Document:

<PAGE>

Exhibit 10.3 to 2003 10-Q

--------------------------------------------------------------------------------

                               SECURITY AGREEMENT

                            Dated as of June 30, 2003

                                     between

                        WACHOVIA DEVELOPMENT CORPORATION,
                                 as the Borrower

                                       and

                      WACHOVIA BANK, NATIONAL ASSOCIATION,
                      as the Agent for the Secured Parties

                          and accepted and agreed to by

                              CONVERGYS CORPORATION

--------------------------------------------------------------------------------

<PAGE>

                                TABLE OF CONTENTS

1.   Definitions...............................................................2
2.   Grant of Security Interest................................................3
3.   Representations and Warranties............................................4
4.   Payment of Obligations....................................................4
5.   Other Covenants...........................................................5
6.   Default; Remedies.........................................................5
7.   Remedies Not Exclusive....................................................6
8.   Performance by the Agent of the Borrower's Obligations....................6
9.   Duty of the Agent.........................................................6
10.  Powers Coupled with an Interest...........................................7
11.  Execution of Financing Statements.........................................7
12.  Security Agreement Under Uniform Commercial Code..........................7
13.  Authority of the Agent....................................................8
14.  Notices...................................................................8
15.  Severability..............................................................8
16.  Amendment in Writing; No Waivers; Cumulative Remedies.....................9
17.  Section Headings..........................................................9
18.  Successors and Assigns....................................................9
19.  The Borrower's Waiver of Rights...........................................9
20.  GOVERNING LAW............................................................10
21.  Obligations Are Without Recourse.........................................10
22.  Partial Release; Full Release............................................10
23.  Miscellaneous............................................................10
24.  Conflicts with Participation Agreement...................................11
25.  LESSEE AS A PARTY........................................................11
26.  Counterparts.............................................................12

                                       i

<PAGE>

Exhibit 10.3 to 2003 10-Q

                               SECURITY AGREEMENT
                               ------------------

     This SECURITY AGREEMENT, dated as of June 30, 2003 (as amended, modified,
extended, supplemented, restated and/or replaced from time to time, this
"Security Agreement"), is made between WACHOVIA DEVELOPMENT CORPORATION, a North
Carolina corporation, as the borrower (the "Borrower"), and WACHOVIA BANK,
NATIONAL ASSOCIATION, a national banking association ("Bank"), as agent for (a)
the Credit Note Purchasers (hereinafter defined) under the Note Purchase
Agreement dated as of June 30, 2003 (as amended, modified, extended,
supplemented and/or restated from time to time, the "Note Purchase Agreement")
by and among the Borrower, the financial institutions and other institutional
investors from time to time parties thereto (the "Credit Note Purchasers") and
Bank, as the agent for the Credit Note Purchasers, (b) the Mortgage Lenders
(hereinafter defined) under the Mortgage Note Loan Agreement dated as of June
30, 2003 (as amended, modified, extended, supplemented and/or restated from time
to time, the "Mortgage Note Loan Agreement") by and among the Borrower, the
several banks and other financial institutions from time to time parties thereto
(the foregoing banks and financial institutions are collectively referenced as
the "Mortgage Lenders") and Bank, as the agent for the Mortgage Lenders, (c) the
Lessor, and (d) itself. The Agent, the Lessor, the Credit Note Purchasers, and
the Mortgage Lenders, together with their successors and permitted assigns, are
collectively referred to hereinafter as the "Secured Parties." The Bank, in its
capacity as agent for the Secured Parties is referred to hereinafter as the
"Agent," and this Security Agreement is accepted and agreed to by Convergys
Corporation, an Ohio corporation.

                              Preliminary Statement
                              ---------------------

Pursuant to the Note Purchase Agreement, the Credit Note Purchasers have
severally agreed to purchase the Credit Notes to be issued by the Borrower in an
aggregate amount not to exceed the aggregate Credit Note Purchaser Commitments
upon the terms and subject to the conditions set forth therein. Pursuant to the
Mortgage Note Loan Agreement, the Mortgage Lenders have agreed to make Mortgage
Loans to the Borrower in an aggregate amount not to exceed the aggregate
Mortgage Note Commitments upon the terms and subject to the conditions set forth
therein. Pursuant to the Participation Agreement, the Lessor has agreed to make
a Lessor Advance in an aggregate amount not to exceed the Lessor Commitment upon
the terms and subject to the conditions set forth therein. The Borrower is the
legal and beneficial owner of the Property (except the Borrower may have a
ground leasehold interest in certain Property pursuant to one (1) or more Ground
Leases).

     Pursuant to the various Operative Agreements, the Bank has agreed to act in
the capacity as Agent.

     It is a condition, among others, to the obligation of (i) the Credit Note
Purchasers to purchase the Credit Notes under the Note Purchase Agreement (ii)
the Mortgage Lenders to make their respective Mortgage Loans to the Borrower
under the Mortgage Note Loan Agreement and (iii) the Lessor to make its Lessor
Advances under the Participation Agreement

<PAGE>

that the Borrower shall have executed and delivered this Security Agreement to
the Agent, for the benefit of the Secured Parties.

     NOW, THEREFORE, in consideration of the premises and to induce the Credit
Note Purchasers to purchase the Credit Notes under the Note Purchase Agreement,
the Mortgage Lenders to make Mortgage Loans under the Mortgage Note Loan
Agreement and the Lessor to make its Lessor Advance under the Participation
Agreement, the Borrower hereby agrees with the Agent, for the benefit of the
Secured Parties, as follows:

     1.   Definitions.
          -----------

     (a)  The following terms are used herein as defined in the Uniform
Commercial Code as in effect from time to time in the State of New York (the
"UCC"): Accounts, Chattel Paper, Commercial Tort Claims, Deposit Accounts,
Documents, Equipment, Fixtures, General Intangibles, Instruments, Investment
Property, Letter-of-Credit Rights and Proceeds. Each such term as used in
relationship with the Borrower and/or the Lessee shall mean the Property only to
the extent arising from or relating to the transactions contemplated by the
Operative Agreements or arising directly or indirectly from or otherwise
relating to (i) the ownership by the Borrower and/or the Lessee of, (ii) the
right, title or interest of the Borrower and/or the Lessee in, (iii) the
planning, design, engineering, construction, development, completion, insuring,
operation, maintenance, modification, alteration, lease, sublease or use of, or
(iv) the sale, casualty, condemnation, assignment, transfer, pledge, encumbrance
or other disposition of, the Property or any part thereof. For the avoidance of
doubt, (i) the term "Accounts" as used herein shall exclude all accounts
receivable of the business and operations of the Borrower and/or the Lessee and
(ii) the term "General Intangibles" as used herein shall exclude all trademarks,
trade names and symbols of the Borrower and/or the Lessee.

     (b)  As used herein, the following terms shall have the following
respective meanings:

          "Lessee" shall mean Convergys Corporation, an Ohio corporation, its
     successors, permitted assigns and permitted transferees.

     (c)  Capitalized terms used but not otherwise defined in this Security
Agreement shall have the respective meanings specified in Appendix A to the
Participation Agreement dated as of June 30, 2003 (as amended, modified,
extended, supplemented, restated and/or replaced from time to time in accordance
with the applicable provisions thereof, the "Participation Agreement") among the
Lessee, the various entities which are parties thereto from time to time as
guarantors, the Borrower, the Credit Note Purchasers, the Mortgage Lenders and
the Bank, as the agent for the Primary Financing Parties and respecting the
Security Documents, as the agent for the Secured Parties.

     (d)  The rules of usage set forth in Appendix A to the Participation
Agreement shall apply to this Agreement.

