Document:

EXHIBIT 10.2

FORM
OF AGREEMENT

This Agreement (this “Agreement”), dated as of
February 9, 2007, is made by and between Behringer Harvard REIT I, Inc., a
Maryland corporation (the “Company” or “Indemnitor” as the case may be), and
the person executing this Agreement (the “Officer”).  Capitalized terms used herein but not
otherwise defined herein shall have the meanings ascribed to them in the
Company’s Sixth Articles of Amendment and Restatement (as amended or restated
from time to time, the “Charter”).

R E C
I T A L S

A.            The
Company operates as a real estate investment trust (a “REIT”) for federal and
state income tax purposes.

B.            The
Company, from time to time, offers shares of its common stock pursuant to the
requirements imposed by federal and the various state laws.

C.            In
connection with complying with the various state laws known as “Blue Sky” laws,
the Company is required to comply with the Statement of Policy applicable to
REITs promulgated by the North American Securities Administrators Association,
Inc. on September 29, 1993, referred to herein as the “NASAA Guidelines.”

D.            The
Charter authorizes the Company to limit the liability of, and indemnify, its
Officers and directors to the fullest extent permitted by Maryland law.

E.             The
NASAA Guidelines impose limits, greater than those imposed by Maryland law, on
a company’s power to hold its officers harmless for loss or liability suffered
by the officers or the Company.

F.             The
Company has filed a registration statement with, among others, the Securities and
Exchange Commission and the Pennsylvania Securities Commission.

G.            The
Securities and Exchange Commission has declared effective the Company’s
registration statement.

H.            The
Pennsylvania Securities Commission, as part of its review of the registration statement,
has requested that the Company amend the Charter to provide that, to the extent
that the provisions of the Maryland General Corporation Law, as amended (the “MGCL”),
conflict with the provisions set forth in the NASAA Guidelines, the NASAA
Guidelines control to the extent any provisions of the MGCL are not mandatory.

I.              The
Pennsylvania Securities Commission has also requested that the Company amend
certain provisions of its Charter regarding conflicts between the NASAA
Guidelines and the MGCL.

J.             The
Company is willing to submit the proposals to amend the Charter to its
Stockholders; provided, however, that until the time that the
amendments to the Charter are approved by the Stockholders, and if the
amendments are not approved by the Stockholders, the Officers, including the
undersigned, have entered into the agreement set forth herein, establishing
certain rights and obligations.

NOW, THEREFORE, in consideration of the mutual
covenants and conditions hereinafter contained, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

1              Agreement
to Hold Harmless and Indemnification.

(a)           Subject to paragraphs (b), (c) and
(d) of this Section 1, the Company shall hold harmless and indemnify the
Officer from and against any liability or loss to which the Officer may become
subject or which the Officer may incur by reason of his or her services as a
Officer, director, employee or agent of the Company.

(b)           The Company shall not indemnify the
Officer or hold the Officer harmless for any loss or liability suffered by the
Company unless:

(i)            the Officers have determined, in good faith, that
the course of conduct which caused the liability or loss was in the best
interest of the Company;

(ii)           the Officer was acting on behalf of or performing
services on the part of the Company;

(iii)          the liability or loss was not the result of
negligence or misconduct on the part of the Officer;

(iv)          the indemnification is recoverable only out of the Net
Assets of the Company and not from the Stockholders; and

(v)           if required by the Charter or applicable law, the
Officers, the special legal counsel to the Company or the Stockholders have
determined that indemnification or reimbursement is proper.

(c)           Notwithstanding anything to the contrary in
paragraph (b) above, the Company shall not indemnify the Officer for
liabilities or losses arising from or out of an alleged violation of federal or
state securities laws by the
Officer unless one or more of the following conditions are met:

(i)            there has been a successful
adjudication on the merits of each count involving alleged securities law
violations as to the Officer;

(ii)           the claims have been dismissed with
prejudice on the merits by a court of competent jurisdiction as to the Officer;
or

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(iii)          a court of competent jurisdiction
approves a settlement of the claims and finds that indemnification of the
settlement and related costs incurred by the Officer should be made and the
court considering the request has been advised of the position of the
Securities and Exchange Commission and the published opinions of any state
securities regulatory authority in which securities of the Company were offered
or sold as to indemnification for violations of securities laws.

(d)           Subject to the provisions of section 1(b)-(c), the
Company shall advance amounts to the Officer for legal and other expenses and
costs incurred as a result of any legal action for which indemnification is being sought only in
accordance with Sections 2-418(e)(2), (3) and (4) of the MGCL, as amended, and
only if all of the following conditions are satisfied:

(i)            the legal action relates to acts or
omissions with respect to the performance of duties or services by the Officer
for or on behalf of the Company;

(ii)           the legal action is initiated by a
third party who is not a Stockholder or the legal action is initiated by a
Stockholder acting in his or her capacity as such and a court of competent
jurisdiction specifically approves the advancement; and

(iii)          the Officer receiving the advances
undertakes in writing to repay the advanced funds to the Company, together with
the applicable legal rate of interest thereon, in the event that the Officer is
found not to be entitled to indemnification.

(e)           The Company shall have the power to
purchase and maintain insurance or provide similar protection on behalf of the
Officer against any liability or loss asserted that was incurred in any
capacity with the Company or arising out of this status; provided, however,
that the Company shall not incur the costs of any liability insurance that
insures any Person against liability or loss for which he, she or it could not
be indemnified under the Charter.

(f)            Nothing contained in this Agreement
shall constitute a waiver by the Officer of any right that the Officer may have
against any Person under federal or state securities laws.

2.             Term.  This
Agreement shall continue until the earlier of (i) the Company obtaining
Stockholder approval of the proposed amendments to the Charter described in the
Recitals hereof, and more specifically set forth in a memorandum from the
Company’s counsel to the Pennsylvania Securities Commission, dated January 19,
2007, and approved by the board of the Pennsylvania Securities Commission at
its regularly scheduled meeting on January 23, 2007; or (ii) the Company having
a class of security that is a “covered security” as defined in the Securities
Act of 1933, 15 U.S.C. §77r (1994), as amended.

3.             Notices. 
All notices or other communications required or permitted to be given or
delivered hereunder shall be deemed to have been properly given or delivered to
the following 

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address: (i) when delivered personally or by
commercial messenger; (ii) one business day following deposit with a recognized
overnight courier service, provided the deposit occurs prior to the deadline
imposed by the overnight courier; or (iii) when transmitted, if sent by
facsimile copy, provided confirmation of receipt is received by sender and the
notice is sent by an additional method provided hereunder, in each case above
provided the notice or other communication is addressed to the intended
recipient thereof as set forth below:

	
  Indemnitor:

  	
   

  	
  Behringer Harvard REIT I, Inc.

  
	
   

  	
   

  	
  15601 Dallas Parkway

  
	
   

  	
   

  	
  Addison, TX 75001

  
	
   

  	
   

  	
  Attn: Gerald J. Reihsen, III 

  Executive Vice President – Corporate 

  Development & Legal

  
	
   

  	
   

  	
  Telephone:

  	
  (469) 341-0540

  
	
   

  	
   

  	
  Facsimile:

  	
  (214) 655-1610

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Officer:

  	
   

  	
  To the address set forth by the Officer on 

  the signature page hereto

  

 

4.             Counterparts. 
This Agreement may be executed in one or more counterparts, all or which
taken together shall constitute one and the same agreement, and shall become
effective when the counterparts have been signed by each party hereto and
delivered to the other parties hereto.

5.             Governing Law. 
This Agreement shall be construed, performed and enforced in accordance
with, and governed by, the internal laws of the State of Maryland, without
giving effect to the principles of conflicts of laws thereof.

6.             Amendments. 
This Agreement may be amended or modified, and any of the terms,
covenants, representations, warranties or conditions hereof may be waived, only
by a written instrument executed by the parties hereto, or in the case of a
waiver, by the party waiving compliance; provided that until the Company has a
class of security that is a “covered security” as described in Section 2 above,
the provisions of this Agreement may not be amended except with the approval of
the Pennsylvania Securities Commission.

7.             Headings. 
The descriptive headings in this Agreement are for reference purposes
only and shall not affect the meaning or interpretation of this Agreement.

8.             Severability. 
In the event that any part of this Agreement is declared by any court or
other judicial or administrative body to be null, void or unenforceable, said
provision shall survive to the extent it is not so declared, and all of the
other provisions of this Agreement shall remain in full force and effect.

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9.             Successor and Assigns.  All references herein to the Company
hereunder shall be deemed to include all successors and assigns of the
Company.  The Officer may not assign its
benefits hereunder to any third party beneficiaries or successors or assigns
without the prior written consent of the Company.

[SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the date first above written.

	
   

  	
  INDEMNITOR:

  
	
   

  	
   

  
	
   

  	
  Behringer Harvard REIT I, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Officer:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile:Exhibit 10.32

AMENDED AND RESTATED MORTGAGE DEED, SECURITY AGREEMENT, FIXTURE FILING,
FINANCING STATEMENT

AND ASSIGNMENT OF LEASES AND RENTS

THIS AMENDED AND RESTATED MORTGAGE DEED, SECURITY AGREEMENT, FIXTURE
FILING, FINANCING STATEMENT AND ASSIGNMENT OF LEASES AND RENTS (this “Mortgage”)
is executed as of November 15, 2006, by TRADEPORT
DEVELOPMENT II, LLC, a Connecticut limited liability company (“Mortgagor”), in
favor of, and for the use and benefit of, FIRST SUNAMERICA LIFE INSURANCE
COMPANY, a New York corporation (“Mortgagee”).

Recitals

A.      On or about July 6, 2005, Mortgagee made a
loan to Mortgagor in the original principal amount of $12,700,000.00 (the “Original
Loan”).

B.       The Original Loan is evidenced by a
Promissory Note dated July 6, 2005 (the “Original Note”), in the original
principal amount of the Original Loan executed by Mortgagor for the benefit of
Mortgagee, and is secured by, among other things, a Mortgage Deed, Security
Agreement, Fixture Filing, Financing Statement and Assignment of Leases and
Rents (the “Original Mortgage”) dated as of July 6, 2005, executed by Mortgagor
for the benefit of Mortgagee encumbering the real property and improvements
thereon and other property more particular described in the Original
Mortgage.  The Original Mortgage was
recorded on July 7, 2005, in Volume 1508 at Page 433, in the real property
records of the Town of Windsor, Connecticut.

C.       The Original Note, the Original Mortgage,
and each other document executed by Mortgagor evidencing or securing the Original
Loan, are referred to herein, collectively, as the “Original Loan Documents.”

D.       Contemporaneously herewith, Mortgagee is
making an additional advance to Mortgagor in the amount of $8,500,000.00 (the “Additional
Advance”).

E.       Mortgagee and Mortgagor have agreed and
do hereby agree to consolidate the Original Loan and the Additional Advance and
to amend and restate in their entirety the Original Loan Documents and the
Original Note, as reflected in the Loan Documents (as hereinafter defined).

F.       Mortgagor and Mortgagee acknowledge that:

(i)    the
outstanding principal balance of the Original Loan is $12,483,087.99
as of the date of this Mortgage; and

(ii)   Mortgagee
is advancing the Additional Advance to Mortgagor.

ARTICLE 1

PARTIES, PROPERTY, AND DEFINITIONS

The following terms and
references shall have the meanings indicated:

1.1     Agreement
Concerning Master Lease: 
The Agreement Concerning Master Lease dated as of July 6, 2005, by and
between Mortgagor, Mortgagee, and Guarantor.

1.2     Application:  As defined in Section 9.20.

1.3     Chattels:  All goods, fixtures, inventory, equipment,
building and other materials, supplies, and other tangible personal property of
every nature, to the extent now owned or hereafter acquired by Mortgagor and
used or intended for use in the construction, development, or operation of the
Property, together with all accessions thereto, replacements and substitutions
therefor, and proceeds thereof.

1.4     Controlling Persons:  Collectively, (a) Guarantor, (b) any other
party directly or indirectly liable for payment of the Secured Obligations,
whether as maker, endorser, guarantor, surety, general partner, or otherwise,
and (c) any successor to any of the foregoing. 
Pursuant to the foregoing, River Bend Associates, Inc., a Connecticut corporation,
is not a Controlling Person as of the date of this Mortgage.  No shareholder, officer, or director of
Guarantor shall be considered a Controlling Person.

1.5     Default:  Any matter which, with the giving of notice,
passage of time, or both, would constitute an Event of Default.

1.6     Environmental Indemnity Agreement:  The Environmental Indemnity Agreement of even
date herewith made by Mortgagor and Guarantor for the benefit of Mortgagee.

1.7     ERISA:  The Employee Retirement Income Security Act
of 1974, as amended, together with all rules and regulations issued thereunder.

1.8     Event of Default:  As defined in Article 6.

1.9     Guarantor:  Griffin Land & Nurseries, Inc., a
Delaware corporation.

1.10   Guaranty Agreement:  The Guaranty Agreement of even date herewith
made by Guarantor for the benefit of Mortgagee.

1.11   Insurance Agreement:  The Agreement Concerning Insurance
Requirements of even date herewith executed by Mortgagor for the benefit of
Mortgagee.

1.12   Intangible Personalty:  To the extent now owned or hereafter acquired
by Mortgagor, the right to use all trademarks and trade names and symbols or
logos used in connection therewith, or any modifications or variations thereof,
in connection with the operation of the improvements existing or to be constructed
on the Property, together with all accounts, deposit accounts, letter of credit
rights, investment property, monies in the possession of

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Mortgagee
(including without limitation proceeds from insurance, retainages and deposits
for taxes and insurance), Permits, contract rights (including, without
limitation, rights to receive insurance proceeds) and general intangibles
(whether now owned or hereafter acquired, and including proceeds thereof)
relating to or arising from Mortgagor’s ownership, use, operation, leasing, or
sale of all or any part of the Property, specifically including but in no way
limited to any right which Mortgagor may have or acquire to transfer any
development rights from the Property to other real property, and any
development rights which may be so transferred.

1.13   Lease Certificate:  The certificate of even date herewith made by
Mortgagor to Mortgagee concerning Leases.

1.14   Leases:  Any and all leases, subleases and other
agreements under the terms of which any person other than Mortgagor has or
acquires any right to occupy or use the Property, or any part thereof.

