to constitute assets of a governmental plan for purposes
of state statutes regulating investments of and fiduciary obligations with
respect to governmental plans such that transactions entered into by Borrower
are subject to such state statutes.

    

    (b)         Borrower
will deliver to Lender such certifications or other evidence from time to time
throughout the term of this Loan Agreement, as reasonably requested by Lender in
its sole discretion, that (i) Borrower is not an “employee benefit plan” or a
“governmental plan”; (ii) Borrower’s assets are not assets of a governmental
plan for purposes of state statutes regulating investments and fiduciary
obligations with respect to governmental plans; and (iii) one or more of the
following circumstances is true such that transactions entered into by Borrower
are subject to such state statutes:

    

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

    

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

    

    (iii)    
Borrower qualifies as an “operating company”, or a “real estate operating
company” within the meaning of 29 C.F.R. § 2510.3.101(c) or (e); or an
investment company registered under the Investment Company Act of 1940, as
amended; or

     

    (iv)     The
Loan meets the requirements of PTE 95-60, 90-1, 84-14 or similar
exemption.

     

    Section
4.11                               Hazardous
Substances.

     

    (a)          Borrower
will comply, and will cause Tenant to comply, with all applicable Environmental
Laws relating. to the Mortgaged Property and the requirements of Article 9 of
the Lease. Compliance by Tenant with the requirements of Article 9 of the Lease
will be deemed to be compliance by Borrower with this Section
4.11(a).

     

      
(b)           Borrower
will promptly notify Lender in writing if Borrower learns of the possible
existence of any Hazardous Substances on the Mortgaged Property or if Borrower
learns that the Mortgaged Property is or may be in direct or indirect violation
of any Environmental Laws. Further, immediately upon receipt of the same,
Borrower will deliver to Lender copies of any and all orders, notices, Permits,
applications, reports, and other communications, documents and instruments
pertaining to the actual, alleged or potential Release of Hazardous Substances
or presence or existence of any Hazardous Substances at, on, about, under,
within, near or in connection with the Mortgaged Property. Subject to the rights
of Tenant under the Lease and SNDA, Borrower grants to Lender and its agents and
employees access to the Mortgaged Property and, subject to the rights of Tenant
under the Lease and the SNDA, a license to remove any Hazardous Substances and
to do all things Lender deems necessary to cause the Mortgaged Property to
comply with Environmental Laws. Borrower will, at Borrower’s sole cost and
expense, indemnify, defend (at trial and appellate levels, and with attorneys,
consultants and experts acceptable to Lender), and hold the Indemnified Parties
harmless from and against any and all Indemnified Liabilities which may be
imposed on, incurred by or asserted or awarded against any Indemnified Party to
the extent arising directly or indirectly from or out of (i) the presence or
Release of any Hazardous Substances at, from, on, in, under or affecting all or
any portion of the Mortgaged Property, or any Release of Hazardous Substances
emanating from the Mortgaged Property onto any contiguous property; (ii) the
violation of any Environmental Laws relating to or affecting the Mortgaged
Property, caused by Borrower or members of Borrower; (iii) the failure by
Borrower to comply fully with the terms and conditions of this Section 4.11;
(iv) the breach of any representation or warranty contained in Section 7.27; or
(v) the enforcement of this Section 4.11, including, the cost to assess,
contain, remediate and/or remove any Hazardous Substances from the Mortgaged
Property or any surrounding areas, the cost of any actions taken in response to
the presence or Release of Hazardous Substances on, in, under or affecting the
Mortgaged Property or any surrounding areas to prevent or minimize such Release
of Hazardous Substances so that it does not migrate or otherwise cause or
threaten danger to present or future public health, safety, welfare or the
environment, and the costs incurred to comply with the Environmental Laws in
connection with the Mortgaged Property or any surrounding areas. This indemnity
will survive payment in full of the Debt or any termination or satisfaction of
the Lien of the Indenture or foreclosure of the Indenture for any Indemnified
Liabilities arising or accruing on or before payment in full of the Debt or any
termination or satisfaction of the Lien of the Indenture or foreclosure of the
Indenture.

     

    IMPORTANT-READ
THIS

    

    

    BORROWER
ACKNOWLEDGES THAT PURSUANT TO THE FOREGOING INDEMNITY IT HAS AGREED TO INDEMNIFY
AND HOLD HARMLESS THE INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL
LIABILITIES ARISING BY REASON OF THE ACTS OR OMISSIONS OF ANY OF THE INDEMNIFIED
PARTIES AND OTHERWISE, WHICH LIABILITIES INCLUDE, WITHOUT LIMITATION, EXCEPT AS
PROVIDED ABOVE, SOLE NEGLIGENCE, CONCURRENT NEGLIGENCE, STRICT LIABILITY,
CRIMINAL LIABILITY, STATUTORY LIABILITY, LIABILITY FOR INJURIES NOT COMPENSATED
BY WORKERS’ COMPENSATION INSURANCE, OTHER INJURIES OR LOSSES NOT COVERED BY
INSURANCE AND LIABILITY ARISING AS A RESULT OF WAIVERS, EXCULPATIONS,
DISCLAIMERS OR RELEASES. IF SUCH LIABILITY ARISES BY REASON OF THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF AN INDEMNIFIED PARTY (OR INDEMNIFIED
PARTIES, AS THE CASE MAY BE) (HEREINAFTER A “RESPONSIBLE INDEMNIFIED PARTY”),
THIS INDEMNITY SHALL NOT EXTEND TO ANY SUCH RESPONSIBLE INDEMNIFIED PARTY, BUT
SHALL EXTEND TO ALL OTHER INDEMNIFIED PARTIES.

    

    

      
(c)           Upon
Lender’s request, and subject to the rights of Tenant under the Lease and the
SNDA, at any time an Event of Default exists or at such other time as Lender or
Borrower may, under Section 9(c) of the Lease, cause an environmental audit or
inspection to be performed, Borrower must provide, at Borrower’s sole cost and
expense, an inspection or audit of the Mortgaged Property prepared by a
hydrogeologist or environmental engineer or other appropriate consultant
approved by Lender indicating the presence or absence of Hazardous Substances on
the Mortgaged Property or an inspection or audit of the Improvements prepared by
an engineering or consulting firm approved by Lender indicating the presence or
absence of friable asbestos or substances containing asbestos on the Mortgaged
Property. If Borrower fails to provide such inspection or audit within thirty
(30) days after such request, Lender may order the same, and Borrower hereby
grants to Lender and its employees and agents access to the Mortgaged Property
and an irrevocable license to undertake such inspection or audit, subject to the
rights of Tenant under the Lease and the SNDA. Borrower will pay immediately on
demand the reasonable cost of such inspection or audit, together with interest
thereon at the Default Rate from the date incurred by Lender until actually paid
by Borrower, and such costs will be secured by the Indenture and by the other
Security Documents securing all or any part of the Debt.

     

      
(d)           Without
limiting the foregoing, and subject to Tenant’s rights under the Lease, where
recommended by a “Phase I”
or “Phase II”
assessment or otherwise required by Lender, Borrower will establish and
will comply with an operations and maintenance program relative to the Mortgaged
Property, in form and substance acceptable to Lender, prepared by an
environmental consultant acceptable to Lender, which program will address any
Hazardous Substances (including asbestos containing material or lead based
paint) that may now or in the future be detected on the Mortgaged Property.
Without limiting the generality of the preceding sentence, Lender may require,
subject to Tenant’s rights under the Lease and the SNDA, (i) periodic notices or
reports to Lender in form, substance and at such intervals as Lender may
specify; (ii) an amendment to such operations and maintenance program to address
changing circumstances, laws or other matters; (iii) following any Event of
Default or at such time as Lender has reasonable grounds to believe that
Hazardous Substances are or have been released, stored or disposed of on or
around the Mortgaged Property or that the Mortgaged Property may violate the
Environmental Laws, at Borrower’s sole expense, supplemental examination of the
Mortgaged Property by consultants specified by Lender; (iv) access to the
Mortgaged Property, by Lender, its agents or servicer, to review and assess the
environmental condition of the Mortgaged Property and Borrower’s compliance with
any operations and maintenance program; and (v) variation of the operations and
maintenance program in response to the reports provided by any such
consultants.

    ARTICLE
5

    TRANSFER

    Section
5.01                                Transfer
Generally.

    

    (a)           Except
as otherwise permitted in, and in accordance with, Sections 5.02 and 5.03
hereof, Borrower will not directly or indirectly, without Lender’s prior written
consent, which consent Lender may grant or withhold in its sole discretion,
Transfer the Mortgaged Property or any interest therein, or permit the Transfer
of the Mortgaged Property or any interest therein. Notwithstanding anything
herein to the contrary, Borrower may not undertake any Transfer of the Mortgaged
Property, or any interest therein, or permit the Transfer of the Mortgaged
Property or any interest in Borrower which would have the effect of causing the
assets and liabilities of Borrower to be consolidated by any other Person other
than the direct or indirect Beneficial Owners of Borrower. The term “Transfer” means, for any
Person, any transactions in which such Person, directly or indirectly,
transfers, sells, conveys, alienates, mortgages, encumbers or pledges the
Mortgaged Property or any interest therein, including;

    

    (i)   an
installment sales agreement wherein Borrower agrees to sell the Mortgaged
Property, or any part thereof for a price to be paid in
installments;

     

    (ii)  an
agreement by Borrower leasing all or a substantial part of the Mortgaged
Property for other than actual occupancy by a space lessee thereunder or sale,
assignment or other transfer of, or the grant of a security interest in,
Borrower’s right, title and interest in and to the Lease or any
Rents;

     

    (iii)     any
divestiture of Borrower’s title to the Mortgaged Property or any interest
therein in any manner or way, whether voluntary or involuntary, or Borrower’s
merger, consolidation or dissolution;

     

    (iv)    if
Borrower is a corporation, the voluntary or involuntary sale, conveyance or
transfer of any of such corporation’s stock or the creation or issuance of new
stock in one or a series of transactions by which an aggregate of more than 10%
o of such corporation’s stock shall be vested in a party or parties who are not
stockholders as of the Closing Date or any in a change in the control of such
corporation directly or indirectly;

     

    (v)     if
Borrower or any general partner of Borrower is a limited or general partnership,
joint venture or limited liability company, (A) the change, removal, resignation
or addition of a general partner, managing partner or managing member, or (B)
the transfer of any interests of any general partner, managing partner or
managing member, or (C) the transfer of any interests of any partner, joint
venturer or member of Borrower; and

     

    (vi)    if
Borrower is a business trust, the voluntary or involuntary conveyance or
transfer of any portion of the beneficial or economic interest in
Borrower.

     

    Section
5.02                              Permitted Transfer of
Beneficial Interest.

     

    (a)          Any
Beneficial Owner may Transfer all but not less than all of the beneficial
interest in Borrower to an Acceding Beneficial Owner, without Lender’s consent,
upon the satisfaction of each of the following terms and conditions (a “Permitted Transfer of Beneficial
Interest”):

     

    (i)       the
Acceding Beneficial Owner must assume all obligations of the affected Beneficial
Owner under any agreement, instrument or document executed by the Beneficial
Owner on its own behalf (and not as a signatory on behalf of Borrower), which
wholly or partially evidences, secures or guarantees the Debt or otherwise
evidences an obligation of Beneficial Owner to Lender (including, the Guaranty
Agreement) from and after the date of Transfer and must make the representations
and warranties as applicable to the Acceding Beneficial Owner, under and
pursuant to the Beneficial Owner Instrument of Accession and Assumption in
substantially the form attached hereto as Exhibit
C;

     

    (ii)      no
Default or Event of Default may exist under the Loan Documents at the time of or
immediately after such Transfer;

     

    (iii)     the
documents governing Borrower must permit such Transfer;

    

    (iv)   
the Acceding Beneficial Owner must provide Lender with such certificates and
legal opinions which were delivered by Beneficial Owner or its respective
counsel in connection with the closing of the Loan, as may be reasonably
requested by Lender in connection with such Transfer, including, an opinion
containing the same conclusions as the Non-Consolidation Opinion provided to
Lender by Borrower on the Closing Date, all substantially in the same form and
content as those delivered to Lender in connection with the closing of the
Loan;

     

                                                       
(iv)     the Acceding Beneficial Owner must provide Lender
with such certificates and legal opinions which were delivered by Beneficial
Owner or its respective counsel in connection with the closing of the Loan, as
may be reasonably requested by Lender in connection with such Transfer,
including, an opinion containing the same conclusions as the Non-Consolidation
Opinion provided to Lender by Borrower on the Closing Date, all substantially
in the same form and content as those delivered to Lender in connection with the
closing of the Loan;

    

    (v)     each
of the provisions of Article 6 hereof are and/or continue to be satisfied;

     

                                                      
(vi)     Borrower must pay Lender, concurrently with the
closing of such Transfer, all of Lender’s costs and expenses described in
Section 5.06 hereof; and

                                 

                                                     
(vii)      Borrower must satisfy or cause to be
satisfied the provisions of Section
5.07 hereof.

    

    (b)           Upon
compliance with each of the terms and conditions described above, and upon the
execution and delivery of the Beneficial Owner Instrument of Accession and
Assumption substantially in the form attached hereto.as Exhibit
C, the
Acceding Beneficial Owner will thereafter become the Beneficial Owner for all
purposes of the Note, the Indenture and the other Security Documents, and Lender
will promptly release the affected Beneficial Owner from and after the date of
such Transfer of its obligations as Beneficial Owner to the extent provided in a
Certificate of Compliance and Release substantially in the form attached..
hereto as Exhibit
D to be
delivered by Lender to Beneficial Owner; provided that in no event will any such
Transfer waive or release the Beneficial Owner for fraudulent or willful’
misconduct engaged in by Beneficial Owner or for any liability on account of any
breach by Beneficial Owner of any representation, warranty, agreement or
obligation of Beneficial Owner in its own capacity set forth in this Loan
Agreement or the Security Documents before or in connection with such Transfer.
Other than expenses set forth in Section 5.06 hereof, no assumption fee or other
fee is due or payable in connection with such Permitted Transfer of Beneficial
Interest.

    

    (c)           Notwithstanding
the foregoing, however, (1) (x) the ownership interests in the Person which owns
the beneficial or economic ownership interests in Borrower, or (y) any ownership
interest, direct or indirect, in any trustee or manager of any beneficial owner
of Borrower may be freely transferable without compliance with the terms of this
Section 5.02, and the removal and replacement of any trustee or manager of
Borrower may be accomplished, without compliance with the terms of this Section
5.02, and (2) any involuntary transfer caused by the death of any general
partner, shareholder, joint venturer, trustee, manager, member, or beneficial
owner of any Person holding any interest in Borrower, any beneficial owner of
Borrower or any trustee or manager of Borrower, or if Borrower is a partnership,
any limited partner thereof, will not require compliance with the terms of this
Section 5.02 so long as Borrower is reconstituted, as required by Borrower’s
organizational documents, following such death and so long as those Persons
responsible for the management of the Mortgaged Property remain unchanged as a
result of such death or any replacement management is approved by Lender and so
long as reconstituted Borrower is fully liable for all of Borrower’s
obligations.

    

    Section
5.03                              Permitted Transfer of
Mortgaged Property.