                                       2

<PAGE>

     2.   Grant of Security Interest.
          --------------------------

     To secure the payment and performance of all the Obligations and any other
amounts advanced under the Note Purchase Agreement in connection with the Credit
Notes, under the Mortgage Note Loan Agreement in connection with the Mortgage
Notes or under the Participation Agreement as a Lessor Advance, all the amounts
now or hereafter owing to the Credit Note Purchasers, the Mortgage Lenders, the
Lessor or the Agent thereunder or under any other Operative Agreement, THE
BORROWER HEREBY CONVEYS, GRANTS, ASSIGNS, TRANSFERS, HYPOTHECATES, MORTGAGES AND
SETS OVER TO THE AGENT, FOR THE BENEFIT OF THE SECURED PARTIES, A FIRST PRIORITY
SECURITY INTEREST IN AND LIEN ON ALL OF ITS RIGHT, TITLE AND INTEREST IN AND TO
THE BORROWER'S INTEREST (AS THE TERM "BORROWER'S INTEREST" IS DEFINED IN
APPENDIX A TO THE PARTICIPATION AGREEMENT), WHETHER NOW EXISTING OR HEREAFTER
ACQUIRED, IN EACH OF THE FOLLOWING, BUT SOLELY TO THE EXTENT SUCH RIGHT, TITLE
OR INTEREST IS ACQUIRED BY THE BORROWER WITH RESPECT TO OR IN CONNECTION WITH
THE PROPERTY, ANY OPERATIVE AGREEMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY:

          (a)  all Accounts;

          (b)  all Chattel Paper (including without limitation all rights under
     the Lease and each Lease Supplement);

          (c)  all Commercial Tort Claims;

          (d)  all Documents;

          (e)  all Equipment;

          (f)  all Fixtures (including without limitation any Fixtures
     constituting the Property, as defined in Appendix A to the Participation
     Agreement);

          (g)  all General Intangibles, including without limitation (i)
     all rights to payment and all indemnity rights under the Operative
     Agreements, (ii) all computer software, books and records relating to or
     used in connection with the operation of the Property or any part thereof,
     (iii) all unearned premiums under insurance policies now held or
     subsequently obtained by the Lessee relating to the Property or any part
     thereof, (iv) all consents, licenses, certificates and other governmental
     approvals relating to use or operation of the Property or any part thereof,
     and (v) all plans and specifications relating to the Property or any part
     thereof; specifically excluding however, trademarks, trade names and
     symbols;

          (h)  all Instruments;

          (i)  all Investment Property;

                                       3

<PAGE>

          (j)  all Letter-of-Credit Rights;

          (k)  all Property or any part thereof;

          (l)  all money, cash or cash equivalent and Deposit Accounts;

          (m)  all Proceeds, including without limitation (i) all Rent and
     all other rents, payments, purchase prices, receipts, revenues, issues and
     profits payable under the Lease or pursuant to any other lease with respect
     to the Property, (ii) subject to application thereof in accordance with the
     terms of the Lease, all proceeds of any insurance policies maintained by or
     for the benefit of the Borrower, including without limitation any right to
     collect and receive such proceeds and (iii) all awards and other
     compensation, including without limitation the interest payable thereon and
     any right to collect and receive the same, made to the present or any
     subsequent owner of the Property for the taking by eminent domain,
     condemnation or otherwise, of all or any part of the Property or any
     easement or other right therein; and

          (n)  all right, title and interest of the Borrower in and to all
     substitutes, modifications and replacements of, and all additions,
     accessions and improvements to, the Fixtures and Equipment, subsequently
     acquired or leased by the Borrower or constructed, assembled or placed by
     the Borrower on the Property, immediately upon such acquisition, lease,
     construction, assembling or placement, and in each such case, without any
     further conveyance, assignment or other act by the Borrower.

     (All of the foregoing property and rights and interests now owned or held
or subsequently acquired by the Borrower and described in the foregoing clauses
(a) through (n) are collectively referred to as the "Security Assets").

     TO HAVE AND TO HOLD the Security Assets and the rights and privileges
hereby granted unto the Agent (for the benefit of the Secured Parties) its
successors and assigns for the uses and purposes set forth, until all of the
Obligations owing to the Credit Note Purchasers, the Mortgage Lenders, the
Lessor and the Agent under the Operative Agreements are paid in full; provided,
that EXCLUDED from the Security Assets at all times and in all respects shall be
all Excepted Payments.

     3.   Representations and Warranties.
          ------------------------------

     (a)  [Reserved].

     (b)  The Borrower is the legal owner of the Security Assets and has the
right to pledge, sell, assign and transfer the Security Assets.

     4.   Payment of Obligations.
          ----------------------

     The Borrower shall pay all Obligations in accordance with the terms of the
Note Purchase Agreement, the Credit Notes, the Mortgage Note Loan Agreement, the
Mortgage Notes, the

                                       4

<PAGE>

Participation Agreement and the other Operative Agreements and perform each term
to be performed by it under the Note Purchase Agreement, the Credit Notes, the
Mortgage Note Loan Agreement, the Mortgage Notes, the Participation Agreement
and the other Operative Agreements.

     5.   Other Covenants.
          ---------------

     (a)  At any time and from time to time, upon the written request of the
Agent, and at the expense of the Borrower (with funds provided by the Lessee for
such purpose in accordance with the terms of the Operative Agreements), the
Borrower will promptly and duly execute and deliver such further instruments and
documents and take such further actions as the Agent reasonably may request for
the purposes of obtaining or preserving the full benefits of this Security
Agreement and of the rights and powers granted by this Security Agreement.

     (b)  The Borrower will not, and none of the Financing Parties authorizes
the Borrower to, sell, exchange transfer, assign, lease or otherwise dispose of
the Security Assets or any interest therein except as permitted under the
Operative Agreements.

     (c)  The Borrower shall execute and deliver all agreements, assignments,
instruments or other documents as reasonably requested by the Agent for the
purpose of obtaining and maintaining control within the meaning of the UCC with
respect to any Security Assets consisting of Deposit Accounts and
Letter-of-Credit Rights.

     (d)  Each of the Borrower and the Lessee will promptly forward to the Agent
written notification of any and all Commercial Tort Claims of which such Person
is aware and execute and deliver such statements, documents and notices and do
and cause to be done all such things as may be required by the Agent or required
by law, including the UCC, to fully create, perfect and maintain the priority of
the Agent's security interest in any Commercial Tort Claims.

     6.   Default; Remedies.
          -----------------

     (a)  If an Event of Default has occurred and is continuing:

          (i)  subject to such notice as may be required by applicable
     law, the Agent, in addition to all other remedies available at law or in
     equity, shall have the right forthwith to enter upon the Property (or any
     other place where any component of any Security Assets are located at such
     time) without charge, and take possession of all or any portion of the
     Security Assets, and to sell, re-let or otherwise dispossess itself of the
     Security Assets and receive the rents, issues and profits thereof, to make
     repairs and to apply said rentals and profits, after payment of all
     necessary or proper charges and expenses, on account of the amounts hereby
     secured (subject to the Excepted Payments); and

          (ii) the Agent, shall, as a matter of right, be entitled to the
     appointment of a receiver for the Security Assets, and the Borrower hereby
     consents to such appointment and waives notice of any application therefor.

                                       5

<PAGE>

     (b)  If an Event of Default has occurred and is continuing, the Agent may
proceed by an action at law, suit in equity or other appropriate proceeding, to
protect and enforce its rights, whether for the foreclosure of the Lien of this
Security Agreement, or for the specific performance of any agreement contained
herein or for an injunction against the violation of any of the terms hereof.
The proceeds of any sale of any of the Security Assets shall be applied pursuant
to Section 8.7 of the Participation Agreement and the Intercreditor Agreement.
In addition, the Agent may proceed under Section 12 hereof.

     7.   Remedies Not Exclusive.
          ----------------------

     The Agent shall be entitled to enforce payment of the indebtedness and
performance of the Obligations and to exercise all rights and powers under this
Security Agreement or under any of the other Operative Agreements or any laws
now or hereafter in force, notwithstanding some or all of the Obligations may
now or hereafter be otherwise secured, whether by deed of trust, mortgage,
security agreement, pledge, Lien, assignment or otherwise. Neither the
acceptance of this Security Agreement nor its enforcement, shall prejudice or in
any manner affect the Agent's right to realize upon or enforce any other
security now or hereafter held by the Agent as security for the Obligations, it
being agreed that the Agent shall be entitled to enforce this Security Agreement
and any other security now or hereafter held by the Agent in such order and
manner as the Agent may determine in its absolute discretion. Every power or
remedy given by any of the Operative Agreements to the Agent or to which it may
otherwise be entitled, may be exercised, concurrently or independently, from
time to time and as often as may be deemed expedient by the Agent. In no event
shall the Agent, in the exercise of the remedies provided in this Security
Agreement (including without limitation in connection with the assignment of
rents to the Agent, or the appointment of a receiver and the entry of such
receiver onto all or any part of the Property), be deemed a "mortgagee in
possession" or a "pledgee in possession", and the Agent shall not in any way be
made liable for any act, either of commission or omission, in connection with
the exercise of such remedies.

     8.   Performance by the Agent of the Borrower's Obligations.
          ------------------------------------------------------

     If the Borrower fails to perform or comply with any of its agreements
contained herein the Agent, at its option, but without any obligation so to do,
may perform or comply, or otherwise cause performance or compliance, with such
agreement. The reasonable expenses of the Agent incurred in connection with
actions undertaken as provided in this Section 8, together with interest thereon
at a rate per annum equal to the Overdue Rate from the date of payment by the
Agent to the date reimbursed by the Borrower, shall be payable by the Borrower
(with funds provided by the Lessee for such purpose in accordance with the terms
of the Operative Agreements) to the Agent on demand and constitutes part of the
Obligations secured hereby.

