Document:

ex101.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Exhibit
10.1

     

    

     

    

     

    

     

    

     

    

     

    

     

    AMENDED
AND RESTATED

     

    MASTER
LOAN AGREEMENT

     

    

    among

    

    MACK-CALI REALTY, L.P., a Delaware limited
partnership, and AFFILIATES OF
MACK-CALI REALTY
CORPORATION, a
Maryland corporation, and
MACK-CALI REALTY, L.P.,
a Delaware limited partnership, as listed on Exhibit A
hereto, collectively, as Borrowers

     

    and

     

    MACK-CALI REALTY
CORPORATION, a
Maryland corporation, and
MACK-CALI REALTY, L.P.,
a Delaware limited partnership, as Guarantors

     

    and

     

    THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA, and VPCM,
LLC, as Lender

     

    Dated as
of January 15, 2010

     

    

     

      
        

      

    

    

     

    
      
        

      

     

    

     

    

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    AMENDED AND RESTATED MASTER
LOAN AGREEMENT

     

    

    THIS AMENDED AND RESTATED MASTER LOAN
AGREEMENT is made as of January 15, 2010, by and among MACK-CALI REALTY, L.P., a Delaware limited
partnership (“MCRLP”), and AFFILIATES OF MACK-CALI REALTY
CORPORATION, a
Maryland corporation, and
MACK-CALI REALTY, L.P.,
a Delaware limited partnership, as listed on Exhibit A
hereto (individually, a “Borrower” and collectively, “Borrowers”), MACK-CALI REALTY
CORPORATION, a
Maryland corporation (“MCRC”), and MACK-CALI REALTY, L.P., a Delaware limited
partnership (individually and collectively, “Guarantor”), and THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA, a New Jersey corporation (“Prudential”), and VPCM, LLC, a Virginia limited liability
company (“VPCM”) (collectively, “Lender”).

    

    RECITALS:

    

    WHEREAS, Prudential, and
Guarantor, Borrowers and affiliates of Borrowers entered into that certain
Amended and Restated Master Loan Agreement dated as of November 12, 2004
(the “Existing Loan Agreement”) relating to certain cross-collateralized and
cross-defaulted loans in the aggregate original principal amount of
$150,000,000.00 (the “Existing 2004 Loans”); and

    

    WHEREAS, as of the date
hereof, Prudential has assigned to VPCM a one half interest in and to the
Existing 2004 Loans; and

    

    WHEREAS, by that certain First
Mortgage Loan Application Nos. 706 108 235 - 706 108 241, dated
January 13, 2010 (the “Application”), Borrowers and Guarantor collectively
have applied for the extension of those certain loans under the Existing Loan
Agreement consisting of seven (7) individual loans (collectively, the “Loan”) in
the aggregate loan amount of $150,000,000.00 (the “Aggregate Loan Amount”);
and

    

    WHEREAS, Lender, by that
certain Loan Commitment Letter dated January _, 2010 (the “Commitment”),
has committed to provide the extension of such financing in accordance with the
Application; and

    

    WHEREAS, the Loan is, pursuant
to the terms of the Application, divided into seven (7) individual loans
comprised of the Existing 2004 Loans as amended hereby (each, sometimes herein
referred to as an “Individual Loan and collectively as the “Individual Loans”),
to be made by Lender each in the amounts set forth on Exhibit B
attached hereto and made a part hereof; and

    

    WHEREAS, as set forth on Exhibit B
attached hereto and made a part hereof, the existing loan amounts of the
Existing 2004 Loans are reallocated among the cross-defaulted and
cross-collateralized Existing 2004 Loans, with a reallocation of loan amounts
among the new Individual Loans representing additional advances to certain
Borrowers and corresponding reductions of loan amounts to other Borrowers,
resulting in the new loan amounts for the Individual Loans as set forth on Exhibit B
attached hereto; and

     

     

    
      
         

      

      
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    WHEREAS, notwithstanding the
division of the Loan into seven (7) Individual Loans, certain terms, conditions
and provisions of the Application and with respect to the Individual Loans
relate to all of the Individual Loans in the aggregate, and the relationship of
all of the Individual Loans to each other, including, but not limited to,
provisions relating to cross-default between the Loans, cross-collateral issues
relating to certain of the Loans, release provisions (including restrictions
thereon and the requirement of repayment of Loan amounts outstanding in excess
of Individual Loan amounts in the event release of an Individual Property is
permitted), guaranty provisions and loan administration provisions (such terms
are herein referred to as the “Master Loan Terms”); and

    

    WHEREAS, all of the Borrowers
are Affiliates of each other and Guarantors are the sole beneficial owners of
each Borrower which is not also a Guarantor; and

    

    WHEREAS, the Loan is to be
secured by the Properties (as hereinafter defined) listed on Exhibit A
attached hereto; and

    

    WHEREAS, notwithstanding that
the Loan is divided into seven (7) Individual Loans, Borrowers and Guarantor
acknowledge that Lender would not make any of the Individual Loans, or less than
all of the Individual Loans, pursuant to the provisions in the Application
relating to the Individual Loans, without making all seven (7) Individual Loans
in compliance with the terms of the Application and except in accordance with
all the provisions set forth in this Agreement; and

    

    WHEREAS, Borrowers acknowledge
that the provisions set forth in this Agreement and otherwise set forth in the
Loan Documents relating to cross-default, cross-collateralization and the other
Master Loan Terms have resulted in more favorable economic terms for each
Individual Loan to each individual Borrower, and that each Borrower would be
unable to receive financing in the amount, or at the interest rate provided in
the Notes, or otherwise under more favorable terms, than those set forth herein
and, therefore, there exists direct and valuable consideration for each
Borrower’s consent and agreement to the terms and provisions hereof;
and

    

    WHEREAS, Borrowers, Guarantor
and Lender hereby wish to set forth certain agreements with respect to the Loan
and the relationship between the Individual Loans, and to amend and restate the
Existing Loan Agreement in its entirety.

    

    AGREEMENTS

    

    NOW, THEREFORE, Borrowers and
Guarantor, in consideration of the matters described in the foregoing Recitals,
which Recitals are incorporated herein and made a part hereof, and for other
good and valuable consideration, hereby agree as follows:

     

     

     

    
      
         

      

      
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    Section
1.                      DEFINITIONS AND RULES OF
INTERPRETATION.

    

    The following terms shall have the
meanings set forth in this Section 1 or elsewhere in the provisions of this
Agreement referred to below:

    

    “Affiliate” means, with
respect to any Person (as hereinafter defined), (1) any other Person (as
hereinafter defined) directly or indirectly controlling, controlled by or under
common control with another Person, (2) any officer, director, partner or
trustee of such Person, or in any joint venture or other business association
with such Person, and (3) if such other Person is an officer, director,
partner, trustee, joint venturer or business associate, any other Person for
which such Person acts in any such capacity or who directs or controls the
actions of such Person in such capacity.  The term “control” as used
in this definition shall include, as to any Person, the ownership of ten percent
(10%) or more of the legal or beneficial interest in such Person or the power to
direct the management and policies of such Person, whether through the ownership
of voting securities, by contract, or otherwise.

    

    “Agreement” means this Amended
and Restated Master Loan Agreement, including the Exhibits hereto.

    

    “Application” is defined in
the recitals hereto.

    

    “Assignment of Rents” or “Assignments of Rents” means
the Amended and Restated Assignments of Rents and Leases of even date herewith
from Borrowers to Lender pursuant to which Borrowers have assigned the Leases
and Rents as described therein.

    

    “Borrowers” means the
Borrowers listed on Exhibit A
attached hereto and made a part hereof (and “Borrower” means any one of
the Borrowers listed thereon).

    

    “Business Day” means any day
which is not a Saturday, Sunday, or federal legal holiday, and on which banking
institutions in Newark, New Jersey are open for the transaction of
business.

    

    “Cash Management Agreement”
means the Cash Management Agreements of even date herewith between Borrowers and
Lender.

    

    “Clearing Bank Deposit Account
Control Agreement” means the Clearing Bank Deposit Account Control
Agreements of even date herewith between Borrowers and Lender and Bank of
America, N.A.

    

    “Collateral” means all of the
property, rights and interests of Borrower which are or are intended to be
subject to the security interests, liens and mortgages created by the Security
Documents.

    

    “Commitment” is defined in the
recitals hereto.

     

     

     

    
      
         

      

      
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    “Covenant Breach” is defined
in the Section 3.3 hereof.

    

    “Credit Agreement” is defined
in Section 7.

    

    “Cross Collateral Guaranties”
means those certain Amended and Restated Irrevocable Cross Collateral Guaranties
of Payment of even date herewith executed by each Borrower.

    

    “Debt Service Coverage” means
the ratio, as reasonably determined by Lender in its sole discretion, calculated
by dividing (i) NOI by (ii) TADS.

    

    “Dollars or $” means dollars
in lawful currency of the United States of America.

    

    “Event of Default” is defined
in Section 9.

    

    “First Mortgage” or “First Mortgages” means the
first priority mortgages from Borrowers to Lender pursuant to which Borrowers
have conveyed the Properties as security for certain of the Obligations, namely,
for each Individual Property, Borrower has conveyed to Lender a first priority
Amended, Restated and Consolidated Mortgage and Security Agreement which secures
the Note applicable to such Individual Property.

    

    “Guarantor” is defined in the
preamble hereto.

    

    “Guaranties” means the
Recourse Carveout Guaranty and the Cross Collateral Guaranties.

    

    “Individual Loans” is defined
in the recitals hereto.

    

    “Individual Property” means
any one of the office projects and all Collateral associated therewith as
described on Exhibit A.

    

    “Limited Guaranties” means each
of the Supplemental Guaranty Agreements executed and delivered by the
individuals and entities identified to Lender as of the date hereof, and from
time to time thereafter, by Mack-Cali Realty, L.P. (collectively the “Limited
Guarantors”), none of whom or which at any time shall be an owner or ground
lessee of any of the Properties (or of interests in any Borrower, except by
virtue of ownership of units of Mack-Cali Realty, L.P.), which Limited
Guarantors shall severally guarantee such portions of the Individual Loans as is
set forth in each Limited Guaranty entered into as of the Closing Date and from
time to time thereafter by each Limited Guarantor in favor of the Lender as any
of such loans or the Loan shall be amended, supplemented, modified or restated
(collectively, the “Limited Guaranties”).  Notwithstanding anything
herein to the contrary, the Limited Guaranties may be amended, supplemented,
modified, restated or terminated and the identity of the Limited Guarantors may
be changed by Mack-Cali Realty, L.P. upon written notice to Lender.

    

    “Leases” means, collectively,
all present and future leases, licenses, and other agreements for the occupancy
of any spaces or areas within the buildings, structures and improvements located
in or on the Properties (or, as applicable, an Individual Property) which may be
in effect from time to time, and all amendments, modifications, extensions,
renewals, and assignments of any of the foregoing.

     

     

    
      
         

      

      
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    “Loan” means the aggregate
$150,000,000.00 loan to Borrower made by Lender hereunder in the form of the
seven (7) Individual Loans to the applicable Borrowers and evidenced by the Loan
Documents.

    

    “Loan to Value Ratio” means
the ratio, as determined by Lender in its sole discretion, of (A) the
aggregate principal balance of all encumbrances against the Properties (or, as
applicable, an Individual Property) to (B) the fair market value of the
Properties (or, as applicable, such Individual Property).

    

    “Loan Documents” means this
Agreement, the Notes, the Security Documents, the Guaranties, the Limited
Guaranties and all other documents, instruments or agreements executed or
delivered by or on behalf of Borrower or the Guarantors in connection with the
Loan.

    

    “Master Loan Terms” is defined
in the recitals hereto.

    

    “Maturity Date” means
January 15, 2017.

    

    “Mortgage” or “Mortgages” means the First
Mortgages and the Second Mortgages.

    

    “New Cingular Wireless” means
New Cingular Wireless PCS, LLC, the sole tenant of the Individual Property known
as Mack-Cali Centre VII and the tenant of 52% of the space in Mack-Cali
Centre III.

    

    “New Cingular Wireless Full Release
Rental” means a minimum rental rate of not less than $10.00 per square
foot on an annual basis on a Triple Net Rent Basis.

    

    “New Cingular Wireless Half Release
Rental” means a minimum rental rate of not less than $8.00 per square
foot on an annual basis on a Triple Net Rent Basis, but less than the New
Cingular Wireless Full Release Rental.

    

    “New Cingular Wireless Lease”
means the lease or leases to New Cingular Wireless of the New Cingular Wireless
Space in Mack-Cali Centre VII and Mack-Cali Centre III.

    

    “New Cingular Wireless
Renewal” means that certain renewal option (that is effective as of
January 1, 2014) in accordance with the provisions of the New Cingular
Wireless Lease with a minimum five year extended term at the rental rates
specified in the renewal option of the New Cingular Wireless Lease.

    

    “New Cingular Wireless Renewal
Documents” means (a) a certification from the applicable Borrower to
Lender, certifying that New Cingular Wireless has exercised its renewal option
in accordance with the provisions of the New Cingular Wireless Lease and that
the New Cingular Wireless Lease as so renewed is in full force and effect, along
with (b) a copy of the renewal notice fully executed by New Cingular
Wireless and (c) an estoppel certificate from New Cingular Wireless in the
form required by Lender in connection with closing of the Loan, but subject to
requirements of the New Cingular Wireless Lease, which estoppel certificate may
not disclose, and there may not exist any as of the date of, any uncured
defaults on the part of Borrower or New Cingular Wireless with respect to the
New Cingular Wireless Lease; all in form and substance reasonably acceptable to
Lender.

     

     

    
      
         

      

      
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    “New Cingular Wireless Replacement
Lease” is defined in Section 3.4(d).

    

    “New Cingular Wireless Replacement
Lease Requirements” is defined in Section 3.4(d).

    

    “New Cingular Wireless Space”
means the leasable area in the Individual Property known as Mack-Cali
Centre VII and 52% of the space in Mack-Cali Centre III.

    

    “NOI” means the gross annual
income realized from operations of the Properties (or, as applicable, an
Individual Property) for both the preceding and subsequent twelve (12) month
period after subtracting all necessary and ordinary operating expenses (both
fixed and variable) for both the preceding and subsequent twelve (12) month
period and applied to the applicable NOI covenants for each period (assuming for
expense purposes only that the Properties or such Individual Property is 95%
leased and occupied if actual leasing is less than 95%), including, without
limitation, utilities, administrative, cleaning, landscaping, security, repairs,
and maintenance, ground rent payments, management fee of no more than 4.00% of
gross income, and a reserve for replacement allowance of no less than
$0.20 psf, real estate and other taxes, assessments, insurance and ground
lease payments, but excluding deduction for federal, state and other income
taxes, debt service expense, depreciation or amortization of capital
expenditures, and other similar non-cash items.  Gross income shall
not be anticipated for any greater time period than that projected for leases in
place and ordinary operating expenses shall not be
prepaid.  Documentation of NOI and expenses shall be certified by an
officer of Borrower with detail satisfactory to Lender and shall be subject to
the approval of Lender.

    

    “Notes” means the Amended,
Restated and Consolidated Promissory Notes to be executed by applicable
Borrowers in favor of Lender in the amounts set forth on Exhibit B.

    

    “Obligations” means all
indebtedness, obligations and liabilities of Borrowers to Lender, individually
or collectively, under this Agreement or any of the other Loan Documents or in
respect of the Loan or the Notes, or other instruments at any time evidencing
any of the foregoing, together with all renewals, extensions and modifications
of the foregoing, whether existing on the date of this Agreement or arising or
incurred hereafter, direct or indirect, joint or several, absolute or
contingent, matured or unmatured, liquidated or unliquidated, secured or
unsecured, arising by contract, operation of law or otherwise.

    

    “Old Security” is defined in
Section 6.

     

     

    
      
         

      

      
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    “Parent” is defined in
Section 6(b).

    

    “Partial Recourse Guaranty”
means that certain Partial Recourse Guaranty (Prentice Hall Space and New
Cingular Wireless Space) from MCRLP of even date herewith.

    

    “Person” or “person” means any individual,
general partnership, limited partnership, corporation, trust, limited liability
company, joint venture, unincorporated association, political subdivision or
governmental or quasi-governmental agency, or any other entity recognized as
legally distinct for any purpose.

    

    “Prentice Hall” means Prentice
Hall, Inc., the sole tenant of the Individual Property known as Mack-Cali Saddle
River.

    

    “Prentice Hall Full Release
Rental” means a minimum rental rate of not less than $12.00 per square
foot on an annual basis on a Triple Net Rent Basis.

    

    “Prentice Hall Half Release
Rental” means a minimum rental rate of not less than $9.00 per square
foot on an annual basis on a Triple Net Rent Basis, but less than the Prentice
Hall Full Release Rental.

    

    “Prentice Hall Lease” means
the lease to Prentice Hall of the Prentice Hall Space.

    

    “Prentice Hall Renewal” means
that certain renewal option (that is effective as of January 1, 2015) in
accordance with the provisions of the Prentice Hall Lease with a minimum five
year extended term at the rental rates specified in the renewal option of the
Prentice Hall Lease.

    

    “Prentice Hall Renewal
Documents” means (a) a certification from the applicable Borrower to
Lender, certifying that Prentice Hall has exercised its renewal option in
accordance with the provisions of the Prentice Hall Lease and that the Prentice
Hall Lease as so renewed is in full force and effect, along with (b) a copy
of the renewal notice fully executed by Prentice Hall and (c) an estoppel
certificate from Prentice Hall in the form required by Lender in connection with
closing of the Loan, but subject to requirements of the Prentice Hall Lease,
which estoppel certificate may not disclose, and there may not exist any as of
the date of, any uncured defaults on the part of Borrower or Prentice Hall with
respect to the Prentice Hall Lease; all in form and substance reasonably
acceptable to Lender.

    

    “Prentice Hall Replacement
Lease” is defined in Section 3.4(c).

    

    “Prentice Hall Replacement Lease
Requirements” is defined in Section 3.4(c).

    

    “Prentice Hall Space” means
the leasable area in the Individual Property known as Mack-Cali Saddle
River.

    

    “Prepayment Premium” means the
Prepayment Premium as defined in each Note.

     

     

    
      
         

      

      
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    “Properties” means,
collectively, all of the Individual Properties (the office projects and all
Collateral associated therewith as described on Exhibit A).

    

    “Real Estate Security” means
“Properties” or “Individual Property”, as the context may require.

    

    
           “Recourse Carveout Guaranty”
means that certain Amended and Restated Irrevocable Guaranty of Payment and
Performance (Recourse Carveout Items) executed by Guarantor with respect to all
of the Loans.

    

    “Release” and “Releases” a release or
releases of Properties from the applicable Mortgage or Mortgages in the manner
and upon compliance with the requirements, terms and conditions set forth in
Section 5.

    

    “Release Property” is defined
in Section 5.

    

    “Release Price” is defined in
Section 5.

    

    “Rent Roll” means a report
prepared by Borrower which lists all leases affecting the Premises which are in
full force and effect, and all other matters described on the rent roll attached
hereto as Exhibit C.

    

    “Second Mortgage” or “Second Mortgages” means the
second priority mortgages from Borrowers to Lender pursuant to which Borrowers
have conveyed the Properties as security for certain of the Obligations, namely,
for each Individual Property, Borrower has conveyed to Lender a second priority
Amended, Restated and Consolidated Second Priority Mortgage and Security
Agreement (Subordinate Mortgage to Secure Cross Collateral Guaranty) which
secures the Cross-Collateral Guaranty and the notes referenced therein and
guaranteed thereby (exclusive of the Note applicable to such Individual
Property).

    

    “Security Documents” means the
Mortgages, the Assignments of Rents, and any other documents securing the Loans,
including, without limitation, UCC-1 financing statements executed and delivered
in connection therewith.

    

    “State” means a state of the
United States of America.

    

    “Substitute Collateral” is
defined in Section 6.

    

    “Substitute Collateral Owner”
is defined in Section 6(b).

    

    “Substitution” a substitution
or substitutions of collateral in the manner and upon compliance with the
requirements, terms and conditions set forth in Section 5.

     

     

    
      
         

      

      
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    “TADS” means the aggregate
debt service payments for the given twelve (12) month period on the Loan in
which the calculation of NOI is being made.

    

    “Tenants” means, collectively,
the persons (other than Borrower or its predecessors in interest) who are
parties to any one or more Leases.

    

    “Tied Properties” is defined
in Section 5(i) below (Individual Properties known as Mack-Cali
Centre VII, Mack-Cali Centre III and Mack-Cali
Centre II).

    

    “Trigger Events” shall include
any of the following: (a) a default under the Loan Documents, or
(b) if Borrower does not deliver to Lender or does not maintain and renew
the letter of credit (or cash deposit) as required by the provisions of
Section 3.

    

    “Triple Net Rent Basis” shall
mean lease rental payments whereby a tenant makes both monthly base rental
payments to the landlord and the tenant is responsible, in addition, to pay for
all taxes, insurance, utilities, operating and maintenance costs.  If,
for the purposes of the Loan, the rental under a lease is on another basis (such
as a gross rental basis whereby the landlord pays such costs), then the required
annual rental threshold for such lease must be “grossed up” to achieve the
necessary annual rental threshold on a Triple Net Rent Basis, after payment of
all expenses as aforesaid.  The parties agree to cooperate and act
reasonably in calculating any gross up required if the renewal is on a gross
basis: for example, for a lease that requires $12 per square foot on a Triple
Net Rent Basis, with monthly payments, and with the tenant to pay for all taxes,
insurance, utilities, operating and maintenance costs, if those “taxes,
insurance, utilities, operating and maintenance costs” equal $2 psf annually,
then the “gross rent” would need to be $14, so that the landlord could pay the
$2 in expenses, and net the $12 in rent on a Triple Net Rent
Basis.  For determination of the rental amount per square foot on an
annual basis, a lease shall be analyzed and averaged based on the total base
rental payments due over the currently effective term of the applicable lease
(not including unexercised extensions or renewals, or any portion of a rental
term after a termination option) less concessions (free rent and any other
discount, concession, payment, gift, allowance, payment or contribution), in
order to reflect the average effective rent paid and received over the term of
the lease (the entire term of occupancy, including free rent periods; initial
construction periods would not be included in the calculation of the term of
occupancy of a lease for calculation of the term of the lease or the averaging
of the rentals over such term).  For example, if a 25,000 square foot
lease with a five year term provides for rent as follows:  during year
one of $11.75 per square foot (with two month’s free rent), during year two of
$12.00 per square foot (with no free rent), during year three of $12.25 per
square foot (with no free rent), during year four of $12.50 per square foot
(with no free rent), and during year five of $12.75 per square foot (with one
month’s free rent), the total rent paid of $1,455,729.17 divided by 5 years
equals $291,145.83 or $11.65 per square foot.

    

    
      	
              Section
      2.

            	
              THE
      LOANS.

            

    

    

    Section
2.1.                      Notes.  The Loan shall be
evidenced by Notes, each dated as of the date hereof, payable to the order of
Lender, as set out on Exhibit B
attached hereto.

     

     

     

    
      
         

      

      
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    Section
2.2.                      Interest
on Loan.  The Loan shall
bear interest and be payable as set forth in the Notes.

    

    Section
2.3.                      Parties
Liable for Repayment.  Each Borrower
shall be liable for repayment of each Note executed by such Borrower in
accordance with the terms of each such Note and subject to all of the conditions
and limitations therein set forth.  In addition, Guarantor shall be
liable for repayment of the Loan and the Notes as and to the extent set forth in
the Recourse Carveout Guaranty, subject to all of the conditions and limitations
therein set forth.

    

    Section
2.4.                      Cross
Collateral Provisions.  Each Borrower and
Guarantor shall also be liable for repayment of each other Note executed by each
other Borrower in accordance with the terms of each Cross Collateral Guaranty
executed by each Borrower, subject to all of the conditions and limitations
therein set forth.  Each First Mortgage secures each Note executed by
the Borrower executing such Mortgage, and, in addition, to evidence the
“cross-collateralization” of each Mortgage and each Individual Loan, each Second
Mortgage executed by a Borrower also secures the Cross Collateral Guaranty
executed by such Borrower.

    

    Section
2.5.                      Cross
Default.  All of the
Mortgages and other Loan Documents shall be and are hereby cross-defaulted
between each other and between each Individual Loan, so that an Event of Default
under any one Individual Loan shall constitute an Event of Default under all
Individual Loans.

