Document:

MORTGAGE AND SECURITY
              AGREEMENT	UNITED STATES OF
              AMERICA
	 	 
	 	STATE OF
              LOUISIANA
	 	 
	 	COUNTY/PARISH OF ST.
              CHARLES

    

     

     

    
      	BY:	LVP GULF COAST INDUSTRIAL PORTFOLIO
              LLC
	 	 
	
              IN
                FAVOR OF:

            	
              WACHOVIA
                BANK, NATIONAL ASSOCIATION

            

    

     

    BE
      IT KNOWN,
      that on
      the 31st day of January, 2007, to be effective on February 1, 2007, before
      me,
      the undersigned Notary Public, duly commissioned and qualified in and for the
      State Parish aforesaid, of LVP Gulf Coast Industrial Portfolio LLC, and in
      the
      presence of the undersigned competent witnesses, personally came and
      appeared:

    

    LVP
      GULF COAST INDUSTRIAL PORTFOLIO LLC,
      a
      Delaware limited liability company, having a mailing address c/o
      The Lightstone Group, 326 Third Street, Lakewood, New Jersey 08701,
      last
      four digits of taxpayer identification numbers of 5292, appearing herein through
      Michael Schurer, its Vice President and duly authorized representative pursuant
      to a resolution of its members and managers, a certified copy of which is
      attached hereto (the “Mortgagor”).

    

    WHO
      AFTER BEING DULY SWORN DECLARED AS FOLLOWS:

     

     

    Sealy
      Fixed Portfolio C

    Loan
      No.
      50-2859389

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      Lender has authorized a loan (hereinafter referred to as the “Loan”)
      to the
      Delaware limited liability companies listed on Schedule 1 annexed hereto
      (hereinafter collectively, "Borrower")
      in the
      maximum principal sum of FIFTY THREE MILLION TWENTY FIVE THOUSAND AND NO/100
      DOLLARS (53,025,000.00) (hereinafter referred to as the “Loan
      Amount”),
      which
      Loan is evidenced by that certain promissory note, dated the date hereof
      (together with any supplements, amendments, modifications or extensions thereof,
      hereinafter referred to as the “Note”)
      given
      by Borrower, as maker, to Lender, as payee;

     

    WHEREAS,
      in consideration of the Loan, Mortgagor has agreed to make payments in amounts
      sufficient to pay and redeem, and provide for the payment and redemption of
      the
      principal of, premium, if any, and interest on the Note when due;

     

    WHEREAS,
      Mortgagor desires by this Mortgage and Security Agreement (this "Security
      Instrument") to provide for, among other things, the issuance of the Note and
      for the mortgage by Mortgagor with, and the creation of a security interest
      in
      favor of, Lender, as security for Mortgagor’s obligations to Lender from time to
      time pursuant to the Note and the other Loan Documents, but specifically
      excluding the Indemnity and Guaranty (as hereinafter defined); and

     

    WHEREAS,
      Mortgagor and Lender intend these recitals to be a material part of this
      Security Instrument.

     

    WHEREAS,
      all things necessary to make this Security Instrument the valid and legally
      binding obligation of Mortgagor in accordance with its terms, for the uses
      and
      purposes herein set forth, have been done and performed. 

     

    NOW
      THEREFORE, to secure the payment of the principal of, prepayment premium (if
      any) and interest on the Note and all other obligations, liabilities or sums
      due
      or to become due under, or advanced in accordance herewith to protect the
      security of, this Security Instrument, the Note or any other Loan Document,
      including, without limitation, interest on said obligations, liabilities or
      sums
      (said principal, premium, interest and other sums being hereinafter referred
      to
      as the “Debt”),
      and
      the performance of all other covenants, obligations and liabilities of Borrower
      pursuant to the Loan Documents but specifically excluding the Indemnity and
      Guaranty, and any and all other indebtedness now owing or which may hereafter
      be
      owing by Borrower to Lender, now existing or hereafter coming into existence,
      however and whenever incurred or evidenced, whether express or implied, direct
      or indirect, absolute or contingent, or due or to become due, and all renewals,
      modifications, consolidations, replacements and extensions thereof (together
      with the Debt, collectively, the “Secured
      Indebtedness”
or
      “secured
      indebtedness”)
      FOR
      THE PURPOSE OF SECURING THE SECURED INDEBTEDNESS OUTSANDING AT ANY TIME AND
      FROM
      TIME TO TIME UP TO THE MAXIMUM AMOUNT OF FIFTY THREE MILLION TWNETY FIVE
      THOUSAND AND NO/100 ($53,025,000.00) (THE “MAXIMUM AMOUNT”), Mortgagor has
      executed and delivered this Security Instrument; and Mortgagor hereby
      irrevocably mortgages, affects and hypothecates, pledges, collaterally assigns
      and grants a continuing security interest upon, unto and in favor of Lender
      and
      its successors and assigns all right, title and interest of Mortgagor in and
      to
      all of the following property, rights, interests and estates, whether now owned
      or hereafter acquired, together with the rights, privileges and appurtenances
      thereto belonging, to the full extent that such property is susceptible of
      mortgage under the Louisiana Civil Code, Louisiana Revised Statutes, and other
      provisions of Louisiana law, grants a continuing security interest in favor
      of
      Lender and its successors and assigns, as secured party, in all property and
      rights described below as part of the Property (as defined below), whether
      now
      owned or hereafter acquired, that are susceptible of a security interest under
      Chapter 9 of the Louisiana Commercial Laws, La. R.S. § 10:9-101 et seq. or any
      other provision of Louisiana law, and does further affect, hypothecate,
      collaterally assign, and pledge unto and in favor of Lender and its successors
      and assigns, as collateral assignee, all the present and future rents, as well
      as all other property and rights described below as part of the Property (as
      defined below), whether now owned or hereafter acquired, that are susceptible
      of
      collateral assignment under La. R.S. § 9:4401, § 9:5386, or any other provision
      of Louisiana law (collectively, the “Property”):

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    (a) the
      plot(s), piece(s) or parcel(s) of real property described in Exhibits
      A -1 through Exhibit A-10 attached
      hereto and made a part hereof (individually and collectively, hereinafter
      referred to as the “Premises”);

     

    (b) (i)
      all
      buildings, component parts, foundations, structures, fixtures, additions,
      enlargements, extensions, modifications, repairs, replacements and improvements
      of every kind or nature now or hereafter located on the Premises (hereinafter
      collectively referred to as the “Improvements”);
      and
      (ii) to the extent permitted by law, the name or names, if any, as may now
      or hereafter be used for each Improvement, and the goodwill associated
      therewith;

     

    (c) all
      easements, servitudes, rights-of-way, strips and gores of land, streets, ways,
      alleys, passages, sewer rights, water, water courses, water rights and powers,
      ditches, ditch rights, reservoirs and reservoir rights, air rights and
      development rights, lateral support, drainage, gas, oil and mineral rights,
      tenements, hereditaments and appurtenances of any nature whatsoever, in any
      way
      belonging, relating or pertaining to the Premises or the Improvements and the
      reversion and reversions, remainder and remainders, whether existing or
      hereafter acquired, and all land lying in the bed of any street, road or avenue,
      opened or proposed, in front of or adjoining the Premises to the center line
      thereof and any and all sidewalks, drives, curbs, passageways, streets, spaces
      and alleys adjacent to or used in connection with the Premises and/or
      Improvements and all the estates, rights, titles, interests, property,
      possession, claim and demand whatsoever, both in law and in equity, of Mortgagor
      of, in and to the Premises and Improvements and every part and parcel thereof,
      with the appurtenances thereto;

     

    (d) all
      machinery, equipment, fittings, apparatus, appliances, furniture, furnishings,
      tools, fixtures (including, but not limited to, all heating, air conditioning,
      ventilating, waste disposal, sprinkler and fire and theft protection equipment,
      plumbing, lighting, communications and elevator fixtures) and other property
      of
      every kind and nature whatsoever owned by Mortgagor, or in which Mortgagor
      has
      or shall have an interest, now or hereafter located upon, or in, and located
      on
      the Premises or the Improvements, or appurtenant thereto, and all building
      equipment, materials and supplies of any nature whatsoever owned by Mortgagor,
      or in which Mortgagor has or shall have an interest, now or hereafter located
      upon, or in the Premises or the Improvements or appurtenant thereto
      (hereinafter, all of the foregoing items described in this paragraph (d), along
      with all replacement and additional items installed as contemplated in Section
      8.01(e), are collectively called the “Equipment”),
      all
      of which, and any replacements, modifications, alterations and additions
      thereto, to the extent permitted by applicable law, shall be deemed to
      constitute fixtures (herein, collectively, the “Fixtures”),
      and
      are part of the real estate and security for the payment of the Debt and the
      performance of Mortgagor’s obligations. To the extent any portion of the
      Equipment is not real property or Fixtures under applicable law, it shall be
      deemed to be personal property, and this Security Instrument shall constitute
      a
      security agreement creating a security interest therein in favor of Lender
      under
      the UCC;

     

    
      
        
        

      

      
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    (e) all
      awards or payments, including interest thereon, which may hereafter be made
      with
      respect to the Premises, the Improvements, the Fixtures, or the Equipment,
      whether from the exercise of the right of eminent domain (including but not
      limited to any transfer made in lieu of or in anticipation of the exercise
      of
      said right), or for a change of grade, or for any other injury to or decrease
      in
      the value of the Premises, the Improvements or the Equipment or refunds with
      respect to the payment of property taxes and assessments, and all other proceeds
      of the conversion, voluntary or involuntary, of the Premises, Improvements,
      Equipment, Fixtures or any other Property or part thereof into cash or
      liquidated claims;

     

    (f) all
      leases, tenancies, licenses and other agreements affecting the use, enjoyment
      or
      occupancy of the Premises, the Improvements, the Fixtures, or the Equipment
      or
      any portion thereof now or hereafter entered into, whether before or after
      the
      filing by or against Mortgagor of any petition for relief under the Bankruptcy
      Code and all reciprocal easement agreements and license agreements (hereinafter
      collectively referred to as the “Leases”),
      together with all cash or security deposits, lease termination payments, advance
      rentals and payments of similar nature and guarantees or other security held
      by,
      or issued in favor of, Mortgagor in connection therewith to the extent of
      Mortgagor’s right or interest therein and all remainders, reversions and other
      rights and estates appurtenant thereto, and all base, fixed, percentage or
      additional rents, and other rents, oil and gas or other mineral royalties,
      and
      bonuses, issues, profits and rebates and refunds or other payments made by
      any
      Governmental Authority from or relating to the Premises, the Improvements,
      the
      Fixtures or the Equipment plus all rents, common area charges and other payments
      now existing or hereafter arising, whether paid or accruing before or after
      the
      filing by or against Mortgagor of any petition for relief under the Bankruptcy
      Code (herein, collectively, the “Rents”)
      and
      all proceeds from the sale or other disposition of the Leases and the right
      to
      receive and apply the Rents to the payment of the Debt;

     

    (g) all
      proceeds of and any unearned premiums on any insurance policies covering the
      Premises, the Improvements, the Fixtures, the Rents or the Equipment, including,
      without limitation, the right to receive and apply the proceeds of any
      insurance, judgments, or settlements made in lieu thereof, for damage to the
      Premises, the Improvements, the Fixtures or the Equipment and all refunds or
      rebates of Impositions, and interest paid or payable with respect
      thereto;

     

    
      
        
        

      

      
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    (h) all
      deposit accounts, securities accounts, funds or other accounts maintained or
      deposited with Lender, or its assigns, in connection herewith, including,
      without limitation, the Security Deposit Account (to the extent permitted by
      law), the Engineering Escrow Account, the Central Account, the Basic Carrying
      Costs Sub-Account, the Basic Carrying Costs Escrow Account, the Debt Service
      Payment Sub-Account, the Recurring Replacement Reserve Sub-Account, the
      Recurring Replacement Reserve Escrow Account, the Reletting Reserve Sub-Account,
      the Reletting Reserve Escrow Account, the Operation and Maintenance Expense
      Sub-Account, the Operation and Maintenance Expense Escrow Account, the
      Curtailment Reserve Escrow Account, the Curtailment Reserve Sub-Account, and
      all
      monies and investments deposited or to be deposited in such
      accounts;

     

    (i) all
      accounts receivable, contract rights, franchises, interests, estate or other
      claims, both at law and in equity, now existing or hereafter arising, and
      relating to the Premises, the Improvements, the Fixtures or the Equipment,
      not
      included in Rents;

     

    (j) all
      now
      existing or hereafter arising claims against any Person with respect to any
      damage to the Premises, the Improvements, the Fixtures or the Equipment,
      including, without limitation, damage arising from any defect in or with respect
      to the design or construction of the Improvements, the Fixtures or the Equipment
      and any damage resulting therefrom;

     

    (k) all
      deposits or other security or advance payments, including rental payments now
      or
      hereafter made by or on behalf of Mortgagor to others, with respect to (i)
      insurance policies, (ii) utility services, (iii) cleaning, maintenance, repair
      or similar services, (iv) refuse removal or sewer service, (v) parking or
      similar services or rights and (vi) rental of Equipment, if any, relating to
      or
      otherwise used in the operation of the Premises, the Improvements, the Fixtures
      or the Equipment;

     

    (l) all
      intangible property now or hereafter relating to the Premises, the Improvements,
      the Fixtures or the Equipment or its operation, including, without limitation,
      software, letter of credit rights, trade names, trademarks (including, without
      limitation, any licenses of or agreements to license trade names or trademarks
      now or hereafter entered into by Mortgagor), logos, building names and
      goodwill;

     

    (m) all
      now
      existing or hereafter arising advertising material, guaranties, warranties,
      building permits, other permits, licenses, plans and specifications, shop and
      working drawings, soil tests, appraisals and other documents, materials and/or
      personal property of any kind now or hereafter existing in or relating to the
      Premises, the Improvements, the Fixtures, and the Equipment;

     

    (n) all
      now
      existing or hereafter arising drawings, designs, plans and specifications
      prepared by architects, engineers, interior designers, landscape designers
      and
      any other consultants or professionals for the design, development,
      construction, repair and/or improvement of the Property, as amended from time
      to
      time;

     

    
      
        
        

      

      
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    (o) the
      right, in the name of and on behalf of Mortgagor, to appear in and defend any
      now existing or hereafter arising action or proceeding brought with respect
      to
      the Premises, the Improvements, the Fixtures or the Equipment as set forth
      herein and to commence any action or proceeding to protect the interest of
      Lender in the Premises, the Improvements, the Fixtures or the Equipment as
      set
      forth herein;

     

    (p) all
      agreements, grants of easements and/or rights-of-way, reciprocal easement
      agreements, permits, declarations of covenants, conditions and restrictions,
      disposition and development agreements, planned unit development agreements,
      management or parking agreements, party wall agreements or other instruments
      affecting the Property and all proceeds or income received with respect thereto;
      and

     

    (q) all
      proceeds, products, substitutions and accessions (including claims and demands
      therefor) of each of the foregoing.

     

    (r) all
      unearned premiums under insurance policies now or subsequently obtained by
      Mortgagor relating to the Premises or Improvements and Mortgagor’s interest in
      and to all such insurance policies and all proceeds of any such insurance
      policies (including title insurance policies) including the right to collect
      and
      receive such proceeds, subject to the provisions relating to insurance generally
      set forth below; and all awards and other compensation, including the interest
      payable thereon and the right to collect and receive the same, made to the
      present or any subsequent owner of the Premises or Improvements for the taking
      by eminent domain, condemnation or otherwise, of all or any part of the Premises
      or any servitude, easement or other right therein; and with respect to the
      proceeds referred to above, this Security Instrument is a collateral assignment
      thereof pursuant to Louisiana Revised Statutes 9:5386, et seq., whether such
      proceeds or any of them now exist or arise in the future, and the Mortgagor
      does
      hereby irrevocably make, constitute and appoint the Lender and the agents of
      the
      Lender as the true and lawful mandataries and attorneys-in-fact of Mortgagor
      to
      carry out and enforce all of the Mortgagor's right, title and interest in and
      to
      any or all of the proceeds hereby collaterally assigned. The collateral
      assignment herein made of the proceeds shall not be construed as imposing upon
      the Lender any obligations with respect thereto unless and until the Lender
      shall become the absolute owner thereof and the Mortgagor shall have been wholly
      dispossessed thereof.

     

     

    All
      of
      the foregoing items (a) through (q), together with all of the right, title
      and
      interest of Mortgagor therein, are collectively referred to as the “Property”.

     

    AND
      Mortgagor covenants with and warrants to Lender that:

     

    ARTICLE
      I:   DEFINITIONS

     

    Section
      1.01.   Certain
      Definitions. 

     

    For
      all
      purposes of this Security Instrument, except as otherwise expressly provided
      or
      unless the context clearly indicates a contrary intent:

     

    
      
        
        

      

      
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    (i) the
      capitalized terms defined in this Section have the meanings assigned to them
      in
      this Section, and include the plural as well as the singular;

     

    (ii) all
      accounting terms not otherwise defined herein have the meanings assigned to
      them
      in accordance with GAAP; and

     

    (iii) the
      words
“herein”, “hereof”, and “hereunder” and other words of similar import refer to
      this Security Instrument as a whole and not to any particular Section or other
      subdivision.

     

    “Adjusted
      Net Cash Flow”
shall
      mean on any determination date, the Pro-Forma Net Operating Income less (a)
      the
      Recurring Replacement Monthly Installment for all of the Cross-collateralized
      Properties multiplied by twelve (12), (b) the Reletting Reserve Monthly
      Installment for all of the Cross-collateralized Properties multiplied by twelve
      (12), and (c) Net Capital Expenditures for all of the Cross-collateralized
      Properties to be incurred (as estimated by Lender, in its reasonable discretion)
      for the subsequent twelve (12) month period. The Adjusted Net Cash Flow shall
      be
      calculated by Lender in accordance with the terms of this Security
      Instrument.

     

    “Affiliate”
of
      any
      specified Person shall mean any other Person directly or indirectly Controlling
      or Controlled by or under direct or indirect common Control with such specified
      Person.

     

    “Allocated
      Loan Amount”
shall
      mean the portion of the Loan Amount allocated to each Individual Property as
      set
      forth on Exhibit F annexed hereto and made a part hereof.

     

    “Annual
      Budget”
shall
      mean an annual budget submitted by Mortgagor to Lender in accordance with the
      terms of Section 2.09 hereof.

     

    “Appraisal”
shall
      mean the appraisal of the Property and all supplemental reports or updates
      thereto previously delivered to Lender in connection with the Loan.

     

    “Appraiser”
shall
      mean the Person who prepared the Appraisal.

     

    “Approved
      Annual Budget”
shall
      mean each Annual Budget approved by Lender in accordance with terms
      hereof.

     

    “Approved
      Manager Standard”
shall
      mean the standard of business operations, practices and procedures customarily
      employed by entities which possess the Minimum Manager Credentials.

     

    “Architect”
shall
      have the meaning set forth in Section 3.04(b)(i) hereof.

     

    “Assignment”
shall
      mean the Assignment of Leases and Rents and Security Deposits of even date
      herewith relating to the Property given by Mortgagor to Lender.

     

    
      
        
        

      

      
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    “Bank”
shall
      mean the bank, trust company, savings and loan association or savings bank
      designated by Lender, in its sole and absolute discretion, in which the Central
      Account shall be located.