1.15   Loan:  The loan from Mortgagee to Mortgagor
evidenced by the Note.

1.16   Loan Documents:  The Note, all of the deeds of trust,
mortgages and other instruments and documents securing or executed and
delivered in connection with the Note, including this Mortgage; the Insurance
Agreement; the Environmental Indemnity Agreement; the Guaranty Agreement; the
Lease Certificate; Agreement Concerning Master Lease; Tenant Improvements and
Leasing Commissions Escrow Agreement; and each other document executed or
delivered in connection with the transaction pursuant to which the Note has
been executed and delivered.  The term “Loan
Documents” also includes all modifications, extensions, renewals, and
replacements of each document referred to above.

1.17   Mortgagee:  The Mortgagee named in the introductory
paragraph of this Mortgage, whose legal address is c/o AIG Global Investment
Corp., 1 SunAmerica Center, 38th Floor, Century City, Los Angeles, California
90067-6022, together with any future holder of the Note.

1.18   Mortgagor:  The Mortgagor named in the introductory
paragraph of this Mortgage (Organizational I.D. No. 0814512), whose legal
address is 204 West Newberry Road, Bloomfield, Connecticut 06002-1308, together
with any future owner of the Property or any part thereof or interest therein.

1.19   Note:  Mortgagor’s, Amended and Restated Promissory
Note of even date herewith, payable to the order of Mortgagee in the principal face
amount of $20,983,087.99,
the last payment under which is due on August 1, 2015, or, if extended by
Mortgagee pursuant to its terms, August 1, 2020, unless such due date is
accelerated, together with all renewals, extensions and modifications of such promissory
note.  All terms and provisions of the
Note are incorporated by this reference in this Mortgage.

1.20   Permits:  All permits, licenses, certificates and
authorizations necessary for the beneficial development, ownership, use,
occupancy, operation and maintenance of the Property.

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1.21   Permitted Exceptions:  The matters (excluding matters of survey) set
forth in Schedule B-I of the title insurance policy insuring the lien
created by this Mortgage, in form and substance satisfactory to, and accepted
by, Mortgagee, that Mortgagor has caused to be delivered to Mortgagee in
connection with the Loan.

1.22   Property:  The tract or tracts of land described in Exhibit
A attached, together with the following:

(a)   All
buildings, structures, and improvements now or hereafter located on such tract
or tracts, as well as all rights-of-way, easements, and other appurtenances
thereto;

(b)   All of
Mortgagor’s right, title, and interest in and to any land lying between the
boundaries of such tract or tracts and the center line of any adjacent street,
road, avenue, or alley, whether opened or proposed;

(c)   All of the
rents, income, receipts, revenues, issues and profits of and from such tract or
tracts and improvements;

(d)   To the
extent now owned or hereafter acquired by Mortgagor, all (i) water and water
rights (whether decreed or undecreed, tributary, nontributary or not
nontributary, surface or underground, or appropriated or unappropriated); (ii)
ditches and ditch rights; (iii) spring and spring rights; (iv) reservoir and
reservoir rights; and (v) shares of stock in water, ditch and canal companies
and all other evidence of such rights, and which are appurtenant to or which
have been used in connection with such tract or tracts or improvements;

(e)   Any
minerals, crops, timber, trees, shrubs, flowers, and landscaping features now
or hereafter located on, under or above such tract or tracts;

(f)    Subject to
the rights of any utility or public service provider, all machinery, apparatus,
equipment, fittings, fixtures (whether actually or constructively attached, and
including all trade, domestic, and ornamental fixtures) now or hereafter
located in, upon, or under such tract or tracts or improvements and used or
usable in connection with any present or future operation thereof, including
but not limited to all heating, air-conditioning, freezing, lighting, laundry,
incinerating and power equipment; engines; pipes; pumps; tanks; motors;
conduits; switchboards; plumbing, lifting, cleaning, fire prevention, fire
extinguishing, refrigerating, ventilating, cooking, and communications
apparatus; boilers, water heaters, ranges, furnaces, and burners; appliances;
vacuum cleaning systems; elevators; escalators; shades; awnings; screens; storm
doors and windows; stoves; refrigerators; attached cabinets; partitions; ducts
and compressors; rugs and carpets; draperies; and all additions thereto and
replacements therefor, except any such items owned by tenants under Leases or
leased by such tenants from any entity other than Mortgagor;

(g)   Any
development rights associated with such tract or tracts, whether previously or
subsequently transferred to such tract or tracts from other real property or
now or hereafter susceptible of transfer from such tract or tracts to other
real property;

(h)   Subject to
the rights of tenants under Leases, any awards and payments, including interest
thereon, resulting from the exercise of any right of eminent domain

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or any other
public or private taking of, injury to, or decrease in the value of, any of
such property; and

(i)    Any other
and greater rights and interests of every nature in such tract or tracts and in
the possession or use thereof and income therefrom, to the extent now owned or
subsequently acquired by Mortgagor.

1.23   Secured Obligations:  The principal sum of $20,983,087.99
and all other present and future obligations of Mortgagor to Mortgagee
evidenced by or contained in the Note, the Environmental Indemnity Agreement,
this Mortgage and all other Loan Documents, whether stated in the form of
promises, covenants, representations, warranties, conditions, or prohibitions
or in any other form.  If the maturity of
the Note secured by this Mortgage is accelerated, the Secured Obligations shall
include an amount equal to any prepayment premium which would be payable under
the terms of the Note as if the Note were prepaid in full on the date of the
acceleration.  If under the terms of the
Note no voluntary prepayment would be permissible on the date of such
acceleration, then the prepayment fee or premium to be included in the Secured
Obligations shall be equal to one hundred fifty percent (150%) of the highest
prepayment fee or premium set forth in the Note, calculated as of the date of
such acceleration, as if prepayment were permitted on such date.

1.24   State:  The State in which the Property is located.

1.25   Tenant Improvements and Leasing Commissions
Escrow Agreement:  The
Tenant Improvements and Leasing Commissions Escrow Agreement dated as of July
6, 2005 by and between Mortgagor, Mortgagee, and the “Escrow Agent” named
therein.

ARTICLE 2

GRANTING CLAUSE

2.1     Grant to Mortgagee.  As security for the Secured Obligations,
Mortgagor hereby gives, grants, bargains, sells, conveys, mortgages, assigns,
confirms and warrants unto Mortgagee the entire right, title, interest and
estate of Mortgagor in and to the Property, whether now owned or hereafter
acquired; TO HAVE AND TO HOLD the same, together with all and singular the
rights, hereditaments, and appurtenances in anywise appertaining or belonging
thereto, unto Mortgagee and Mortgagee’s successors, substitutes and assigns
forever, to its and their own proper use and behoof.

2.2     Security Interest to Mortgagee.  As additional security for the Secured
Obligations, Mortgagor hereby grants to Mortgagee a security interest in the
Property, Chattels and Intangible Personalty. 
To the extent any of the Property, Chattels or the Intangible Personalty
may be or have been acquired with funds advanced by Mortgagee under the Loan
Documents, this security interest is a purchase money security interest.  This Mortgage constitutes a Security
Agreement under the Uniform Commercial Code of the state in which the Property
is located (the “Code”) with respect to any part of the Property, Chattels and
Intangible Personalty that may or might now or hereafter be or be deemed to be
personal property, fixtures or property other than real estate (all
collectively hereinafter called “Collateral”); all of the terms, provisions,
conditions and agreements contained in this Mortgage pertain and apply to the

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Collateral as
fully and to the same extent as to any other property comprising the Property,
and the following provisions of this Section shall not limit the generality or
applicability of any other provisions of this Mortgage but shall be in addition
thereto:

(a)   The
Collateral shall be used by Mortgagor solely for business purposes, and all
Collateral (other than the Intangible Personalty) shall be installed upon the
real estate comprising part of the Property for Mortgagor’s own use or as the
equipment and furnishings furnished by Mortgagor, as landlord, to tenants of
the Property;

(b)   Subject to Section 5.7 below, the Collateral (other
than the Intangible Personalty) shall be kept at the real estate comprising a
part of the Property, and shall not be removed therefrom without the consent of
Mortgagee (being the Secured Party as that term is used in the Code); and the
Collateral (other than the Intangible Personalty) may be affixed to such real
estate but shall not be affixed to any other real estate;

(c)   No
financing statement covering any of the Collateral or any proceeds thereof is
on file in any public office; and Mortgagor will, at its cost and expense, upon
demand, furnish to Mortgagee such further information and will execute and
deliver to Mortgagee such financing statements and other documents in form
satisfactory to Mortgagee and will do all such acts and things as Mortgagee may
at any time or from time to time reasonably request or as may be necessary or
appropriate to establish and maintain a perfected first-priority security
interest in the Collateral as security for the Secured Obligations, subject to
no adverse liens or encumbrances; and Mortgagor will pay the cost of filing the
same or filing or recording such financing statements or other documents and
this instrument in all public offices wherever filing or recording is deemed by
Mortgagee to be necessary or desirable;

(d)   The terms
and provisions contained in this Section and in Section 7.6 of this Mortgage shall, unless the context
otherwise requires, have the meanings and be construed as provided in the Code;
and

(e)   This
Mortgage constitutes a financing statement under the Code with respect to the
Collateral.  As such, this Mortgage
covers all items of the Collateral that are or are to become fixtures.  The filing of this Mortgage in the real
estate records of Windsor, Connecticut, where the Property is located shall
constitute a fixture filing in accordance with the Code.  Information concerning the security interests
created hereby may be obtained at the addresses set forth in Article 1 of this Mortgage.  Mortgagor is the “Debtor” and Mortgagee is
the “Secured Party” (as those terms are defined and used in the Code) insofar
as this Mortgage constitutes a financing statement.

THE CONDITION OF
THIS DEED IS SUCH THAT Mortgagor is indebted to Mortgagee in the principal sum
of TWENTY MILLION NINE HUNDRED EIGHTY—THREE THOUSAND EIGHTY SEVEN
and 99/100THS
DOLLARS, as evidenced by the Note and is indebted for the other Secured
Obligations, and Mortgagor further covenants and agrees as follows:

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ARTICLE 3

MORTGAGOR’S REPRESENTATIONS AND WARRANTIES

3.1     Warranty of Title.  Mortgagor represents and warrants to
Mortgagee that:

(a)   Mortgagor
has good and marketable fee simple title to the Property, and such fee simple
title is free and clear of all liens, encumbrances, security interests and
other claims whatsoever, subject only to the Permitted Exceptions;

(b)   Mortgagor
is the sole and absolute owner of the Chattels and the Intangible Personalty,
free and clear of all liens, encumbrances, security interests and other claims
whatsoever, subject only to the Permitted Exceptions;

(c)   This
Mortgage is a valid and enforceable first lien and security interest on the
Property, Chattels and Intangible Personalty, subject only to the Permitted
Exceptions;

(d)   Mortgagor,
for itself and its successors and assigns, hereby agrees to warrant and forever
defend, all and singular of the property and property interests granted and
conveyed pursuant to this Mortgage, against every person whomsoever lawfully
claiming, or to claim, the same or any part thereof; and

The representations,
warranties and covenants contained in this Section shall survive foreclosure of
this Mortgage, and shall inure to the benefit of and be enforceable by any
person who may acquire title to the Property, the Chattels, or the Intangible
Personalty pursuant to any such foreclosure.

3.2     Due Authorization.  If Mortgagor is other than a natural person,
then each individual who executes this document on behalf of Mortgagor
represents and warrants to Mortgagee that such execution has been duly
authorized by all necessary corporate, partnership, limited liability company
or other action on the part of Mortgagor. 
Mortgagor represents that Mortgagor has obtained all consents and
approvals required in connection with the execution, delivery and performance
of this Mortgage;

3.3     Other Representations and Warranties.  Mortgagor represents and warrants to
Mortgagee as follows:

(a)   Mortgagor
is a limited liability company, duly organized, validly existing and in good
standing under the laws of the State of Connecticut.  The sole Controlling Person of Mortgagor is
Guarantor.  Guarantor is a corporation,
duly organized, validly existing and in good standing under the laws of the
State of Delaware;

(b)   The
execution, delivery and performance by Mortgagor of the Loan Documents are
within Mortgagor’s power and authority and have been duly authorized by all
necessary action;

(c)   This
Mortgage is, and each other Loan Document to which Mortgagor or Guarantor is a
party will, when delivered hereunder, be valid and binding obligations of
Mortgagor and Guarantor enforceable against Mortgagor and Guarantor in
accordance with their

 7
 

respective terms,
except as limited by equitable principles and bankruptcy, insolvency and
similar laws affecting creditors’ rights;

(d)   The
execution, delivery and performance by Mortgagor and Guarantor of the Loan
Documents will not contravene any contractual or other restriction binding on
or affecting Mortgagor or any Controlling Person and will not result in or
require the creation of any lien, security interest, other charge or
encumbrance (other than pursuant hereto) upon or with respect to any of its
properties;

(e)   The
execution, delivery and performance by Mortgagor and Guarantor of the Loan
Documents does not contravene any applicable law;

(f)    No
authorization, approval, consent or other action by, and no notice to or filing
with, any court, governmental authority or regulatory body is required for the
due execution, delivery and performance by Mortgagor and Guarantor of any of
the Loan Documents or the effectiveness of any assignment of any of Mortgagor’s
rights and interests of any kind to Mortgagee;

(g)   No part of
the Property, Chattels, or Intangible Personalty is in the hands of a receiver,
no application for a receiver is pending with respect to any portion of the
Property, Chattels, or Intangible Personalty, and no part of the Property,
Chattels, or Intangible Personalty is subject to any foreclosure or similar
proceeding;

(h)   Neither
Mortgagor nor any Controlling Person has made any assignment for the benefit of
creditors, nor has Mortgagor or any Controlling Person filed, or had filed
against it, any petition in bankruptcy;

(i)    There is
no pending or, to the best of Mortgagor’s knowledge, threatened, litigation,
action, proceeding or investigation, including, without limitation, any
condemnation proceeding, against Mortgagor or the Property before any court,
governmental or quasi-governmental, arbitrator or other authority, and no such
action against any Controlling Person which could have a material adverse
effect on its financial condition;