    

    Section
2.6.                      Post
Closing Undertakings.
Guarantor and each of the applicable Borrowers shall commence and
complete the Post Closing Undertakings listed on Exhibit D
attached hereto and made a part hereof, such undertakings to be completed on or
before such date as may be listed thereon.

    

    Section
2.7.                      Recourse
Provisions.
Borrowers’ and Guarantor’s liability under the Loan and the Loan
Documents shall be limited as set forth in Paragraph 8 and Paragraph 9
of the Notes (and the liability under the Cross Collateral Guaranties shall be
limited as therein set forth or incorporated by reference), all of which terms
and provisions of such documents are incorporated herein by this
reference.  Notwithstanding the foregoing, Borrower and MCRLP shall
each be liable for the “Recourse Guaranteed Amount”, if any, as such term is
defined in the Partial Recourse Guaranty.  Borrower and MCRLP
acknowledge and agree that the Partial Recourse Guaranty and the recourse
liability for the Recourse Guaranteed Amount, and each of the terms set forth
above, have been reviewed and approved as acceptable to Borrower and MCRLP with
respect to the risk that either Prentice Hall fails to exercise the Prentice
Hall Renewal or New Cingular Wireless fails to exercise the New Cingular
Wireless Renewal, and that the terms of the Partial Recourse Guaranty are not,
and are not to be construed in any manner as, any penalty or punishment, but as
fair and reasonable terms to address the risk of such occurrences (which risks
are difficult to ascertain), and as the valid and binding contractual agreement
of Borrower and MCRLP with Lender regarding the recourse liability of Borrower
and MCRLP in the event of such occurrence, in consideration of which the
extension of the Loan on the terms set forth herein is based.

     

     

    
      
         

      

      
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    Section
2.8.                      Co-Lending.  Lender
collectively hereby advises Borrower that they have appointed Prudential
Mortgage Capital Company (“PMCC”) as their agent (the single agent for each of
Prudential and VPCM) for administration and servicing of this Loan as of the
date hereof, with Prudential Asset Resources, Inc. (“PAR”) acting as the
subservicer for PMCC (and, accordingly, the single sub-servicer for each of
Prudential and VPCM), subject to the rights of the Lender to change the
servicing of the Loan.  In any event, Lender shall appoint one single
servicer (or shall designate one of the entities comprising Lender to act as
servicer) for all holders of the Loan (but without limiting the right to require
that all servicing deliveries be sent to all Lender parties for review
simultaneously), and, as set forth above, such servicer may be a sub-servicer of
the agent for the Lenders (such party is herein referred to as the “Single
Servicer”).  Subject to the right to replace the Single Servicer,
Borrower shall be entitled to rely on consents, approvals, modifications and
agreements (“Approvals”) from the Single Servicer as if such Approvals have been
issued by Lender, and such Approvals from the Single Servicer shall be deemed to
be made by and binding upon Lender.

    

    Section
2.9.                      Confidentiality
(Loan Sales).  With respect to
Lender’s rights to sell, transfer or assign the Loan and Loan Documents or an
interest therein, Lender agrees with Borrower that, so long as no Event of
Default (or event which with the passage of time or the giving of notice or both
would be an Event of Default) has occurred and is continuing, before disclosing
any documents and information relating to the Loan to any proposed purchaser,
transferee or assignee, Lender shall first impose upon, or secure from, such
proposed purchasers, transferees or assignees, an agreement of confidentiality
with respect to any such disclosed documents and information not already
publicly available, such obligation to survive not less than a year from
disclosure.

    

    Section
2.10.                      Lender
Transferees.  The following
capitalized terms used in this Section 2.9 shall have the following
definitions:

    

    “Controlled
Affiliate” with respect to any specified Person, any other Person
controlling, controlled by or under common control with such Person, where
“control” means (a) the ownership, directly or indirectly, in the aggregate
of more than fifty percent (50%) of the beneficial ownership interests of such
Person, and (b) the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of such Person,
whether through the ability to exercise voting power, by contract or
otherwise.  Notwithstanding the foregoing, Prudential Financial, Inc.
or any Affiliate thereof, shall be deemed to be a Controlled Affiliate of
Prudential.

    

    “Eligibility Requirements”
means, with respect to any Person, that such Person (a) has in its current
fiscal year an asset base of at least $300,000,000.00 (in name or under
management) and (except with respect to a pension advisory firm or similar
fiduciary) a net worth of at least $30,000,000.00, and (b) has had in each
of its three immediately preceding fiscal years an asset base of at least
$300,000,000.00 (in name or under management) and (except with respect to a
pension advisory firm or similar fiduciary) a net worth of at least
$30,000,000.00 (asset base and net worth in all cases to be determined in
accordance with generally accepted accounting principles, consistently
applied).

     

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    
 

    “Permitted Fund Manager” shall
mean any Person that on the date of determination is (i) (A) a
Qualified Institutional Lender or (B) any other nationally-recognized
manager of investment funds investing in debt or equity interests relating to
commercial real estate, (ii) investing through a fund with committed
capital of at least $250,000,000 and (iii) not subject to a proceeding
relating to the bankruptcy, insolvency, reorganization or relief of
debtors.

    

    “Qualified Institutional
Lender” shall mean Prudential and VPCM and the following:

    

    (a)           a
Controlled Affiliate of Prudential or VPCM, or

    

    (b)           one
or more of the following:

    

    
      	
               
      

            	
              (i)

            	
              an
      insurance company, bank, savings and loan association, investment bank,
      trust company, commercial credit corporation, pension plan, pension fund,
      mutual fund, real estate investment trust, governmental entity or plan, or
      “Qualified Institutional Buyer” as defined in Rule 144(A) of the United
      States Securities and Exchange Commission, provided that any such Person
      referred to in this clause (i)
      satisfies the Eligibility Requirements;
or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              an
      investment fund, limited liability company, limited partnership or general
      partnership in which a Permitted Fund Manager acts as the general partner,
      managing member, or the fund manager responsible for the day to day
      management and operation of such investment vehicle and provided that at
      least 75% of the equity interests in such investment vehicle are owned,
      directly or indirectly, by one or more entities that are otherwise
      Qualified Institutional Lenders; or

            

    

    

    
      	
               
      

            	
              (iii)

            	
              any
      Qualified Institutional Lender that is acting in an agency capacity for a
      syndicate of no more than three lenders, provided 100% of the committed
      loan amounts or outstanding loan balance are owned by lenders in the
      syndicate that are Qualified Institutional Lenders;
  or

            

    

    

    
      	
               
      

            	
              (iv)

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

            

    

    

    (c)           any
Controlled Affiliate of any of the entities described in clause (b)
above.

    

    With
respect to Lender’s rights to sell, transfer or assign the Loan and Loan
Documents, Lender agrees with Borrower that, so long as no Event of Default (or
event which with the passage of time or the giving of notice or both would be an
Event of Default) has occurred and is continuing, any purchaser from, or
transferee or assignee of, Lender shall be a Qualified Institutional
Lender.  In addition, any Lender may pledge (a “Pledge”) its rights
to the Loan and Loan Documents to any entity which has extended a credit
facility to such Lender and that is a Qualified Institutional Lender (any such
entity, a “Note
Pledgee”), and Note Pledgee shall be permitted to exercise fully its
rights and remedies against the pledging Lender (and accept an assignment in
lieu of foreclosure as to such collateral), in accordance with applicable law
and this Agreement.  Nothing set forth herein shall alter or impair
the existing rights of Lender to grant or issue Securities (as defined in the
Mortgage).

     

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

    
 

    Section
3.                      FINANCIAL
COVENANTS AND LETTER OF CREDIT.

    

    Section
3.1.                      Financial
Covenant Definitions.  All capitalized
terms used in this Section 3 shall have the following definitions, except
as otherwise expressly provided for or unless the context otherwise
requires:

    

    “Acquired Indebtedness” means
Indebtedness of a Person (i) existing at the time such Person becomes a
Subsidiary or (ii) assumed in connection with the acquisition of assets
from such Person, in each case, other than Indebtedness incurred in connection
with, or in contemplation of, such Person becoming a Subsidiary or such
acquisition.  Acquired Indebtedness shall be deemed to be incurred on
the date of the related acquisition of assets from any Person or the date the
acquired Person becomes a Subsidiary.

    

    “Annual Service Charge” for
any period means the aggregate interest expense for such period in respect of,
and the amortization during such period of any original issue discount of,
Indebtedness of the Guarantor and its Subsidiaries.

    

               “Commission” means the
Securities and Exchange Commission, as from time to time constituted, created
under the Securities Exchange Act of 1934, or, if at any time after execution of
this instrument such commission is not existing and performing the duties now
assigned to it under the Trust Indenture Act, then the body performing such
duties on such date.

    

    “Consolidated Income Available for
Debt Service” for any period means Earnings from Operations of the
Guarantor and its Subsidiaries plus amounts which have been deducted, and minus
amounts which have been added, for the following (without duplication):
(i) interest on Indebtedness of the Guarantor and its Subsidiaries,
(ii) provision for taxes of the Guarantor and its Subsidiaries based on
income, (iii) amortization of debt discount and deferred financing costs,
(iv) provisions for gains and losses on properties and depreciation and
amortization, (v) increases in deferred taxes and other non-cash items,
(vi) depreciation and amortization with respect to interests in joint
venture and partially owned entity investments, (vii) the effect of any
charge resulting from a change in accounting principles in determining Earnings
from Operations for such period, and (viii) amortization of deferred
charges.

     

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    
 

    “Earnings from Operations” for
any period means net income excluding provisions for gains and losses on sales
of investments or joint ventures, extraordinary and non-recurring items, and
property valuation losses, as reflected in the consolidated financial statements
of the Guarantor and its Subsidiaries for such period determined in accordance
with GAAP.

    

    “Encumbrance” means any
mortgage, lien, charge, pledge or security interest of any kind.

    

    “GAAP” means generally
accepted accounting principles as used in the United States applied on a
consistent basis as in effect on December 31, 2008; provided that solely for
purposes of any calculation required by the financial covenants contained
herein, “GAAP” shall mean generally accepted accounting principles as used in
the United States on the date hereof, applied on a consistent
basis.

    

    “Guarantor” shall mean
Mack-Cali Realty, L.P., a Delaware limited partnership.

    

    “Indebtedness” of the
Guarantor or any Subsidiary means, without duplication, any indebtedness of the
Guarantor or any Subsidiary, whether or not contingent, in respect of:
(i) borrowed money or evidenced by bonds, notes, debentures or similar
instruments whether or not such indebtedness is secured by any Encumbrance
existing on property owned by the Guarantor or any Subsidiary,
(ii) indebtedness for borrowed money of a Person other than the Guarantor
or a Subsidiary which is secured by any Encumbrance existing on property owned
by the Guarantor or any Subsidiary, to the extent of the lesser of (x) the
amount of indebtedness so secured and (y) the fair market value of the
property subject to such Encumbrance, (iii) the reimbursement obligations,
contingent or otherwise, in connection with any letters of credit actually
issued or amounts representing the balance deferred and unpaid of the purchase
price of any property or services, except any such balance that constitutes an
accrued expense or trade payable, or (iv) any lease of property by the
Guarantor or any Subsidiary as lessee which is  reflected on the
Guarantor’s consolidated balance sheet as a capitalized lease in accordance with
GAAP; and also includes, to the extent not otherwise included, any obligation by
the Guarantor or any Subsidiary to be liable for, or to pay, as obligor,
guarantor or otherwise (other than for purposes of collection in the ordinary
course of business), Indebtedness of another Person (other than the Guarantor or
any Subsidiary; it being understood that Indebtedness shall be deemed to be
incurred by the Guarantor or any Subsidiary whenever the Guarantor or such
Subsidiary shall create, assume, guarantee or otherwise become liable in respect
thereof; Indebtedness of a Subsidiary of the Guarantor existing prior to the
time it became a Subsidiary of the Guarantor shall be deemed to be incurred upon
such Subsidiary’s becoming a Subsidiary of the Guarantor; and Indebtedness of a
person existing prior to a merger or consolidation of such person with the
Guarantor or any Subsidiary of the Guarantor in which such person is the
successor to the Guarantor or such Subsidiary shall be deemed to be incurred
upon the consummation of such merger or consolidation; provided, however, the
term “Indebtedness” shall not include any such indebtedness that has been the
subject of an “in substance” defeasance in accordance with GAAP).

     

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    
 

    “Intercompany Indebtedness”
means Indebtedness to which the only parties are Borrower, Guarantor, and any
Subsidiary (but only so long as such Indebtedness is held solely by any of
Borrower, Guarantor, and any Subsidiary) that is subordinate in right of payment
under the Note.

    

               “Person” means any individual,
corporation, partnership, limited liability company, limited partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

    

    “Subsidiary” means, with
respect to any Person, any corporation or other entity of which a majority of
the voting power of the voting equity securities or the outstanding equity
interests of which are owned, directly or indirectly, by such
Person.  For the purposes of this definition, “voting equity
securities” means equity securities having voting power for the election of
directors, whether at all times or only so long as no senior class of security
has such voting power by reason of any contingency.

    

    “Total Assets” as of any date
means the sum of (i) the Undepreciated Real Estate Assets and (ii) all
other assets of the Guarantor and its Subsidiaries determined in accordance with
GAAP (but excluding accounts receivable and intangibles).

    

    “Total Unencumbered Assets”
means the sum of (i) those Undepreciated Real Estate Assets not subject to
an Encumbrance for borrowed money and (ii) all other assets of the
Guarantor and its Subsidiaries not subject to an Encumbrance for borrowed money,
determined in accordance with GAAP (but excluding accounts receivable and
intangibles).

    

    “Undepreciated Real Estate
Assets” as of any date means the cost (original cost plus capital
improvements) of real estate assets of the Guarantor and its Subsidiaries on
such date, before depreciation and amortization, determined on a consolidated
basis in accordance with GAAP.

    

    “Unsecured Indebtedness” means
Indebtedness which is not secured by any Encumbrance upon any of the properties
of the Guarantor or any Subsidiary.

    

    Section
3.2.                      Financial
Covenants.  Borrowers and
Guarantor covenant and agree with Lender as follows:

    

    
      	
               
      

            	
              (i)

            	
              The
      Guarantor will not incur, and will not permit any Subsidiary to incur, any
      Indebtedness, other than Intercompany Indebtedness, if, immediately after
      giving effect to the incurrence of such additional Indebtedness and the
      application of the proceeds thereof, the aggregate principal amount of all
      outstanding Indebtedness of the Guarantor and its Subsidiaries on a
      consolidated basis determined in accordance with GAAP is greater than 60%
      of the sum of (without duplication) (A) the Total Assets of the Guarantor
      and its Subsidiaries as of the end of the calendar quarter covered in the
      Guarantor’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q,
      as the case may be, most recently filed with the Commission, prior to the
      incurrence of such additional Indebtedness, and (B) the purchase price of
      any assets included in the definition of Total Assets acquired, and (C)
      the amount of any securities offering proceeds received (to the extent
      such proceeds were not used to acquire items included in the definition of
      Total Assets or used to reduce indebtedness), by the Guarantor or any
      Subsidiary since the end of such calendar quarter, including those
      proceeds obtained in connection with the incurrence of such additional
      Indebtedness.

            

    

     

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (ii)

            	
              In
      addition to the limitation set forth in subsection (i) of this Section,
      the Guarantor will not, and will not permit any Subsidiary to, incur any
      Indebtedness if the ratio of Consolidated Income Available for Debt
      Service to the Annual Service Charge for the four consecutive fiscal
      quarters most recently ended prior to the date on which such additional
      Indebtedness is to be incurred shall have been less than1.5:1, on a PRO
      FORMA basis after giving effect thereto and to the application of the
      proceeds therefrom, and calculated on the assumption that (A) such
      Indebtedness and any other Indebtedness incurred by the Guarantor and its
      Subsidiaries since the first day of such four-quarter period and the
      application of the proceeds therefrom, including to refinance other
      Indebtedness, had occurred at the beginning of such period; (B) the
      repayment or retirement of any other Indebtedness by the Guarantor and its
      Subsidiaries since the first day of such four-quarter period had been
      repaid or retired at the beginning of such period (except that, in making
      such computation, the amount of Indebtedness under any revolving credit
      facility shall be computed based upon the average daily balance of such
      Indebtedness during such period); (C) in the case of Acquired Indebtedness
      or Indebtedness incurred in connection with any acquisition since the
      first day of such four-quarter period, the related acquisition had
      occurred as of the first day of such period with the appropriate
      adjustments with respect to such acquisition being included in such PRO
      FORMA calculation; and (D) in the case of any acquisition or disposition
      by the Guarantor or its Subsidiaries of any asset or group of assets since
      the first day of such four-quarter period, whether by merger, stock
      purchase or sale, or asset purchase or sale, such acquisition or
      disposition or any related repayment of Indebtedness had occurred as of
      the first day of such period with the appropriate adjustments with respect
      to such acquisition or disposition being included in such PRO FORMA
      calculation.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              In
      addition to the limitations set forth in subsections (i) and (ii) of this
      Section, the Guarantor will not, and will not permit any Subsidiary to,
      incur any Indebtedness secured by any Encumbrance upon any of the property
      of the Guarantor or any Subsidiary, whether owned as of the Closing Date
      or thereafter acquired, if, immediately after giving effect to the
      incurrence of such additional Indebtedness secured by an Encumbrance and
      the application of the proceeds thereof, the aggregate principal amount of
      all outstanding Indebtedness of the Guarantor and its Subsidiaries on a
      consolidated basis which is secured by any Encumbrance on property of the
      Guarantor or any Subsidiary is greater than 40% of the sum of (without
      duplication) (A) the Total Assets of the Guarantor and its Subsidiaries as
      of the end of the calendar quarter covered in the Guarantor’s Annual
      Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be,
      most recently filed with the Commission, prior to the incurrence of such
      additional Indebtedness and (B) the purchase price of any assets included
      in the definition of Total Assets acquired, and (C) the amount of any
      securities offering proceeds received (to the extent such proceeds were
      not used to acquire items included in the definition of Total Assets or
      used to reduce Indebtedness), by the Guarantor or any Subsidiary since the
      end of such calendar quarter, including those proceeds obtained in
      connection with the incurrence of such additional
      Indebtedness.

            

    

     

     

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (iv)

            	
              The
      Guarantor and its Subsidiaries may not at any time own Total Unencumbered
      Assets equal to less than 150% of the aggregate outstanding principal
      amount of the Unsecured Indebtedness of the Guarantor and its Subsidiaries
      on a consolidated basis.

            

    

    

    
      	
               
      

            	
              (v)

            	
              For
      purposes of this Section 3, Indebtedness shall be deemed to be
      “incurred” by the Guarantor or a Subsidiary whenever the Guarantor or such
      Subsidiary shall create, assume, guarantee or otherwise become liable in
      respect thereof.

            

    

    

    Section
3.3.                      Letter of
Credit.  If at any time
during the term of the Loan, any of the covenants listed in Section 3.2
above are not met (a “Covenant Breach”), Borrowers and Guarantors shall provide
to Lender a letter of credit complying with the provisions hereof or a cash
deposit (which shall be held by Lender in an escrow account controlled by
Lender) as additional security for the Loan, which letter of credit (or cash
deposit) shall be delivered on or before five (5) days after the earlier to
occur of (y) Borrower becoming aware of such Covenant Breach or
(z) Lender’s delivery of written notice to Borrower that a Covenant Breach
exists.  The letter of credit shall be satisfactory to Lender in form
and substance, shall be in the form attached hereto as Exhibit E,
and shall comply with the provisions in this Section 3.3
below.

    

    
      	
               
      

            	
              (i)

            	
              The
      letter of credit shall be drawn on a national bank satisfactory to
      Lender.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              The
      letter of credit shall have an initial term of at least twelve (12)
      months.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              The
      letter of credit shall be in an amount equal to $61,125,000 (subject to
      the provisions of Section 3.4
below).

            

    

    

    
      	
               
      

            	
              (iv)

            	
              The
      letter of credit shall be additional security for the Loan.  In
      addition to all other remedies to which Lender may be entitled upon an
      occurrence of an Event of Default under the Loan Documents which is not
      cured within any applicable cure period, if any, provided therein, Lender
      shall also be entitled to draw upon the letter of credit for application
      against the secured indebtedness (including Prepayment
      Premium).

            

    

    

    
      	
               
      

            	
              (v)

            	
              The
      letter of credit shall be regularly renewed at least forty-five (45) days
      prior to its expiration date and shall be drawn on a national bank
      satisfactory to Lender; provided that in the alternative Borrower shall be
      permitted to substitute a cash deposit (which shall be held by Lender in
      an escrow account controlled by Lender) at least 45 days prior to such
      expiration date (and Borrower may thereafter substitute for such cash a
      letter of credit meeting the standards of Lender hereunder).  If
      Borrower is replacing the national bank that is the issuer of the letter
      of credit, Borrower shall obtain Lender's written approval of such bank
      prior to renewal of the existing letter of credit, such approval to be
      given or withheld in Lender's sole discretion and within fifteen (15) days
      after written notice from Borrower.  In the event Lender
      withholds its approval, the existing letter of credit shall be replaced
      with a new letter of credit drawn on a national bank satisfactory to
      Lender in its sole discretion and with an initial term of at least one (1)
      year or Borrower may substitute a cash deposit for such letter of
      credit.  Failure so to renew or replace and renew the letter of
      credit or replace such letter of credit with a cash deposit in accordance
      with the provisions of this paragraph shall constitute an Event of Default
      under the Loan Documents and shall entitle Lender (a) to draw upon
      the letter of credit for application against the secured indebtedness
      (including Prepayment Premium) and (b) to exercise any and all other
      remedies it may have upon an Event of Default under the Loan Documents;
      provided, however, that if the sole Event of Default is the failure to
      renew such letter of credit or replace such letter of credit with a cash
      deposit in accordance with the above provisions, then Lender’s exercise of
      remedies under this clause (b) shall not commence until five (5) days have
      expired after Lender’s delivery of written notice to Borrower of such
      failure, and Borrower has continued to fail to renew such letter of
      credit, or replace such letter of credit or substitute a cash deposit for
      such letter of credit within such five (5) day
  period.

            

    

     

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (vi)

            	
              In
      the event that Lender determines, in its sole discretion, that there has
      been an adverse change in the financial condition of the bank which has
      issued the letter of credit, Lender shall have the right to require the
      replacement of the letter of credit with a new letter of credit drawn on a
      national bank satisfactory to Lender and with an initial term at least
      equal to the remaining term of the existing letter of credit unless the
      term of the existing letter of credit is less than one hundred twenty-one
      (121) days.  In the event the remaining term of the existing
      letter of credit is less than one hundred twenty-one (121) days, then the
      initial term of the replacement letter of credit shall be at least one (1)
      year.  Borrower shall have sixty (60) days after the date
      written notice is sent from Lender to Borrower to deliver the replacement
      letter of credit to Lender; provided that in the alternative Borrower
      shall be permitted to substitute a cash deposit (which shall be held by
      Lender in an escrow account controlled by Lender) within such sixty (60)
      day period (and Borrower may thereafter substitute for such cash a letter
      of credit meeting the standards of Lender hereunder); with respect
      thereto, Borrower shall have the right to direct Lender in writing to draw
      upon the existing letter of credit, and Lender agrees to do so within two
      (2) business days of such request, and if Lender recovers under such
      letter of credit within such sixty (60) day period, then Lender shall hold
      the proceeds as the cash deposit in lieu of a Letter of Credit if there is
      no Event of Default.  Failure to replace the existing letter of
      credit and deliver a new letter of credit in accordance with the
      provisions of this paragraph or substitute a cash deposit for such letter
      of credit shall entitle Lender (i) to draw upon the existing letter
      of credit for application against the secured indebtedness (including
      Prepayment Premium) at the expiration of said sixty-day period, and
      (ii) to exercise any and all other remedies it may have upon an Event
      of Default under the Loan Documents; provided, however, that if the sole
      Event of Default is the failure to renew such letter of credit or replace
      such letter of credit with a cash deposit in accordance with the above
      provisions, then Lender’s exercise of remedies under this clause (ii)
      shall not commence until five (5) days have expired after Lender’s
      delivery of written notice to Borrower of such failure, and Borrower has
      continued to fail to renew such letter of credit, replace such letter of
      credit or substitute a cash deposit for such letter of credit within such
      five (5) day period.

            

    

     

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (vii)

            	
              Borrower
      shall be responsible for and must pay all costs and expenses (including,
      but not limited to, the fees and disbursements of Lender’s outside
      counsel) for the preparation of the letter of credit agreement, review of
      any materials and documents submitted in connection with any reductions in
      or release of the letter of credit or cash deposits, and any modification
      of the Loan Documents deemed necessary by
  Lender.