     

    (a)          A
Transferor may Transfer the Mortgaged Property to a Transferee without Lender’s
consent upon 30 days prior written notice to Lender and upon the satisfaction of
each of the following terms and conditions (a “Permitted Transfer of Mortgaged
Property”):

     

    (i)       no
Default or Event of Default may exist under the Loan Documents at the time of
such Transfer;

     

    (ii)      Borrower
or Transferee pays or causes to be paid to Lender, concurrently with the closing
of such Transfer, a non-refundable assumption fee in an amount equal to $10,000,
together with all of Lender’s costs and expenses described in Section 5.06
hereof;

     

    (iii)    Transferee,
in writing, (A) assumes and agrees to pay (subject to the non-recourse
provisions of Section 12.13 hereof) the Debt and to perform all Other
Obligations, and (B) as of the date of Transfer makes those representations of
Borrower which are applicable to Transferee as are contained in the Loan
Documents (or the assumption or assignment agreements delivered with respect
thereto). Before or concurrently with the closing of such Transfer, Transferee
or an Affiliate thereof, Transferor, Beneficial Owner and the owner of the
beneficial interest in Transferee or such other new indemnitor as may be
acceptable to Lender execute, without. any cost or expense to Lender, a Borrower
Instrument of Accession and Assumption substantially in the form thereof
attached hereto as Exhibit E, together with such
documents and agreements as Lender may reasonably require to evidence and
effectuate said assumption, and deliver such legal opinions as Lender may
reasonably require;

     

    (iv)    Transferor
and Transferee execute, without any cost or expense to’ Lender, new financing
statements or financing statement assignments or amendments;

     

    (v)     Transferee
and Transferor execute a Lease assignment and assumption agreement reasonably
acceptable to Lender;

     

    (vi)    Tenant
or Transferor provides Lender with written evidence (including a legal opinion,
if necessary) satisfactory to Lender in its reasonable discretion, that such
Transfer is permitted under or is not prohibited by the Lease;

     

    (vii)  
Transferor or Transferee causes to be delivered to Lender, without any cost or
expense to Lender, such endorsements to Lender’s title insurance policy, hazard
insurance endorsements or certificates and other similar materials as Lender may
reasonably deem necessary at the time of the Transfer, all in form and substance
reasonably satisfactory to Lender, including, an endorsement or endorsements to
Lender’s title insurance policy, insuring the Lien of the Indenture, extending
the effective date of such policy to the date of execution and delivery (or, if
later, of recording) of the Borrower Instrument of Accession and Assumption with
no additional exceptions added to such policy not previously approved by Lender
and insuring that fee simple title to the Mortgaged Property is vested in
Transferee, or, in lieu thereof, such other documents or evidence as Lender or
permitted by the Lease may reasonably require in order to confirm that such
policy is unaffected by the Transfer;

    

    (viii)      Transferor
executes and delivers to Lender, without any cost or expense to Lender, a
release of Lender, its successors and assignees, their officers, directors,
employees and agents, from all claims and liability relating to the transactions
evidenced by the Loan Documents through and including the date of the closing of
the Transfer, which agreement shall be in form and substance reasonably
satisfactory to Lender and shall be binding upon the Transferee;

     

    (ix)         Lender
receives such certificates and legal opinions which were delivered in connection
with the closing the Loan by Transferor or its counsel as Lender may reasonably
request in connection with such Transfer in substantially the same form and
content as such items were delivered in connection with the closing of the Loan,
including, the secretarial and officer certificates, opinions of counsel
(including, local counsel) for Transferee regarding the authorization, execution
and enforceability of the Loan Documents (or of the assumption or assignment
agreements delivered with respect thereto) and any other documents executed by
or binding upon Transferee and delivered in connection with such Transfer and a
substantive non-consolidation bankruptcy opinion in substantially the same form
as the Non-Consolidation Opinion; the parties intend that all such certificates
and opinions delivered with respect to Borrower in connection with the making of
the Loan hereunder are to be delivered, executed or otherwise provided with
respect to Transferee and Lender’s rights under and with respect to the Loan
Documents will not to be diminished or affected by such Transfer;

     

    (x)          Transferee
is a corporation, partnership, limited partnership or a limited liability
company which complies with the provisions of Article 6 hereof;

     

    (xi)          Transferor
and Transferee and their respective beneficial owners and Indemnitors, comply
with any provisions of Section 5.02 which are applicable and are not satisfied
as a result of any such Person’s compliance with the provisions of this Section
5.03 at, the time of the Transfer; and

     

    (xii)        the
RVI Policy and the “cut-through agreement”, if applicable, issued with respect
to the Mortgaged Property shall remain in full force and effect after giving
effect to such Transfer and Borrower shall have obtained all necessary consents
to such Transfer from the issuer of the RVI Policy.

     

    (b)           Upon
compliance with each of the terms and conditions described above, Lender will
promptly release the Transferor and the Beneficial Owner of the Transferor from
and after the date of such Transfer of its respective obligations as Borrower
and Beneficial Owner and will deliver to such entities a Certificate of
Compliance and Release substantially in the form attached hereto as Exhibit
F; provided
that in no event will any such Transfer waive or release such Transferor or the
Beneficial Owner of such Transferor for any liability on account of any breach
of any representation, warranty, agreement or obligation set forth in this Loan
Agreement or under any Security Documents or for any fraudulent or willful
misconduct, in each case which were made or occurred before or in connection
with such Transfer.

     

    Section
5.04                                No Impairment. Lender
will not be required to demonstrate any actual impairment of its security or any
increased risk of default hereunder to declare the Debt immediately due and
payable upon any Transfer of the Mortgaged Property without Lender’s consent or
as otherwise expressly permitted herein. This provision applies to every
Transfer of the Mortgaged Property regardless of whether voluntary or not, or
whether or not Lender has consented to any prior Transfer of the Mortgaged
Property.

    

    Section
5.05                            Lender Consent.
Lender’s consent to a Transfer of the Mortgaged Property or of any interest in
Borrower in connection with a Transfer which does not comply with the terms and
conditions of Sections 5.02 or 5.03, will not be deemed to be a waiver of
Lender’s right to require such consent to any future Transfer of the Mortgaged
Property or of any interest in Borrower. Any Transfer of the Mortgaged Property
or Transfer of Beneficial Interest made in contravention of this Article 5 will
be null and void and of no force and effect.

    

    Section
5.06                            Cost of Transfer.
Borrower must pay or reimburse Lender on demand for all reasonable out-of-pocket
third party expenses (including, reasonable attorneys’ fees and disbursements,
title search costs and title insurance endorsement premiums) incurred by Lender
and counsel to the Certificate Holders in connection with the review, approval
and documentation of each Transfer of the Mortgaged Property or Transfer of
Beneficial Interest.

    

    Section
5.07                         No Release of
Liability. Except as provided in this Section 5.07 and in the applicable
Certificate of Compliance and Release executed and delivered by Lender in
connection with a Transfer, no Transfer, whether or not a Permitted Transfer,
will relieve from liability the Beneficial Owner or any other Person or Persons
who has provided any guaranty or indemnity or otherwise become liable for any of
the obligations of Borrower under the Note, this Loan Agreement or the Security
Documents (such Person a “Current Indemnitor” and such
liabilities arising or accruing before the Transfer, “Indemnity Obligations”). If
as a result of. a,
Transfer, Current Indemnitor is no longer be an Affiliate of Borrower, Current
Indemnitor may offer a new indemnitor (“New Indemnitor”), as a
substitute, to assume any Indemnity,
Obligations of the Current Indemnitor arising after the date of the Transfer.
Lender may, in its, reasonable discretion, approve or disapprove such
substitution. If Lender approves any such substitution, the approval will become
effective upon the execution and delivery by New Indemnitor, without any cost or
expense to Lender, of a guaranty substantially the same as the Guaranty
Agreement executed by Beneficial Owner in connection with the Loan evidencing
each New Indemnitor’s agreement to be liable for the Indemnity Obligations (each
a “New Indemnity Agreement”), arising from and
after the date of the Transfer, whereupon Lender will release the Current
Indemnitor from its Indemnity Obligations arising after the date of such
Transfer. Notwithstanding the foregoing, Current Indemnitor will be released
from its Indemnity Obligations under the Loan upon a Permitted Transfer if the
New Indemnitor enters into a New Indemnity Agreement.

    

    ARTICLE
6

    

    SINGLE
PURPOSE ENTITY

    

    Section
6.01 Separateness
Representations and Covenants. Borrower represents and warrants to, and
agrees with, Lender that as of the Closing Date and until such time as the Debt
is paid in full:

    
 

    (a)           Borrower
does not own and will not own any asset or property other than (i) its interests
in the Mortgaged Property, and incidental personal property necessary for the
ownership or operation of the Mortgaged Property.

     

                                    
(b)           [Intentionally
Omitted.]

    

    (c)           Borrower
will not engage in any business other than the ownership, leasing, management
and operation of the Mortgaged Property, and Borrower will conduct and operate
its business as presently conducted and operated.

     

                                 
(d)           Borrower
will not enter into any contract or agreement with any Affiliate of Borrower or
any constituent party of Borrower, the owner of any beneficial interest in
Borrower or any Affiliate of any constituent party (a “Constituent Party”) or
Indemnitor, except upon terms and conditions that are intrinsically fair and
substantially similar to those that would be available on an arms-length basis
with third parties other than any such party.

     

                                  
(e)           Borrower
has not incurred and will not incur any indebtedness, secured or unsecured,
direct or indirect, absolute or contingent (including guaranteeing any
obligation) other than (i) the Debt, and (ii) unsecured trade payables
customarily payable within thirty (30) days.

       

                                  
(f)            Borrower
has not made and will not make any loans or advances to any Person. Borrower
will not acquire obligations or securities of its Affiliates.

     

                                 
(g)           Borrower is
and will remain solvent and Borrower will pay its debts and liabilities
(including, as applicable, shared personnel and overhead expenses) from its
assets as the same shall become due, subject, however, to Borrower’s contest
rights under Section 4.02(b).

     

                                 
(h)           Borrower
has done or caused to be done and will do all things necessary to observe
organizational formalities and preserve its existence. Borrower will not, nor
will Borrower permit any Constituent Party to, amend, modify or otherwise change
the “separateness” or other special purpose or bankruptcy remoteness provisions
of its organizational documents without Lender’s prior written consent. Borrower
will not permit the removal of any Independent Manager without replacing such
Independent Manager with a Person meeting the definition of an Independent
Manager who is reasonably satisfactory to Lender. Borrower will not cause any
Constituent Party or Indemnitor to amend, modify or otherwise change the
organizational documents of such Constituent Party or Indemnitor without
Lender’s prior written consent, if any such amendment, modification or other
change (i) would adversely affect the bankruptcy remote nature of Borrower; or
(ii) would cause any of the assumptions upon which the Non-Consolidation Opinion
is based to become inaccurate or untrue in any respect; or (iii) would adversely
affect Lender’s interest in the Loan.

    

    (i)            Borrower
will maintain books, records, financial statements and bank accounts separate
from those of any other Person. Borrower shall maintain its books, records,
resolutions and agreements as official records.

    

    (j)            Borrower
will be, and at all times will hold itself out to the public as, a legal entity
separate and distinct from any other Person, and shall conduct its business in
its own name and will use its own name for purposes of obtaining Permits
necessary to conduct its business. Borrower will maintain and utilize invoices
and checks separate from those of any other Person. Borrower will correct any
known misunderstanding regarding its status as a separate entity.

     

                                  
(k)          Borrower will
maintain adequate capital for the normal obligations reasonably foreseeable in a
business of its size and character and in light of its contemplated business
operations.

             

                                  
(1)          Except as
expressly provided in this Loan Agreement, neither Borrower nor any Constituent
Party will seek or effect the liquidation, dissolution, winding up,
consolidation or merger, in whole or in part, of Borrower, or the sale of all or
substantially all of Borrower’s assets.

     

                                 
(m)          Borrower has and
will maintain its assets in such a manner that it will not be costly or
difficult to segregate, ascertain or identify its individual funds and other
assets from those of any other Person.

      

                                 
(n)          Borrower does not
and will not hold itself out to be responsible for the debts or obligations of
any other Person.

     

                                 
(o)          If Borrower is
(i) a limited partnership, general partnership or limited liability company, at
least one partner or manager, as the case may be, must be a Person with no
interest in Borrower and which must at all times qualify as an Independent
Manager or (ii) a corporation or business trust, it must have at all times a
director or trustee who has no interest in Borrower and which qualifies as an
Independent Manager (in either case, the “SPE Manager” and such SPE
Manager will at all times comply with, and SPE Manager shall not consent to
or,
approve any action which would cause a violation of, any representations,
warranties, and` agreements contained in this Section 6.01 as if such
representation, warranty or agreement was made directly by such SPE
Manager.

     

                                 
(p)           “Independent Manager” means a
Person reasonably satisfactory to Lender, who is not at the time of such
Person’s initial appointment or election, has not been at any time during the
preceding five years, and will not be at any time while serving as an
Independent Manager, (i) a shareholder of, or an officer, director, partner or
employee of, Borrower or any of its shareholders, subsidiaries or Affiliates,
(ii) a customer of, or supplier to, Borrower or any of its shareholders,
subsidiaries or Affiliates (other than a customer or supplier that does not
derive more than five percent (5%) of its purchases or revenues from its
activities with Borrower, its members or any Affiliate thereof), (iii) a Person
controlling or under common control with any such shareholder, partner, supplier
or customer, or (iv) a member of the immediate family of any such shareholder,
officer, director, partner, employee, supplier or customer.

     

                                  
(q)           Borrower
will conduct its business so that the assumptions made with respect to Borrower,
and its existence as a Delaware limited liability company in the
Non-Consolidation Opinion are and will remain true and correct in all respects
for the term of the Note.

    ARTICLE
7

    REPRESENTATIONS
AND WARRANTIES

    Borrower represents and
warrants:

     

    Section
7.01                               Organization.
Borrower (i) is a limited liability company, duly organized, validly existing
and in good standing under the laws of the State of Delaware; (ii) has the
necessary power and authority, and all necessary Permits to own the Mortgaged
Property and to carry on its business as now being conducted; (iii) has the
necessary power, authority and legal right to acquire, own and lease the
Mortgaged Property, to transact the business contemplated by this Loan
Agreement, and to execute, deliver and perform its obligations under the Lease,
the SNDA, this Loan Agreement and the other Security Documents to which it is a
party; and (iv) is duly qualified to do business in every jurisdiction where the
conduct of its business requires such qualification and is duly licensed or
qualified and is in good standing, as a foreign entity in each jurisdiction
wherein the nature of the business transacted by it or the nature of the
property owned or leased by it makes such licensing or qualification
necessary.

     

    Section
7.02                               Authority. The
signatory hereto has full power and .authority on behalf of Borrower to execute
the Lease, the SNDA, this Loan Agreement, the Note and the other Security
Documents. The execution and delivery by Borrower of each of the Loan Documents
to which it is a party, Borrower’s performance of its obligations thereunder and
the creation of the Liens provided for in the Note and the Security Documents to
which it is a party have been duly authorized by all requisite action on the
part of Borrower, including the consent of the holder(s) of ownership interests
in Borrower where required. The Loan Documents, the SNDA and the Lease to which
Borrower is a party have been duly authorized, executed and delivered by it.
Borrower has all requisite power and authority to perform its obligations under
the Lease, the SNDA and the Loan Documents.

     

    Section
7.03                               Consents. Borrower is
not required to obtain any Permit from, or to file or register any declaration
or statement with, any Governmental Authority in connection with or as a
condition to the valid execution, delivery, performance or enforceability of the
Lease, the SNDA or the Loan Documents, or if required the same has been duly
obtained and is in full force and effect.

    

    Section
7.04                               No Litigation. There
are no actions, suits or proceedings at law or in equity in or by or before any
Governmental Authority now pending or, to Borrower’s Knowledge, threatened
against or affecting Borrower, the managing member of Borrower or, to Borrower’s
Knowledge, the Mortgaged Property, which, in any way, could adversely affect the
validity or enforceability of the Lease, the SNDA or any Loan Document or which,
if decided against Borrower or any Affiliate of Borrower, would have a material
adverse effect on the business, operations or financial condition of
Borrower.

     

    Section
7.05                               Agreements. Borrower
is not a party to any agreement or instrument or subject to any restriction
(other than any exception shown in the mortgagee title policy approved by
Lender) which might materially adversely affect the Mortgaged Property,
Borrower’s ability to perform its obligations under the Loan Documents, the SNDA
and the Lease, or Borrower’s business, properties, assets, operations or
condition, financial or otherwise. Borrower is not in default beyond applicable
grace periods in the performance, observance or fulfillment of any of the
material obligations (including payment obligations), agreements or conditions
contained in any agreement or instrument to which it is a party or by which
Borrower or the Mortgaged Property is bound.