(j)    Mortgagor
is a “non-foreign person” within the meaning of Sections 1445 and 7701 of the
United States Internal Revenue Code of 1986, as amended, and the regulations
issued thereunder;

(k)   Access to
and egress from the Property are available and provided by public streets, and
Mortgagor has no knowledge of any federal, state, county, municipal or other
governmental plans to change the highway or road system in the vicinity of the
Property or to restrict or change access from any such highway or road to the
Property which would adversely affect the Property, access to the Property or
the operation of the Property as it is currently being used;

(l)    All public
utility services necessary for the operation of all improvements constituting
part of the Property for their intended purposes are available at the
boundaries of the land constituting part of the Property, including water
supply, storm and sanitary sewer facilities, and natural gas, electric and
telephone facilities;

 8
 

(m)  The Property
is located in a zoning district designated I-1 (Industrial Zone), by the Town
of Windsor, Connecticut.  Such
designation permits the development, use and operation of the Property as it is
currently operated as a permitted, and not as a non-conforming use.  Mortgagor’s use of the Property and the uses
of the Property permitted to tenants under Leases comply in all respects with
all zoning ordinances, regulations, requirements, conditions and restrictions,
including but not limited to deed restrictions and restrictive covenants,
applicable to the Property;

(n)   There are
no special or other assessments for public improvements or otherwise now
affecting the Property, nor does Mortgagor know of any pending or threatened
special assessments affecting the Property or any contemplated improvements
affecting the Property that may result in special assessments.  There are no tax abatements or exceptions
affecting the Property;

(o)   Mortgagor
and each Controlling Person has filed all tax returns it is required to have
filed, and has paid all taxes as shown on such returns or on any assessment
received pertaining to the Property;

(p)   Mortgagor
has not received any notice from any governmental body having jurisdiction over
the Property as to any violation of any applicable law, or any notice from any
insurance company or inspection or rating bureau setting forth any requirements
as a condition to the continuation of any insurance coverage on or with respect
to the Property or the continuation thereof at premium rates existing at
present which have not been remedied or satisfied;

(q)   Neither
Mortgagor nor any Controlling Person is in default, in any manner which would
adversely affect its properties, assets, operations or condition (financial or
otherwise), in the performance, observance or fulfillment of any of the
obligations, covenants or conditions set forth in any agreement or instrument
to which it is a party or by which it or any of its properties, assets or
revenues are bound;

(r)    Except as
set forth in the Lease Certificate, there are no occupancy rights (written or
oral), Leases or tenancies (other than subleases) presently affecting any part
of the Property.  To Mortgagor’s
knowledge, there are no subleases presently affecting any part of the
Property.  The Lease Certificate contains
a true and correct description of all Leases presently affecting the Property
(other than subleases).  No written or
oral agreements or understandings exist between Mortgagor and the tenants under
the Leases described in the Lease Certificate that grant such tenants any
rights greater than those described in the Lease Certificate or that are in any
way inconsistent with the rights described in the Lease Certificate;

(s)   There are
no purchase options, purchase contracts or other similar agreements of any type
(written or oral) presently affecting any part of the Property;

(t)    There
exists no brokerage agreement with respect to any part of the Property, except
as otherwise disclosed to Mortgagee in writing;

(u)   Except as
otherwise disclosed to Mortgagee in writing prior to the date hereof, (i) there
are no contracts presently affecting the Property (“Contracts”) having a term
in

 9
 

excess of one
hundred eighty (180) days or not terminable by Mortgagor (without penalty) on
thirty (30) days’ notice; (ii) Mortgagor has heretofore delivered to Mortgagee
true and correct copies of each of the Contracts together with all amendments
thereto; (iii) Mortgagor is not in default of any obligations under any of the
Contracts; and (iv) the Contracts represent the complete agreement between
Mortgagor and such other parties as to the services to be performed or materials
to be provided thereunder and the compensation to be paid for such services or
materials, as applicable, and except as otherwise disclosed herein, such other
parties possess no unsatisfied claims against Mortgagor.  Mortgagor is not in default under any of the
Contracts and no event has occurred which, with the passing of time or the
giving of notice, or both, would constitute a default under any of the
Contracts;

(v)   Mortgagor
has obtained all Permits required to be obtained by Mortgagor for the operation,
use, ownership, development, occupancy and maintenance of the Property as an
industrial distribution center, as it is currently being operated.  None of the Permits has been suspended or
revoked, and all of the Permits are in full force and effect, are fully paid
for, and Mortgagor has made or will make application for renewals of any of the
Permits prior to the expiration thereof;

(w)  All
insurance policies held by Mortgagor relating to or affecting the Property are
in full force and effect, and Mortgagor shall keep the property fully insured
as required hereunder until all Secured Obligations are satisfied.  Mortgagor has not received any notice of
default or notice terminating or threatening to terminate any such insurance
policies.  Mortgagor has made or will
make application for renewals of any of such insurance policies prior to the
expiration thereof;

(x)    Mortgagor
currently complies with ERISA.  Neither
the making of the Loan and secured by this Mortgage nor the exercise by
Mortgagee of any of its rights under the Loan Documents constitutes or will
constitute a non-exempt, prohibited transaction under ERISA; and

(y)   Mortgagor’s
exact legal name is correctly set out in the introductory paragraph of this
Mortgage.  Mortgagor’s organizational
identification number is correctly set forth in the definition of “Mortgagor”
set forth in Article 1
hereof.  Mortgagor’s location (as such
term is used in Section 5.8
hereof) is the State of Connecticut.

(z)    To the
best of Mortgagor’s knowledge, (i) no part of the Property has, at any time
during the period of three (3) years immediately preceding the date hereof,
been included in the “property description” of any real estate contiguous with
the Property (within the meaning of §22a–452a(c) of the Connecticut General
Statutes), (ii) no part of the Property is or has been an “establishment” or a “service
station” under §22a–134 – et seq. –
of the Connecticut General Statutes, and (iii) except as disclosed on the
Environmental Assessment (as defined in the Environmental Indemnity Agreement),
no part of the Property contains or has ever contained any underground storage
tanks or facilities (as such terms are defined in §22a–449(d) – and §22a-449(d)–101
of the Regulations of the State of Connecticut.

3.4     Continuing Effect.  Mortgagor shall be liable to Mortgagee for
any damage suffered by Mortgagee if any of the foregoing representations are
inaccurate as of the date

 10

hereof, regardless
of when such inaccuracy may be discovered by, or result in harm to,
Mortgagee.  Mortgagor further represents
and warrants that the foregoing representations and warranties, as well as all
other representations and warranties of Mortgagor to Mortgagee relative to the
Loan Documents, shall survive termination of this Mortgage.

ARTICLE 4

MORTGAGOR’S AFFIRMATIVE COVENANTS

4.1     Payment of Note.  Mortgagor will pay all principal, interest,
and other sums payable under the Note, on the date when such payments are due,
without notice or demand.

4.2     Performance of Other Obligations.  Mortgagor will promptly and strictly perform
and comply with all other covenants, conditions, and prohibitions required of
Mortgagor by the terms of the Loan Documents.

4.3     Other Encumbrances.  Mortgagor will promptly and strictly perform
and comply with all covenants, conditions, and prohibitions required of
Mortgagor in connection with any other encumbrance affecting the Property, the
Chattels, or the Intangible Personalty, or any part thereof, or any interest
therein, regardless of whether such other encumbrance is superior or
subordinate to the lien hereof.

4.4     Payment
of Taxes.

(a)   Property Taxes.  Unless Mortgagor is depositing money into
escrow pursuant to Section 4.4(b),
Mortgagor will (i) pay, before delinquency, all taxes and assessments, general
or special, which may be levied or imposed at any time against Mortgagor’s
interest and estate in the Property, the Chattels, or the Intangible
Personalty, and (ii) within ten (10) days after each payment of any such tax or
assessment, Mortgagor will deliver to Mortgagee, without notice or demand, an
official receipt for such payment.  At
Mortgagee’s option, Mortgagee may retain the services of a firm to monitor the
payment of all taxes and assessments relating to the Property.  The cost of such services shall be borne by
Mortgagor unless Mortgagor is making deposits pursuant to Section 4.4(b).

(b)   Deposit for Taxes.  On or before the date hereof, Mortgagor shall
deposit with Mortgagee an amount equal to 1/12th of the amount which Mortgagee
estimates will be required to make the next annual payment of taxes,
assessments, and similar governmental charges referred to in this Section,
multiplied by the number of whole or partial months that have elapsed since the
date one month prior to the most recent due date for such taxes, assessments
and similar governmental charges. 
Thereafter, with each monthly payment under the Note, Mortgagor shall
deposit with Mortgagee an amount equal to 1/12th of the amount which Mortgagee
estimates will be required to pay the next annual payment of taxes,
assessments, and similar governmental charges referred to in this Section.  The purpose of these provisions is to provide
Mortgagee with sufficient funds on hand to pay all such taxes, assessments, and
other governmental charges thirty (30) days before the date on which they
become past due.  If the Mortgagee, in
its sole discretion, determines that the funds escrowed hereunder are, or will
be, insufficient, Mortgagor shall upon demand pay such additional sums as
Mortgagee shall determine necessary and shall pay any increased monthly charges
requested by

 11
 

Mortgagee.  Provided no Default or Event of Default
exists hereunder, Mortgagee will apply the amounts so deposited to the payment
of such taxes, assessments, and other charges when due, but in no event will
Mortgagee be liable for any interest on any amount so deposited, and any amount
so deposited may be held and commingled with Mortgagee’s own funds.

(c)   Intangible Taxes.  If by reason of any statutory or
constitutional amendment or judicial decision adopted or rendered after the
date hereof, any tax, assessment, or similar charge is imposed against the
Note, Mortgagee, or any interest of Mortgagee in any real or personal property
encumbered hereby, Mortgagor will pay such tax, assessment, or other charge
before delinquency and will indemnify Mortgagee against all loss, expense, or
diminution of income in connection therewith. 
In the event Mortgagor is unable to do so, either for economic reasons
or because the legal provisions or decisions creating such tax, assessment or
charge forbid Mortgagor from doing so, then the Note will, at Mortgagee’s
option, become due and payable in full upon thirty (30) days’ notice to
Mortgagor.

(d)   Right to Contest.  Notwithstanding any other provision of this
Section, Mortgagor will not be deemed to be in default solely by reason of
Mortgagor’s failure to pay any tax, assessment or similar governmental charge
so long as, in Mortgagee’s reasonable judgment, each of the following
conditions is satisfied:

(i)      Mortgagor
is engaged in and diligently pursuing in good faith administrative or judicial
proceedings appropriate to contest the validity or amount of such tax, assessment,
or charge; and

(ii)     Mortgagor’s
payment of such tax, assessment, or charge would necessarily and materially
prejudice Mortgagor’s prospects for success in such proceedings; and

(iii)    Nonpayment
of such tax, assessment, or charge will not result in the loss or forfeiture of
any property encumbered hereby or any interest of Mortgagee therein; and

(iv)    Mortgagor
deposits with Mortgagee, as security for such payment which may ultimately be
required, a sum equal to the amount of the disputed tax, assessment or charge
plus the interest, penalties, advertising charges, and other costs which
Mortgagee estimates are likely to become payable if Mortgagor’s contest is
unsuccessful.

If Mortgagee
determines that any one or more of such conditions is not satisfied or is no
longer satisfied, Mortgagor will pay the tax, assessment, or charge in
question, together with any interest and penalties thereon, within ten (10)
days after Mortgagee gives notice of such determination.

4.5     Maintenance
of Insurance.

(a)   Coverages Required.  Mortgagor shall maintain or cause to be
maintained, with financially sound and reputable insurance companies or
associations satisfactory to Mortgagee, all insurance required under the terms
of the Insurance Agreement,

 12
 

and shall comply
with each and every covenant and agreement contained in the Insurance
Agreement.

(b)   Renewal Policies.  Not less than five (5) days prior to the
expiration date of each insurance policy required pursuant to the Insurance
Agreement, Mortgagor will deliver to Mortgagee an appropriate renewal binder or
policy (or a certified copy thereof), together with evidence satisfactory to
Mortgagee that the applicable premium has been prepaid, which evidence may
follow up to ten (10) days after such payment has been made.

(c)   Deposit for Premiums.  Upon written demand made by Mortgagee
following the occurrence of any Event of Default, Mortgagor shall deposit with
Mortgagee an amount equal to 1/12th of the amount which Mortgagee estimates will
be required to make the next annual payments of the premiums for the policies
of insurance referred to in this Section, multiplied by the number of whole and
partial months which have elapsed since the date one month prior to the most
recent policy anniversary date for each such policy.  Thereafter, with each monthly payment under
the Note, Mortgagor will deposit an amount equal to 1/12th of the amount which
Mortgagee estimates will be required to pay the next required annual premium
for each insurance policy referred to in this Section.  The purpose of these provisions is to provide
Mortgagee with sufficient funds on hand to pay all such premiums thirty (30)
days before the date on which they become past due.  If the Mortgagee, in its sole discretion,
determines that the funds escrowed hereunder are, or will be, insufficient,
Mortgagor shall upon demand pay such additional sums as Mortgagee shall
determine necessary and shall pay any increased monthly charges requested by
Mortgagee.  Provided no Default or Event
of Default exists hereunder, Mortgagee will apply the amounts so deposited to
the payment of such insurance premiums when due, but in no event will Mortgagee
be liable for any interest on any amounts so deposited, and the money so
received may be held and commingled with Mortgagee’s own funds.