            

    

    

    Section
3.4.                      Letter of
Credit Reductions.  Upon Borrower’s
written request and provided no default then exists under the Loan, Lender shall
consent to reductions in the letter of credit or cash deposit as
follows:

    

    
      	
               
      

            	
              (a)

            	
              If
      Prentice Hall exercises the Prentice Hall Renewal in accordance with the
      provisions of the Prentice Hall Lease, with a minimum five year extended
      term, and such Prentice Hall Renewal is for a minimum rental rate equal to
      or in excess of the Prentice Hall Full Release Rental, and Borrower
      provides the Prentice Hall Renewal Documents to Lender in form and
      substance reasonably acceptable to Lender, then, upon written request of
      Borrower or Guarantor, Lender shall consent to a reduction of $42,000,000
      in the letter of credit or cash deposit, as the case may be;
      alternatively, if Prentice Hall exercises the Prentice Hall Renewal in
      accordance with the provisions of the Prentice Hall Lease, with a minimum
      five year extended term, and such Prentice Hall Renewal is for a minimum
      rental rate within the parameters of the Prentice Hall Half Release
      Rental, and Borrower provides the Prentice Hall Renewal Documents to
      Lender in form and substance reasonably acceptable to Lender, then, upon
      written request of Borrower or Guarantor, Lender shall consent to a
      reduction of $21,000,000 in the letter of credit or cash deposit, as the
      case may be;

            

    

    

    
      	
               
      

            	
              (b)

            	
              If
      New Cingular Wireless exercises the New Cingular Wireless Renewal in
      accordance with the provisions of the New Cingular Wireless Lease, with a
      minimum five year extended term, and such New Cingular Wireless Renewal is
      for a minimum rental rate equal to or in excess of the New Cingular
      Wireless Full Release Rental, and Borrower provides the New Cingular
      Wireless Renewal Documents to Lender in form and substance reasonably
      acceptable to Lender, then, upon written request of Borrower or Guarantor,
      Lender shall consent to a reduction of $19,125,000 in the letter of credit
      or cash deposit, as the case may be; alternatively, if New Cingular
      Wireless exercises the New Cingular Wireless Renewal in accordance with
      the provisions of the New Cingular Wireless Lease, with a minimum five
      year extended term, and such New Cingular Wireless Renewal is for a
      minimum rental rate within the parameters of the New Cingular Wireless
      Half Release Rental, and Borrower provides the New Cingular Wireless
      Renewal Documents to Lender in form and substance reasonably acceptable to
      Lender, then, upon written request of Borrower or Guarantor, Lender shall
      consent to a reduction of $9,562,500 in the letter of credit or cash
      deposit, as the case may be;

            

    

     

     

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (c)

            	
              If
      Prentice Hall does not renew the Prentice Hall Lease, then Lender will
      consent to reductions in the letter of credit or cash deposit as set forth
      below with respect to space leased in the Prentice Hall Space pursuant to
      lease(s) complying with the following requirements (“Prentice Hall
      Replacement Lease Requirements”):

            

    

    

    
      	
               
      

            	
              (i)

            	
              Each
      lease (each, a “Prentice Hall Replacement Lease”) must be with a
      third-party tenant reasonably satisfactory to Lender with credit
      reasonably satisfactory to Lender, and for terms of no less than 60
      months; such rentals shall be (y) for multi tenant buildings, on a
      gross rental basis with monthly payments, and with tenants to pay for
      their proportionate share of nonstructural repairs to their premises and
      their pro rata share of all operating expenses, utilities, taxes,
      insurance and common area maintenance costs in excess of the amount of
      such costs for the base year, or, (z) for single tenant buildings, on
      a triple net rent basis, with monthly payments, and with the tenant to pay
      for all taxes, insurance, utilities, operating and maintenance costs; if
      such Prentice Hall Replacement Lease is for a minimum rental rate equal to
      or in excess of the Prentice Hall Full Release Rental, and Borrower
      satisfies the conditions set forth below with respect thereto, then, upon
      written request of Borrower or Guarantor, Lender shall consent to a
      reduction of the letter of credit or cash deposit equal to $88.50 per
      square foot for the Prentice Hall Space so leased by such Prentice Hall
      Replacement Lease; alternatively, if such Prentice Hall Replacement Lease
      is for a minimum rental rate within the parameters of the Prentice Hall
      Half Release Rental, and Borrower satisfies the conditions set forth below
      with respect thereto, then, upon written request of Borrower or Guarantor,
      Lender shall consent to a reduction of the letter of credit or cash
      deposit equal to $44.25 per square foot for the Prentice Hall Space so
      leased by such Prentice Hall Replacement
Lease;

            

    

     

     

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (ii)

            	
              The
      tenant under such Prentice Hall Replacement Lease must have accepted
      possession of the demised premises, paying full rent (with no further free
      rent provisions existing during the initial term of such Prentice Hall
      Replacement Lease), and not otherwise in default or
      bankruptcy;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Borrower
      shall deliver to Lender satisfactory evidence of the payment of all
      leasing commissions for the initial term of such Prentice Hall Replacement
      Lease (all of which must be paid in full, even if permitted to be paid out
      over such initial term of such Prentice Hall Replacement Lease; or if not
      paid in full, Borrower and the Recourse Parties shall be personally liable
      for such unpaid amounts);

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Borrower
      must deliver to Lender a copy of the applicable Prentice Hall Replacement
      Lease, and such Prentice Hall Replacement Lease must be in compliance with
      the Loan Documents;

            

    

    

    
      	
               
      

            	
              (v)

            	
              Borrower
      must deliver to Lender (a) an endorsement to the title policy certifying
      that there are no liens with respect to the Property (or, if the
      endorsement would cost more than $500, a title checkdown or update
      certifying the status of title from and after the date of the title policy
      and identifying all matters of title including liens, all whether superior
      or subordinate to the applicable Mortgage), and (b) certificates of
      occupancy and other evidence satisfactory to Lender that evidencing that
      (i) the tenant improvements required by such Prentice Hall Replacement
      Lease have been completed in accordance with applicable laws and
      ordinances and in a manner satisfactory to Lender and (ii) that all work
      has been satisfactorily completed and paid for;
  and

            

    

    

    
      	
               
      

            	
              (vi)

            	
              Borrower
      shall deliver to Lender an original estoppel certificate in form and
      substance satisfactory to Lender, but subject to requirements of the
      Lease, which estoppel certificate shall have been fully executed by such
      tenant.

            

    

    

    
      	
               
      

            	
              (d)

            	
              If
      New Cingular Wireless does not renew the New Cingular Wireless Lease, then
      Lender will consent to reductions in the letter of credit or cash deposit
      as set forth below with respect to space leased in the New Cingular
      Wireless Space pursuant to lease(s) complying with the following
      requirements (“New Cingular Wireless Replacement Lease
      Requirements”):

            

    

    

    
      	
               
      

            	
              (i)

            	
              Each
      lease (each, a “New Cingular Wireless Replacement Lease”) must be with a
      third-party tenant reasonably satisfactory to Lender with credit
      reasonably satisfactory to Lender, and for terms of no less than 60
      months; such rentals shall be (y) for multi tenant buildings, on a
      gross rental basis with monthly payments, and with tenants to pay for
      their proportionate share of nonstructural repairs to their premises and
      their pro rata share of all operating expenses, utilities, taxes,
      insurance and common area maintenance costs in excess of the amount of
      such costs for the base year, or, (z) for single tenant buildings, on
      a triple net rent basis, with monthly payments, and with the tenant to pay
      for all taxes, insurance, utilities, operating and maintenance costs; if
      such New Cingular Wireless Replacement Lease is for a minimum rental rate
      equal to or in excess of the New Cingular Wireless Full Release Rental,
      and Borrower satisfies the conditions set forth below with respect
      thereto, then, upon written request of Borrower or Guarantor, Lender shall
      consent to a reduction of the letter of credit or cash deposit equal to
      $57.50 per square foot for the New Cingular Wireless Space so leased by
      such New Cingular Wireless Replacement Lease; alternatively, if such New
      Cingular Wireless Replacement Lease is for a minimum rental rate within
      the parameters of the New Cingular Wireless Half Release Rental, and
      Borrower satisfies the conditions set forth below with respect thereto,
      then, upon written request of Borrower or Guarantor, Lender shall consent
      to a reduction of the letter of credit or cash deposit equal to $28.75 per
      square foot for the New Cingular Wireless Space so leased by such New
      Cingular Wireless Replacement
Lease;

            

    

     

     

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (ii)

            	
              The
      tenant under such New Cingular Wireless Replacement Lease must have
      accepted possession of the demised premises, paying full rent (with no
      further free rent provisions existing during the initial term of such New
      Cingular Wireless Replacement Lease), and not otherwise in default or
      bankruptcy;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Borrower
      shall deliver to Lender satisfactory evidence of the payment of all
      leasing commissions for the initial term of such New Cingular Wireless
      Replacement Lease (all of which must be paid in full, even if permitted to
      be paid out over such initial term of such New Cingular Wireless
      Replacement Lease; or if not paid in full, Borrower and the Recourse
      Parties shall be personally liable for such unpaid
    amounts);

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Borrower
      must deliver to Lender a copy of the applicable New Cingular Wireless
      Replacement Lease, and such New Cingular Wireless Replacement Lease must
      be in compliance with the Loan
Documents;

            

    

    

    
      	
               
      

            	
              (v)

            	
              Borrower
      must deliver to Lender (a) an endorsement to the title policy certifying
      that there are no liens with respect to the Property (or, if the
      endorsement would cost more than $500, a title checkdown or update
      certifying the status of title from and after the date of the title policy
      and identifying all matters of title including liens, all whether superior
      or subordinate to the applicable Mortgage), and (b) certificates of
      occupancy and other evidence satisfactory to Lender that evidencing that
      (i) the tenant improvements required by such New Cingular Wireless
      Replacement Lease have been completed in accordance with applicable laws
      and ordinances and in a manner satisfactory to Lender and (ii) that all
      work has been satisfactorily completed and paid for;
  and

            

    

     

    
      
         

      

      
        -23-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (vi)

            	
              Borrower
      shall deliver to Lender an original estoppel certificate in form and
      substance satisfactory to Lender, but subject to requirements of the
      Lease, which estoppel certificate shall have been fully executed by such
      tenant.

            

    

    

    Section
3.5.                      Covenant
Cure.  If at any time
during the term of the Loan, after any of the covenants listed above in
Section 3.2 have not been met and so Guarantor provides to Lender a letter
of credit or cash deposit as set forth above, and, thereafter, for four (4)
consecutive calendar quarters Borrower complies with all of the covenants listed
above in Section 3.2, then, so long as there is then no Event of Default
under the Loan Documents (or uncured event that with the passage of time or the
giving of notice, or both, would constitute an Event of Default), Borrower shall
be entitled, on written request to Lender, to the return of the letter of credit
or cash deposit.

    

    Section
3.6.                      Cash
Management.  During the term
of the Loan and pursuant to such cash management and bank agreements acceptable
to Lender (consisting, as of the date hereof, of the Cash Management Agreement
and the Clearing Bank Deposit Account Control Agreement), all Property revenue
shall be paid directly by tenants and other payees to an account controlled by
Lender.  Until the occurrence of any of the Trigger Events, such
revenue will be promptly forwarded to an account controlled by Borrower and
Borrower will pay all debt service, reserves and other payments required under
the Loan, including operating expenses of and other required payments with
respect to the Property.  Upon the occurrence of a Trigger Event,
Lender will apply all of the Property revenue as set forth in the Cash
Management Agreement.  In the event of the occurrence of a Trigger
Event and in the event that such Trigger Events have been “Cured” (as defined
below), then the Property revenue will be redirected to an account controlled by
Borrower and Borrower will pay all debt service, reserves and other payments
required under the Loan until such time as a new Trigger Event
occurs.  A Trigger Event shall be deemed “Cured” if the following have
been satisfied:  (i) the Loan is not then in default and given
the passage of time or the giving of notice would not be in default, and
(ii) the letter of credit or cash deposit required by this Section 3
has been delivered to Lender and is being maintained by Borrower in accordance
with the provisions of this Section 3.

    

    Section
4.                      COLLATERAL.  Subject to
Section 5, Section 6 and Section 7 hereof, the Obligations shall
be secured by (i) a perfected first priority lien or security title to be
held by Lender in the Properties, pursuant to the terms of the First Mortgages,
and a perfected second priority lien or security title to be held by Lender in
the Properties, pursuant to the terms of the Second Mortgages, (ii) a
perfected first priority security interest to be held by Lender in the Leases
pursuant to the Assignments of Rents, (iii) an assignment of agreements
representing a first priority assignment to Lender of all agreements and other
documents relating to the ownership, development, operation, construction or use
of the Properties, and (iv) the other Security Documents and
Collateral.

     

     

    
      
         

      

      
        -24-

        
          

        

      

      
         

      

    

     

    
 

    Section
5.                      RELEASE
OF PROPERTIES.  Upon Borrower’s
written request which shall include all materials and information necessary to
evaluate such request, to be received with not less than thirty (30) days prior
notice, Lender shall release not more than two (2) Individual Properties
whose original allocated Individual Loan principal balances collectively do not
exceed $50,000,000.00 (except if the only release is as set forth in
subsection (i) below) from the lien of the Loan Documents (“Release
Property”), upon the following terms and conditions:

    

    
      	
               
      

            	
              (a)

            	
              At
      the time of the request and the time of the Release, there shall be no
      Event of Default under the Loan Documents, and there shall exist no
      condition or state of facts which with the passage of time or the giving
      of notice or both, would constitute a default under the Loan Documents
      (except for any such default relating solely to the Release Property
      which, by its very nature, will be cured by the requested
      Release).

            

    

    

    
      	
               
      

            	
              (b)

            	
              Any
      such request may be made beginning six (6) months after the date hereof
      and any such partial Release must occur prior to the last six (6) months
      prior to the Maturity Date.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Each
      Release Property released shall be the entire Individual Property
      identified with the applicable Individual
Loan.

            

    

    

    
      	
               
      

            	
              (d)

            	
              For
      each Release Property, Borrower shall have made the “Release Price”
      payment to Lender, in an amount equal to 110% of the principal balance of
      the Individual Loan applicable to the Release Property, together with a
      prepayment premium (based on the Release
Price).

            

    

    

    
      	
               
      

            	
              (e)

            	
              The
      Release Price shall be applied to pay in full the principal balance due
      with respect to the Individual Loan applicable to the Release Property and
      Borrower shall, in addition, pay all amounts due with respect to such
      Release Price with respect to interest, prepayment premium and reasonable
      costs and expenses.  Lender shall apply the portion of any
      Release payment which is in excess of the balance of the Individual Loan
      applicable to the Release Property to any Individual Loan or Individual
      Loans, in Lender’s sole discretion, and, upon Borrower’s written request,
      Lender shall provide Borrower with Lender’s allocation of such amounts
      thirty days prior to such Release or ten (10) days after such request, if
      later.

            

    

    

    
      	
               
      

            	
              (f)

            	
              At
      the time of the Release, the Debt Service Coverage, calculated with
      respect to the remaining Properties (excluding the Released Property)
      shall be equal to or greater than (i) the Debt Service Coverage with
      respect to all of the Properties (including the Released Property)
      immediately prior to such Release, and, in any event, (ii) 2.00 to
      1.00.  In the event the Debt Service Coverage of the remaining
      Properties (as determined by Lender in its sole discretion) falls below
      the required level, Borrower shall have the right, subject to payment of
      the Prepayment Premium calculated in accordance with the provisions set
      forth in the Notes, to pay Lender the amount necessary to increase the
      Debt Service Coverage of the remaining Properties to the required
      level.

            

    

     

     

    
      
         

      

      
        -25-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (g)

            	
              At
      the time of the Release, the Loan to Value Ratio, calculated with respect
      to the remaining Properties (excluding the Released Property), does not
      exceed the lesser of (1) thirty seven percent (37%) or
      (2) the Loan to Value Ratio of the entire Properties (including the
      Released Property) immediately prior to such Release.  In the
      event the Loan to Value Ratio of the remaining Properties (as determined
      by Lender in its sole discretion) exceeds the required level, Borrower
      shall have the right, subject to payment of the Prepayment Premium
      calculated in accordance with the provisions set forth in the Notes, to
      pay Lender the amount necessary to reduce the loan to value ratio of the
      remaining Properties to the required level.  Provided, however,
      if (i) the Prentice Hall Renewal for a minimum rental rate equal to
      or in excess of the Prentice Hall Full Release Rental has occurred in
      accordance with the requirements of Section 3.4(a) and the New
      Cingular Wireless Renewal for a minimum rental rate equal to or in excess
      of the New Cingular Wireless Full Release Rental has occurred in
      accordance with the requirements of Section 3.4(b), or (ii) the
      Prentice Hall Renewal for a minimum rental rate equal to or in excess of
      the Prentice Hall Full Release Rental has occurred in accordance with the
      requirements of Section 3.4(a) and all of the New Cingular Wireless
      Space has been leased pursuant to New Cingular Wireless Replacement Leases
      in accordance with the New Cingular Wireless Replacement Lease
      Requirements for a minimum rental rate equal to or in excess of the New
      Cingular Wireless Full Release Rental in accordance with the requirements
      of Section 3.4(d), or (iii) the New Cingular Wireless Renewal
      for a minimum rental rate equal to or in excess of the New Cingular
      Wireless Full Release Rental has occurred in accordance with the
      requirements of Section 3.4(b) and all of the Prentice Hall Space has
      been leased pursuant to Prentice Hall Replacement Leases in accordance
      with the Prentice Hall Replacement Lease Requirements for a minimum rental
      rate equal to or in excess of the Prentice Hall Full Release Rental in
      accordance with the requirements of Section 3.4(c), or (iv) all
      of the Prentice Hall Space has been leased pursuant to Prentice Hall
      Replacement Leases in accordance with the Prentice Hall Replacement Lease
      Requirements for a minimum rental rate equal to or in excess of the
      Prentice Hall Full Release Rental in accordance with the requirements of
      Section 3.4(c), and all of the New Cingular Wireless Space has been
      leased pursuant to New Cingular Wireless Replacement Leases in accordance
      with the New Cingular Wireless Replacement Lease Requirements for a
      minimum rental rate equal to or in excess of the New Cingular Wireless
      Full Release Rental in accordance with the requirements of
      Section 3.4(d), then the percentage listed in (g) (1) above shall be
      increased from thirty seven percent (37%) to forty-two
      (42%).

            

    

    

    
      	
               
      

            	
              (h)

            	
              In
      no event will Lender be required to release more than two (2) Individual
      Properties in total during the term of the Loan (except as and only upon
      the conditions set forth in (i) below), and, in addition, such releases
      shall not exceed releases of property allocated to Loans comprising
      $50,000,000.00 of the original principal balance of the
    Loan.

            

    

     

     

    
      
         

      

      
        -26-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (i)

            	
              Unless
      otherwise agreed to by Lender in its sole discretion, the Individual
      Properties known as Mack-Cali Centre VII, Mack-Cali Centre III
      and Mack-Cali Centre II (collectively, the “Tied Properties”) will
      not be eligible for partial releases (if at such time any of the leases in
      such Tied Properties have any right to expand into, or rights of refusal
      or offer in, any building located on another Tied Property, unless such
      rights been amended to terminate and eliminate such rights as a portion of
      the contractual rights of such Lease, and to provide that the Tenant’s
      recourse shall only be as a contractual right, of public record, with the
      owner of such Tied Property that is to be released in such release),
      unless all of such Properties are released at the same time (or
      substituted as to some Tied Properties and released as to all the other
      Tied Properties at such time), and provided that the aggregate balance of
      all of the Loans is not less than $85,000,000.00 following such
      Release.  Under this provision Lender shall consent to the
      Release of all three Tied Properties (Mack-Cali Centre VII, Mack-Cali
      Centre III and Mack-Cali Centre II) if no other releases or substitutions
      of previously occurred, but Lender, but Lender will not consent to any
      additional Releases or Substitutions during the Loan
  term.

            

    

    

    
      	
               
      

            	
              (j)

            	
              For
      each Release Property requested to be released, Borrower shall pay to
      Lender a release fee of $15,000.00 which shall be non-refundable and
      payable to Lender at the time of request for
  Release.

            

    

    

    
      	
               
      

            	
              (k)

            	
              Borrower
      shall pay to Lender all escrow, closing and recording costs including, but
      not limited to, the cost of preparing and delivering any reconveyance
      documentation and modification of the Loan Documents, including legal fees
      and costs, the cost of any title insurance endorsements that Lender may
      require, any expenses incurred by the Lender in connection with the
      partial release, and any sums then due and payable under the Loan
      Documents.

            

    

    

    
      	
               
      

            	
              (l)

            	
              Such
      other terms and conditions as Lender shall reasonably
    require.

            

    

    

    Notwithstanding
anything to the contrary in this Section 5 and/or Section 6 regarding
Substitution of Collateral, Borrower shall only have the right to a combined
cumulative total (during the entire term of the Loan) of two (2) Releases and
Substitutions, except if the Release is in accordance with the conditions set
forth in subsection (i) of this Section 5 or if the Substitution is in
accordance with the conditions set forth in subsection (o) of
Section 6.

    

    Section
6.                      SUBSTITUTION
OF COLLATERAL.  Notwithstanding
anything to the contrary contained in the Loan Documents, Borrower shall have
the right to request in writing that Lender accept additional real estate and
related personal property collateral (“Substitute Collateral”) in substitution
for one Individual Property and the related Personal Property Security (the “Old
Security”) to be released from the lien of the Loan Documents.  Such
request may be made on not more than two (2) Individual Properties during the
Term of the Loan (except if the Release is in accordance with the conditions set
forth in subsection (o) below), and further, any such Substitution must occur
after six (6) months from the date hereof and prior to the last six (6) months
prior to the Maturity Date.  Lender shall have the right to approve
any such Substitution in Lender’s sole discretion.  Lender shall
advise Borrower as soon as practicable of Lender’s approval or disapproval of
any such Substitution of collateral;  if such Substitution is
approved, Lender shall also advise Borrower of the conditions for such approval,
which shall include, without limitation, the following:

     

     

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (a)

            	
              The
      Substitute Collateral must consist of one or more legally separate parcels
      of land owned in fee simple in the United States.  The
      Substitute Collateral shall be an office property and must be of similar
      or better quality than the Old Security and must be satisfactory to Lender
      in Lender’s sole discretion.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Lender
      must receive perfected first and exclusive liens, security interest and/or
      security title on the Substitute Collateral, and the Loan for the
      Substitute Collateral shall be cross collateralized and cross defaulted
      with all the other Loans pursuant to the Loan Documents.  The
      ownership entity that owns the Substitute Collateral (the “Substitute
      Collateral Owner”) shall be identical to that of the Individual Borrower
      that owned the Old Security or if the Substitute Collateral Owner is not
      the same as the Individual Borrower that owned the Old Security, then
      (A) the Substitute Collateral Owner’s parent (the “Parent”) must own
      100% of the Individual Borrower that owned the Old Security and 100% of
      the Substitute Collateral Owner (provided that the Parent may have such
      100% ownership through intermediate entities in the chain of ownership
      between the Parent and the Individual Borrower and the Substitute
      Collateral Owner, in which no other party other than such Parent, directly
      or through such intermediate entities, holds any legal or beneficial
      ownership interest), (B) if the Substitute Collateral is newly
      acquired, the Substitute Collateral Owner, Individual Borrower of the Old
      Security and the Parent (and any intermediate entities as aforesaid) shall
      enter into an agreement, in form and substance satisfactory to Lender,
      that shall provide that, among other things, the Parent would not have
      provided the funds for the purchase of the Substitute Collateral had
      Substitute Collateral Owner not agreed to assume the obligations under the
      Loan Documents, (C) Lender shall be satisfied, in its sole
      discretion, that the assumption of the obligations under the Loan
      Documents by the Substitute Collateral Owner shall not render the
      Substitute Collateral Owner insolvent or leave the Substitute Collateral
      Owner with unreasonably small capital, (D) Lender shall be satisfied,
      in its sole discretion, that the Loan, the collateral for the Loan, and
      the structure of the Loan will not be materially impaired as a result of
      such substitution, and (E) the Substitute Collateral Owner shall
      expressly assume all obligations under the Loan Documents and shall
      execute any documents reasonably required by Lender, and all of these
      documents shall be satisfactory in form and substance to
      Lender.

