Document:

PROMISSORY NOTE

$50,000,000.00                                                   August 27, 2007

     1. Promise To Pay.

     FOR VALUE RECEIVED, ANTHRACITE CAPITAL, INC., a Maryland corporation,
having an address at 40 East 52nd Street, New York, New York 10022 (the
"Borrower"), promises to pay to the order of KEYBANK NATIONAL ASSOCIATION, a
national banking association having an address at 127 Public Square, Cleveland,
Ohio 44114 (the "Lender"), the principal sum of FIFTY MILLION DOLLARS
($50,000,000.00) or so much thereof as may be advanced from time to time, with
interest thereon, or on the amount thereof from time to time outstanding, to be
computed, as hereinafter provided, on each advance from the date of its
disbursement until such principal sum shall be fully paid. Interest shall be
payable in arrears monthly on the last Business Day (as defined below) of each
month commencing September 28, 2007 at a rate equal to the aggregate of: (i) one
and one-half percent (1.5%); plus (ii) the LIBOR Rate (as defined below). Any
amounts then due that are not paid within two (2) Business Days after demand by
the Lender shall accrue interest at a rate equal to the aggregate of: (i) four
percent (4%); plus (ii) the Variable Rate (as defined below). Interest will be
calculated on the basis of a 360 day year and the actual number of days elapsed.
The total principal sum, or the amount thereof outstanding, together with any
accrued but unpaid interest, shall be due and payable in full on November 27,
2007 (the "Initial Maturity Date") subject however to acceleration or extension
as provided herein. As long as no Event of Default exists the Borrower may
extend the Initial Maturity Date until February 27, 2008 (the "Extended Maturity
Date") upon: (i) prior written notice to the Lender from the Borrower requesting
such extension at least ten (10) days but no more than thirty (30) days prior to
the Initial Maturity Date, and (ii) payment to the Lender of an extension fee of
fifty (50) basis points of the then outstanding balance of this Note. (The
initial Maturity Date and the Extended Maturity Date collectively the "Maturity
Date".) Any amounts repaid hereunder may not be reborrowed.

     2. Definitions.

     As used herein the following terms shall have the following meanings:

          a. Adjusted Federal Funds Rate means the Federal Funds Rate plus fifty
(50) basis points.

          b. Business Day means any day of the year on which offices of KeyBank
National Association are not required or authorized by law to be closed for
business in Boston, Massachusetts. If any day on which a payment is due is not a
Business Day, then the payment shall be due on the next day following which is a
Business Day. Further, if there is no corresponding day for a payment in the
given calendar month (i.e., there is no "February 30th"), the payment shall be
due on the last Business Day of the calendar month.

          c. Federal Funds Rate means, for any day, the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) equal to the weighted average
of the rates on overnight

                                       1

Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers on such day, as published by the Federal Reserve Bank
of New York on the Business Day next succeeding such day; provided that (a) if
such day is not a Business Day, the Federal Funds Rate for such day shall be
such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such
day shall be the average rate charged to the Lender on such day on such
transactions as reasonably determined by the Lender.

          d. LIBOR Rate means, the rate per annum (rounded upward, if necessary,
to the nearest one hundred-thousandth of a percentage point) as determined on
the basis of the offered rates for deposits in U.S. dollars for thirty (30) days
which appears on the Telerate page 3750 (or its successor publication) as of
11:00 a.m. London time on the day that is two London Banking Days preceding the
first day of such loan; provided, however, if the rate described above does not
appear on the Telerate System on any applicable interest determination date, the
LIBOR Rate shall be the rate (rounded upwards as described above, if necessary)
determined on the basis of the offered rates for deposits in U.S. dollars for
thirty (30) days which are offered by four major banks in the London interbank
market at approximately 11:00 a.m. London time, on the day that is two (2)
London Banking Days preceding the first day of such loan as selected by the
Lender. The principal London office of each of the four major London banks will
be required to provide a quotation of its U.S. dollars deposit offered rate. If
at least two such quotations are provided, the rate for that date will be the
arithmetic mean of the quotations. If fewer than two quotations are provided as
requested, the rate for that date will be determined on the basis of the rates
quoted for loans in U.S. dollars to leading European banks for thirty (30) days
offered by major banks in New York City at approximately 11:00 a.m. New York
City time, on the day that is two London Banking Days preceding the first day of
such loan. In the event that the Lender is unable to obtain any such quotation
as provided above, it will be deemed that the LIBOR Rate cannot be determined
and interest shall accrue at the Variable Rate. In the event that the Board of
Governors of the Federal Reserve System shall impose a Reserve Percentage with
respect to LIBOR Rate deposits of the Lender, then for any period during which
such Reserve Percentage shall apply, the LIBOR Rate shall be equal to the amount
determined above divided by an amount equal to 1 minus the Reserve Percentage.
"Reserve Percentage" shall mean the maximum aggregate reserve requirement
(including all basic, supplemental, marginal and other reserves) which is
imposed on member banks of the Federal Reserve System against "Euro-Currency
Liabilities" as defined in Regulation D of the Federal Reserve Board.

          e. London Banking Day means any day on which dealings in deposits in
U.S. Dollars are transacted in the London interbank market.

          f. Prime Rate means the per annum rate of interest so designated from
time to time by KeyBank National Association as its prime rate. The Prime Rate
is a reference rate and does not necessarily represent the lowest or best rate
being charged to any customer.

          g. Variable Rate means a per annum rate equal at all times to the
greater of (a) Prime Rate and (b) Adjusted Federal Funds Rate. Changes in the
Variable Rate shall be effective simultaneously with any change in the Prime
Rate or Federal Funds Rate, as applicable.

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     3. Acceleration; Event of Default.