(d)   Application of Hazard
Insurance Proceeds.  Mortgagor shall
promptly notify Mortgagee of any damage or casualty to all or any portion of
the Property or Chattels.  Mortgagee may
participate in all negotiations and appear and participate in all judicial
arbitration proceedings concerning any insurance proceeds which may be payable
as a result of such casualty or damage, and may, in Mortgagee’s reasonable
discretion following any Event of Default, compromise or settle, in the name of
Mortgagee, Mortgagor, or both any claim for any such insurance proceeds.  Any such insurance proceeds in excess of
$500,000.00 shall be paid to Mortgagee and shall be applied first to reimburse
Mortgagee for all costs and expenses, including attorneys’ fees, incurred by
Mortgagee in connection with the collection of such insurance proceeds.  The balance of any insurance proceeds
received by Mortgagee with respect to an insured casualty may, in Mortgagee’s
sole discretion, either (i) be retained and applied by Mortgagee toward payment
of the Secured Obligations, or (ii) be paid over, in whole or in part and
subject to such commercially reasonable construction related advancement
conditions as Mortgagee may impose, to Mortgagor to pay for repairs or
replacements necessitated by the casualty; provided, however, that if all of
the Secured Obligations have been performed or are discharged by the
application of less than all of such insurance proceeds, then any remaining
proceeds will be paid over to Mortgagor. 
Notwithstanding the preceding sentence, if (A) no Default or Event of
Default shall exist hereunder, and (B) the proceeds received by Mortgagee
(together with any other funds delivered by Mortgagor to Mortgagee for such
purpose) shall be sufficient, in Mortgagee’s reasonable judgment, to pay for
any restoration necessitated by the

 13
 

casualty, and (C)
either Mortgagor is obligated under the terms of any Lease to restore or repair
the Property or the annual income from Leases that will survive restoration
provide a forward-looking Debt Service Coverage Ratio (as defined in the
Agreement Concerning Master Lease) of at least 1.05 upon completion of
restoration, and Mortgagor demonstrates to Mortgagee’s reasonable satisfaction
that it will be able to attain a forward-looking Debt Service Coverage Ration
of at least 1.20 times the annual debt service from Leases within six months
after completion of restoration, and (D) such restoration can be completed, in
Mortgagee’s judgment, at least ninety (90) days prior to the maturity date of
the Note, then Mortgagee shall apply such proceeds as provided in clause (ii)
of the preceding sentence.  Mortgagee
will have no obligation to see to the proper application of any insurance
proceeds paid over to Mortgagor, nor will any such proceeds received by
Mortgagee bear interest or be subject to any other charge for the benefit of
Mortgagor.  Mortgagee may, prior to the
application of insurance proceeds, commingle them with Mortgagee’s own funds
and otherwise act with regard to such proceeds as Mortgagee may determine in
Mortgagee’s sole discretion.

(e)   Successor’s Rights.  Any person who acquires title to the Property
or the Chattels upon foreclosure hereunder will succeed to all of Mortgagor’s
rights under all policies of insurance maintained pursuant to this Section.

4.6     Maintenance and Repair of Property and
Chattels.  Mortgagor
will at all times maintain the Property and the Chattels in good condition and
repair, will diligently prosecute the completion of any building or other
improvement which is at any time in the process of construction on the
Property, and will promptly repair, restore, replace, or rebuild any part of
the Property or the Chattels which may be affected by any casualty or any
public or private taking or injury to the Property or the Chattels.  All costs and expenses arising out of the
foregoing shall be paid by Mortgagor whether or not the proceeds of any
insurance or eminent domain shall be sufficient therefor.  Mortgagor will comply with all statutes,
ordinances, and other governmental or quasi-governmental requirements and
private covenants relating to the ownership, construction, use, or operation of
the Property, including but not limited to any environmental or ecological
requirements; provided, that so long as Mortgagor is not otherwise in default
hereunder, Mortgagor may, upon providing Mortgagee with security reasonably
satisfactory to Mortgagee, proceed diligently and in good faith to contest the
validity or applicability of any such statute, ordinance, or requirement.  Mortgagee and any person authorized by
Mortgagee may enter and inspect the Property at all reasonable times, and may
inspect the Chattels, wherever located, at all reasonable times.

4.7     Leases.  Mortgagor shall timely pay and perform each
of its obligations under or in connection with the Leases, and shall otherwise
pay such sums and take such action as shall be necessary or required in order
to maintain each of the Leases in full force and effect in accordance with its
terms.  Mortgagor shall immediately
furnish to Mortgagee copies of any notices given to Mortgagor by the lessee
under any Lease, alleging the default by Mortgagor in the timely payment or
performance of its obligations under such Lease and any subsequent
communication related thereto.  Mortgagor
agrees that Mortgagee, in its sole discretion, may advance any sum or take any
action which Mortgagee believes is necessary or required to maintain the Leases
in full force and effect, and all such sums advanced by Mortgagee, together
with all costs and expenses incurred by Mortgagee in connection with action
taken by Mortgagee pursuant to this Section, shall be due and payable by
Mortgagor to Mortgagee upon demand,

 14
 

shall bear
interest until paid at the Default Rate (as defined in the Note), and shall be
secured by this Mortgage.

4.8     Eminent Domain; Private Damage.  If all or any part of the Property is taken
or damaged by eminent domain or any other public or private action, Mortgagor
will notify Mortgagee promptly of the time and place of all meetings, hearings,
trials, and other proceedings relating to such action.  Mortgagee may participate in all negotiations
and appear and participate in all judicial or arbitration proceedings
concerning any award or payment which may be due as a result of such taking or
damage, and may, in Mortgagee’s reasonable discretion following any Event of
Default, compromise or settle, in the names of both Mortgagor and Mortgagee,
any claim for any such award or payment. 
Any such award or payment in excess of $500,000.00 is to be paid to
Mortgagee and will be applied first to reimburse Mortgagee for all costs and
expenses, including attorneys’ fees, incurred by Mortgagee in connection with
the ascertainment and collection of such award or payment.  The balance, if any, of such award or payment
may, in Mortgagee’s sole discretion, either (a) be retained by Mortgagee and
applied toward the Secured Obligations, or (b) be paid over, in whole or in
part and subject to such commercially reasonable construction related
advancement conditions as Mortgagee may impose, to Mortgagor for the purpose of
restoring, repairing, or rebuilding any part of the Property affected by the
taking or damage.  Notwithstanding the
preceding sentence, if (i) no Default or Event of Default shall have occurred
and be continuing hereunder, and (ii) the proceeds received by Mortgagee
(together with any other funds delivered by Mortgagor to Mortgagee for such
purpose) shall be sufficient, in Mortgagee’s reasonable judgment, to pay for
any restoration necessitated by the taking or damage, and (iii) either
Mortgagor is obligated under the terms of any Lease to restore or repair the
Property or the annual income from Leases that will survive restoration provide
a forward-looking Debt Service Coverage Ratio (as defined in the Agreement
Concerning Master Lease) of at least 1.05 upon completion of restoration, and
Mortgagor demonstrates to Mortgagee’s reasonable satisfaction that it will be
able to attain a forward-looking Debt Service Coverage Ration of at least 1.20
times the annual debt service from Leases within six months after completion of
restoration, and (iv) such restoration can be completed, in Mortgagee’s
judgment, at least ninety (90) days prior to the maturity date of the Note, and
(v) the remaining Property shall constitute, in Mortgagee’s sole judgment,
adequate security for the Secured Obligations, then Mortgagee shall apply such
proceeds as provided in clause (b) of the preceding sentence.  Mortgagor’s duty to pay the Note in
accordance with its terms and to perform the other Secured Obligations will not
be suspended by the pendency or discharged by the conclusion of any proceedings
for the collection of any such award or payment, and any reduction in the
Secured Obligations resulting from Mortgagee’s application of any such award or
payment will take effect only when Mortgagee receives such award or
payment.  If this Mortgage has been
foreclosed prior to Mortgagee’s receipt of such award or payment, Mortgagee may
nonetheless retain such award or payment to the extent required to reimburse
Mortgagee for all costs and expenses, including attorneys’ fees, incurred in
connection therewith, and to discharge any deficiency remaining with respect to
the Secured Obligations.

4.9     Mechanics’ Liens.  Mortgagor will keep the Property free and
clear of all liens and claims of liens by contractors, subcontractors,
mechanics, laborers, materialmen, and other such persons, and will cause any
recorded statement of any such lien to be released of record within thirty (30)
days after the recording thereof. 
Notwithstanding the preceding sentence, however, Mortgagor will not be
deemed to be in default under this Section if and so

 15
 

long as Mortgagor
(a) contests in good faith the validity or amount of any asserted lien and diligently
prosecutes or defends an action appropriate to obtain a binding determination
of the disputed matter, (b) provides Mortgagee with such security as Mortgagee
may require to protect Mortgagee against all loss, damage, and expense,
including attorneys’ fees, which Mortgagee might incur if the asserted lien is
determined to be valid.

4.10   Defense of Actions.  Mortgagor will defend, at Mortgagor’s
expense, any action, proceeding or claim which affects any property encumbered
hereby or any interest of Mortgagee in such property or in the Secured
Obligations, and will indemnify and hold Mortgagee harmless from all loss,
damage, cost, or expense, including attorneys’ fees, which Mortgagee may incur
in connection therewith.

4.11   Expenses of Enforcement.  Mortgagor will pay all actual out-of-pocket
costs and expenses, including attorneys’ fees, which Mortgagee may incur in
connection with any effort or action (whether or not litigation or foreclosure
is involved) to enforce or defend Mortgagee’s rights and remedies under any of
the Loan Documents, including but not limited to all attorneys’ fees, appraisal
fees, consultants’ fees, and other expenses incurred by Mortgagee in securing
title to or possession of, and realizing upon, any security for the Secured Obligations.  All such costs and expenses (together with
interest thereon at the Default Rate from the date incurred) shall constitute
part of the Secured Obligations, and may be included in the computation of the
amount owed to Mortgagee for purposes of foreclosing or otherwise enforcing
this Mortgage.

4.12   Financial Reports.  During the term of the Loan, Mortgagor shall
supply to Mortgagee (a) within thirty (30) days following the end of each
quarter, Mortgagor’s quarterly and annual operating statements for the Property
as of the end of and for the preceding quarter and fiscal year, as applicable,
in each case prepared against the budget for such year; (b) contemporaneously
with Mortgagor’s delivery of each of such operating statements, a certified
rent roll signed and dated by Mortgagor detailing the names of all tenants
under the Leases, the portion of the improvements on the Property occupied by
each tenant, the rent and any other charges payable under each Lease, and the
term of each Lease; and (c) within one hundred five (105) days following the
end of each year, an annual balance sheet and profit and loss statement of
Mortgagor and the most recent 10K and 10Q filings of Guarantor.  The financial statements and reports for
Mortgagor described in (a) and (c) above shall be in such detail as Mortgagee
may require, shall be prepared in accordance with generally accepted accounting
principles consistently applied, and shall be certified as true and correct by
Mortgagor or the applicable Guarantor (or, if required by Mortgagee after any
Default or Event of Default, by an independent certified public accountant
acceptable to Mortgagee).  Mortgagor
shall also furnish to Mortgagee within thirty (30) days of Mortgagee’s request,
any other financial reports or statements of Mortgagor as Mortgagee may
request, provided, however, so long as Mortgagor’s sole asset is the Property,
Mortgagor may provide the annual balance sheet and profit and loss statement of
the Property in lieu of financial statements of Mortgagor.  Upon Mortgagee’s demand after any Default by
Mortgagor, Mortgagor shall supply to Mortgagee the items required in (a) and
(b) above on a monthly basis; such items shall be supplied to Mortgagee on a
quarterly basis upon Mortgagor’s cure of said default and Mortgagee’s written
authorization.  If Mortgagee securitizes
the Loan, Mortgagor shall supply to Mortgagee the items required in (a) and (b)
above on a quarterly basis.

 16
 

4.13   Priority of Leases.  To the extent Mortgagor has the right, under
the terms of any Lease, to make such lease subordinate to the lien hereof,
Mortgagor will, at Mortgagee’s request and Mortgagor’s expense, take such
action as may be required to effect such subordination.  Conversely, Mortgagor will, at Mortgagee’s
request and Mortgagor’s expense, take such action as may be necessary to
subordinate the lien hereof to any future Lease designated by Mortgagee.

4.14   Inventories; Assembly of Chattels.  Mortgagor will, from time to time at the
request of Mortgagee, supply Mortgagee with a current inventory of the Chattels
and the Intangible Personalty, in such detail as Mortgagee may require.  Upon the occurrence of any Event of Default
hereunder, Mortgagor will at Mortgagee’s request assemble the Chattels and make
them available to Mortgagee at any place designated by Mortgagee which is
reasonably convenient to both parties.

4.15   Compliance with Laws, Etc.  Mortgagor shall comply in all material
respects with all applicable laws, rules, regulations and orders, such
compliance to include, without limitation, maintaining all Permits and paying
before the same become delinquent all taxes, assessments and governmental
charges imposed upon Mortgagor or the Property.

4.16   Records and Books of Account.  Mortgagor shall keep accurate and complete
records and books of account, in which complete entries will be made in
accordance with generally accepted accounting principles consistently applied,
reflecting all financial transactions relating to the Property.

4.17   Inspection Rights.  At any reasonable time, and from time to
time, Mortgagor shall permit Mortgagee, or any agents or representatives
thereof, to examine and make copies of and abstracts from the records and books
of account of, and visit and inspect the Property and to discuss with Mortgagor
the affairs, finances and accounts of Mortgagor.

4.18   Change of Mortgagor’s Address or State of
Organization. 
Mortgagor shall promptly notify Mortgagee if changes are made in
Mortgagor’s address from that set forth in Section
9.10 hereof, or if Mortgagor shall either change its “location” (as
such term is used in Section 5.8
hereof), its state of organization or if Mortgagor shall organize in any state
other than the State of Connecticut.

4.19   Further Assurances; Estoppel Certificates.  Mortgagor will execute and deliver to
Mortgagee upon demand, and pay the costs of preparation and recording thereof,
any further documents which Mortgagee may request to confirm or perfect the
liens and security interests created or intended to be created hereby, or to
confirm or perfect any evidence of the Secured Obligations.  Mortgagor will also, within ten (10) days
after any request by Mortgagee, deliver to Mortgagee a signed and acknowledged
statement certifying to Mortgagee, or to any proposed transferee of the Secured
Obligations, (a) the balance of principal, interest, and other sums then
outstanding under the Note, and (b) whether Mortgagor claims to have any
offsets or defenses with respect to the Secured Obligations and, if so, the
nature of such offsets or defenses.