     

    “Bankruptcy
      Code”
shall
      mean 11 U.S.C. §101 et seq., as amended from time to time.

     

    “Basic
      Carrying Costs”
shall
      mean the sum of the following costs associated with the Property: (a) Real
      Estate Taxes and (b) insurance premiums.

     

    “Basic
      Carrying Costs Escrow Account”
shall
      mean the Escrow Account maintained pursuant to Section 5.06 hereof.

     

    “Basic
      Carrying Costs Monthly Installment”
shall
      mean Lender’s reasonable estimate of one-twelfth (1/12th) of the annual amount
      for Basic Carrying Costs. “Basic Carrying Costs Monthly Installment” shall also
      include, if required by Lender, a sum of money which, together with such monthly
      installments, will be sufficient to make the payment of each such Basic Carrying
      Cost at least thirty (30) days prior to the date initially due. Should such
      Basic Carrying Costs not be ascertainable at the time any monthly deposit is
      required to be made, the Basic Carrying Costs Monthly Installment shall be
      determined by Lender in its reasonable discretion on the basis of the aggregate
      Basic Carrying Costs for the prior Fiscal Year or month or the prior payment
      period for such cost. As soon as the Basic Carrying Costs are fixed for the
      then
      current Fiscal Year, month or period, the next ensuing Basic Carrying Costs
      Monthly Installment shall be adjusted to reflect any deficiency or surplus
      in
      prior monthly payments. If at any time during the term of the Loan Lender
      determines that there will be insufficient funds in the Basic Carrying Costs
      Escrow Account to make payments when they become due and payable, Lender shall
      have the right to adjust the Basic Carrying Costs Monthly Installment such
      that
      there will be sufficient funds to make such payments.

     

    “Basic
      Carrying Costs Sub-Account”
shall
      mean the Sub-Account of the Central Account established pursuant to Section
      5.02
      into which the Basic Carrying Costs Monthly Installments shall be
      deposited.

     

    “Business
      Day”
shall
      mean any day other than (a) a Saturday or Sunday, or (b) a day on which banking
      and savings and loan institutions in the State of New York or the State of
      North
      Carolina are authorized or obligated by law or executive order to be closed,
      or
      at any time during which the Loan is an asset of a Securitization, the cities,
      states and/or commonwealths used in the comparable definition of “Business Day”
in the Securitization documents.

     

    “Capital
      Expenditures”
shall
      mean for any period, the amount expended for items capitalized under GAAP
      including expenditures for building improvements or major repairs, leasing
      commissions and tenant improvements.

     

    “Cash
      Expenses”
shall
      mean for any period, the operating expenses for the Property as set forth in
      an
      Approved Annual Budget to the extent that such expenses are actually incurred
      by
      Mortgagor minus payments into the Basic Carrying Costs Sub-Account, the Debt
      Service Payment Sub-Account, the Reletting Reserve Sub-Account and the Recurring
      Replacement Reserve Sub-Account.

     

    
      
        
        

      

      
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    “Central
      Account”
shall
      mean an Eligible Account, maintained at the Bank, in the name of Lender or
      its
      successors or assigns (as secured party) as may be designated by
      Lender.

     

    “Closing
      Date”
      shall mean the date of the Note.

     

    “Code”
shall
      mean the Internal Revenue Code of 1986, as amended and as it may be further
      amended from time to time, any successor statutes thereto, and applicable U.S.
      Department of Treasury regulations issued pursuant thereto.

     

    “Condemnation
      Proceeds”
shall
      mean all of the proceeds in respect of any Taking or purchase in lieu
      thereof.

     

    “Contractual
      Obligation”
shall
      mean, as to any Person, any provision of any security issued by such Person
      or
      of any agreement, instrument or undertaking to which such Person is a party
      or
      by which it or any of the property owned by it is bound.

     

    “Control”
means,
      when used with respect to any specific Person, the possession, directly or
      indirectly, of the power to direct or cause the direction of the management
      and
      policies of such Person whether through ownership of voting securities,
      beneficial interests, by contract or otherwise. The definition is to be
      construed to apply equally to variations of the word “Control” including
“Controlled,” “Controlling” or “Controlled by.” 

     

    “CPI”
shall
      mean “The Consumer Price Index (New Series) (Base Period 1982-84=100) (all items
      for all urban consumers)” issued by the Bureau of Labor Statistics of the United
      States Department of Labor (the “Bureau”).
      If
      the CPI ceases to use the 1982-84 average equaling 100 as the basis of
      calculation, or if a change is made in the term, components or number of items
      contained in said index, or if the index is altered, modified, converted or
      revised in any other way, then the index shall be adjusted to the figure that
      would have been arrived at had the change in the manner of computing the index
      in effect at the date of this Security Instrument not been altered. If at any
      time during the term of this Security Instrument the CPI shall no longer be
      published by the Bureau, then any comparable index issued by the Bureau or
      similar agency of the United States issuing similar indices shall be used in
      lieu of the CPI.

     

    “Cross-collateralized
      Mortgage”
shall
      mean that certain mortgage, security agreement, assignment of rents and fixture
      filing as originally executed or as same may hereafter from time to time be
      supplemented, amended, modified, extended granted by the Texas Borrowers to
      Lender as security for the Note.

     

    “Cross-collateralized
      Property”
shall
      mean each parcel or parcels of real property as identified on Exhibit G-1 to
      G-14 attached hereto and made a part hereof encumbered by this Mortgage and
      the
      Cross-collateralized Mortgage; provided, however, at such time, if any, that
      a
      Cross-collateralized Property is released by Lender, the property which was
      encumbered by either this Security Instrument or the Cross-collateralized
      Mortgage shall no longer constitute a Cross-collateralized
      Property.

     

    “Current
      Month”
shall
      mean the period from the eleventh (11th)
      day of
      each month through and including the tenth (10th)
      day of
      the following month.

     

    
      
        
        

      

      
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    "Curtailment
      Reserve Escrow Account"
      shall
      mean the Escrow Account maintained pursuant to Section 5.11 hereof into which
      sums shall be deposited during an O&M Operative Period.

     

    "Curtailment
      Reserve Sub-Account"
      shall
      mean the Sub-Account of the Central Account established pursuant to Section
      5.02
      hereof.

     

    “Debt”
shall
      mean the principal of, prepayment premium (if any) and interest on the Note
      and
      all other obligations, liabilities or sums due or to become due under, or
      advanced in accordance herewith to protect the security of, the Security
      Instrument, the Note or any other Loan Document, including, without limitation,
      interest on said obligations, liabilities or sums.

     

    “Debt
      Service Coverage”
shall
      mean the quotient obtained by dividing Adjusted Net Cash Flow for all of the
      Cross-collateralized Properties for the specified period by the sum of the
      aggregate payments of interest and principal due for such specified period
      under
      the Note (determined as of the date the calculation of Debt Service Coverage
      is
      required or requested hereunder) based upon an assumed Debt Service due and
      payable on the Loan as calculated on a 7.1% debt service constant. 

     

    “Debt
      Service Payment Sub-Account”
shall
      mean the Sub-Account of the Central Account established pursuant to Section
      5.02
      hereof into which the Required Debt Service Payment shall be
      deposited.

     

    “Default”
shall
      mean any Event of Default or event which would constitute an Event of Default
      if
      all requirements in connection therewith for the giving of notice, the lapse
      of
      time, and the happening of any further condition, event or act, had been
      satisfied.

     

    “Default
      Rate”
shall
      mean the lesser of (a) the highest rate allowable at law and (b) four percent
      (4%) above the interest rate set forth in the Note.

     

    “Default
      Rate Interest”
shall
      mean, to the extent the Default Rate becomes applicable, interest in excess
      of
      the interest which would have accrued on (a) the Principal Amount and (b) any
      accrued but unpaid interest, if the Default Rate was not
      applicable.

     

    “Development
      Laws”
shall
      mean all applicable subdivision, zoning, environmental protection, wetlands
      protection, or land use laws or ordinances, and any and all applicable rules
      and
      regulations of any Governmental Authority promulgated thereunder or related
      thereto.

     

    “Eligible
      Account”
shall
      mean a segregated account which is either (a) an account or accounts maintained
      with a federal or state chartered depository institution or trust company the
      long term unsecured debt obligations of which are rated by each of the Rating
      Agencies (or, if not rated by Fitch, Inc. (“Fitch”),
      otherwise acceptable to Fitch, as confirmed in writing that such account would
      not, in and of itself, result in a downgrade, qualification or withdrawal of
      the
      then current ratings assigned to any certificates issued in connection with
      a
      Securitization) in its second highest rating category at all times (or, in
      the
      case of the Basic Carrying Costs Escrow Account, the long term unsecured debt
      obligations of which are rated at least “AA” (or its equivalent)) by each of the
      Rating Agencies (or, if not rated by Fitch, otherwise acceptable to Fitch,
      as
      confirmed in writing that such account would not, in and of itself, result
      in a
      downgrade, qualification or withdrawal of the then current ratings assigned
      to
      any certificates issued in connection with a Securitization) or, if the funds
      in
      such account are to be held in such account for less than thirty (30) days,
      the
      short term obligations of which are rated by each of the Rating Agencies (or,
      if
      not rated by Fitch, otherwise acceptable to Fitch, as confirmed in writing
      that
      such account would not, in and of itself, result in a downgrade, qualification
      or withdrawal of the then current ratings assigned to any certificates issued
      in
      connection with a Securitization) in its second highest rating category at
      all
      times or (b) a segregated trust account or accounts maintained with a federal
      or
      state chartered depository institution or trust company acting in its fiduciary
      capacity which, in the case of a state chartered depository institution is
      subject to regulations substantially similar to 12 C.F.R. § 9.10(b), having in
      either case a combined capital and surplus of at least $100,000,000 and subject
      to supervision or examination by federal and state authority, or otherwise
      acceptable (as evidenced by a written confirmation from each Rating Agency
      that
      such account would not, in and of itself, cause a downgrade, qualification
      or
      withdrawal of the then current ratings assigned to any certificates issued
      in
      connection with a Securitization) to each Rating Agency, which may be an account
      maintained by Lender or its agents. Eligible Accounts may bear interest. The
      title of each Eligible Account shall indicate that the funds held therein are
      held in trust for the uses and purposes set forth herein.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    “Engineer”
shall
      have the meaning set forth in Section 3.04(b)(i) hereof.

     

    “Engineering
      Escrow Account”
shall
      mean an Escrow Account established and maintained pursuant to Section 5.12
      hereof relating to payments for any Required Engineering Work. 

     

    “Engineering
      Report”
shall
      mean the engineering report for the Property and any supplements or updates
      thereto, previously delivered to Lender in connection with the
      Loan.

     

    “Environmental
      Problem”
shall
      mean any of the following:

     

    (a) the
      presence of any Hazardous Material on, in, under, or above all or any portion
      of
      the Property;

     

    (b) the
      release or threatened release of any Hazardous Material from or onto the
      Property;

     

    (c) the
      violation or threatened violation of any Environmental Statute with respect
      to
      the Property; or

     

    (d) the
      failure to obtain or to abide by the terms or conditions of any permit or
      approval required under any Environmental Statute with respect to the
      Property.

     

    A
      condition described above shall be an Environmental Problem regardless of
      whether or not any Governmental Authority has taken any action in connection
      with the condition and regardless of whether that condition was in existence
      on
      or before the date hereof.

     

    “Environmental
      Report”
shall
      mean the environmental audit report for the Property and any supplements or
      updates thereto, previously delivered to Lender in connection with the
      Loan.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    “Environmental
      Statute”
shall
      mean any federal, state or local statute, ordinance, rule or regulation, any
      judicial or administrative order (whether or not on consent) or judgment
      applicable to Mortgagor or the Property including, without limitation, any
      judgment or settlement based on common law theories, and any provisions or
      condition of any permit, license or other authorization binding on Mortgagor
      relating to (a) the protection of the environment or the health of persons
      (including employees) from actual or potential exposure (or effects of exposure)
      to any actual or potential release, discharge, disposal or emission (whether
      past or present) of any Hazardous Materials or (b) the manufacture, processing,
      distribution, use, treatment, storage, disposal, transport or handling of any
      Hazardous Materials, including, but not limited to, the Comprehensive
      Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”),
      as
      amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C.
      §9601 et seq.,
      the
      Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery
      Act of 1976, as amended by the Solid and Hazardous Waste Amendments of 1984,
      42
      U.S.C. §6901 et seq.,
      the
      Federal Water Pollution Control Act, as amended by the Clean Water Act of 1977,
      33 U.S.C. §1251 et seq.,
      the
      Toxic Substances Control Act of 1976, 15 U.S.C. §2601 et seq.,
      the
      Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §1101
et seq.,
      the
      Clean Air Act of 1966, as amended, 42 U.S.C. §7401 et seq.,
      the
      National Environmental Policy Act of 1975, 42 U.S.C. §4321, the Rivers and
      Harbors Act of 1899, 33 U.S.C. §401 et seq.,
      the
      Endangered Species Act of 1973, as amended, 16 U.S.C. §1531 et seq.,
      the
      Occupational Safety and Health Act of 1970, as amended, 29 U.S.C. §651
et seq.,
      and the
      Safe Drinking Water Act of 1974, as amended, 42 U.S.C. §300(f) et seq.,
      and all
      rules, regulations and guidance documents promulgated or published
      thereunder.

     

    “Equipment”
shall
      have the meaning set forth in granting clause (d) of this Security
      Instrument.

     

    “ERISA”
shall
      mean the Employee Retirement Income Security Act of 1974, as amended from time
      to time, and the regulations promulgated thereunder. Section references to
      ERISA
      are to ERISA, as in effect at the date of this Security Instrument and, as
      of
      the relevant date, any subsequent provisions of ERISA, amendatory thereof,
      supplemental thereto or substituted therefor.

     

    “ERISA
      Affiliate”
shall
      mean any corporation or trade or business that is a member of any group of
      organizations (a) described in Section 414(b) or (c) of the Code of which
      Mortgagor or Guarantor is a member and (b) solely for purposes of potential
      liability under Section 302(c)(11) of ERISA and Section 412(c)(11) of the Code
      and the lien created under Section 302(f) of ERISA and Section 412(n) of the
      Code, described in Section 414(m) or (o) of the Code of which Mortgagor or
      Guarantor is a member.

     

    “Escrow
      Account”
shall
      mean each of the Engineering Escrow Account, the Basic Carrying Costs Escrow
      Account, the Recurring Replacement Reserve Escrow Account, the Reletting Reserve
      Escrow Account, the Operation, Maintenance Expense Escrow Account and the
      Curtailment Reserve Escrow Account, each of which shall be an Eligible Account
      or book entry sub-account of an Eligible Account.

     

    “Event
      of Default”
shall
      have the meaning set forth in Section 13.01 hereof.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    “Extraordinary
      Expense”
shall
      mean an extraordinary operating expense or capital expense not set forth in
      the
      Approved Annual Budget or allotted for in the Recurring Replacement Reserve
      Sub-Account or the Reletting Reserve Sub-Account.

     

    “Fiscal
      Year”
shall
      mean the twelve (12) month period commencing on January 1 and ending on December
      31 during each year of the term of this Security Instrument, or such other
      fiscal year of Mortgagor as Mortgagor may select from time to time with the
      prior written consent of Lender.

     

    “Fixtures”
shall
      have the meaning set forth in granting clause (d) of this Security
      Instrument.

     

    “Force
      Majeure”
shall
      mean strikes, lockouts, labor disputes, acts of God, governmental restrictions,
      regulations or controls, enemy or hostile governmental actions, terrorist acts,
      civil commotion, insurrection, revolution, sabotage or fire or other casualty
      or
      other events beyond the reasonable control of Mortgagor and/or its Affiliates,
      but Mortgagor’s and/or its Affiliates’ lack of funds in and of itself shall not
      be deemed a cause beyond the control of Mortgagor and/or its
      Affiliates.

     

    “GAAP”
shall
      mean generally accepted accounting principles in the United States of America,
      as of the date of the applicable financial report, consistently
      applied.

     

    “General
      Partner”
shall
      mean, if Mortgagor is a partnership, each general partner of Mortgagor and,
      if
      Mortgagor is a limited liability company, each managing member of Mortgagor
      and
      in each case, if applicable, each general partner or member of such general
      partner or managing member. 

     

    “Governmental
      Authority”
shall
      mean, with respect to any Person, any federal or State government or other
      political subdivision thereof and any entity, including any regulatory or
      administrative authority or court, exercising executive, legislative, judicial,
      regulatory or administrative or quasi-administrative functions of or pertaining
      to government, and any arbitration board or tribunal, in each case having
      jurisdiction over such applicable Person or such Person’s property and any stock
      exchange on which shares of capital stock of such Person are listed or admitted
      for trading. 

     

    “Guarantor”
shall
      mean any Person guaranteeing, in whole or in part, the obligations of Mortgagor
      under the Loan Documents.

     

    “Hazardous
      Material”
shall
      mean any flammable, explosive or radioactive materials, hazardous materials
      or
      wastes, hazardous or toxic substances, pollutants, asbestos or any material
      containing asbestos, molds, spores and fungus which may pose a risk to human
      health or the environment or any other substance or material as defined in
      or
      regulated by any Environmental Statutes.

     

    “Impositions”
shall
      mean all taxes (including, without limitation, all real estate, ad valorem,
      sales (including those imposed on lease rentals), use, single business, gross
      receipts, value added, intangible, transaction, privilege or license or similar
      taxes), assessments (including, without limitation, all assessments for public
      improvements or benefits, whether or not commenced or completed prior to the
      date hereof and whether or not commenced or completed within the term of this
      Security Instrument), ground rents, water, sewer or other rents and charges,
      excises, levies, fees (including, without limitation, license, permit,
      inspection, authorization and similar fees), and all other governmental charges,
      in each case whether general or special, ordinary or extraordinary, or foreseen
      or unforeseen, of every character in respect of the Property and/or any Rent
      (including all interest and penalties thereon), which at any time prior to,
      during or in respect of the term hereof may be assessed or imposed on or in
      respect of or be a lien upon (a) Mortgagor (including, without limitation,
      all
      franchise, single business or other taxes imposed on Mortgagor for the privilege
      of doing business in the jurisdiction in which the Property or any other
      collateral delivered or pledged to Lender in connection with the Loan is
      located) or Lender, (b) the Property or any part thereof or any Rents therefrom
      or any estate, right, title or interest therein, or (c) any occupancy,
      operation, use or possession of, or sales from, or activity conducted on, or
      in
      connection with the Property, or any part thereof, or the leasing or use of
      the
      Property, or any part thereof, or the acquisition or financing of the
      acquisition of the Property, or any part thereof, by Mortgagor. 

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    “Improvements”
shall
      have the meaning set forth in granting clause (b) of this Security
      Instrument.

     

    “Indemnified
      Parties”
shall
      have the meaning set forth in Section 12.01 hereof.

     

    “Indemnity
      and Guaranty”
shall
      mean that certain Indemnity and Guaranty executed and delivered by Lightstone
      Value Plus Real Estate Investment Trust, Inc., dated as of the date
      hereof.