     9.   Duty of the Agent.
          -----------------

     The Agent's sole duty with respect to the custody, safekeeping and physical
preservation of any Security Assets in its possession, if any, shall be to deal
with it in the same manner as the Agent deals with similar property for its own
account. Neither the Agent nor the Lessor nor any Credit Note Purchaser nor any
Mortgage Lender nor any of their respective directors, officers,

                                       6

<PAGE>

employees, shareholders, partners or agents shall be liable for failure to
demand, collect or realize upon any of the Security Assets or for any delay in
doing so or shall be under any obligation to sell or otherwise dispose of any
Security Assets upon the request of the Borrower or any other Person or to take
any other action whatsoever with regard to the Security Assets or any part
thereof.

     10.  Powers Coupled with an Interest.
          -------------------------------

     All powers, authorizations and agencies contained in this Security
Agreement are coupled with an interest and are irrevocable until this Security
Agreement is terminated and the Liens created hereby are released.

     11.  Execution of Financing Statements.
          ---------------------------------

     Each of the Borrower and the Lessee authorizes the Agent at the expense of
the Borrower or the Lessee, as applicable (such amounts to be paid with funds
provided by the Lessee for such purpose), to file financing statements with
respect to the Security Assets under this Security Agreement without the
signature of the Borrower or the Lessee, as applicable, in such form and in such
filing offices as the Agent reasonably determines appropriate to perfect the
security interests of the Agent under this Security Agreement. A carbon,
photographic or other reproduction of this Security Agreement shall be
sufficient as a financing statement for filing in any jurisdiction. For purposes
of such financing statement, the Borrower or the Lessee, as applicable, shall be
deemed to be the debtor, and the Agent shall be deemed to be the secured party.
The address of the Borrower is Wachovia Development Corporation, c/o Wachovia
Securities, LLC, One Wachovia Center, 301 South College Street, Charlotte, North
Carolina 28288, Attention: Gabrielle Braverman. The address of the Lessee is 201
East Fourth Street, 102-1900, Cincinnati, Hamilton County, Ohio, 45201-2301,
Attention: William Coleman. The address of the Agent is Wachovia Bank, National
Association, 201 South College Street, Charlotte, North Carolina 28288,
Attention: Angela Abessinio.

     12.  Security Agreement Under Uniform Commercial Code.
          ------------------------------------------------

     (a)  It is the intention of the parties hereto that this Security Agreement
as it relates to matters of the grant, perfection and priority of security
interests the subject hereof, shall constitute a security agreement within the
meaning of the Uniform Commercial Code of the states in which the Security
Assets are located. If an Event of Default shall occur and be continuing, then
in addition to having any other right or remedy available at law or in equity,
the Agent may proceed under the applicable Uniform Commercial Code and exercise
such rights and remedies as may be provided to a secured party by such Uniform
Commercial Code with respect to all or any portion of the Security Assets which
is personal property (including without limitation taking possession of and
selling the Property). If the Agent shall elect to proceed under the Uniform
Commercial Code, then ten (10) days' notice of sale of the personal property
shall be deemed reasonable notice and the reasonable expenses of retaking,
holding, preparing for sale, selling and the like incurred by the Agent shall
include, but not be limited to, reasonable attorneys' fees and legal expenses.
At the Agent's request, the Borrower shall assemble such

                                       7

<PAGE>

personal property and make it available to the Agent at a place designated by
the Agent which is reasonably convenient to both parties.

     (b)  The Borrower, upon reasonable request by the Agent from time to time
as may be necessary to protect Agent's interest in the Security Assets, shall
execute, acknowledge and deliver to the Agent one (1) or more separate security
agreements, in form satisfactory to the Agent, covering all or any part of the
Security Assets and will further execute, acknowledge and deliver, or cause to
be executed, acknowledged and delivered, any financing statement, affidavit,
continuation statement or certificate or other document as the Agent may request
in order to perfect, preserve, maintain, continue or extend the security
interest under, and the priority of the Liens granted by, this Security
Agreement and such security instrument. The Borrower further agrees to pay to
the Agent (with funds provided by the Lessee for such purpose in accordance with
the terms of the Operative Agreements) on demand all costs and expenses incurred
by the Agent in connection with the preparation, execution, recording, filing
and re-filing of any such document and all reasonable costs and expenses of any
record searches for financing statements the Agent shall reasonably require. The
filing of any financing or continuation statements in the records relating to
personal property or chattels shall not be construed as in any way impairing the
right of the Agent to proceed against the Property encumbered by this Security
Agreement.

     13.  Authority of the Agent.
          ----------------------

     The Borrower acknowledges that the rights and responsibilities of the Agent
under this Security Agreement with respect to any action taken by the Agent or
the exercise or non-exercise by the Agent of any option, voting right, request,
judgment or other right or remedy provided for herein or resulting or arising
out of this Security Agreement shall be governed by the Note Purchase Agreement
and Section 8.6 of the Participation Agreement, the Intercreditor Agreement and
by such other agreements with respect thereto as may exist from time to time
(until such time as all amounts due and owing to the Secured Parties and the
Agent under the Operative Agreements have been paid in full), but the Agent
shall be conclusively presumed to be acting as agent for the Secured Parties
with full and valid authority so to act or refrain from acting, and the Borrower
shall be under no obligation, or entitlement, to make any inquiry respecting
such authority.

     14.  Notices.
          -------

     All notices required or permitted to be given under this Security Agreement
shall be in writing and delivered as provided in Section 12.2 of the
Participation Agreement.

     15.  Severability.
          ------------

     Any provision of this Security Agreement which is prohibited or
unenforceable shall be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof.

                                       8

<PAGE>

     16.  Amendment in Writing; No Waivers; Cumulative Remedies.
          -----------------------------------------------------

     Subject to the terms of the Intercreditor Agreement:

     (a)  None of the terms or provisions of this Security Agreement may be
waived, amended, supplemented or otherwise modified except in accordance with
the terms of Section 12.4 of the Participation Agreement.

     (b)  No failure to exercise, nor any delay in exercising, on the part of
the Agent, any right, power or privilege hereunder shall operate as a waiver
thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. A waiver by the Agent of any right or
remedy hereunder on any one (1) occasion shall not be construed as a bar to any
right or remedy which the Agent would otherwise have on any future occasion.

     (c)  The rights and remedies herein provided are cumulative, may be
exercised singly or concurrently and are not exclusive of any other rights or
remedies provided by law.

     17.  Section Headings.
          ----------------

     The section headings used in this Security Agreement are for convenience of
reference only and are not to affect the construction hereof or be taken into
consideration in the interpretation hereof.

     18.  Successors and Assigns.
          ----------------------

     This Security Agreement shall be binding upon the successors of the
Borrower, and the Borrower shall not assign any of its rights or obligations
hereunder or with respect to any of the Security Assets without the prior
written consent of the Agent (at the direction of the Majority Secured Parties).
This Security Agreement shall inure to the benefit of the Agent, the Lessor, the
Credit Note Purchasers and the Mortgage Lenders and their respective successors
and assigns, in accordance with their respective interests herein.

     19.  The Borrower's Waiver of Rights.
          -------------------------------

     Except as otherwise set forth herein, to the fullest extent permitted by
law, the Borrower waives the benefit of all laws now existing or that may
subsequently be enacted providing for (a) any appraisement or valuation before
sale of any portion of the Security Assets or interest therein, (b) any stay or
extension of the time for the enforcement of the collection of the indebtedness
or the creation or extension of a period of redemption from any sale made in
collecting such debt, (c) exemption of any portion of the Security Assets from
attachment, levy or sale under execution or exemption from civil process and (d)
marshalling of any portion of the Security Assets or interest therein. Except as
otherwise set forth herein, to the fullest extent the Borrower may do so, the
Borrower agrees that the Borrower will not at any time insist upon, plead, claim
or take the benefit or advantage of any law now or hereafter in force providing
for any appraisement, valuation, stay, exemption, extension or redemption, or
requiring foreclosure

                                       9

<PAGE>

of this Security Agreement before exercising any other remedy granted hereunder
and the Borrower, for the Borrower and its successors and assigns, and for any
and all Persons ever claiming any interest in the Security Assets, to the extent
permitted by law, hereby waives and releases all rights of redemption,
valuation, appraisement, stay of execution, notice of election to mature or
declare due the whole of the Obligations and marshalling in the event of
foreclosure of the Liens hereby created.