4.20   Costs of Closing.  Mortgagor shall on demand pay directly or
reimburse Mortgagee for any costs or expenses pertaining to the closing of the
Loan, including, but not

 17
 

limited to,
reasonable fees of counsel for Mortgagee, costs and expenses for which invoices
were not available at the closing of the Loan, or costs and expenses which are
incurred by Mortgagee after such closing. 
All such costs and expenses (together with interest thereon at the
Default Rate from the date of demand if such amounts are not paid within
fifteen (15) days of the date of demand) shall constitute a part of the Secured
Obligations, and may be included in the computation of the amount owed to
Mortgagee for purposes of foreclosing or otherwise enforcing this Mortgage.

4.21   Fund for Electronic Transfer.  All monthly payments of principal and
interest on the Note, and escrow deposits under this Mortgage, shall be made by
Mortgagor by electronic funds transfer from a bank account established and
maintained by Mortgagor for such purpose. 
Mortgagor shall establish and maintain such an account until the Note is
fully paid and shall direct the depository of such account in writing to so
transmit such payments on or before the respective due dates to the account of
Mortgagee as shall be designated by Mortgagee in writing.

4.22   Use.  Mortgagor shall use the Property solely for
the operation of an industrial distribution center and any other use permitted
by zoning and other law and for no other use or purpose.

4.23   Management.  The Property shall be managed by Mortgagor or
Guarantor.  Mortgagor shall not permit
management of the Property by any person or entity other than Mortgagor or
Guarantor, without the prior written consent of Mortgagee.  If the Property is managed by Guarantor,
Mortgagor shall not enter into any property management agreement which would
not be terminable on thirty (30) days’ notice to Guarantor.

ARTICLE 5

MORTGAGOR’S NEGATIVE COVENANTS

5.1     Waste and Alterations.  Mortgagor will not commit or permit any waste
with respect to the Property or the Chattels. 
Mortgagor shall not cause or permit any part of the Property, including
but not limited to any building, structure, parking lot, driveway, landscape
scheme, timber, or other ground improvement, to be removed, demolished, or
materially altered without the prior written consent of Mortgagee.

5.2     Zoning and Private Covenants.  Mortgagor will not initiate, join in, or
consent to any change in any zoning ordinance or classification, any change in
the “zone lot” or “zone lots” (or similar zoning unit or units) presently
comprising the Property, any transfer of development rights, any private
restrictive covenant, or any other public or private restriction limiting or
defining the uses which may be made of the Property or any part thereof,
without the express written consent of Mortgagee.  If under applicable zoning provisions the use
of all or any part of the Property is or becomes a nonconforming use, Mortgagor
will not cause such use to be discontinued or abandoned without the express
written consent of Mortgagee, and Mortgagor will use its best efforts to
prevent the tenant under any Lease from discontinuing or abandoning such use.

 18
 

5.3     Interference
with Leases.

(a)   Mortgagor will neither do,
nor neglect to do, anything which may cause or permit the termination of any
Lease of all or any part of the Property, or permit the withholding or
abatement of any rent payable under any such Lease.

(b)   Without Mortgagee’s prior
written consent, which may be granted or withheld in Mortgagee’s reasonable
discretion, Mortgagor shall not enter into or modify any Lease of all or any
part of the Property.  Any submission by
Mortgagor for Mortgagee’s approval of a Lease or modification thereof shall be
accompanied by a copy of such Lease or modification, a Lease abstract, a then-current
rent roll for the Property, year-to-date and prior year operating
statements for the Property, and a cover letter requesting Mortgagee’s approval
which contains a signature line on which Mortgagee may evidence its approval of
such Lease or modification.

(c)   Except with the prior
written consent of Mortgagee, which may be granted or withheld in Mortgagee’s
sole discretion, Mortgagor will not (i) collect rent from all or any part of
the Property for more than one month in advance, (ii) assign the rents from the
Property or any part thereof, or (iii) consent to the cancellation or surrender
of all or any part of any Lease, except that Mortgagor may in good faith
terminate any Lease for nonpayment of rent or other material breach by the
tenant.

(d)   Notwithstanding the
provisions of Section 5.3(b) to
the contrary, Mortgagor shall have the right to enter into “Safe-Harbor Leases”
(as hereinafter defined) without Mortgagee’s prior written consent.  A “Safe Harbor Lease” shall mean any proposed
market Lease that meets the following criteria: (i) the rent payable under such
proposed Lease is a rent that is no less than $6.00 per square foot on a
triple-net basis, (ii) the rentable area to be demised pursuant to such
proposed Lease which, when combined with any other space in the Property leased
to affiliated entities of the tenant under such proposed Safe Harbor Lease, is
less than 25,000 square feet, (iii) such Lease shall be for a term of no less
than three (3) years and no greater than ten (10) years, including any tenant
extension option(s); provided, however, that the term, including any extension
options, may extend to fifteen (15) years if lease years 11-15 have a rental
rate not less than the greater of (A) the rental rate for year 10 and (B)
market rental rate, (iv) the tenant improvement allocation or allowance shall
not exceed $10.00 per rentable square foot, unless Guarantor guarantees the
payment of such allocation or allowance in excess of $10.00 per rentable square
foot, and (v) such lease shall satisfy the additional leasing guidelines set
forth in Section 5.3(e) below:

(e)   A Lease will qualify as a
Safe-Harbor Lease when such Lease comes into effect, provided each of the
following conditions, in addition to the ones set forth above, are satisfied:
(i) such Lease does not contain any options to purchase, or other rights to
acquire the Property, (ii) such Lease does not contain any material
restrictions on Mortgagor’s rights to lease remaining portions of the Property;
provided, however, that the granting of the right or option to lease additional
space within the Property upon terms which would otherwise comply with the
provisions of this Section 5.3
shall not be considered a material restriction, if such right or option must be
exercised upon 15 days’ notice to the tenant, (iii) such Lease does not contain
any extraordinary, uncustomary, and unduly burdensome Mortgagor obligations
(including

 19
 

obligations which
an unaffiliated Mortgagor would have difficulty performing), (iv) such Lease is
entered into on the standard form of Lease, without material modification
thereto and provided it conforms with the leasing guidelines hereunder, (v)
such Lease is entered into on arms-length terms, and (vi) within ten (10) days
following the execution of such Lease, Mortgagor shall provide Mortgagee with a
certified copy thereof and a certificate that such Lease complies in all
respects with the requirements of a Safe Harbor Lease.

(f)    Mortgagee agrees that for
any proposed Lease that does not qualify as a Safe Harbor Lease, for which
Mortgagor is required to obtain Mortgagee’s consent thereto, Mortgagee will
attempt to respond within ten (10) business days.  If Mortgagee has failed to respond to the
written request for consent of a proposed Lease after ten (10) business days
after its receipt thereof, together with any additional information that
Mortgagee may reasonably require to evaluate such proposed lease, and Mortgagor
has provided a subsequent five (5) business days’ written notice to Mortgagee
requesting consent, each notice marked with a legend in bold capital letters
stating: MORTGAGEE SHALL BE DEEMED TO HAVE
CONSENTED TO THE MATTER CONTAINED HEREIN IF IT FAILS TO RESPOND TO THIS REQUEST
FOR CONSENT WITHIN [10/5 (as applicable)] BUSINESS DAYS AFTER THE DATE HEREOF,
then Mortgagee shall be deemed to have consented to the same.  Mortgagee agrees to consider a written
summary of a proposed lease to a specific tenant in accordance with the terms
described in this Section 5.3(f).  If Mortgagee approves a written summary (or
is deemed to have given its approval), Mortgagee shall be deemed to have
approved a lease to that tenant prepared in accordance with such written
summary on the form previously approved by Mortgagee, without material
modifications (except as disclosed in the written summary).

5.4     Transfer
or Further Encumbrance of Property.

(a)   Without Mortgagee’s prior
written consent, which consent may be granted or withheld in Mortgagee’s sole
and absolute discretion, Mortgagor shall not, except as permitted in Section 5.3, (i) sell, assign, convey,
transfer or otherwise dispose of any legal, beneficial or equitable interest in
any of the Property, (ii) permit or suffer any owner, directly or indirectly,
of any beneficial interest in the Property or Mortgagor to transfer such
interest, whether by transfer of partnership, membership, stock or other
beneficial interest in any entity or otherwise, or (iii) mortgage, hypothecate
or otherwise encumber or permit to be encumbered or grant or permit to be
granted a security interest in all or any part of the Property or Mortgagor or
any beneficial or equitable interest in either the Property or Mortgagor.  The provisions of this Section shall not
prohibit transfers of title or interest under any will or testament or
applicable law of descent.

(b)   Notwithstanding the
provisions of Section 5.4(a) to
the contrary, Mortgagor may transfer the Property or any beneficial interest in
Mortgagor provided that (i) the transferee of the Property (in the case of a
transfer of the Property) or the surviving entity (in the case of a transfer of
any beneficial interest in Mortgagor) is a wholly owned subsidiary of Guarantor
(and such other entity shall be a single purpose entity and shall expressly
assume the obligations of Borrower under the Loan Documents in documentation
satisfactory to Lender in form and content) and (ii) immediately before and
immediately after giving effect to such transaction, no Event of Default, and
no event which, after notice or lapse of time or both, would

 20
 

become an Event of
Default, shall have occurred and be continuing. 
Mortgagor shall be responsible for all out–of–pocket expenses incurred
by Mortgagee in connection with such transfer, including without limitation
reasonable attorney’s fees.

(c)   Notwithstanding the
provisions of Section 5.4(a), so
long as (i) Mortgagor is a wholly owned subsidiary of Guarantor and Guarantor
controls Mortgagor and (ii) Guarantor is an Independent Publicly Traded Entity,
there shall be no restrictions on the sale or transfer of stock in
Guarantor.  As used herein, the term “Independent
Publicly Traded Entity” means a corporation (1) whose stock is publicly traded
on the New York Stock Exchange, American Stock Exchange, NASDAQ market or
similar national or nationally recognized stock exchange or over the counter
market and (2) is not a subsidiary of another entity.  Notwithstanding the provisions of Section 5.4(a) and (b), Guarantor may enter into any merger,
consolidation or reorganization, provided that the surviving entity following
any such merger, consolidation or reorganization (A) is an Independent Publicly
Traded Entity and (B) the net worth of the surviving entity (as determined by
an independent certified public accounting firm) is equal to or greater than
the greater of (I) the net worth of Guarantor as of the date of the closing of
the Loan and (II) the net worth of Guarantor immediately prior to the
consummation of such merger, consolidation or reorganization.

5.5     Further Encumbrance of Chattels.  Mortgagor will neither create nor permit any
lien, security interest or encumbrance against the Chattels or Intangible
Personalty or any part thereof or interest therein, other than the liens and
security interests created by the Loan Documents, without the prior written
consent of Mortgagee, which may be withheld for any reason.

5.6     Assessments Against Property.  Mortgagor will not, without the prior written
approval of Mortgagee, which may be withheld for any reason, consent to or
allow the creation of any so-called special districts, special improvement
districts, benefit assessment districts or similar districts, or any other body
or entity of any type, or allow to occur any other event, that would or might
result in the imposition of any additional taxes, assessments or other monetary
obligations or burdens on the Property, and this provision shall serve as
RECORD NOTICE to any such district or districts or any governmental entity
under whose authority such district or districts exist or are being formed
that, should Mortgagor or any other person or entity include all or any portion
of the Property in such district or districts, whether formed or in the process
of formation, without first obtaining Mortgagee’s express written consent, the
rights of Mortgagee in the Property pursuant to this Mortgage or following any
foreclosure of this Mortgage, and the rights of any person or entity to whom
Mortgagee might transfer the Property following a foreclosure of this Mortgage,
shall be senior and superior to any taxes, charges, fees, assessments or other
impositions of any kind or nature whatsoever, or liens (whether statutory,
contractual or otherwise) levied or imposed, or to be levied or imposed, upon
the Property or any portion thereof as a result of inclusion of the Property in
such district or districts.

5.7     Transfer or Removal of Chattels.  Mortgagor will not sell, transfer or remove
from the Property all or any part of the Chattels with a value in excess of
$25,000.00, unless the items sold, transferred, or removed are simultaneously
replaced with similar items of equal or greater value.

 21
 

5.8     Change of Name, Organizational I.D. No. or
Location.  Mortgagor
will not change the name under which Mortgagor does business (or adopt or begin
doing business under any other name or assumed or trade name), change its
organizational identification number, or change its location, without first
notifying Mortgagee of Mortgagor’s intention to do so and delivering to
Mortgagee such organizational documents of Mortgagor and executed modifications
or supplements to this Mortgage (and to any financing statement which may be
filed in connection herewith) as Mortgagee may require.  For purposes of the foregoing, Mortgagor’s “location”
shall mean (a) if Mortgagor is a registered organization, Mortgagor’s state of
registration, (b) if Mortgagor is an individual, the state of Mortgagor’s
principal residence, or (c) if Mortgagor is neither a registered organization
nor an individual, the state in which Mortgagor’s place of business (or, if
Mortgagor has more than one place of business, the Mortgagor’s chief executive
office) is located.

5.9     Improper Use of Property or Chattels.  Mortgagor will not use the Property or the
Chattels for any purpose or in any manner which violates any applicable law,
ordinance, or other governmental requirement, the requirements or conditions of
any insurance policy, or any private covenant.

5.10   ERISA.  Mortgagor shall not engage in any transaction
which would cause the Note (or the exercise by Mortgagee of any of its rights
under the Loan Documents) to be a non-exempt, prohibited transaction under
ERISA (including for this purpose the parallel provisions of Section 4975 of
the Internal Revenue Code of 1986, as amended), or otherwise result in Mortgagee
being deemed in violation of any applicable provisions of ERISA.  Mortgagor shall indemnify, protect, defend,
and hold Mortgagee harmless from and against any and all losses, liabilities,
damages, claims, judgments, costs, and expenses (including, without limitation
attorneys’ fees and costs incurred in the investigation, defense, and
settlement of claims and in obtaining any individual ERISA exemption or state
administrative exception that may be required, in Mortgagee’s sole and absolute
discretion) that Mortgagee may incur, directly or indirectly, as the result of
the breach by Mortgagor of any warranty or representation set forth in Section 3.3(x) hereof or the breach by
Mortgagor of any covenant contained in this Section.  This indemnity shall survive any termination,
satisfaction or foreclosure of this Mortgage and shall not be subject to the
limitation on personal liability described in the Note.