     

    “Independent”
shall
      mean, when used with respect to any Person, a Person who (a) is in fact
      independent, (b) does not have any direct financial interest or any material
      indirect financial interest in Mortgagor, or in any Affiliate of Mortgagor
      or
      any constituent partner, shareholder, member or beneficiary of Mortgagor, (c)
      is
      not connected with Mortgagor or any Affiliate of Mortgagor or any constituent
      partner, shareholder, member or beneficiary of Mortgagor as an officer,
      employee, promoter, underwriter, trustee, partner, director or person performing
      similar functions and (d) is not a member of the immediate family of a Person
      defined in (b) or (c) above.

     

    “Individual
      Property”
shall
      mean each parcel or parcels of real property encumbered by this Security
      Instrument as identified on Exhibit F attached hereto and made a part
      hereof.

     

    “Initial
      Engineering Deposit”
shall
      equal the amount set forth on Exhibit B attached hereto and made a part
      hereof.

     

    “Initial
      Reletting Reserve Deposit”
shall
      equal the amount set forth on Exhibit B attached hereto and made a part
      hereof.

     

    “Initial
      Recurring Reserve Deposit”
shall
      equal the amount required to be deposited by Mortgagor into the Recurring
      Replacement Reserve Escrow Account on the Closing Date as set forth on Exhibit
      B.

     

    “Insolvency
      Opinion”
shall
      have the meaning set forth in Section 2.02(g)(xix) hereof.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    “Institutional
      Lender”
shall
      mean any of the following Persons: (a) any bank, savings and loan
      association, savings institution, trust company or national banking association,
      acting for its own account or in a fiduciary capacity, (b) any charitable
      foundation, (c) any insurance company or pension and/or annuity company,
      (d) any fraternal benefit society, (e) any pension, retirement or
      profit sharing trust or fund within the meaning of Title I of ERISA or for
      which any bank, trust company, national banking association or investment
      adviser registered under the Investment Advisers Act of 1940, as amended, is
      acting as trustee or agent, (f) any investment company or business
      development company, as defined in the Investment Company Act of 1940, as
      amended, (g) any small business investment company licensed under the Small
      Business Investment Act of 1958, as amended, (h) any broker or dealer
      registered under the Securities Exchange Act of 1934, as amended, or any
      investment adviser registered under the Investment Adviser Act of 1940, as
      amended, (i) any government, any public employees’ pension or retirement
      system, or any other government agency supervising the investment of public
      funds, or (j) any other entity all of the equity owners of which are
      Institutional Lenders; provided that each of said Persons shall have net assets
      in excess of $1,000,000,000 and a net worth in excess of $500,000,000, be in
      the
      business of making commercial mortgage loans, secured by properties of like
      type, size and value as the Property and have a long term credit rating which
      is
      not less than “BBB-” (or its equivalent) from the Rating Agency.

     

    “Insurance
      Proceeds”
shall
      mean all of the proceeds received under the insurance policies required to
      be
      maintained by Mortgagor pursuant to Article III hereof. 

     

    “Insurance
      Requirements”
shall
      mean all terms of any insurance policy required by this Security Instrument,
      all
      requirements of the issuer of any such policy, and all regulations and then
      current standards applicable to or affecting the Property or any use or
      condition thereof, which may, at any time, be recommended by the Board of Fire
      Underwriters, if any, having jurisdiction over the Property, or such other
      Person exercising similar functions.

     

    “Interest
      Rate”
shall
      have the meaning set forth in the Note.

     

    “Late
      Charge”
shall
      have the meaning set forth in Section 13.09 hereof.

     

    “Leases”
shall
      have the meaning set forth in granting clause (f) of this Security
      Instrument.

     

    “Legal
      Requirement”
shall
      mean as to any Person, the certificate of incorporation, by-laws, certificate
      of
      limited partnership, articles of organization, agreement of limited partnership
      or other organization or governing documents of such Person, and any law,
      statute, order, code, ordinance, judgment, decree, injunction, treaty, rule
      or
      regulation (including, without limitation, Environmental Statutes, Development
      Laws and Use Requirements) or determination of an arbitrator or a court or
      other
      Governmental Authority and all covenants, agreements, restrictions and
      encumbrances contained in any instruments, in each case applicable to or binding
      upon such Person or any of its property or to which such Person or any of its
      property is subject.

     

    “Lender”
shall
      mean the Lender named herein and its successors or assigns.

     

    “Loan”
shall
      have the meaning set forth in the Recitals hereto.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    “Loan
      Amount”
shall
      have the meaning set forth in the Recitals hereto.

     

    “Loan
      Documents”
shall
      mean this Security Instrument, the Note, the Assignment, and any and all other
      agreements, instruments, certificates or documents executed and delivered by
      Mortgagor, Borrower or any Affiliate of Mortgagor in connection with the
      Loan.

     

    “Loan
      Year”
shall
      mean each 365 day period (or 366 day period if the month of February in a leap
      year is included) commencing on the first day of the month following the Closing
      Date (provided, however, that the first Loan Year shall also include the period
      from the Closing Date to the end of the month in which the Closing Date occurs).
      

     

    “Loss
      Proceeds”
shall
      mean, collectively, all Insurance Proceeds and all Condemnation Proceeds.

     

    "Louisiana
      Borrowers"
      shall
      mean the Delaware limited liability companies listed on Schedule 1 annexed
      hereto.

     

    “Major
      Space Lease”
shall
      mean any Space Lease of a tenant or Affiliate of such tenant where such tenant
      or such Affiliate leases, in the aggregate, in excess of ten (10%) percent
      of
      rentable square feet of space at the Property.

     

    “Management
      Agreement”
shall
      have the meaning set forth in Section 7.02 hereof.

     

    “Manager”
shall
      mean Mortgagor and any other Person, other than Mortgagor, which manages the
      Property on behalf of Mortgagor.

     

    “Manager
      Certification”
shall
      have the meaning set forth in Section 2.09 hereof.

     

    “Material
      Adverse Effect”
shall
      mean any event or condition that has a material adverse effect on (a) the
      Property, (b) the business, profits, management, operations or condition
      (financial or otherwise) of Mortgagor, (c) the enforceability, validity,
      perfection or priority of the lien or security interest of any Loan Document
      or
      (d) the ability of Mortgagor to perform any material obligations under any
      Loan
      Document.

     

    “Maturity”,
      when
      used with respect to the Note, shall mean the Maturity Date set forth in the
      Note, as same may be extended in accordance with the Note, or such other date
      pursuant to the Note on which the final payment of principal, and premium,
      if
      any, on the Note becomes due and payable as therein or herein provided, whether
      at Stated Maturity or by declaration of acceleration, or otherwise.

     

    “Maturity
      Date”
shall
      mean the Maturity Date set forth in the Note.

     

    “Minimum
      Manager Credentials”
shall
      mean (i) the employment of a senior executive who has the responsibility for
      oversight of the Property and has at least five (5) years’ experience in the
      management of industrial centers and (ii) the management of not less than five
      (5) industrial center properties (excluding the Cross-collateralized Properties)
      having an aggregate leasable square footage of not less than the lesser of
      (a)
      one million leasable square feet and (b) five (5) times the leasable square
      feet
      of the Property.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    “Multiemployer
      Plan”
shall
      mean a multiemployer plan defined as such in Section 3(37) of ERISA to which
      contributions have been, or were required to have been, made by Mortgagor,
      Guarantor or any ERISA Affiliate and which is covered by Title IV of
      ERISA.

     

    “Net
      Capital Expenditures”
shall
      mean for any period the amount by which Capital Expenditures during such period
      exceeds reimbursements for such items during such period from any fund
      established pursuant to the Loan Documents.

     

    “Net
      Operating Income”
shall
      mean in each Fiscal Year or portion thereof during the term hereof, Operating
      Income less Operating Expenses.

     

    “Net
      Proceeds”
shall
      mean the excess of (a)(i) the purchase price (at foreclosure or otherwise)
      actually received by Lender with respect to the Property as a result of the
      exercise by Lender of its rights, powers, privileges and other remedies after
      the occurrence of an Event of Default, or (ii) in the event that Lender (or
      Lender’s nominee) is the purchaser at foreclosure by credit bid, then the amount
      of such credit bid, in either case, over (b) all costs and expenses, including,
      without limitation, all attorneys’ fees and disbursements and any brokerage
      fees, if applicable, incurred by Lender in connection with the exercise of
      such
      remedies, including the sale of such Property after a foreclosure against the
      Property.

     

    “Note”
shall
      have the meaning set forth in the Recitals hereto.

     

    "O&M
      Operative Period"
      shall
      mean the period of time commencing upon the determination by Lender that the
      Debt Service Coverage (tested quarterly except during the continuance of an
      O&M Operative Period, in which event Debt Service Coverage shall be tested
      monthly and shall be calculated based upon information contained in the reports
      furnished to Lender pursuant to Section 2.09 hereof) is less than 1.10:1.0
      for
      the preceding fiscal quarter and terminating, in each case, on the Payment
      Date
      next succeeding the date upon which Lender has determined that the Debt Service
      Coverage has been 1.10:1 or greater for the immediately preceding two fiscal
      quarters.

     

    “OFAC
      List”
means
      the list of specially designated nationals and blocked persons subject to
      financial sanctions that is maintained by the U.S. Treasury Department, Office
      of Foreign Assets Control and accessible through the internet website
www.treas.gov/ofac/t11sdn.pdf.

     

    “Officer’s
      Certificate”
shall
      mean a certificate delivered to Lender by Mortgagor which is signed on behalf
      of
      Mortgagor by an authorized representative of Mortgagor which states that the
      items set forth in such certificate are true, accurate and complete in all
      respects.

     

    “Operating
      Expenses”
shall
      mean, in each Fiscal Year or portion thereof during the term hereof, all
      expenses directly attributable to the operation, repair and/or maintenance
      of
      the Property including, without limitation, (a) Impositions, (b) insurance
      premiums, (c) management fees, whether or not actually paid, equal to the
      greater of the actual management fees or expenses and four percent (4%) of
      annual “base” or “fixed” Rent due under the Leases and (d) costs attributable to
      the operation, repair and maintenance of the systems for heating, ventilating
      and air conditioning the Improvements and actually paid for by Mortgagor.
      Operating Expenses shall not include interest, principal and premium, if any,
      due under the Note or otherwise in connection with the Debt, income taxes,
      Capital Expenditures, any non-cash charge or expense such as depreciation,
      amortization or any item of expense otherwise includable in Operating Expenses
      which is paid directly by any tenant except real estate taxes paid directly
      to
      any taxing authority by any tenant or contributions by Mortgagor to any reserve
      funds required under the Loan Documents.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    “Operating
      Income”
shall
      mean, in each Fiscal Year or portion thereof during the term hereof, all revenue
      derived by Mortgagor arising from the Property including, without limitation,
      rental revenues (whether denominated as basic rent, additional rent, escalation
      payments, electrical payments or otherwise) and other fees and charges payable
      pursuant to Leases or otherwise in connection with the Property, and the
      proceeds of business interruption, rent or other similar insurance. Operating
      Income shall not include (a) Insurance Proceeds (other than proceeds of
      rent, business interruption or other similar insurance allocable to the
      applicable period) and Condemnation Proceeds (other than Condemnation Proceeds
      arising from a temporary taking or the use and occupancy of all or part of
      the
      applicable Property allocable to the applicable period), or interest accrued
      on
      such Condemnation Proceeds, (b) proceeds of any financing, (c) proceeds of
      any
      sale, exchange or transfer of the Property or any part thereof or interest
      therein, (d) capital contributions or loans to Mortgagor or an Affiliate of
      Mortgagor, (e) any item of income otherwise includable in Operating Income
      but
      paid directly by any tenant to a Person other than Mortgagor except for real
      estate taxes paid directly to any taxing authority by any tenant, (f) any other
      extraordinary, non-recurring revenues, (g) Rent paid by or on behalf of any
      lessee under a Space Lease which is the subject of any proceeding or action
      relating to its bankruptcy, reorganization or other arrangement pursuant to
      the
      Bankruptcy Code or any similar federal or state law or which has been
      adjudicated a bankrupt or insolvent unless such Space Lease has been affirmed
      by
      the trustee in such proceeding or action, (h) Rent paid by or on behalf of
      any
      lessee under a Space Lease the demised premises of which are not occupied either
      by such lessee or by a sublessee thereof unless the lessee thereunder has a
      long-term unsecured debt rating of not less than “BBB+” (or its equivalent) from
      the Rating Agency, (i) Rent paid by or on behalf of any lessee under a Space
      Lease in whole or partial consideration for the termination of any Space Lease,
      (j) rent paid by or on behalf of lessees under month-to-month Space Leases
      for
      lessees which have been in occupancy for less than six (6) months, (k) rent
      paid
      by or on behalf of any lessee under a Space Lease that is more than thirty
      (30)
      days in arrears in its obligations under such Space Lease, (l) Rents paid by
      or
      on behalf of lessees who have given notice that they will be vacating the
      premises demised under their respective Space Leases more than thirty (30)
      days
      prior to the stated expiration date set forth in such Space Leases, or (m)
      sales
      tax rebates from any Governmental Authority.

     

    “Operation
      and Maintenance Expense Escrow Account”
shall
      mean the Escrow Account maintained pursuant to Section 5.09 hereof relating
      to
      the payment of Operating Expenses (exclusive of Basic Carrying
      Costs).

     

    “Operation
      and Maintenance Expense Sub-Account”
shall
      mean the Sub-Account of the Central Account established pursuant to Section
      5.02
      hereof into which sums allocated for the payment of Cash Expenses, Net Capital
      Expenditures and approved Extraordinary Expenses shall be
      deposited.

     

    “Payment
      Date”
shall
      have the meaning set forth in the Note.

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    “PBGC”
shall
      mean the Pension Benefit Guaranty Corporation established under ERISA, or any
      successor thereto.

     

    “Permitted
      Encumbrances”
shall
      have the meaning set forth in Section 2.05(a) hereof.

     

    “Person”
shall
      mean any individual, corporation, limited liability company, partnership, joint
      venture, estate, trust, unincorporated association, any federal, state, county
      or municipal government or any bureau, department or agency thereof and any
      fiduciary acting in such capacity on behalf of any of the
      foregoing.

     

    “Plan”
shall
      mean an employee benefit or other plan established or maintained by Mortgagor,
      Guarantor or any ERISA Affiliate during the five-year period ended prior to
      the
      date of this Security Instrument or to which Mortgagor, Guarantor or any ERISA
      Affiliate makes, is obligated to make or has, within the five year period ended
      prior to the date of this Security Instrument, been required to make
      contributions (whether or not covered by Title IV of ERISA or Section 302 of
      ERISA or Section 401(a) or 412 of the Code), other than a Multiemployer
      Plan.

     

    “Premises”
shall
      have the meaning set forth in granting clause (a) of this Security
      Instrument.

     

    “Principal
      Amount”
shall
      mean the Loan Amount as such amount may be reduced from time to time pursuant
      to
      the terms of this Security Instrument, the Note or the other Loan
      Documents.

     

    “Pro-Forma
      Net Operating Income”
shall
      mean Pro-Forma Operating Income less Pro-Forma Operating Expenses.

     

    “Pro-Forma
      Operating Expenses”
shall
      mean projected aggregate annualized Operating Expenses for all of the
      Cross-collateralized Properties based on a trailing twelve (12)-month period
      as
      reasonably adjusted by Lender to take into account, among other things,
      anticipated increases or decreases in Operating Expenses.

     

    “Pro-Forma
      Operating Income”
shall
      mean the lesser of (i) projected aggregate Operating Income for the
      Cross-collateralized Properties for the immediately subsequent 12-month period
      and (ii) actual aggregate Operating Income for the Cross-collateralized
      Properties for the immediately preceding 12-month period, as increased by
      scheduled rent increases set forth in the Space Leases and rent anticipated
      from
      tenants under Space Leases relating to any portion of the Premises which was
      previously not occupied provided such tenants are then in occupancy pursuant
      to
      Space Leases entered into in accordance with the terms of this Security
      Instrument and have paid all rents due under the Space Lease without abatement,
      suspension, deferment, diminution, reduction or other allowances for at least
      one full calendar month, in each case as determined by Lender based on the
      most
      recent rent roll and such other information as is required to be delivered
      by
      Mortgagor pursuant to Section 2.09 hereof and as reasonably adjusted by Lender
      to take into account, among other things, a vacancy factor equal to the greater
      of (x) anticipated vacancies for the succeeding 12-month period and (b) actual
      vacancies during the immediately preceding 12-month period. 

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    “Prohibited
      Person”
means
      any Person identified on the OFAC List or any other Person with whom a U.S.
      Person may not conduct business or transactions by prohibition of Federal law
      or
      Executive Order of the President of the United States of America. 

     

    “Property”
shall
      have the meaning set forth in the granting clauses of this Security
      Instrument.

     

    “Property
      Agreements”
shall
      mean all agreements, grants of easements and/or rights-of-way, reciprocal
      easement agreements, permits, declarations of covenants, conditions and
      restrictions, disposition and development agreements, planned unit development
      agreements, management or parking agreements, party wall agreements or other
      instruments affecting the Property, but not including any brokerage agreements,
      management agreements, service contracts, Space Leases or the Loan
      Documents.

     

    “Rating
      Agency”
shall
      mean Standard & Poor’s Ratings Services, Inc., a division of The McGraw-Hill
      Company, Inc. (“Standard
      & Poor’s”),
      Fitch, Inc., and Moody’s Investors Service, Inc. (“Moody’s”),
      collectively, and any successor to any of them; provided, however, that at
      any
      time after a Securitization, “Rating Agency” shall mean those of the foregoing
      rating agencies that from time to time rate the securities issued in connection
      with such Securitization.

     

    “Real
      Estate Taxes”
shall
      mean all real estate taxes, assessments (including, without limitation, all
      assessments for public improvements or benefits, whether or not commenced or
      completed prior to the date hereof and whether or not commenced or completed
      within the term of this Security Instrument), water, sewer or other rents and
      charges, and all other governmental charges, in each case whether general or
      special, ordinary or extraordinary, or foreseen or unforeseen, of every
      character in respect of the Property (including all interest and penalties
      thereon), which at any time prior to, during or in respect of the term hereof
      may be assessed or imposed on or in respect of or be a lien upon the Property
      or
      any part thereof or any estate, right, title or interest therein. 

     

    “Realty”
shall
      have the meaning set forth in Section 2.05(b) hereof.

     

    “Recurring
      Replacement Expenditures”
shall
      mean expenditures related to capital repairs, replacements and improvements
      performed at the Property from time to time. 

     

    “Recurring
      Replacement Monthly Installment”
shall
      mean the amount per month as set forth on Exhibit B attached hereto and made
      a
      part hereof.

     

    “Recurring
      Replacement Reserve Escrow Account”
shall
      mean the Escrow Account maintained pursuant to Section 5.08 hereof relating
      to
      the payment of Recurring Replacement Expenditures.

     

    “Recurring
      Replacement Reserve Sub-Account”
shall
      mean the Sub-Account of the Central Account established pursuant to Section
      5.02
      hereof into which the Recurring Replacement Monthly Installment shall be
      deposited.

     

    “Reletting
      Expenditures”
shall
      mean reasonable and actual out-of-pocket expenditures payable to bona-fide
      third
      parties incurred by Mortgagor relating to reletting of space at the Property
      and
      in connection with any brokerage commissions due and payable, or any
      improvements and replacements required to be made by Mortgagor (or reasonable
      and actual out-of-pocket expenditures paid to tenants in connection with any
      improvements and replacements made by tenants at the Property) under the terms
      of any Lease to prepare the relevant space for occupancy by the tenant
      thereunder.