     Upon the occurrence of any one or more of the following events (herein,
"Events of Default"), any and all liabilities of the Borrower to the Lender
shall become immediately due and payable, at the option of the Lender and
without notice or demand. Upon the occurrence of any Event of Default described
in Subsection (ix) any and all liabilities of the Borrower to the Lender shall
become due and payable immediately without any further act on the part of the
Lender. The occurrence of any Event of Default shall also constitute, without
notice or demand, a default under all other agreements between the Lender, and
the Borrower and instruments and papers given the Lender by the Borrower,
whether such agreements, instruments, or papers now exist or hereafter arise.:

               (i) The failure by the Borrower to pay upon demand any amount due
     under this Note when due.

               (ii) The failure by the Borrower to pay, when due, any other
     liabilities, obligations, or indebtedness to the Lender (the
     "Obligations").

               (iii) The determination by the Lender that any representation or
     warranty heretofore, now or hereafter made by the Borrower to the Lender,
     in any documents, instrument, agreement, or paper was not true or accurate
     when given in any material respect.

               (iv) The occurrence of any event such that any material
     indebtedness in excess of $10 million of the Borrower from any lender other
     than the Lender could be accelerated, notwithstanding that such
     acceleration has not taken place.

               (v) The occurrence of any event which would cause a lien
     creditor, as that term is defined in Section 9-102 of the U.S. bankruptcy
     code, to take priority over advances made by the Lender with respect to any
     security or collateral given to secure this Note.

               (vi) A filing against or relating to the Borrower of (A) a
     federal tax lien in favor of the United States of America or any political
     subdivision of the United States of America, or (B) a state tax lien in
     favor of any state of the United States of America or any political
     subdivision of any such state, in each case that is not removed with in
     thirty (30) days of the filing thereof.

               (vii) The occurrence of any event of default under any agreement
     between the Lender and the Borrower or instrument or paper given the Lender
     by the Borrower, whether such agreement, instrument, or paper now exists or
     hereafter arises (notwithstanding that the Lender may not have exercised
     its rights upon default under any such other agreement, instrument or
     paper).

               (viii) Any act by, against, or relating to the Borrower, or its
     property or assets, which act constitutes the application for, consent to,
     or sufferance of the appointment of a receiver, trustee or other person,
     pursuant to court action or otherwise, over all, or any part of the
     Borrower's property (in the case of an involuntary proceeding, that is not
     dismissed within 45 days of filing).

               (ix) The granting of any trust mortgage or execution of an
     assignment for the benefit of the creditors of the Borrower, or the
     occurrence of any other voluntary

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     or involuntary liquidation (in the case of an involuntary liquidation, that
     is not dismissed within 45 days of filing) or extension of debt agreement
     for the Borrower; the failure by the Borrower to generally pay the debts of
     the Borrower as they mature; adjudication of bankruptcy or insolvency
     relative to the Borrower; the entry of an order for relief or similar order
     with respect to the Borrower in any proceeding pursuant to Title 11 of the
     United States Code entitled "Bankruptcy" (hereinafter the "Bankruptcy
     Code") or any other federal bankruptcy law; the filing of any complaint,
     application, or petition by or against the Borrower initiating any matter
     in which the Borrower is or may be granted any relief from the debts of the
     Borrower pursuant to the Bankruptcy Code or any other insolvency statute or
     procedure (in the case of an involuntary proceeding, that is not dismissed
     within 45 days of filing); the calling or sufferance of a meeting of
     creditors of the Borrower; the meeting by the Borrower of a formal or
     informal creditor's committee; the offering by or entering into by the
     Borrower of any composition, extension or any other arrangement seeking
     relief or extension for the debts of the Borrower, or the initiation of any
     other judicial or non-judicial proceeding or agreement by, against or
     including the Borrower which seeks or intends to accomplish a
     reorganization or arrangement with creditors (in the case of an involuntary
     proceeding, that is not dismissed within 45 days of filing).

               (x) The entry of any judgment(s) in excess of $10 million against
     the Borrower, which judgment(s) is not satisfied or appealed from (with
     execution or similar process stayed) within fifteen (15) days of its entry.

               (xi) The entry of any final court order which enjoins, restrains
     or in any way prevents the Borrower from conducting all or any part of its
     business affairs in the ordinary course of business.

               (xii) The service of any process upon the Lender seeking to
     attach by trustee process any funds of the Borrower on deposit with the
     Lender.

               (xiv) Any change in the identity, authority or responsibilities
     of any person having management or policy authority with respect to the
     Borrower and/or any merger or direct or indirect change in the ownership of
     substantially all of the capital stock of the Borrower from that existing
     at the execution of this Agreement.

               (xv) The occurrence of any material uninsured loss, theft, damage
     or destruction to any material asset(s) of the Borrower.

               (xvi) [intentionally deleted].

               (xvii) The termination of existence, dissolution, or liquidation
     of the Borrower, or the ceasing to carry on actively any substantial part
     of the Borrower's current business.

               (xviii) The security interest granted to the Lender by the
     Borrower shall, at any time after its execution and delivery and for any
     reason, cease (A) to create a valid and perfected first priority security
     interest in and to the property purported to be subject to such agreement;
     or (B) to be in full force and effect or shall be declared null and void,
     or the validity or enforceability hereof shall be contested by the Borrower
     or any guarantor of the Borrower denies it has any further liability or
     obligation hereunder.