5.11   Use of Proceeds.  Mortgagor will not use any funds advanced by
Mortgagee under the Loan Documents for household or agricultural purposes, to
purchase margin stock, or for any purpose prohibited by law.

ARTICLE 6

EVENTS OF DEFAULT

Each of the following
events will constitute an event of default (an “Event of Default”) under this
Mortgage and under each of the other Loan Documents:

6.1     Failure to Pay Note.  Mortgagor’s failure to make any payment when
due under the terms of the Note or any other Loan Document.

 

 22

6.2     Due on Sale or Encumbrance.  The occurrence of any violation of any
covenant contained in Section 5.4, 5.5 or 5.7
hereof.

6.3     Other Obligations.  The failure of Mortgagor to properly perform
any obligation contained herein or in any of the other Loan Documents (other
than the obligation to make payments under the Note or the other Loan
Documents) and the continuance of such failure for a period of ten (10) days
following written notice thereof from Mortgagee to Mortgagor; provided,
however, that if such failure is not curable within such ten (10) day period,
then, so long as Mortgagor commences to cure such failure within such ten (10)
day period and is continually and diligently attempting to cure to completion,
such failure shall not be an Event of Default unless such failure remains
uncured for thirty (30) days after such written notice to Mortgagor.

6.4     Levy Against Property.  The levy against any of the Property,
Chattels or Intangible Personalty, of any execution, attachment, sequestration
or other writ.

6.5     Liquidation.  The liquidation, termination or dissolution
of Mortgagor or any Controlling Person.

6.6     Appointment of Receiver.  The appointment of a trustee or receiver for
the assets, or any part thereof, of Mortgagor or any Controlling Person, or the
appointment of a trustee or receiver for any real or personal property, or the
like, or any part thereof, representing the security for the Secured
Obligations.

6.7     Assignments.  The making by Mortgagor or any Controlling
Person of a transfer in fraud of creditors or an assignment for the benefit of
creditors.

6.8     Order for Relief.  The entry in bankruptcy of an order for
relief for or against Mortgagor or any Controlling Person.

6.9     Bankruptcy.  The filing of any petition (or answer
admitting the material allegations of any petition), or other pleading, seeking
entry of an order for relief for or against Mortgagor or any Controlling Person
as a debtor or bankrupt or seeking an adjustment of any of such parties’ debts,
or any other relief under any state or federal bankruptcy, reorganization,
debtor’s relief or insolvency laws now or hereafter existing, including,
without limitation, a petition or answer seeking reorganization or admitting
the material allegations of a petition filed against any such party in any
bankruptcy or reorganization proceeding, or the act of any of such parties in
instituting or voluntarily being or becoming a party to any other judicial
proceedings intended to effect a discharge of the debts of any such parties, in
whole or in part, or a postponement of the maturity or the collection thereof,
or a suspension of any of the rights or powers of a trustee or of any of the
rights or powers granted to Mortgagee herein, or in any other document executed
in connection herewith.

6.10   Misrepresentation.  If any representation or warranty made by
Mortgagor or any Controlling Person, or in any of the other Loan Documents or
any other instrument or document modifying, renewing, extending, evidencing,
securing or pertaining to the Note is false, misleading or erroneous in any
material respect.

 23
 

6.11   Judgments.  Unless a bond or other acceptable security is
posted with Mortgagee (or, if applicable, a court of competent jurisdiction),
the failure of Mortgagor or any Controlling Person to pay any monetary judgment
in excess of $50,000.00 before the expiration of thirty (30) days after such
judgment becomes final and no longer appealable.

6.12   Admissions Regarding Debts.  The admission of Mortgagor or any Controlling
Person in writing of any such party’s inability to pay such party’s debts as
they become due.

6.13   Assertion of Priority.  The assertion of any claim of priority over
this Mortgage, by title, lien, or otherwise, unless Mortgagor within thirty
(30) days after such assertion either causes the assertion to be withdrawn or
provides Mortgagee with such security as Mortgagee may require to protect
Mortgagee against all loss, damage, or expense, including attorneys’ fees,
which Mortgagee may incur in the event such assertion is upheld; provided,
however, that the written agreement in form and content acceptable to Mortgagee
from a title company acceptable to Mortgagee to defend Mortgagee against such
assertion and to insure against any such loss, damage or exchange shall
constitute adequate security.

6.14   Other Loan Documents.  The occurrence of any default by Mortgagor,
after the lapse of any applicable grace or cure period, or the occurrence of
any event or circumstance defined as an Event of Default, under any of the Loan
Documents other than this Mortgage.

6.15   Other Liens.  The occurrence of any default by Mortgagor,
after the lapse of any applicable grace or cure period, or the occurrence of
any event or circumstance defined as an Event of Default, under any other
consensual lien encumbering the Property, or any part thereof or interest
therein, or any document or instrument evidencing obligations secured thereby.

6.16   Other Indebtedness.  The occurrence of any default by Mortgagor,
after the lapse of any applicable grace or cure period, or the occurrence of
any event or circumstance defined as an Event of Default, under any other
indebtedness incurred or owing by Mortgagor, or any document or instrument
evidencing any obligation to pay such indebtedness.

ARTICLE 7

MORTGAGEE’S REMEDIES

Immediately upon or any
time after the occurrence of any Event of Default hereunder, Mortgagee may
exercise any remedy available at law or in equity, including but not limited to
those listed below and those listed in the other Loan Documents, in such
sequence or combination as Mortgagee may determine in Mortgagee’s sole
discretion:

7.1     Performance of Defaulted Obligations.  Mortgagee may make any payment or perform any
other obligation under the Loan Documents which Mortgagor has failed to make or
perform, and Mortgagor hereby irrevocably appoints Mortgagee as the true and
lawful attorney-in-fact for Mortgagor to make any such payment and perform any
such obligation in the name of Mortgagor. 
All payments made and expenses (including attorneys’ fees) incurred by Mortgagee
in this connection, together with interest thereon at the Default Rate from the
date

 24
 

paid or incurred
until repaid, will be part of the Secured Obligations and will be immediately
due and payable by Mortgagor to Mortgagee. 
In lieu of advancing Mortgagee’s own funds for such purposes, Mortgagee
may use any funds of Mortgagor which may be in Mortgagee’s possession,
including but not limited to insurance or condemnation proceeds and amounts
deposited for taxes, insurance premiums, or other purposes.

7.2     Specific Performance and Injunctive Relief.  Notwithstanding the availability of legal
remedies, Mortgagee will be entitled to obtain specific performance, mandatory
or prohibitory injunctive relief, or other equitable relief requiring Mortgagor
to cure or refrain from repeating any Default.

7.3     Acceleration of Secured Obligations.  Mortgagee may, without notice or demand,
declare all of the Secured Obligations immediately due and payable in full.

7.4     Suit for Monetary Relief.  Subject to the non-recourse provisions of the
Note, with or without accelerating the maturity of the Secured Obligations,
Mortgagee may sue from time to time for any payment due under any of the Loan
Documents, or for money damages resulting from Mortgagor’s default under any of
the Loan Documents.

7.5     Possession of Property.  To the extent permitted by law, Mortgagee may
enter and take possession of the Property without seeking or obtaining the
appointment of a receiver, may employ a managing agent for the Property, and
may lease or rent all or any part of the Property, either in Mortgagee’s name
or in the name of Mortgagor, and may collect the rents, issues, and profits of
the Property.  Any revenues collected by
Mortgagee under this Section will be applied first toward payment of all
expenses (including attorneys’ fees) incurred by Mortgagee, together with
interest thereon at the Default Rate from the date incurred until repaid, and
the balance, if any, will be applied against the Secured Obligations in such
order and manner as Mortgagee may elect in its sole discretion.

7.6     Enforcement of Security Interests.  Mortgagee may exercise all rights of a
secured party under the Code with respect to the Chattels and the Intangible
Personalty, including but not limited to taking possession of, holding, and
selling the Chattels and enforcing or otherwise realizing upon any accounts and
general intangibles.  Any requirement for
reasonable notice of the time and place of any public sale, or of the time after
which any private sale or other disposition is to be made, will be satisfied by
Mortgagee’s giving of such notice to Mortgagor at least five (5) days prior to
the time of any public sale or the time after which any private sale or other
intended disposition is to be made.

7.7     Foreclosure
Against Property.

(a)   Mortgagee may bring an
action in any court of competent jurisdiction to foreclose this Mortgage.

(b)   All fees, costs and expenses
of any kind incurred by Mortgagee in connection with foreclosure of this
Mortgage, including, without limitation, the costs of any appraisals of the
Property obtained by Mortgagee, the cost of any title reports or abstracts, all
costs of any receivership for the Property advanced by Mortgagee, and all
attorneys’ and consultants’ fees and expenses incurred by Mortgagee, shall
constitute a part of the Secured

 25
 

Obligations and
may be included as part of the amount owing from Mortgagor to Mortgagee at any
foreclosure sale.

(c)   The proceeds of any sale
under this Section shall be applied first to the fees and expenses of the
officer conducting the sale, and then to the reduction or discharge of the
Secured Obligations in such order and manner as Mortgagee may elect in its sole
discretion; any surplus remaining shall be paid over to Mortgagor or to such
other person or persons as may be lawfully entitled to such surplus.

(d)   Nothing in this Section
dealing with foreclosure procedures or specifying particular actions to be
taken by Mortgagee shall be deemed to contradict or add to the requirements and
procedures now or hereafter specified by the laws of the State, and any such
inconsistency shall be resolved in favor of the State’s law applicable at the
time of foreclosure.

7.8     Appointment of Receiver.  To the extent permitted by law, Mortgagee
shall be entitled, as a matter of absolute right and without regard to the
value of any security for the Secured Obligations or the solvency of any person
liable therefor, and with or without taking possession of the Property, to the
appointment of a receiver for the Property upon ex-parte application to any
court of competent jurisdiction. 
Mortgagor waives any right to any hearing or notice of hearing prior to
the appointment of a receiver.  Such
receiver and its agents shall be empowered to (a) take possession of the
Property and any businesses conducted by Mortgagor or any other person thereon
and any business assets used in connection therewith, (b) exclude Mortgagor and
Mortgagor’s agents, servants, and employees from the Property, (c) collect the
rents, issues, profits, and income therefrom, (d) complete any construction
which may be in progress, (e) do such maintenance and make such repairs and
alterations as the receiver deems necessary, (f) use all stores of materials,
supplies, and maintenance equipment on the Property and replace such items at
the expense of the receivership estate, (g) pay all taxes and assessments
against the Property and the Chattels, all premiums for insurance thereon, all
utility and other operating expenses, and all sums due under any prior or subsequent
encumbrance, and (h) generally do anything which Mortgagor could legally do if
Mortgagor were in possession of the Property. 
All expenses incurred by the receiver or its agents shall constitute a
part of the Secured Obligations.  Any
revenues collected by the receiver shall be applied first to the expenses of
the receivership, including attorneys’ fees incurred by the receiver and by
Mortgagee, together with interest thereon at the Default Rate from the date
incurred until repaid, and the balance shall be applied toward the Secured
Obligations in such order or manner as Mortgagee may in its sole discretion
elect or in such other manner as the court may direct.  Unless sooner terminated with the express
consent of Mortgagee, any such receivership will continue until the Secured
Obligations have been discharged in full, or until title to the Property has
passed after foreclosure sale and all applicable periods of redemption have
expired.

7.9     Right to Make Repairs, Improvements.  Should any part of the Property come into the
possession of Mortgagee, whether before or after an Event of Default, Mortgagee
may use, operate, and/or make repairs, alterations, additions and improvements
to the Property for the purpose of preserving it or its value.  Mortgagor covenants to promptly reimburse and
pay to Mortgagee, at the place where the Note is payable, or at such other
place as may be designated by Mortgagee in writing, the amount of all
reasonable expenses (including the cost of any

 26
 

insurance, taxes,
or other charges) incurred by Mortgagee in connection with its custody,
preservation, use or operation of the Property, together with interest thereon
from the date incurred by Mortgagee at the Default Rate, and all such expenses,
costs, taxes, interest, and other charges shall be a part of the Secured
Obligations.  It is agreed, however, that
the risk of accidental loss or damage to the Property is undertaken by
Mortgagor and Mortgagee shall have no liability whatsoever for decline in value
of the Property, for failure to obtain or maintain insurance, or for failure to
determine whether any insurance ever in force is adequate as to amount or as to
the risks insured.

7.10   Surrender of Insurance.  Mortgagee may surrender the insurance
policies maintained pursuant to the terms hereof, or any part thereof, and
receive and apply the unearned premiums as a credit on the Secured Obligations
and, in connection therewith, Mortgagor hereby appoints Mortgagee (or any
officer of Mortgagee), as the true and lawful agent and attorney-in-fact for
Mortgagor (with full powers of substitution), which power of attorney shall be
deemed to be a power coupled with an interest and therefore irrevocable, to
collect such premiums.

7.11   Prima
Facie Evidence. 
Mortgagor agrees that, in any assignments, deeds, bills of sale, notices
of sale, or postings, given by Mortgagee, any and all statements of fact or
other recitals therein made as to the identity of Mortgagee, or as to the
occurrence or existence of any Event of Default, or as to the acceleration of
the maturity of the Secured Obligations, or as to the request to sell, posting
of notice of sale, notice of sale, time, place, terms and manner of sale and
receipt, distribution and application of the money realized therefrom, and
without being limited by the foregoing, as to any other act or thing having
been duly done by Mortgagee, shall be taken by all courts of law and equity as prima facie evidence that such statements
or recitals state facts and are without further question to be so accepted, and
Mortgagor does hereby ratify and confirm any and all acts that Mortgagee may
lawfully do by virtue hereof.