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    “Reletting
      Reserve Escrow Account”
shall
      mean the Escrow Account maintained pursuant to Section 5.07 hereof relating
      to
      the payment of Reletting Expenditures.

     

    “Reletting
      Reserve Monthly Installment”
shall
      mean (a) the amount set forth on Exhibit B attached hereto and made a part
      hereof plus (b) all sums received by Mortgagor in connection with any
      cancellation, termination or surrender of any Lease, including, without
      limitation, any surrender or cancellation fees, buy-out fees, or reimbursements
      for tenant improvements and leasing commissions.

     

    “Reletting
      Reserve Sub-Account”
shall
      mean the Sub-Account of the Central Account established pursuant to Section
      5.02
      hereof into which the Reletting Reserve Monthly Installment shall be
      deposited.

     

    “Rents”
shall
      have the meaning set forth in granting clause (f) of this Security
      Instrument.

     

    “Rent
      Account”
shall
      mean an Eligible Account, maintained at the Bank, in the joint names of
      Mortgagor and Lender or its successors or assigns (as secured party) as may
      be
      designated by Lender.

     

    “Rent
      Roll”
shall
      have the meaning set forth in Section 2.05 (o) hereof.

     

    “Required
      Debt Service Coverage”
shall
      mean a Debt Service Coverage of not less than –1.20:1.0.

     

    “Required
      Debt Service Payment”
shall
      mean, as of any Payment Date, the amount of interest and principal then due
      and
      payable pursuant to the Note, together with any other sums due thereunder,
      including, without limitation, any prepayments required to be made or for which
      notice has been given under this Security Instrument, Default Rate Interest
      and
      premium, if any, paid in accordance therewith.

     

    “Required
      Engineering Work”
shall
      mean the immediate engineering and/or environmental remediation work set forth
      on Exhibit D attached hereto and made a part hereof.

     

    “Retention
      Amount”
shall
      have the meaning set forth in Section 3.04(b)(vii) hereof.

     

    “Securities
      Act”
shall
      mean the Securities Act of 1933, as the same shall be amended from time to
      time.

     

    “Securitization”
shall
      mean a public or private offering of securities by Lender or any of its
      Affiliates or their respective successors and assigns which are collateralized,
      in whole or in part, by this Security Instrument. 

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     

    “Security
      Deposit Account”
shall
      have the meaning set forth in Section 5.01 hereof.

     

    “Security
      Instrument”
shall
      mean this Security Instrument as originally executed or as it may hereafter
      from
      time to time be supplemented, amended, modified or extended by one or more
      indentures supplemental hereto.

     

    “Single
      Purpose Entity”
shall
      mean a corporation, partnership, joint venture, limited liability company,
      trust
      or unincorporated association, which is formed or organized solely for the
      purpose of holding, directly, an ownership interest in the Property or a general
      partner interest in a Person, does not engage in any business unrelated to
      the
      Property, does not have any assets other than those related to its interest
      in
      the Property or a general partner interest in such Person, or any indebtedness,
      other than as permitted by this Security Instrument or the other Loan Documents,
      has its own separate books and records and has its own accounts, in each case
      which are separate and apart from the books and records and accounts of any
      other Person, holds itself out as being a Person separate and apart from any
      other Person and which otherwise satisfies the criteria of the Rating Agency,
      as
      in effect on the Closing Date, for a special-purpose bankruptcy-remote entity.
      

     

    “Solvent”
shall
      mean, as to any Person, that (a) the sum of the assets of such Person, at a
      fair
      valuation, exceeds its liabilities, including contingent liabilities, (b) such
      Person has sufficient capital with which to conduct its business as presently
      conducted and as proposed to be conducted and (c) such Person has not incurred
      debts, and does not intend to incur debts, beyond its ability to pay such debts
      as they mature. For purposes of this definition, “debt”
means
      any liability on a claim, and “claim”
means
      (a) a right to payment, whether or not such right is reduced to judgment,
      liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed,
      undisputed, legal, equitable, secured or unsecured, or (b) a right to an
      equitable remedy for breach of performance if such breach gives rise to a
      payment, whether or not such right to an equitable remedy is reduced to
      judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured,
      or unsecured. With respect to any such contingent liabilities, such liabilities
      shall be computed in accordance with GAAP at the amount which, in light of
      all
      the facts and circumstances existing at the time, represents the amount which
      can reasonably be expected to become an actual or matured
      liability.

     

    “Space
      Leases”
shall
      mean any Lease or sublease thereunder (including, without limitation, any Major
      Space Lease) or any other agreement providing for the use and occupancy of
      a
      portion of the Property as the same may be amended, renewed or
      supplemented.

     

    “State”
shall
      mean any of the states which are members of the United States of
      America.

     

    “Stated
      Maturity”,
      when
      used with respect to the Note or any installment of interest and/or principal
      payment thereunder, shall mean the date specified in the Note as the fixed
      date
      on which a payment of principal and/or interest is due and payable.

     

    “Sub-Accounts”
shall
      have the meaning set forth in Section 5.02 hereof. 

     

    “Substantial
      Casualty”
shall
      have the meaning set forth in Section 3.04(a)(iv) hereof.

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    “Taking”
shall
      mean a condemnation or taking pursuant to the lawful exercise of the power
      of
      eminent domain.

     

    “Transfer”
shall
      mean the conveyance, assignment, sale, mortgaging, encumbrance, pledging,
      hypothecation, granting of a security interest in, granting of options with
      respect to, or other disposition of (directly or indirectly, voluntarily or
      involuntarily, by operation of law or otherwise, and whether or not for
      consideration or of record) all or any portion of any legal or beneficial
      interest (a) in all or any portion of the Property; (b) if Mortgagor or, if
      Mortgagor is a partnership, any General Partner, is a corporation, in the stock
      of Mortgagor or any General Partner; (c) if Mortgagor is a limited or general
      partnership, joint venture, limited liability company, trust, nominee trust,
      tenancy in common or other unincorporated form of business association or form
      of ownership interest, in any Person having a legal or beneficial ownership
      in
      Mortgagor, excluding any legal or beneficial interest in any constituent limited
      partner, if Mortgagor is a limited partnership, or in any non-managing member,
      if Mortgagor is a limited liability company, unless such interest would, or
      together with all other direct or indirect interests in Mortgagor which were
      previously transferred, aggregate 49% or more of the partnership or membership,
      as applicable, interests in Mortgagor or would result in any Person who, as
      of
      the Closing Date, did not own, directly or indirectly, 49% or more of the
      partnership or membership, as applicable, interests in Mortgagor, owning,
      directly or indirectly, 49% or more of the partnership or membership, as
      applicable, interests in Mortgagor and excluding any legal or beneficial
      interest in any General Partner unless such interest would, or together with
      all
      other direct or indirect interest in the General Partner which were previously
      transferred, aggregate 49% or more of the partnership or membership, as
      applicable, interests in the General Partner (or result in a change in control
      of the management of the General Partner from the individuals exercising such
      control immediately prior to the conveyance or other disposition of such legal
      or beneficial interest) and shall also include, without limitation to the
      foregoing, the following: an installment sales agreement wherein Mortgagor
      agrees to sell the Property or any part thereof or any interest therein for
      a
      price to be paid in installments; an agreement by Mortgagor leasing all or
      substantially all of the Property to one or more Persons pursuant to a single
      or
      related transactions, or a sale, assignment or other transfer of, or the grant
      of a security interest in, Mortgagor’s right, title and interest in and to any
      Leases or any Rent; any instrument subjecting the Property to a condominium
      regime or transferring ownership to a cooperative corporation; and the
      dissolution or termination of Mortgagor or the merger or consolidation of
      Mortgagor with any other Person. Notwithstanding
      the foregoing, “Transfer” shall not include the following transfer which would
      otherwise be a Transfer pursuant to clause (c) above with respect to Mortgagor:
      the acquisition, issuance or transfer (whether in one transaction or in a series
      of transactions) of securities in Lightstone Value Plus Real Estate Investment
      Trust, Inc., a Maryland corporation (hereinafter, "REIT") or the sale of REIT
      shares pursuant to its prospectus dated May 22, 2005, as supplemented, if the
      shares of REIT are listed on a national securities exchange and such transfer
      is
      in the ordinary course of trading of REIT's shares on a national securities
      exchange and so long as the securities of REIT are publicly traded except that
      (x) REIT shall not merge or consolidate into another entity (i.e., where REIT
      is
      not the surviving entity) (a “Merger”), and any transfer of interests or series
      of transfers in interests in REIT shall not result in more than 49% of REIT
      being owned by any single person or entity (or related group of people or
      entities) (a “Majority Transfer”) if provided all of the following conditions
      are satisfied if (i) written notice of any transfer
      pursuant
      to this proviso is given to Lender together with such documents relating to
      the
      transfer as Lender may reasonably require, (ii) there is a change in Control
      of
      Mortgagor, (iii) in the event that any Person (a “Principal
      Transferee”)
      who
      does not, as of the Closing Date, own or Control, directly or indirectly, 49%
      or
      more of the partnership or membership, as applicable, interests in Mortgagor
      acquires, directly or indirectly, 49% or more of the partnership or membership,
      as applicable, interests in Mortgagor, Lender is furnished an opinion, in form
      and substance and from counsel reasonably satisfactory to Lender, substantially
      similar to the Insolvency Opinion which discusses the substantive
      non-consolidation of Mortgagor with the Principal Transferee, (iv) no such
      transfer has any adverse effect either on the Single Purpose Entity status
      of
      Mortgagor under the requirements of any Rating Agency or on the status of
      Mortgagor as a continuing legal entity liable for the payment of the Debt and
      the performance of all other obligations secured hereby, (v) Mortgagor has
      delivered a letter from each Rating Agency confirming that any rating issued
      by
      the Rating Agency in connection with a Securitization will not, as a result
      of
      the transfer, be downgraded from the then current ratings thereof, qualified
      or
      withdrawn, (vi) in the event that any Person (together with its Affiliates)
      acquires a twenty percent (20%) or greater interest, directly or indirectly,
      in
      Mortgagor or there is a change in Control of Mortgagor, as a result of such
      transfer, Lender shall have consented to such transfer in its sole and absolute
      discretion.

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    “UCC”
shall
      mean the Uniform Commercial Code as in effect from time to time in the State
      in
      which the Property is located. 

     

    “Unscheduled
      Payments”
shall
      mean (a) all Loss Proceeds that Mortgagor has elected or is required to apply
      to
      the repayment of the Debt pursuant to this Security Instrument, the Note or
      any
      other Loan Documents, (b) any funds representing a voluntary or involuntary
      principal prepayment and (c) any Net Proceeds.

     

    “Use
      Requirements”
shall
      mean any and all building codes, permits, certificates of occupancy or
      compliance, laws, regulations, or ordinances (including, without limitation,
      health, pollution, fire protection, medical and day-care facilities, waste
      product and sewage disposal regulations), restrictions of record, easements,
      reciprocal easements, declarations or other agreements affecting the use of
      the
      Property or any part thereof.

     

    “Welfare
      Plan”
shall
      mean an employee welfare benefit plan as defined in Section 3(1) of ERISA
      established or maintained by Mortgagor, Guarantor or any ERISA Affiliate or
      that
      covers any current or former employee of Mortgagor, Guarantor or any ERISA
      Affiliate.

     

    “Work”
shall
      have the meaning set forth in Section 3.04(a)(i) hereof.

     

    ARTICLE
      II: REPRESENTATIONS,
      WARRANTIES

    AND
      COVENANTS OF MORTGAGOR

     

    Section
      2.01. Payment
      of Debt.
      Mortgagor will pay the Debt at the time and in the manner provided in the Note
      and the other Loan Documents, all in lawful money of the United States of
      America in immediately available funds.

     

    Section
      2.02. Representations,
      Warranties and Covenants of Mortgagor.
      Mortgagor represents, warrants and covenants to Lender:

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

    (a) Organization
      and Authority.
      Each
      entity comprising Mortgagor (i) is a limited liability company, general
      partnership, limited partnership or corporation, as the case may be, duly
      organized, validly existing and in good standing under the laws of the
      jurisdiction of its formation, (ii) has all requisite power and authority
      and all necessary licenses and permits to own and operate the Property and
      to
      carry on its business as now conducted and as presently proposed to be conducted
      and (iii) is duly qualified, authorized to do business and in good standing
      in
      the jurisdiction where the Property is located and in each other jurisdiction
      where the conduct of its business or the nature of its activities makes such
      qualification necessary. If Mortgagor is a limited liability company, limited
      partnership or general partnership, each general partner or managing member,
      as
      applicable, of Mortgagor which is a corporation is duly organized, validly
      existing, and in good standing under the laws of the jurisdiction of its
      incorporation.

     

    (b) Power.
      Mortgagor and, if applicable, each General Partner has full power and authority
      to execute, deliver and perform, as applicable, the Loan Documents to which
      it
      is a party, to make the borrowings thereunder, to execute and deliver the Note
      and to grant to Lender a first lien on and security interest in the Property,
      subject only to the Permitted Encumbrances.

     

    (c) Authorization
      of Borrowing.
      The
      execution, delivery and performance of the Loan Documents to which Mortgagor
      is
      a party, the making of the borrowings thereunder, the execution and delivery
      of
      the Note, the grant of the liens on the Property pursuant to the Loan Documents
      to which Mortgagor is a party and the consummation of the Loan are within the
      powers of Mortgagor and have been duly authorized by Mortgagor and, if
      applicable, the General Partners, by all requisite action (and Mortgagor hereby
      represents that no approval or action of any member, limited partner or
      shareholder, as applicable, of Mortgagor is required to authorize any of the
      Loan Documents to which Mortgagor is a party other than such approval or action
      that has already been granted or taken) and will constitute the legal, valid
      and
      binding obligation of Mortgagor, enforceable against Mortgagor in accordance
      with their terms, except as enforcement may be stayed or limited by bankruptcy,
      insolvency or similar laws affecting the enforcement of creditors’ rights
      generally and by general principles of equity (whether considered in proceedings
      at law or in equity) and will not (i) violate any provision of its partnership
      agreement or partnership certificate or certificate of incorporation or by-laws,
      or operating agreement, or articles of organization, as applicable, or, to
      its
      knowledge, any law, judgment, order, rule or regulation of any court,
      arbitration panel or other Governmental Authority, domestic or foreign, or
      other
      Person affecting or binding upon Mortgagor or the Property, or (ii) violate
      any
      provision of any indenture, agreement, mortgage, deed of trust, contract or
      other instrument to which Mortgagor or, if applicable, any General Partner
      is a
      party or by which any of their respective property, assets or revenues are
      bound, or be in conflict with, result in an acceleration of any obligation
      or a
      breach of or constitute (with notice or lapse of time or both) a default or
      require any payment or prepayment under, any such indenture, agreement,
      mortgage, deed of trust, contract or other instrument, or (iii) result in the
      creation or imposition of any lien, except those in favor of Lender as provided
      in the Loan Documents to which it is a party. The loan evidenced by the Note
      is
      being made for business or investment purposes.

     

    (d) Consent.
      Neither
      Mortgagor nor, if applicable, any General Partner, is required to obtain any
      consent, approval or authorization from, or to file any declaration or statement
      with, any Governmental Authority or other agency in connection with or as a
      condition to the execution, delivery or performance of this Security Instrument,
      the Note or
      the other Loan Documents which has not been so obtained or filed.

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

     

    (e) Intentionally
      Deleted.

     

    (f) Other
      Agreements.
      Mortgagor is not a party to nor is otherwise bound by any agreements or
      instruments which, individually or in the aggregate, are reasonably likely
      to
      have a Material Adverse Effect. Neither Mortgagor nor, if applicable, any
      General Partner, is in violation of its organizational documents or other
      restriction or any agreement or instrument by which it is bound, or any
      judgment, decree, writ, injunction, order or award of any arbitrator, court
      or
      Governmental Authority, or any Legal Requirement, in each case, applicable
      to
      Mortgagor or the Property, except for such violations that would not,
      individually or in the aggregate, have a Material Adverse Effect.

     

    (g) Maintenance
      of Existence.
      Mortgagor and, if applicable, General Partner at all times since their formation
      have been duly formed and existing and shall preserve and keep in full force
      and
      effect their existence as a Single Purpose Entity.

     

    (ii) Mortgagor
      and, if applicable, General Partner, at all times since their organization
      have
      complied, and will continue to comply, with the provisions of its certificate
      and agreement of partnership or certificate of incorporation and by-laws or
      articles of organization and operating agreement, as applicable, and the laws
      of
      its jurisdiction of organization relating to partnerships, corporations or
      limited liability companies, as applicable.

     

    (iii) Mortgagor
      and, if applicable, General Partner have done or caused to be done and will
      do
      all things necessary to observe organizational formalities and preserve their
      existence and each Mortgagor and, if applicable, General Partner will not amend,
      modify or otherwise change the certificate and agreement of partnership or
      certificate of incorporation and by-laws or articles of organization and
      operating agreement, as applicable, or other organizational documents of
      Mortgagor and, if applicable, General Partner without the prior written consent
      of Lender. 

     

    (iv) Mortgagor
      and, if applicable, General Partner, have at all times accurately maintained,
      and will continue to accurately maintain, their respective financial statements,
      accounting records and other partnership, company or corporate documents
      separate from those of any other Person, and Mortgagor will file its own tax
      returns or, if Mortgagor and/or, if applicable, General Partner is part of
      a
      consolidated group for purposes of filing tax returns, Mortgagor and General
      Partner, as applicable will be shown as separate members of such group.
      Mortgagor and, if applicable, General Partner have not at any time since their
      formation commingled, and will not commingle, their respective assets with
      those
      of any other Person and will maintain their assets in such a manner such that
      it
      will not be costly or difficult to segregate, ascertain or identify their
      individual assets from those of any other Person. Mortgagor and, if applicable,
      General Partner will not permit any Affiliate independent access to their bank
      accounts. Mortgagor and, if applicable, General Partner have at all times since
      their formation accurately maintained and utilized, and will continue to
      accurately maintain and utilize, their own separate bank accounts, payroll
      and
      separate books of account, stationery, invoices and checks.

     

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

     

    (v) Mortgagor
      and, if applicable, General Partner, have at all times paid, and will continue
      to pay, their own liabilities from their own separate assets and shall each
      allocate and charge fairly and reasonably any overhead which Mortgagor and,
      if
      applicable, General Partner, shares with any other Person, including, without
      limitation, for office space and services performed by any employee of another
      Person.

     

    (vi) Mortgagor
      and, if applicable, General Partner, have at all times identified themselves,
      and will continue to identify themselves, in all dealings with the public,
      under
      their own names and as separate and distinct entities and shall correct any
      known misunderstanding regarding their status as separate and distinct entities.
      Mortgagor and, if applicable, General Partner, have not at any time identified
      themselves, and will not identify themselves, as being a division of any other
      Person.

     

    (vii) Mortgagor
      and, if applicable, General Partner, have been at all times, and will continue
      to use commercially reasonable efforts to be, adequately capitalized in light
      of
      the nature of their respective businesses; provided, however, in no event shall
      any direct or indirect member, partner or principal of Mortgagor be required
      to
      make additional capital contributions to any Mortgagor.