                                       4

               (xix) Any of the following events occur or exist with respect to
     the Borrower or any affiliate (as defined in the Employee Retirement Income
     Security Act of 1974, as amended ("ERISA")): (A) any "prohibited
     transaction" (as defined in Section 406 of ERISA or Section 4975 of the
     Internal Revenue Code) involving any Plan; (B) any "reportable event" (as
     defined in Section 4043 of ERISA and the regulations issued under such
     Section) shall occur with respect to any Plan; (C) The filing under Section
     4041 of ERISA of a notice of intent to terminate any Plan or the
     termination of any Plan; (D) any event or circumstance exists which might
     constitute grounds entitling the Pension Benefit Guaranty Corporation
     (PBGC) to institute proceedings under Section 4042 of ERISA for the
     termination of, or for the appointment of a trustee to administer, any
     Plan, or the institution by the PBGC of any such proceedings; (E) or
     partial withdrawal under Section 4201 or 4204 of ERISA from a Multiemployer
     Plan or the reorganization, insolvency, or termination of any Multiemployer
     Plan; and in each case above, such event or condition, together with all
     other events or conditions, if any, could in the opinion of the Lender
     subject the Borrower to any tax, penalty, or other liability to a Plan, a
     Multiemployer Plan, the PBGC, or otherwise.

     4. Certain Waivers, Consents and Agreements.

     Each and every party liable hereon or for the indebtedness evidenced hereby
whether as maker, endorser, guarantor, surety or otherwise hereby: (a) waives
presentment, demand, protest, suretyship defenses and defenses in the nature
thereof; (b) agrees to any substitution, exchange, release, surrender or other
delivery of any security or collateral now or hereafter held hereunder, and to
the addition or release of any other party or person primarily or secondarily
liable; (c) agrees that if any security or collateral given to secure this Note
shall be found to be unenforceable in full or to any extent, or if the Lender or
any other party shall fail to duly perfect or protect such collateral, the same
shall not relieve or release any party liable hereon or thereon nor vitiate any
other security or collateral given for any obligations evidenced hereby or
thereby; (d) agrees to pay all costs and expenses incurred by the Lender or any
other holder of this Note in connection with the collection of the indebtedness
evidenced hereby and the enforcement of rights and remedies hereunder, whether
or not suit is instituted; and (e) consents to all of the terms and conditions
contained in this Note, and all other instruments now or hereafter executed
evidencing or governing all or any portion of any security or collateral given
for this Note.

     5. Delay Not A Bar.

     No delay or omission on the part of the holder in exercising any right
hereunder or any right under any instrument or agreement now or hereafter
executed in connection herewith, or any agreement or instrument which is given
or may be given to secure the indebtedness evidenced hereby, or any other
agreement now or hereafter executed in connection herewith shall operate as a
waiver of any such right or of any other right of such holder, nor shall any
delay, omission or waiver on any one occasion be deemed to be a bar to or waiver
of the same or of any other right on any future occasion.

     6. Partial Invalidity.

     The invalidity or unenforceability of any provision hereof, or of any other
instrument, agreement or document now or hereafter executed in connection with
this Note shall not impair

                                       5

or vitiate any other provision of any of such instruments, agreements and
documents, all of which provisions shall be enforceable to the fullest extent
now or hereafter permitted by law.

     7. Compliance With Usury Laws.

     All agreements between the Borrower and the Lender are hereby expressly
limited so that in no contingency or event whatsoever, whether by reason of
acceleration of maturity of the indebtedness evidenced hereby or otherwise,
shall the amount paid or agreed to be paid to the Lender for the use or the
forbearance of the indebtedness evidenced hereby exceed the maximum permissible
under applicable law. As used herein, the term "applicable law" shall mean the
law in effect as of the date hereof, provided, however, that in the event there
is a change in the law which results in a higher permissible rate of interest,
then this Note shall be governed by such new law as of its effective date. In
this regard, it is expressly agreed that it is the intent of the Borrower and
the Lender in the execution, delivery and acceptance of this Note to contract in
strict compliance with the laws of the Commonwealth of Massachusetts from time
to time in effect. If, under or from any circumstances whatsoever, fulfillment
of any provision hereof at the time performance of such provision shall be due,
shall involve transcending the limit of validity prescribed by applicable law,
then the obligation to be fulfilled shall automatically be reduced to the limit
of such validity, and if under or from any circumstances whatsoever the Lender
shall ever receive as interest an amount which would exceed the highest lawful
rate, such amount which would be excessive interest shall be applied to the
reduction of the principal balance evidenced hereby and not to the payment of
interest. This provision shall control every other provision of all agreements
between the Borrower and the Lender.

     8. Governing Law and Consent to Jurisdiction.

     8.1. Substantial Relationship. It is understood and agreed that this Note
was negotiated and delivered in the Commonwealth of Massachusetts, which State
the parties agree has a substantial relationship to the parties and to the
underlying transactions embodied by this Note.

     8.2. Place of Delivery. The Borrower agrees to furnish to the Lender at the
Lender's office in Boston, Massachusetts all further instruments, certifications
and documents to be furnished hereunder.

     8.3. Governing Law. This Note shall in all respects be governed, construed,
applied and enforced in accordance with the internal laws of the Commonwealth of
Massachusetts without regard to principles of conflicts of law.

     8.4. Consent to Jurisdiction. The Borrower hereby consents to personal
jurisdiction in any state or Federal court located within the City of Boston,
Commonwealth of Massachusetts.

     9. Waiver of Jury Trial.

     THE BORROWER AND THE LENDER MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE, OR ANY
COURSE OF CONDUCT, COURSE OF

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DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS
WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR THE LENDER TO ACCEPT THIS NOTE AND
MAKE THE LOAN EVIDENCED HEREBY.

     10. Security.

     This Note is secured by certain Collateral as set forth in a certain Pledge
and Security Agreement of even date.

     11. No Oral Change.

     This Note may only be amended, terminated, extended or otherwise modified
by a writing signed by the party against which enforcement is sought. In no
event shall any oral agreements, promises, actions, inactions, knowledge, course
of conduct, course of dealing, or the like be effective to amend, terminate,
extend or otherwise modify this Note.