    

    Section
7.06                               Enforceability. Each
of the Loan Documents, the Lease and the SNDA executed by Borrower and delivered
to Lender has been duly executed and delivered by Borrower, is an original,
executed document, and each is the legal, valid and binding obligation of
Borrower, enforceable against Borrower in accordance with its terms, except as
such enforceability may be limited by (i) bankruptcy, insolvency and other
similar laws of general application affecting the rights of creditors and (ii)
the effect of general principles of equity regardless of whether enforcement is
sought in a proceeding at law or in equity. As of the Closing Date, the Note,
the Indenture and the other Loan Documents executed by Borrower are not subject
to any right of rescission, set-off, abatement, diminution, counterclaim or
defense by Borrower, including the defense of usury, and Borrower has not
asserted any right of rescission, set-off, abatement, diminution, counterclaim
or defense with respect thereto.

    

    Section
7.07                               Disclosure. No
statement of fact made by or on behalf of Borrower herein or in any of the other
Loan Documents contains any untrue statement of a material fact or omits to
state any material fact necessary to make statements contained herein or therein
not misleading. There is no fact of which Borrower has knowledge which has not
been disclosed to Lender which materially and adversely affects, or as far as
Borrower reasonably foresees, would materially and adversely affects the
Mortgaged Property or the business, properties, assets, operations or condition,
financial or otherwise, of Borrower.

    

    Section
7.08                               No Default. The
execution, delivery and to Borrower’s Knowledge, the performance of the
obligations imposed on Borrower under the Lease, the SNDA or any Loan Document
will not (i) violate any provision of any Legal Requirements, the articles of
organization or operating agreement of Borrower or any indenture, agreement or
other instrument to which Borrower is a party, or by which Borrower is bound, or
(ii) be in conflict with, result in a breach of or constitute (with due notice
or lapse of time or both) a default under, or (except as may be provided in the
Indenture or in any other Loan Document) result in the creation or imposition of
any Lien of any nature whatsoever upon any of the property or assets of Borrower
pursuant to, any Legal Requirements, articles of organization, operating
agreement, indenture, agreement or instrument. No default by Borrower exists
under the Loan Documents and no act has occurred and no condition exists which,
with the giving of notice or the passage of time, or both, could constitute a
default under any of the Loan Documents.

    

    Section
7.09                               Condemnation. To
Borrower’s Knowledge, no Condemnation has been commenced or has been announced
as being contemplated with respect to all or any portion of the Mortgaged
Property or for the relocation of roadways providing access to the Mortgaged
Property.

    

    Section
7.10                               Federal Reserve
Regulations. No part of the proceeds of the Loan will be used, directly
or indirectly, for the purpose (whether immediate, incidental or ultimate) of
buying or carrying any “margin stock” within the meaning of Regulation U of the
Board of Governors of the Federal Reserve System or for any other purpose which
would be inconsistent with such Regulation U, or used, directly or indirectly,
in violation of any other Regulations of such Board of Governors, or for any
purposes prohibited by Legal Requirements or by the terms and conditions of this
Loan Agreement.

     

    Section
7.11                                Utilities and Public
Access. To Borrower’s Knowledge, the Mortgaged Property has adequate
rights of access to dedicated public ways (and the Mortgaged Property makes no
material use of any means of access or egress that is not pursuant to such
dedicated public ways or recorded, irrevocable rights-of-way or easements) and
is served by adequate water, sewer, sanitary sewer and storm drain facilities.
To Borrower’s Knowledge: (i) all public utilities necessary for the full use and
enjoyment of the Mortgaged Property are located in the public right-of-way or in
or through a recorded irrevocable easement in favor of the Mortgaged Property,
and (ii) all such utilities are connected so as to serve the Mortgaged Property
without passing over other property, except to the extent that such utilities
are accessible to the Mortgaged Property by virtue of recorded, irrevocable
easement or similar agreement or right. To Borrower’s Knowledge, all roads
necessary for the full utilization of the Mortgaged Property for its current
purpose have been completed and Borrower has no knowledge that such roads have
not been dedicated to public use and accepted by all Governmental
Authorities.

     

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

     

    Section
7.13                                Indenture Liens. The
Indenture and the other Loan Documents are intended by Borrower to create a
legal, valid, fully perfected and enforceable first priority Lien on the
Mortgaged Property, and in any personalty owned by Borrower described in the
Loan Documents, as security for the repayment of the Loan, subject only to the
Permitted Exceptions:. To Borrower’s Knowledge, the Mortgaged Property is free
and clear of any mechanics’ and materialmen’s Liens which are before or equal
with the Lien of the Indenture, except those which are insured against in the
Title Policy.

     

    Section
7.14                                Assignment of Lease.
(a) Pursuant to the Indenture and the Assignment of Lease, Lender is the
assignee of Borrower’s interest under the Lease and the sole owner of the entire
lessor’s interest in the Lease; and (b) Borrower has made no prior assignments
of the Lease or otherwise assigned, pledged or hypothecated the Rents or any
other income due and payable or to become due and payable with regard to the
Mortgaged Property or the Lease. The Assignment of Lease creates a valid,
collateral, first priority assignment of, and a valid first priority security
interest in, Borrower’s right to receive all payments due under the Lease, and
no other Person owns any interest in the Lease.

     

    Section
7.15                                No Adverse Change.
There has been no material adverse change in the representations made or
information heretofore supplied to Lender by or on behalf of Borrower in
connection with the Loan Documents as to (a) the composition or structure of
Borrower (except as heretofore disclosed in writing to Lender) or, finances,
business operations, credit, prospects or financial condition of Borrower or any
owner of Borrower; (b) to Borrower’s Knowledge, the rental income, condition or
ownership of the Mortgaged Property; or (c) to Borrower’s Knowledge, any other
features of the transaction contemplated under the Loan Documents.

    

    Section
7.16                               Lease. (a) the Lease
is in full force and effect; (b) a true and correct copy of the Lease as amended
to the Closing Date has been delivered to Lender; (c) no default by Borrower
and, to Borrower’s Knowledge, no default by Tenant exists under the Lease; (d)
Borrower has not delivered or received any notice of default under the Lease;
(e) all Rents due and payable under the Lease have been paid in full and
Borrower has not accepted or received any advance payments of Rent from Tenant;
and (f) to Borrower’s Knowledge, there exist no rights of offset or defenses to
pay any portion of the Rents.

    

    Section
7.17                               Condition,
Compliance. To Borrower’s Knowledge, (a) the Mortgaged Property is in
good condition, free of any material damage or waste that would affect the value
of the Mortgaged Property and free of structural defects and all building
systems contained therein are in good working order and condition; (b) the
Mortgaged Property is lawfully occupied by Tenant under the Lease; and (c) the
Mortgaged Property is in compliance with all Legal Requirements and all
agreements and restrictions affecting the Mortgaged Property, occupancy, use or
operation of such Mortgaged Property, and the use of the Mortgaged Property is
not a pre-existing, non-conforming use. To Borrower’s Knowledge, all Permits,
required by Legal Requirements or by insurance standards or otherwise to be made
or issued with respect to the lawful ownership, use and occupancy of the
Mortgaged Property have been made or will be obtained from the appropriate
Governmental Authorities and are or will be valid and in full force and
effect.

    

    Section
7.18                                Related Party Loans.
There are no loans payable by Borrower or any member of Borrower to Lender
except for the Loan evidenced by the Loan Documents. There are no loans payable
by Borrower to any Affiliate of Borrower or any Affiliate of any Person having
any interest in Borrower.

    

    Section
7.19                                Service Contract.
There are no equipment leases, service contracts, maintenance contracts or
similar agreements with respect to the Mortgaged Property to which Borrower is a
party.

    

    Section
7.20                                No Insolvency or
Judgment. Neither Borrower, nor to Borrower’s Knowledge, any member of
Borrower, is (a) the subject of or a party to any state or federal bankruptcy or
insolvency proceeding, or (b) the subject of any judgment unsatisfied of record
or docketed in any court of the state in which the Mortgaged Property is located
or in any other court located in the United States. Borrower is not
contemplating either the filing of a petition by it under any state or federal
bankruptcy or insolvency laws or the liquidation of all or a major portion of
Borrower’s assets or property, and Borrower has no knowledge of any Person
contemplating the filing of any such petition against it. To Borrower’s
Knowledge, after giving effect to the transactions contemplated hereby, as of
the Closing Date the fair saleable value of Borrower’s assets exceeds Borrower’s
total liabilities, including without limitation subordinated, unliquidated,
disputed and contingent liabilities. To Borrower’s Knowledge, the fair saleable
value of Borrower’s assets is and will, immediately following the making of the
Loan, be greater than Borrower’s probable liabilities, including the maximum
amount of its contingent liabilities on its Loans as such Loans become absolute
and matured. Borrower’s assets do not and, immediately following the making of
the Loan, will not constitute unreasonably small capital to carry out its
business as conducted or as proposed to be conducted. Borrower does not intend
to, and does not believe that it will, incur loans and liabilities (including,
contingent liabilities and other commitments) beyond its ability to pay such
indebtedness as it matures (taking into account the timing and amounts of cash
to be received by Borrower and the amounts to be payable on or in respect of
obligations of Borrower).

    

    Section
7.21                                Separateness. The
representations and warranties concerning Borrower made in Borrower’s
Certificate to, and relied on by, counsel rendering the Non-Consolidation
Opinion are true, complete and correct, are incorporated herein by reference and
may be relied upon by Lender and its successors and assigns.

    

    Section
7.22                                Subleases. To
Borrower’s Knowledge, there are no subleases affecting all or any portion of the
Mortgaged Property in existence on the Closing Date, and no Person has any
possessory interest in, or right to occupy, the Mortgaged Property except
pursuant to the Lease.

    

    Section
7.23                                Taxes. All Taxes and
Impositions which would be a Lien on the Mortgaged Property, and that before the
Closing Date were due and owing in respect of the Mortgaged Property, have been
paid, or the Tenant is required to pay such Taxes and Impositions.

    

    Section
7.24                                No Broker. There are
no third-party brokers involved in connection with the financing contemplated by
the instant transaction or who may in any way claim or be entitled,, to
compensation on account hereof.

    

    Section
7.25                                Investment Company
Act. Borrower is not (a) an “investment company or a company “controlled”
by an “investment company,” within the meaning of the Investment” Company Act of
1940, as amended; or (b) a “holding company”, or a “subsidiary company” of a
“holding company”, or an “affiliate” of a “holding company” or of a “subsidiary
company” of a “holding company”, within the meaning of the Public Utility
Holding Act of 1935, as amended. Its sole business is the ownership, operation
and maintenance of the Mortgaged Property [and the Other
Properties].

    

    Section
7.26                                Compliance with ERISA and
State Statutes on Governmental Plans. (a) Borrower is not an “employee
benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I
of ERISA; (b) the assets of Borrower do not constitute “plan assets” of one or
more plans within the meaning of 29 C.F.R. Section 2510.3-101; (c) Borrower is
not a “governmental plan” within the meaning of Section 3(32) of ERISA; and (d)
transactions by or with Borrower are not subject to state statutes regulating
investments of and fiduciary obligations with respect to governmental
plans

    

    Section
7.27                                Hazardous Substances. Except as
otherwise disclosed by the Environmental Site Assessment (as defined in the
Lease), which Borrower furnished to Lender before the Closing Date, Borrower has
received no written notice or other communication from any Person and has no
actual Knowledge (a) that the Mortgaged Property is in direct or indirect
violation of any Environmental Laws; (b) that a Release of Hazardous Substances
has occurred or that Hazardous Substances are located on or have been handled,
generated,’ stored or processed at the Mortgaged Property (including underground
contamination) except for those Hazardous Substances used by Borrower or Tenant
or prior occupants in the ordinary course of its business and in compliance with
all Environmental Laws; (c) that the Mortgaged Property is subject to any actual
or threatened Lien or notice or action by any Governmental Authority relating to
Hazardous Substances; (d) of any existing or closed underground storage tanks or
other underground storage receptacles for Hazardous Substances located on the
Mortgaged Property; (e) of any investigation, action, proceeding or claim by any
Governmental Authority or by any third party which could result in any
liability, penalty, sanction or judgment under any Environmental Laws with
respect to any condition, use or operation of the Mortgaged Property nor does
Borrower know of any basis for such a claim; or (f) of any claim by any party
that any use, operation or condition of the Mortgaged Property has caused any
violation of Environmental Laws on any other property nor does Borrower have
actual Knowledge of any basis for such a claim.

    ARTICLE 8

    CASUALTY
AND CONDEMNATION

     

    Section
8.01                                Notice; Settlement.
If Borrower has knowledge of a Casualty or an actual or threatened Condemnation
with respect to the Mortgaged Property, Borrower will give or cause to be given
prompt notice thereof to Lender which notice will set forth in reasonable’
detail the facts or circumstances known to Borrower about each such Casualty or
Condemnation, and which will include, for any Condemnation copies of any papers
Borrower, has received in connection with such proceeding. Except as otherwise
permitted in the Lease, Borrower will not settle or adjust or permit the
settlement or adjustment of any insurance claim or Condemnation award,
compensation or other payment without Lender’s prior written consent.
Notwithstanding any Destruction, Borrower must continue to pay the Debt at the
time and in the manner provided for its payment in the Note and the Debt will
not be reduced until Lender has actually received any Net Award and applied it
to the discharge of the Debt. Lender will not be limited to the interest paid on
the award by the Governmental Authority but may receive out of the Net Award
interest at the rate or rates provided herein and in the Note. Borrower will
cause the award, compensation or other payment made in any Condemnation which is
payable to Borrower, to be paid directly to Lender.

    

    Section
8.02                                Restoration. The Net
Award required pursuant to the Lease to be applied to Restore the Mortgaged
Property will be disbursed in accordance with and subject to the conditions set
forth in Article 12 of the Lease. The Net Award that is not required to be
disbursed to Restore the Mortgaged Property pursuant to the provisions of the
Lease will, subject to Tenant’s rights to receive that portion of the Net Award
allocated to Tenant, be delivered to Lender. If no Event of Default exists, the
excess portion of the Net Award with the prior written consent of the insurer
under the RVI Policy shall be remitted to the Borrower and provided the insurer
under the RVI Policy has sent Borrower and Lender written confirmation that the
delivery to Borrower of such excess portion of the Net Award will not result in
a reduction of the coverage under the RVI Policy. Lender will deliver any such
excess portion of the Net Award to Borrower free of the Lien created by the
Indenture. If an Event of Default exists Lender may apply such excess portion of
the Net Award to pay the Debt in such order as Lender may elect in its
discretion.

     

    Section
8.03                                Claims for Net Award.
If the Mortgaged Property is sold, through foreclosure or otherwise, before
Lender receives any Net Award, Lender may, whether or not a deficiency judgment
on the Note has been sought, recovered or denied, receive said Net Award
(subject to the rights of Tenant under the Lease), or a portion thereof
sufficient to pay the Debt. Borrower will file and prosecute or cause to be
filed and prosecuted its claim or claims for any such Net Award in good faith
and with due diligence and subject to terms of the Lease cause the same to be
paid over to Lender. Borrower irrevocably authorizes and empowers Lender, in
Borrower’s name or otherwise, to collect and receipt for any such Net Award and
to file and prosecute such claim or claims. Although Borrower expressly agrees
that any further assignments or other instruments are not necessary, Borrower
will, upon demand of Lender, make, execute and deliver any and all assignments
and other instruments sufficient to assign any such Net Award to Lender, free
and clear of any Liens of any kind or nature whatsoever.