     

    (viii) Mortgagor
      and, if applicable, General Partner, (A) have not owned, do not own and will
      not
      own any assets or property other than the Property and any incidental personal
      property necessary for the ownership, management or operation of the Property,
      (B) have not engaged and will not engage in any business other than the
      ownership, management and operation of the Property, (C) have not incurred
      and
      will not incur any debt, secured or unsecured, direct or contingent (including
      guaranteeing any obligation), other than (X) the Loan, and (Y) unsecured trade
      and operational debt which (1) is not evidenced by a note, (2) is incurred
      in
      the ordinary course of the operation of the Property, (3) does not exceed in
      the
      aggregate two percent (2%) of the Allocated Loan Amount for the Property and
      (4)
      which is, unless being contested in accordance with the terms of this Security
      Instrument, paid prior to the earlier to occur of the forty-fifth (45th) day
      after the date incurred and the date when due, (D) have not and will not pledge
      their assets for the benefit of any other Person, and (E) have not made and
      will
      not make any loans or advances to any Person (including any
      Affiliate).

     

    (ix) Neither
      Mortgagor nor, if applicable, any General Partner will change its name or
      principal place of business without giving Lender at least thirty (30) days
      prior written notice thereof.

     

    (x) Neither
      Mortgagor nor, if applicable, any General Partner have, and neither of such
      Persons will have, any subsidiaries.

     

    (xi) Mortgagor
      will preserve and maintain its existence as a general partnership, limited
      partnership or limited liability company, as applicable as of the Closing Date,
      which is organized and existing under the laws of the State in which it is
      organized as of the Closing Date and all material rights, privileges, tradenames
      and franchises.

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

     

    (xii) Neither
      Mortgagor, nor, if applicable, any General Partner, will merge or consolidate
      with, or sell all or substantially all of its respective assets to any Person,
      or liquidate, wind up or dissolve itself (or suffer any liquidation, winding
      up
      or dissolution). Neither any Mortgagor, nor, if applicable, any General Partner
      will acquire any business or assets from, or capital stock or other ownership
      interest of, or be a party to any acquisition of, any Person.

     

    (xiii) Mortgagor
      and, if applicable, General Partner, have not at any time since their formation
      assumed, guaranteed or held themselves out to be responsible for, and will
      not
      assume, guarantee or hold themselves out to be responsible for the liabilities
      or the decisions or actions respecting the daily business affairs of their
      partners, shareholders or members or any predecessor company, corporation or
      partnership, each as applicable, any Affiliates, or any other Persons. Mortgagor
      has not at any time since its formation acquired, and will not acquire,
      obligations or securities of its partners or shareholders, members or any
      predecessor company, corporation or partnership, each as applicable, or any
      Affiliates. Mortgagor and, if applicable, General Partner, have not at any
      time
      since their formation made, and will not make, loans to its partners, members
      or
      shareholders or any predecessor company, corporation or partnership, each as
      applicable, or any Affiliates of any of such Persons. Mortgagor and, if
      applicable, General Partner, have no known contingent liabilities nor do they
      have any material financial liabilities under any indenture, mortgage, deed
      of
      trust, loan agreement or other agreement or instrument to which such Person
      is a
      party or by which it is otherwise bound other than under the Loan
      Documents.

     

    (xiv) Mortgagor
      has not at any time since its formation entered into and was not a party to,
      and, will not enter into or be a party to, any transaction with its Affiliates,
      members, partners or shareholders, as applicable, or any Affiliates thereof
      except in the ordinary course of business of Mortgagor on terms which are no
      less favorable to Mortgagor than would be obtained in a comparable arm’s length
      transaction with an unrelated third party.

     

    (xv) If
      Mortgagor is a limited partnership or a limited liability company, the General
      Partner shall be a corporation or limited liability company whose sole asset
      is
      its interest in Mortgagor and the General Partner will at all times comply,
      and
      will cause Mortgagor to comply, with each of the representations, warranties,
      and covenants contained in this Section 2.02(g) as if such representation,
      warranty or covenant was made directly by such General Partner.

     

    (xvi) Mortgagor
      shall at all times cause there to be at least two (2) duly appointed members
      of
      the board of directors or board of managers or other governing board or body,
      as
      applicable (an “Independent
      Director”),
      of,
      if Mortgagor is a corporation or single member limited liability company formed
      in the State of Delaware, Mortgagor, and, if Mortgagor is a limited partnership
      or multi-member limited liability company, of the General Partner, reasonably
      satisfactory to Lender who shall not have been at the time of such individual’s
      appointment, and may not be or have been at any time (A) a shareholder, officer,
      director, attorney, counsel, partner, member or employee of Mortgagor or any
      of
      the foregoing Persons or Affiliates thereof, (B) a customer or creditor of,
      or
      supplier or service provider to, Mortgagor or any of its shareholders, partners,
      members or their Affiliates, (C) a member of the immediate family of any Person
      referred to in (A) or (B) above, D) a Person Controlling, Controlled by or
      under
      common Control with any Person referred to in (A) through (C) above. A natural
      person who otherwise satisfies the foregoing definition except for being the
      Independent Director of a Single Purpose Entity Affiliated with Mortgagor or
      General Partner shall not be disqualified from serving as an Independent
      Director if such individual is at the time of initial appointment, or at any
      time while serving as the Independent Director, an Independent Director of
      a
      Single Purpose Entity Affiliated with Mortgagor or General Partner if such
      individual is an independent director provided by a nationally-recognized
      company that provides professional independent directors.

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

     

    (xvii)
       Mortgagor
      and, if applicable, General Partner, shall not cause or permit the board of
      directors or board of managers or other governing board or body, as applicable,
      of each Mortgagor or, if applicable, General Partner, to take any action which,
      under the terms of any certificate of incorporation, by-laws or articles of
      organization with respect to any common stock, requires a unanimous vote of
      the
      board of directors of Mortgagor, or, if applicable, the General Partner, unless
      at the time of such action there shall be at least two members who are
      Independent Directors.

     

    (xviii) Mortgagor
      and, if applicable, General Partner shall pay the salaries of their own
      employees and maintain a sufficient number of employees in light of their
      contemplated business operations.

     

    (xix) Mortgagor
      shall, and shall cause its Affiliates to, conduct its business so that the
      assumptions made with respect to Mortgagor in that certain opinion letter
      relating to substantive non-consolidation dated the date hereof (the
“Insolvency
      Opinion”)
      delivered in connection with the Loan shall be true and correct in all
      respects.

     

    (h) No
      Defaults.
      No
      Default or Event of Default has occurred and is continuing or would occur as
      a
      result of the consummation of the transactions contemplated by the Loan
      Documents. To the best of Mortgagor’s knowledge, Mortgagor is not in default
      beyond any applicable notice and/or grace periods in the payment or performance
      of any of its Contractual Obligations in any respect.

     

    (i) Consents
      and Approvals.
      Mortgagor and, if applicable, each General Partner, have obtained or made all
      necessary (i) consents, approvals and authorizations, and registrations and
      filings of or with all Governmental Authorities and (ii) consents,
      approvals, waivers and notifications of partners, stockholders, creditors,
      lessors and other nongovernmental Persons, in each case, which are required
      to
      be obtained or made by Mortgagor or, if applicable, the General Partner, in
      connection with the execution and delivery of, and the performance by Mortgagor
      of its obligations under, the Loan Documents.

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

     

    (j) Investment
      Company Act Status, etc.
      Mortgagor is not (i) an “investment company,” or a company “controlled” by an
“investment company,” as such terms are defined in the Investment Company Act of
      1940, as amended, or (ii) subject to any other federal or state law or
      regulation which purports to restrict or regulate its ability to borrow
      money.

     

    (k) Compliance
      with Law.
      (i)
      Except as previously disclosed to Lender in writing, Mortgagor has received
      no
      notice of violation of any Legal Requirements and (ii) except for such
      violations which would not, individually or in the aggregate, have a Material
      Adverse Effect, Mortgagor is in compliance in all material respects with all
      Legal Requirements to which it or the Property is subject, including, without
      limitation, all Environmental Statutes, the Occupational Safety and Health
      Act
      of 1970, the Americans with Disabilities Act and ERISA. No portion of the
      Property has been or will be purchased, improved, fixtured, equipped or
      furnished with proceeds of any illegal activity and to the best of Mortgagor’s
      knowledge, no illegal activities are being conducted at or from the
      Property.

     

    (l) Financial
      Information.
      To the
      best of Mortgagor’s knowledge, all financial data that has been delivered by
      Mortgagor to Lender (i) is true, complete and correct in all material respects,
      (ii) accurately represents the financial condition and results of operations
      of
      the Persons covered thereby as of the date on which the same shall have been
      furnished in all material respects, and (iii) to the extent prepared by an
      independent certified public accounting firm, has been prepared in accordance
      with GAAP (or such other accounting basis as is reasonably acceptable to Lender)
      throughout the periods covered thereby except as disclosed therein. As of the
      date hereof, neither Mortgagor nor, if applicable, any General Partner, has
      any
      contingent liability, liability for taxes or other unusual or forward commitment
      not reflected in such financial statements delivered to Lender. Since the date
      of the last financial statements delivered by Mortgagor to Lender except as
      otherwise disclosed in such financial statements or notes thereto, there has
      been no change in the assets, liabilities or financial position of Mortgagor
      nor, if applicable, any General Partner, or in the results of operations of
      Mortgagor which would have a Material Adverse Effect. Neither Mortgagor nor,
      if
      applicable, any General Partner, has incurred any obligation or liability,
      contingent or otherwise not reflected in such financial statements which would
      have a Material Adverse Effect.

     

    (m) Transaction
      Brokerage Fees.
      Neither
      Mortgagor nor Lender have dealt with any financial advisors, brokers,
      underwriters, placement agents, agents or finders in connection with the
      transactions contemplated by this Security Instrument. MORTGAGOR
      HEREBY AGREES TO INDEMNIFY AND HOLD LENDER HARMLESS FOR, FROM AND AGAINST ANY
      AND ALL CLAIMS, LIABILITIES, COSTS AND EXPENSES OF ANY KIND IN ANY WAY RELATING
      TO OR ARISING FROM (I) A CLAIM BY ANY PERSON THAT SUCH PERSON ACTED ON BEHALF
      OF
      MORTGAGOR IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREIN OR (II) ANY
      BREACH OF THE FOREGOING REPRESENTATION. THE PROVISIONS OF THIS SUBSECTION (M)
      SHALL SURVIVE THE REPAYMENT OF THE DEBT.

     

    (n) Federal
      Reserve Regulations.
      No part
      of the proceeds of the Loan will be used for the purpose of purchasing or
      acquiring any “margin stock” within the meaning of Regulations T, U or X of the
      Board of Governors of the Federal Reserve System or for any other purpose which
      would be inconsistent with such Regulations T, U or X or any other Regulations
      of such Board of Governors, or for any purposes prohibited by Legal Requirements
      or by the terms and conditions of the Loan Documents.

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

     

    (o) Pending
      Litigation.
      Except
      as previously disclosed in writing to Lender, there are no actions, suits or
      proceedings pending or, to the knowledge of Mortgagor, threatened against or
      affecting Mortgagor or the Property in any court or before any Governmental
      Authority which if adversely determined either individually or collectively
      has
      or is reasonably likely to have a Material Adverse Effect. 

     

    (p) Solvency;
      No Bankruptcy.
      Mortgagor and, if applicable, the General Partner, (i) is and has at all times
      been Solvent and will remain Solvent immediately upon the consummation of the
      transactions contemplated by the Loan Documents and (ii) is free from
      bankruptcy, reorganization or arrangement proceedings or a general assignment
      for the benefit of creditors and is not contemplating the filing of a petition
      under any state or federal bankruptcy or insolvency laws or the liquidation
      of
      all or a major portion of such Person’s assets or property and Mortgagor has no
      knowledge of any Person contemplating the filing of any such petition against
      it
      or, if applicable, the General Partner. None of the transactions contemplated
      hereby will be or have been made with an intent to hinder, delay or defraud
      any
      present or future creditors of Mortgagor and Mortgagor has received reasonably
      equivalent value in exchange for its obligations under the Loan Documents.
      Mortgagor’s assets do not, and immediately upon consummation of the transaction
      contemplated in the Loan Documents will not, constitute unreasonably small
      capital to carry out its business as presently conducted or as proposed to
      be
      conducted. Mortgagor does not intend to, nor believe that it will, incur debts
      and liabilities beyond its ability to pay such debts as they may
      mature.

     

    (q) Use
      of
      Proceeds.
      The
      proceeds of the Loan shall be applied by Mortgagor to, inter alia,
      (i)
      satisfy certain secured loans presently encumbering all or a part of the
      Property and (ii) pay certain transaction costs incurred by Mortgagor in
      connection with the Loan. No portion of the proceeds of the Loan will be used
      by
      Mortgagor for family, personal, agricultural or household use.

     

    (r) Tax
      Filings.
      Mortgagor and, if applicable, each General Partner, have filed all federal,
      state and local tax returns required to be filed and have paid or made adequate
      provision for the payment of all federal, state and local taxes, charges and
      assessments payable by Mortgagor and, if applicable, each General Partner.
      Mortgagor and, if applicable, each General Partner, believe that their
      respective tax returns properly reflect the income and taxes of Mortgagor and
      said General Partner, if any, for the periods covered thereby, subject only
      to
      reasonable adjustments required by the Internal Revenue Service or other
      applicable tax authority upon audit.

     

    (s) Not
      Foreign Person.
      Mortgagor is not a “foreign person” within the meaning of §1445(f)(3) of the
      Code.

     

    (t) ERISA.
      (i)
The
      assets of Mortgagor and Guarantor are not and will not become treated as “plan
      assets”, whether by operation of law or under regulations promulgated under
      ERISA. Each Plan and Welfare Plan, and, to the knowledge of Mortgagor, each
      Multiemployer Plan, is in compliance in all material respects with, and has
      been
      administered in all material respects in compliance with, its terms and the
      applicable provisions of ERISA, the Code and any other applicable Legal
      Requirement, and no event or condition has occurred and is continuing as to
      which Mortgagor would be under an obligation to furnish a report to Lender
      under
      clause (ii)(A) of this Section. Other than an application for a favorable
      determination letter with respect to a Plan, there are no pending issues or
      claims before the Internal Revenue Service, the United States Department of
      Labor or any court of competent jurisdiction related to any Plan or Welfare
      Plan
      under which Mortgagor, Guarantor or any ERISA Affiliate, directly or indirectly
      (through an indemnification agreement or otherwise), could be subject to any
      material risk of liability under Section 409 or 502(i) of ERISA or Section
      4975
      of the Code. No Welfare Plan provides or will provide benefits, including,
      without limitation, death or medical benefits (whether or not insured) with
      respect to any current or former employee of Mortgagor, Guarantor or any ERISA
      Affiliate beyond his or her retirement or other termination of service other
      than (A) coverage mandated by applicable law, (B) death or disability benefits
      that have been fully provided for by fully paid up insurance or (C) severance
      benefits.

     

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

     

    (ii) Mortgagor
      will furnish to Lender as soon as possible, and in any event within ten (10)
      days after Mortgagor knows or has reason to believe that any of the events
      or
      conditions specified below with respect to any Plan, Welfare Plan or
      Multiemployer Plan has occurred or exists, an Officer’s Certificate setting
      forth details respecting such event or condition and the action, if any, that
      Mortgagor or its ERISA Affiliate proposes to take with respect thereto (and
      a
      copy of any report or notice required to be filed with or given to PBGC (or
      any
      other relevant Governmental Authority)) by Mortgagor or an ERISA Affiliate
      with
      respect to such event or condition, if such report or notice is required to
      be
      filed with the PBGC or any other relevant Governmental Authority:

     

    (A) any
      reportable event, as defined in Section 4043 of ERISA and the regulations issued
      thereunder, with respect to a Plan, as to which PBGC has not by regulation
      waived the requirement of Section 4043(a) of ERISA that it be notified within
      thirty (30) days of the occurrence of such event (provided that a failure to
      meet the minimum funding standard of Section 412 of the Code and of Section
      302
      of ERISA, including, without limitation, the failure to make on or before its
      due date a required installment under Section 412(m) of the Code and of Section
      302(e) of ERISA, shall be a reportable event regardless of the issuance of
      any
      waivers in accordance with Section 412(d) of the Code), and any request for
      a
      waiver under Section 412(d) of the Code for any Plan;

     

    (B) the
      distribution under Section 4041 of ERISA of a notice of intent to terminate
      any
      Plan or any action taken by Mortgagor or an ERISA Affiliate to terminate any
      Plan;

     

    (C) the
      institution by PBGC of proceedings under Section 4042 of ERISA for the
      termination of, or the appointment of a trustee to administer, any Plan, or
      the
      receipt by Mortgagor or any ERISA Affiliate of a notice from a Multiemployer
      Plan that such action has been taken by PBGC with respect to such Multiemployer
      Plan;

     

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

     

    (D) the
      complete or partial withdrawal from a Multiemployer Plan by Mortgagor or any
      ERISA Affiliate that results in liability under Section 4201 or 4204 of ERISA
      (including the obligation to satisfy secondary liability as a result of a
      purchaser default) or the receipt by Mortgagor or any ERISA Affiliate of notice
      from a Multiemployer Plan that it is in reorganization or insolvency pursuant
      to
      Section 4241 or 4245 of ERISA or that it intends to terminate or has terminated
      under Section 4041A of ERISA;

     

    (E) the
      institution of a proceeding by a fiduciary of any Multiemployer Plan against
      Mortgagor or any ERISA Affiliate to enforce Section 515 of ERISA, which
      proceeding is not dismissed within thirty (30) days;

     

    (F) the
      adoption of an amendment to any Plan that, pursuant to Section 401(a)(29) of
      the
      Code or Section 307 of ERISA, would result in the loss of tax-exempt status
      of
      the trust of which such Plan is a part if Mortgagor or an ERISA Affiliate fails
      to timely provide security to the Plan in accordance with the provisions of
      said
      Sections; or

     

    (G) the
      imposition of a lien or a security interest in connection with a
      Plan.

     

    (iii) Mortgagor
      shall not knowingly engage in or permit any transaction in connection with
      which
      Mortgagor, Guarantor or any ERISA Affiliate could be subject to either a civil
      penalty or tax assessed pursuant to Section 502(i) or 502(l) of ERISA or Section
      4975 of the Code, permit any Welfare Plan to provide benefits, including without
      limitation, medical benefits (whether or not insured), with respect to any
      current or former employee of Mortgagor, Guarantor or any ERISA Affiliate beyond
      his or her retirement or other termination of service other than
      (A) coverage mandated by applicable law, (B) death or disability benefits
      that have been fully provided for by paid up insurance or otherwise or (C)
      severance benefits, permit the assets of Mortgagor or Guarantor to become “plan
      assets”, whether by operation of law or under regulations promulgated under
      ERISA or adopt, amend (except as may be required by applicable law) or increase
      the amount of any benefit or amount payable under, or permit any ERISA Affiliate
      to adopt, amend (except as may be required by applicable law) or increase the
      amount of any benefit or amount payable under, any employee benefit plan
      (including, without limitation, any employee welfare benefit plan) or other
      plan, policy or arrangement, except for normal increases in the ordinary course
      of business consistent with past practice that, in the aggregate, do not result
      in a material increase in benefits expense to Mortgagor, Guarantor or any ERISA
      Affiliate.