     20.  GOVERNING LAW.
          -------------

     EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN SECTION 12(a) HEREOF, THIS
SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED, INTERPRETED AND ENFORCED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING
EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF LAW), EXCEPT TO THE
EXTENT THE LAWS OF THE STATE WHERE A PARTICULAR PROPERTY IS LOCATED ARE REQUIRED
TO APPLY.

     21.  Obligations Are Without Recourse.
          --------------------------------

     The provisions of the Participation Agreement relating to limitations on
liability of the Borrower are hereby incorporated by reference herein, Mutatis
Mutandis.

     22.  Partial Release; Full Release.
          -----------------------------

     The Agent may release for such consideration as it may require any portion
of the Security Assets without (as to the remainder of the Security Assets) in
any way impairing or affecting the Lien, security interest and priority herein
provided for the Agent compared to any other Lien holder or secured party.
Further, the Agent shall execute and deliver to the Borrower such documents and
instruments as may be required to release the Lien and security interest created
by this Security Agreement with respect to the Property as provided in Section
8.8 of the Participation Agreement or to grant the easements and permit the
other matters provided for in Section 8.5 of the Participation Agreement.

     23.  Miscellaneous.
          -------------

     (a)  This Security Agreement is one (1) of the documents which create Liens
and security interests that secure payment and performance of the Obligations.
The Agent, at its election, may commence or consolidate in a single action all
proceedings to realize upon all such Liens and security interests. The Borrower
hereby waives (i) any objections to the commencement or continuation of an
action to foreclose the Lien of this Security Agreement or exercise of any other
remedies hereunder based on any action being prosecuted or any judgment entered
with respect to the Obligations or any Liens or security interests that secure
payment and performance of the Obligations and (ii) any objections to the
commencement of, continuation of, or entry of a judgment in any such other
action based on any action or judgment connected to this Security Agreement. In
case of a foreclosure sale, the Security Assets may be sold, at the Agent's
election, in one (1) parcel or in more than one (1) parcel and the Agent is
specifically

                                       10

<PAGE>

empowered (without being required to do so, and in its sole and absolute
discretion) to cause successive sales of portions of the Security Assets to be
held.

     (b)  THE PROVISIONS OF THE PARTICIPATION AGREEMENT RELATING TO SUBMISSION
TO JURISDICTION AND VENUE ARE HEREBY INCORPORATED BY REFERENCE HEREIN, MUTATIS
MUTANDIS.

     24.  Conflicts with Participation Agreement.
          --------------------------------------

     Notwithstanding any other provision hereof, in the event of any conflict
between the terms of this Security Agreement and the Participation Agreement,
the terms of the Participation Agreement shall govern.

     25.  LESSEE AS A PARTY.
          -----------------

     (a)  LESSEE HAS EXECUTED THIS SECURITY AGREEMENT TO EVIDENCE THE AGREEMENT
OF THE LESSEE TO THE TERMS OF THE SECURITY AGREEMENT (INCLUDING SECTIONS 5(D)
AND 11) AND FOR THE PURPOSE OF SUBJECTING TO THE SECURITY INTEREST AND LIEN
GRANTED HEREUNDER ALL OF ITS RIGHT, TITLE AND INTEREST, IF ANY, IN AND TO THE
SECURITY ASSETS TO SECURE THE PROMPT PAYMENT IN FULL OF ALL AMOUNTS OWING BY THE
LESSEE FROM TIME TO TIME AND THE PERFORMANCE OF ALL OBLIGATIONS OF THE LESSEE TO
THE SECURED PARTIES UNDER THE OPERATIVE AGREEMENTS IN THE EVENT THAT A COURT,
WHEN ENFORCING THIS SECURITY AGREEMENT FOLLOWING THE OCCURRENCE AND CONTINUANCE
OF A LEASE EVENT OF DEFAULT, DETERMINES THAT THE LESSEE'S INTEREST IN THE
PROPERTY IS NOT A LEASEHOLD INTEREST, BUT THAT THE TRANSACTIONS CONTEMPLATED BY
THE LEASE SHALL BE TREATED AS A SECURED BORROWING. TO EFFECT THE FOREGOING,
LESSEE HEREBY GRANTS TO THE AGENT (FOR THE BENEFIT OF THE SECURED PARTIES) A
SECURITY INTEREST IN AND TO ALL OF ITS RIGHT, TITLE AND INTEREST, IF ANY, IN AND
TO THE SECURITY ASSETS (TO THE EXTENT LESSEE, RATHER THAN THE BORROWER, IS
DETERMINED TO HAVE ANY RIGHT, TITLE OR INTEREST THEREIN AND WITHOUT REGARD TO
ANY LANGUAGE IN SECTION 2 OR THE DEFINITION OF "SECURITY ASSETS" OR ANY
DEFINITION OF ANY ITEM CONSTITUTING THE SECURITY ASSETS WHICH OTHERWISE WOULD
LIMIT THE SECURITY ASSETS TO THE RIGHT, TITLE AND INTEREST OF THE BORROWER
THEREIN), TO SECURE THE PROMPT PAYMENT IN FULL OF ALL AMOUNTS OWING BY THE
LESSEE FROM TIME TO TIME AND THE PERFORMANCE OF ALL OBLIGATIONS OF THE LESSEE TO
THE SECURED PARTIES UNDER THE OPERATIVE AGREEMENTS. LESSEE ACKNOWLEDGES AND
AGREES THAT, UPON THE OCCURRENCE AND CONTINUANCE OF A LEASE EVENT OF DEFAULT,
THE AGENT SHALL HAVE THE RIGHT TO EXERCISE ANY OR ALL OF ITS REMEDIES HEREUNDER
AS AGAINST ANY SUCH RIGHT, TITLE OR INTEREST OF LESSEE IN OR TO THE SECURITY
ASSETS. THE SECURITY ASSETS SHALL NOT INCLUDE EQUIPMENT ACQUIRED OR FINANCED
WITH FUNDS (I) OTHER THAN THE CREDIT PROCEEDS, THE MORTGAGE LOANS AND THE LESSOR
ADVANCE AND ALL

                                       11

<PAGE>

PROCEEDS THEREOF AND (II) OTHER THAN PROCEEDS PROVIDED DIRECTLY OR INDIRECTLY BY
THE LESSEE OR ONE OF ITS AFFILIATES WHERE THE LESSEE IS EXPRESSLY REQUIRED BY
ANY OPERATIVE AGREEMENT TO ACQUIRE ANY ASSET BY OR ON BEHALF OF THE LESSOR, IN
EACH CASE INCLUDING ANY REPLACEMENT OF SUCH ASSETS WHETHER SUCH REPLACEMENT IS
MADE WITH THE PROCEEDS OF INSURANCE OR OTHERWISE.

     (b)  In furtherance of Section 5.1 of the Lease, the Agent hereby
acknowledges and agrees that so long as no Lease Event of Default shall exist
and be continuing, the Agent will not disturb the possession of Lessee, will not
terminate the Lease or join Lessee in summary ejectment or foreclosure
proceedings (unless such joinder is required to effect such ejectment or
foreclosure proceedings against the Borrower, but subject to the non-disturbance
rights of Lessee hereunder), and shall recognize the leasehold estate and
contractual rights of the Lessee under the Lease, including without limitation
the Purchase Option granted thereunder to the Lessee, it being understood that
such leasehold estate and rights of the Lessee shall be unaffected by any
foreclosure action or enforcement of remedies by the Agent hereunder so long as
no Lease Event of Default shall exist and be continuing.

     26.  Counterparts.
          ------------

     This Security Agreement may be executed in counterparts, each of which
shall constitute an original but all of which, when taken together, shall
constitute one instrument.

                            [signature page follows]

                                       12

<PAGE>

     IN WITNESS WHEREOF, each of the undersigned has caused the Security
Agreement to be duly executed and delivered as of the date first above written.