    ARTICLE
9

    EVENTS
OF DEFAULT/REMEDIES

     

    Section
9.01                                Events of Default.
The Debt shall become immediately due and payable at the option of Lender,
without notice or demand, upon any one or more of the following events or
occurrences (“Events of
Default”):

     

    
      	
               
      

            	
              (a)

            	
              (i)

            	
              if
      any portion of the Debt described in Section 3.01(a)(i), (ii) and. (iii)
      is not paid when due;

            

    

     

    (ii)           
if any portion of the Debt other than described in (a)(i) above is not paid
within three (3) business days after the corresponding payment is due by Tenant
under the Lease after all applicable grace or notice periods or if there is no
corresponding payment under the Lease, within five (5) business days after
Borrower receives written notice of such payments being due;

     

    (b)           if
the Lease is hypothecated without Lender’s prior written consent (except to the
extent permitted under the Lease);

    

    (c)           if
any representation or warranty of Borrower made in this Loan Agreement or in any
certificate, report or other financial statement or other instrument or document
delivered pursuant hereto, or any notice, certificate, demand or request
delivered to Lender pursuant to this Loan Agreement or the Security Documents
proves to be false or misleading in any material and adverse respect as of the
time when the same is made;

     

    (d)           if
Borrower violates or does not comply with the provisions of subsections 6(d),
(e), (f), (g), (j) or (k) of the Assignment of Lease, subsection 10.01(d)
hereof, the Transfer prohibitions of Article 5 hereof, or the separateness
covenants of Article 6 hereof;

    

    (e)           if
Borrower consummates a transaction which would cause this Loan Agreement or any
exercise of Lender’s rights under the Loan Documents (i) to constitute a
non-exempt prohibited transaction under ERISA, (ii) to violate a state statute
regulating governmental plans, or (iii) otherwise to subject Lender to liability
for violation of ERISA or such state statute;

     

    (f)           if
any final judgment for the payment of money, which is not fully (after permitted
deductible) covered by insurance, is rendered against Borrower and, Borrower
does not discharge the same or cause it to be discharged or vacated within one
hundred twenty (120) days from the entry thereof, or does not appeal therefrom
or from the order, decree or process upon which or pursuant to which said
judgment was granted, based or entered, and does not secure a stay of execution
pending such appeal within one hundred twenty (120) days after the entry
thereof;

     

    (g)           subject
to the provisions of subsection 4.02(b) hereof, if any of the Taxes or
Impositions are not paid before delinquency;

     

    (h)           if
the Policies are not kept in full force and effect in accordance with the
Insurance Requirements;

     

    (i)           if
Borrower makes an assignment for the benefit of creditors or if Borrower
generally does not pay its debts as they become due;

     

    (j)           if
a receiver, liquidator or trustee of Borrower is appointed or if Borrower is
adjudicated a bankrupt or insolvent, or if any petition for bankruptcy,
reorganization or arrangement pursuant to federal bankruptcy law, or any similar
federal or state law, is fled. by or against, consented to, or acquiesced in, by
Borrower or if any proceeding for the dissolution or liquidation of Borrower is
instituted; however, if such appointment, adjudication, petition or proceeding
is involuntary and is not consented to by Borrower, upon the same not being
discharged, stayed or dismissed within 120 days;

     

    (k)           if
Borrower defaults under any other mortgage or security agreement covering any
part of the Mortgaged Property whether it be superior or junior in Lien to the
Indenture and the same is accelerated as a result of such default;

     

    (1)           subject
to the provisions of subparagraph 4.02 hereof, if the Mortgaged Property becomes
subject to any mechanic’s, materialman’s or other Lien (other than for Taxes
which are not then due and payable) and such Lien remains undischarged of record
(by payment, bonding or otherwise) for a period of forty-five (45) days
beginning after Borrower has actual Knowledge thereof;

    

    (m)           except
for specific defaults set forth in this Section 9.01, if Borrower defaults in
the observance or performance of any other term, agreement or condition of this
Loan Agreement, and Borrower fails to remedy such default within thirty (30)
days after notice by Lender to Borrower of such default, or, if such default is
of such a nature that it cannot with due diligence be cured within said thirty
(30) day period, if Borrower fails, within said thirty (30) days, to commence
all steps necessary to cure such default, and fails to complete such cure within
two hundred forty (240) days after the end of such thirty (30) day period (or,
if the obligation giving rise to such default is also an obligation of Tenant
under the Lease, such longer cure period as Tenant is allowed under the Lease to
perform such obligation);

    

    (n)         except
for specific defaults set forth in this Section, 9.01, if Borrower defaults in
the observance or performance of any term, agreement or condition of the Note or
any of the Security Documents, and such default continues after the end of any
applicable cure period provided for therein and if no cure period is provided,
then after thirty (30) days notice and opportunity to cure, provided, that if any
default not otherwise described in this Section 9.01 occurs under the Assignment
of Lease solely as a result of a Lease Default then such default shall be
governed by the provisions of Section 9.01(o) hereof;

    

    (o)         if
one or more Lease Defaults exist, and if no other Event of Default exists
hereunder or under the other.Loan Documents except to the extent arising out of
such Lease Default(s), and Borrower fails to cure such Lease Defaults on
Tenant’s behalf; provided, however, Borrower’s
right to cure such Lease Defaults will be limited to (i) a thirty (30) day
period for Tenant’s failure to (1) pay Basic Rent or Additional Rent, and provided, however, that
Borrower will not have a right to cure Tenant’s failure to pay Basic Rent or
Additional Rent after the ninth (9th) consecutive month of such failure, or at
any time after there has been a total at any time of twenty-four (24) such
failures, (2) maintain Policies in accordance with the Insurance Requirements,
or (3) pay Taxes and Impositions in accordance with Paragraph 6 of the Lease,
(ii) a ninety (90) day period for any other Lease Defaults other than arising
under clause (iii) hereof; and (iii) with respect to a Lease Default following a
failure to Restore after a Casualty (as defined in the Lease) or a Taking (as
defined in the Lease) for which Borrower shall have (A) for a Casualty the
lesser of six months or the period of time permitted under the Grant of Variance
(as defined in the Lease) to cure such Lease Default, and (B) for a Taking the
lesser of twelve (12) months or the period of time permitted under the Grant of
Variance; and thereafter such Lease Defaults will be an Event of Default
hereunder;

    

    (p)          
if as a result of a bankruptcy or any other reason the Lease is canceled,
terminated, abridged, amended or modified (except as expressly provided for
herein), surrendered or rejected;

    

    (q)          if
any “Event of Default” (as defined in paragraph 20 of the Lease) occurs under
subparagraphs 20(a)(iii), (iv), (v), or (vii) of the Lease; and

    

    (r)          if
any of the following exist uncured for forty-five days following written notice
to Borrower: (i) the failure of any representation or warranty made by Borrower
under Section 7.26 to be true and correct in all respects, or (ii) Borrower
fails to provide Lender with the written certifications and evidence referred to
in Section 4.10(b).

    

    Section
9.02                               Remedies Generally.
If any Event of Default occurs, Lender may declare all or any portion of the
Debt to be immediately due and payable and may take such other actions, without
notice or demand, as it deems necessary to protect and enforce its rights
against Borrower and against the Mortgaged Property, including the right to
exercise the powers and remedies available under the Security Documents. If a
default occurs under the Grant of Variance that gives rise to the right of
Borrower to exercise its remedies under the Lease, then

    Lender
may exercise such remedies pursuant to the Assignment of Leases or may direct
Borrower to commence to exercise such remedies.

    

    Section
9.03                               Right to Cure
Defaults. If an Event of Default exists, Lender and/or Servicer may
(themselves or by their agents, employees, contractors, engineers, architects,
nominees, attorneys or other representatives), but without any obligation to do
so and without Notice to Borrower and without releasing Borrower from any
obligation hereunder, cure the Event of Default in such manner and to such
extent as Lender and/or Servicer may deem necessary to protect the security
hereof Subject to Tenant’s rights under the Lease and the SNDA, Lender and
Servicer (and their agents, employees, contractors, engineers, architects,
nominees, attorneys or other representatives) are authorized to enter upon the
Mortgaged Property to cure such Event of Default, and Lender and/or Servicer are
authorized to appear in, defend, or bring any action or proceeding reasonably
necessary to maintain, secure or otherwise protect the Mortgaged Property or the
priority of the Lien granted by the Indenture, or to foreclose the Indenture or
collect the Debt, including the right to make Protective Advances. All
Protective Advances will be immediately due and payable upon demand by Lender or
Servicer therefor and will bear interest at the Default Rate, for the period
after notice from Lender and/or Servicer that such cost or expense was incurred
to the date of payment in full of such Protective Advances to Lender and/or
Servicer.

    

    Section
9.04                               Prepayment After Event of
Default. If an Event of Default exists, and Borrower tenders payment of
an amount sufficient to satisfy the Debt at any time before a sale of the
Mortgaged Property either through foreclosure or the exercise of other remedies
available to Lender under this Loan Agreement and the Security Documents, such
tender by Borrower, will be
deemed to be a voluntary prepayment under the Note and this Loan Agreement, in
the amount tendered. Borrower must, in addition to the outstanding principal
balance of the Note, also pay to Lender a sum equal to (a) interest accrued and
unpaid on the principal balance of the Note to the date of such tender; (b) and
if the Event of Default exists because of an event of default under Section
20(a)(i) of the Lease only, an amount equal to the Prepayment Consideration
calculated from the date of such tender; and (c) all other amounts due under the
Loan Documents. Borrower acknowledges that the Prepayment Consideration
represents the reasonable estimate by Borrower and Lender of the fair
compensation for the loss that Lender may sustain due to the payment of the Note
before the due date thereof and is not a penalty. Subject to Section 12.20, such
Prepayment Consideration will be paid without prejudice to Lender’s right to
collect any other amounts Borrower is required to pay under the Loan
Documents.

    

    Section
9.05                                Right of Entry.
Subject to the rights of Tenant under the Lease and the SNDA, Lender and its
agents may at any time during normal business hours enter and inspect the
Mortgaged Property.

    

    Section
9.06                                Remedies under Security
Documents. If any Event of Default exists, Lender may, to the extent
permitted by Legal Requirements, exercise any or all of the rights and powers
and pursue any or all of the remedies set forth herein and in the Security
Documents.

    

    Section
9.07                                Actions and
Proceedings. Lender may appear in and defend any action or proceeding
brought with respect to the Mortgaged Property and may bring any action or
proceeding, in the name and on behalf of Borrower, which Lender, in its sole
discretion, decides should be brought to protect its interest in the Mortgaged
Property. Lender shall, at its option, be subrogated to the Lien of any mortgage
or other security instrument discharged in whole or in part by the Debt, and any
such subrogation rights shall constitute additional security for the payment of
the Debt.

    

    Section
9.08                              Waiver of
Counterclaim. All amounts due under the Loan Documents are payable
without setoff, counterclaim or any deduction whatsoever. Borrower waives the
right to assert a setoff, counterclaim (other than a mandatory or compulsory
counterclaim) or deduction in any action or proceeding brought against it by
Lender.

    

    Section
9.09                               Recovery of Sums Required to
Be Paid. Lender may from time to time take action to recover any sum or
sums which constitute a part of the Debt as the same become due, without regard
to whether or not the balance of the Debt shall be due, and without prejudice to
the right of Lender thereafter to bring an action of foreclosure, or any other
action, for a default or defaults by Borrower existing at the time such earlier
action was commenced.

    ARTICLE
10

    LEASE/LEASE
TERMINATION

    

    

    Section
10.01                               The Lease (a)
Borrower, by the Indenture and the Assignment of Lease, has absolutely and
unconditionally assigned to Lender, all of Borrower’s right, title and interest
in the Lease and the Rents, it being intended by Borrower that the assignment
constitutes a present, absolute assignment and not an assignment for additional
security only.

    

    (b)          Borrower
may, upon satisfaction of the conditions contained in Section 21 of the Lease,
permit Tenant to grant easements which provide utility or access to the
Mortgaged Property, and other licenses, rights-of-way, and other rights and
privileges like easements for - such purposes.

    

    (c)          Upon
Lender’s request, Borrower will request and use reasonable efforts to obtain,
with respect to the Lease, or the Mortgaged Property, an estoppel certificate
from Tenant in substantially the form required by the Lease or if not so
required, in form and substance reasonably satisfactory to Lender.

    

    (d)          Subject
to the provisions of Section 10.02, Borrower will not exercise its option to
reject Tenant’s Rejectable Offer arising under subparagraphs 12(c) of the Lease
without Lender’s prior written consent.

    

    Section
10.02                               Permitted Lease Termination
Events(a) At Borrower’s election, with Lender’s prior written consent,
Borrower may require Tenant to make a Rejectable Offer if a Permitted Lease
Termination Event occurs, provided the terms of this Section 10.02 shall apply.
Additionally, as set forth at Section 12(c)(I) of the Lease, under certain
circumstances after a Destruction, the Tenant may make a Rejectable Offer,
provided that the terms of this Section 10.2 shall apply.

    

    (b)         [intentionally
omitted]

    

    

     

    (c) if a
Permitted Lease Termination Event results from a Destruction and Tenant is
deemed to have made or has made a Rejectable Offer at the Article 12 Purchase
Price, Borrower must, at its option, either (i) accept the Rejectable Offer, in
which event Borrower will cause the Article 12 Purchase Price paid by Tenant to
be paid to Lender to apply in accordance with the terms of the Note, or (ii)
with Lender’s prior written consent, reject such Rejectable. Offer of the
Article 12 Purchase Price, provided, that if
Borrower elects to reject the Rejectable Offer of the Article 12 Purchase Price,
it must prepay the entire outstanding principal balance of the Note, together
with accrued and unpaid interest and charges thereunder and all other amounts
due hereunder at the time and in the manner provided below, but no Prepayment
Consideration shall be payable unless an Event of Default exists. If Borrower
fails to accept or reject Tenant’s Rejectable Offer of the Article 12 Purchase
Price within the period provided under paragraph 12(c) of the Lease, Borrower
will be deemed to have accepted such Rejectable Offer. If Borrower fails to
accept or reject Tenant’s Rejectable Offer of the Article 12 Purchase Price
within seventy (70) days after Tenant’s giving of the Rejectable Offer of the
Article 12 Purchase Price, then Lender may notify Tenant that Borrower and
Lender elect to accept Tenant’s Rejectable Offer of the Article 12 Purchase
Price, which notice of acceptance by Lender shall be as fully binding on
Borrower as if Borrower had joined in such acceptance. If Borrower desires to
reject the Rejectable Offer of the Article 12 Purchase Price, then within
seventy (70) days after Tenant’s giving of the notice of Rejectable Offer of the
Article 12 Purchase Price and before delivering notice of such rejection to
Tenant, Borrower shall deliver to Lender either (I) cash in an amount equal to
the Prepayment Amount, accrued and unpaid interest and charges thereon and if an
event of default exists under Section 20(a)(i) of the Lease, Prepayment
Consideration, or (II) a Letter of Credit, in an amount equal to the sum of (x)
the Prepayment Amount, accrued and unpaid interest and charges under the Note
through the next debt service payment date (the “Article 12 First Draw Date”)
and all amounts due hereunder calculated as if the settlement date is the
date of the delivery of such Letter of Credit and if adevent of default exists
under Section 20 (a)(i) of the Lease, Prepayment Consideration, and (y) all debt
service payments due through and including the debt service payment date
immediately succeeding the Article 12 First Draw Date. Such Letter of Credit
shall provide that on the Article 12 First Draw Date, if the payment due on such
date is not paid by Borrower, Lender may draw on the Letter of Credit in an
amount equal to such interest payment, and if Borrower does not pay in full the
Debt due under the Note before the next debt service payment date immediately
following the Article 12 First Draw Date, Lender may draw on such Letter of
Credit on such debt service payment date in an amount equal to the Prepayment
Amount, accrued and unpaid interest and charges under the Note and all amounts
due hereunder, including Prepayment Consideration if an event of default under
Section 20(a)(i) of the Lease exists. Borrower agrees to bear and will pay or
reimburse Lender on demand for all reasonable third party expenses (including,
reasonable attorneys’ fees and disbursements) incurred by Lender in connection
with the review and approval of such Letter of Credit and any drawing
thereunder. In addition, the Lien of the Indenture on the Mortgaged Property
will not be released until cash in an amount equal to the Prepayment Amount,
accrued and unpaid interest and charges under the Note and all amounts due
hereunder have been paid in full to Lender. If the conditions precedent set
forth in subsections (I) or (II) of this subsection 10.02(c) to Borrower’s
election to reject the Rejectable Offer of the Article 12 Purchase Price are
satisfied within the time period set forth therein, then Lender will consent to
Borrower’s election to reject such Rejectable Offer. If the conditions precedent
set forth in subsection 10.02(c)(ii) are not satisfied by Borrower, then
Borrower shall be deemed to have elected the option provided in subsection
10.02(c)(i). Upon request of Borrower and provided that Lender is required to
consent to such rejection pursuant to this subsection 10.02(c), Lender will
provide Tenant with written notice within seventy-five (75) days after the
giving of Tenant’s notice of Rejectable Offer of the Article 12 Purchase Price
that Lender elects not to accept Tenant’s Rejectable Offer of the Article 12
Purchase Price and such election not to accept Tenant’s Rejectable Offer shall
be fully binding upon Borrower as if Borrower had joined in such election not to
accept.