            

    

     

     

    
      
         

      

      
        -28-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (c)

            	
              The
      Substitute Collateral must comply with Lender’s then current underwriting
      and other requirements in all respects, including, without limitation,
      loan documents, title, survey, compliance with zoning, building,
      environmental and land use laws, construction and engineering, insurance,
      leases, real estate taxes, legal opinions, estoppel certificates and all
      other terms and conditions.

            

    

    

    
      	
               
      

            	
              (d)

            	
              The
      NOI from the Substitute Collateral shall equal or exceed the NOI from the
      Old Security, calculated as of the date of the Substitution, and Lender
      shall have no reason to reasonably believe that such NOI from the
      Substitute Collateral will not be continued for the next succeeding
      twenty-four (24) months, and the fair market value of the Substitute
      Collateral shall equal or exceed the fair market value of the Old Security
      (as of the Substitution date), as determined by Lender in its sole
      discretion, absent manifest error.  In the event the NOI of the
      Substitute Collateral (as determined by Lender in its sole discretion)
      falls below the required level, Borrower shall have the right, subject to
      payment of the prepayment premium calculated in accordance with the
      provisions set forth in the Notes, to pay Lender the amount necessary to
      decrease the Debt Service of the remaining Properties to meet the other
      conditions of this Section 6.

            

    

    

    
      	
               
      

            	
              (e)

            	
              The
      location (including, without limitation, the character and demographics of
      the market area) of the Substitute Collateral shall be satisfactory to
      Lender in Lender’s sole discretion.  The consent of Lender to
      the Substitution of Collateral is expressly made subject to Lender’s
      analyses and approval of the economic trends affecting the Substitute
      Collateral.

            

    

    

    
      	
               
      

            	
              (f)

            	
              The
      credit of the tenants shall be acceptable in Lender’s sole
      discretion.

            

    

    

    
      	
               
      

            	
              (g)

            	
              Lender
      shall have received a report in accordance with Lender’s then-current
      standards from an engineer or architect chosen by Lender regarding the
      physical structure of the Substitute Collateral, which report shall be
      satisfactory in all respects to Lender in Lender’s sole
      discretion.  In addition, Lender shall have received an
      Environmental Report in accordance with Lender’s then-current
      environmental guidelines, which Environmental Report shall be satisfactory
      in all respects to Lender in Lender’s sole discretion.  The cost
      of preparation of all such reports and all necessary inspections shall be
      paid by Borrower.

            

    

    

    
      	
               
      

            	
              (h)

            	
              At
      the time of the Substitution, Debt Service Coverage, calculated with
      respect to the Real Estate Security including the Substitute Collateral
      but excluding the Old Security is equal to or greater than (i) the
      Debt Service Coverage with respect to all of the Properties (including the
      substituted Property) immediately prior to such Substitution, and, in any
      event, (ii) 2.00 to 1.00.  In the event the Debt Service
      Coverage of the remaining Properties (as determined by Lender in its sole
      discretion) falls below the required level, Borrower shall have the right,
      subject to payment of the prepayment premium calculated in accordance with
      the provisions set forth in the Notes, to pay Lender the amount necessary
      to increase the Debt Service Coverage of the remaining Properties to the
      required level.

            

    

     

     

    
      
         

      

      
        -29-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (i)

            	
              At
      the time of the Substitution, the Loan to Value Ratio, calculated with
      respect to the Real Estate Security including the Substitute Collateral
      but excluding the Old Security, does not exceed the lesser of
      (1) forty seven percent (47%), or (2) the Loan to Value
      Ratio of the entire Properties (including the Old Security) immediately
      prior to such Release.  In the event the Loan to Value Ratio of
      the remaining Properties (as determined by Lender in its sole discretion)
      exceeds the required level, Borrower shall have the right, subject to
      payment of the prepayment premium calculated in accordance with the
      provisions set forth in the Notes, to pay Lender the amount necessary to
      reduce the loan to value ratio of the remaining Properties to the required
      level.

            

    

    

    
      	
               
      

            	
              (j)

            	
              Borrower
      shall pay all reasonable costs and expenses incurred by Lender in
      connection with the Substitution, including, but not limited to, all
      legal, accounting, title insurance and appraisal fees, recording costs,
      intangible taxes and documentary stamps, and a MAI appraisal (prepared by
      an appraiser selected by Lender) of the Substitute Property, whether or
      not such Substitution is actually
consummated.

            

    

    

    
      	
               
      

            	
              (k)

            	
              [Intentionally
      deleted]

            

    

    

    
      	
               
      

            	
              (l)

            	
              At
      the time of the request and the time of the Substitution, there shall be
      no default under the Loan Documents, and there shall exist no condition or
      state of facts which with the passage of time or the giving of notice or
      both, would constitute a default under the Loan Documents (except for any
      such default relating solely to the Old Security which, by its very
      nature, will be cured by the requested
  Substitution).

            

    

    

    
      	
               
      

            	
              (m)

            	
              Borrower
      shall pay Lender a $25,000.00 servicing fee (the “Substitution Servicing
      Fee”) for consideration by Lender of the request at the time Borrower
      makes such request, which shall be deemed fully earned by Lender even if
      such request is denied, and an additional fee (against which the
      Substitution Servicing Fee shall be credited) equal to one half percent
      (0.5%) of the allocated loan balance for the Old Security, which
      additional fee shall be paid at the time of
  closing.

            

    

    

    
      	
               
      

            	
              (n)

            	
              The
      Substitute Collateral shall not consist of any partial interest in a
      property, including but not limited to partnership or joint venture
      interests.  The Old Security is not eligible for
      substitution  if at the time of the proposed substitution
      (i) any of the leases in the Old Security have any right to expand
      into, or rights of refusal or offer in any building  located on
      another Individual Property, unless such rights have been amended to
      terminate and eliminate such rights as a portion of the contractual rights
      of such Lease, and to provide that the applicable Tenant’s recourse shall
      only be as a contractual right, of public record, with the owner of the
      Old Security to be released in such Substitution or (ii) any of the
      leases in any of the other Individual Properties have any right to expand
      into, or rights of refusal or offer in any building  located on
      the Old Security, unless such rights have been amended to terminate and
      eliminate such rights as a portion of the contractual rights of such
      Lease, and to provide that the applicable Tenant’s recourse shall only be
      as a contractual right, of public record, with the owner of the Old
      Security to be released in such
Substitution.

            

    

     

     

    
      
         

      

      
        -30-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (o)

            	
              Unless
      otherwise agreed to by Lender in its sole discretion, the Tied Properties
      (Mack-Cali Centre VII, Mack-Cali Centre III and Mack-Cali
      Centre II) will not be eligible for Substitution (if at such time any
      of the leases in the Tied Properties have any right to expand into, or
      rights of refusal or offer in any building  located on another
      Tied Property, unless such rights have been amended to terminate and
      eliminate such rights as a portion of the contractual rights of such
      Lease, and to provide that the applicable Tenant’s recourse shall only be
      as a contractual right, of public record, with the owner of such
      individual Tied Property to be released in such Substitution), unless all
      of such Tied Properties are substituted at the same time (or substituted
      as to some Tied Properties and released as to all the other Tied
      Properties at such time), and provided that the aggregate balance of all
      of the Loans is not less than $85,000,000.00 following any such
      Release.  Under this provision Lender shall consent to the
      Release (in connection with a substitution) of all three Tied Properties
      (Mack-Cali Centre VII, Mack-Cali Centre III and Mack-Cali Centre II)
      if no other releases or substitutions have previously occurred, but
      Lender, but will not consent to any additional Releases or Substitutions
      during the Loan term, except in connection with the additional letter of
      credit which may be posted in the last 12 months of the
    Loan.

            

    

    

    Cash and Letter of Credit
General Options.  Subject to Borrower’s compliance with all of
the above requirements, Borrower shall be permitted to substitute cash (which
shall be held by Lender in an escrow account controlled by Lender) or a letter
of credit for an Old Security so long as such letter of credit shall be in form
and substance satisfactory to Lender, shall be issued by a bank satisfactory to
Lender, and shall have an initial term of at least twelve (12)
months.  The amount of the cash escrow or letter of credit will be
(i) 110% of the Loan amount allocated to the Old Security, so long as the
Loan to Value Ratio, calculated with respect to the Real Estate Security,
excluding the cash escrow or letter of credit and excluding the Old Security,
does not exceed forty-two percent (42%), or, (ii) an amount such that at
the time of the Substitution, the Loan to Value Ratio, calculated with respect
to the Real Estate Security including the cash escrow or letter of credit but
excluding the Old Security, does not exceed forty-seven percent
(47%).  So long as such letter of credit is providing security for
such Loan, it shall be regularly renewed at least forty five (45) days prior to
its expiration date, with a renewal term of at least twelve (12) months;
provided that in the alternative Borrower shall be permitted to substitute a
cash deposit (which shall be held by Lender in an escrow account controlled by
Lender) at least 45 days prior to such expiration date (and Borrower may
thereafter substitute for such cash a letter of credit meeting the standards of
Lender hereunder).  Failure to so renew such letter of credit or
replace such letter of credit with a cash deposit in accordance with the above
provisions shall constitute an Event of Default under the Loan Documents and
shall entitle Lender to (A) draw upon such letter of credit for application
against the secured indebtedness (including the Prepayment Premium) and
(B) exercise any and all remedies Lender may have under the Loan Documents,
provided, however, that if the sole Event of Default is the failure to renew
such letter of credit or replace such letter of credit with a cash deposit in
accordance with the above provisions, then Lender’s exercise of remedies under
this clause (B) shall not commence until five (5) days have expired after
Lender’s delivery of written notice to Borrower of such failure, and Borrower
has continued to fail to renew such letter of credit, replace such letter of
credit or substitute a cash deposit within such five (5) day
period.  At all times during the term of the Loan, only one (1) cash
escrow or letter of credit shall be permitted to be outstanding and providing
security for the Loan (as replacement security for only one Individual Property
being released as security pursuant to this Section 6, Substitution of
Collateral); provided however, during the last twelve (12) months of the Loan
term, Lender shall permit two (2) cash escrows or letters of credit to be
outstanding and providing security for the Loan (as replacement security for
only two Properties being released as security pursuant to this Section 6,
Substitution of Collateral).  The Substitution Servicing Fee for a
Substitution of a cash escrow or letter of credit for an Old Security shall be
$25,000 (reduced to $15,000 if the Substitution is initiated in the last twelve
(12) months of the Loan), but Borrower shall not be required to pay the 0.5%
additional fee (described in (m) above) in connection with the Substitution of a
cash escrow or letter of credit for an Old Security.  If Borrower ever
requests that an Individual Property be substituted for an outstanding cash
escrow or letter of credit, Borrower must comply with all of the requirements
set forth in Section 6(a) through Section 6(o) above, but Borrower
shall not be required to pay a new $25,000 Substitution Servicing Fee and the
previously paid Substitution Servicing Fee shall be credited against the
additional 0.5% fee;  provided, however, if such Substitution of an
Individual Property for the cash escrow or letter of credit is not completed,
then Borrower must pay a $25,000 Substitution Servicing Fee for each subsequent
requested Substitution of an Individual Property for such outstanding cash
escrow or letter of credit and such additional Substitution Servicing Fee(s)
shall not be credited against the additional 0.5% fee described in (m)
above.

     

     

    
      
         

      

      
        -31-

        
          

        

      

      
         

      

    

    
 

    Cash and Letter of Credit
End of Term Options.  Notwithstanding anything to the contrary
above, (i) even if Borrower has completed a combined cumulative total of
two Releases and Substitutions (except if the Release is in accordance with the
conditions set forth in subsection (i) of Section 5 or if the Substitution
is in accordance with the conditions set forth in subsection (o) of this
Section 6); and (ii) provided Borrower has no more than one (1) other
cash escrow or other letter of credit outstanding, and (iii) it
is  during the last twelve (12) months of the Loan, then Borrower can
use a cash escrow or letter of credit to Release another Individual Property,
and then, subject to Borrower’s compliance with all of the above requirements,
Borrower shall be permitted to substitute a cash escrow or letter of credit for
an Old Security so long as such letter of credit shall be in form and substance
satisfactory to Lender, shall be issued by a bank satisfactory to Lender, and
shall have an initial term of at least twelve (12) months.

    

    The
amount of the cash escrow or letter of credit will be (i) 110% of the Loan
amount allocated to the Old Security, so long as the Loan to Value Ratio,
calculated with respect to the Real Estate Security, excluding the cash escrow
or letter of credit and excluding the Old Security, does not exceed forty-two
percent (42%), or, (ii) an amount such that at the time of the
Substitution, the Loan to Value Ratio, calculated with respect to the Real
Estate Security including the cash escrow or letter of credit but excluding the
Old Security, does not exceed forty-seven percent (47%).

     

     

    
      
         

      

      
        -32-

        
          

        

      

      
         

      

    

     

    
 

    Letter of Credit
Renewal.  So long as such letter of credit is providing
security for such Loan, it shall be regularly renewed at least 45 days prior to
its expiration date, with a renewal term of at least twelve (12) months;
provided that in the alternative Borrower shall be permitted to substitute a
cash deposit (which shall be held by Lender in an escrow account controlled by
Lender) at least 45 days prior to such expiration date (and Borrower may
thereafter substitute for such cash a letter of credit meeting the standards of
Lender hereunder).  Failure to so renew such letter of credit or
replace such letter of credit with a cash deposit in accordance with the above
provisions shall constitute an Event of Default under the Loan Documents and
shall entitle Lender to (i) draw upon such letter of credit for application
against the secured indebtedness (including the Prepayment Premium) and (ii)
exercise any and all remedies Lender may have under the Loan Documents;
provided, however, that if the sole Event of Default is the failure to renew
such letter of credit or replace such letter of credit with a cash deposit in
accordance with the above provisions, then Lender’s exercise of remedies under
this clause (ii) shall not commence until five (5) days have expired after
Lender’s delivery of written notice to Borrower of such failure, and Borrower
has continued to fail to renew such letter of credit, replace such letter of
credit or substitute a cash deposit within such five (5) day
period.

    

    Substitution
Processing.  Lender shall have at least sixty (60) days in
which to process any request to effect a Substitution after receipt of (1) all
materials and information necessary to evaluate such request and (2) the
Substitution Servicing Fee.

    

    Limits.  Except
for the additional cash escrow or letter of credit that may be posted during the
twelve (12) months prior to maturity, notwithstanding anything to the contrary
in this Section 6 and/or Section 5 (the Release of Properties
Section), Borrower shall only have the right to a combined cumulative total
(during the entire term of the Loan) of two (2) Substitutions and Releases,
except if the Release is in accordance with the conditions set forth in
subsection (i) of Section 5 or if the Substitution is in accordance with
the conditions set forth in subsection (o) of this
Section 6.  Substituting a cash escrow or letter of credit for an
Old Security shall count as one (1) of the two (2) permitted Substitutions
and/or Releases; however, the subsequent Substitution of a Individual Property
for an outstanding letter of credit shall not count as one (1) of the two (2)
permitted Substitutions and/or Releases.

    

    Section
7.                      CONVERSION
OPTION.  Intentionally
Omitted.  Borrower shall no longer have the “Conversion Option” set
forth in the Prior Loan Agreement.

    

    Section
8.                      LEASES.

    

    Section
8.1.                   Leasing
Standards Covenant.  Each Borrower shall comply with the
leasing standards and covenants set forth in each Assignment of
Rents.  Without limiting the foregoing, those tenants listed on Exhibit C-1
have noted that there is a claim of breach or default by the Borrower with
respect to the obligations of the landlord under the applicable Lease, and with
respect to each, Borrower shall take commercially reasonable efforts to comply
with and discharge all obligations of the landlord under such Leases, and upon
resolution of such claimed defaults, obtain from such parties replacement tenant
estoppels setting forth no claim of default.  Borrower will promptly
send Lender copies of any notices or other information sent or received with
respect to the foregoing.

     

     

    
      
         

      

      
        -33-

        
          

        

      

      
         

      

    

     

    
 

    Section
8.2.                      Existing
Leases.  Each Borrower represents and warrants that
the  Rent Roll attached hereto as Exhibit C
shows all Leases of the Properties as of the date hereof, and that such Rent
Roll shows all information required by the Application to be shown on the Rent
Roll.  All Leases (i) cover in the aggregate not less than
1,725,000 rentable square feet, with each lease having an original term of not
less than thirty-six (36) months, (ii) produce annualized base rent (but
excluding tenant payments for operating and fixed expenses, percentage rents,
and any other non-rental items) from tenants paying full rent, and not otherwise
in default, of not less than $38,300,000, and (iii) include the following
tenants: Prentice Hall, New Cingular Wireless, United Retail Inc., Movado Group
Inc., Morgan Stanley Smith Barney Financing LLC (formerly known as Citigroup
Global Markets Inc.), Mannkind Corp. and Syncsort Inc. (the “Major Tenants”),
each of which is paying full rent, and not in default.

    

    Section
8.3.                      Rent
Roll.  The form and format of Rent Roll attached hereto as
Exhibit C
shall be acceptable and permitted by Lender for the purposes of the requirement
of delivery of Rent Rolls under the Security Documents during the term of the
Loan.

    

    Section
8.4.                      SNDA
Agreements.  Lender agrees that, at the request of any Tenant
under a Lease arising after the date hereof and approved by Prudential (but not
a lease “deemed approved” by Prudential), Lender shall enter into subordination,
non-disturbance and attornment agreement substantially in the form attached
hereto as Exhibit F.

    

    Section
8.5.                      Lease
Form.  The standard form of Lease now in use with respect to
each of the Properties is attached hereto as Exhibit G.

    

    Section
8.6                      Parking
Compliance.  Borrower and
Guarantors acknowledge that certain of the Properties may not be in current
compliance with the parking requirements applicable under the zoning ordinances
applicable to such Properties (such Properties are known as Mack-Cali
Centre II and Mack-Cali Centre III).  Based on the receipt
of Certificates of Occupancy and other documentation, Borrower is under the
understanding that the Properties in fact comply in all material compliance with
all Laws (as defined in the Mortgages) applicable to the parking requirements
for such Properties;  in addition, without limiting the provisions of
Section 2.04(b) of the Mortgages, Borrower has received no notice of any
violation or potential violation of the Laws applicable to the parking
requirements for such Properties which has not been remedied or
satisfied.  Borrower and Guarantors hereby covenant and agree that,
without limiting the provisions of Section 3.05(c) of the Mortgages, that
if proceedings are initiated alleging, or Borrower receives notice, that it or
the Individual Property is not in compliance with the Laws applicable to the
parking requirements for such Properties (a “Parking Violation Notice”),
Borrower will promptly send Lender notice and a copy of the proceeding or
violation notice, and that if the Individual Property is not in compliance with
all Laws, and, without limiting the provisions of Section 3.05(c) of the
Mortgages, but subject to the Parking Contest Rights (as defined below) Borrower
and Guarantor shall undertake and shall be liable for the cost (the “Additional
Parking Cost”) to (i) build any additional parking spaces necessary to
comply with such Laws and/or (ii) as and if necessary to secure such
compliance, acquire any additional land necessary to provide such parking spaces
in compliance with Laws.  Borrower and Guarantors further agree that
liability of Borrower and Guarantor to pay the Additional Parking Cost shall be
recourse to Borrower and the Recourse Parties (as defined in the
Notes).  So long as no Event of Default is continuing, Borrower may,
prior to the deadlines applicable to any Parking Violation Notice and at its
sole expense, contest any Parking Violation Notice, but this shall not change or
extend Borrower’s obligation to comply with the Parking Violation Notice as
required above unless (A) Borrower gives Lender prior written notice of its
intent to contest the Parking Violation Notice;  (B) Borrower
demonstrates to Lender’s reasonable satisfaction that (1) the Individual
Property will not lose any rights or permits, including, but not limited to, any
existing certificates of occupancy or the right to secure building permits for
tenant improvements, prior to the final determination of the legal proceedings
relating to the Parking Violation Notice, (2) it has taken such actions as
are required or permitted to accomplish a stay of any such action referenced in
subsection (1) above, and (3) it has furnished to Lender such tenant
estoppel certificates as Lender may require (satisfactory to Lender in form and
amount) sufficient to assure Lender that the Major Tenants of such Individual
Property have no claim against Borrower under their Lease relating to the
matters addressed in the Parking Violation Notice;  (C) at
Lender’s option, Borrower has deposited the full amount necessary to pay the
Additional Parking Costs with Lender;  and (D) such proceeding
shall be permitted under any other instrument to which Borrower or the
Individual Property is subject (whether superior or inferior to this
Instrument).

     

     

    
      
         

      

      
        -34-

        
          

        

      

      
         

      

    

     

    
 

    Section
8.7     Tuttle
Fee Estate.  Borrower and
Guarantors acknowledge that with respect to the Property known as Mack-Cali
Centre III, the ownership of the landlord interest under the Ground Lease
(as defined in the Mortgage related to such Property), and the fee simple
interest of the land under the Ground Lease (the “Tuttle Fee”), is in question
on account of the death of Sam Tuttle, who had owned such interests as of the
original Loan to Borrower as of April 30, 1998.  Based on
information available to date, Borrower is advised that Catherine Taffuri has
received an assignment of rights under the Ground Lease, but that fee simple
ownership of the land demised under the Ground Lease most recently was vested in
Theda Carracic and Alan Tuttle, as owners of “Tract 1” (though Borrower is
advised that Theda Carracic has herself died), and The Tuttle Family Limited
Partnership, as owner of “Tract 2” (though Borrower is advised that this
partnership has dissolved as of March, 2009).  Accordingly, while
Catherine Taffuri has executed a ground landlord estoppel in connection with the
Loan, and Catherine Taffuri has executed a Joinder to the first priority
Mortgage with respect to the Property known as Mack-Cali Centre III (to
confirm the existing Joinder from 1998), it appears that the title to the Tuttle
Fee requires certain documentation to confirm that it is, in fact, vested in
Catherine Taffuri as of the date hereof.  Accordingly, Borrower and
Guarantors hereby covenant and agree that Borrower and Guarantors shall use
commercially reasonable efforts to determine who owns the Tuttle Fee, and obtain
from such parties replacement Joinders to the Mortgages with respect to the
Property known as Mack-Cali Centre III and replacement ground landlord
estoppels from such parties if other than Catherine Taffuri, with certification
from the Title Company that such parties are the owners of the Tuttle
Fee.  Borrower will promptly send Lender copies of any notices or
other information sent or received with respect to the foregoing.  In
the event that, upon foreclosure of the Mortgages with respect to the Property
known as Mack-Cali Centre III, any claim is made against Lender that the
wrong party has been paid under the Ground Lease applicable to the Tuttle Fee
and, on account thereof, the owner of the lessor interest in and to such Ground
Lease either makes demand for payment or exercises any remedy under such Ground
Lease, and Lender suffers any loss as a result thereof, Borrower and Guarantor
shall be liable for the amount of such loss (the “Tuttle Title Loss”), and shall
indemnify Lender from any such Tuttle Title Loss.  Borrower and
Guarantors further agree that liability of Borrower and Guarantor with respect
to the Tuttle Title Loss shall be recourse to Borrower and the Recourse Parties
(as defined in the Notes).

     

     

    
      
         

      

      
        -35-

        
          

        

      

      
         

      

    

    
 

    Section
9.     EVENTS OF DEFAULT;
ACCELERATION; ETC.

    

    Section 9.1.  Events of
Default.  The term “Event
of Default,” as used in this Agreement, shall mean the occurrence of any of the
events described in Section 6.01 of the Mortgages (and the term “Default”,
as used in this Agreement, shall mean the occurrence of any of such events,
without regard to any requirement of notice or whether any cure period is
required in order to constitute an Event of Default).  Any periods of
notice and cure set forth herein and in the other Loan Documents (or set forth
in more than one Loan Document) shall run concurrently, and not
consecutively.

    

    Section 9.2.  Acceleration
and Remedies.  If an Event of
Default shall occur, then, and in any such event, so long as the same may be
continuing, Lender may declare the entire balance of the Obligations (including
the entire principal balance thereof, all accrued and unpaid interest and any
prepayment premium and late charges thereon and all other such sums secured
hereby) to be immediately due and payable, and upon any such declaration the
entire unpaid balance of the Obligations shall become and be immediately due and
payable, without presentment, demand, protest, or further notice of any kind,
all of which are hereby expressly waived by each Borrower, anything in the Loan
Documents to the contrary notwithstanding.  In case any one or more of
the Events of Default shall have occurred and be continuing, and whether or not
Lender shall have exercised any of their rights under the Loan Documents, Lender
may proceed to protect and enforce the rights and remedies under this Agreement,
the Notes or any of the other Loan Documents by suit in equity, action at law or
other appropriate proceeding, whether for the specific performance of any
covenant or agreement contained in this Agreement and the other Loan Documents
or any instrument pursuant to which the Obligations to such Lender are
evidenced, including to the full extent permitted by applicable law, the
obtaining of the ex parte
appointment of a receiver.  No remedy herein conferred upon any Lender
is intended to be exclusive of any other remedy and each and every remedy shall
be cumulative and shall be in addition to every other remedy given hereunder or
now or hereafter existing at law or in equity or by statute or any other
provision of law.