     12. Rights of the Holder.

     This Note and the rights and remedies provided for herein may be enforced
by the Lender or any holder hereof. Wherever the context permits each reference
to the term "holder" herein shall mean and refer to the Lender or the then
holder of this Note.

     13. Survival.

     This Note shall survive and continue in full force and effect beyond and
after the payment and satisfaction of the obligations hereunder in the event
that the Lender is required to disgorge or return any payment or property
received as a result of any laws pertaining to preferences, fraudulent transfers
or fraudulent conveyances but such survival and continuation shall be limited to
the amount of such disgorgement or return.

     14. Replacement of Lost Note.

     Upon receipt of an affidavit of an officer of the Lender as to the loss,
theft, destruction or mutilation of this Note, the Borrower will issue, in lieu
thereof, a replacement Note in the same principal amount thereof and otherwise
of like tenor.

                          (signature on following page)

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     IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed
as of the date set forth above as a sealed instrument.

                                        BORROWER:

                                        ANTHRACITE CAPITAL, INC.

                                        By: /s/ Richard Shea
                                            ------------------------------------
                                            Name: Richard Shea
                                            Title: President

                   Signature Page to $50,000,000 Promissory NoteOWNERSHIP INTERESTS PLEDGE AND SECURITY AGREEMENT

1. Grant of Security Interest. ANTHRACITE CAPITAL, INC., a Maryland corporation,
having an address at 40 East 52nd Street, New York, New York 10022 ("Pledgor"),
does hereby pledge, assign, transfer and deliver to KeyBank National
Association, a national banking association, having an address at 127 Public
Square, Cleveland, Ohio 44114 (the "Lender"), a continuing security interest in
the Collateral (as hereinafter defined) to secure the payment and performance in
full of the Obligations (as hereinafter defined).

2. Promissory Note and Defined Terms. This agreement ("Pledge and Security
Agreement" or "Agreement") is delivered pursuant to the terms of that certain
Promissory Note (the "Promissory Note"), dated of even date hereof, from
Pledgor, as borrower, to the Lender. Capitalized terms used herein which are not
otherwise specifically defined herein shall have the same meaning herein as in
the Promissory Note.

3. Collateral. The term "Collateral" shall mean and include the following
property, wherever located:

     (a)  all of Pledgor's right, title and interest (including, without
          limitation, Pledgor's voting rights) in the investments described on
          Exhibit A as "Pledged Interests" (all interests in the Collateral
          pursuant to this clause (a) or clause (b) below of this Section 3 are
          referred to herein as "Pledged Interests");

     (b)  all certificates or other instruments, if any, representing a Pledged
          Interest;

     (c)  all Pledgor's income, cash flow, rights of distribution (whether in
          cash, property or equity interests), dividends, interest, proceeds,
          accounts, fees, profits, rights of redemption or other rights to
          payment which in any way relate to or arise out of the Pledged
          Interests; and

     (d)  all rights of access arising from the Pledged Interests to books,
          records, information and electronically stored data relating to any of
          the foregoing.

4. Obligations. The term "Obligations" shall mean all obligations of Pledgor to
the Lender, whether now existing or hereafter arising, direct or indirect,
absolute or contingent, under any one or more of: (i) this Agreement; (ii) the
Promissory Note; (iii) all other documents executed in connection with the loan
made by the Lender to Pledgor pursuant to the Promissory Note (the "Loan
Documents"); and (iv) each of the same as hereafter modified, amended, extended
or replaced in accordance with the terms thereof.

5. Warranties and Representations. Pledgor warrants and represents to, and
agrees with, the Lender that:

     5.1  Pledgor is the owner of the Collateral free and clear of all pledges,
          liens, security interests and other encumbrances of every nature
          whatsoever, except for (i) any

                                      -1-

          liens or encumbrances in effect as of the date hereof which have been
          disclosed to the Lender; or (ii) any such liens or encumbrances in
          favor of the Lender;

     5.2  Pledgor has the full right, power and authority to pledge the
          Collateral and to grant the security interest in the Collateral as
          herein provided;

     5.3  There are no restrictions on, or consents required with respect to,
          the transfer of the Collateral to the Lender hereunder, or with
          respect to any subsequent transfer thereof or realization thereupon by
          the Lender;

     5.4  Each Pledged Interest listed on Exhibit A is as described and set
          forth on Exhibit A attached hereto and made a part hereof;

     5.5  True and complete copies of the organizational documents of each of
          the entities listed on Exhibit A have been delivered by Pledgor to the
          Lender, and, as of the date hereof, the same have not been further
          amended or modified in any respect whatsoever;

     5.6  All of the warranties and representations made by or in respect of
          Pledgor under the Promissory Note are true and accurate;

     5.7  The execution, delivery and performance of this Agreement by Pledgor
          does not and shall not result in the violation of any mortgage,
          indenture, material contract, instrument, agreement, judgment, decree,
          order, statute, rule or regulation to which Pledgor is subject, or by
          which it or any of its property is bound; and

     5.8  This Agreement has been duly authorized, executed and delivered by
          Pledgor and constitutes a legal, valid and binding obligation of
          Pledgor, enforceable in accordance with the terms hereof, subject to
          bankruptcy, insolvency and similar laws of general application
          affecting the rights and remedies of creditors.