ARTICLE 8

ASSIGNMENT OF LEASES AND RENTS

8.1     Assignment of Leases and Rents.  Mortgagor hereby unconditionally and
absolutely grants, transfers and assigns unto Mortgagee all rents, royalties,
issues, profits and income (“Rents”) now or hereafter due or payable to
Mortgagor for the occupancy or use of the Property, and all Leases (other than
subleases), whether written or oral, with all security therefor, including all
guaranties thereof, now or hereafter affecting the Property; reserving unto
Mortgagor, however, a license to collect and retain such Rents prior to the
occurrence of any Event of Default.  Such
license shall be revocable by Mortgagee without notice to Mortgagor at any time
after the occurrence of an Event of Default. 
Mortgagor represents that Mortgagor’s interest in the Rents and the
Leases have not been heretofore sold, assigned, transferred or set over by any
instrument now in force and will not at any time during the life of this
assignment be sold, assigned, transferred or set over by Mortgagor or by any
person or persons whomsoever; and Mortgagor has good right to sell, assign,
transfer and set over the same and to grant to and confer upon Mortgagee the
rights, interest, powers and authorities herein granted and conferred.  Failure of Mortgagee at any time or from time
to time to enforce the assignment of Rents and Leases under this Section shall
not in any manner prevent its subsequent enforcement, and

 27
 

Mortgagee is not
obligated to collect anything hereunder, but is accountable only for sums
actually collected.

8.2     Further Assignments.  Mortgagor shall give Mortgagee at any time
upon demand any further or additional forms of assignment or transfer of such
Rents, Leases and security as may be reasonably requested by Mortgagee, and
shall deliver to Mortgagee executed copies of all such Leases and security.

8.3     Application of Rents.  Mortgagee shall be entitled to deduct and
retain a just and reasonable compensation from monies received hereunder for
its services or that of its agents in collecting such monies.  Any monies received by Mortgagee hereunder
may be applied when received from time to time in payment of any taxes,
assessments or other liens affecting the Property regardless of the
delinquency, such application to be in such order as Mortgagee may
determine.  The acceptance of this
Mortgage by Mortgagee or the exercise of any rights by it hereunder shall not
be, or be construed to be, an affirmation by it of any Lease nor an assumption
of any liability under any Lease.

8.4     Collection of Rents.  Upon or at any time after an Event of Default
shall have occurred and be continuing, Mortgagee may declare all sums secured
hereby immediately due and payable, and may, at its option, without notice, and
whether or not the Secured Obligations shall have been declared due and
payable, either in person or by agent, with or without bringing any action or
proceeding, or by a receiver to be appointed by a court, (a) enter upon, take
possession of, manage and operate the Property, or any part thereof (including
without limitation making necessary repairs, alterations and improvements to
the Property); (b) make, cancel, enforce or modify Leases; (c) obtain and evict
tenants; (d) fix or modify Rents; (e) do any acts which Mortgagee deems
reasonably proper to protect the security thereof; and (f) either with or
without taking possession of the Property, in its own name sue for or otherwise
collect and receive such Rents, including those past due and unpaid.  In connection with the foregoing, Mortgagee
shall be entitled and empowered to employ attorneys, and management, rental and
other agents in and about the Property and to effect the matters which Mortgagee
is empowered to do, and in the event Mortgagee shall itself effect such
matters, Mortgagee shall be entitled to charge and receive reasonable
management, rental and other fees therefor as may be customary in the area in
which the Property is located; and the reasonable fees, charges, costs and
expenses of Mortgagee or such persons shall be additional Secured
Obligations.  Mortgagee may apply all
funds collected as aforesaid, less costs and expenses of operation and
collection, including reasonable attorneys’ and agents’ fees, charges, costs
and expenses, as aforesaid, upon any Secured Obligations, and in such order as
Mortgagee may determine.  The entering
upon and taking possession of the Property, the collection of such Rents and
the application thereof as aforesaid shall not cure or waive any default or
waive, modify or affect notice of default under the Note or this Mortgage or
invalidate any act done pursuant to such notice.

8.5     Authority of Mortgagee.  Any tenants or occupants of any part of the
Property are hereby authorized to recognize the claims of Mortgagee hereunder
without investigating the reason for any action taken by Mortgagee, or the
validity or the amount of secured obligations owing to Mortgagee, or the
existence of any default in the Note or this Mortgage, or under or by reason of
this assignment of Rents and Leases, or the application to be made by Mortgagee
of any amounts to be paid to Mortgagee. 
The sole signature of Mortgagee

 28
 

shall be
sufficient for the exercise of any rights under this assignment and the sole
receipt of Mortgagee for any sums received shall be a full discharge and
release therefor to any such tenant or occupant of the Property.  Checks for all or any part of the rentals
collected under this assignment of Rents and Leases shall be drawn to the
exclusive order of Mortgagee.

8.6     Indemnification of Mortgagee.  Nothing herein contained shall be deemed to
obligate Mortgagee to perform or discharge any obligation, duty or liability of
any lessor under any Lease of the Property, and Mortgagor shall and does hereby
indemnify and hold Mortgagee harmless from any and all liability, loss or
damage which Mortgagee may or might incur under any Lease or by reason of the
assignment; and any and all such liability, loss or damage incurred by
Mortgagee, together with the costs and expenses, including reasonable attorneys’
fees, incurred by Mortgagee in defense of any claims or demands therefor
(whether successful or not), shall be additional Secured Obligations, and
Mortgagor shall reimburse Mortgagee therefor on demand.

ARTICLE 9

MISCELLANEOUS PROVISIONS

9.1     Time of the Essence.  Time is of the essence with respect to all of
Mortgagor’s obligations under the Loan Documents.

9.2     Joint and Several Obligations.  If Mortgagor is more than one person or
entity, then (a) all persons or entities comprising Mortgagor are jointly and
severally liable for all of the Secured Obligations; (b) all representations,
warranties, and covenants made by Mortgagor shall be deemed representations, warranties,
and covenants of each of the persons or entities comprising Mortgagor; (c) any
breach, Default or Event of Default by any of the persons or entities
comprising Mortgagor hereunder shall be deemed to be a breach, Default, or
Event of Default of Mortgagor; (d) any reference herein contained to the
knowledge or awareness of Mortgagor shall mean the knowledge or awareness of
any of the persons or entities comprising Mortgagor; and (e) any event creating
personal liability of any of the persons or entities comprising Mortgagor shall
create personal liability for all such persons or entities.

9.3     Waiver of Homestead and Other Exemptions.  To the extent permitted by law, Mortgagor
hereby waives all rights to any homestead or other exemption to which Mortgagor
would otherwise be entitled under any present or future constitutional,
statutory, or other provision of applicable state or federal law.  Mortgagor hereby waives any right it may have
to require Mortgagee to marshal all or any portion of the security for the
Secured Obligations.

9.4     Non-Recourse; Exceptions to Non-Recourse.  Except as expressly set forth in the Note,
the recourse of Mortgagee with respect to the obligations evidenced by the Note
and the other Loan Documents shall be solely to the Property, Chattels and
Intangible Personalty, and any other collateral given as security for the Note.

9.5     Rights and Remedies Cumulative.  Mortgagee’s rights and remedies under each of
the Loan Documents are cumulative of the rights and remedies available to Mortgagee
under each of the other Loan Documents and those otherwise available to
Mortgagee at law or in

 29
 

equity.  No act of Mortgagee shall be construed as an
election to proceed under any particular provision of any Loan Document to the
exclusion of any other provision in the same or any other Loan Document, or as
an election of remedies to the exclusion of any other remedy which may then or
thereafter be available to Mortgagee.

9.6     No Implied Waivers.  Mortgagee shall not be deemed to have waived
any provision of any Loan Document unless such waiver is in writing and is
signed by Mortgagee.  Without limiting
the generality of the preceding sentence, neither Mortgagee’s acceptance of any
payment with knowledge of a Default by Mortgagor, nor any failure by Mortgagee
to exercise any remedy following a Default by Mortgagor shall be deemed a
waiver of such Default, and no waiver by Mortgagee of any particular Default on
the part of Mortgagor shall be deemed a waiver of any other Default or of any
similar Default in the future.

9.7     No Third-Party Rights.  No person shall be a third-party
beneficiary of any provision of any of the Loan Documents.  All provisions of the Loan Documents favoring
Mortgagee are intended solely for the benefit of Mortgagee, and no third party
shall be entitled to assume or expect that Mortgagee will not waive or consent
to modification of any such provision in Mortgagee’s sole discretion.

9.8     Preservation of Liability and Priority.  Without affecting the liability of Mortgagor
or of any other person (except a person expressly released in writing) for
payment and performance of all of the Secured Obligations, and without
affecting the rights of Mortgagee with respect to any security not expressly
released in writing, and without impairing in any way the priority of this
Mortgage over the interests of any person acquired or first evidenced by
recording subsequent to the recording hereof, Mortgagee may, either before or
after the maturity of the Note, and without notice or consent:  (a) release any person liable for payment or
performance of all or any part of the Secured Obligations; (b) make any
agreement altering the terms of payment or performance of all or any of the
Secured Obligations; (c) exercise or refrain from exercising, or waive, any
right or remedy which Mortgagee may have under any of the Loan Documents; (d)
accept additional security of any kind for any of the Secured Obligations; or
(e) release or otherwise deal with any real or personal property securing the
Secured Obligations.  Any person
acquiring or recording evidence of any interest of any nature in the Property,
the Chattels, or the Intangible Personalty shall be deemed, by acquiring such
interest or recording any evidence thereof, to have agreed and consented to any
or all such actions by Mortgagee.

9.9     Subrogation of Mortgagee.  Mortgagee shall be subrogated to the lien of
any previous encumbrance discharged with funds advanced by Mortgagee under the
Loan Documents, regardless of whether such previous encumbrance has been
released of record.

9.10   Notices.  Any notice required or permitted to be given
by Mortgagor or Mortgagee under this Mortgage shall be in writing and will be
deemed given (a) upon personal delivery, (b) on the first business day after
receipted delivery to a courier service which guarantees next-business-day
delivery, or (c) on the third business day after mailing, by registered or
certified United States mail, postage prepaid, in any case to the appropriate
party at its address set forth below:

 30
 

If to Mortgagor:

Tradeport Development II, LLC

204 West Newberry Road

Bloomfield, Connecticut 06002-1308

Attention:  Anthony Galici

with a copy to:

Murtha Cullina, LLP

Cityplace One, 185 Asylum Street

Hartford, Connecticut 06103

Attention:  Thomas Daniells, Esq.

If to Mortgagee:

First SunAmerica Life Insurance Company

c/o AIG Global Investment Corp.

1 SunAmerica Center, 38th Floor

Century City

Los Angeles, California  90067-6022

Attention:  Director-Mortgage Lending and Real Estate

with a copy to:

Otten, Johnson, Robinson,

  Neff &
Ragonetti, P.C.

950 Seventeenth Street, Suite 1600

Denver, Colorado 
80202

Attention:  Aaron J. Hill, Esq.

Either party may
change such party’s address for notices or copies of notices by giving notice
to the other party in accordance with this Section.

9.11   Defeasance.  Upon payment and performance in full of all
of the Secured Obligations, Mortgagee will execute and deliver to Mortgagor
such documents as may be required to release this Mortgage of record.

9.12   Illegality.  If any provision of this Mortgage is held to
be illegal, invalid, or unenforceable under present or future laws effective
during the term of this Mortgage, the legality, validity, and enforceability of
the remaining provisions of this Mortgage shall not be affected thereby, and in
lieu of each such illegal, invalid or unenforceable provision there shall be
added automatically as a part of this Mortgage a provision as similar in terms
to such illegal, invalid, or unenforceable provision as may be possible and be
legal, valid, and enforceable.  If the
rights and liens created by this Mortgage shall be invalid or unenforceable as
to any part of the Secured Obligations, then the unsecured portion of the
Secured Obligations shall be completely paid prior to the payment of the remaining
and secured portion of the Secured Obligations, and all payments made on the
Secured Obligations shall be considered to have been

 31
 

paid on and
applied first to the complete payment of the unsecured portion of the Secured
Obligations.

9.13   Usury Savings Clause.  It is expressly stipulated and agreed to be
the intent of Mortgagee and Mortgagor at all times to comply with the
applicable law governing the highest lawful interest rate.  If the applicable law is ever judicially
interpreted so as to render usurious any amount called for under the Note or
under any of the other Loan Documents, or contracted for, charged, taken,
reserved or received with respect to the Loan, or if acceleration of the
maturity of the Note, any prepayment by Mortgagor, or any other circumstance
whatsoever, results in Mortgagor having paid any interest in excess of that
permitted by applicable law, then it is the express intent of Mortgagor and
Mortgagee that all excess amounts theretofore collected by Mortgagee be
credited on the principal balance of the Note (or, at Mortgagee’s option, paid
over to Mortgagor), and the provisions of the Note and other Loan Documents
immediately be deemed reformed and the amounts thereafter collectible hereunder
and thereunder reduced, without the necessity of the execution of any new
document, so as to comply with the applicable law, but so as to permit the
recovery of the fullest amount otherwise called for hereunder and
thereunder.  The right to accelerate
maturity of the Note does not include the right to accelerate any interest
which has not otherwise accrued on the date of such acceleration, and Mortgagee
does not intend to collect any unearned interest in the event of
acceleration.  All sums paid or agreed to
be paid to Mortgagee for the use, forbearance or detention of the Secured
Obligations evidenced hereby or by the Note shall, to the extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the
full term of such Secured Obligations until payment in full so that the rate or
amount of interest on account of such Secured Obligations does not exceed the
maximum rate or amount of interest permitted under applicable law.  The term “applicable law” as used herein
shall mean any federal or state law applicable to the Loan.

9.14   Obligations Binding Upon Mortgagor’s
Successors.  This
Mortgage is binding upon Mortgagor and Mortgagor’s successors and assigns, and
shall inure to the benefit of Mortgagee, and its successors and assigns, and
the provisions hereof shall likewise be covenants running with the land.  The duties, covenants, conditions,
obligations, and warranties of Mortgagor in this Mortgage shall be joint and
several obligations of Mortgagor and Mortgagor’s successors and assigns.

9.15   Construction.  All pronouns and any variations of pronouns
herein shall be deemed to refer to the masculine, feminine, or neuter, singular
or plural, as the identity of the parties may require.  Whenever the terms herein are singular, the
same shall be deemed to mean the plural, as the identity of the parties or the
context requires.