    

    Section 9.3.  Distribution
of Collateral Proceeds.  In the event
that, following the occurrence or during the continuance of any Event of
Default, Lender receive any monies in connection with the enforcement of any of
the Security Documents, or otherwise with respect to the realization upon any of
the Collateral, such monies shall be distributed in accordance with the Loan
Documents to such portion of the Loans as Lender may desire.

     

     

    
      
         

      

      
        -36-

        
          

        

      

      
         

      

    

     

    
 

    Section
10.   REPRESENTATIONS
AND WARRANTIES.

    

    (a)           Exhibit H
sets forth the ownership structure of each Borrower and of Guarantor and the
percentage ownership of each constituent member and partner in each
Borrower.

    

    (b)           Borrowers
hereby certify to Lender that there have been none of the following matters
involving any Borrower, any general partner(s) of any Borrower, the Guarantor,
or any general partner(s) of the Guarantor within the period from
September 1, 1994 to the date hereof:

    

    
      	
              (i)

            	
              Litigation
      involving any lenders or financial institutions, including foreclosure
      actions;

            

    

    

    
      	
              (ii)

            	
              Deeds
      (or conveyances) in lieu of foreclosure, or sales (pursuant to power of
      sale);

            

    

    

    
      	
              (iii)

            	
              Petitions
      in bankruptcy or insolvency, or for reorganization, liquidation,
      dissolution, or for the appointment of a receiver, filed by or against any
      of the individuals or entities set forth above;
  or

            

    

    

    
      	
              (iv)

            	
              workouts
      or modifications of any loan in which the interest rate was changed, the
      principal amount was reduced or the loan term was
  extended.

            

    

    

    (c)           Borrowers
have heretofore furnished (i) financial statements of Borrower, consisting
of consolidated financial statements of MCRLP for the year ending
December 31, 2008, and (ii) financial statements of the Tenants
described in Section 8.2(1), (4) and (6), provided, that as to such
Tenants, such financial information includes only financial information on such
Tenants for the last three full fiscal years thereof to the extent Borrowers
have obtained or can obtain such information, and to the extent not obtained
prior to the date hereof, or, as to 2008 financial information not available as
of the date hereof, Borrowers shall obtain such financial information when such
financial information is available after Closing.

    

    (d)           Borrowers
hereby represent that, to its actual knowledge, all of the information submitted
or to be submitted by Borrowers to Lender in connection with the Application and
the Loan was, and as of the date hereof is, true, correct and complete in all
material respects.

    

    Section 11.  LOAN
BROKERS AND COMMISSIONS.  Neither any
Borrower nor Guarantor has engaged or used the services of any mortgage broker
in connection with the Loan.  Lender represent to Borrowers that they
have not engaged or used the services of any mortgage broker in connection with
the Loan.  Lender, on one hand, and Guarantor and Borrowers, on the
other hand, shall each indemnify and hold the other harmless against the payment
of any brokerage commissions or fees of any kind with respect to the Loan, and
for any legal fees or expenses incurred by the other in connection with any
claims for such commissions or fees by any person engaged, or claiming to have
been engaged, by the indemnifying party (and no Lender shall be liable for any
such obligation hereunder with respect to any mortgage broker or other person
claiming such rights or commissions on account of such person’s distribution of
loan solicitations or other materials with respect to any of the Properties or
such Lender’s receipt thereof).  Such indemnity shall not be subject
to the limitations on personal liability set forth in Section 3
hereof.

     

     

    
      
         

      

      
        -37-

        
          

        

      

      
         

      

    

     

    
 

    Section
12.    EFFECT OF
APPROVALS.  Any approval by
Lender of documents or materials submitted by any Borrower or by Guarantor shall
be for loan underwriting purposes only, and Borrowers and Guarantor acknowledge
that they are not in any way relying upon such approval for any purpose other
than satisfaction of the terms and conditions of the Application.  The
mere fact that the description of any document, report or other item required by
the Application sets forth certain information to be provided therein, does not
obligate Lender to approve the content of such information when it appears in
such document, report or other item.  Any such approvals are to be
relied upon by Lender only, and shall not constitute an assumption of liability
by Lender with respect to Guarantor, any Borrower, or any contractors,
architects, or engineers, or any present or future tenant, occupant or owner of
the Properties or any Individual Property.

    

    Section 13.   
NOTICES.  Any notice,
request, demand, consent, approval, direction, agreement, or other communication
(any “notice”) required or permitted under the Loan Documents shall be in
writing and shall be validly given if sent by a nationally-recognized courier
that obtains receipts, delivered personally by a courier that obtains receipts,
or mailed by United States certified mail (with return receipt requested and
postage prepaid) addressed to the applicable person as follows:

    

    
      	
              If
      to Borrower:

               

              c/o Mack-Cali
      Realty Corporation

              343 Thornall
      Street

              Edison,
      New Jersey  08837

              Attention:  Mitchell
      E. Hersh,

              President
      and Chief Executive Officer

               

            	 
      
	
              With
      a copy to notices sent to Borrower to:

               

              Mack-Cali
      Realty, L.P.

              c/o Mack-Cali
      Realty Corporation

              343 Thornall
      Street

              Edison,
      New Jersey  08837

              Attention:  Barry
      Lefkowitz,

              Executive
      Vice President and CFO

               

            	
              With
      a copy to notices sent to Borrower to:

               

              General
      Counsel

              Mack-Cali
      Realty Corporation

              343 Thornall
      St.

              Edison,
      New Jersey 08837

              Attention:  Roger
      W. Thomas

               

            
	
              If
      to Lender:

               

              THE
      PRUDENTIAL INSURANCE COMPANY OF AMERICA, and VPCM, LLC

              c/o Prudential
      Asset Resources, Inc.

              2100 Ross
      Avenue, Suite 2500

              Dallas,
      Texas   75201

              Attention:  Asset
      Management Department

              Reference
      Loan Nos. 706 108 235 - 706 108 241 and 706 108 265 - 706 108
      271

            	
              With
      a copy of notices sent to Lender to:

               

              THE
      PRUDENTIAL INSURANCE COMPANY OF AMERICA

              c/o Prudential
      Asset Resources, Inc.

              2100 Ross
      Avenue, Suite 2500

              Dallas,
      Texas   75201

              Attention:  Legal
      Department

              Reference
      Loan Nos. 706 108 235 - 706 108 241 and 706 108 265 - 706 108
      271

               

            

    

     

     

    
      
         

      

      
        -38-

        
          

        

      

      
         

      

    

     

    
 

    Each
notice shall be effective (i) upon delivery, if delivered in person,
(ii) one business day after having been deposited for overnight delivery
with a reputable overnight courier service, or (iii) three business days
after having been sent by U.S. registered or certified mail, postage
prepaid.  Refusal to accept delivery or the inability to deliver
because of a changed address for which no notice was given shall be deemed
receipt.  Any party may periodically change its address for notice
hereunder (and such change shall be applicable to all Loan Documents) and
specify up to two (2) additional addresses for copies by giving the other party
at least ten (10) days’ prior notice.

    

    Section
14.                      GOVERNING
LAW; CONSENT TO JURISDICTION AND SERVICE.  THIS AGREEMENT IS
A CONTRACTS UNDER THE LAWS OF THE STATE OF NEW JERSEY AND SHALL FOR ALL PURPOSES
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SUCH STATE
(EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF
LAW).  BORROWER AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS
AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW JERSEY OR ANY FEDERAL
COURT SITTING THEREIN AND CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF SUCH
COURT AND THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON BORROWER BY
MAIL AT THE ADDRESS SPECIFIED IN SECTION 13.  BORROWER HEREBY
WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH
SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT
COURT.

    

    Section
15.                      HEADINGS.  The captions in
this Agreement are for convenience of reference only and shall not define or
limit the provisions hereof.

    

    Section
16.                      RULES OF
INTERPRETATION.

    

    (a)           A
reference to any document or agreement shall include such document or agreement
as amended, modified or supplemented from time to time in accordance with its
terms and the terms of this Agreement.

    

    (b)           The
singular includes the plural and the plural includes the singular.

     

     

    
      
         

      

      
        -39-

        
          

        

      

      
         

      

    

     

    
 

    (c)           A
reference to any law includes any amendment or modification to such
law.

    

    (d)           A
reference to any Person includes its permitted successors and permitted
assigns.

    

    (e)           Accounting
terms not otherwise defined herein have the meanings assigned to them by
generally accepted accounting principles.

    

    (f)           The
words “include”, “includes” and “including” are not limiting.

    

    (g)           All
terms not specifically defined herein or by generally accepted accounting
principles, which terms are defined in the Uniform Commercial Code as in effect
in New Jersey, have the meanings assigned to them therein.

    

    (h)           Reference
to a particular “Section” refers to that section of this Agreement unless
otherwise indicated.

    

    (i)           The
words “herein”, “hereof “, “hereunder” and words of like import shall refer to
this Agreement as a whole and not to any particular section or subdivision of
this Agreement.

    

    (j)           The
covenants, warranties and agreements of Borrower herein shall be made jointly
and severally.  Such joint and several liability of each Borrower
shall not be affected, diminished or impaired by the dissolution, merger,
consolidation, insolvency or bankruptcy of either Person or any determination by
a court or tribunal of competent jurisdiction or otherwise that, as to either
Person, the obligations and liabilities of such Person hereunder and under the
Security Documents on the other documents and instruments executed in connection
herewith and therewith.

    

    Section
17.                      COUNTERPARTS.  This Agreement
and any amendment hereof may be executed in several counterparts and by each
party on a separate counterpart, each of which when so executed and delivered
shall be an original, and all of which together shall constitute one
instrument.  In proving this Agreement it shall not be necessary to
produce or account for more than one such counterpart signed by the party
against whom enforcement is sought.

    

    Section
18.                      CONSENTS,
AMENDMENTS, WAIVERS, ETC.  Except as
otherwise expressly provided in this Agreement, any consent or approval required
or permitted by this Agreement may be given, and any term of this Agreement or
of any other instrument related hereto or mentioned herein may be amended, and
the performance or observance by Borrowers of any terms of this Agreement or
such other instrument or the continuance of any Default or Event of Default may
be waived (either generally or in a particular instance and either retroactively
or prospectively) with, but only with, the written consent of
Lender.  No waiver shall extend to or affect any obligation not
expressly waived or impair any right consequent thereon.  No course of
dealing or delay or omission on the part of Lender in exercising any right shall
operate as a waiver thereof or otherwise be prejudicial thereto.  No
notice to or demand upon Borrowers shall entitle Borrowers to other or further
notice or demand in similar or other circumstances.

     

     

    
      
         

      

      
        -40-

        
          

        

      

      
         

      

    

     

    
 

    Section
19.                      SEVERABILITY.  The provisions of
this Agreement are severable, and if any one clause or provision hereof shall be
held invalid or unenforceable in whole or in part in any jurisdiction, then such
invalidity or unenforceability shall affect only such clause or provision, or
part thereof, in such jurisdiction, and shall not in any manner affect such
clause or provision in any other jurisdiction, or any other clause or provision
of this Agreement in any jurisdiction.

    

    Section
20.                      NO
UNWRITTEN AGREEMENTS.  The written Loan
Documents represent 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.

    

    Section
21.                      TIME OF
THE ESSENCE.  Time is of the
essence of this Agreement.

    

    Section
22.                      WAIVER OF JURY
TRIAL.  EACH OF BORROWERS, GUARANTORS AND LENDER HEREBY WAIVE,
TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM FILED BY EITHER PARTY, WHETHER IN CONTRACT,
TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN, THE DOCUMENTS,
OR ANY ACTS OR OMISSIONS OF LENDER OR BORROWER IN CONNECTION
THEREWITH.

    

    Section
23.                      Liability.  Guarantor’s
recourse liability under this Agreement shall be subject to the same limitations
and other provisions as are set forth in Paragraph 8 and Paragraph 9
of each applicable Note and as set forth in each applicable Irrevocable Guaranty
of Payment and Performance (Recourse Carveout Items), all of which terms and
provisions are incorporated herein by this reference, and, except to the extent
provided therein, Lender shall not enforce any deficiency judgment or personal
money judgment against Guarantor or any of its respective constituent partners,
or any of their respective officers, directors, agents, or shareholders with
respect to any of the liabilities or obligations arising hereunder.

     

     

    
      
         

      

      
        -41-

        
          

        

      

      
         

      

    

     

    
 

    IN WITNESS WHEREOF, the
undersigned have duly executed this Agreement as a sealed instrument as of the
date first set forth above.

    

    
      	 
      	
              GUARANTORS:

               

              MACK-CALI REALTY
      CORPORATION, a Maryland
      corporation

               

              By:
      /s/ Barry Lefkowitz

              Name: Barry
Lefkowitz

              Title:Executive Vice President
      and Chief Financial Officer

               

            
	 
      	
              MACK—CALI REALTY, L.P.,
      a Delaware limited partnership

               

              By:MACK-CALI
      REALTY CORPORATION, a Maryland corporation, General Partner

               

              By: /s/ Barry Lefkowitz

              Name:  Barry
      Lefkowitz

              Title:Executive Vice President
      and Chief Financial Officer

               

            

    

    

    
      	 
      	
              BORROWERS:

            
	 
      	
              MACK—CALI REALTY, L.P.,
      a Delaware limited partnership

               

              By:MACK-CALI
      REALTY CORPORATION, a Maryland corporation, General Partner

               

              By: /s/ Barry Lefkowitz

              Name:  Barry
      Lefkowitz

              Title:Executive Vice President
      and Chief Financial Officer

               

            

       

       

       

      
        
           

        

        
          -42-

          
            

          

        

        
           

        

      

       

       

       

       

      	 
      	
              MACK-CALI F PROPERTIES,
      L.P., a New Jersey limited partnership

               

              By:MACK-CALI
      SUB I, INC., a Delaware corporation, General Partner

               

              By: /s/ Barry Lefkowitz

              Name:  Barry
      Lefkowitz

              Title:Executive Vice President
      and Chief Financial Officer

               

            
	 
      	
              MACK-CALI CHESTNUT RIDGE
      L.L.C., a
      New Jersey limited liability company

               

              By:MACK-CALI
      REALTY, L.P., a Delaware limited partnership, Sole Member

               

              By:Mack-Cali Realty
      Corporation, a Maryland corporation, General Partner

               

              By: /s/ Barry Lefkowitz

              Name:  Barry
      Lefkowitz

              Title:  Executive
      Vice President and Chief Financial Officer

               

            

    

    
      
         

      

      
        -43-

        
          

        

      

      
         

      

    

    

    
      	 
      	
              LENDER:

               

              THE PRUDENTIAL INSURANCE
      COMPANY OF AMERICA, a New Jersey corporation

               

              By:  /s/ Melissa Farrell

              Name: Melissa
Farrell

              Title: Vice
President

               

               

            

    

    
      
         

      

      
        -44-

        
          

        

      

      
         

      

    

    

    
      	 
      	
              VPCM, LLC, a Virginia
      limited liability company

               

              By:PRUDENTIAL
      INVESTMENT MANAGEMENT, INC., a New Jersey corporation, as Investment
      Advisor

               

              By: /s/ Jocelyn Friel

              Name: Jocelyn Friel

              Title: Vice
      President

               

            

    

    
      
         

      

      
        -45-

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    BORROWERS

    

    The
Borrowers are listed below opposite the name and location of each Individual
Property:

    

    
      	
              Property

               

            	
              Borrower

            	
              Property
      Address

            
	
              Mack-Cali
      Saddle River

            	
              Mack—Cali
      Realty, L.P.

            	
              One
      Lake Street, Upper Saddle River, Bergen County, New
  Jersey

            
	
              Mack-Cali
      Centre I

            	
              Mack—Cali
      Realty, L.P.

            	
              365
      West Passaic Street, Rochelle Park, Bergen County, New
    Jersey

            
	
              Mack-Cali
      Centre II

            	
              Mack—Cali
      Realty, L.P.

            	
              1
      Mack-Cali Centre Drive, Paramus, Bergen County, New
  Jersey

            
	
              Mack-Cali
      Centre III

            	
              Mack—Cali
      Realty, L.P.

            	
              140
      East Ridgewood Avenue, Paramus, Bergen County, New
  Jersey

            
	
              Mack-Cali
      Centre IV

            	
              Mack—Cali
      Realty, L.P.

            	
              61
      South Paramus Road, Paramus, Bergen County, New Jersey

            
	
              Mack-Cali
      Centre VII

            	
              Mack-Cali F
      Properties, L.P.

            	
              15
      East Midland Avenue, Paramus, Bergen County, New Jersey

            
	
              Mack-Cali
      Corp. Center

            	
              Mack-Cali
      Chestnut Ridge L.L.C.

            	
              50
      Tice Blvd., Woodcliff Lake, Bergen County, New
  Jersey

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    LOAN
NUMBERS AND LOAN AMOUNTS

    

    

    
      	
              Property

               

            	
              Loan
      Number

            	
              Existing Loan
      Amount

            	
              Reallocation of Loan
      Amounts

            	
              New Loan
      Amount

            
	
              Mack-Cali
      Saddle River

            	
              706
      108 235 and 706 108 265

            	
              $35,550,000.00

            	
              $6,450,000.00

            	
              $42,000,000.00

            
	
              Mack-Cali
      Centre I

            	
              706
      108 236 and 706 108 266

            	
              $12,250,000.00

            	
              $0.00

            	
              $12,250,000.00

            
	
              Mack-Cali
      Centre II

            	
              706
      108 237 and 706 108 267

            	
              $25,600,000.00

            	
              ($2,100,000.00)

            	
              $23,500,000.00

            
	
              Mack-Cali
      Centre III

            	
              706
      108 238 and 706 108 268

            	
              $16,100,000.00

            	
              ($3,850,000.00)

            	
              $12,250,000.00

            
	
              Mack-Cali
      Centre IV

            	
              706
      108 239 and 706 108 269

            	
              $20,800,000.00

            	
              $2,200,000.00

            	
              $23,000,000.00

            
	
              Mack-Cali
      Centre VII

            	
              706
      108 240 and 706 108 270

            	
              $20,600,000.00

            	
              ($7,600,000.00)

            	
              $13,000,000.00

            
	
              Mack-Cali
      Corp. Center

            	
              706
      108 241 and 706 108 271

            	
              $19,100,000.00

            	
              $4,900,000.00

               

            	
              $24,000,000.00

            

    

    

    
      	
              Property

               

            	
              Pru Loan
      No.

            	
              VPCM Loan
      No.

            	
              Pru Loan
      Amount

            	
              VPCM Loan
      Amount

            
	
              Mack-Cali
      Saddle River

            	
              706
      108 235

            	
              706
      108 265

            	
              $22,400,000.00

            	
              $19,600,000.00

            
	
              Mack-Cali
      Centre I

            	
              706
      108 236

            	
              706
      108 266

            	
              $6,533,333.34

            	
              $5,716,666.66

            
	
              Mack-Cali
      Centre II

            	
              706
      108 237

            	
              706
      108 267

            	
              $12,533,333.34

            	
              $10,966,666.66

            
	
              Mack-Cali
      Centre III

            	
              706
      108 238

            	
              706
      108 268

            	
              $6,533,333.34

            	
              $5,716,666.66

            
	
              Mack-Cali
      Centre IV

            	
              706
      108 239

            	
              706
      108 269

            	
              $12,266,666.64

            	
              $10,733,333.36

            
	
              Mack-Cali
      Centre VII

            	
              706
      108 240

            	
              706
      108 270

            	
              $6,933,333.34

            	
              $6,066,666.66

            
	
              Mack-Cali
      Corp. Center

            	
              706
      108 241

            	
              706
      108 271

            	
              $12,800,000.00

            	
              $11,200,000.00ex102.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
10.2

    

    Loan
Nos. 706 108 235 - 706 108 241

    and 706
108 265 - 706 108 271

    

    Dated as
of January 15, 2010

    

    PARTIAL RECOURSE
GUARANTY

    (Prentice Hall Space and New
Cingular Wireless Space)

    

    FOR VALUE RECEIVED, the
receipt and sufficiency of which is hereby acknowledged, and in accordance with
the terms provided below, the undersigned, MACK-CALI REALTY, L.P., a
Delaware limited partnership (whether one or more, hereinafter together called
“Guarantor” in the
singular), absolutely and unconditionally guarantees and agrees to pay to THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA, a New Jersey corporation (“Prudential”), and VPCM, LLC, a Virginia limited
liability company (“VPCM”) (collectively hereinafter called “Lender”) at the address
designated in the Note (as hereinafter defined) for payment thereof or as such
address may be changed as provided in the Note or the Instrument, the Recourse
Guaranteed Amount (defined below) of the Obligations (defined below) of MACK—CALI REALTY, L.P., a
Delaware limited partnership, MACK-CALI F PROPERTIES L.P., a
New Jersey limited partnership, and MACK-CALI CHESTNUT RIDGE
L.L.C., a New
Jersey limited liability company (hereinafter collectively called “Borrower”), under the Note
(defined below) and other Documents (defined below), and absolutely and
unconditionally covenants and agrees with Lender pursuant to the terms of this
Partial Recourse Guaranty (hereinafter called “Guaranty”), as
follows:

    

    1.           As
used in this Guaranty, the term (i) “Documents” shall have the same
meaning as set forth in the Instrument (defined below), and including, but not
limited to, that certain Amended and Restated Loan Agreement dated of even date
herewith (the “Loan
Agreement”) by and among, inter alia, Lender and Borrower relating to
seven (7) cross-collateralized and cross-defaulted loans in the aggregate
principal amount of $150,000,000.00; (ii) “Obligations” shall have the
same meaning as set forth in the Instrument; (iii) “Note” shall mean the Notes as
defined in the Loan Agreement; (iv) “Instrument” shall mean the
Mortgages as defined in the Loan Agreement; (v) “Property” shall mean the
Properties as defined in the Loan Agreement; (vi) “Loan” shall have the same
meaning as set forth in the Loan Agreement; and (vii) “Costs” shall have the same
meaning as set forth in the Instrument.  Capitalized terms used herein
and not defined herein shall have the meaning ascribed to such terms in the
Instrument.  The following terms shall have the meanings set forth
below with respect to the applicable leases and spaces and the special terms of
this Guaranty:

    

    “Applicable Principal
Liability” with respect to the Loan shall be equal to the aggregate of
the Applicable Prentice Hall Principal Liability and the Applicable New Cingular
Wireless Principal Liability (as such terms are defined below).