                                        WACHOVIA DEVELOPMENT CORPORATION,
                                        as the Borrower

                                        By: /s/ Evander S. Jones, Jr.
                                           ----------------------------------
                                        Name:  Evander S. Jones, Jr.
                                             --------------------------------
                                        Title: Vice President
                                             --------------------------------

                           (signature pages continue)

<PAGE>

                                        WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        as the Agent for the Secured Parties

                                        By: /s/ Weston R. Garrett
                                           ----------------------------------
                                        Name:  Weston R. Garrett
                                             --------------------------------
                                        Title: Vice President
                                              -------------------------------

                           (signature pages continue)

<PAGE>

Accepted and Agreed to:

CONVERGYS CORPORATION

By: /s/ William R. Coleman
   ----------------------------------
Name:  William R. Coleman
     --------------------------------
Title: V.P. & Treas.
      -------------------------------

                              (signature pages end)<PAGE>

Exhibit 10.4 to 2003 10-Q1

                   ASSIGNMENT AND RECHARACTERIZATION AGREEMENT

     ASSIGNMENT AND RECHARACTERIZATION AGREEMENT dated as of June 30, 2003 (as
amended, modified, extended, supplemented, restated and/or replaced from time to
time, this "Agreement") by and among CONVERGYS CORPORATION, an Ohio corporation
(regarding the transactions evidenced by the Existing Operative Agreements, the
"Existing Construction Agent" and the "Existing Lessee"), the various entities
which are party to the Existing Participation Agreement as guarantors (regarding
the transactions evidenced by the Existing Operative Agreements, the "Existing
Guarantors"), WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION (as successor to
First Security Bank, National Association), a national banking association, the
various banks and other lending institutions listed on the signature pages
hereto as existing holders of certificates issued with respect to the CRT Realty
Trust 1998-1 (regarding the transactions evidenced by the Existing Operative
Agreements, individually, an "Existing Holder" and collectively, the "Existing
Holders"), the various banks and other lending institutions listed on the
signature pages hereto as existing lenders with respect to the CRT Realty Trust
1998-1 (regarding the transactions evidenced by the Existing Operative
Agreements, individually, an "Existing Lender" and collectively, the "Existing
Lenders"), BANK OF AMERICA, N.A. (as successor to NationsBank, N.A.,), a
national banking association, as the agent for the Existing Lenders and
respecting the Existing Security Documents (hereinafter defined), as the agent
for the Existing Lenders and the Existing Holders to the extent of their
interests (regarding the transactions evidenced by the Existing Operative
Agreements, the "Existing Agent"), CONVERGYS CORPORATION, an Ohio corporation
(the "Lessee"), the various entities which are party hereto as guarantors
(individually, a "Guarantor" and collectively, the "Guarantors"), WACHOVIA
DEVELOPMENT CORPORATION, a North Carolina corporation (the "Borrower" or the
"Lessor"), the various financial institutions and other institutional investors
which are parties to the Participation Agreement (hereinafter defined from time
to time as purchasers of the Credit Notes (individually, a "Credit Note
Purchaser" and collectively, the "Credit Note Purchasers"), the various banks
and other lending institutions which are parties to the Participation Agreement
(hereinafter defined) from time to time as mortgage lenders (individually, a
"Mortgage Lender" and collectively, the "Mortgage Lenders") and WACHOVIA BANK,
NATIONAL ASSOCIATION, a national banking association, as the agent for the
Primary Financing Parties and respecting the Security Documents, as the agent
for the Secured Parties (in such capacity, the "Agent").

                                   WITNESSETH:
                                   -----------

     WHEREAS, various of the parties to this Agreement are parties to the
Existing Participation Agreement, certain other Existing Operative Agreements,
the Participation Agreement, or certain other Operative Agreements;

     WHEREAS, the parties to this Agreement wish to amend or modify certain
agreements, instruments and other documents to which they are a party (or to
which certain of them are a

<PAGE>

party) to permit the facility contemplated by the Existing Operative Agreements
to be assigned and replaced by the facility contemplated by the Operative
Agreements;

     WHEREAS, the Existing Lenders and Existing Holders have been requested to
assign to the Lessor the Existing Notes and Existing Holder Certificates and,
subject to the terms of this Agreement, their rights and obligations as the
Existing Lenders and the Existing Holders pursuant to the Existing Operative
Agreements and the Lessor desires to accept such assignments;

     WHEREAS, the Lessor, as the beneficial owner of one hundred percent of the
Trust pursuant to such assignments referenced in the prior paragraph, desires to
obtain, in connection with a termination of the Trust, the Owner Trustee's
right, title and interest in and to the assets held by the Owner Trustee or in
the Trust and except as otherwise provided, Lessor will assume certain of the
Owner Trustee's obligations under the Existing Operative Agreements;

     WHEREAS, the Lessor desires (a) to merge the obligations assumed by the
Lessor from the Owner Trustee and the Lessor's beneficial interest in the
Existing Notes, the Existing Holder Certificates and the Existing Operative
Agreements, (b) to continue to hold the assets of the Trust free and clear of
the Liens created under the Existing Operative Agreements, but subject to the
Liens created under the Operative Agreements and (c) to dissolve the Trust;

     WHEREAS, certain parties to this Agreement desire to amend and restate
certain of the Existing Operative Agreements pursuant to the Operative
Agreements; and

     WHEREAS, the relevant parties to this Agreement have agreed to
modifications to the Existing Operative Agreements and such other changes that
are necessary to accomplish the transaction as contemplated herein on the terms
and conditions set forth herein and in the Operative Agreements.

     NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is acknowledged,
the parties hereto agree as follows:

                                   AGREEMENT:
                                   ---------

     1.  Definitions. Capitalized terms used herein and not otherwise defined
herein shall have the meaning given to such terms in Appendix A to the
Participation Agreement and the rules of usage set forth therein shall apply
herein. The following terms shall have the meaning provided therefor in this
Section 1:

     "Assigned Facility" shall have the meaning provided therefor in Section 3
of this Agreement.

     "Assigning Parties" shall mean the Existing Lenders and the Existing
Holders.

                                       2

<PAGE>

     "Closing Date" shall mean June 30, 2003.

     "Existing Holder Certificates" shall have the meaning provided for the term
"Certificates" in Appendix A to the Existing Participation Agreement.

     "Existing Notes" shall have the meaning provided for the term "Notes" in
Appendix A to the Existing Participation Agreement.

     "Existing Operative Agreements" shall have the meaning provided for the
term "Operative Agreements" in Appendix A to the Existing Participation
Agreement.

     "Existing Participation Agreement" shall mean that certain Participation
Agreement dated as of December 31, 1998 (as amended, modified, extended,
supplemented, restated and/or replaced prior to the date hereof) by and among
Convergys Corporation, an Ohio corporation, as the lessee and as the
construction agent thereunder; the various parties thereto from time to time as
guarantors: Wells Fargo Bank Northwest, National Association (as successor to
First Security Bank, National Association), a national banking association, not
individually, except as expressly stated therein, but solely as the Owner
Trustee under the CRT Realty Trust 1998-1; the various banks and other lending
institutions which are parties thereto from time to time as holders of
certificates issued with respect to the CRT Realty Trust 1998-1; the various
banks and other lending institutions which are parties thereto from time to time
as lenders; and Bank of America, N.A.(as successor to NationsBank, N.A.,), a
national banking association, as the agent thereunder.

     "Existing Parties" shall mean collectively the Financing Parties, the
Lessee and the Guarantor, as each term is defined in Appendix A to the Existing
Participation Agreement.

     "Existing Security Documents" shall have the meaning provided for the term
"Security Documents" in Appendix A to the Existing Participation Agreement.

     "Existing Security Filings" shall mean collectively the "Lender Financing
Statements," the "Lessor Financing Statements" and the "Mortgage Instruments" as
such terms are defined in Appendix A to the Existing Participation Agreement.

     "Lessor Liens" shall have the meaning provided for the term "Lessor Liens"
in Appendix A to the Existing Participation Agreement.

     "Owner Trustee" shall mean Wells Fargo Bank Northwest, National Association
(as successor to First Security Bank, National Association), not individually,
except as expressly stated in the Existing Operative Agreements, but solely in
its capacity as the owner trustee of the Trust, and any successor, replacement
or additional Owner Trustee expressly permitted under the Existing Operative
Agreement or this Agreement.

     "Participation Agreement" shall mean the Participation Agreement dated as
of June 30, 2003 by and among Convergys Corporation, as the lessee thereunder,
the various entities which are parties thereto from time to time as guarantors
thereunder, Wachovia Development

                                       3

<PAGE>

Corporation, as the borrower or the lessor thereunder, the various financial
institutions and other institutional investors which are parties thereto from
time to time as Credit Note Purchasers thereunder, the various banks and other
lending institutions which are parties thereto from time to time as Mortgage
Lenders thereunder and Wachovia Bank, National Association, as the agent for the
Primary Financing Parties thereunder and respecting the security documents
referenced therein, as the agent for the Secured Parties referenced therein.

     "Trust" shall mean the CRT Realty Trust 1998-1.

     "Trust Company" shall mean Wells Fargo Bank Northwest, National Association
(as successor to First Security Bank, National Association), in its individual
capacity.