    

    

    ARTICLE
11

    INDEMNIFICATION

     

    Section
11.01                               General
Indemnification. In addition to any other indemnifications provided
herein, or in the Security Documents, Borrower will, at its sole cost and
expense protect, defend, indemnify and save harmless each of the Indemnified
Parties from and against all Indemnified Liabilities (except to the extent
caused by the negligence or willful misconduct of such Indemnified Party) which
is imposed on, incurred by or asserted or awarded against any Indemnified Party
because of (i) ownership of the Loan Documents, the Mortgaged Property or any
interest therein or receipt of any Rents; (ii) any accident, injury to or death
of persons or loss of or damage to property occurring in, on or about the
Mortgaged Property or on the adjoining sidewalks, curbs, adjacent property or
adjacent parking areas, streets or ways; (iii) any use, non-use or condition in,
on or about the Mortgaged Property or on adjoining sidewalks, curbs, adjacent
property or adjacent parking areas, streets or ways; (iv) any failure on
Borrower’s part to perform or comply with any of the terms of the Loan
Documents; (v) the performance of any labor or services or the furnishing of any
materials or other property in respect of the Mortgaged Property; (vi) to the
extent not covered by insurance, any personal injury (including wrongful death)
or property damage (real or personal) arising out of or related to Hazardous
Substances or asbestos; (vii) the Mortgaged Property’s failure to comply with
any Legal Requirements; (viii) the occupation, condition, operation, service,
design, maintenance or management of the Mortgaged Property; (ix) any tax, duty,
assessment or other charge imposed by any .Governmental Authority on the making
and recording of the Indenture or any other Security Document; and (x) a
violation under Section 4.10 hereof, including Indemnified Liabilities incurred,
directly or indirectly, by Lender to correct any prohibited transaction, to sell
a prohibited loan, or to obtain any individual prohibited transaction exemption
under ERISA that may be required, in Lender’s sole discretion, as a result of
such a violation. Any Indemnified Liabilities payable to any of the Indemnified
Parties because of the application of this Section 11.01 will be secured by the
Indenture and will become immediately due and payable and will bear interest at
the Default Rate from the date such Indemnified Liability is sustained by any of
the Indemnified Parties until paid. Borrower’s obligations and liabilities under
this Section 11.01 will survive any termination, satisfaction or assignment of
the Loan Documents and the exercise by Lender of any of its rights or remedies
under the Loan Documents including, the acquisition of the Mortgaged Property by
foreclosure or a conveyance in lieu of foreclosure as to events occurring prior
thereto.

     

    Section
11.02                               Tax Indemnification.
Borrower assumes liability for, guarantees payment to Lender of, and agrees to
protect, defend, indemnify and save harmless each of the
Indemnified

    

    Parties
from and against any increased or additional tax liability as a result of the
occurrence of any action whatsoever taken by the Borrower or any Beneficial
Owner or member of Borrower, including, any amendment, modification, revision or
alteration to the Loan Documents, or, any trust agreement entered into by any of
the Indemnified Parties with respect to the Loan or the certificates issued
thereunder, to the extent requested by either the Borrower or any Beneficial
Owner or member of Borrower, that alter, affect, change or modify the tax
treatment, tax characterization, state law characterization, or in any other way
alter, affect, change or modify the nature of the trust so created (as defined
in the above-mentioned trust agreement or the certificates) including, taxes
imposed on the trustee thereof as a result of such trust not being treated as a
grantor trust for federal income tax purposes (assuming that before such change
such tax treatment was valid), to the extent such taxes exceed the amount that
would be otherwise payable by a lender if the trust were treated as a grantor
trust.

    

    

    

    ARTICLE
12

    

    MISCELLANEOUS

    

    Section
12.01                               Waiver of Notice.
Borrower will not be entitled to any notices of any nature whatsoever from
Lender except for matters for which this Loan Agreement specifically and
expressly provides for the giving of notice by Lender to Borrower and except for
matters for which applicable Legal Requirements require Lender to give notice.
Borrower expressly waives the right to receive any notice from Lender for any
matter for which this Loan Agreement does not specifically and expressly require
Lender to give notice to Borrower.

    

    Section
12.02                               Remedies of Borrower.
If a claim or adjudication is made that Lender has acted unreasonably or
unreasonably delayed acting in any case where by law or under the. Loan
Documents, it has an obligation to act reasonably or promptly, Lender will not
be liable for any monetary damages, and Borrower’s remedies will be limited to
injunctive relief or declaratory judgment.

    

    Section
12.03                               Sole Discretion of
Lender. Wherever pursuant to this Loan Agreement, Lender exercises any
right given to it to approve or disapprove, or any arrangement or term is to be
satisfactory to Lender, the decision of Lender to approve or disapprove or to
decide that arrangements or terms are satisfactory or not satisfactory will be
in the sole discretion of Lender and will be final and conclusive, except as may
be otherwise expressly and specifically provided herein.

    

    Section
12.04                               Non-Waiver. Lender’s
failure to insist upon strict performance of any term hereof will not be deemed
to be a waiver of any term of this Loan Agreement. Borrower will not be relieved
of Borrower’s obligations hereunder because of (i) Lender’s failure to comply
with any request of Borrower to take any action to foreclose the Indenture or
otherwise enforce any of the provisions hereof or of the Note or the Security
Documents, (ii) the release, regardless of consideration, of the whole or any
part of the Mortgaged Property, or of any Person liable for the Debt or any
portion thereof, (iii) any agreement or stipulation by Lender extending the time
of payment or otherwise modifying or supplementing the terms of the Note, this
Loan Agreement or the Security Documents, or (iv) Lender’s acceptance of any
partial payment of Debt from time to time.

    

    Section
12.05                               No Oral Change. This
Loan Agreement, and any provisions hereof, may not be modified, amended, waived,
extended, changed, discharged or terminated orally or by any .act or failure to
act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

    

    Section
12.06                                Liability/Successor and
Assigns. If Borrower consists of more than one Person, the obligations
and liabilities of each such Person hereunder shall be joint and several. This
Loan Agreement will be binding upon and inure to the benefit of Borrower and
Lender and their respective successors and assigns forever.

    

    Section
12.07                                Unenforceable
Provisions. If any term, agreement or condition of the Note or this Loan
Agreement is held to be invalid, illegal or unenforceable in any respect, the
Note and this Loan Agreement will be construed without such
provision.

    

    Section
12.08                                Servicer. Lender may,
at Borrower’s sole cost and expense, from time to time appoint a Servicer. The
Servicer will have the power and authority to exercise all of the rights and
remedies of Lender and to act as agent of Lender hereunder.

    

    Section
12.09                                Duplicate Originals.
This Loan Agreement may be executed in: any number of duplicate originals and
each such duplicate original will be deemed to be an original.

    

    Section
12.10                                Assignments. Lender
may assign or transfer its rights under this Loan Agreement without limitation.
Any assignee or transferee will be entitled to all the benefits afforded Lender
hereunder.

    Section
12.11                                Risk of Loss,
etc.

    

    (a)           The
risk of loss or damage to the Mortgaged Property is on Borrower, and Lender will
have no liability whatsoever for a decline in the Mortgaged Property’s value,
for a failure to maintain the Policies, or for a failure to determine whether
insurance in force is adequate as to the amount of risks insured. Possession by
Lender will not be deemed an election of judicial relief, if any such possession
is requested or obtained, against any Mortgaged Property or collateral not in
Lender’s possession.

    

    (b)           Lender
may resort for the payment of the Debt to any other security held by Lender in
such order and manner as Lender, in its discretion, may elect. Lender may take
action to recover the Debt, or any portion thereof, or to enforce any agreement
hereof without prejudice to the right of Lender thereafter to foreclose the
Indenture. The rights and remedies of Lender under the Indenture are separate,
distinct and cumulative and none will be given effect to

    the
exclusion of the others. No act of Lender will be construed as an election to
proceed under any one provision under the Indenture to the exclusion of any
other provision. Lender will not be limited exclusively to the rights and
remedies stated in the Indenture but may exercise every right and remedy now or
hereafter afforded at law or in equity.

    

    Section
12.12                              Cooperation.

    

    (a)          Borrower
acknowledges that Lender may (i) sell, transfer or assign this Loan Agreement,
the Note and Security Documents to a trust or to one or more investors as a
whole loan in a rated or unrated public offering or private placement; (ii)
grant participation interests in the Loan to one or more investors in a rated or
unrated public offering or private placement; (iii) deposit this Loan Agreement,
the Note and Security Documents with a trust, which trust may sell certificates
to investors evidencing an ownership interest in the trust assets in a rated or
unrated public offering or private placement; or (iv) otherwise sell the Loan or
interests therein to investors in a rated or unrated public offering or private
placement (the transactions referred to in clauses (i) through (iv) are
hereinafter referred to as “Secondary Market Transactions”).
Borrower shall cooperate in good faith with Lender (but shall not be
obligated to incur any out-of-pocket expense) to effect any such Secondary
Market Transaction and to implement all requirements imposed by any NRSRO
involved in any Secondary Market Transaction, including:

    

    (i)          making
available to Lender all readily available information concerning Borrower’s
business and operations which Lender may reasonably request, including financial
information relating to the Mortgaged Property and such other information and
documents relating to Borrower, Tenant, the Lease or any Mortgaged Property as
Lender may reasonably request;

    

    (ii)          at
Lender’s cost and expense and subject to the rights of Tenant, performing or
permitting or causing to be performed or permitted such site inspections,
appraisals, market studies, environmental reviews and reports (Phase I’s and, if
appropriate, Phase II’s, subject to the provisions of the Lease), engineering
reports and other due diligence investigations of any Mortgaged Property, as
Lender may request or as may be necessary or appropriate in connection with the
Secondary Market Transaction; and

    

    (iii)          at
Lender’s cost and expense making all structural or other changes to the Loan,
modifying any documents evidencing or securing the Loan, modifying the
organizational documents of Borrower, using reasonable efforts to cause the
modification of the Lease, delivering opinions of counsel acceptable to the
Rating Agencies and addressing such matters as the Rating Agencies may require;
provided, however, that Borrower will not be required to modify the amortization
schedule of the Loan, alter Borrower’s contingent liabilities, alter the Rents
payable under the Lease, alter the Termination Value computed pursuant to
Schedule C of the Lease or modify any term of the Loan if such modification
would adversely affect Borrower in any material respect nor be required to
modify the provisions of Article 5, or Sections 9.01, this Section 12.12 or
Section 12.13 hereof.

    

    Borrower
must provide such information and documents as are in Borrower’s possession,
custody, or control or which Borrower may obtain without unreasonable effort
relating to Borrower, any guarantor, the Mortgaged Property, the Lease and
Tenant (provided that Borrower shall not be obligated to provide information
which is the subject of a confidentiality agreement with a third party) as
Lender or any Rating Agency may reasonably request in connection with a
Secondary Market Transaction. Lender may provide to prospective investors any
information in its possession, including, financial statements relating to
Borrower, the Mortgaged Property and Tenant, and Lender may share such
information with the investment banking firms, Rating Agencies, accounting
firms, law firms and other third-party advisory firms involved with the Loan or
the Secondary Market Transaction. It is understood that the information provided
by Borrower to Lender may ultimately be incorporated into the offering documents
for the Secondary Market Transaction and thus such information may be disclosed
to various investors in connection with the Secondary Market Transaction. Lender
may rely on the information supplied by or on Borrower’s behalf.

    

    (b)          If
any Secondary Market Transaction includes the preparation of a preliminary and
final private placement memorandum, offering circular or prospectus, Borrower
agrees to provide in connection with such Secondary Market Transaction, at the
reasonable cost and expense of Lender, a certificate certifying to Lender that
Borrower has carefully examined the portion of such memorandum, offering
circular or prospectus relating to the Mortgaged Property, the Lease, the Loan
and Borrower and that such sections will not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements made, in the light of the circumstances under which they were made,
not misleading with respect to the Mortgaged Property, the Lease, the Loan or
Borrower. Further, if any Secondary Market Transaction includes the preparation
of such memorandum, offering circular or prospectus which requires disclosure
about the Mortgaged Property, the Lease or the Loan, BORROWER, TO THE EXTENT
PERMITTED BY LAW, HEREBY INDEMNIFIES THE INDEMNIFIED PARTIES FROM AND AGAINST
ANY INDEMNIFIED LIABILITIES TO WHICH THE INDEMNIFIED PARTIES MAY BECOME SUBJECT
(INCLUDING ANY LEGAL OR OTHER EXPENSES REASONABLY INCURRED BY THEM) IN
CONNECTION WITH INVESTIGATING OR DEFENDING ANY SUCH INDEMNIFIED LIABILITY TO THE
EXTENT ANY SUCH INDEMNIFIED LIABILITY IS BASED UPON ANY UNTRUE STATEMENT OF ANY
MATERIAL FACT CONTAINED IN SUCH SECTIONS REVIEWED AND CERTIFIED BY BORROWER OR
IS BASED UPON THE OMISSION TO STATE THEREIN A MATERIAL FACT REQUIRED TO BE
STATED IN SUCH SECTIONS OR NECESSARY TO MAKE THE STATEMENTS IN SUCH SECTIONS, IN
LIGHT OF THE CIRCUMSTANCES UNDER WHICH THEY WERE MADE, NOT MISLEADING; provided,
however, that Borrower will be liable in any such case under the preceding
indemnification only to the extent that any such Indemnified Liability is based
upon any such untrue statement or omission made therein in reliance upon and in
conformity with information furnished to Lender by or on behalf of Borrower.
Nothing contained herein shall impose liability upon Borrower for any
Indemnified Liability arising out of or based upon an untrue statement of any
material fact contained in any statement, report or document provided to Lender
on behalf of Borrower by a party who is not an Affiliate of Borrower (a “Third Party Report”) or arising out of or
based upon the omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, unless Borrower has
actual Knowledge that such Third Party Report contains such untrue statement or
omission. This indemnity agreement is in addition to any liability which
Borrower may otherwise have, and shall survive payment in full of the Debt or
any termination or satisfaction of the Lien of the Indenture or foreclosure of
the Indenture.

    

    The
provisions of this Section 12.12 do not apply to the initial sale of the Loan
which is expected to occur immediately after the closing of the Loan. The
Borrower’s liability under this Section 12.12 is limited in accordance with the
provisions of Section 12.13 hereof.

    IMPORTANT - READ
THIS

    

    BORROWER ACKNOWLEDGES THAT PURSUANT TO THE FOREGOING INDEMNITY (IN SECTION 11.01 AND
SECTION 11.02) IT HAS AGREED TO INDEMNIFY AND HOLD HARMLESS THE
INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL LIABILITIES
ARISING BY REASON OF THE ACTS OR OMISSIONS OF ANY OF THE INDEMNIFIED
PARTIES AND OTHERWISE, WHICH LIABILITIES INCLUDE, WITHOUT
LIMITATION, EXCEPT AS PROVIDED ABOVE, SOLE NEGLIGENCE, CONCURRENT NEGLIGENCE, STRICT LIABILITY, CRIMINAL LIABILITY, STATUTORY
LIABILITY, LIABILITY FOR INJURIES NOT COMPENSATED BY WORKERS’ COMPENSATION
INSURANCE, OTHER INJURIES OR LOSSES NOT COVERED BY INSURANCE
AND LIABILITY ARISING AS A RESULT OF WAIVERS, EXCULPATIONS,
DISCLAIMERS OR RELEASES. IF SUCH LIABILITY ARISES BY REASON OF THE
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF AN INDEMNIFIED PARTY (OR INDEMNIFIED
PARTIES, AS THE CASE MAY
BE) (HEREINAFTER A “RESPONSIBLE INDEMNIFIED PARTY”) THIS INDEMNITY SHALL NOT EXTEND TO ANY SUCH RESPONSIBLE INDEMNIFIED PARTY, BUT SHALL EXTEND
TO ALL OTHER INDEMNIFIED PARTIES.