    

    “Applicable Prentice Hall Principal
Liability” with respect to the Loan shall be equal to the following
amounts upon the occurrence of the conditions indicated:

    

    
      	
               
      

            	
              (A)

            	
              as
      of the Closing of the Loan, and until the occurrence of any condition in
      clauses (B) and (C) below and subject to clauses (C) and (D) below, the
      Applicable Prentice Hall Principal Liability shall be $0.00 (because as of
      the Closing of the Loan it is assumed by Borrower and Guarantor that
      Prentice Hall shall keep the Prentice Hall Lease in full force and effect
      and exercise the Prentice Hall Renewal on or before the Prentice Hall
      Renewal Deadline, and the terms of the Loan are expressly underwritten on
      such assumption and in consideration and reliance on the agreement by
      Borrower and Guarantor that they shall immediately incur the recourse
      liability set forth herein in the event that such event shall fail to
      occur);

            

    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (B)

            	
              from
      and after either (1) Prentice Hall advises Borrower or Lender that
      Prentice Hall will not be exercising the Prentice Hall Renewal, or
      (2) any relinquishment, termination, cancellation or other waiver of,
      or any failure of conditions precedent under the Prentice Hall Lease
      applicable to the right to exercise the Prentice Hall Renewal, or
      (3) any amendment, modification, termination or cancellation of the
      Prentice Hall Lease occurs prior to Prentice Hall’s exercise of the
      Prentice Hall Renewal and Borrower’s delivery of the Prentice Hall Renewal
      Documents to Lender to evidence such renewal (unless such is made or
      occurs with the prior written consent of Lender, which written consent
      specifically references this clause of this Guaranty and that the consent
      to the lease action does not trigger the liability under this clause), the
      Applicable Prentice Hall Principal Liability shall be $42,000,000;
      provided, however, that if a relinquishment, termination, amendment,
      modification or cancellation of the Prentice Hall Lease or other waiver of
      or any failure of conditions precedent under the Prentice Hall Lease
      applicable to the right to exercise the Prentice Hall Renewal as set forth
      in this subparagraph (B) that occurs by virtue of Prentice Hall rejecting
      the Prentice Hall Lease prior to the Prentice Hall Renewal Deadline after
      Prentice Hall files a petition in bankruptcy, then, notwithstanding any
      prior Applicable Prentice Hall Principal Liability arising under
      subclauses (1), (2) or (3) of this subparagraph (B), then the Applicable
      Prentice Hall Principal Liability shall be
  $0.00;

            

    

    

    
      	
               
      

            	
              (C)

            	
              assuming
      none of the events listed in subparagraph (B) above has theretofore
      occurred, and Prentice Hall has not previously exercised the Prentice Hall
      Renewal or Borrower has not delivered of the Prentice Hall Renewal
      Documents to Lender to evidence such renewal, then from and after
      April 30, 2013 (the Prentice Hall Renewal Deadline), the Applicable
      Prentice Hall Principal Liability shall be $42,000,000, unless and until
      Prentice Hall has exercised the Prentice Hall Renewal and Borrower has
      delivered the Prentice Hall Renewal Documents to Lender to evidence such
      renewal; and except that if Prentice Hall has exercised the Prentice Hall
      Renewal and Borrower has delivered the Prentice Hall Renewal Documents to
      Lender to evidence such renewal, all in accordance with the Prentice Hall
      Replacement Lease Requirements, with the sole exception being that the
      rental rate under the Prentice Hall Renewal is less than $12.00 per square
      foot on an annual basis on a Triple Net Rent Basis, but greater than $9.00
      per square foot on an annual basis on a Triple Net Rent Basis, then from
      and after such Prentice Hall Renewal the Applicable Prentice Hall
      Principal Liability shall be
$21,000,000;

            

    

    

    in each
case above, the Applicable Prentice Hall Principal Liability shall be without
reduction on account of amortization and/or prepayment of the Loan, but in the
event that Prentice Hall does not renew its lease, the Applicable Prentice Hall
Principal Liability shall be subject to reduction if and to the extent the
conditions set forth in Paragraph 26 hereof are satisfied as set forth
therein.

    

    “Applicable New Cingular Wireless
Principal Liability” with respect to the Loan shall be equal to the
following amounts upon the occurrence of the conditions indicated:

     

     

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (A)

            	
              as
      of the Closing of the Loan, and until the occurrence of any condition in
      clauses (B) and (C) below and subject to clauses (C) and (D) below, the
      Applicable New Cingular Wireless Principal Liability shall be $0.00
      (because as of the Closing of the Loan it is assumed by Borrower and
      Guarantor that New Cingular Wireless shall keep the New Cingular Wireless
      Lease in full force and effect and exercise the New Cingular Wireless
      Renewal on or before the New Cingular Wireless Renewal Deadline, and the
      terms of the Loan are expressly underwritten on such assumption and in
      consideration and reliance on the agreement by Borrower and Guarantor that
      they shall immediately incur the recourse liability set forth herein in
      the event that such event shall fail to
occur);

            

    

    

    
      	
               
      

            	
              (B)

            	
              from
      and after either (1) New Cingular Wireless advises Borrower or Lender
      that New Cingular Wireless will not be exercising the New Cingular
      Wireless Renewal, or (2) any relinquishment, termination,
      cancellation or other waiver of, or any failure of conditions precedent
      under the New Cingular Wireless Lease applicable to the right to exercise
      the New Cingular Wireless Renewal, or (3) any amendment,
      modification, termination or cancellation of the New Cingular Wireless
      Lease occurs prior to New Cingular Wireless’s exercise of the New Cingular
      Wireless Renewal and Borrower’s delivery of the New Cingular Wireless
      Renewal Documents to Lender to evidence such renewal (unless such is made
      or occurs with the prior written consent of Lender, which written consent
      specifically references this clause of this Guaranty and that the consent
      to the lease action does not trigger the liability under this clause), the
      Applicable New Cingular Wireless Principal Liability shall be $19,125,000;
      provided, however, that if a relinquishment, termination, amendment,
      modification or cancellation of the New Cingular Wireless Lease or other
      waiver of or any failure of conditions precedent under the New Cingular
      Wireless Lease applicable to the right to exercise the New Cingular
      Wireless Renewal as set forth in this subparagraph (B) occurs by virtue of
      New Cingular Wireless rejecting the New Cingular Wireless Lease prior to
      the New Cingular Wireless Renewal Deadline after New Cingular Wireless
      files a petition in bankruptcy, then, notwithstanding any prior Applicable
      New Cingular Wireless Principal Liability arising under subclauses (1),
      (2) or (3) of this subparagraph (B), then the Applicable New Cingular
      Wireless Principal Liability shall be
$0.00;

            

    

    

    
      	
               
      

            	
              (C)

            	
              assuming
      none of the events listed in subparagraph (B) above has theretofore
      occurred, and New Cingular Wireless has not previously exercised the New
      Cingular Wireless Renewal or Borrower has not delivered of the New
      Cingular Wireless Renewal Documents to Lender to evidence such renewal,
      then from and after June 30, 2012 (the New Cingular Wireless Renewal
      Deadline), the Applicable New Cingular Wireless Principal Liability shall
      be $19,125,000, unless and until New Cingular Wireless has exercised the
      New Cingular Wireless Renewal and Borrower has delivered the New Cingular
      Wireless Renewal Documents to Lender to evidence such renewal; and except
      that if New Cingular Wireless has exercised the New Cingular Wireless
      Renewal and Borrower has delivered the New Cingular Wireless Renewal
      Documents to Lender to evidence such renewal, all in accordance with the
      New Cingular Wireless Replacement Lease Requirements, with the sole
      exception being that the rental rate under the New Cingular Wireless
      Renewal is less than $10.00 per square foot on an annual basis on a Triple
      Net Rent Basis, but greater than $8.00 per square foot on an annual basis
      on a Triple Net Rent Basis, then from and after such New Cingular Wireless
      Renewal the Applicable New Cingular Wireless Principal Liability shall be
      $9,562,500;

            

    

     

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    
 

    in each
case above, the Applicable New Cingular Wireless Principal Liability shall be
without reduction on account of amortization and/or prepayment of the Loan, but
in the event that New Cingular Wireless does not renew its lease, the Applicable
New Cingular Wireless Principal Liability shall be subject to reduction if and
to the extent the conditions set forth in Paragraph 26 hereof are satisfied
as set forth therein.

    

    “New Cingular Wireless” means
New Cingular Wireless PCS, LLC, the sole tenant of the Individual Property known
as Mack-Cali Centre VII and the tenant of 52% of the space in Mack-Cali
Centre III.

    

    “New Cingular Wireless Full Release
Rental” means a minimum rental rate of not less than $10.00 per square
foot on an annual basis on a Triple Net Rent Basis.

    

    “New Cingular Wireless Half Release
Rental” means a minimum rental rate of not less than $8.00 per square
foot on an annual basis on a Triple Net Rent Basis, but less than the New
Cingular Wireless Full Release Rental.

    

    “New Cingular Wireless Lease”
means the lease or leases to New Cingular Wireless of the New Cingular Wireless
Space in Mack-Cali Centre VII and Mack-Cali Centre III.

    

    “New Cingular Wireless Renewal”
means that certain renewal option (that is effective as of January 1, 2014)
in accordance with the provisions of the New Cingular Wireless Lease with a
minimum five year extended term at the rental rates specified in the renewal
option of the New Cingular Wireless Lease.

    

    “New Cingular Wireless Renewal
Deadline” means June 30, 2012, the date on or before which the New
Cingular Wireless Renewal must be exercised by New Cingular Wireless, which date
shall not be extended for the purpose of this Guaranty even if such deadline may
be extended by mutual agreement with New Cingular Wireless and even if Lender
consents to such modification of the New Cingular Wireless Lease to effect such
extension, as any such consent by Lender shall not effect a consent to extension
of this deadline for the purpose of this Guaranty, except only that an extension
approved by Lender for purposes other than this Guaranty shall apply to this
Guaranty as well, but only if such extension is shorter than two months from the
existing New Cingular Wireless Renewal Deadline, or if longer than two months
from the existing New Cingular Wireless Renewal Deadline, such extension of this
deadline for the purpose of this Guaranty shall be only two months from the
existing New Cingular Wireless Renewal Deadline.

    

    “New Cingular Wireless Renewal
Documents” means (a) a certification from the applicable Borrower to
Lender, certifying that New Cingular Wireless has exercised its renewal option
in accordance with the provisions of the New Cingular Wireless Lease and that
the New Cingular Wireless Lease as so renewed is in full force and effect, along
with (b) a copy of the renewal notice fully executed by New Cingular
Wireless and (c) an estoppel certificate from New Cingular Wireless in the
form required by Lender in connection with closing of the Loan, but subject to
requirements of the New Cingular Wireless Lease, which estoppel certificate may
not disclose, and there may not exist any as of the date of, any uncured
defaults on the part of Borrower or New Cingular Wireless with respect to the
New Cingular Wireless Lease; all in form and substance reasonably acceptable to
Lender.

     

     

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    
 

    “New Cingular Wireless Replacement
Lease” is defined in Section 3.4(d) of the Loan
Agreement.

    

    “New Cingular Wireless Replacement
Lease Requirements” is defined in Section 3.4(d) of the Loan
Agreement.

    

    “New Cingular Wireless Space”
means the leasable area in the Individual Property known as Mack-Cali
Centre VII and 52% of the space in Mack-Cali Centre III.

    

    “Prentice Hall” means Prentice
Hall, Inc., the sole tenant of the Individual Property known as Mack-Cali Saddle
River.

    

    “Prentice Hall Full Release
Rental” means a minimum rental rate of not less than $12.00 per square
foot on an annual basis on a Triple Net Rent Basis.

    

    “Prentice Hall Half Release
Rental” means a minimum rental rate of not less than $9.00 per square
foot on an annual basis on a Triple Net Rent Basis, but less than the Prentice
Hall Full Release Rental.

    

    “Prentice Hall Lease” means the
lease to Prentice Hall of the Prentice Hall Space.

    

    “Prentice Hall Renewal” means
that certain renewal option (that is effective as of January 1, 2015) in
accordance with the provisions of the Prentice Hall Lease with a minimum five
year extended term at the rental rates specified in the renewal option of the
Prentice Hall Lease.

    

    “Prentice Hall Renewal
Deadline” means April 30, 2013, the date on or before which the
Prentice Hall Renewal must be exercised by Prentice Hall, which date shall not
be extended for the purpose of this Guaranty even if such deadline may be
extended by mutual agreement with Prentice Hall and even if Lender consents to
such modification of the Prentice Hall Lease to effect such extension, as any
such consent by Lender shall not effect a consent to extension of this deadline
for the purpose of this Guaranty, except only that an extension approved by
Lender for purposes other than this Guaranty shall apply to this Guaranty as
well, but only if such extension is shorter than two months from the existing
Prentice Hall Renewal Deadline, or if longer than two months from the existing
Prentice Hall Renewal Deadline, such extension of this deadline for the purpose
of this Guaranty shall be only two months from the existing Prentice Hall
Renewal Deadline.

    

    “Prentice Hall Renewal
Documents” means (a) a certification from the applicable Borrower to
Lender, certifying that Prentice Hall has exercised its renewal option in
accordance with the provisions of the Prentice Hall Lease and that the Prentice
Hall Lease as so renewed is in full force and effect, along with (b) a copy
of the renewal notice fully executed by Prentice Hall and (c) an estoppel
certificate from Prentice Hall in the form required by Lender in connection with
closing of the Loan, but subject to requirements of the Prentice Hall Lease,
which estoppel certificate may not disclose, and there may not exist any as of
the date of, any uncured defaults on the part of Borrower or Prentice Hall with
respect to the Prentice Hall Lease; all in form and substance reasonably
acceptable to Lender.

    

    “Prentice Hall Replacement
Lease” is defined in Section 3.4(c) of the Loan
Agreement.

     

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    
 

    “Prentice Hall Replacement Lease
Requirements” is defined in Section 3.4(c) of the Loan
Agreement.

    

    “Prentice Hall Space” means the
leasable area in the Individual Property known as Mack Saddle-Cali
River.

    

    “Recourse Guaranteed Amount”
shall mean the aggregate of:

    

    
      	
               
      

            	
              (A)

            	
              (i) a
      portion of the aggregate outstanding principal balance of the Loan equal
      to the Applicable Principal Liability (as hereinafter defined) whenever
      the aggregate outstanding principal balance of the Loan is in excess of
      the Applicable Principal Liability, or (ii) the entire aggregate
      outstanding principal balance of the Loan whenever the aggregate
      outstanding principal balance of the Loan is equal to or less than the
      Applicable Principal Liability, and

            

    

    

    
      	
               
      

            	
              (B)

            	
              all
      interest (including specifically Post-Petition Interest) accrued and
      unpaid on the Applicable Principal Liability from time to time,
      and

            

    

    

    
      	
               
      

            	
              (C)

            	
              the
      proportionate share derived by dividing the Applicable Principal Liability
      by the outstanding principal balance of the Loan of all other sums of any
      nature whatsoever other than principal or interest from time to time
      constituting part of the Loan, all of the above unaffected by modification
      thereof in any bankruptcy or insolvency proceeding nor by any
      determination, of whatever nature, that Lender may not have an allowed
      claim for the same against Borrower as a result of any bankruptcy or
      insolvency proceeding.

            

    

    

    “Triple Net Rent Basis” shall
mean lease rental payments whereby a tenant makes both monthly base rental
payments to the landlord and the tenant is responsible, in addition, to pay for
all taxes, insurance, utilities, operating and maintenance costs.  If,
for the purposes of the Loan, the rental under a lease is on another basis (such
as a gross rental basis whereby the landlord pays such costs), then the required
annual rental threshold for such lease must be “grossed up” to achieve the
necessary annual rental threshold on a Triple Net Rent Basis, after payment of
all expenses as aforesaid.  The parties agree to cooperate and act
reasonably in calculating any gross up required if the renewal is on a gross
basis: for example, for a lease that requires $12 per square foot on a Triple
Net Rent Basis, with monthly payments, and with the tenant to pay for all taxes,
insurance, utilities, operating and maintenance costs, if those “taxes,
insurance, utilities, operating and maintenance costs” equal $2 psf annually,
then the “gross rent” would need to be $14, so that the landlord could pay the
$2 in expenses, and net the $12 in rent on a Triple Net Rent
Basis.  For determination of the rental amount per square foot on an
annual basis, a lease shall be analyzed and averaged based on the total base
rental payments due over the currently effective term of the applicable lease
(not including unexercised extensions or renewals, or any portion of a rental
term after a termination option) less concessions (free rent and any other
discount, concession, payment, gift, allowance, payment or contribution), in
order to reflect the average effective rent paid and received over the term of
the lease.  For example, if a 25,000 square foot lease with a five
year term provides for rent as follows (the entire term of occupancy, including
free rent periods; initial construction periods would not be included in the
calculation of the term of occupancy of a lease for calculation of the term of
the lease or the averaging of the rentals over such term):  during
year one of $11.75 per square foot (with two month’s free rent), during year two
of $12.00 per square foot (with no free rent), during year three of $12.25 per
square foot (with no free rent), during year four of $12.50 per square foot
(with no free rent), and during year five of $12.75 per square foot (with one
month’s free rent), the total rent paid of $1,455,729.17 divided by 5 years
equals $291,145.83 or $11.65 per square foot.

     

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    
 

    

    This
Guaranty is intended to cover the risk that either (a) Prentice Hall, the
sole tenant of Mack-Cali Saddle River, fails to exercise the Prentice Hall
Renewal in accordance with the Prentice Hall Lease or (b) New Cingular
Wireless, the sole tenant of Mack-Cali Centre VII and tenant of 52% of the
space in Mack-Cali Centre III, fails to exercise the New Cingular Wireless
Renewal in accordance with the New Cingular Wireless Lease or (c) both fail
to exercise their renewals as aforesaid and suitable replacement tenants are not
found for the Prentice Hall Space and the New Cingular Wireless Space, as
applicable, in accordance with Paragraph 26 hereof.

    

    2.           Without
in any way limiting the liability of Guarantor under (x) that certain
Recourse Liabilities Guaranty in favor of Lender of even date herewith (the
“Recourse Liabilities
Guaranty”) or (y) that certain Environmental and ERISA Indemnity
Agreement made by Guarantor and Borrower in favor of Lender of even date
herewith (the “Environmental
Indemnity”), in the event Borrower fails to pay the Recourse Guaranteed
Amount, Guarantor shall upon written demand (not later than five (5) days after
written demand) of Lender promptly and with due diligence pay to and for the
benefit of Lender all of the Recourse Guaranteed Amount, and, in addition,
Guarantor further agrees to pay any and all Costs incurred or expended by Lender
in collecting any of the Recourse Guaranteed Amount or in enforcing any right
granted hereunder.

    

    3.           Guarantor’s
liability under this Guaranty shall be fully recourse and is expressly not
subject to, or limited by, any limitations on Borrower’s liability set forth in
the Note, and Guarantor agrees and acknowledges that Lender is relying upon the
full recourse nature of this Guaranty in making the Loan to
Borrower.  Further, the scope of this Guaranty shall in no way affect
or limit any liability of Guarantor (i) in its capacity as an “Recourse
Party” under Paragraphs 8 and 9 of the Note, (ii) in its capacity as a
guarantor under the Recourse Liabilities Guaranty, or (iii) in its capacity
as an “Indemnitor” under the Environmental Indemnity.

    

    4.           In
the event that Lender elects to foreclose, to accept a deed-in-lieu of
foreclosure under the Instrument or if the Review Period (as defined below)
shall pass without Lender commencing or completing a foreclosure proceeding and
thereby a Valid Tender is effected, Guarantor hereby acknowledges and agrees
that Guarantor’s recourse liability under this Guaranty as determined above
shall be calculated after deduction from the outstanding Obligations (including,
but not limited to, all principal, accrued interest, Prepayment Premium [as
defined in the Note], advances and other charges) of (i) the amount of
money bid by or received by Lender at a foreclosure sale, or (ii) the value
of the Property and any other property received by Lender as consideration for
acceptance of a deed-in-lieu of foreclosure.  With respect thereto and
any enforcement of this Guaranty that arises from and after the date on which
both (y) the Applicable Prentice Hall Principal Liability is greater than
zero ($0.00), or the Prentice Hall Renewal has been exercised by Prentice Hall
in accordance with the Prentice Hall Lease and Borrower has delivered the
Prentice Hall Renewal Documents to Lender to evidence such renewal and/or
suitable replacement tenants have been found for the Prentice Hall Space in
accordance with Paragraph 26 hereof, resulting in no possibility of
Applicable Prentice Hall Principal Liability arising hereunder, and (z) the
Applicable New Cingular Wireless Principal Liability is greater than zero
($0.00), or the New Cingular Wireless Renewal has been exercised by New Cingular
Wireless in accordance with the New Cingular Wireless Lease and Borrower has
delivered the New Cingular Wireless Renewal Documents to Lender to evidence such
renewal and/or suitable replacement tenants have been found for the New Cingular
Wireless Space in accordance with Paragraph 26 hereof, resulting in no
possibility of Applicable New Cingular Wireless Principal Liability arising
hereunder, or, if only one of the conditions contained in clauses (y) and (z)
has occurred, if Borrower issues a Deed in Lieu Schedule Applicable Principal
Liability Trigger Notice (thereby triggering both full Applicable Principal
Liability hereunder as set forth below in the definition of Deed in Lieu
Schedule Applicable Principal Liability Trigger Notice, and permitting Borrower
and Guarantor the option to commence the process set forth in the remainder of
this Section 4), Guarantor and Lender hereby agree as follows (and if both
(A) the Prentice Hall Renewal has been exercised by Prentice Hall in
accordance with the Prentice Hall Lease and Borrower has delivered the Prentice
Hall Renewal Documents to Lender to evidence such renewal and/or suitable
replacement tenants have been found for the Prentice Hall Space in accordance
with Paragraph 26 hereof or Prentice Hall has rejected the Prentice Hall
Lease prior to the Prentice Hall Renewal Deadline after Prentice Hall files a
petition in bankruptcy as set forth in subparagraph (B) of the definition
of Applicable Prentice Hall Principal Liability, resulting in no possibility of
Applicable Prentice Hall Principal Liability arising hereunder, and (B) the
New Cingular Wireless Renewal has been exercised by New Cingular Wireless in
accordance with the New Cingular Wireless Lease and Borrower has delivered the
New Cingular Wireless Renewal Documents to Lender to evidence such renewal
and/or suitable replacement tenants have been found for the New Cingular
Wireless Space in accordance with Paragraph 26 hereof or New Cingular
Wireless has rejected the New Cingular Wireless Lease prior to the New Cingular
Wireless Renewal Deadline after New Cingular Wireless files a petition in
bankruptcy as set forth in subparagraph (B) of the definition of Applicable
New Cingular Wireless Principal Liability, resulting in no possibility of
Applicable New Cingular Wireless Principal Liability arising hereunder, then the
following provisions of this Paragraph 4 shall have no further force or
effect):

     

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    
 

    
      	
              (a)

            	
              Deed in Lieu /
      Foreclosure Definitions.  The following terms shall have
      the meanings set forth below with respect to this Guaranty and such
      valuation:

            

    

    

    “Conveyance Date” means the
earliest to occur of: (i) the later of (a) the date on which title
vests in the purchaser at the foreclosure sale of the Property pursuant to the
Instrument, or (b) the date on which Borrower’s statutory right of
redemption shall expire or be waived; (ii) a Valid Tender Date; or
(iii) the date of Deed in Lieu Closing.

    

    “Deed in Lieu Agreement” means
an Agreement Regarding Transfer in Lieu of Foreclosure between, on the one hand,
Borrower and Guarantor (as defined in the Loan Agreement), and, on the other,
Lender, in form and substance acceptable to Lender, duly executed and delivered
by the parties thereto, which Agreement shall set forth true, correct and
complete copies of the Deed in Lieu Schedule and the forms of the Deed in Lieu
Documents, as the same have been approved by Lender.

    

    “Deed in Lieu Schedule” means
schedules prepared by Borrower, in form and substance reasonably acceptable to
Lender, which schedules shall be certified by a representation and warranty of
Borrower (to the best knowledge of Borrower after inquiry of Borrower’s
management and leasing personnel regarding the information below) as containing
true, correct and complete of the following information:

     

    
      	
              (i)  

            	
              Rent
      Rolls for the Property;

            

    

     

    
      	
              (ii)  

            	
              lists
      of all Leases and all amendments, modifications, subleases, consents,
      waivers, assignments and subleases with respect thereto (copies of which
      must be delivered to Lender in connection therewith, together with
      Borrower’s current “bible” abstracts for each lease, with originals to be
      delivered to Lender upon any Deed in Lieu
  Closing);

            

    

     

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

     

    
      	
              (iii)  

            	
              lists
      of all contracts relating to the Property and all amendments,
      modifications, consents, waivers and assignments with respect thereto
      (copies of which must be delivered to Lender in connection therewith, with
      originals to be delivered to Lender upon any Deed in Lieu
      Closing);

            

    

     

    
      	
              (iv)  

            	
              lists
      of any and all uncured notices of violation of any law, regulation,
      ordinance, lease, contract, covenant, condition or insurance policy
      received by Borrower, together with a true, correct and complete copy
      thereof; and

            

    

     

    
      	
              (v)  

            	
              lists
      of any and all unpaid existing or future obligations to tenants, together
      with copies of all documents (contracts, bids, budgets, proposals) related
      thereto, with originals to be delivered to Lender upon any Deed in Lieu
      Closing;

            

    

     

    
      	
              (vi)  

            	
              an
      inventory of all books and records of Borrower or Guarantor with respect
      to the Property to the extent not included in the foregoing items;
      and

            

    

     

    
      	
              (vii)  

            	
              such
      other information with respect to the Property as Lender may reasonably
      require.

            

    

    

    “Deed in Lieu Agreement
Deliveries” means the execution and delivery of the Deed in Lieu
Agreement by Borrower and Lender, together with any deliveries to be made
thereunder as of the execution and delivery thereof.