     2.  Assignment of Existing Notes and Existing Holder Certificates. On the
Closing Date, the Lessor agrees to purchase an assignment of each Existing Note,
each Existing Holder Certificate and, subject to the terms of this Agreement,
the rights and obligations of the Existing Holders and the Existing Lenders
under the Existing Operative Agreements from the Existing Lenders and Existing
Holders, respectively, for a price equal to the amount set forth opposite such
Assigning Party's name in Schedule 1 attached hereto. On the Closing Date,
provided Lessor or a Person on Lessor's behalf has transferred the aggregate of
all amounts set forth in Schedule 1 to the Existing Agent, on behalf of each
Assigning Party, and such amount is received by the Existing Agent no later than
12:00 noon, Charlotte, North Carolina time, then each such Assigning Party shall
convey its Existing Note, Existing Holder Certificate, and such other rights and
obligations under the Existing Operative Agreements, as applicable, pursuant to
the terms and conditions of Section 3 hereof.

     3.  Terms of Assignment of Existing Notes and Existing Holder Certificates.

         (a)  Assignment. Each Assigning Party hereby irrevocably sells and
     assigns to the Lessor without recourse to such Assigning Party, and the
     Lessor hereby irrevocably purchases and assumes from each such Assigning
     Party without recourse to such Assigning Party, as of the Closing Date, a
     one hundred percent interest in and to each such Assigning Party's rights
     and obligations under the Existing Operative Agreements, except indemnity
     rights and payments regarding occurrences prior to the Closing Date
     (including without limitation obligations pursuant to Section 11 of the
     Existing Participation Agreement) due to such Assigning Party which shall
     be retained by the applicable Assigning Party (the "Assigned Facility").

         (b)  Assigning Party Representations and Warranties. Each Assigning
     Party represents and warrants that the Assigning Party (i) is legally
     authorized to enter into this Agreement; (ii) had (as of the date of
     execution) the authority to execute the Existing Operative Agreements to
     which it is a party; (iii) has complied with, and not violated the terms of
     or failed to perform its obligations under, any of the Existing Operative
     Agreements; (iv) has no knowledge of any Default or Event of Default (as
     such terms are defined in Appendix A to the Existing Participation
     Agreement); (v) is the legal and beneficial owner of its right, title and
     interest assigned pursuant to this Agreement; (vi) has an outstanding
     principal amount equal to the amount assigned as referenced on

                                       4

<PAGE>

     Schedule 1; and (vii) has not created any adverse claim upon the interest
     being assigned by it hereunder and that such interest is free and clear of
     any such adverse claim.

         Other than as set forth in the prior paragraph of this Section 3(b),
     each Assigning Party (i) makes no representation or warranty and assumes no
     responsibility with respect to any statements, warranties or
     representations made in or in connection with the Existing Operative
     Agreements or the execution, legality, validity, enforceability,
     genuineness, sufficiency or value of the Existing Operative Agreements or
     any other instrument or document furnished pursuant thereto; (ii) makes no
     representation or warranty and assumes no responsibility with respect to
     the financial condition of the Trust, or any obligor or the performance or
     observance by the Trust, or any obligor of any of their respective
     obligations under the Existing Operative Agreements or any other instrument
     or document furnished pursuant hereto or thereto; and (iii) attaches the
     Existing Note or Existing Holder Certificate, as applicable, held by it
     evidencing the Assigned Facility. Following the execution of this
     Agreement, a copy of it will be delivered to the Existing Agent for
     acceptance by it pursuant to the applicable provisions of the Existing
     Operative Agreements; such Agreement shall be effective as of the Closing
     Date.

         (c)  Lessor Representations and Warranties. The Lessor (i) represents
     and warrants that it is legally authorized to enter into this Agreement;
     (ii) confirms that it has received copies of the Existing Operative
     Agreements, and such other documents and information as it has deemed
     appropriate to make its own credit analysis and decision to enter into this
     Agreement; (iii) agrees that it will, independently and without reliance
     upon the applicable Assigning Party, the Existing Agent or any other
     Assigning Party and based on such documents and information as it shall
     deem appropriate at the time, continue to make its own credit decisions in
     taking or not taking action under the Existing Operative Agreements or any
     other instrument or document furnished pursuant hereto or thereto; (iv)
     subject to Section 7, appoints and authorizes the Existing Agent to take
     such action as agent on its behalf and to exercise such powers and
     discretion under the Existing Operative Agreements or any other instrument
     or document furnished pursuant hereto or thereto as are delegated to the
     Existing Agent by the terms thereof, together with such powers as are
     incidental thereto; and (v) agrees that it will be bound by the provisions
     of the Existing Operative Agreements to which such Assigning Party is a
     party and will perform in accordance herewith all the obligations which by
     the terms of the Existing Operative Agreements to which such Assigning
     Party is a party are required to be performed by it as a "Lender" or
     "Holder", as applicable, pursuant to the Existing Operative Agreements,
     including without limitation, if it is organized under the laws of a
     jurisdiction outside the U.S., its obligation pursuant to Section 11.2(e)
     of the Existing Participation Agreement.

         (d)  Payments to the Lessor. Upon such acceptance and recording of the
     assignment of the Existing Notes and the Existing Holder Certificates in
     the Existing Agent's register, from and after the Closing Date, the
     Existing Agent shall make all payments (except indemnity payments regarding
     occurrences prior to the Closing Date which shall be made to the applicable
     Assigning Party or other indemnified party

                                       5

<PAGE>

     pursuant to the Existing Operative Agreements) in respect of the Assigned
     Facility (including without limitation payments of principal, interest,
     fees and other amounts, except as otherwise expressly provided herein) to
     the Lessor whether such amounts have accrued prior to the Closing Date or
     accrue subsequent to the Closing Date. The Assigning Parties and the Lessor
     shall make all appropriate adjustments in payments by the Existing Agent
     for periods prior to the Closing Date or with respect to the making of this
     assignment directly between themselves.

         (e)  Lessor as a Party. From and after the Closing Date, (i) the Lessor
     shall be a party to the applicable Existing Operative Agreements in place
     of each Assigning Party and, to the extent provided in this Agreement, have
     the rights and obligations of an Existing Lender and Existing Holder, as
     applicable, under the Existing Operative Agreements and shall be bound by
     the provisions thereof and (ii) each of the Assigning Parties shall, to the
     extent provided in this Agreement, relinquish its rights and be released
     from its obligations under the Existing Operative Agreements.

     4.  Assignment and Assumption of Lease and Other Existing Operative
Agreements. The Owner Trustee hereby irrevocably transfers and assigns to the
Lessor, and the Lessor hereby assumes, all of the Owner Trustee's right, title,
interest and obligations under or with respect to each of the Existing Operative
Agreements, including without limitation the Lease and each Lease Supplement, in
each case as such terms are defined in the Existing Participation Agreement.

     5.  Transfer of Trust Property. After the assignment of the Existing Notes
and the Existing Holder Certificates to the Lessor, the Lessor directs, in
connection with the termination and dissolution of the Trust, and the Lessee and
each Guarantor consent to such direction, the Owner Trustee to take all
necessary action to convey, assign and transfer to the Lessor all of its right,
title and interest in and to all of the Owner Trustee's and the Trust's assets
and all of the Owner Trustee's obligations and liabilities pursuant to the
Existing Operative Agreements (provided, however, (a) such conveyance shall only
include liabilities of the Owner Trustee incurred pursuant to and in compliance
with the Existing Operative Agreements and not those of the Trust Company
whether related to the Existing Operative Agreements or otherwise and (b) the
Lessor shall not have any obligation to remove or take any other action with
respect to Lessor Liens), in all cases free and clear of Lessor Liens arising
prior to such conveyance, assignment and transfer, including without limitation
the ownership, ground lease interest and all other right, title and interest in
and to the real property, personal property, improvements, fixtures, and
tangible and intangible property of the Owner Trustee or the Trust. The Owner
Trustee shall promptly cause to be taken, executed, notarized, authorized,
acknowledged, consented, and delivered, as applicable, all such further acts,
conveyances, documents, instruments and assurances to complete the conveyance
contemplated herein and to otherwise effectuate the intent and purpose of this
Agreement.

     6.  Release of Existing Security Filings and Existing Security Documents.
Except as otherwise contemplated under the Operative Agreements, the Lessor and
the Existing Agent hereby (a) release the Lien of the Existing Security Filings
and Existing Security Documents and (b) direct the Owner Trustee to, and the
Existing Agent and the Owner Trustee each agree to,

                                       6

<PAGE>

promptly cause to be taken, executed, notarized, authorized, acknowledged,
consented, and delivered, as applicable, all such further acts, conveyances,
documents, instruments and assurances to complete the conveyances contemplated
in Section 4 of this Agreement and to otherwise effectuate the intent and
purpose of this Agreement.