6. Pledgor's Agreements. Pledgor agrees so long as any of the Obligations remain
outstanding that:

     6.1  Pledgor shall execute all such instruments, documents and papers, and
          will do all such acts as the Lender may reasonably request from time
          to time to carry into effect the provisions and intent of this
          Agreement including, without limitation, the execution of
          stop-transfer orders, stock powers, notifications to obligors on the
          Collateral, the providing of notification in connection with
          book-entry securities or general intangibles, and the providing of
          instructions to the issuers of uncertificated securities, and will do
          all such other acts as the Lender may reasonably request with respect
          to the perfection and protection of the pledge and security interests
          granted herein and the assignments effected hereby including, without
          limitation, the execution and delivery of any amendments to this
          Agreement to evidence the investments or portions thereof included in
          the Collateral, and authorizes the Lender at any time and from time to
          time to file UCC financing statements,

                                      -2-

          continuation statements, and amendments thereto describing the
          Collateral without the signature of Pledgor;

     6.2  Except for any liens or encumbrances in effect as of the date hereof
          that have been disclosed to the Lender or liens or encumbrances
          permitted by the Promissory Note, Pledgor shall keep the Collateral
          free and clear of all liens, encumbrances, attachments, security
          interest pledges and charges;

     6.3  Pledgor shall not transfer the Collateral or any direct or indirect
          interest therein to any other person;

     6.4  Pledgor shall deliver to the Lender, if and when received by Pledgor,
          any item representing or constituting any of the Collateral. If under
          any circumstance whatsoever any such proceeds should be paid to or
          come into the hands of Pledgor, Pledgor shall hold the same in trust
          for immediate delivery to the Lender to be held as additional
          Collateral;

     6.5  Except as permitted by this Agreement, Pledgor shall not exercise any
          right with respect to the Collateral which would materially dilute or
          materially adversely affect the Lender's security interest in the
          Collateral;

     6.6  Pledgor shall not, without the prior written consent of the Lender in
          each instance, which consent shall not be unreasonably withheld,
          conditioned or delayed, vote the Collateral in favor of or consent to
          any resolution or action which does or might:

          (i)   impose any additional restrictions upon the sale, transfer or
                disposition of the Collateral other than restrictions, if any,
                the application of which is waived to the full satisfaction of
                the Lender as to the Collateral; or

          (ii)  result in the issuance of any additional interest in any of the
                investment entities listed on Exhibit A, or of any class of
                security, which issuance could reasonably be expected to
                materially adversely affect the value of the Collateral; or

          (iii) vest additional powers, privileges, preferences or priorities in
                any other class of interest in any of the investment entities
                listed on Exhibit A to the material detriment of the value of or
                rights accruing to the Collateral; or

          (iv)  permit any of the investment entities listed on Exhibit A to
                sell, transfer, assign, pledge, mortgage, or otherwise encumber
                any property, assets or investments owned by such entity, or to
                incur any new Indebtedness;

     6.7  Pledgor shall not enter into or consent to any amendment or
          modification of or with respect to the governing documents of any of
          the investment entities listed on Exhibit A which could reasonably be
          expected to materially adversely affect the value of the Collateral
          without the prior written consent of the Lender in each

                                      -3-

          instance, which consent shall not be unreasonably withheld,
          conditioned or delayed;

     6.8  Insofar as the same may be material or significant to the Lender's
          interests, Pledgor shall perform in all material respects all of its
          obligations as a partner, member or shareholder of each of the
          investment entities listed on Exhibit A and shall enforce, to the
          extent provided for it in the governing documents of such entities all
          of the obligations of the other shareholders, partners or members of
          such entity;

     6.9  Pledgor shall not itself or on behalf of any investment entities
          listed on Exhibit A take any action which would cause or result in a
          violation of any provisions of the Loan Documents;

     6.10 Pledgor shall take all such actions as may be necessary or desirable
          in order to insure that all of the Obligations of Pledgor under the
          Loan Documents are punctually and faithfully paid and performed in the
          manner provided for therein;

     6.11 Pledgor shall, with reasonable promptness, but in all events within
          ten (10) days after it has actual knowledge thereof, notify the Lender
          in writing of the occurrence of any act, event or condition which
          Pledgor, in its good faith determination, believes constitutes a
          default or Event of Default under any of the Loan Documents,
          specifying the nature and existence thereof. Such notification shall
          include a written statement of any remedial or curative actions which
          Pledgor proposes to undertake to cure or remedy such default or Event
          of Default;

     6.12 Pledgor agrees so long as any of the Obligations remain outstanding,
          it shall comply with each of the following covenants:

          6.12.1 Annual Statements. Within ninety (90) days following the end of
          each fiscal year, a consolidated balance sheet, an income statement, a
          statement of changes in shareholders' equity and a statement of cash
          flows of Pledgor as of the end of such fiscal year, setting forth in
          comparative form consolidated figures for the preceding fiscal year,
          all such financial information described above to be in reasonable
          form and detail and audited by an independent certified public
          accounting firm of recognized national standing reasonably acceptable
          to the Lender, and whose opinion shall be to the effect that such
          financial statements have been prepared in accordance with GAAP and
          shall not be limited as to the scope of the audit or qualified as to
          the status of Pledgor as a going concern or otherwise;

          6.12.2 Periodic Statements. Within forty-five (45) days following the
          end of each fiscal quarter of Pledgor (other than the fourth fiscal
          quarter, in which case ninety (90) days after the end thereof) an
          unaudited consolidated balance sheet, income statement and statement
          of changes in shareholders' equity of Pledgor as of the end of such
          fiscal quarter, all such financial information described above to be
          in reasonable form and detail and reasonably acceptable to the Lender;

                                      -4-

          6.12.3 Data Requested. Within a reasonable period of time after a
          request from the Lender, such other financial data or information as
          the Lender may reasonably request with respect to any of the Pledged
          Interests;

          6.12.4 Tax Returns. Within a reasonable period of time after a request
          from the Lender, complete copies of all federal and state tax returns
          and supporting schedules of Pledgor;