    

    Section
12.13                              Recourse Provisions.
Subject to the qualifications below, Lender will not enforce the liability and
obligation of Borrower to perform and observe the obligations contained in this
Loan Agreement, the Note or in any of the Security Documents (other than the
Guaranty Agreement) by any action or proceeding wherein a money judgment or
personal liability is sought against Borrower or any other Released Parties,’
except that Lender may bring a foreclosure action, an action for specific
performance or in any other appropriate action or proceeding to enable Lender to
enforce and realize upon its interests under the Note, this Loan Agreement or
the Security Documents or in the Mortgaged Property, or in any other collateral
given to Borrower pursuant to this Loan Agreement and the Security Documents;
provided, however, that, except as specifically provided herein, any judgment in
any such action or proceeding will be enforceable against Borrower only to the
extent of Borrower’s interest in the Mortgaged Property, and Lender, by
accepting this Loan Agreement, the Note and the Security Documents, agrees that
it will not sue for, seek or demand any deficiency judgment against Borrower or
any of the other Released Parties in any such action or proceeding under, or
because of, or in connection with this Loan Agreement, the Note or the Security
Documents. The provisions of this section do not, however, (a) constitute a
waiver, release or impairment of any obligation evidenced or secured by the
Note, this Loan Agreement or any of the Security Documents; (b) impair Lender’s
right to name Borrower as a party defendant in any action or suit for
foreclosure and sale under the Indenture; (c) affect the validity or
enforceability of any guaranty made in connection with the Debt or any of the
rights and remedies of Lender thereunder; (d) impair Lender’s right to obtain
the appointment of a receiver; (e) impair the enforcement of the Assignment of
Lease; or (f) constitute a waiver of Lender’s right to enforce the liability and
obligation of Borrower, by money judgment or otherwise but only to the extent of
Borrower’s interest in the Mortgaged Property, to the extent Lender incurs any
loss, damage, cost, expense, liability, claim or other obligation (including,
attorneys’ fees and costs reasonably incurred) arising out of or in connection
with the following:

    

    (i)          Borrower’s
failure to account for Tenant’s security deposits, if any, for Rents or any
other payment collected by Borrower from Tenant under the ‘ Lease in accordance
with the provisions of the Loan Documents;

    

    (ii)          while
an Event of Default exists, Borrower’s failure to pay 100% of Basic Rent and
Additional Rent (other than Excepted Rights and Payments) received by Borrower
to repay the Debt;

    

    (iii)           fraud
or a material misrepresentation made by Borrower, or the holders of beneficial
or ownership interests in Borrower, in. connection
with the financing evidenced by the Loan Documents;

    

    (iv)           any
attempt by Borrower to divert or otherwise cause to be diverted any amounts
payable to Lender or Servicer for Lender’s benefit in accordance with the Loan
Documents;

    

    (v)           the
misappropriation or misapplication by Borrower of any insurance proceeds or
Condemnation awards relating to the Mortgaged Property;

    

    (vi)           Borrower’s
failure to maintain its existence as a special purpose, “bankruptcy remote”
entity, in good standing, as required by Article 6 hereof;

    

    (vii)          a
Transfer in violation of Section 5.02 hereof; or,

    

    (viii)           
any environmental matter(s) adversely affecting the Mortgaged Property which is
introduced or caused by Borrower or any member of Borrower.

    

    Notwithstanding
anything to the contrary in the Loan Documents, (i) Lender shall not be deemed
to have waived any right which Lender may have under Sections 506(a), 5 06(b),
1111(b) or any other provisions of the Bankruptcy Code to file a claim for the
full amount of the Debt or to require that all collateral shall continue to
secure all of the Debt owing to Lender, and (ii) the Debt will become fully
recourse to Borrower (but not any member, partner or beneficiary thereof or any
other Released Party [other than Borrower]) if: (A) Borrower fails to provide
financial information in accordance with the provisions of, this Loan Agreement;
(B) Borrower fails to obtain Lender’s prior written consent to any Transfer as
required by this Loan Agreement; or (C) Borrower fails to satisfy the provisions
of Section 4.01 hereof.

    

    Section
12.14                                Governing Law; Submission to
Jurisdiction. THIS LOAN AGREEMENT SHALL BE GOVERNED AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND
THE LAWS OF THE UNITED STATES APPLICABLE TO TRANSACTIONS IN THE
STATE OF TEXAS BORROWER, AND EACH ENDORSER HEREBY SUBMITS TO
PERSONAL JURISDICTION IN SAID STATE AND THE FEDERAL COURTS OF THE
UNITED STATES OF AMERICA LOCATED IN SAID STATE (AND ANY APPELLATE COURTS
TAKING APPEALS THEREFROM) FOR THE ENFORCEMENT OF SUCH BORROWER’S, ENDORSER’S
OBLIGATIONS HEREUNDER, UNDER THE NOTE, AND THE OTHER SECURITY DOCUMENTS, AND
WAIVES ANY AND ALL PERSONAL RIGHTS UNDER THE LAW OF ANY OTHER STATE TO OBJECT TO
JURISDICTION WITHIN SUCH STATE
FOR THE PURPOSES OF SUCH ACTION,
SUIT, PROCEEDING OR LITIGATION TO ENFORCE SUCH OBLIGATIONS OF BORROWER OR ENDORSER. BORROWER AND EACH ENDORSER
HEREBY WAIVES AND AGREES NOT TO
ASSERT, AS A
DEFENSE IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
LOAN AGREEMENT, THE NOTE, OR ANY OF THE SECURITY DOCUMENTS, (A) THAT IT IS NOT
SUBJECT TO SUCH JURISDICTION OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE
BROUGHT OR IS NOT MAINTAINABLE IN THOSE COURTS OR THAT THIS LOAN AGREEMENT, THE
NOTE, AND/OR ANY OF THE SECURITY DOCUMENTS MAY NOT BE ENFORCED IN OR BY THOSE
COURTS OR THAT IT IS EXEMPT OR IMMUNE FROM EXECUTION, (B) THAT THE ACTION, SUIT
OR PROCEEDING IS BROUGHT IN
AN INCONVENIENT FORUM, (C) THAT THE VENUE OF THE ACTION, SUIT OR
PROCEEDING IS IMPROPER OR (D) THAT LENDER IS BARRED FROM FILING SUIT DUE TO ITS
NOT HAVING QUALIFIED TO DO BUSINESS IN THE STATE WHERE THE MORTGAGED PROPERTY IS
LOCATED. IF ANY SUCH ACTION, SUIT, PROCEEDING OR LITIGATION IS COMMENCED,
BORROWER OR ENDORSER AGREE THAT SERVICE OF PROCESS MAY BE MADE, AND PERSONAL
JURISDICTION OVER BORROWER OR ENDORSER OBTAINED, BY SERVICE OF A COPY OF THE
SUMMONS, COMPLAINT AND OTHER PLEADINGS REQUIRED TO COMMENCE SUCH LITIGATION UPON BORROWER OR
ENDORSER AT BORROWER’S ADDRESS FIRST ABOVE
WRITTEN.

     

    Section
12.15 Waiver of Jury
Trial. TO THE EXTENT PERMITTED BY LAW, BORROWER HEREBY AGREES NOT TO
ELECT A TRIAL BY JURY OF
ANY ISSUE TRI ABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY
JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER
EXIST WITH REGARD TO THE
NOTE, THIS LOAN AGREEMENT, OR THE SECURITY DOCUMENTS, OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION WITH THIS LOAN AGREEMENT, THE
NOTE, ANY OF THE SECURITY DOCUMENTS OR THE DEBT. THIS WAIVER OF RIGHT TO TRIAL
BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER AND IS INTENDED TO
ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A
TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE A COPY
OF THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY
BORROWER.

     

    Section
12.16                               Consent Specific/No Deemed
Waiver. Any consent or approval by Lender in any single instance will not
be deemed or construed to be Lender’s consent or approval in any like matter
arising at a subsequent date, and Lender’s failure to promptly exercise any
right, power, remedy, consent or approval provided herein or at law or in equity
shall not constitute or be construed as a waiver of the same nor shall Lender be
estopped from exercising such right, power, remedy, consent or approval at a
later date. Any consent or approval requested of and granted by Lender pursuant
hereto shall be narrowly construed to be applicable only to Borrower and the
matter identified in such consent or approval and no third party may claim any
benefit by reason thereof, other than the party to whom such consent or approval
was given or reasonably intended to benefit, and any such consent or approval
shall not be deemed to constitute Lender a venturer or partner with Borrower nor
shall privity of contract be presumed to have been established with any such
third party.

    

    Section
12.17                               No Forfeiture.
Borrower represents and warrants to Lender that, as of the Closing Date,
Borrower has not committed any act or omission affording any Governmental
Authority the right of forfeiture against the Mortgaged Property or any monies
paid in performance of Borrower’s obligations under the Loan Documents. Borrower
agrees not to commit, permit or suffer to exist any act, omission or
circumstance affording such right of forfeiture. In furtherance thereof,
Borrower indemnifies Lender and agrees to defend and hold Lender harmless from
and against any Costs because of the breach of the agreements or the
representations and warranties set forth in this paragraph.

    

    Section
12.18                                Notices. All
communications herein provided for or made pursuant hereto shall be in writing
and shall be sent by (i) registered or certified mail, return receipt requested,
and the giving of such communication shall be deemed complete on the third
Business Day (as such term is defined in the Lease) after the same is deposited
in a United States Post Office with postage charges prepaid, (ii) reputable
overnight delivery service with acknowledgment receipt

    returned,
and the giving of such communication shall be deemed complete on the immediately
succeeding Business Day after the same is timely deposited with such delivery
service, or (iii) hand delivery by reputable delivery service:

    

    To
Lender:

    

    Legg Mason Real Estate Services,
Inc.

    Miami
Regional Office

    15050
N.W. 79th Court,
Suite 101

    Miami
Lakes, Florida 33016

    Attention:
Servicing Department

    

    with a
copy concurrently to:

    

    Ballard
Spahr Andrews & Ingersoll, LLP

    300 East
Lombard Street, 18th
Floor

    Baltimore,
Maryland 21202

    Attention:
Fred Wolf, III, Esquire

    

     

    

    To
Borrower:

     

    Beltway
Assets LLC

    58 47 San
Felipe, Suite 2600

    Houston,
Texas 77057

    Attention:
J. Richard Rosenberg, Vice President and Chief Financial Officer

    

    With a
copy concurrently to:

    

    Beltway
Assets LLC

      
5847 San Felipe, Suite 2600

      
Houston, Texas 77057

    Attention:
Erik A. Eriksson, Jr., Vice President

    

    With a
copy concurrently to:

    

       
Schlanger, Mills, Mayer & Silver, L.L.P.

       
109 North Post Oak Lane, Suite 300

       
Houston, Texas 77024

      
Attention: Lee D. Schlanger, Esq.

    

    Section
12.19                                Estoppel Certificates
(a) After request by Lender, Borrower will within ten (10) days furnish Lender
with a statement, duly acknowledged and certified, setting forth (i) the
original principal amount of the Note, (ii) the unpaid principal amount of the
Note, (iii) the rate of interest of the Note, (iv) the date installments of
interest and/or principal were, last paid, (v) any offsets or defenses to the
payment of the Debt, if any, (vi) that the Loan Documents are valid, legal and
binding obligations and have not been modified or if modified,, giving
particulars of such modification, and (vii) such other matters as Lender shall
reasonably request.

     

    (b)           After
request by Borrower, Lender will within ten (10) days furnish Borrower with a
statement, duly acknowledged and certified, setting forth (i) the original
principal amount of the Note, (ii) the unpaid principal amount of the Note, and
(iii) the date installments of interest and/or principal were last
paid.

     

    Section
12.20                                Usury Laws. It is
expressly stipulated and agreed to be the intent of Borrower and Lender at all
times to comply with the applicable Texas law governing the maximum rate or
amount of interest payable on the Note or the Debt evidenced by the Note and by
the other Loan Documents (or, to the extent it would permit a greater rate or
amount of interest on the Note or the Debt evidenced by the Note and by the
other Loan Documents, applicable United States federal law) to the end that
neither Borrower nor Lender shall have contracted for, and Lender shall not
charge, take, reserve or receive, and Borrower shall not pay, a greater amount
of interest than under Texas law or applicable United State federal law. If (i)
the applicable law is ever judicially interpreted so as to render usurious any
amount called for under the Note or under any of the other Loan Documents, or
contracted for, charged, taken, reserved or received with respect to the Debt,
or (ii) Lender’s exercise of any remedy hereunder or under the other Loan
Documents, including the option herein contained to accelerate the maturity of
the Note, or any prepayment by Borrower, results in Lender having charged,
taken, reserved or received, and Borrower having paid, any interest in excess of
that permitted by applicable law, then it is Borrower’s and Lender’s express
intent that (A) all amounts theretofore collected by Lender in excess of the
maximum amount of interest allowed by applicable law be credited on the
principal balance of the Note (or, if the Note has been or would thereby be paid
in full, refunded to Borrower), and (B) the provisions of the Note and the other
Loan Documents immediately be deemed reformed and the amounts thereafter
payable, chargeable or collectible hereunder and thereunder reduced, without the
necessity of the execution of any new document, so as to comply with the
applicable law, but so as to permit the recovery of the fullest amount otherwise
called for hereunder and thereunder which does not exceed the maximum amount of
interest allowed by applicable law. All sums paid or agreed to be paid to Lender
for the use, forbearance and detention of the Debt evidenced by the Note and by
the other Loan Documents shall, to the extent permitted by applicable law, be
amortized, prorated, allocated and spread throughout the full term of such Debt
until payment in full so that the rate or amount of interest on account of such
Debt does not exceed the usury ceiling from time to time in effect and
applicable to such Debt for so long as debt is outstanding. To the extent that
Lender is relying on Chapter 303, as amended, of the Texas Finance Code to
determine the Maximum Lawful Rate (hereafter defined) payable on such Debt,
Lender will utilize the weekly rate ceiling from time to time in effect as
provided in such Chapter 303, as amended. To the extent United States federal
law permits Lender to contract for, charge or receive a greater amount of
interest than Texas law, Lender will rely on United States federal law instead
of such Chapter 303, as amended, for the purpose of determining the Maximum
Lawful Rate and the maximum amount permitted by applicable Law. Additionally, to
the extent permitted by applicable law now or hereafter in effect and the Loan
Documents, Lender may, at its option and from time to time, implement any other
method of computing the Maximum Lawful Rate under such Chapter 303, as amended,
or under other applicable law by giving notice, if required, to Borrower as
provided by applicable law now or hereafter in effect. In no event shall the
provisions of Chapter 346 of the Texas Finance Code (which regulates certain
revolving credit loan accounts and revolving triparty accounts) apply to the
Debt evidenced by the Note. Notwithstanding anything to the contrary contained
herein or in any of the other Loan Documents, it is not the intention of Lender
to accelerate the maturity of any interest that has not accrued at the time of
such acceleration or to collect unearned interest at the time of such
acceleration. “Maximum Lawful
Rate” shall mean the maximum lawful rate of interest which may be
contracted for, charged, taken, received or reserved by Lender in accordance
with the applicable laws of the State of Texas (or applicable United States
federal law to the extent that it permits Lender to contract for, charge, take,
receive or reserve a greater amount of interest than under Texas law), taking
into account all Charges (hereafter defined) made in connection with the loan
evidenced by the Note and the Loan Documents. “Charges” shall mean all fees and
charges, if any, contracted for, charged, received, taken or reserved by Lender
in connection with the transactions relating to the Note and the Debt evidenced
by the Note or by the Loan Documents which are treated as interest under
applicable law. The term “applicable law” as used in
this Section 12.20 shall mean the laws of the State of Texas or the laws of the
United States, whichever allows the greater rate or amount of non-usurious
interest to be contracted for, charged, taken, reserved or received with respect
to the Debt evidenced by the Note and the other Loan Documents, as such laws now
exist or may be changed or amended or come into effect in the
future.