     

    (u) Labor
      Matters.
      No
      organized work stoppage or labor strike is pending or, to Mortgagor’s best
      knowledge, threatened by employees or other laborers at the Property and neither
      Mortgagor nor Manager (i) is involved in or, to the best of their knowledge,
      threatened with any labor dispute, grievance or litigation relating to labor
      matters involving any employees and other laborers at the Property, including,
      without limitation, violation of any federal, state or local labor, safety
      or
      employment laws (domestic or foreign) and/or charges of unfair labor practices
      or discrimination complaints; (ii) has engaged in any unfair labor practices
      within the meaning of the National Labor Relations Act or the Railway Labor
      Act;
      or (iii) is a party to, or bound by, any collective bargaining agreement or
      union contract with respect to employees and other laborers at the Property
      and
      no such agreement or contract is currently being negotiated by Mortgagor,
      Manager or any of their Affiliates.

     

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

     

    (v) Mortgagor’s
      Legal Status.
      Mortgagor’s exact legal name that is indicated on the signature page hereto,
      organizational identification number and place of business or, if more than
      one,
      its chief executive office, as well as Mortgagor’s mailing address, if
      different, which were identified by Mortgagor to Lender and contained in this
      Security Instrument, are true, accurate and complete. Mortgagor (i) will not
      change its name, its place of business or, if more than one place of business,
      its chief executive office, or its mailing address or organizational
      identification number if it has one without giving Lender at least thirty (30)
      days prior written notice of such change, (ii) if Mortgagor does not have an
      organizational identification number and later obtains one, Mortgagor shall
      promptly notify Lender of such organizational identification number and (iii)
      Mortgagor will not change its type of organization, jurisdiction of organization
      or other legal structure.

     

    (w) Compliance
      with Anti-Terrorism, Embargo and Anti-Money Laundering Laws.
      (i)
      None of Mortgagor, General Partner, any Guarantor, or any Person who owns any
      equity interest in or Controls Mortgagor, General Partner or any Guarantor
      currently is identified on the OFAC List or otherwise qualifies as a Prohibited
      Person, and Mortgagor has implemented procedures, approved by General Partner,
      to ensure that no Person who now or hereafter owns an equity interest in
      Mortgagor or General Partner is a Prohibited Person or Controlled by a
      Prohibited Person, and (ii) none of Mortgagor, General Partner, or any Guarantor
      are in violation of any Legal Requirements relating to anti-money laundering
      or
      anti-terrorism, including, without limitation, Legal Requirements related to
      transacting business with Prohibited Persons or the requirements of the Uniting
      and Strengthening America by Providing Appropriate Tools Required to Intercept
      and Obstruct Terrorism Act of 2001, U.S. Public Law 107-56, and the related
      regulations issued thereunder, including temporary regulations, all as amended
      from time to time. To the best of Mortgagor’s knowledge, no tenant at the
      Property currently is identified on the OFAC List or otherwise qualifies as
      a
      Prohibited Person, and, to the best of Mortgagor’s knowledge, no tenant at the
      Property is owned or Controlled by a Prohibited Person. Mortgagor has
      implemented procedures to ensure that no tenant at the Property is a Prohibited
      Person or owned or Controlled by a Prohibited Person.

     

    Section
      2.03. Further
      Acts, etc.
      Mortgagor will, at the cost of Mortgagor, and without expense to Lender, do,
      execute, acknowledge and deliver all and every such further acts, deeds,
      conveyances, mortgages, deeds of trust or deeds to secure debt, as applicable,
      assignments, notices of assignments, transfers and assurances as Lender shall,
      from time to time, reasonably require for the better assuring, conveying,
      assigning, transferring, and confirming unto Lender the property and rights
      hereby mortgaged, given, granted, bargained, sold, alienated, enfeoffed,
      conveyed, confirmed, pledged, assigned and hypothecated, or which Mortgagor
      may
      be or may hereafter become bound to convey or assign to Lender, or for carrying
      out or facilitating the performance of the terms of this Security Instrument
      or
      for filing, registering or recording this Security Instrument and, on demand,
      will execute and deliver and hereby authorizes Lender to execute in the name
      of
      Mortgagor or without the signature of Mortgagor to the extent Lender may
      lawfully do so, one or more financing statements, chattel mortgages or
      comparable security instruments to evidence more effectively the lien hereof
      upon the Property. Mortgagor grants to Lender an irrevocable power of attorney
      coupled with an interest for the purpose of protecting, perfecting, preserving
      and realizing upon the interests granted pursuant to this Security Instrument
      and to effect the intent hereof, all as fully and effectually as Mortgagor
      might
      or could do; and Mortgagor hereby ratifies all that Lender shall lawfully do
      or
      cause to be done by virtue hereof; provided that Lender shall not exercise
      such
      power of attorney unless and until Mortgagor fails to take the required action
      within five (5) Business Days of demand unless the failure to so exercise it
      could, in Lender’s reasonable judgment, result in a Material Adverse Effect.
      Upon receipt of an affidavit of an officer of Lender as to the loss, theft,
      destruction or mutilation of the Note or any other Loan Document which is not
      of
      public record, and, in the case of any such mutilation, upon surrender and
      cancellation of such Note or other applicable Loan Document, Mortgagor will
      issue, in lieu thereof, a replacement Note or other applicable Loan Document,
      dated the date of such lost, stolen, destroyed or mutilated Note or other Loan
      Document in the same principal amount thereof and otherwise of like
      tenor.

     

    
      
        
        

      

      
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    Section
      2.04. Recording
      of Security Instrument, etc.
      Mortgagor forthwith upon the execution and delivery of this Security Instrument
      and thereafter, at the request of Lender, from time to time, will cause this
      Security Instrument, and any security instrument creating a lien or security
      interest or evidencing the lien hereof upon the Property and each instrument
      of
      further assurance to be filed, registered or recorded in such manner and in
      such
      places as may be required by any present or future law in order to publish
      notice of and fully perfect and protect the lien or security interest hereof
      upon, and the interest of Lender in, the Property. Mortgagor will pay all
      filing, registration or recording fees, and all expenses incident to the
      preparation, execution and acknowledgment of this Security Instrument, any
      mortgage, deed of trust or deed to secure debt, as applicable, supplemental
      hereto, any security instrument with respect to the Property and any instrument
      of further assurance, and all federal, state, county and municipal taxes,
      duties, imposts, assessments and charges imposed on, or arising out of or in
      connection with the execution, delivery and recording of this Security
      Instrument, any mortgage, deed of trust or deed to secure debt, as applicable,
      supplemental hereto, any security instrument with respect to the Property or
      any
      instrument of further assurance, except where prohibited by law to do so, in
      which event Lender may declare the Debt to be immediately due and payable.
      Mortgagor shall hold harmless and indemnify Lender, and its successors and
      assigns, against any liability incurred as a result of the imposition of any
      tax
      on the making and recording of this Security Instrument.

     

    Section
      2.05. Representations
      and Warranties as to the Property.
      Mortgagor represents and warrants with respect to the Property as
      follows:

     

    (a) Lien
      Priority and Perfection.
      This
      Security Instrument is a valid and enforceable (and, upon recordation in the
      Official Records, will be a perfected) first lien on the Property, free and
      clear of all encumbrances, security interests, and liens having priority over
      the lien and security interest of this Security Instrument, except for the
      items
      set forth as exceptions to or subordinate matters in the title insurance policy
      insuring the lien of this Security Instrument, none of which, individually
      or in
      the aggregate, materially interfere with the benefits of the security intended
      to be provided by this Security Instrument, materially affect the value or
      insurability of the Property, impair the use or operation of the Property for
      the use currently being made thereof or impair Mortgagor’s ability to pay its
      obligations in a timely manner (such items being the “Permitted
      Encumbrances”).

     

    
      
        
        

      

      
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    (b) Title.
      Mortgagor has, subject only to the Permitted Encumbrances, good, insurable
      and
      marketable fee simple title to the Premises, Improvements and Fixtures
      (collectively, the “Realty”)
      and to
      all easements and rights benefiting the Realty and has the right, power and
      authority to mortgage, encumber, give, grant, bargain, sell, alien, enfeoff,
      convey, confirm, pledge, assign, and hypothecate the Property. Subject to
      Permitted Encumbrances, Mortgagor will preserve its interest in and title to
      the
      Property and will forever warrant and defend the same to Lender against any
      and
      all claims made by, through or under Mortgagor and will forever warrant and
      defend the validity and priority of the lien and security interest created
      herein against the claims of all Persons whomsoever claiming by, through or
      under Mortgagor. The foregoing warranty of title shall survive the foreclosure
      of this Security Instrument and shall inure to the benefit of and be enforceable
      by Lender in the event Lender acquires title to the Property pursuant to any
      foreclosure. In addition, there are no outstanding options or rights of first
      refusal to purchase the Property or Mortgagor’s ownership thereof.

     

    (c) Taxes
      and Impositions.
      Other
      than those being contested in accordance herewith, all taxes and other
      Impositions and governmental assessments due and owing and not delinquent in
      respect of, and affecting, the Property have been paid. Other than those being
      contested in accordance herewith, Mortgagor has paid all Impositions which
      constitute special governmental assessments in full, except for those
      assessments which are permitted by applicable Legal Requirements to be paid
      in
      installments, in which case all installments which are due and payable have
      been
      paid in full. There are no pending, or to Mortgagor’s best knowledge, proposed
      special or other assessments for public improvements or otherwise affecting
      the
      Property, nor are there any contemplated improvements to the Property that
      may
      result in such special or other assessments.

     

    (d) Casualty;
      Flood Zone.
      Except
      as set forth in the Engineering Report and Environmental Report, the Realty
      is
      in good repair and free and clear of any damage, destruction or casualty
      (whether or not covered by insurance) that would materially affect the value
      of
      the Realty or the use for which the Realty was intended, there exists no
      structural or other material defects or damages in or to the Property and
      Mortgagor has not received any written notice from any insurance company or
      bonding company of any material defect or inadequacies in the Property, or
      any
      part thereof, which would materially and adversely affect the insurability
      of
      the same or cause the imposition of extraordinary premiums or charges thereon
      or
      of any termination or threatened termination of any policy of insurance or
      bond.
      No portion of the Premises is located in an “area of special flood hazard,” as
      that term is defined in the regulations of the Federal Insurance Administration,
      Department of Housing and Urban Development, under the National Flood Insurance
      Act of 1968, as amended (24 CFR § 1909.1) or Mortgagor has obtained the
      flood insurance required by Section 3.01(a)(vi) hereof. The Premises either
      does
      not lie in a 100 year flood plain that has been identified by the Secretary
      of
      Housing and Urban Development or any other Governmental Authority or, if it
      does, Mortgagor has obtained the flood insurance required by Section 3.01(a)(vi)
      hereof.

     

    
      
        
        

      

      
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    (e) Completion;
      Encroachment.
      All
      Improvements necessary for the efficient use and operation of the Premises,
      including, without limitation, all Improvements which were included for purposes
      of determining the appraised value of the Property in the Appraisal, have been
      completed and none of said Improvements lie outside the boundaries and building
      restriction lines of the Premises. Except as set forth in the title insurance
      policy insuring the lien of this Security Instrument, no improvements on
      adjoining properties encroach upon the Premises.

     

    (f) Separate
      Lot.
      The
      Premises are taxed separately without regard to any other real estate and
      constitute a legally subdivided lot under all applicable Legal Requirements
      (or,
      if not subdivided, no subdivision or platting of the Premises is required under
      applicable Legal Requirements), and for all purposes may be mortgaged,
      encumbered, conveyed or otherwise dealt with as an independent parcel. Except
      as
      previously disclosed in writing to Lender, the Property does not benefit from
      any tax abatement or exemption.

     

    (g) Use.
      To the
      best of Mortgagor’s knowledge, the existence of all Improvements, the present
      use and operation thereof and the access of the Premises and the Improvements
      to
      all of the utilities and other items referred to in paragraph (k) below are
      in
      compliance in all material respects with all Leases affecting the Property
      and
      all applicable Legal Requirements, including, without limitation, Environmental
      Statutes, Development Laws and Use Requirements. Mortgagor has not received
      any
      notice from any Governmental Authority alleging any uncured violation relating
      to the Property of any applicable Legal Requirements. There will be no
      residential use of the Property.

     

    (h) Licenses
      and Permits.
      Mortgagor currently holds and will continue to hold all certificates of
      occupancy, licenses, registrations, permits, consents, franchises and approvals
      of any Governmental Authority or any other Person which are material for the
      lawful occupancy and operation of the Realty or which are material to the
      ownership or operation of the Property or the conduct of Mortgagor’s business.
      All such certificates of occupancy, licenses, registrations, permits, consents,
      franchises and approvals are current and in full force and effect.

     

    (i) Environmental
      Matters.
      Mortgagor has received and reviewed the Environmental Report and has no reason
      to believe that the Environmental Report contains any untrue statement of a
      material fact or omits to state a material fact necessary to make the statements
      contained therein or herein, in light of the circumstances under which such
      statements were made, not misleading.

     

    (j) Property
      Proceedings.
      Other
      than as previously disclosed in writing by Mortgagor to Lender, there are no
      actions, suits or proceedings pending or, to Mortgagor’s knowledge, threatened
      in any court or before any Governmental Authority or arbitration board or
      tribunal (i) relating to (A) the zoning of the Premises or any part
      thereof, (B) any certificates of occupancy, licenses, registrations,
      permits, consents or approvals issued with respect to the Property or any part
      thereof, (C) the condemnation of the Property or any part thereof, or
      (D) the condemnation or relocation of any roadways abutting the Premises
      required for access or the denial or limitation of access to the Premises or
      any
      part thereof from any point of access to the Premises, (ii) asserting that
      (A) any such zoning, certificates of occupancy, licenses, registrations,
      permits, consents and/or approvals do not permit the operation of any material
      portion of the Realty as presently being conducted, (B) any material
      improvements located on the Property or any part thereof cannot be located
      thereon or operated with their intended use or (C) the operation of the
      Property or any part thereof is in violation in any material respect of any
      Environmental Statutes, Development Laws or other Legal Requirements or Space
      Leases or Property Agreements or (iii) which might (A) affect the validity
      or
      priority of any Loan Document or (B) have a Material Adverse
      Effect.

     

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

     

    (k) Utilities.
      The
      Premises has rights of access to water, gas and/or electrical supply, storm
      and
      sanitary sewerage facilities, other required public utilities (with respect
      to
      each of the aforementioned items, by means of either a direct connection to
      the
      source of such utilities or through connections available on publicly dedicated
      roadways directly abutting the Premises or through permanent insurable easements
      benefiting the Premises), fire and police protection, parking, and means of
      direct access between the Premises and public highways over recognized curb
      cuts
      (or such access to public highways is through private roadways which may be
      used
      for ingress and egress pursuant to permanent insurable easements).

     

    (l) Mechanics’
      Liens.
      The
      Property is free and clear of any mechanics’ liens or liens in the nature
      thereof, and no rights are outstanding that under law could give rise to any
      such liens, any of which liens are or may be prior to, or equal with, the lien
      of this Security Instrument, except those which are insured against by the
      title
      insurance policy insuring the lien of this Security Instrument. No stop notices
      have been served with respect to any work, labor or materials furnished to
      or
      for the benefit of the Property or any portion thereof, and no disputes
      currently exist with respect to any of such matters.

     

    (m) Title
      Insurance.
      Lender
      has received a lenders’ commitment to issue a title insurance policy insuring
      this Security Instrument as a first lien on the Realty subject only to Permitted
      Encumbrances.

     

    (n) Insurance.
      The
      Property is insured in accordance with the requirements set forth in Article
      III
      hereof.

     

    (o) Space
      Leases.

     

    (i) Mortgagor
      has delivered a true, correct and complete schedule of all Space Leases as
      of
      the date hereof, which accurately and completely sets forth in all material
      respects, for each such Space Lease, the following (collectively, the “Rent
      Roll”): the name and address of the tenant with the lease expiration date,
      extension and renewal options; the base rent and percentage rent payable; all
      additional rent and pass through obligations; and the security deposit held
      thereunder and the location of such deposit.

     

    (ii) Each
      Space Lease constitutes the legal, valid and binding obligation of Mortgagor
      and, to the knowledge of Mortgagor, is enforceable against the tenant thereof.
      Except as set forth on the Rent Roll or
      in any
      estoppel certificate delivered to Lender,
      no
      default exists, or with the passing of time or the giving of notice would exist
      by Mortgagor or, to the best of Mortgagor’s knowledge, by any tenant at the
      Property, (A) under any Major Space Lease or (B) under any other Space Leases
      which would, in the aggregate, have a Material Adverse Effect.

     

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

     

    (iii) Except
      as
      disclosed to Lender and to the best of Mortgagor’s knowledge, no tenant under
      any Space Lease has, as of the date hereof, paid Rent more than thirty (30)
      days
      in advance, and the Rents under such Space Leases have not been waived,
      released, or otherwise discharged or compromised.

     

    (iv) Except
      as
      set forth on the Rent Roll or previously disclosed in writing to Lender, all
      material work to be performed by Mortgagor under the Space Leases has been
      substantially performed, all contributions to be made by Mortgagor to the
      tenants thereunder have been made except for any held-back amounts, and all
      other conditions precedent to each such tenant’s obligations thereunder have
      been satisfied.

     

    (v) Except
      as
      previously disclosed to Lender in writing or in the Space Leases provided to
      Lender, there are no options to terminate any Space Lease.

     

    (vi) Except
      as
      previously disclosed in writing to Lender, each tenant under a Major Space
      Lease
      has entered into occupancy of the demised premises to the extent required under
      the terms of its Major Space Lease, and each such tenant is open and conducting
      business with the public in the demised premises. Except as previously disclosed
      in writing to Lender, to the best knowledge of Mortgagor, after due inquiry,
      each tenant under a Lease other than a Major Space Lease has entered into
      occupancy of its demised premises under its Lease to the extent required under
      the terms of its Lease and each such tenant is open and conducting business
      with
      the public in the demised premises.

     

    (vii) Mortgagor
      has delivered to Lender true, correct and complete copies of all Space Leases
      described in the Rent Roll.

     

    (viii) Each
      Space Lease is in full force and effect and (except as disclosed on the Rent
      Roll or in any estoppel certificate delivered to Lender) has not been assigned,
      modified, supplemented or amended in any way.

     

    (ix) Except
      as
      set forth on the Rent Roll, each tenant under each Space Lease is free from
      bankruptcy, reorganization or arrangement proceedings or a general assignment
      for the benefit of creditors.

     

    (x) No
      Space
      Lease provides any party with the right to obtain a lien or encumbrance upon
      the
      Property superior to the lien of this Security Instrument or to subject to
      the
      Property to any mechanics lien. 

     

    (p) Property
      Agreements.

     

    (i) Mortgagor
      has delivered to Lender true, correct and complete copies of all Property
      Agreements.

     

    (ii) No
      Property Agreement provides any party with the right to obtain a lien or
      encumbrance upon the Property superior to the lien of this Security
      Instrument.

     

    
      
        
        

      

      
        -38-

        
          

        

      

      
        
        

      

    

     

    (iii) To
      the
      best of Mortgagor’s knowledge, no default exists or with the passing of time or
      the giving of notice or both would exist under any Property Agreement which
      would, individually or in the aggregate, have a Material Adverse
      Effect.

     

    (iv) Mortgagor
      has not received or given any written communication which alleges that a default
      exists or, with the giving of notice or the lapse of time, or both, would exist
      under the provisions of any Property Agreement.