          6.12.5 Auditor's Reports. Promptly upon receipt thereof, a copy of any
          other report or "management letter" submitted by independent
          accountants to Pledgor in connection with any annual, interim or
          special audit of the books of Pledgor;

          6.12.6 Other Information. With reasonable promptness upon any such
          request, such other information regarding the business, properties or
          financial condition of Pledgor as the Lender may reasonably request;

          6.12.7 Restrictions on Liens. Pledgor shall not, without the prior
          written consent of the Lender (which consent may be withheld in the
          Lender's sole discretion) (a) further encumber the Pledged Interests;
          (b) alter in a material way the character or conduct of its business
          from that conducted as of the date hereof; (c) dissolve, terminate or
          liquidate, nor merge or consolidate with any other person;

          6.12.8 Place for Records, Inspection. Pledgor shall maintain all of
          its business records at the address specified at the beginning of this
          Agreement. Upon reasonable prior notice and at reasonable times during
          normal business hours, the Lender shall have the right (through such
          agents or consultants as the Lender may designate) to make copies of
          and abstracts from Pledgor's books of account, correspondence and
          other records and to discuss its financial and other affairs with any
          of its investors and any accountants hired by Pledgor;

          6.12.9 Expenses. Pledgor shall pay all costs and expenses reasonably
          incurred by the Lender in connection with the enforcement of the
          Lender's rights under the Loan Documents, including, without
          limitation, reasonable third party costs and expenses, including
          reasonable legal fees and disbursements, appraisal fees, inspection
          fees, plan review fees, travel costs, fees and out-of-pocket costs of
          consultants. Pledgor's obligations to pay such costs and expenses
          shall include, without limitation, all reasonable attorneys' fees and
          other costs and expenses reasonably incurred for preparing and
          conducting litigation or dispute resolution arising from any breach by
          Pledgor of any covenant, warranty, representation or agreement under
          any Loan Document;

          6.12.10 Compliance with Legal Requirements. Pledgor shall comply, in
          all material respects with all laws, rules, regulations, orders and
          decrees (including without limitation environmental laws) applicable
          to it, or to its properties ("Legal Requirements"). In furtherance of
          the foregoing and not in limitation thereof, Pledgor hereby agrees to
          provide the Lender with any additional information that the Lender
          reasonably requests from time to time in order to ensure compliance by

                                      -5-

          Pledgor with all applicable Anti-Money Laundering Laws. As used
          herein, the term "Anti-Money Laundering Laws" shall mean the USA
          Patriot Act of 2001, the Bank Secrecy Act, and Executive Order 13324 -
          Blocking Property and Prohibiting Transactions With Persons Who
          Commit, Threaten to Commit, or Support Terrorism, and any similar
          Legal Requirements;

          6.12.11 Insurance. Pledgor will maintain with financially sound and
          reputable insurers, insurance with respect to such properties and its
          business against such casualties and contingencies as shall be in
          accordance with the general practices of businesses engaged in similar
          activities in similar geographic areas and in amounts, containing such
          terms, in such forms and for such periods as may be reasonable and
          prudent;

          6.12.12 Taxes. Pledgor will pay or cause to be paid taxes, assessments
          and other governmental charges payable by it and file all returns and
          reports relating thereto before the same become delinquent including,
          without limitation, upon its income or profits. Promptly upon request
          by the Lender, Pledgor will provide evidence of the payment of such
          taxes, assessments and other governmental charges in the form of
          receipted tax bills or other form reasonably acceptable to the Lender,
          or evidence of the existence of applicable contests as permitted
          herein; and

          6.12.13 Existence of Pledgor, Maintenance of REIT Status. Pledgor will
          do or cause to be done all things necessary to preserve and keep in
          full force and effect its existence as a Maryland corporation. Pledgor
          will do all things commercially reasonable, to maintain its status as
          a REIT and not take any action which could lead to its
          disqualification as a REIT.

7. Events of Default.

     7.1  Upon the occurrence and during the continuance of any Event of
          Default, the Lender may exercise any one or more of the rights and
          remedies as hereinafter set forth or as set forth and provided for in
          each of the other Loan Documents.

     7.2  Prior to the occurrence of an Event of Default, and after the cure of
          such Event of Default (if cured prior to an acceleration of the
          Maturity Date by the Lender) and the reimbursement by Pledgor of all
          expenses incurred by the Lender resulting from such Event of Default,
          Pledgor shall be entitled to exercise any and all rights to receive
          cash dividends and distributions, consent, vote, approve, elect,
          determine, consult, propose, agree, and all other rights or
          prerogatives, if any, pertaining to the Collateral or any part
          thereof, to the extent permitted under the terms of the Promissory
          Note and other Loan Documents.

                                     -6-

8. After Event of Default

     8.1  Upon the occurrence and during the continuance of any Event of
          Default, and at any time the Lender shall have all of the rights and
          remedies of a secured party upon default under the Uniform Commercial
          Code as adopted in the Commonwealth of Massachusetts, in addition to
          which the Lender may sell or otherwise dispose of the Collateral or
          any portion thereof and/or enforce and collect the Collateral or any
          portion thereof (including, without limitation, the liquidation of
          debt instruments or securities and the exercise of conversion rights
          with respect to convertible securities, whether or not such
          instruments or securities have matured, and whether or not any
          penalties or other charges are imposed on account of such action) for
          application towards (but not necessarily in complete satisfaction of)
          the Obligations. The proceeds of any such collection or of any such
          sale or other disposition of the Collateral, or any portion thereof
          shall be applied as the Lender shall determine. Pledgor shall remain
          liable to the Lender for any deficiency remaining following such
          application. Any surplus remaining after payment in full of all
          Obligations shall be paid over to Pledgor or to whomsoever may be
          lawfully entitled to receive such surplus.