    

    “Deed in Lieu Foreclosure Analysis
Period” means the period of time from the date of an Event of Default
until ninety (90) days thereafter, during which Lender shall review the items
Lender requires in a remedial or enforcement action, including, but not limited
to, those items to be delivered in Deed in Lieu Schedule Deliveries in order to
confirm the completion and accuracy thereof, and any other information that
Lender is entitled to review under the Loan Document or with respect to any
remedial or enforcement action.

    

    “Deed in Lieu Schedule
Deliveries” means the following items to be delivered to Lender in
connection with the Deed in Lieu Schedule:

     

    
      	
              (i)  

            	
              a
      written certification from Borrower in favor of Lender consistent with
      Section 3.16 of the Instrument, duly executed and delivered, and
      completed with all information to be set forth as described therein, with
      true, correct and complete copies of applicable attachments;
      and

            

    

     

    
      	
              (ii)  

            	
              true,
      correct and complete copies of all items disclosed on the schedules to the
      Deed in Lieu Schedule; and

            

    

     

    
      	
              (iii)  

            	
              if
      applicable, a Deed in Lieu Schedule Applicable Principal Liability Trigger
      Notice.

            

    

    

    On or
before fifteen (15) days after delivery of the Deed in Lieu Schedule Deliveries
to Lender, Lender shall deliver to Borrower and Guarantor drafts of the Deed in
Lieu Agreement and the Deed in Lieu Documents.

    

    “Deed in Lieu Schedule Applicable
Principal Liability Trigger Notice” means that Borrower has duly executed
and delivered to Lender in writing a notice setting forth that (a) if the
Applicable Prentice Hall Principal Liability is then zero ($0.00) as set forth
above solely because the Prentice Hall Renewal Deadline has not yet occurred
(and not because of a relinquishment, termination, amendment, modification or
cancellation of the Prentice Hall Lease or other waiver of or any failure of
conditions precedent under the Prentice Hall Lease applicable to the right to
exercise the Prentice Hall Renewal as set forth in subparagraph (B) of the
definition of Applicable Prentice Hall Principal Liability that occurs by virtue
of Prentice Hall rejecting the Prentice Hall Lease prior to the Prentice Hall
Renewal Deadline after Prentice Hall files a petition in bankruptcy), that from
and after such notice, the Applicable Prentice Hall Principal Liability shall be
$42,000,000, as if one of the circumstances set forth in clause (B)(1), (2) or
(3) of the definition of Applicable Prentice Hall Principal Liability has
occurred, but subject to reduction thereafter prior to payment pursuant to the
terms of subparagraph (C) of such definition and/or Paragraph 26 below, and
(b) if the Applicable New Cingular Wireless Principal Liability is then
zero ($0.00) as set forth above solely because the New Cingular Wireless Renewal
Deadline has not yet occurred (and not because of a relinquishment, termination,
amendment, modification or cancellation of the New Cingular Wireless Lease or
other waiver of or any failure of conditions precedent under the New Cingular
Wireless Lease applicable to the right to exercise the New Cingular Wireless
Renewal as set forth in subparagraph (B) of the definition of Applicable
New Cingular Wireless Principal Liability occurs by virtue of New Cingular
Wireless rejecting the New Cingular Wireless Lease prior to the New Cingular
Wireless Renewal Deadline after New Cingular Wireless files a petition in
bankruptcy), that from and after such notice, the Applicable New Cingular
Wireless Principal Liability shall be $19,125,000, as if one of the
circumstances set forth in clause (B)(1), (2) or (3) of the definition of
Applicable New Cingular Wireless Principal Liability has occurred, but subject
to reduction thereafter prior to payment pursuant to the terms of subparagraph
(C) of such definition and/or Paragraph 26 below.

     

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    
 

    “Deed in Lieu Closing” means
the closing of the conveyance of the Property to Lender or Lender’s designee by
Borrower in lieu of foreclosure pursuant to a Deed in Lieu Agreement and Deed in
Lieu Closing Deliveries.

    

    “Deed in Lieu Closing
Deliveries” means the following items to be delivered to Lender in
connection with a Deed in Lieu Closing:

     

    
      	
              (i)  

            	
              the
      Deed in Lieu Documents;

            

    

     

    
      	
              (ii)  

            	
              to
      the extent in Borrower’s possession or control (and any items not in
      Borrower’s possession or control must be noted in connection with the Deed
      in Lieu Agreement), all original documents, including all leases,
      contracts, books and records and other items scheduled in the Deed in Lieu
      Agreement, or to be scheduled in the Deed in Lieu Agreement pursuant to
      the definition thereof, together with all keys and codes for security,
      maintenance and operating systems at or for the
  Property;

            

    

     

    
      	
              (iii)  

            	
              issuance
      of Owner’s Title Insurance Policies in the name of Lender or Lender’s
      designee (and, if and to the extent permitted by First American Title
      Insurance Company, Lender shall endeavor to have such insurance issued at
      “reissue” rates), subject to no liens, exceptions or encumbrances not
      previously approved in writing by Lender or permitted without Lender’s
      consent pursuant to the Loan documents (title to the Property must be in
      the same condition as approved by Lender on the date hereof, as evidenced
      by Lender’s mortgagee title insurance policy, subject only to subsequent
      liens and encumbrances previously approved by Lender or permitted without
      Lender’s consent pursuant to the Instrument, and only to the extent in
      compliance with the Documents and the Deed in Lieu Agreement), and
      endorsement of the existing Mortgagee Title Insurance Policies to update
      the status of title thereunder, and to add “non-merger” endorsements
      acceptable to Lender (insuring that the Deed in Lieu Closing and Deed in
      Lieu Documents have not merged with the Instrument, and that the
      Instrument remains a valid lien on the Property);
  and

            

    

     

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

     

     

    
      	
              (iv)  

            	
              any
      other items reasonably required by Lender or Lender’s title insurance
      company, including, but not limited to, any lien waivers, lien releases,
      contractor’s affidavits or similar items required to cure any outstanding
      title matters.

            

    

    

    Lender
shall be relying on the Deed in Lieu Schedule Deliveries, the Deed in Lieu
Agreement, the Deed in Lieu Documents and the Deed in Lieu Closing Deliveries,
and, accordingly, Borrower and Guarantor shall have liability for the
representations, warranties and covenants of Borrower and Guarantor as therein
set forth, subject to any limitations thereon as may be set forth therein (and
the survival period for representations and warranties thereunder, other than
the Covenant Against Grantor’s Acts in the Deed, shall be limited to one (1)
year).

    

    “Deed in Lieu Documents” means
the following documents to be delivered at the Deed in Lieu Closing by Borrower
and/or Guarantor to Lender or Lender’s designee in connection with a transfer in
lieu of foreclosure, all in form and substance acceptable to Lender, and all
duly executed and delivered by the applicable parties thereto (and, at Lender or
Lender’s designee’s option, the following items (with the exception of the Deed
in Lieu Guaranty Payment) that are to be executed and delivered by Borrower
and/or Guarantor shall be deposited into an escrow with Lender’s attorney during
the Review Period upon or after execution and delivery of the Deed in Lieu
Agreement):

     

    
      	
              (i)  

            	
              a
      Bargain and Sale Deed (with Covenant Against Grantor’s Acts) conveying
      good and marketable title to the Property to Lender, together with an
      affidavit of consideration and any other documents necessary to complete
      the conveyance and confirm the amount of any transfer tax (including a
      RTF-1 form and Seller’s Residency Certification/Exemption form, and Lender
      shall execute the RTF-1EE Affidavit of
  Consideration);

            

    

     

    
      	
              (ii)  

            	
              a
      Bill of Sale conveying title to the personal property covered by the
      Instrument;

            

    

     

    
      	
              (iii)  

            	
              an
      Assignment of Contracts conveying Borrower’s interest in all contracts
      relating to the Property, which shall be specified in such assignment and
      each of which shall be subject to the approval of
  Lender;

            

    

     

    
      	
              (iv)  

            	
              a
      Non-Foreign Affidavit of each party conveying real
    property;

            

    

     

    
      	
              (v)  

            	
              Notices
      to Tenants and Contract Parties with respect to such
      conveyance;

            

    

     

    
      	
              (vi)  

            	
              Title
      Affidavits and Gap Indemnities as required by the Title Insurance Company
      in connection with the issuance, or endorsement, of the applicable Title
      Insurance Policies;

            

    

     

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

     

    
      	
              (vii)  

            	
              Evidence
      of Authority of each Borrower and
Guarantor;

            

    

     

    
      	
              (viii)  

            	
              Termination
      of all Management Agreements and other contracts not approved by
      Lender;

            

    

     

    
      	
              (ix)  

            	
              Agreement
      Regarding Value with respect to the value of the
  Property;

            

    

     

    
      	
              (x)  

            	
              the
      Deed in Lieu Guaranty Payment, determined as of the Conveyance
      Date;

            

    

     

    
      	
              (xi)  

            	
              a
      full Release of Lender, and, upon completion of the Deed in Lieu Closing,
      a Release of Guarantor in favor of Guarantor and a Covenant Not to Sue in
      favor of Borrower (each subject to the surviving obligations of Borrower
      and Guarantor under the Deed in Lieu Agreement and the Deed in Lieu
      Documents);

            

    

     

    
      	
              (xii)  

            	
              an
      agreement setting forth confirmation of the absolute nature of the
      conveyance, together with a legal opinion with respect thereto and the
      conveyance.

            

    

     

    
      	
              (xiii)  

            	
              payment
      of closing costs (any transfer tax, lien searches, title costs and
      premiums and inspection costs, appraisal costs, costs of physical and
      environmental inspections, and Lender’s reasonable attorneys fees);
      provided, however, if and to the extent permitted by the title insurance
      company issuing the owner’s policy of title insurance and available at a
      discount to two owner’s policies of title insurance, Lender shall endeavor
      to have the owner’s policy of insurance issued at as an “open commitment”,
      pursuant to which such commitment commits (for a period of not less than
      two years) to insure both (A) the transfer of title to the Property
      at the Deed in Lieu Closing, and (B) the subsequent transfer to a
      third party buyer, with Borrower responsible for 50% of such premium for
      such “open” commitment in such
event;

            

    

     

    
      	
              (xiv)  

            	
              any
      other documents to be delivered at closing under the Deed in Lieu
      Agreement or the Deed in Lieu Schedule;
and

            

    

     

    
      	
              (xv)  

            	
              any
      other documents reasonably required by Lender or Lender’s title insurance
      company.

            

    

    

    “Deed in Lieu Guaranty Payment”
means payment of the amounts due under the Recourse Carveout Guaranties (as
defined in the Loan Agreement) and this Guaranty as of the Conveyance
Date.

    

    “Review Period” means the
period of time from the date of the Tender and concluding on the later of
(a) if Lender commences a foreclosure action with respect to the Property
by the end of the Deed in Lieu Foreclosure Analysis Period, the period of two
hundred seventy (270) days after the end of the Deed in Lieu Foreclosure
Analysis Period, or (b) if Lender does not commence a foreclosure action
with respect to the Property by the end of the Deed in Lieu Foreclosure Analysis
Period, ninety (90) days after the date of the Tender; provided that in either
event the Review Period shall end as of the date of acceptance of the Tender by
Lender or Lender’s designee as evidenced by the execution and delivery of the
Deed in Lieu Agreement by Borrower, Guarantor and Lenders, including tender by
Borrower and Guarantors of the Deed in Lieu Agreement Deliveries.

     

     

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    
 

    “Tender” means the tender by
Borrower and Guarantors of the Deed in Lieu Schedule Deliveries (including all
of the items described therein).

    

    “Valid Foreclosure Cooperation”
means (x) Borrower shall not voluntarily cause or create any liens on the
Property, (y) there shall be no contest, delay, or other hindrance or
opposition by Borrower, Guarantor or any affiliate thereof (nor any collusion by
Borrower, Guarantor or any affiliate thereof with any third party in any
contest, delay, or other hindrance or opposition) to any of Lender’s remedial or
enforcement actions in accordance with the Loan Documents, including, but not
limited to, foreclosure and placing a receiver to operate the Property, and no
failure, within two (2) business days, to consent to any remedial or enforcement
action in accordance with the Loan Documents proposed by Lender in writing, nor
any breach or violation by Borrower or Guarantor of any orders or interim
agreements entered into in such remedial or enforcement actions, and
(z) Borrower shall not be or become a debtor in any bankruptcy proceeding
or the subject of any other insolvency proceeding (other than a bankruptcy or
other insolvency proceeding commenced by Lender or any of their
Affiliates).

    

    “Valid Tender” means either of
(the first to occur of) (A) (i) a Tender, and (ii) the passage of
the Review Period, during which period there shall be no breach of the Valid
Foreclosure Cooperation condition, or (B) the execution and delivery of the
Deed in Lieu Agreement by Borrower, Guarantor and Lenders, including tender by
Borrower and Guarantors of the Deed in Lieu Agreement Deliveries, provided that
from and after such date an until Deed in Lieu Closing there shall be no breach
of the Valid Foreclosure Cooperation condition.

    

    “Valid Tender Date” means the
date on which a Tender becomes a Valid Tender.

    

    
      	
              (b)

            	
              Due Diligence
      Review.  Lender or Lender’s designee shall have the
      Review Period to accept or reject a Deed in Lieu Closing, in order to
      enable Lender or Lender’s designee to conduct all due diligence with
      respect to the Property and the Deed in Lieu Closing that Lender or
      Lender’s designee may require, including, but not limited to, review of
      title to the Property, analysis of the leasing of the Property, physical
      inspection of the Property, evaluation of any construction work in
      progress (and documentation of the status thereof, including the remaining
      scope of work and outstanding payments thereunder), obtaining an
      environmental assessment of the Property, obtaining such estoppels from
      tenants or contract parties as Lender may require, review, inspect and
      audit of the books and records of the Property, and an appraisal of the
      Property, as determined by the MAI appraiser in accordance
      herewith.  Lender shall order an appraisal to be completed
      within ninety (90) days of a Tender, subject to updating as of the
      Conveyance Date if desired by Lender.  If Lender or Lender’s
      designee reject a Deed in Lieu Closing on account of any items disclosed
      in such review, then the Tender shall be deemed to be rejected and Lender
      shall have no obligation to accept the transfer in lieu of foreclosure,
      but a Valid Tender shall remain a Valid Tender despite such rejection, and
      in such event the value of the Property as set forth in Lender’s MAI
      appraisal of the Property shall be adjusted by the impact of such matters
      discovered in such due diligence review, as determined by the MAI
      appraiser.

            

    

    

    
      	
              (c)

            	
              Tax and Assessment
      Obligations.  Borrower’s and Guarantor’s liability for
      the payment of taxes and assessments under Section 8(b) of the Note
      (including the pro-rata share of then current real estate taxes and
      assessments) shall cease as to taxes and assessments that arise or accrue
      from and after the ninety (90) days after the date of the Tender, but only
      if there shall be no breach of the Valid Foreclosure Cooperation condition
      from and after the date of the
Tender.

            

    

     

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

    
 

    
      	
              (d)

            	
              Reduction of
      Applicable Principal Liability.  From and after the Valid
      Tender Date, Lender agrees that if Lender collects amounts under the Cash
      Management Agreement (as defined in the Loan Agreement) and applies such
      amounts to reduce the principal balance of the Obligations, then, so long
      as there shall be no breach of the Valid Foreclosure Cooperation
      condition, the Applicable Principal Liability shall be reduced, on a
      dollar for dollar basis, by the amounts so allocated to the reduction of
      the principal balance of the Obligations, such amounts to be allocated on
      a pro rata basis between the Applicable Prentice Hall Principal Liability
      and the Applicable New Cingular Wireless Principal Liability, if
      applicable.

            

    

    

    
      	
              (e)

            	
              Recourse Guaranteed
      Amount.  Notwithstanding any provision contained or
      implied herein to the contrary, Lender and Guarantor agree that the
      Recourse Guaranteed Amount which may become due under this Guaranty shall
      be determined and fixed as of the Conveyance Date (and projected, as
      necessary to as of the Conveyance Date).  Such amount shall be
      paid to Lender as of the following, as applicable, the date of Deed in
      Lieu Closing, or, if there is no Deed in Lieu Closing, promptly after
      demand of Lender on or after the Valid Tender Date (if the Valid Tender
      Date is established by a method other than the date of the Deed in Lieu
      Closing), and Guarantor’s payment to Lender of such determined and fixed
      Recourse Guaranteed Amount shall constitute Guarantor's performance in
      full of its obligations under this
Guaranty.

            

    

    

    
      	
              (f)

            	
              Default
      Interest.  From and after ninety (90) days after the date
      of the Tender, but only if there shall be no breach of the Valid
      Foreclosure Cooperation condition from and after the date of the Tender,
      Lender agrees that Lender shall forebear from collection of Default
      Interest and shall instead require payment of only base interest;
      provided, however, if at any time such conditions fail, then all such
      Default Interest shall be reinstated and the forbearance shall
      terminate.

            

    

    

    
      	
              (g)

            	
              Operating Expenses
      Required for Lease Compliance.  From and after ninety
      (90) days after the date of an Event of Default (and provided Borrower has
      made a Tender to Lender within such ninety (90) day period), but only if
      there shall be no breach of the Valid Foreclosure Cooperation condition
      from and after the date of the Tender, Lender agrees that provided that,
      and for so long as, Lender or a receiver selected by Lender receives and
      controls all of the Property revenue through the cash management system
      set forth in the Cash Management Agreement or other collection mechanism
      approved by Lender in Lender’s sole discretion, then Lender or such
      receiver shall apply such revenue towards the payment of such operating
      expenses related to ongoing property operation to the extent sufficient to
      meet the operating expense recommendations of the receiver selected by
      Lender or, if a receiver has not been appointed, the operating expense
      recommendations of the property manager engaged by Lender, and provided
      that revenue from the Property is sufficient to fund such utilities and
      operating expenses.  If Borrower and Guarantor believe that any
      utilities or operating expenses should be paid in excess of those for
      which Lender has provided funding as set forth above during such period,
      Borrower and Guarantor may provide Lender with written notice requesting
      such funding of additional expenses, which Lender shall consider and shall
      deliver to such receiver or property manager, as
    applicable.

            

    

     

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    
 

    5.           In
the event that Lender accepts a deed-in-lieu of foreclosure, the value of the
Property and any other property received by Lender shall be conclusively
determined by an independent MAI appraiser, selected by Lender in its sole
discretion, having not less than five (5) years’ experience in appraising
commercial real estate in the area where the Land is located, unless in
connection with such acceptance of such deed-in-lieu of foreclosure Lender
agrees to an alternate valuation.  The fees and costs of said MAI
appraiser shall be paid by Borrower.

    

    6.           Guarantor’s
recourse liability under this Guaranty shall continue with respect to any and
all Obligations, but only up to the Recourse Guaranteed Amount, until Lender has
been paid the full amount of the Obligations from any person or
entity at the time of foreclosure or following an Event of Default; provided,
however, that Guarantor’s recourse liability under this Guaranty shall be in
addition to, and not in lieu of, any liability or obligations of Guarantor under
any other document or other instrument delivered by Guarantor in connection with
the Loan.  Guarantor agrees that no portion of any sums applied, from
time to time, in reduction of the Loan (other than sums paid by Guarantor
pursuant to the provisions of this Guaranty after demand therefore from Lender)
shall be deemed to have been applied in reduction of the Recourse Guaranteed
Amount until such time as that portion of the Loan which is not the Recourse
Guaranteed Amount has been paid in full, it being the intention hereof that the
Recourse Guaranteed Amount shall be the last portion of the Loan to be paid and
that this Guaranty shall remain in full force and effect and shall not be deemed
discharged until the date upon which all of the obligations and liabilities of
Guarantor under this Guaranty shall have been performed and discharged by
Guarantor in accordance with the provisions of this
Guaranty.  Guarantor hereby acknowledges and agrees that Lender shall
have the option of pursuing either or both of the following
options:

    

    
      	
               
      

            	
              (i)

            	
              In
      the event Lender elects to foreclose under any applicable Instrument or to
      accept a deed in lieu of foreclosure thereunder, Guarantor hereby
      acknowledges and agrees that Guarantor’s recourse liability as determined
      above shall be calculated after deducting from the outstanding
      indebtedness (including, but not limited to, all principal, accrued
      interest, Prepayment Premium, advances and other charges) (A) in the
      event Lender elects to foreclose, the amount of money bid by or received
      by Lender at a foreclosure sale, or (B) in the event Lender elects to
      accept a deed in lieu of foreclosure, the value of the Property and any
      other property received by Lender as consideration for acceptance of a
      deed in lieu of foreclosure, as agreed upon by Lender and Guarantor in
      connection therewith (or as determined by the independent MAI appraiser
      referred to in Paragraph 5 above);
and/or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Guarantor
      hereby acknowledges and agrees that Lender shall have the right to seek
      collection of the recourse portion of the Loan under this Guaranty (which
      shall not exceed the Recourse Guaranteed Amount) from Guarantor without
      the commencement of any foreclosure
proceedings.

            

    

    

    7.           Guarantor's
recourse liability for the Recourse Guaranteed Amount (which amount may be zero
from time to time, and may be reduced to zero pursuant to Paragraph 26 of
this Guaranty) shall continue until Lender has been paid in full.

    

    8.           Guarantor
expressly waives presentment for payment, demand, notice of demand and of
dishonor and nonpayment of the Obligations, notice of intention to accelerate
the maturity of the Obligations or any part thereof, notice of disposition of
collateral, notice of acceleration of the maturity of the Obligations or any
part thereof, protest and notice of protest, diligence in collecting, and the
bringing of suit against any other party.  Guarantor agrees that
Lender shall be under no obligation to: (i) notify Guarantor of its
acceptance of this Guaranty or of any advances made or credit extended on the
faith of this Guaranty; (ii) notify Guarantor of Borrower’ s failure to
make payments due under the Note as it matures or the failure of Borrower to pay
any of the Obligations as they mature or any default in performance of any
obligations required by the Note, the Instrument or any other Document;
(iii) use diligence in preserving the liability of any person with respect
to the Obligations, or with respect to the Note, the Instrument or any other
Document; (iv) use diligence in collecting payments or demanding
performance required by the terms of the Note, the Instrument or any other
Document; or (v) bring suit against, or take any other action against, any
party to enforce collection of the Note, the Instrument or any other
Document.

     

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    
 

    9.           Guarantor
waives all legal defenses (at law or in equity) given or available to sureties
or guarantors other than the actual payment in full of all Obligations, and
waives all legal defenses (at law or in equity) based upon the validity,
legality or enforceability of the Note, the Instrument or any other Document
(including, without limitation, any claim that the Note, the Instrument or any
other Document is or was in any way usurious), or otherwise with respect to the
following actions with respect to the Obligations, as to which Guarantor
consents that Lender may from time to time, before or after any default by the
Borrower, with or without further notice to or assent from
Guarantor:

    

    
      	
               
      

            	
              (a)

            	
              exchange
      with, release or surrender, either with or without consideration, to the
      Borrower or to any Guarantor, pledgor or grantor any collateral, or waive,
      release or subordinate any security interest, in whole or in part, now or
      hereafter held as security for the Loan and/or any of the
      Obligations;

            

    

    

    
      	
               
      

            	
              (b)

            	
              waive
      or delay the exercise of any of its rights or remedies against any person
      or entity, including but not limited to the Borrower and/or any guarantor,
      which waiver or delay shall not preclude the Lender from further exercise
      of any of its rights, powers or privileges expressly provided for herein
      or otherwise available, it being understood that all such rights and
      remedies are cumulative;

            

    

    

    
      	
               
      

            	
              (c)

            	
              release,
      either fully or partially, any person or entity, including but not limited
      to the Borrower, guarantor, endorser, surety or any judgment
      debtor;

            

    

    

    
      	
               
      

            	
              (d)

            	
              proceed
      against the Guarantor for payment of the Recourse Guaranteed Amount,
      without first proceeding against or joining the Borrower, any other
      guarantor, surety, endorser of the Note, or any property securing payment
      of the Note, the Instrument, or any other Loan
  Documents;

            

    

    

    
      	
               
      

            	
              (e)

            	
              renew,
      extend or modify the terms of the Loan or any instrument or agreement
      evidencing the Loan and/or any of the
  Obligations;

            

    

    

    
      	
               
      

            	
              (f)

            	
              apply
      payments by the Borrower, the Guarantor, or any other person or entity to
      the reduction of the Loan and/or Obligations in such manner and in such
      amounts and at such time or times and in such order and priority as Lender
      shall determine;

            

    

    

    
      	
               
      

            	
              (g)

            	
              permit
      any sale, transfer or encumbrance of the Property or any part thereof;
      and

            

    

     

     

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    
 

    
      	
               
      

            	
              (h)

            	
              generally
      deal with the Borrower or any of the security or other person or party as
      the Lender shall determine.