9.16   Attorneys’ Fees.  Any reference in this Mortgage to attorneys’
or counsel’s fees paid or incurred by Mortgagee shall be deemed to include
paralegals’ fees and legal assistants’ fees. 
Moreover, wherever provision is made herein for payment of attorneys’ or
counsel’s fees or expenses incurred by Mortgagee, such provision shall include
but not be limited to, such fees or expenses incurred in any and all judicial,
bankruptcy, reorganization, administrative, or other proceedings, including
appellate proceedings, whether such fees or expenses arise before proceedings
are commenced, during such proceedings or after entry of a final judgment.

 32
 

9.17   Waiver and Agreement.  MORTGAGOR HEREBY EXPRESSLY WAIVES ANY RIGHT
IT MAY HAVE UNDER APPLICABLE LAW TO PREPAY THE NOTE, IN WHOLE OR IN PART,
WITHOUT PREPAYMENT CHARGE, UPON ACCELERATION OF THE MATURITY DATE OF THE NOTE,
AND AGREES THAT, IF FOR ANY REASON A PREPAYMENT OF ALL OR ANY PART OF THE NOTE
IS MADE, WHETHER VOLUNTARILY OR FOLLOWING ANY ACCELERATION OF THE MATURITY DATE
OF THE NOTE BY MORTGAGEE ON ACCOUNT OF THE OCCURRENCE OF ANY EVENT OF DEFAULT
ARISING FOR ANY REASON, INCLUDING, WITHOUT LIMITATION, AS A RESULT OF ANY
PROHIBITED OR RESTRICTED TRANSFER, FURTHER ENCUMBRANCE OR DISPOSITION OF THE
PROPERTY OR ANY PART THEREOF SECURING THE NOTE, THEN MORTGAGOR SHALL BE
OBLIGATED TO PAY, CONCURRENTLY WITH SUCH PREPAYMENT, THE PREPAYMENT PREMIUM
PROVIDED FOR IN THE NOTE (OR, IN THE EVENT OF ACCELERATION WHEN THE NOTE IS
CLOSED TO PREPAYMENT, AS PROVIDED IN THE DEFINITION OF “SECURED OBLIGATIONS”
SET FORTH IN ARTICLE 1
HEREOF).  MORTGAGOR HEREBY DECLARES THAT
MORTGAGEE’S AGREEMENT TO MAKE THE LOAN AT THE INTEREST RATE AND FOR THE TERM
SET FORTH IN THE NOTE CONSTITUTES ADEQUATE CONSIDERATION, GIVEN INDIVIDUAL
WEIGHT BY MORTGAGOR, FOR THIS WAIVER AND AGREEMENT.

9.18   Waiver of Jury Trial.  MORTGAGEE AND MORTGAGOR KNOWINGLY,
IRREVOCABLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EITHER MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM BASED ON
THIS MORTGAGE, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS MORTGAGE OR
ANY LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT
(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO OR TO ANY LOAN
DOCUMENT.  THIS PROVISION IS A MATERIAL
INDUCEMENT FOR MORTGAGEE AND MORTGAGOR TO ENTER INTO THE LOAN.

9.19   Governing Laws.  The substantive laws of the State shall
govern the validity, construction, enforcement and interpretation of this
Mortgage.

9.20   Inconsistency.  In the event of any inconsistency between the
terms of the Loan Documents and the terms of that certain First Mortgage Loan
Application between Mortgagor and Mortgagee, as amended or the AIG Global
Investment Corp. Mortgage Loan Application, as amended (collectively, the “Application”),
the terms of the Loan Documents shall govern and control in all respects.

9.21   Prejudgment Remedy.  MORTGAGOR AND EACH ENDORSER, GUARANTOR AND
SURETY OF THE NOTE, AND EACH OTHER PERSON LIABLE OR WHO SHALL BECOME LIABLE FOR
ALL OR ANY PART OF THE INDEBTEDNESS EVIDENCED BY THE NOTE, HEREBY ACKNOWLEDGE
THAT THE TRANSACTION OF WHICH THE NOTE AND THIS MORTGAGE IS A PART IS A
COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED UNDER CONNECTICUT GENERAL
STATUTES SECTIONS 52–278a TO 52–278n, INCLUSIVE, OR BY OTHER APPLICABLE LAW,
HEREBY WAIVE THEIR RIGHT TO NOTICE AND HEARING WITH RESPECT TO

 33
 

ANY PREJUDGMENT
REMEDY WHICH MORTGAGEE OR ITS SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

9.22        Anti-Terrorism.

(a)   None of Mortgagor, Guarantor
or any of their respective constituents or affiliates is in violation of any
laws relating to terrorism or money laundering, including without limitation,
Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001,
and relating to Blocking Property and Prohibiting Transactions With Persons Who
Commit, Threaten to Commit, or Support Terrorism (as the same has been, or may
hereafter be, renewed, extended, amended or replaced, the “Executive Order”),
and the Bank Secrecy Act (31 U.S.C. § 5311 et
seq.), as amended by the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001 (Public Law 107-56, as the same has been, or may hereafter be,
renewed, extended, amended or replaced, the “Patriot Act”).  As used herein, “Anti-Terrorism Laws” shall
mean any laws relating to terrorism or money laundering, including the
Executive Order, the Patriot Act, the laws comprising or implementing the Bank
Secrecy Act, and the laws administered by the United States Treasury Department’s
Office of Foreign Asset Control (as any of the foregoing laws may from time to
time be renewed, extended, amended, or replaced).

(b)   None of Mortgagor,
Guarantor, their respective affiliates, or to Mortgagor’s knowledge, any person
having a beneficial interest in Mortgagor or Guarantor, any person for whom
Mortgagor or Guarantor is acting as agent or nominee, any of their respective
brokers or other agents acting in any capacity in connection with the Loan or,
to Mortgagor’s knowledge as of the date hereof, Mortgagor’s predecessor in
interest to the Property is a “Prohibited Person,” which is defined as follows:

(i)      a person
or entity that is listed in the Annex to, or is otherwise subject to the
provisions of, the Executive Order;

(ii)     a person
or entity owned or controlled by, or acting for or on behalf of, any person or
entity that is listed in the Annex to, or is otherwise subject to the
provisions of, the Executive Order;

(iii)    a person
or entity with whom Mortgagee or any bank or other institutional lender is
prohibited from dealing or otherwise engaging in any Anti-Terrorism Law;

(iv)    a person
or entity who commits, threatens or conspires to commit or supports “terrorism”
as defined in the Executive Order;

(v)     a person
or entity that is named as a “specially designated national” or “blocked person”
on the most current list published by the U.S. Treasury Department Office of
Foreign Assets Control at its official Website, http://www.treas.gov/ofac/t11sdn.pdf
or at any replacement Website or other replacement official publication of such
list; and

 34
 

 

(vi)    a person
or entity who is affiliated with a person or entity listed above.

(c)   None of Mortgagor,
Guarantor, any of their respective affiliates, to Mortgagor’s knowledge, any of
their respective brokers or other agents acting in any capacity in connection
with the Loan or, to Mortgagor’s knowledge as of the date hereof, the seller of
the Property (if any portion of the Property is being acquired with proceeds of
the Loan), does or shall (i) conduct any business or engage in any transaction
or dealing with any Prohibited Person, including making or receiving any
contribution of funds, goods or services to or for the benefit of any
Prohibited Person or leasing any portion of the Property to any Prohibited
Person, (ii) deal in, or otherwise engage in any transaction relating to, any
property or interests in property blocked pursuant to the Executive Order, or
(iii) engage in or conspire to engage in any transaction that evades or avoids,
or has the purpose of evading or avoiding, or attempts to violate, any of the
prohibitions set forth in any Anti-Terrorism Law.

(d)   Mortgagor shall promptly
deliver to Mortgagee any certification or other evidence reasonably requested
from time to time by Mortgagee confirming Mortgagor’s compliance with this
Section.  The representations, warranties
and covenants set forth in this Section shall be deemed repeated and reaffirmed
by Mortgagor as of each date that Mortgagor makes a payment to Mortgagee under
the Note, this Mortgage and the other Loan Documents or receives any payment
from Mortgagee.  Mortgagor shall promptly
notify Mortgagee in writing should Mortgagor become aware of any change in the information
set forth in these representations, warranties and covenants.

NOW THEREFORE, if
Mortgagor shall pay or cause to be paid the Secured Obligations and if
Mortgagor shall keep, perform and observe all of the covenants, agreements,
conditions and provisions of this Mortgage and the other Loan Documents, then
this Mortgage shall be null and void and of no further force and effect and
shall be released by Mortgagee after written request by, and at the expense of,
Mortgagor; otherwise to remain in full force and effect.

[Balance
of Page Intentionally Left Blank]

 35

IN WITNESS
WHEREOF, Mortgagor has executed and delivered this Mortgage as of the date
first mentioned above.

	
  

  	
   

  	
   

  	
  TRADEPORT DEVELOPMENT II, LLC, a

  
	
   

  	
   

  	
   

  	
  Connecticut limited liability company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  River Bend Associates, Inc., a Connecticut

  corporation, its Sole Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Witness:

  	
  /s/ Sara A. Taylor

  	
   

  	
  By:

  	
  /s/ Anthony Galici

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Anthony Galici

  	
   

  
	
  Witness:

  	
  /s/ Thomas M. Daniells 

  	
   

  	
  Title:

  	
  Vice President 

  	
   

  
									

 

 

	
  STATE OF CONNECTICUT

  	
  )

  
	
   

  	
  )  ss:  Hartford

  
	
  COUNTY OF HARTFORD

  	
  )

  

 

The foregoing instrument
was acknowledged before me this 15th day of November, 2006, by Anthony Galici
as Vice President of River Bend Associates, Inc., a Connecticut corporation,
sole member of Tradeport Development II, LLC, a Connecticut limited liability
company.

Witness my hand and
official seal.

	
  

  	
  /s/ Sara A. Taylor

  
	
   

  	
  Commissioner of the Superior Court

  

 

Mortgagee hereby consents and agrees to the terms of
this Mortgage.

	
  Witnesses:

  	
   

  	
   

  
	
  

  	
   

  	
  FIRST SUNAMERICA LIFE INSURANCE

  
	
   

  	
   

  	
  COMPANY, a New York corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: AIG Global Investment Corp., a New Jersey

  
	
   

  	
   

  	
  corporation, its Investment Adviser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Michelle D. Campion

  	
   

  	
   

  	
  By:

  	
  /s/ William Petak

  	
   

  
	
  Print Name: Michelle D. Campion

  	
   

  	
   

  	
  Name:

  	
  William Petak

  	
   

  
	
  /s/ Graciela V. Kroeger 

  	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  
	
  Print Name: Graciela V. Kroeger

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  STATE OF CALIFORNIA

  	
  )

  	
   

  	
   

  
	
   

  	
  ) ss:

  	
   

  	
   

  
	
  COUNTY OF LOS ANGELES

  	
  )

  	
   

  	
   

  
									

 

On November 15,
2006, before me, Lisa C. Wright, personally appeared William Petak, personally
known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

	
  WITNESS my hand and official seal.

  
	
   

  
	
  /s/ Lisa C. Wright

  	
   

  	
   

  

 

EXHIBIT A

to

MORTGAGE

PARCEL 1

THOSE CERTAIN
PIECES OR PACELS OF LAND SITUATED IN THE TOWN OF WINDSOR, COUNTY OF HARTFORD
AND STATE OF CONNECTICUT, BEING SHOWN AS 75 INTERNATIONAL DRIVE AND 758 RAINBOW
ROAD ON A CERTAIN MAP ENTITLED “REVISION TO RESUBDIVISION PREPARED FOR GRIFFIN
LAND RAINBOW ROAD & INTERNATIONAL DRIVE WINDSOR, CONNECTICUT SCALE: 1 IN =
100 FT MAY 6, 2004”, LAST REVISED 5/17/05 ACCESS PARKING & LANDSCAPING
EASEMENT, MADE BY ED LALLY AND ASSOCIATES, INC. AND ON FILE IN THE WINDSOR TOWN
CLERK’S OFFICE AS MAP NUMBER 5141 TO WHICH FURTHER REFERENCE MAY BE HAD FOR A
MORE PARTICULAR DESCRIPTION.

PARCEL 2

A CERTAIN PIECE OR
PARCEL OF LAND, WITH THE BUILDINGS AND IMPROVEMENTS THEREON, SITUATED IN THE
TOWN OF WINDSOR, COUNTY OF HARTFORD AND STATE OF CONNECTICUT, KNOWN AS NO. 754
RAINBOW ROAD, SHOWN AND DESIGNATED AS “754 RAINBOW ROAD AREA = 716,987 SP. FT.
16.460 ACRES” ON A MAP ENTITLED “REVISION TO RESUBDIVISION PREPARED FOR GRIFFIN
LAND RAINBOW ROAD & INTERNATIONAL DRIVE WINDSOR, CONNECTICUT ED LALLY AND
ASSOCIATES, INC. 111 PROSPECT HILL ROAD WINDSOR, CT 06095 (860) 638-2413 SCALE:
1 IN = 100 FT MAY 6, 2004 DATED 5/28/04 REVISION PER TOWN STAFF 1/08/05 LOT
LINES AND ACCESS EASEMENT – SEE NOTE 5 5/17/05 ACCESS, PARKING &
LANDSCAPING EASEMENT” WHICH MAP IS ON FILE IN THE WINDSOR TOWN CLERK’S OFFICE
AS MAP NO. 5141.

TOGETHER WITH A 75
FOOT ACCESS, UTILITY, LANDSCAPING AND PARKING EASEMENT IN FAVOR OF 75
INTERNATIONAL DRIVE, 758 RAINBOW ROAD, AND 754 RAINBOW ROAD AND, AS SHOWN ON
MAP NO. 5141 ON FILE IN THE WINDSOR TOWN CLERK’S OFFICE.

TOGETHER WITH THE
RIGHTS AND EASEMENTS SET FORTH IN A RECIPROCAL EASEMENT AGREEMENT BY AND
BETWEEN RIVER BEND ASSOCIATES, INC. AND TRADEPORT DEVELOPMENT II, LLC DATED AS
OF JULY 6, 2005 AND RECORDED IN THE WINDSOR LAND RECORDS ON JULY 7, 2005 AT
4:20 P.M. IN VOLUME 1508 AT PAGE 427.

 A-1

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