     8.2  Unless the Collateral is perishable, threatens to decline speedily in
          value, or is of a type customarily sold on a recognized market (in
          which event the Lender shall give Pledgor such notice as may be
          practicable under the circumstances), the Lender shall give Pledgor at
          least the greater of the minimum notice required by law or ten (10)
          days' prior written notice of the date, time and place of any public
          sale thereof, or of the time after which any private sale or any other
          intended disposition is to be made.

     8.3  Pledgor acknowledges that any exercise by the Lender of Lender's
          rights upon an Event of Default will be subject to compliance by the
          Lender with the applicable statutes, regulations, ordinances,
          directives and orders of any federal, state, municipal or other
          governmental authority including, without limitation, any of the
          foregoing which may restrict the sale or disposition of securities.
          The Lender in its sole discretion, but in good faith, at any such sale
          or in connection with any such disposition may restrict the
          prospective bidders or purchasers as to the nature of business,
          investment intention, or otherwise, including, without limitation, a
          requirement that the persons making such purchases represent and agree
          to the satisfaction of the Lender that they are purchasing the
          Collateral, or some portion thereof, for their own account, for
          investment and not with a view towards the distribution or a sale
          thereof, or that they otherwise fall within some lawful exemption from
          registration under applicable laws.

9. Actions By the Lender. Pledgor hereby appoints the Lender, or any agent
designated by the Lender, as the attorney-in-fact of Pledgor after an Event of
Default has occurred and is continuing to: (a) endorse in favor of the Lender
any of the Collateral; (b) cause the transfer of any of the Collateral in such
name as the Lender may from time to time determine; (c) renew, extend or roll
over any Collateral; (d) make, demand and initiate actions to enforce any of the
Collateral or rights therein; and (e) file financing statements, continuation
statements, and amendments thereto describing the Collateral without the
signature of Pledgor. The Lender may

                                      -7-

take such action with respect to the Collateral as the Lender may reasonably
determine to be necessary to protect and preserve its interest in the
Collateral. The Lender shall also have and may exercise at any time after an
Event of Default has occurred and is continuing all rights, remedies, powers,
privileges and discretions of Pledgor with respect to and under the Collateral.
The within designation and grant of power of attorney is coupled with an
interest and is irrevocable until this Pledge and Security Agreement is
terminated by a written instrument executed by a duly authorized officer of the
Lender or until all Obligations have been paid or fulfilled and the obligation
of the Lender to make Loans under the Promissory Note has terminated. The power
of attorney under this Section 9 shall not be affected by subsequent disability
or incapacity of Pledgor. The Lender shall not be liable for any act or omission
to act pursuant to this Section 9, except for any act or omission to act which
constitutes gross negligence or willful misconduct.

10. Rights and Remedies. The rights, remedies, powers, privileges and
discretions of the Lender hereunder (hereinafter, the "Rights and Remedies")
shall be cumulative and not exclusive of any rights, remedies, powers,
privileges or discretions which it may otherwise have. No delay or omission by
the Lender in exercising or enforcing any of the Rights and Remedies shall
operate as, or constitute, a waiver thereof. No waiver by the Lender of any
default or any Event of Default or of any default under any other Loan Document
shall operate as a waiver of any other default or Event of Default or of any
other default under any Loan Document. No exercise of any Rights and Remedies
shall preclude any other exercise of the Rights and Remedies. No waiver by the
Lender of any of the Rights and Remedies on any one occasion shall be deemed a
waiver on any subsequent occasion nor shall it be deemed a continuing waiver.
All Rights and Remedies and all of the Lender's rights, remedies, powers,
privileges and discretions under any other agreement or transaction in respect
of the Collateral are cumulative and not alternative or exclusive and may be
exercised by the Lender at such time or times in such order of preference as the
Lender in its sole and absolute discretion may determine.

11. Pledgor's Consent and Waiver. Pledgor hereby agrees that the Lender may
enforce its rights as against Pledgor or the Collateral, or as against any other
party liable for the Obligations, or as against any other collateral given for
any of the Obligations, in any order or in such combination as the Lender may in
its sole discretion determine, and Pledgor hereby expressly waives all
suretyship defenses and defenses in the nature thereof, agrees to the release or
substitution of any Collateral hereunder or otherwise, and consents to each and
all of the terms, provisions and conditions of the other Loan Documents. Pledgor
further: (a) waives presentment, demand, notice and protest with respect to the
Obligations and the Collateral; (b) waives any delay on the part of the Lender;
(c) assents to any indulgence or waiver which the Lender may grant or give any
other person liable or obliged to the Lender for or on account of the
Obligations; (d) authorizes the Lender to alter, amend, cancel, waive or modify
any term or condition of the obligations of any other person liable or obligated
to the Lender for or on account of the Obligations without notice to or further
consent from Pledgor; (e) agrees that no release of any property securing the
Obligations shall affect the rights of the Lender with respect to the Collateral
hereunder which is not so released; and (f) to the fullest extent that is
permitted by applicable law, waives the right to notice and/or hearing, it might
otherwise be entitled thereto, prior to the Lender's exercising the Rights and
Remedies upon an Event of Default.

                                      -8-

12. Lender May Assign. Pledgor agrees that upon any sale or transfer by the
Lender of the Loan Documents and the indebtedness evidenced thereby that is
permitted under the Promissory Note, the Lender may deliver the Collateral
disposed of as part of such a sale or transfer to the purchaser or transferee,
who shall thereupon become vested with all powers and rights given to the Lender
in respect thereto, and the Lender shall be thereafter forever relieved and
fully discharged from any liability or responsibility in connection therewith.