     7.  Merger and Termination of Trust; Amendment and Restatement of
Transactions. Promptly after completion of the transactions contemplated by
Sections 2 through 5 of this Agreement, the Lessor will be (a) the beneficial
owner of the Existing Notes and the Existing Holder Certificates and (b) the
obligor under the Existing Notes and the Existing Holder Certificates. As a
result, the Lessor shall merge the obligations and the liabilities related to
the Existing Notes and the Existing Holder Certificates and terminate the
Existing Notes and the Existing Holder Certificates. After completion of the
foregoing, the Trust shall not have a corpus and the parties hereto agree that
the Lessor, acting both as the Owner Trustee and the beneficial owner of one
hundred percent of the interests in the Trust, shall have the ability to and
shall be automatically deemed to have dissolved the Trust without further
action, provided the terms and conditions of the Existing Operative Agreements
which are expressly stated to continue after the Trust has been dissolved or the
Existing Notes and the Existing Holder Certificates are no longer outstanding
shall continue and the Lessor shall be deemed to have properly replaced the
Owner Trustee in the Existing Operative Agreements and as such the Lessor shall
have the indemnities and other benefits set forth with respect to the Owner
Trustee in the Existing Operative Agreements.

     Concurrent with the dissolution of the Trust referenced in the prior
paragraph, certain of the Existing Operative Agreements shall be amended and
restated by certain of the Operative Agreements. Those Existing Operative
Agreements which are not so amended and restated shall automatically, without
further action, be terminated.

     8.  Resignation of Existing Agent. After the Existing Agent completes its
other obligations under this Agreement, including without limitation its
obligations pursuant to Section 5 hereof, then the Existing Agent shall be
deemed to have resigned its capacity as "Agent" pursuant to the Existing
Operative Agreements, and all parties to this Agreement hereby agree that such
resignation shall be immediately effective notwithstanding any further or
additional requirement in the Existing Operative Agreements to the contrary,
including without limitation, the notice requirement in Section 7.9 of the
Credit Agreement (as defined in Appendix A to the Existing Participation
Agreement).

     9.  Conditions Precedent and Subsequent. Notwithstanding anything
contained herein to the contrary, this Agreement shall not be effective until
(a) each of the parties shall have received the executed counterpart signature
page from each party set forth below and (b) the Participation Agreement and the
other Operative Agreements specified by the Agent for execution on or prior to
the Closing Date are effective and (c) all proceedings taken in connection with
the transactions contemplated by this Agreement (including receipt of all
amounts required to be paid to the Existing Agent in connection herewith) and
all documentation and other legal matters incident thereto shall be satisfactory
to the Agent and its legal counsel, Moore & Van Allen PLLC.

                                       7

<PAGE>

     10. Continued Effectiveness of Operative Agreements. Except as modified
hereby, all of the terms and conditions of the Operative Agreements are hereby
ratified and affirmed and shall remain in full force and effect.

     11. Direction to Owner Trustee. The Owner Trustee is hereby directed to
enter into this Agreement and such other documents necessary to effectuate the
intent of this Agreement.

     12. Miscellaneous.

         (a)  Severability. Any provision of this Agreement that is prohibited
     or unenforceable in any jurisdiction shall, as to such jurisdiction, be
     ineffective to the extent of such prohibition or unenforceability without
     invalidating the remaining provisions hereof, and any such prohibition or
     unenforceability in any jurisdiction shall not invalidate or render
     unenforceable such provision in any other jurisdiction.

         (b)  Counterparts. This Agreement may be executed in any number of
     counterparts, each of which when executed and delivered shall be deemed to
     be an original and it shall not be necessary in making proof of this
     Agreement to produce or account for more than one such counterpart.
     Delivery of an executed counterpart by telecopy shall be as effective as
     delivery of a manually executed counterpart hereto and shall constitute a
     representation that an original executed counterpart will be provided.

         (c)  Headings. The headings of the various articles and sections of
     this Agreement are for convenience of reference only and shall not modify,
     define, expand or limit any of the terms or provisions hereof. Unless
     otherwise stated, references to Sections made in this Agreement shall be
     interpreted as references to the applicable Section herein.

         (d)  Fees and Expenses. The Lessee agrees to pay or reimburse all
     reasonable costs and expenses of the Existing Agent, the Lessor and the
     Owner Trustee in connection with the preparation, execution and delivery of
     this Agreement and any documents or instruments related hereto, including,
     without limitation, the reasonable fees and expenses of Moore & Van Allen
     PLLC.

         (e)  GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
     IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING
     EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF LAWS), EXCEPT TO
     THE EXTENT THE LAWS OF A STATE WHERE A PARTICULAR PROPERTY IS LOCATED ARE
     REQUIRED TO APPLY.

         (f)  JURISDICTION, VENUE AND ARBITRATION. THE PROVISIONS OF THE
     PARTICIPATION AGREEMENT RELATING TO ACTIONS AND PROCEEDINGS ARE HEREBY
     INCORPORATED BY REFERENCE HEREIN, MUTATIS MUTANDIS.

                                       8

<PAGE>

         (g)  Further Assurances. The provisions of the Participation Agreement
     relating to further assurances are hereby incorporated by reference herein,
     mutatis mutandis.

         (h)  Agreement. This Agreement shall not be terminated, amended,
     supplemented, waived, modified or discharged except by an instrument in
     writing executed by the party against which enforcement is sought.

         [The remainder of this page has been left blank intentionally.]

                                       9

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective officers thereunto duly authorized as of the
date first above written.

EXISTING OPERATIVE AGREEMENT PARTIES:

WITNESSES:                              CONVERGYS CORPORATION, as the Existing
                                        Construction Agent and as the Existing
                                        Lessee

By: /s/ Frederick W. Kindel             By: /s/ William R. Coleman
   -------------------------------         -----------------------------------
Name (Printed): Frederick W. Kindel     Name:  William R. Coleman
               -------------------           ---------------------------------
                                        Title: V.P. & Treas.
                                              --------------------------------
By: /s/ Mary Shaw Nurre
   -------------------------------
Name (Printed): Mary Shaw Nurre
               -------------------

                           (signature pages continue)

<PAGE>

WITNESSES:                              CONVERGYS CUSTOMER MANAGEMENT GROUP
                                        INC., as an Existing Guarantor

By: /s/ Frederick W. Kindel             By: /s/ William R. Coleman
   -------------------------------         -----------------------------------
Name (Printed): Frederick W. Kindel     Name:  William R. Coleman
               -------------------           ---------------------------------
                                        Title: V.P. & Treas.
                                              --------------------------------
By: /s/ Mary Shaw Nurre
   -------------------------------
Name (Printed): Mary Shaw Nurre
               -------------------

                           (signature pages continue)

<PAGE>

WITNESSES:                              CONVERGYS INFORMATION MANAGEMENT GROUP
                                        INC., as an Existing Guarantor

By: /s/ Frederick W. Kindel             By: /s/ William R. Coleman
   --------------------------------        -----------------------------------
Name (Printed): Frederick W. Kindel     Name:  William R. Coleman
               --------------------          ---------------------------------
                                        Title: V.P. & Treas.
                                              --------------------------------
By: /s/ Mary Shaw Nurre
   --------------------------------
Name (Printed): Mary Shaw Nurre
               --------------------

                           (signature pages continue)

<PAGE>

WITNESSES:                              WELLS FARGO BANK NORTHWEST, NATIONAL
                                        ASSOCIATION (as successor to First
By: /s/ Krystal Bagshaw                 Security Bank, National Association),
   ------------------------------       not individually, except as expressly
Name (Printed): Krystal Bagshaw         stated herein, but solely as the Owner
               ------------------       Trustee under the CRT Realty Trust
                                        1998-1

By: /s/ Janeen R. Higgs                 By: /s/ Val T. Orton
   ------------------------------          -----------------------------------
Name (Printed): Janeen R. Higgs         Name:  Val T. Orton
               ------------------            ---------------------------------
                                        Title: Vice President
                                              --------------------------------

                           (signature pages continue)

<PAGE>

WITNESSES:                              BANK OF AMERICA, N.A. (as successor to
                                        NationsBank, N.A.), as an Existing
                                        Lender, as an Existing Holder and as
                                        the Existing Agent