     

    (v) No
      condition exists whereby Mortgagor or any future owner of the Property may
      be
      required to purchase any other parcel of land which is subject to any Property
      Agreement or which gives any Person a right to purchase, or right of first
      refusal with respect to, the Property.

     

    (vi) To
      the
      best knowledge of Mortgagor, no offset or any right of offset exists respecting
      continued contributions to be made by any party to any Property Agreement except
      as expressly set forth therein. Except as previously disclosed to Lender in
      writing, no material exclusions or restrictions on the utilization, leasing
      or
      improvement of the Property (including non-compete agreements) exists in any
      Property Agreement.

     

    (vii) All
      “pre-opening” requirements contained in all Property Agreements (including, but
      not limited to, all off-site and on-site construction requirements), if any,
      have been fulfilled, and, to the best of Mortgagor’s knowledge, no condition now
      exists whereby any party to any such Property Agreement could refuse to honor
      its obligations thereunder.

     

    (viii) Except
      as
      previously disclosed in writing to Lender, all work, if any, to be performed
      by
      Mortgagor under each of the Property Agreements has been substantially
      performed, all contributions to be made by Mortgagor to any party to such
      Property Agreements have been made, and all other material conditions to such
      party’s obligations thereunder have been satisfied.

     

    (q) Personal
      Property.
      Mortgagor has delivered to Lender a true, correct and complete schedule of
      all
      personal property, if any, owned by Mortgagor and located upon the Realty or
      used in connection with the use or operation of the Realty and Mortgagor
      represents that it has good and marketable title to all such personal property,
      free and clear of any liens or security interests, except for liens and security
      interests created under the Loan Documents, liens and security interests
      otherwise disclosed to Lender in writing and disclosed in the title insurance
      policy insuring the lien of this Security Instrument, and liens and security
      interests which describe the equipment and other personal property owned by
      tenants.

     

    (r) Leasing
      Brokerage and Management Fees.
      Except
      as previously disclosed to Lender in writing, there are no brokerage fees or
      commissions payable by Mortgagor with respect to the leasing of space at the
      Property and there are no management fees payable by Mortgagor with respect
      to
      the management of the Property.

     

    (s) Security
      Deposits.
      All
      security deposits with respect to the Property on the date hereof have been
      transferred to the Security Deposit Account on the date hereof, and Mortgagor
      is
      in compliance with all Legal Requirements relating to such security deposits
      as
      to which failure to comply might, individually or in the aggregate, have a
      Material Adverse Effect. 

     

    
      
        
        

      

      
        -39-

        
          

        

      

      
        
        

      

    

     

    (t) Appraisal.
      Mortgagor has no knowledge that any of the facts or assumptions on which the
      Appraisal was based are false or incomplete in any material respect and has
      no
      information that would reasonably suggest that the fair market value determined
      in the Appraisal does not reflect the actual fair market value of the
      Property.

     

    (u) Representations
      Generally.
      No
      representation, warranty or statement of fact made by or on behalf of Mortgagor
      in this Security Instrument or in any certificate, document or schedule
      furnished to Lender pursuant hereto, contains any untrue statement of a material
      fact or omits to state any material fact necessary to make statements contained
      therein or herein not misleading (which may be to Mortgagor’s best knowledge
      where so provided herein). There are no facts presently known to Mortgagor
      which
      have not been disclosed to Lender which would, individually or in the aggregate,
      have a Material Adverse Effect nor as far as Mortgagor can foresee might,
      individually or in the aggregate, have a Material Adverse Effect.

     

    Section
      2.06. Removal
      of Lien. (a)
      Mortgagor shall, at its expense, maintain this Security Instrument as a first
      lien on the Property and shall keep the Property free and clear of all liens
      and
      encumbrances of any kind and nature other than the Permitted Encumbrances.
      Mortgagor shall, within thirty (30) days following receipt of notice of the
      filing thereof, promptly discharge of record, by bond or otherwise, any such
      liens and, promptly upon request by Lender, shall deliver to Lender evidence
      reasonably satisfactory to Lender of the discharge thereof. 

     

    (b) Without
      limitation to the provisions of Section 2.06(a) hereof, Mortgagor shall (i)
      pay,
      from time to time when the same shall become due, all claims and demands of
      mechanics, materialmen, laborers, and others which, if unpaid, might result
      in,
      or permit the creation of, a lien on the Property or any part thereof, (ii)
      cause to be removed of record (by payment or posting of bond or settlement
      or
      otherwise) any mechanics’, materialmens’, laborers’ or other lien on the
      Property, or any part thereof, or on the revenues, rents, issues, income or
      profit arising therefrom, and (iii) in general, do or cause to be done, without
      expense to Lender, everything reasonably necessary to preserve in full the
      lien
      of this Security Instrument. If Mortgagor fails to comply with the requirements
      of this Section 2.06(b), then, upon ten (10) Business Days’ prior notice to
      Mortgagor, Lender may, but shall not be obligated to, pay any such lien, and
      Mortgagor shall, within ten (10) Business Days after Lender’s demand therefor,
      reimburse Lender for all sums so expended, together with interest thereon at
      the
      Default Rate from the date advanced, all of which shall be deemed part of the
      Debt. Nothing contained herein shall be deemed a consent or request of Lender,
      express or implied, by inference or otherwise, to the performance of any
      alteration, repair or other work by any contractor, subcontractor or laborer
      or
      the furnishing of any materials by any materialmen in connection
      therewith.

     

    (c) Notwithstanding
      the foregoing, Mortgagor may contest any lien (other than a lien relating to
      non-payment of Impositions, the contest of which shall be governed by Section
      4.04 hereof) of the type set forth in subparagraph (b)(ii) of this Section
      2.06
      provided that, following prior notice to Lender (i) Mortgagor is contesting
      the
      validity of such lien with due diligence and in good faith and by appropriate
      proceedings, without cost or expense to Lender or any of its agents, employees,
      officers, or directors, (ii) Mortgagor shall preclude the collection of, or
      other realization upon, any contested amount from the Property or any revenues
      from or interest in the Property, (iii) neither the Property nor any part
      thereof nor interest therein, shall be in any danger of being sold, forfeited
      or
      lost by reason of such contest by Mortgagor, (iv) such contest by Mortgagor
      shall not affect the ownership, use or occupancy of the Property, (v) such
      contest by Mortgagor shall not subject Lender or Mortgagor to the risk of civil
      or criminal liability (other than the civil liability of Mortgagor for the
      amount of the lien in question), (vi) such lien is subordinate to the lien
      of
      this Security Instrument, (vii) Mortgagor has not consented to such lien, (viii)
      Mortgagor has given Lender prompt notice of the filing of such lien and, upon
      request by Lender from time to time, notice of the status of such contest by
      Mortgagor and/or confirmation of the continuing satisfaction of the conditions
      set forth in this Section 2.06(c), (ix) Mortgagor shall promptly pay the
      obligation secured by such lien upon a final determination of Mortgagor’s
      liability therefor, and (x) Mortgagor shall deliver written notice of its intent
      to contest such lien at least thirty (30) days before commencing such contest
      and also shall deliver to Lender, if requested by Lender, cash, a bond or other
      security acceptable to Lender equal to 125% of the contested amount pursuant
      to
      collateral arrangements reasonably satisfactory to Lender. 

     

    
      
        
        

      

      
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    Section
      2.07. Cost
      of Defending and Upholding this Security Instrument Lien.
      If any
      action or proceeding is commenced to which Lender is made a party relating
      to
      the Loan Documents and/or the Property or Lender’s interest therein or in which
      it becomes necessary to defend or uphold the lien of this Security Instrument
      or
      any other Loan Document, Mortgagor shall, on demand, reimburse Lender for all
      expenses (including, without limitation, reasonable attorneys’ fees and
      disbursements) incurred by Lender in connection therewith, and such sum,
      together with interest thereon at the Default Rate from and after such demand
      until fully paid, shall constitute a part of the Debt.

     

    Section
      2.08. Use
      of
      the Property.
      Mortgagor will use, or cause to be used, the Property for such use as is
      permitted pursuant to applicable Legal Requirements including, without
      limitation, under the certificate of occupancy applicable to the Property,
      and
      which is required by the Loan Documents. Mortgagor shall not suffer or permit
      the Property or any portion thereof to be used by the public, any tenant, or
      any
      Person not subject to a Lease, in a manner as is reasonably likely to impair
      Mortgagor’s title to the Property, or in such manner as may give rise to a claim
      or claims of adverse usage or adverse possession by the public, or of implied
      dedication of the Property or any part thereof.

     

    Section
      2.09. Financial
      Reports.
      (a)
      Mortgagor
      will keep and maintain or will cause to be kept and maintained on a Fiscal
      Year
      basis, in accordance with GAAP (or such other accounting basis reasonably
      acceptable to Lender) consistently applied, proper and accurate books, tax
      returns, records and accounts reflecting (i) all of the financial affairs
      of Mortgagor and (ii) all items of income and expense in connection with the
      operation of the Property or in connection with any services, equipment or
      furnishings provided in connection with the operation thereof, whether such
      income or expense may be realized by Mortgagor or by any other Person
      whatsoever, excepting lessees unrelated to and unaffiliated with Mortgagor
      who
      have leased from Mortgagor portions of the Premises for the purpose of occupying
      the same. Lender shall have the right from time to time at all times during
      normal business hours upon reasonable advance notice to examine such books,
      tax
      returns, records and accounts at the office of Mortgagor or other Person
      maintaining such books, tax returns, records and accounts and to make such
      copies or extracts thereof as Lender shall desire. During the continuance of
      an
      Event of Default, Mortgagor shall pay any costs and expenses incurred by Lender
      to examine Mortgagor’s and Guarantor’s accounting records with respect to the
      Property, as Lender shall determine to be necessary or appropriate in the
      protection of Lender’s interest.

     

    
      
        
        

      

      
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    (b) Mortgagor
      will furnish Lender (i) annually, within one hundred twenty (120) days following
      the end of each Fiscal Year of Mortgagor and (ii) on a quarterly basis, within
      thirty (30) days following the end of each fiscal quarter of Mortgagor, with
      a
      complete copy of Mortgagor’s financial statement consistently applied covering
      (A) all of the financial affairs of Mortgagor and (B) the operation of the
      Property for such Fiscal Year or fiscal quarters, as applicable, and containing
      a statement of revenues and expenses, a statement of assets and liabilities
      and
      a statement of Mortgagor’s equity. Each annual financial statement shall be
      prepared by an Independent certified public accountant that is reasonably
      acceptable to Lender in accordance with GAAP (or such other accounting basis
      reasonably acceptable to Lender). Upon request made in connection with a
      Securitization of the Loan or after the occurrence of an Event of Default,
      such
      annual financial statements shall be audited by an Independent certified public
      accountant that is reasonably acceptable to Lender in accordance with GAAP.
      Together with the financial statements required to be furnished pursuant to
      this
      Section 2.09(b), Mortgagor shall furnish to Lender (A) an Officer’s Certificate
      certifying as of the date thereof (1) that the financial statements accurately
      represent the results of operations and financial condition of Mortgagor and
      the
      Property all in accordance with GAAP (or such other accounting basis reasonably
      acceptable to Lender) consistently applied, and (2) whether, to the best of
      such officer’s knowledge, there exists a Default under the Note or any other
      Loan Document executed and delivered by Mortgagor, and if such event or
      circumstance exists, the nature thereof, the period of time it has existed
      and
      the action then being taken to remedy such event or circumstance and (B)
      together with the financial statements delivered pursuant to Section 2.09(b)(ii)
      above, a statement showing (1) Pro-Forma Net Operating Income at the end of
      the
      most recent fiscal quarter (subject to verification by Lender in its reasonable
      discretion) and (2) the calculation of Debt Service Coverage.

     

    (c) Mortgagor
      will furnish Lender monthly, within twenty (20) days following the end of each
      month, with (i) a true, complete and correct cash flow statement with respect
      to
      the Property in the form attached hereto as Exhibit C and made a part hereof,
      showing (A) all cash receipts of any kind whatsoever and all cash payments
      and
      disbursements, (B) year-to-date summaries of such cash receipts, payments
      and disbursements, and (C) during an O&M Operative Period, Pro Forma Net
      Operating Income (subject to the verification by Lender) and a calculation
      of
      Debt Service Coverage, (ii) a certification of Manager stating that such cash
      flow statement is true, complete and correct and a list of all litigation and
      proceedings affecting Mortgagor or the Property in which the amount involved
      is
      $250,000 or more, if not covered by insurance (or $2,500,000 or more whether
      or
      not covered by insurance), (iii) the sales per square foot for each lessee
      under
      the Space Leases to the extent such information is required to be delivered
      by
      such lessees and (iv) an occupancy report for the Property.

     

    (d) Mortgagor
      will furnish Lender monthly, within twenty (20) days following the end of each
      month, with a certification of Manager stating that all Operating Expenses
      with
      respect to the Property which had accrued as of the last day of the month
      preceding the delivery of the cash flow statement referred to in clause (c)
      above have been fully paid or otherwise reserved for by Manager (any such
      certification or any certification furnished by a Manager pursuant to clause
      (c)
      above, a “Manager
      Certification”).

     

    
      
        
        

      

      
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    (e) Mortgagor
      will furnish Lender annually, within twenty (20) days following the end of
      each
      year and within twenty (20) days following receipt of such request therefor,
      with a true, complete and correct rent roll for the Property, including a list
      of which tenants are in default under their respective Leases, dated as of
      the
      date of Lender’s request, identifying each tenant, the monthly rent and
      additional rent, if any, payable by such tenant, the expiration date of such
      tenant’s Lease, the security deposit, if any, held by Mortgagor under the Lease,
      the space covered by the Lease, each tenant that has filed a bankruptcy,
      insolvency, or reorganization proceeding since delivery of the last such rent
      roll, the sales per square foot of each tenant, to the extent reported by
      tenants under the terms of the Leases and the arrearages for such tenant, if
      any, and such rent roll shall be accompanied by an Officer’s Certificate, dated
      as of the date of the delivery of such rent roll, certifying that such rent
      roll
      is true, correct and complete in all material respects as of its date and a
      copy
      of each Space Lease entered into during the prior month.

     

    (f) Mortgagor
      shall furnish to Lender, within thirty (30) days after Lender’s request
      therefor, with such further detailed information with respect to the operation
      of the Property and the financial affairs of Mortgagor as may be reasonably
      requested by Lender.

     

    (g) Mortgagor
      shall cause Manager to furnish to Lender, within twenty (20) days following
      the
      end of each month, a schedule of tenant security deposits showing any activity
      in the Security Deposit Account for such month, together with a certification
      of
      Manager as to the balance in such Security Deposit Account and that such tenant
      security deposits are being held in accordance with all Legal
      Requirements.

     

    (h) Mortgagor
      will furnish Lender annually, within ninety (90) days after the end of each
      Fiscal Year, with a report setting forth (i) the Net Operating Income for such
      Fiscal Year, (ii) the average occupancy rate of the Property during such
      Fiscal Year, and (iii) the capital repairs, replacements and improvements
      performed at the Property during such Fiscal Year and the aggregate Recurring
      Replacement Expenditures made in connection therewith.

     

    (i) Mortgagor
      shall furnish to Lender annually, within thirty (30) days of filing its
      respective tax return, a copy of such tax return and either a copy of the tax
      return of Guarantor within such thirty (30) day period or within ninety (90)
      days after the end of each Fiscal Year, a certificate from an Independent
      certified public accountant indicating the net worth of the
      Guarantor.

     

    (j) Mortgagor
      shall submit to Lender for Lender’s written approval an Annual Budget not later
      than sixty (60) days prior to the commencement of each Fiscal Year or, with
      respect to the Fiscal Year in which the Closing Date occurs, within sixty (60)
      days of the Closing Date, in form satisfactory to Lender setting forth in
      reasonable detail budgeted monthly operating income and monthly operating
      capital and other expenses for the Property. Each Annual Budget shall contain,
      among other things, limitations on management fees, third party service fees,
      and other expenses as Mortgagor may reasonably determine. Lender shall have
      the
      right to approve such Annual Budget which approval shall not be unreasonably
      withheld, and in the event that Lender objects to the proposed Annual Budget
      submitted by Mortgagor, Lender shall advise Mortgagor of such objections within
      ten (10) Business Days after receipt thereof (and deliver to Mortgagor a
      reasonably detailed description of such objections) and Mortgagor shall, within
      four (4) Business Days after receipt of notice of any such objections, revise
      such Annual Budget and resubmit the same to Lender. Lender shall advise
      Mortgagor of any objections to such revised Annual Budget within seven (7)
      Business Days after receipt thereof (and deliver to Mortgagor a reasonably
      detailed description of such objections) and Mortgagor shall revise the same
      in
      accordance with the process described herein until Lender approves an Annual
      Budget, provided, however, that if Lender shall not advise Mortgagor of its
      objections to any proposed Annual Budget within the applicable time period
      set
      forth in this Section, then such proposed Annual Budget shall be deemed approved
      by Lender. Until such time that Lender approves a proposed Annual Budget, the
      most recently Approved Annual Budget shall apply; provided that, such Approved
      Annual Budget shall be adjusted to reflect actual increases in Basic Carrying
      Costs and utilities expenses. In the event that Mortgagor must incur an
      Extraordinary Expense, then Mortgagor shall promptly deliver to Lender a
      reasonably detailed explanation of such proposed Extraordinary Expense for
      Lender’s approval, which approval may be granted or denied in Lender’s
      reasonable discretion; provided, however, so long as no O&M Operative Period
      is then in existence, no approval from Lender shall be required if (i) a single
      Extraordinary Expense is equal to or less than five percent (5%) of the amount
      set forth in the Approved Annual Budget for expenses related to such
      Extraordinary Expense, or (ii) if no sum was budgeted for such expense in the
      Approved Annual Budget, the Extraordinary Expense is less than or equal to
      five
      percent (5%) of the Approved Annual Budget, provided that all Extraordinary
      Expenses in any Fiscal Year do not exceed five percent (5%) of the Approved
      Annual Budget. The Approved Annual Budget shall be prepared for the Property
      as
      well as for all of the Cross-collateralized Properties.

     

    
      
        
        

      

      
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    (k) In
      the
      event that Mortgagor fails to deliver any of the financial statements, reports
      or other information required to be delivered to Lender pursuant to this Section
      2.09 on or prior to their due dates, if any such failure shall continue for
      fifteen (15) days following notice thereof from Lender, without waiving any
      default arising out of such failure, Mortgagor shall pay to Lender on each
      Payment Date for each month or portion thereof that any such financial
      statement, report or other information remains undelivered, an administrative
      fee in the amount of Two Thousand Five Hundred Dollars ($2,500) and (ii) if
      Mortgagor has not delivered any such reports within five (5) Business Days
      of
      Lender’s giving an additional notice to Mortgagor requesting the missing
      financial statement, report or other information, an O&M Operative Period
      shall be deemed to have commenced. Mortgagor agrees that such administrative
      fee
      (i) is a fair and reasonable fee necessary to compensate Lender for its
      additional administrative costs and increased costs relating to Mortgagor’s
      failure to deliver the aforementioned statements, reports or other items as
      and
      when required hereunder and (ii) is not a penalty.

     

    Section
      2.10. Litigation.
      Mortgagor will give prompt written notice to Lender of any litigation or
      governmental proceedings pending or threatened (in writing) against Mortgagor
      which might have a Material Adverse Effect.