13. Limits on Lender's Duties. The Lender shall not have any duty as to the
collection or protection of the Collateral, or any portion thereof, or any
income or distribution thereon, beyond the safe custody of such Collateral as
may come into the actual possession of the Lender and the accounting for monies
actually received by the Lender hereunder, and the Lender shall not have any
duty as to the preservation of rights against prior parties or any other rights
pertaining thereto. The Lender shall be deemed to have exercised reasonable care
in the custody and preservation of any Collateral in its possession of such
Collateral is accorded treatment equal to that which is accords its own
property. Nothing in this Agreement shall be construed as an undertaking by the
Lender of any of the liabilities or obligations of Pledgor as pledgor or any
other shareholder, member or partner of any of the investment entities listed on
Exhibit A, including but not limited to, the obligation to make contributions to
capital or the obligation to make any other payment to, for or on behalf of
Pledgor. The Lender's rights and obligations in respect of the Pledged Interests
are those only of a secured party under Massachusetts law.

14. Release; Termination.

          Upon the indefeasible payment in full of all Obligations and the
termination or expiration of the any obligation of the Lender to make loans
under the Promissory Note, the security interest granted hereby shall terminate
and all rights to the Collateral shall revert to Pledgor. Upon any such payment
and termination or expiration, the Lender will, at Pledgor's sole expense,
deliver to Pledgor all certificates and instruments, if any, evidencing the
Collateral held by the Lender hereunder, and execute and deliver to Pledgor such
documents as Pledgor shall reasonably request to evidence such termination.

15. Miscellaneous.

     15.1 The Lender's Rights and Remedies may be exercised without resort to or
          regard to any other source of satisfaction of the Obligations.

     15.2 All of the agreements, obligations, undertakings, representations and
          warranties herein made by Pledgor shall inure to the benefit of the
          Lender and their respective successors and assigns and shall bind
          Pledgor and its successors and assigns.

     15.3 This Agreement and all other instruments executed in connection
          herewith constitute the entire agreement between Pledgor and the
          Lender pertaining to the subject matter hereof, and supersede all
          prior agreements, understandings, negotiations and discussions,
          whether oral or written, of such parties pertaining to the subject
          matter hereof.

                                      -9-

     15.4  No modification, amendment or waiver of any provisions of this
           Agreement shall be effective unless executed in writing by the party
           to be charged with such modification, amendment and waiver and, if
           such party be the Lender, then by a duly authorized officer thereof.

     15.5  This Agreement and all other documents in the Lender's possession
           which relate to the Obligations may be reproduced by the Lender by
           any photographic, photostatic microfilm, microcard, miniature
           photographic, xerographic or similar process and, with the exception
           of instruments constituting the Collateral, the Lender may destroy
           the original from which any document was so reproduced. Any such
           reproduction shall be admissible in evidence as the original itself
           in any judicial or administrative proceeding (whether or not the
           original is in existence and whether or not such reproduction was
           made in the regular course of business) and any enlargement,
           facsimile or further reproduction shall be likewise admissible in
           evidence.

     15.6  Captions in this Agreement are intended solely for convenience and
           shall not be deemed to affect the meaning or construction of any
           provision hereof.

     15.7  Each provision hereof shall be enforceable to the fullest extent
           permitted by applicable law. The invalidity and unenforceability of
           any provision(s) hereof shall not impair or affect any other
           provision(s) hereof which are valid and enforceable.

     15.8  This Agreement may be executed in several counterparts, each of which
           when executed and delivered is an original, but all of which together
           shall constitute one instrument. In making proof of this Agreement,
           it shall not be necessary to produce or account for more than one
           such counterpart which is executed by the party against whom
           enforcement of such agreement is sought.

     15.9  Any demand, notice or request by either party to the other shall be
           given in the manner provided therefor in the Promissory Note.

     15.10 In the event of any conflict between the provisions of this Agreement
           and the Promissory Note, the Promissory Note shall govern.

     15.11 This Agreement shall in all respects be governed, construed, applied
           and enforced in accordance with the laws of the Commonwealth of
           Massachusetts without regard to principles of conflicts of law.

16. WAIVER OF JURY TRIAL. PLEDGOR AND THE LENDER MUTUALLY HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENTS CONTEMPLATED TO BE EXECUTED IN
CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS
(WHETHER

                                      -10-

VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS WAIVER CONSTITUTES A MATERIAL
INDUCEMENT FOR THE LENDER TO ACCEPT THIS AGREEMENT AND MAKE THE FACILITY.

                           [Signature pages attached]

                                      -11-

     This Pledge and Security Agreement has been executed and delivered as an
instrument under seal as of the 27th day of August, 2007.

                                        PLEDGOR:

                                        ANTHRACITE CAPITAL, INC.,
                                        a Maryland corporation

                                        By: /s/ Richard M. Shea
                                            ------------------------------------
                                            Richard M. Shea
                                            President

                                      -12-

                                        LENDER:

                                        KEYBANK NATIONAL ASSOCIATION

                                        By: /s/ Michael M Pomposelli
                                            ------------------------------------
                                            Name: Michael M Pomposelli
                                            Title: Vice President

 [Lender's Signature Page to Ownership Interests Pledge and Security Agreement]

                                      -13-

                                    EXHIBIT A

  Investment Entity           Investment                Pledged Interest
------------------------------------------------------------------------------
BlackRock Diamond      658.9262 Shares of Class C   658.9262 Shares of Class C
Property Fund, Inc.,   Common Stock of BlackRock    Common Stock of BlackRock
a Maryland
corporation
("BlackRock")

BlackRock              All rights of Pledgor with   All rights of Pledgor with
                       respect to redemption of     respect to redemption of
                       658.9262 Shares of Class C   658.9262 Shares of Class C
                       Common Stock of BlackRock    Common Stock of BlackRock

                                       -1-

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