    Section
12.21                                [Intentionally
Deleted]

    

    Section
12.22                              Final Agreement of the
Parties. THE LOAN
DOCUMENTS ARE A WRITTEN
LOAN AGREEMENT UNDER SECTION 26.02 OF THE TEXAS BUSINESS AND COMMERCE CODE. SUCH WRITTEN LOAN
AGREEMENT (BEING ALL OF THE LOAN DOCUMENTS) REPRESENTS THE FINAL AGREEMENT
BETWEEN THE PARTIES 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.

    

    

    
      
         

      

      
        
          

        

      

       

    

    APPENDIX A

    

    RULES OF CONSTRUCTION AND
DEFINITIONS

    

    

    As used
herein, unless otherwise specified or the context otherwise
requires:

    

    (a)           any
term defined in this Appendix by reference to another instrument or document
shall continue to have the meaning ascribed thereto whether or not such other
instrument or document remains in effect;

    

    (b)           words
which include a number of constituent parts, things or elements, shall be
construed as referring separately to each constituent part,- thing or
element thereof, as well as to all of such constitute parts, things or elements
as a whole;

    

    (c)           
references to any Person include such Person and its successors and permitted
assigns and in the case of an individual, the word “successors” includes such
Person’s heirs, devisees, legatees, executors, administrators and personal
representatives;

    

    (d)           singular
words connote the plural as well as the singular, and vice versa as may be
appropriate;

    

    (e)           words
importing a gender include any gender;

    

    (f)           the
words “consent”, “approve”, “agree” and “request”, and derivations thereof or
words of similar import, mean the prior written consent, approval, agreement, or
request of the Person in question.

    

    (g)           a
reference to any statute, regulation, proclamation, ordinance or law includes
all statutes, regulations, proclamations, ordinances or laws varying,
consolidating or replacing them, and a reference to a statute includes all
regulations, proclamations, and ordinances issued or otherwise applicable under
that statute

    

    (h)           a
reference to a document includes an amendment or supplement to, or replacement
or novation of, that document;

    

    (i)           the
words “including” and “includes”, and words of similar import, shall be deemed
to be followed by the phrase “without limitation”;

    

    (j)           the
words “herein” “hereof, ‘ “hereunder” “thereof’, and “thereunder” and words of
similar import, when used with respect to a document, shall be deemed to refer
to the document as a whole and not to the specific section or provision where
such word appears unless so stated;

    

    (k)           
unless the context shall otherwise require, a reference to the “Mortgaged
Property” or “Improvements” shall be deemed to be followed by the phrase “or a
portion thereof “;

    (1)           the
Schedules, Exhibits and Appendices to the Loan Documents are incorporated
therein by reference;

    

    (m)           
the titles and headings of Articles, Sections, Schedules, Exhibits, subsections,
paragraphs and clauses are inserted as a matter of convenience to the Loan
Documents and shall not affect the construction of the Loan
Documents;

    

    (n)           references
to any Loan Documents include all amendments, supplements, consolidations,
replacements, restatements, extensions, renewals and other modifications
thereof, in whole or in part; and

    

    (o)           the
terms “agree” and “agreements” contained herein are intended to include and mean
“covenant” and “covenants”.

    

    “Acceding Beneficial Owner”
means a Person to whom a Beneficial Owner Transfers its interest in
Borrower.

    

    “Additional Rent” is defined
in paragraph 3(b) of the Lease.

    

    “Affiliate” means, at any time
and with respect to any Person, any other Person or group acting in concert with
the Person in question that at such time directly or indirectly through one or
more intermediaries controls, or is controlled by or is under common control
with such Person.,

    

    “Alterations” is defined in
paragraph 10(c) of the Lease.

    

    “Applicable Rate” is defined
in the Note.

    

    “Article 12 First Draw Date”
is as defined in Section 10.02(c) of the Loan Agreement.

    

    “Article 12 Purchase Price”
means the purchase price offered or deemed offered pursuant to a
Rejectable Offer made or deemed made upon the occurrence of a Destruction under
the Lease, which will be determined in accordance with Article 12 of the
Lease.

    

    “Assignment of Lease” means
that certain Assignment of Leases and Rents,. dated as of the Closing Date,
given by Borrower to Lender to secure the Obligations.

    

    “Bankruptcy Claims” means the
power and authority to exercise or assert Borrower’s rights and claims to the
payment of damages arising from any rejection under the Bankruptcy Code by
Tenant of the Lease or any Other Lease;

    

    “Bankruptcy Code” means 11
U.S.C. §101 et seq. as the same may be amended from time to time.

    

    “Basic Rent” is defined in
paragraph 3(a) of the Lease.

    

    “Beneficial Owner” means the
owner of any membership interest in the beneficial or other economic interest in
Borrower.

    “Borrower” is as defined in
the first paragraph of the Loan Agreement.

    

    “Business Day” means any day
other than a Saturday, Sunday or a day on which commercial banks located in the
State of New York are required or authorized to be closed.

    

    “Casualty” is defined in
paragraph 12(a) of the Lease.

    

    “Certificate of Compliance and
Release” is as described in Section 5.02(b) of the Loan
Agreement.

    

    “Certificate Holders” means,
as of any particular day, the holders of the certificates under the Trust
Agreement.

    

    “Certificate Trustee” means
Wells Fargo Bank Northwest, National Association, and each successor trustee, as
trustee under the Trust Agreement.

    

    “Closing Date” means the date
of the Loan Agreement, as shown on the cover page of the Loan
Agreement.

    “Condemnation” means a
“Taking” as defined in paragraph 12(a) of the Lease.

     “Constituent Party” is as
defined in Section 6.01(d) of the Loan Agreement.

    

    “Control” (including the
correlative meanings of the terms “controlling”, “controlled by” and “under
common control with”), as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting
securities or by contract or otherwise.

    

    “Credit Rating” is defined in
Appendix I of
the Lease.

    

    “Credit Rating Downgrade” is
defined in Appendix
I of the Lease.

    

    “Current Indemnitor” is as
defined in Section 5.07 of the Loan Agreement. “Debt” is as defined in
Section 3.01 (a) of the Loan Agreement.

    

    “Default” means any event or
condition or occurrence or existence of which would, with the giving of notice
or lapse of time, or both, become an Event of Default.

    

    “Default Rate” means (a) a
rate of interest that is the greater of eight and 25/100 percent (8.25%) per
annum, or (b) three percent (3%) per annum over the then current prime rate of
interest publicly announced by Citibank, N.A. (or its successor) as its base
from time to time and if Citibank, N.A. (or its successor ceases to announce a
prime rate, than the current prime rate of interest published by the Wall Street
Journal or its successor from time to time, but in no event greater than the
maximum rate prohibited by applicable Legal Requirements.

    

    “Defeasance” is as defined in
Section 2.05(a) of the Loan Agreement.

    

    “Defeasance Deposit” means an
amount which Lender will determine (in sole reliance upon a verification report
delivered by a nationally recognized independent certified public accountant or
firm of nationally recognized certified public accountants) is sufficient to pay
the Scheduled Defeasance Payments, any costs and expenses (including the
reasonable fees and expenses of such accountant or firm of accountants) incurred
or to be incurred in the purchase of U.S. Obligations necessary to meet the
Scheduled Defeasance Payments and any revenue, documentary stamp or intangible
taxes or any other tax or charge due in connection with the transfer of the Note
or otherwise required to accomplish the agreements of Section 2.05 of the Loan
Agreement, which taxes Lender will cause to be paid to the appropriate taxing
authority on the Release Date;

    

    “Destruction” is as defined in
paragraph 12(a) of the Lease.

    

    “Discounted Value” means, with
respect to the Prepayment Amount of the Note, the amount obtained by discounting
all Remaining Scheduled Payments with respect to such Prepayment Amount from
their respective scheduled due dates to the Settlement Date with respect to such
Prepayment Amount, in accordance with accepted financial practice and at a
discount factor (applied on the same periodic basis as that on which interest on
the Note is payable) equal to the Reinvestment Yield with respect to such
Prepayment Amount.

    

    “Dollars” and “$” mean lawful currency of
the United States of America.

    

    “Environmental Laws” means and
includes but shall not be limited to the Resource Conservation and Recovery Act
(42 U.S.C. §6901 et
seq.), as amended by the Hazardous and Solid Waste Amendments of 1984,
the Comprehensive Environmental Response, Compensation and Liability Act (42
U.S.C. §9601 et
seq.), as amended by the Superfund Amendments and Reauthorization Act of
1986, the Hazardous Materials Transportation Act (49 U.S.C. §1801 et seq., the Toxic
Substances Control Act (15 U.S.C. §2601 et seq.), the Clean
Air Act (42 U.S.C. §7401 et seq.), the Clean Water
Act (33 U.S.C. §1251 et seq.) the Federal
Insecticide, Fungicide and Rodenticide Act (7 U.S.C. §136 et seq.), the
Occupational Safety and Health Act (29 U.S.C. §651 et seq.) and all
applicable federal, state and local environmental laws, including obligations
under the common law, ordinances, rules, regulations and publications, as any of
the foregoing may have been or may be from time to time amended, supplemented or
supplanted, and any other Legal Requirements, now or hereafter existing relating
to regulation or control of Hazardous Substances or environmental protection,
health and safety.

    

    “Equipment” means all
machinery, equipment, fixtures (including, all heating, air conditioning,
plumbing, lighting, communications and elevator fixtures) and other property of
every kind and nature, whether tangible or intangible, whatsoever owned by
Borrower, or in which Borrower has or shall have an interest, now or hereafter
located upon the Land, or appurtenant thereto, and usable in connection with the
present or future construction, operation and occupancy of the

    Land and
all building equipment, materials and supplies of any nature whatsoever owned by
Borrower, or in which Borrower has or shall have an interest, now or hereafter
located upon the Land, or appurtenant thereto, or usable in connection with the
present or future construction, operation, enjoyment and occupancy of the
Land.

    

    “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time, and the
rules and regulations promulgated thereunder from time to time in
effect.

    

    “Escrow Fund” means the “Tax
and Insurance Reserve Fund” as defined in paragraph 13(e) of the
Lease.

    

    “Events of Default” is as
defined in Section 9.01 of the Loan Agreement.

    

    “Excepted Rights and Excepted
Payments” means the following described properties, payments, amounts,
rights, interests and privileges:

    

    (i) all payments to Borrower by Tenant
pursuant to any indemnity under the Lease which by the terms thereof are payable
to Borrower or its successors, permitted assigns, employees, officers,
directors, shareholders, members, servants, agents and Affiliates
thereof;

    

    (ii) any insurance proceeds to the
extent payable under general public liability policies maintained by Tenant
pursuant to paragraph 13(a)(ii) of the Lease, which, by the terms of such
policies, are solely for the benefit of and payable directly to Borrower or its
successors, permitted assigns, employees, officers, directors, shareholders,
members, servants, agents and Affiliates thereof, in each such case for their
own respective accounts; and

    

    (iii) Borrower’s right, but not to the
exclusion of Lender, (A) to receive from Tenant certificates and other documents
and information that Tenant is required to give or furnish to Borrower pursuant
to the Lease, and (B) to inspect the premises demised under the Lease and all
records relating thereto, (C) to undertake repair and maintenance to the
Mortgaged Property, (D) to sue for damages or to enforce performance or
observance by Tenant under the Lease of the applicable terms, conditions and
agreements of the Lease as allowed by law, equity, or the Lease and (E) where
Lender’s approval or consent is not required by the terms of the Lease, Borrower
may (A) determine Tenant’s compliance with the provisions of the Lease, and (B)
provide any approval, consent or waiver under or pursuant to the Lease; provided, however, if the Lease
gives a concurrent right to Lender to determine compliance or to grant any
approval, consent or waiver, then Lender’s determination or Lender’s approval,
consent or waiver shall be final, regardless of Borrower’s determination,
approval, consent or waiver, and; provided, further, in the
instance of (A) and (B) Borrower may not make any determination or provide any
approval, consent or waiver or take any other action under or pursuant to the
Lease that might adversely affect (i) Borrower’s rights under the Lease, (ii)
the value of the Mortgage Property, or (iii) Lender’s rights under the Loan
Documents; provided, however, Borrower may
not (A) accelerate the payment of Basic Rent, or (B) give any notice, sue or
take any action relating to Tenant’s failure to pay any such payment under
clauses (i), (ii) or (iii) that (v) notifies Tenant a default exists under the
Lease without in each instance Lender’s prior approval which Lender will not
unreasonably withhold, condition or delay, or (w) might have the effect of (1)
terminating the Lease, (2) dispossessing the Tenant, (3) declaring the Lease
forfeited, or (4) terminating or reducing any of Tenant’s obligations under the
Lease, without in each instance Lender’s prior approval which Lender may grant
or withhold in its sole discretion.

    

    “Governmental Authority” means
any federal, state, county, municipal or other governmental or regulatory,
arbitrator, board, body, commission, court, instrumentality, or other
administrative, judicial, quasi-governmental or quasi judicial tribunal,
authority or agency of competent authority (or private Person in lieu
thereof).

     

    “Guaranty Agreement” means
that certain Indemnity and Guaranty Agreement dated as of the Closing Date from
Beneficial Owner to Lender (as the same may be replaced from time to time by an
Acceding Beneficial Owner).

     

    “Hazardous Substances” means
(i) those substances (whether solid, liquid or gas), included within the
definitions of or identified as “hazardous substances”, “hazardous materials”,
or “toxic substances” in or pursuant to, without limitation, the Comprehensive
Environmental Response Compensation and Liability Act of 1980 (42 U.S.C. §9601
et seq.)
(CERCLA), as amended by Superfund Amendments and Reauthorization Act of 1986
(Pub. L. 99-499, 100 Stat. 1613) (SARA), the Resource Conservation and Recovery
Act of 1976 (42 U.S.C., § 6901 et seq.) (RCRA), the
Occupational Safety and Health Act of 1970 (29 U.S.C. § 651 et seq.) (OSHA), and
the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq. and in the
regulations promulgated pursuant to said laws, all as amended; (ii) those
substances listed in the United States Department of Transportation Table (40
CFR 172.101 and amendments thereto) or by the Environmental Protection Agency
(or any successor agency) as hazardous substances (40 CFR Part 302 and
amendments thereto); (iii) any material, waste, substance, pollutant or
contamination which is or contains (A) petroleum, its derivatives, by-products
and other hydrocarbons, including crude oil or any fraction thereof, natural
gas, or synthetic gas usable for fuel or any mixture thereof, (B) asbestos
and/or asbestos-containing materials in any form that is or could become
friable, (C) polychlorinated biphenyls, (D) designated as “hazardous substance”
pursuant to Section 311 of the Clean Water Act, 33 U.S.C. § 1251 et seq., (33 U.S.C. §
1321) or listed pursuant to Section 307 of the Clean Water Act (33 U.S.C. §
1317); (E) flammable explosives; (F) radioactive materials; and (iv) such other
substances, materials, wastes, pollutants and contaminants which are or become
regulated as hazardous, toxic or “special wastes” under applicable local, state
or federal law, or the United States government, or which are classified as
hazardous, toxic or as “special wastes” under any Legal
Requirements.

    “Improvements” is defined in
Appendix I of
the Lease.