            

    

    

    The
Guarantor hereby ratifies and confirms any such exchange, release, surrender,
subordination, waiver, delay, proceeding, renewal, extension, modification or
application, or other dealing, all of which actions shall be binding upon
Guarantor who hereby waives all defenses, counterclaims or set-offs which
Guarantor might otherwise have as a result of such actions, and who hereby
agrees to remain bound under this Guaranty.  In accordance with the
terms of this Guaranty, Guarantor agrees and acknowledges that it shall be
primarily liable for payment of the Recourse Guaranteed Amount (subject only to
the limitations set forth above) in the event of default or
foreclosure.

    

    10.           Guarantor
acknowledges and agrees that from time to time, at Lender’s discretion, with or
without valuable consideration, without authorization from or notice to
Guarantor, and without impairing, modifying, releasing, limiting or otherwise
affecting Guarantor ’s liability under this Guaranty, Lender may:
(i) alter, compromise, accelerate, renew, extend or change the time or
manner for the payment of any or all of the Obligations due under the Note, the
Instrument or any other Document; (ii) increase or reduce the rate of
interest with respect to the Note or Loan; (iii) take and surrender
security, exchange security by way of substitution, or in any way Lender deems
necessary take, accept, withdraw, subordinate, alter, amend, modify or eliminate
security; (iv) add or release or discharge endorsers, guarantors or other
obligors; (v) make changes of any kind whatsoever in the terms of the Note,
the Instrument or any other Document; (vi) make changes of any kind
whatsoever in the manner Lender does business with Borrower; (vii) settle
or compromise with Borrower or any other person(s) liable on the Note, the
Instrument or any other Document on such terms as Lender determines;
(viii) apply all moneys received from Borrower or others, or from any
security held (whether or not held under a mortgage, deed of trust, deed to
secure debt or other instrument), in such manner upon the Note or upon any other
obligation arising under the Instrument or any other Document (whether then due
or not) as Lender determines to be in its best interest, and without in any way
being required to marshal securities or assets or to apply all or any part of
such moneys upon any particular part of the Note, the Instrument or any other
Document, except to the extent as may be expressly provided
therein.

    

    11.           Guarantor
agrees that Lender is not required to retain, hold, protect, exercise due care
with respect to, perfect security interests in, or otherwise assure or safeguard
any security for the Note or the Loan.  Guarantor agrees and
acknowledges that Lender’s failure to do any of the foregoing and Lender’s
failure to exercise any other right or remedy available to Lender shall in no
way affect or alter any of Guarantor’s obligations under this Guaranty or any
security furnished by Guarantor, or give Guarantor any recourse against
Lender.

    

    12.           Guarantor
agrees that its liability under this Guaranty shall not be modified, changed,
released, limited or impaired in any manner whatsoever on account of any or all
of the following: (i) the incapacity, death, disability, dissolution or
termination of Guarantor, Borrower, Lender or any other person or entity;
(ii) the failure by Lender to file or enforce a claim against the estate
(either in administration, bankruptcy or other proceeding) of Borrower or any
other person or entity; (iii) the inability of Lender, Guarantor or any
other person or entity to recover from Borrower or any other party due to the
expiration of any statute of limitations or due to any other cause whatsoever;
(iv) the claim or assertion (whether or not successful) by Borrower or any
other person or entity of any available defenses, set-off rights or
counterclaims (other than payment in full of the Obligations) during any
judicial, arbitration, or mediation proceeding; (v) the transfer(s) of any
portion of the Property encumbered by the Instrument or of any other secured
collateral by other instrument securing payment of the Obligations;
(vi) any modifications, extensions, amendments, consents, releases or
waivers with respect to the Note, the Instrument or any other Document,
including, but not limited to, any other instrument that may now or hereafter
secure the payment of the Obligations or this Guaranty; (vii) Lender’s
failure to give any notice to Guarantor of any default under the Note, the
Instrument or any other Document, including, but not limited to, any other
instrument securing the payment of the Obligations or this Guaranty;
(viii) Guarantor is or becomes liable for any indebtedness owed by Borrower
to Lender other than that which is secured by this Guaranty; or (ix) any
impairment, modification, change, release or limitation of the liability of, or
stay of actions or lien enforcement proceedings against, Borrower, its property,
or its estate in bankruptcy resulting from the operation of any present or
future provision of 11 U.S.C. §101 et. seq. or any other present
or future federal or state insolvency, bankruptcy or similar law (all of the
foregoing hereinafter collectively called “Applicable Bankruptcy Law”) or
from the decision of any court.

     

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

     

    
 

    13.           Guarantor
agrees and acknowledges that Lender shall not be required to (i) pursue any
other remedies before invoking the benefits of the guaranties contained in this
Guaranty, or (ii) make demand upon or institute suit or otherwise pursue or
exhaust its remedies against Borrower or any surety other than Guarantor or to
proceed against any security now or hereafter existing for the payment of any of
the Obligations.  Guarantor also acknowledges that Lender may maintain
an action on this Guaranty without joining Borrower in such action and without
bringing a separate action against Borrower.

    

    14.           If
the Note, the Instrument or any other Document cannot be enforced against
Borrower for any reason whatsoever (including but not limited to the legal
defenses of ultra
vires, lack of authority, illegality, force majeure, act of God,
usury or impossibility), such unenforceability shall not affect Guarantor’s
liability under this Guaranty.  Guarantor agrees that it shall be
liable to the extent provided in this Guaranty notwithstanding the fact that
Borrower may be held not to be liable for such Obligations or not liable to the
same extent as Guarantor’s liability.

    

    15.           Guarantor
agrees that in the event that Borrower does not or otherwise is unable to pay
the Obligations for any reason (including, without limitation, liquidation,
dissolution, receivership, conservatorship, insolvency, bankruptcy, assignment
for the benefit of creditors, sale of all or substantially all assets,
reorganization, arrangement, composition, or readjustment of, or other similar
proceedings affecting the status, composition, identity, existence, assets or
obligations of Borrower, or the disaffirmance or termination of any of the
Obligations in or as a result of any such proceeding), Guarantor shall pay the
Obligations to the extent provided by the terms of this Guaranty and such
occurrence shall in no way affect Guarantor’s obligations under this
Guaranty.

    

    16.           Should
the status, structure or composition of Borrower change, Guarantor agrees that
this Guaranty shall continue and shall also cover the Recourse Guaranteed Amount
of the Obligations of Borrower under the new status, structure or composition of
Borrower, or of Borrower’s successor.  This Guaranty shall remain in
full force and effect notwithstanding any transfer of the Property encumbered by
the Instrument.

    

    17.           In
the event any payment by Borrower to Lender is held to constitute a preference
under any Applicable Bankruptcy Law, or if for any other reason Lender is
required to refund or does refund such payment or pay such amount to any other
party, Guarantor acknowledges that such payment by Borrower to Lender shall not
constitute a release of Guarantor from any liability under this Guaranty, but
Guarantor agrees to pay such amount to Lender upon demand and this Guaranty
shall continue to be effective or shall be reinstated, as the case may be, to
the extent of any such payment or payments.

     

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

     

    
 

    18.           Guarantor
agrees that it shall not have (i) the right to the benefit of, or to direct
the application of, any security held by Lender (including the Property covered,
conveyed or encumbered by the Instrument and any other instrument securing the
payment of the Obligations), (ii) any right to enforce any remedy which
Lender now has or hereafter may have against Borrower, or (iii) any right
to participate in any security now or hereafter held by Lender.

    

    19.           Guarantor
also agrees that it shall not have (i) any defense arising out of the
absence, impairment or loss of any right of reimbursement or subrogation or
other right or remedy of Guarantor against Borrower or against any security
resulting from the exercise or election of any remedies by Lender (including the
exercise of the power of sale under the Instrument), or (ii) any defense
arising by reason of any disability or other defense of Borrower or by reason of
the cessation, from any cause (other than as a result of payment in full of the
Obligations), of Borrower’s liability under the Note, the Instrument or any
other Document.

    

    20.           Guarantor
agrees that any payment it makes of any amount pursuant to this Guaranty shall
not in any way entitle Guarantor to any right, title or interest (whether by way
of subrogation or otherwise) in and to the Note, the Instrument or any other
Document, or any proceeds attributable to the Note, the Instrument or any other
Document, unless and until the full amount of the Obligations owing to Lender
has been fully paid.  At such time as the full amount of the
Obligations owing to Lender has been fully paid, Guarantor shall be subrogated
as to any payments made by it to Lender’s rights against Borrower and/or any
endorsers, sureties or other guarantors.  For the purposes of the
preceding sentence only, the full amount of the Obligations shall not be deemed
to have been paid in full by foreclosure of the Instrument or by acceptance of a
deed-in-lieu of foreclosure, and Guarantor hereby waives and disclaims any
interest which it might have in the Property encumbered by the Instrument or
other collateral security for the Obligations, by subrogation or otherwise,
following such foreclosure or Lender’s acceptance of a deed-in-lieu of
foreclosure.

    

    21.           Guarantor
expressly subordinates its rights to payment of any indebtedness owing from
Borrower to Guarantor (including, but not limited to, property management and
construction management fees and leasing commissions, subject, however, to any
rights under those certain Conditional Assignments of Management Agreement and
Subordination of Management Agreement and Management Fees), whether now existing
or arising at any time in the future, to the right of Lender to first receive or
require payment of the Obligations in full (and including interest accruing on
the Note after any petition under Applicable Bankruptcy Law, which post-petition
interest Guarantor agrees shall remain a claim that is prior and superior to any
claim of Guarantor notwithstanding any contrary practice, custom or ruling in
proceedings under such Applicable Bankruptcy Law).  Guarantor further
agrees, upon the occurrence of an Event of Default (subject, however, to any
rights under those certain Conditional Assignments of Management Agreement and
Subordination of Management Agreement and Management Fees), not to accept any
payment or satisfaction of any kind of indebtedness of Borrower to Guarantor or
any security for such indebtedness without Lender’s prior written
consent.  If Guarantor should receive any such payment, satisfaction
or security for any indebtedness owed by Borrower to Guarantor, Guarantor agrees
to deliver the same without delay to Lender in the form received, endorsed or
assigned for application on account of, or as security for, the Recourse
Liability; until such payment, satisfaction or security is delivered, Guarantor
agrees to hold the same in trust for Lender.

     

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    
 

    22.           Under
no circumstances shall the aggregate amount paid or agreed to be paid under this
Guaranty exceed the highest lawful rate permitted under applicable usury law
(the “Maximum Rate”) and
the payment obligations of Guarantor hereunder are hereby limited
accordingly.  If under any circumstances, whether by reason of
advancement or acceleration of the unpaid principal balance of the Note or
otherwise, the aggregate amounts paid hereunder shall include amounts which by
law are deemed interest and which could exceed the Maximum Rate, Guarantor
stipulates that payment and collection of such excess amounts shall have been
and will be deemed to have been the result of a mistake on the part of both
Guarantor and Lender, and Lender shall promptly credit such excess (only to the
extent such interest payments are in excess of the Maximum Rate) against the
unpaid principal balance of the Note, and any portion of such excess payments
not capable of being so credited shall be refunded to Guarantor.  The
term “applicable law” as
used in this paragraph shall mean the laws of the Property State (as such term
is defined in the Instrument) or the laws of the United States, whichever laws
allow the greater rate of interest, as such laws now exist or may be changed or
amended or come into effect in the future.

    

    23.           Guarantor
hereby represents, warrants and covenants to and with Lender as follows:
(i) the making of the Loan by Lender to Borrower is and will be of direct
interest, benefit and advantage to Guarantor; (ii) Guarantor is solvent, is
not bankrupt and has no outstanding liens, garnishments, bankruptcies or court
actions which could render Guarantor insolvent or bankrupt; (iii) there has
not been filed by or against Guarantor a petition in bankruptcy or a petition or
answer seeking an assignment for the benefit of creditors, the appointment of a
receiver, trustee, custodian or liquidator with respect to Guarantor or any
substantial portion of Guarantor’s property, reorganization, arrangement,
rearrangement, composition, extension, liquidation or dissolution or similar
relief under Applicable Bankruptcy Law; (iv) all reports, financial
statements and other financial and other data which have been or may hereafter
be furnished by Guarantor to Lender in connection with this Guaranty are or
shall be true and correct in all material respects and do not and will not omit
to state any fact or circumstance necessary to make the statements contained
therein not misleading and do or shall fairly represent the financial condition
of Guarantor as of the dates and the results of Guarantor’s operations for the
periods for which the same are furnished, and no material adverse change has
occurred since the dates of such reports, statements and other data in the
financial condition of Guarantor; (v) the execution, delivery and
performance of this Guaranty do not contravene, result in the breach of or
constitute a default under any mortgage, deed of trust, lease, promissory note,
loan agreement or other contract or agreement to which Guarantor is a party or
by which Guarantor or any of its properties may be bound or affected and do not
violate or contravene any law, order, decree, rule or regulation to which
Guarantor is subject; (vi) there are no judicial or administrative actions,
suits or proceedings pending or, to the best of Guarantor’s knowledge,
threatened against or affecting Guarantor which would have a material adverse
effect on either the Property or Borrower’s ability to perform its obligations
or involving the validity, enforceability or priority of this Guaranty; and
(vii) this Guaranty constitutes the legal, valid and binding obligation of
Guarantor enforceable in accordance with its terms.

    

    24.           Guarantor
will furnish to Lender the financial statements and other information as to
Guarantor as are described in Section 3.15 of the Instrument, on or before
the deadlines set forth therein.  Guarantor will provide to Lender
such other financial information and statements concerning Guarantor's financial
status as Lender may request from time to time, all of which shall be in form
and substance acceptable to Lender.  Guarantor shall be in default
hereunder if there is any falsity in any material respect or any material
omission in any representation or statement made by Guarantor to Lender or in
any information furnished Lender, by or on behalf of Borrower or Guarantor, in
connection with the Loan and/or any of the Obligations, as determined by Lender
in its sole and absolute discretion.

     

     

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

     

    
 

    25.           Guarantor
further agrees to the following:

    

    (a)           Where
two or more persons or entities have executed this Guaranty, unless the context
clearly indicates otherwise, all references herein to “Guarantor” shall mean the
guarantors hereunder or either or any of them.  All of the obligations
and liability of said guarantors hereunder shall be joint and
several.  Suit may be brought against said guarantors, jointly and
severally, or against any one or more of them, or less than all of them, without
impairing the rights of Lender against the other or others of said
guarantors.  Lender may compound with any one or more of said
guarantors for such sums or sum as it may see fit and/or release such of said
guarantors from all further liability to Lender for such indebtedness without
impairing the right of Lender to demand and collect the balance of such
indebtedness from the other or others of said guarantors not so compounded with
or released.  However, said guarantors agree that such compounding and
release shall in no way impair the their rights as among
themselves.

    

    (b)           Except
as otherwise provided herein, the rights of Lender are cumulative and shall not
be exhausted by its exercise of any of its rights under this Guaranty or
otherwise against Guarantor or by any number of successive actions, until and
unless all Obligations have been paid and each of the obligations of Guarantor
under this Guaranty have been performed.

    

    (c)           Intentionally
Omitted.

    

    (d)           Any
notice or communication required or permitted under this Guaranty shall be given
in writing, sent by (i) personal delivery, or (ii) expedited delivery
service with proof of delivery, or (iii) United States mail, postage
prepaid, registered or certified mail, sent to the intended addressee at the
address shown below, or to such other address or to the attention of such other
person(s) as hereafter shall be designated in writing by the applicable party
sent in accordance herewith.  Any such notice or communication shall
be deemed to have been given and received either at the time of personal
delivery or, in the case of delivery service or mail, as of the date of first
attempted delivery on a business day at the applicable address and in the manner
provided herein.

    

    (e)           This
Guaranty shall be deemed to have been made under and shall be governed in all
respects by the laws of the Property State.

    

    (f)           This
Guaranty may be executed in any number of counterparts with the same effect as
if all parties hereto had signed the same document.  All such
counterparts shall be construed together and shall constitute one instrument,
but in making proof hereof it shall only be necessary to produce one such
counterpart.

    

    (g)           This
Guaranty may only be modified, waived, altered or amended by a written
instrument or instruments executed by the party against which enforcement of
said action is asserted.  Any alleged modification, waiver, alteration
or amendment which is not so documented shall not be effective as to any
party.

    

    (h)           The
books and records of Lender showing the accounts between Lender and Borrower
shall be admissible in any action or proceeding arising from this Guaranty as
prima facie evidence
for any claim whatsoever, absent manifest error.

     

     

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

     

    
 

    (i)           Guarantor
waives and renounces any and all homestead or exemption rights Guarantor may
have under the United States Constitution, the laws of the Property State, or
the laws of any state as against Guarantor, and Guarantor transfers, conveys and
assigns to Lender a sufficient amount of such homestead or exemption as may be
allowed, including such homestead or exemption as may be set apart in
bankruptcy, to pay and perform the obligations of Guarantor arising under this
Guaranty.  Guarantor hereby directs any trustee in bankruptcy having
possession of such homestead or exemption to deliver to Lender a sufficient
amount of property or money set apart as exempt to pay and perform such
Guarantor obligations.

    

    (j)           The
terms, provisions, covenants and conditions of this Guaranty shall be binding
upon Guarantor, its heirs, devisees, representatives, successors and assigns,
and shall inure to the benefit of Lender and Lender’s transferees, credit
participants, successors, assigns and/or endorsees.

    

    (k)           Within
this Guaranty, the words of any gender shall be held and construed to include
any other gender, and the words in the singular number shall be held and
construed to include the plural and the words in the plural number shall be held
and construed to include the singular, unless the context otherwise
requires.

    

    (l)           A
determination that any provision of this Guaranty 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 Guaranty 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.  Accordingly, the provisions of this
Guaranty are declared to be severable.

    

    26.           Release or Reduction of
Liability on Replacement Leases.  If one or both of Prentice
Hall or New Cingular Wireless do not renew their leases, then Lender will
consent to reductions in the Applicable Principal Liability in the amounts as
set forth below:

    

    
      	
               
      

            	
              (a)

            	
              If
      Borrower enters into a Prentice Hall Replacement Lease and satisfies the
      Prentice Hall Replacement Lease Requirements with respect thereto, then if
      such Prentice Hall Replacement Lease is for a minimum rental rate equal to
      or in excess of the Prentice Hall Full Release Rental, then, upon written
      request of Borrower or Guarantor, Lender shall consent to a reduction of
      the Applicable Prentice Hall Principal Liability equal to $88.50 per
      square foot for the Prentice Hall Space so leased by such Prentice Hall
      Replacement Lease; alternatively, if such Prentice Hall Replacement Lease
      is for a minimum rental rate within the parameters of the Prentice Hall
      Half Release Rental, and Borrower satisfies the Prentice Hall Replacement
      Lease Requirements with respect thereto, then, upon written request of
      Borrower or Guarantor, Lender shall consent to a reduction of the
      Applicable Prentice Hall Principal Liability equal to $44.25 per square
      foot for the Prentice Hall Space so leased by such Prentice Hall
      Replacement Lease;

            

    

    

    
      	
               
      

            	
              (b)

            	
              If
      Borrower enters into a New Cingular Wireless Replacement Lease and
      satisfies the New Cingular Wireless Replacement Lease Requirements with
      respect thereto, then if such New Cingular Wireless Replacement Lease is
      for a minimum rental rate equal to or in excess of the New Cingular
      Wireless Full Release Rental, then, upon written request of Borrower or
      Guarantor, Lender shall consent to a reduction of the Applicable New
      Cingular Wireless Principal Liability equal to $57.50 per square foot for
      the New Cingular Wireless Space so leased by such New Cingular Wireless
      Replacement Lease; alternatively, if such New Cingular Wireless
      Replacement Lease is for a minimum rental rate within the parameters of
      the New Cingular Wireless Half Release Rental, and Borrower satisfies the
      New Cingular Wireless Replacement Lease Requirements with respect thereto,
      then, upon written request of Borrower or Guarantor, Lender shall consent
      to a reduction of the Applicable New Cingular Wireless Principal Liability
      equal to $28.75 per square foot for the New Cingular Wireless Space so
      leased by such New Cingular Wireless Replacement
  Lease;

            

    

     

     

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

     

    
 

    27.           Notwithstanding
the foregoing, if Borrower provides and maintains the letter of credit or cash
deposit in accordance with the provisions set forth in Section 3.3 of the
Loan Agreement, Lender shall resort to collection solely under such letter of
credit or cash deposit so long as Lender recovers under such letter of credit or
cash deposit within two (2) business days after Lender's delivery of the draw
request under the Letter of Credit or withdrawal request with respect to the
cash deposit; in addition, if Lender resorts to collection also under this
Guaranty and thereafter receives a draw under such letter of credit or
withdrawal with respect to the cash deposit, such draw under such letter of
credit or withdrawal with respect to the cash deposit shall reduce, pro tanto,
the liability of Borrower and Guarantor under this Guaranty.

    

    28.           Borrower
and Guarantor acknowledge and agree that this Guaranty and the recourse
liability for the Recourse Guaranteed Amount, and each of the terms set forth
above, have been reviewed and approved as acceptable to Borrower and Guarantor
with respect to the risk that either Prentice Hall fails to exercise the
Prentice Hall Renewal or New Cingular Wireless fails to exercise the New
Cingular Wireless Renewal, and that the terms of this Guaranty are not, and are
not to be construed in any manner as, any penalty or punishment, but as fair and
reasonable terms to address the risk of such occurrences (which risks are
difficult to ascertain), and as the valid and binding contractual agreement of
Borrower and Guarantor with Lender regarding the recourse liability of Borrower
and Guarantor in the event of such occurrence, in consideration of which the
extension of the Loan on the terms set forth herein is based.

    

    THIS GUARANTY is executed as of the
date and year first above written.

    

    
      	 
      	
              GUARANTOR:

               

              MACK-CALI REALTY, L.P.,
      a Delaware limited partnership

               

              By:MACK-CALI
      REALTY CORPORATION, a Maryland corporation, General Partner

               

              By: /s/ Barry Lefkowitz

              Name:  Barry
      Lefkowitz

              Title:  Executive
      Vice President and Chief Financial Officer

               

            

    

     

     

    
      
         

      

      
        -23-

        
          

        

      

      
         

      

    

     

    
 

    The
address of Guarantor is:

     

    
      

      
        	
                 
      

              	
                Mack-Cali
      Realty, L.P.

              

        
          	
                   
      

                	
                  c/o Mack-Cali
      Realty Corporation

                

          
            	
                     
      

                  	
                    343 Thornall
      Street

                  

            
              	
                       
      

                    	
                      Edison,
      New Jersey  08837

                    

              
                	
                         
      

                      	
                        Attn:
      Mitchell E. Hersh, President and Chief Executive
  Officer

                      

            

          

        

      

    

    With a copy to:

    

    
      	
               
      

            	
              General
      Counsel

            

    

    
      	
               
      

            	
              Mack-Cali
      Realty Corporation

            

    

    
      	
               
      

            	
              343 Thornall
      St.

            

    

    
      	
               
      

            	
              Edison,
      New Jersey 08837

            

    

    
      	
               
      

            	
              Attention:  Roger
      W. Thomas

            

    

    

    The
address of Lender is:

    

     

    
      
        	
                 
      

              	
                THE
      PRUDENTIAL INSURANCE COMPANY OF AMERICA AND VPCM,
  LLC

              

      

    

    
      	
               
      

            	
              c/o Prudential
      Asset Resources

            

    

    
      	
               
      

            	
              2100 Ross
      Avenue, Suite 2500

            

    

    
      	
               
      

            	
              Dallas,
      Texas   75201

            

    

    
      	
               
      

            	
              Attention:  Asset
      Management Department;  Reference Loan No. [Loan Number:
      ______]

            

    

    

    With a copy to:

     

    
       

      
        	
                 
      

              	
                THE
      PRUDENTIAL INSURANCE COMPANY OF
AMERICA

              

      

    

    
      	
               
      

            	
              c/o Prudential
      Asset Resources

            

    

    
      	
               
      

            	
              2100 Ross
      Avenue, Suite 2500

            

    

    
      	
               
      

            	
              Dallas,
      Texas   75201

            

    

    
      	
               
      

            	
              Attention:  Legal
      Department;  Reference Loan No. [Loan Number:
      ______]

            

    

     

     

    
 

    
      
        
           

        

         

      

      
        -24-

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