By: /s/ Edward Wilson                   By: /s/ John E. Williams
   ----------------------------            -----------------------------------
Name (Printed): Edward Wilson           Name:   John E. Williams
               ----------------              ---------------------------------
                                        Title:  Managing Director
                                              --------------------------------
By: /s/ Sarah Mitchell
   ----------------------------
Name (Printed): Sarah Mitchell
               ----------------

                           (signature pages continue)

<PAGE>

WITNESSES:                              BANK ONE NA, as an Existing Lender and
                                        as an Existing Holder

By:                                     By: /s/ Jennifer L. Jones
   ----------------------------            -----------------------------------
Name (Printed):                         Name:   Jennifer L. Jones
               ----------------              ---------------------------------
                                        Title:  Director
                                              --------------------------------
By:
   ----------------------------
Name (Printed):
               ----------------

                           (signature pages continue)

<PAGE>

WITNESSES:                              SUNTRUST BANK, as an Existing Lender
                                        and as an Existing Holder

By: /s/ Margaret Dempster               By: /s/ Brian M. Davis
   ----------------------------            -----------------------------------
Name (Printed): Margaret Dempster       Name:   Brian M. Davis
               ----------------              ---------------------------------
                                        Title:  Director
                                              --------------------------------
By: /s/ Andrew S. Lee
   ----------------------------
Name (Printed): Andrew S. Lee
               ----------------

                           (signature pages continue)

<PAGE>

OPERATIVE AGREEMENT PARTIES:

WITNESSES:                              CONVERGYS CORPORATION, as the Lessee

By: /s/ Frederick W. Kindel             By: /s/ William R. Coleman
   --------------------------------        -----------------------------------
Name (Printed): Frederick W. Kindel     Name:   William R. Coleman
               --------------------          ---------------------------------
                                        Title:  V.P. & Treas
                                              --------------------------------
By: /s/ Mary Shaw Nurre
   ----------------------------
Name (Printed): Mary Shaw Nurre
               ----------------

                           (signature pages continue)

<PAGE>

WITNESSES:                              CONVERGYS CUSTOMER MANAGEMENT GROUP
                                        INC., as a Guarantor

By: /s/ Frederick W. Kindel             By: /s/ William R. Coleman
   ----------------------------            -----------------------------------
Name (Printed):  Frederick W. Kindel    Name:  William R. Coleman
               ---------------------         ---------------------------------
                                        Title: V.P. & Treas
                                              --------------------------------
By: /s/ Mary Shaw Nurre
   ----------------------------
Name (Printed): Mary Shaw Nurre
               ----------------

                           (signature pages continue)

<PAGE>

WITNESSES:                              CONVERGYS INFORMATION MANAGEMENT GROUP
                                        INC., as a Guarantor

By: /s/ Frederick W. Kindel             By: /s/ William R. Coleman
   ----------------------------            -----------------------------------
Name (Printed): Frederick W. Kindel     Name: William R. Coleman
               --------------------          ---------------------------------
                                        Title: V.P. & Treas
                                              --------------------------------
By: /s/ Mary Shaw Nurre
   ----------------------------
Name (Printed): Mary Shaw Nurre
               ----------------

                           (signature pages continue)

<PAGE>

WITNESSES:                              WACHOVIA DEVELOPMENT CORPORATION, as
                                        the Borrower and as the Lessor

By: /s/ David Yorker                    By: /s/ Evander S. Jones, Jr.
   ----------------------------            -----------------------------------
Name (Printed): David Yorker            Name: Evander S. Jones, Jr.
               ----------------              ---------------------------------
                                        Title: Vice President
                                              --------------------------------
By: /s/ Roger Shreero
   ----------------------------
Name (Printed): Roger Shreero
               ----------------

                           (signature pages continue)

<PAGE>

WITNESSES:                              WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        as the Agent

By: /s/ Gabrielle Braverman             By: /s/ Weston R. Garrett
   ----------------------------            -----------------------------------
Name (Printed): Gabrielle Braverman     Name: Weston R. Garrett
               --------------------          ---------------------------------
                                        Title: Vice President
                                              --------------------------------
By: /s/ John Altymeyer
   ----------------------------
Name (Printed): John Altymeyer
               ----------------

                           (signature pages continue)

<PAGE>

WITNESSES:                              WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        as the Mortgage Lender

By: /s/ Gabrielle Braverman             By: /s/ Lynwood Brewer
   ----------------------------            -----------------------------------
Name (Printed): Gabrielle Braverman     Name: Lynwood Brewer
               --------------------          ---------------------------------
                                        Title: Vice President
                                              --------------------------------
By: /s/ Doug Hart
   ----------------------------
Name (Printed): Doug Hart
               ----------------

                           (signature pages continue)

<PAGE>

WITNESSES:                              METROPOLITAN LIFE INSURANCE COMPANY,
                                        as a Credit Note Purchaser

By:                                     By: /s/ Judith A. Gulotta
   ----------------------------            -----------------------------------
Name (Printed):                         Name: Judith A. Gulotta
               ----------------              ---------------------------------
                                        Title:
                                              --------------------------------
By:
   ----------------------------
Name (Printed):
               ----------------

                           (signature pages continue)

<PAGE>

WITNESSES:                             GENERAL ELECTRIC ASSURANCE COMPANY,
                                       as a Credit Note Purchaser

By: /s/ Scott Sell                     By:  GE Asset Management Incorporated,
   ----------------------------             its investment manager
Name (Printed): Scott Sell
               ----------------

By: /s/ Vanessa Ritter                 By: /s/ Stephen De Motto
   ----------------------------           -----------------------------------
Name (Printed): Vanessa Ritter         Name: Stephen De Motto
               ----------------             ---------------------------------
                                       Title: Vice President-Private Investments
                                             -----------------------------------

                           (signature pages continue)

<PAGE>

WITNESSES:                             EMPLOYERS REINSURANCE CORPORATION, as
                                       a Credit Note Purchaser

By: /s/ Scott Sell                     By:  GE Asset Management Incorporated,
   ----------------------------             its investment manager
Name (Printed): Scott Sell
               ----------------

By: /s/ Vanessa Ritter                 By: /s/ Stephen De Motto
   ----------------------------           -----------------------------------
Name (Printed): Vanessa Ritter         Name: Stephen De Motto
               ----------------             ---------------------------------
                                       Title: Vice President-Private Investments
                                             -----------------------------------

                              (signature pages end)

<PAGE>

Exhibit 10.4 to 2003 10-Q1

                                   Schedule 1
                                   ----------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------

                                    Loan Principal      Interest /     Fees / Breakage
         Party                     / Holder Amount     Holder Yield        / Other           Total
--------------------------------------------------------------------------------------------------------
<S>                                <C>               <C>               <C>               <C>
Bank of America, N.A
 (as successor to NationsBank,
 N.A.,), as an Existing Tranche
 A Lender                          $ 29,511,768.78   $     65,934.20   $     23,211.61   $ 29,600,914.59
--------------------------------------------------------------------------------------------------------
Bank of America, N.A
 (as successor to NationsBank,
 N.A.,), as an Existing Tranche
 B Lender                          $  4,146,465.79   $      9,263.91   $      3,732.97   $  4,159,462.67
--------------------------------------------------------------------------------------------------------
Bank of America, N.A
 (as successor to NationsBank,
 N.A.,), as an Existing Holder     $  1,040,976.35   $      3,236.56   $      3,172.04   $  1,047,384.95
--------------------------------------------------------------------------------------------------------
Bank One NA, as an Existing
 Tranche A Lender                  $ 16,765,081.32   $     37,455.98   $      9,562.80   $ 16,812,100.10
--------------------------------------------------------------------------------------------------------
Bank One NA, as an Existing
 Tranche B Lender                  $  2,355,527.27   $      5,262.64   $      1,347.21   $  2,362,137.12
--------------------------------------------------------------------------------------------------------
Bank One NA, as an Existing
 Holder                            $    591,359.02   $      1,838.64   $      1,577.08   $    594,774.74
--------------------------------------------------------------------------------------------------------
SunTrust Bank, as an Existing
 Tranche A Lender                  $  8,384,959.94   $     18,733.41   $      3,990.49   $  8,407,683.84
--------------------------------------------------------------------------------------------------------
SunTrust Bank, as an Existing
 Tranche B Lender                  $  1,178,105.21   $      2,632.07   $      1,683.90   $  1,182,421.18
--------------------------------------------------------------------------------------------------------
SunTrust Bank, as an Existing
 Holder                            $    295,764.90   $        919.58   $      1,968.27   $    298,652.75
--------------------------------------------------------------------------------------------------------
Wells Fargo Bank Northwest,
 National Association, as Owner
 Trustee                                                               $        450.00   $        450.00
--------------------------------------------------------------------------------------------------------
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]