     

    “Indemnified Liabilities”
means all liabilities, losses, damages, demands, claims, obligations,
suits or other proceedings (including, causes of action, litigation and
defenses), settlement proceeds, fines, penalties, assessments, citations,
directives, judgments, fees, costs, disbursements or other expenses of any kind
or of any nature whatsoever (including, reasonable attorneys’, consultants’, and
experts’ fees and disbursements actually incurred in investigating, defending,
settling or prosecuting any demand, claim, obligation, suit or other similar
proceeding).

    

    “Indemnified Parties” means
Lender, each Certificate Holder and the Certificate Trustee, their respective
successors and assigns, the beneficial owners of any of the foregoing and the
trustees, beneficiaries, partners, shareholders, officers, directors, agents or
employees of Lender, each Certificate Holder and the Certificate Trustee, or any
such successor or assign or beneficial owner.

    

    “Indemnity Obligations” is as
defined in Section 5.07 of the Loan Agreement.

    

    “Indenture” is as defined in
Background recital C of the Loan Agreement.

    

    “Independent Manager” is as
defined in Section 6.01(q) of the Loan Agreement.

    

    “Insurance Premiums” are
defined in paragraph 13(e) of the Lease.

    

    “Insurance Requirements” are
defined in paragraph 13(a) of the Lease.

     

    “Knowledge” by Borrower with
respect to any matter means the present actual knowledge of such matter by an
Executive Officer of Borrower after reasonable investigation and inquiry.
Knowledge shall be presumed conclusively as to the content of any notice to
Borrower made in accordance with the Loan Documents.

    “Land” is as defined in the
Indenture.

     

    “Lease” means that certain
Lease Agreement dated as of the Closing Date between Borrower as Landlord and
Tenant as tenant, demising the Mortgaged Property, including, all deemed
amendments thereto as provided therein, extended terms, and extensions and
renewals of the term thereof.

     

    “Lease Default” means the
occurrence under the Lease of an Event of Default (as defined in paragraph 20 of
the Lease) other than an event of default under subparagraphs 20(a)(iii), (iv),
(v), (vi) or (vii) of the Lease.

     

    “Legal Requirements” means (i)
all present and future applicable laws, statutes, treaties, rules, orders,
ordinances, codes, regulations, requirements, Permits, and interpretations by,
and applicable judgments, decrees, injunctions, writs, orders and like action of
any Governmental Authority (including, without limitation, those pertaining to
the environment), whether or not such are within the present contemplation of
Borrower or Tenant, and (ii) any reciprocal easement agreement, development
agreement, deed restriction, or similar agreement, relating to the Mortgaged
Property, or the Improvements, or the facilities or equipment thereon or
therein, or the streets, sidewalks, vaults, vault spaces, curbs and gutters
adjoining the Mortgaged Property, or the appurtenances to the Mortgaged
Property, or the franchises and privileges connected therewith.

     

    “Letter of Credit” means a
clean, irrevocable, unconditional transferable letter of credit payable on sight
draft only, in form acceptable to Lender, in favor of Lender and entitling
Lender to draw thereon, issued by a domestic bank or the U.S. agency or branch
of a foreign bank having an office in New York, New York, at which presentation
and payment of the Letter of Credit may occur, having a long-term unsecured debt
rating at the time of issuance and at all times thereafter of “A” or better by
Standard & Poor’s, “A2” or better by Moody’s or an equivalent rating by any
other NRSRO and having capital, surplus and undivided profits aggregating at
least $250,000,000. Any Letter of Credit must expressly provide that it is
freely transferable to any successor or assign of Lender.

    “Lien” is defined in Appendix I of the
Lease.

    

    “Loan” is as defined in
Recital B of the Loan Agreement,

    

    “Loan Agreement” means that
certain Loan Agreement dated the Closing Date between Lender and Borrower
relating to the Mortgaged Property and pursuant to which the Loan evidenced by
the Note and secured by the Security Documents was made to
Borrower.

    

    “Loan Documents” means,
collectively, the Note, the Loan Agreement and the Security
Documents.

    

    “Lockout Period” means the
period ending twelve (12) full calendar months after the Closing
Date.

    

    “Maturity Date” is as defined
in the Note.

    

    “Minimum Credit Rating” is
defined in Appendix
I of the Lease.

    

    “Monthly Payment” means the
monthly payment of interest or principal and interest due under the
Note.

    “Moody’s” means Moody’s
Investors Services, Inc., and its successors in interest.

     “Mortgaged “Property” is as defined in the
Indenture.

    

    “Net Award” is defined in
Appendix I of
the Lease.

    

    “New Indemnitor” is as defined
in Section 5.07 of the Loan Agreement.

    

    “New Indemnity Agreement” is
as defined in Section 5.07 of the Loan Agreement.

    

    “Non-Consolidation Opinion”
means that certain opinion letter dated as of the Closing Date delivered
by Schlanger, Mills, Mayer & Silver, L.L.P. in connection with the
Loan,

    

    “Note” means that certain
Promissory Note in the amount of the Loan dated the date of the Loan Agreement
made by Borrower to Lender.

    

    “Note Register” is defined in
Section 2.07 of the Loan Agreement.

    

    “Notice” means any demand,
statement, request, consent, approval or other notice given under the Loan
Documents.

    

    “NRSRO” means a nationally
recognized statistical rating organization, which as of the Closing Date would
include Moody’s, Standard & Poor’s and Fitch, Inc.

    

    “Obligations” means
collectively Borrower’s obligations to pay the Debt and to perform the Other
Obligations.

    

    “Other Leases” means any
leases, licenses and subleases (including, all guarantees thereof) and other
agreements affecting the use, enjoyment or occupancy of the Land and
Improvements other than the Lease.

    

    “Other Obligations” is as
defined in Section 3.01(b) of the Loan Agreement.

    

    “Payment Date” means each date
shown on Schedule
A to the Note on which the Monthly Payment is due.

    

    “Permits” means all licenses,
authorizations, certificates (including certificates of occupancy), variances,
concessions, grants, registrations, consents, permits and other approvals issued
by a Governmental Authority now or hereafter pertaining to the ownership,
management, occupancy, use, operation, Alteration or Restoration of the
Mortgaged Property.

    

    “Permitted Exceptions” mean
the exceptions to title set forth in Schedule B of the Title Policy issued to
Lender.

    

    “Permitted Lease Termination Event”
means a Destruction and Borrower having accepted or rejected Tenant’s
Rejectable Offer in accordance with the terms of Section 10.02, with Lender’s
prior written consent.

    

    “Permitted Transfer” means,
collectively, a Permitted Transfer of Beneficial Interest or a Permitted
Transfer of Mortgaged Property.

    

    “Permitted Transfer of Beneficial
Interest” is as defined in Section 5.02(a) of the Loan
Agreement.

    

    “Permitted Transfer of Mortgaged
Property” is as defined in Section 5.03(a) of the Loan
Agreement.

    

    “Person” means any individual,
corporation, partnership, limited liability company, joint venture, association,
joint stock company, trust, trustee of a trust, unincorporated organization,
Governmental Authority, or other entity.

    

    “Policies” are defined in
paragraph 13(a) of the Lease.

    

    “Prepayment Amount” means the
outstanding principal balance of the Note that (1) is to be prepaid pursuant to
Section 10.02 of the Loan Agreement following a Permitted Lease Termination
Event, or (2) has become or is declared to be immediately due and payable
pursuant to Section 9.02 of the Loan Agreement, as the context
requires.

    

    “Prepayment Consideration”
means an amount equal to the positive difference, if any, between the
Discounted Value of the Remaining Scheduled Payments with respect to the
Prepayment Amount of the Note less such Prepayment Amount, provided that the
Prepayment Consideration may in no event be less than zero.

    

    “Protective Advances” means
any costs or expenses Lender and/or Servicer advance or incur in accordance with
the terms of the Loan Documents to maintain, manage, secure, remediate or
otherwise protect the Mortgaged Property or the priority of the Lien granted by
the Indenture and the other Security Documents, including, any costs or expenses
advanced or incurred (i) to appear in, defend, or bring any action or proceeding
necessary to collect the Debt or enforce the Loan Documents, including,
reasonable attorneys’ fees and disbursements incurred whether or not suit is
brought; (ii) to protect Lender’s interest in the Mortgaged Property; (iii) to
pay the salaries, fees and wages of a managing agent and such other employees as
Lender deems necessary or desirable to manage and secure the Mortgaged Property;
(iv) to pay the costs of all Alterations and all expenses incident to taking and
retaining possession of the Mortgaged Property; (v) to foreclose the Indenture;
(vi) subject to the terms of the Lease and the Loan Documents, to cause the
Mortgaged Property to comply with any Legal Requirements applicable to Borrower
or Tenant, or to the Mortgaged Property, or which may govern or regulate the
ownership, use or operation of the Mortgaged Property; (vii) to pay Taxes,
Impositions and/or Insurance Premiums; (viii) to reimburse, protect or defend
Lender from or against any of the matters described in Section 4.11 of the Loan
Agreement; or (ix) for any actions taken to prevent waste to the Mortgaged
Property.

    

    “Rating Agencies” means
Moody’s and Standard & Poor’s, or at Lender’s election, another
NRSRO.

    

    “Reinvestment Yield” means,
with respect to the Prepayment Amount of the Note, the yield to maturity implied
by: (i) calculating the yield for a hypothetical U.S. Treasury security having a
maturity equal to the Remaining Average Life of such Prepayment Amount as of
such Settlement Date by interpolating linearly between (1) the “on the run”
current U.S. Treasury security with the maturity closest to and greater than the
Remaining Average Life and (2) the “on the run” current U.S. Treasury security
with the maturity closest to and less than the Remaining Average Life, both as
reported by Bloomberg Financial Markets as of 10:00 A.M. (New York City time) on
the second Business Day preceding the Settlement Date with respect to such
Prepayment Amount, or (ii) if such yields are not reported as of such time or
the yields reported as of such time are not ascertainable (including by way of
interpolation), the Treasury Constant Maturity Series Yields reported, for the
latest day for which such yields have been so reported as of the second Business
Day preceding the Settlement Date with respect to such Prepayment Amount, in
Federal Reserve Statistical Release H.15 (519) (or any comparable successor
publication) for actively traded U.S. Treasury securities having a constant
maturity equal to the Remaining Average Life of such Prepayment Amount as of
such Settlement Date. Such implied yield will be determined, if necessary, by
(a) converting U.S. Treasury bill quotations to bond-equivalent yields in
accordance with accepted financial practice and (b) interpolating linearly
between (1) the on the run U.S. Treasury security with the maturity closest to
and greater than the Remaining Average Life and (2) the on the run U.S. Treasury
security with the maturity closest to and less than the Remaining Average
Life.

    

    “Rejectable Offer” means an
offer by Tenant to purchase the Mortgaged Property in accordance with the
applicable provisions of Article 12 of the Lease.

    

    “Release Date” means the
regularly scheduled Monthly Payment Date on which the Defeasance is to
occur.

    

    “Release of Hazardous Substances”
is defined in Appendix I to the
Lease.

    

    “Released Parties” means
Borrower, any partner or member of Borrower and any member or any officers,
shareholders, directors or partners thereof or of any Person directly or
indirectly owning any interest in Borrower.

    

    “Remaining Average Life”
means, with respect to any Prepayment Amount, the number of years
(calculated to the nearest one-twelfth year) obtained by dividing (i) such
Prepayment Amount into (ii) the sum of the products obtained by multiplying (a)
the principal component of each Remaining Scheduled Payment with respect to such
Prepayment Amount by (b) the number of years (calculated to the nearest
one-twelfth year) that will elapse between the Settlement Date with respect to
such Prepayment Amount and the scheduled due date of such Remaining Scheduled
Payment.

    

    “Remaining Scheduled Payments”
means, with respect to the Prepayment Amount of the Note, all payments of
such Prepayment Amount and interest thereon that would be due after the
Settlement Date with respect to such Prepayment Amount if no payment, purchase
or acceleration of such Prepayment Amount were made before its scheduled due
date, provided that if such Settlement Date is not a date on which interest
payments are due to be made under the terms of the Note, then the amount of the
next succeeding scheduled interest payment will be reduced by the amount of
interest accrued to such Settlement Date and required to be paid on such
Settlement Date pursuant hereto.

    

    “Rents” means all Basic Rent,
Additional Rent and all other amounts paid under the Lease, including, any
income, revenues, issues, profits, moneys, security deposits, and damages
payable or receivable under the Lease or pursuant to any of the provisions of
the Lease (including, all oil and gas or other mineral royalties and bonuses),
whether payable as rents or in connection with a termination of the Lease and
whether paid or accruing before or after the filing by or against Borrower of
any petition for relief under the Bankruptcy Code.

    

    “Restore” or “Restoration” is defined in
Appendix I to
the Lease.

    

     “Restoration Threshold Amount”
is defined in Appendix I to the
Lease.

    

    “RVI Policy” means the
Residual Value Insurance issued by R.V.I. American Insurance
Company.

    

    “Scheduled Defeasance Payments”
is as defined in Section 2.05 of the Loan Agreement.

    

    “Secondary Market Transaction”
is as defined in Section 12.12 of the Loan Agreement.

    

    “Security Agreement” is as
defined in Section 2.05 of the Loan Agreement.

    

    “Security Documents” means the
Indenture, the Assignment of Lease, the UCC Financing Statements, the Guaranty
Agreement, and any other agreement, instrument or document other than the Note
and the Loan Agreement now or hereafter executed or authorized by Borrower
and/or others and by or in favor of Lender, which wholly or partially relate to
or evidence, secure or guaranty all or any portion of the payment of the Debt or
otherwise is executed and/or delivered in connection with the Note.

    

    “Servicer” means the servicer
or servicers appointed from time to time by Lender, to administer the Loan or
otherwise perform certain functions in connection with the Loan.

    

    “Settlement Date” means for
the Prepayment Amount of the Note, (i) the date on which such Prepayment Amount
is paid pursuant to Section 10.02 of the Loan Agreement, (ii) the date on which
such Prepayment Amount has become or is declared to be immediately due and
payable pursuant to Section 9.04 of the Loan Agreement. “SNDA” means the
Subordination, Non-Disturbance and Attornment Agreement dated as of the Closing
Date by and among Lender, Borrower and Tenant relating to the Mortgaged
Property.

    

    “SPE Manager” is as defined in
Section 6.01(p) of the Loan Agreement.

    

    “Standard & Poor’s” means
Standard & Poor’s Rating Services, a division of The McGraw - Hill
Companies, Inc., and its successors in interest.

    

    “State” means the State or
Commonwealth in which the Mortgaged-Property
is located.

    

    “Successor Borrower” is as
defined in Section 2.05(b) of the Loan Agreement.

    

    “Taxes and Impositions” is
defined in paragraph 6(a) of the Lease. “Tenant” means Cooper Cameron
Corporation, a Delaware corporation.

    

    “Third Party Report” is as
defined in Section 11.12 of the Loan Agreement.

    

    “Title Company” means
Commonwealth Land Title Company.

    

    “Title Policy” means the
mortgagee policy of title insurance dated as of the Closing Date issued by the
Title Company to Lender covering the Mortgaged Property.

    

    “Transfer” is as defined in
Section 5.01 (a) of the Loan Agreement.

    

    “Transferee means the Person
to whom a Transferor Transfers the Mortgaged Property.

    

    “Transferor” means Borrower,
or a successor to Borrower, in its capacity as the transferor of the Mortgaged
Property.

    

    “Trust Agreement” means that
certain Certificate Pass-Through Trust Agreement dated as of the Closing Date
among Certificate Trustee, as trustee, and Legg Mason Mortgage Capital
Corporation, as initial Trustor.

    

    “U.S. Obligations” means
direct non-callable obligations of the United States of America (i.e. United
States Treasury Bills, Notes or Bonds).

    

    “UCC” means the Uniform
Commercial Code as adopted and enacted by the State or States where any of the
Mortgaged Property is located.

    

    “UCC Financing Statements”
means those certain UCC financing statements executed by Borrower and
intended to be filed in the appropriate recording offices to perfect the
security interests in the collateral described therein.

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