     

    
      
        
        

      

      
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    Section
      2.11. Updates
      of Representations.
      Mortgagor shall deliver to Lender within ten (10) Business Days of the request
      of Lender an Officer’s Certificate updating all of the representations and
      warranties contained in this Security Instrument and the other Loan Documents
      and certifying that all of the representations and warranties contained in
      this
      Security Instrument and the other Loan Documents, as updated pursuant to such
      Officer’s Certificate, are true, accurate and complete as of the date of such
      Officer’s Certificate or shall set forth the exceptions to representations
      and/or warranties in reasonable detail, as applicable, and, upon Lender’s
      request for further information with respect to such exceptions, shall provide
      Lender such additional information as Lender may reasonably request.
      Notwithstanding the foregoing, provided that no Event of Default has occurred
      and is continuing, Mortgagor shall not be required to deliver the foregoing
      Officer’s Certificate more than two (2) times in any Loan Year. 

     

    ARTICLE
      III:   INSURANCE
      AND CASUALTY RESTORATION

     

    Section
      3.01. Insurance
      Coverage.
      Mortgagor shall, at its expense, maintain the following insurance coverages
      with
      respect to the Property during the term of this Security
      Instrument:

     

    (a) (i) Insurance
      against loss or damage by fire, casualty and other hazards included in an
“all-risk” coverage endorsement or its equivalent, with such endorsements as
      Lender may from time to time reasonably require and which are customarily
      required by Institutional Lenders of similar properties similarly situated,
      including, without limitation, if the Property constitutes a legal
      non-conforming use, an ordinance of law coverage endorsement which contains
      “Demolition Cost”, “Loss Due to Operation of Law” and “Increased Cost of
      Construction” coverages, covering the Property in an amount not less than the
      greater of (A) 100% of the insurable replacement value of the Property
      (exclusive of the Premises and footings and foundations) and (B) such other
      amount as is necessary to prevent any reduction in such policy by reason of
      and
      to prevent Mortgagor, Lender or any other insured thereunder from being deemed
      to be a co-insurer. Not less frequently than once every three (3) years,
      Mortgagor, at its option, shall either (A) have the Appraisal updated or obtain
      a new appraisal of the Property, (B) have a valuation of the Property made
      by or
      for its insurance carrier conducted by an appraiser experienced in valuing
      properties of similar type to that of the Property which are in the geographical
      area in which the Property is located or (C) provide such other evidence as
      will, in Lender’s sole judgment, enable Lender to determine whether there shall
      have been an increase in the insurable value of the Property and Mortgagor
      shall
      deliver such updated Appraisal, new appraisal, insurance valuation or other
      evidence acceptable to Lender, as the case may be, and, if such updated
      Appraisal, new appraisal, insurance valuation, or other evidence acceptable
      to
      Lender reflects an increase in the insurable value of the Property, the amount
      of insurance required hereunder shall be increased accordingly and Mortgagor
      shall deliver evidence satisfactory to Lender that such policy has been so
      increased.

     

    (ii) Commercial
      general liability insurance against claims for personal and bodily injury and/or
      death to one or more persons or property damage, occurring on, in or about
      the
      Property (including the adjoining streets, sidewalks and passageways therein)
      in
      such amounts as Lender may from time to time reasonably require (but in no
      event
      shall Lender’s requirements be increased more frequently than once during each
      twelve (12) month period) and which are customarily required by Institutional
      Lenders for similar properties similarly situated, but not less than $1,000,000
      per occurrence and $2,000,000 general aggregate on a per location basis and,
      in
      addition thereto, not less than $75,000,000 excess and/or umbrella liability
      insurance shall be maintained for any and all claims. 

     

    
      
        
        

      

      
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    (iii) Business
      interruption, rent loss or other similar insurance (A) with loss payable to
      Lender, (B) covering all risks required to be covered by the insurance provided
      for in Section 3.01(a)(i) hereof and (C) in an amount not less than 90% of
      the
      projected fixed or base rent plus percentage rent for the succeeding eighteen
      (18) month period based on an occupancy rate of 100%. Such insurance coverage
      shall provide for a six (6) month extended period of indemnity. The amount
      of
      such insurance shall be determined upon the execution of this Security
      Instrument, and not more frequently than once each calendar year thereafter
      based on Mortgagor’s reasonable estimate of projected fixed or base rent plus
      percentage rent, from the Property for the next succeeding eighteen (18) months.
      In the event the Property shall be damaged or destroyed, Mortgagor shall and
      hereby does assign to Lender all payment of claims under the policies of such
      insurance, and all amounts payable thereunder, and all net amounts, shall be
      collected by Lender under such policies and shall be applied in accordance
      with
      this Security Instrument; provided, however, that nothing herein contained
      shall
      be deemed to relieve Mortgagor of its obligations to timely pay all amounts
      due
      under the Loan Documents.

     

    (iv) Intentionally
      Deleted.

     

    (v) Insurance
      against loss or damages from (A) leakage of sprinkler systems and (B) explosion
      of steam boilers, air conditioning equipment, pressure vessels or similar
      apparatus now or hereafter installed at the Property, in such amounts as Lender
      may from time to time reasonably require and which are then customarily required
      by Institutional Lenders of similar properties similarly situated.

     

    (vi) Flood
      insurance in an amount equal to the full insurable value of the Property or
      the
      maximum amount available, whichever is less, if the Improvements are located
      in
      an area designated by the Secretary of Housing and Urban Development as being
      “an area of special flood hazard” under the National Flood Insurance Program
      (i.e.,
      having
      a one percent or greater chance of flooding), and if flood insurance is
      available under the National Flood Insurance Act.

     

    (vii) Worker’s
      compensation insurance or other similar insurance which may be required by
      Governmental Authorities or Legal Requirements.

     

    (viii) Intentionally
      Deleted.

     

    (ix) Insurance
      against damage resulting from acts of terrorism, or an insurance policy without
      an exclusion for damages resulting from terrorism, on terms consistent with
      the
      commercial property insurance policy required under subsections (i), (ii) and
      (iii) above.

     

    
      
        
        

      

      
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    (x) Such
      other insurance as may from time to time be required by Lender and which is
      then
      customarily required by Institutional Lenders for similar properties similarly
      situated, against other insurable hazards, including, but not limited to,
      malicious mischief, vandalism, mold, spores or fungus, sinkhole and mine
      subsidence, acts of terrorism, windstorm and/or earthquake, due regard to be
      given to the size and type of the Premises, Improvements, Fixtures and Equipment
      and their location, construction and use. Additionally, Mortgagor shall carry
      such insurance coverage as Lender may from time to time require if the failure
      to carry such insurance may result in a downgrade, qualification or withdrawal
      of any class of securities issued in connection with a Securitization or, if
      the
      Loan is not yet part of a Securitization, would result in an increase in the
      subordination levels of any class of securities anticipated to be issued in
      connection with a proposed Securitization.

     

    (b) Mortgagor
      shall cause any Manager of the Property to maintain fidelity insurance in an
      amount equal to $5,000,000 or such lesser amount as Lender shall
      approve.

     

    Section
      3.02. Policy
      Terms.
      (a)
All
      insurance required by this Article III shall be in the form (other than with
      respect to Sections 3.01(a)(vi) and (vii) above when insurance in those two
      sub-sections is placed with a governmental agency or instrumentality on such
      agency’s forms) and amount and with deductibles as, from time to time, shall be
      reasonably acceptable to Lender, under valid and enforceable policies issued
      by
      financially responsible insurers authorized to do business in the State where
      the Property is located, with a general policyholder’s service rating of not
      less than A- and a financial rating of not less than X as rated in the most
      currently available Best’s Insurance Reports (or the equivalent, if such rating
      system shall hereafter be altered or replaced) and shall have a claims paying
      ability rating and/or financial strength rating, as applicable, of not less
      than
“AA” (or its equivalent), or such lower claims paying ability rating and/or
      financial strength rating, as applicable, as Lender shall, in its sole and
      absolute discretion, consent to, from a Rating Agency (one of which after a
      Securitization in which Standard & Poor’s rates any securities issued in
      connection with such Securitization, shall be Standard & Poor’s). Originals
      or certified copies of all insurance policies shall be delivered to and held
      by
      Lender. All such policies (except policies for worker’s compensation) shall name
      Lender, its successors and/or assigns as an additional named insured, shall
      provide for loss payable to Lender, its successors and/or assigns and shall
      contain (or have attached): (i) standard “non-contributory mortgagee”
endorsement or its equivalent relating, inter alia,
      to
      recovery by Lender notwithstanding the negligent or willful acts or omissions
      of
      Mortgagor; (ii) a waiver of subrogation endorsement as to Lender; (iii) an
      endorsement indicating that neither Lender nor Mortgagor shall be or be deemed
      to be a co-insurer with respect to any casualty risk insured by such policies
      and shall provide for a deductible per loss of an amount not more than the
      lesser of (x) that which is customarily maintained by owners of similar
      properties similarly situated and (y) five percent (5%) of the Adjusted Net
      Cash
      Flow, and (iv) a provision that such policies shall not be canceled, terminated,
      denied renewal or amended, including, without limitation, any amendment reducing
      the scope or limits of coverage, without at least thirty (30) days’ prior
      written notice to Lender in each instance. Not less than thirty (30) days prior
      to the expiration dates of the insurance policies obtained pursuant to this
      Security Instrument, originals or certified copies of renewals of such policies
      (or certificates evidencing such renewals) bearing notations evidencing the
      payment of premiums or accompanied by other reasonable evidence of such payment
      (which premiums shall not be paid by Mortgagor through or by any financing
      arrangement which would entitle an insurer to terminate a policy) shall be
      delivered by Mortgagor to Lender. Mortgagor shall not carry separate insurance,
      concurrent in kind or form or contributing in the event of loss, with any
      insurance required under this Article III.

     

    
      
        
        

      

      
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    (b) If
      Mortgagor fails to maintain and deliver to Lender the original policies or
      certificates of insurance required by this Security Instrument, or if there
      are
      insufficient funds in the Basic Carrying Costs Escrow Account to pay the
      premiums for same, Lender may, at its option, procure such insurance, and
      Mortgagor shall pay, or as the case may be, reimburse Lender for, all premiums
      thereon promptly, upon demand by Lender, with interest thereon at the Default
      Rate from the date paid by Lender to the date of repayment and such sum shall
      constitute a part of the Debt.

     

    (c) Mortgagor
      shall notify Lender of the renewal premium of each insurance policy and Lender
      shall be entitled to pay such amount on behalf of Mortgagor from the Basic
      Carrying Costs Escrow Account. With respect to insurance policies which require
      periodic payments (i.e., monthly or quarterly) of premiums, Lender shall be
      entitled to pay such amounts fifteen (15) days (or such lesser number of days
      as
      Lender shall determine) prior to the respective due dates of such
      installments.

     

    (d) The
      insurance required by this Security Instrument may, at the option of Mortgagor,
      be effected by blanket and/or umbrella policies issued to Mortgagor covering
      the
      Property provided that, in each case, the policies otherwise comply with the
      provisions of this Security Instrument and allocate to the Property, from time
      to time (but in no event less than once a year), the coverage specified by
      this
      Security Instrument, without possibility of reduction or coinsurance by reason
      of, or damage to, any other property (real or personal) named therein. If the
      insurance required by this Security Instrument shall be effected by any such
      blanket or umbrella policies, Mortgagor shall furnish to Lender (i) original
      policies or certified copies thereof, or an original certificate of insurance
      together with reasonable access to the original of such policy to review such
      policy’s coverage of the Property, with schedules attached thereto showing the
      amount of the insurance provided under such policies applicable to the Property
      and (ii) an Officer’s Certificate setting forth (A) the number of properties
      covered by such policy, (B) the location by city (if available, otherwise,
      county) and state of the properties, (C) the average square footage of the
      properties, (D) a brief description of the typical construction type included
      in
      the blanket policy and (E) such other information as Lender may reasonably
      request.

     

    Section
      3.03. Assignment
      of Policies.
      (a)
Mortgagor
      hereby assigns to Lender the proceeds of all insurance (other than worker’s
      compensation and liability insurance) obtained pursuant to this Security
      Instrument, all of which proceeds shall be payable to Lender as collateral
      and
      further security for the payment of the Debt and the performance of the
      Mortgagors’ obligations hereunder and under the other Loan Documents, and
      Mortgagor hereby authorizes and directs the issuer of any such insurance to
      make
      payment of such proceeds directly to Lender. Except as otherwise expressly
      provided in Section 3.04 or elsewhere in this Article III, Lender shall have
      the
      option, in its discretion, and without regard to the adequacy of its security,
      to apply all or any part of the proceeds it may receive pursuant to this Article
      in such manner as Lender may elect to any one or more of the following: (i)
      the
      payment of the Debt, whether or not then due, in any proportion or priority
      as
      Lender, in its discretion, may elect, (ii) the repair or restoration of the
      Property, (iii) the cure of any Event of Default or (iv) the reimbursement
      of
      the costs and expenses of Lender incurred pursuant to the terms hereof in
      connection with the recovery of the Insurance Proceeds. Nothing herein contained
      shall be deemed to excuse Mortgagor from repairing or maintaining the Property
      as provided in this Security Instrument or restoring all damage or destruction
      to the Property, regardless of the sufficiency of the Insurance Proceeds, and
      the application or release by Lender of any Insurance Proceeds shall not cure
      or
      waive any Default or notice of Default.

     

    
      
        
        

      

      
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    (b) In
      the
      event of the foreclosure of this Security Instrument or any other transfer
      of
      title or assignment of all or any part of the Property in extinguishment, in
      whole or in part, of the Debt, all right, title and interest of Mortgagor in
      and
      to all policies of insurance required by this Security Instrument shall inure
      to
      the benefit of the successor in interest to Mortgagor or the purchaser of the
      Property to the extent that such policies are assignable or transferable. If,
      prior to the receipt by Lender of any proceeds, the Property or any portion
      thereof shall have been sold on foreclosure of this Security Instrument or
      by
      deed in lieu thereof or otherwise, or any claim under such insurance policy
      arising during the term of this Security Instrument is not paid until after
      the
      extinguishment of the Debt, and Lender shall not have received the entire amount
      of the Debt outstanding at the time of such extinguishment, whether or not
      a
      deficiency judgment on this Security Instrument shall have been sought or
      recovered or denied, then, the proceeds of any such insurance to the extent
      of
      the amount of the Debt not so received, shall be paid to and be the property
      of
      Lender, together with interest thereon at the Default Rate, and the reasonable
      attorney’s fees, costs and disbursements incurred by Lender in connection with
      the collection of the proceeds which shall be paid to Lender and Mortgagor
      hereby assigns, transfers and sets over to Lender all of Mortgagor’s right,
      title and interest in and to such proceeds. Notwithstanding any provisions
      of
      this Security Instrument to the contrary, Lender shall not be deemed to be
      a
      trustee or other fiduciary with respect to its receipt of any such proceeds,
      which may be commingled with any other monies of Lender; provided, however,
      that
      Lender shall use such proceeds for the purposes and in the manner permitted
      by
      this Security Instrument. Any proceeds deposited with Lender shall be held
      by
      Lender in an interest-bearing account, but Lender makes no representation or
      warranty as to the rate or amount of interest, if any, which may accrue on
      such
      deposit and shall have no liability in connection therewith. Interest accrued,
      if any, on the proceeds shall be deemed to constitute a part of the proceeds
      for
      purposes of this Security Instrument. The provisions of this Section 3.03(b)
      shall survive the termination of this Security Instrument by foreclosure, deed
      in lieu thereof or otherwise as a consequence of the exercise of the rights
      and
      remedies of Lender hereunder after a Default.

     

    Section
      3.04. Casualty
      Restoration.
      (a)
      (i)
      In the
      event of any damage to or destruction of any Individual Property, Mortgagor
      shall give prompt written notice to Lender (which notice shall set forth
      Mortgagor’s good faith estimate of the cost of repairing or restoring such
      damage or destruction, or if Mortgagor cannot reasonably estimate the
      anticipated cost of restoration, Mortgagor shall nonetheless give Lender prompt
      notice of the occurrence of such damage or destruction, and will diligently
      proceed to obtain estimates to enable Mortgagor to quantify the anticipated
      cost
      and time required for such restoration, whereupon Mortgagor shall promptly
      notify Lender of such good faith estimate) and, provided that restoration does
      not violate any Legal Requirements, Mortgagor shall promptly commence and
      diligently prosecute to completion the repair, restoration or rebuilding of
      such
      Individual Property so damaged or destroyed to a condition such that such
      Individual Property shall be at least equal in value to that immediately prior
      to the damage to the extent practicable, in full compliance with all Legal
      Requirements and the provisions of all Leases, and in accordance with Section
      3.04(b) below. Such repair, restoration or rebuilding of the Property are
      sometimes hereinafter collectively referred to as the “Work”.

     

    
      
        
        

      

      
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    (ii) Notwithstanding
      the foregoing provisions of this Section 3.04, upon the occurrence of any damage
      to or destruction of the Individual Property, provided that such damage or
      destruction is not a Substantial Casualty, if in Lender’s reasonable judgment
      the cost of repair of or restoration to the Individual Property required as
      a
      result of any damage or destruction is less than $1,000,000 in the aggregate
      and
      the Work can be completed in less than one hundred eighty (180) days (but in
      no
      event beyond the date which is six (6) months prior to the Maturity Date),
      then
      Lender, shall permit Mortgagor to apply for and receive the Insurance Proceeds
      directly from the insurer (and Lender shall advise the insurer to pay over
      such
      Insurance Proceeds directly to Mortgagor), to the extent required to pay for
      any
      such Work, with any excess thereof to be retained by Mortgagor.

     

    (iii) Subject
      to Section 3.04(a)(iv), Lender shall apply any Insurance Proceeds which it
      may
      receive towards the Work in accordance with Section 3.04(b) and the other
      applicable sections of this Article III.

     

    (iv) If
      (A) an
      Event of Default shall have occurred and is continuing, (B) Lender is not
      reasonably satisfied that the Debt Service Coverage, after substantial
      completion of the Work, will be at least equal to the Required Debt Service
      Coverage, (C) more than thirty percent (30%) of the reasonably estimated fair
      market value of the applicable individual Property is damaged or destroyed,
      (D)
      Lender is not reasonably satisfied that the Work can be completed six (6) months
      prior to Maturity or (E) Lender is not reasonably satisfied that Leases covering
      at least 75% of the rentable square footage for the applicable individual
      Property (immediately prior to such damage or destruction) will not be
      terminated due to the casualty during and following the restoration, or (F)
      Lender is not reasonably satisfied that the Work can be completed within twelve
      (12) months of the damage to or destruction of the applicable individual
      Property (each, a “Substantial
      Casualty”),
      Lender shall have the option, in its sole discretion to apply any Insurance
      Proceeds it may receive pursuant to this Security Instrument (less any
      reasonable cost to Lender of recovering and paying out such proceeds incurred
      pursuant to the terms hereof and not otherwise reimbursed to Lender, including,
      without limitation, reasonable attorneys’ fees and expenses) to the payment of
      the Debt, without any prepayment fee or charge of any kind, or to allow such
      proceeds to be used for the Work pursuant to the terms and subject to the
      conditions of Section 3.04(b) hereof and the other applicable sections of this
      Article III.

     

    
      
        
        

      

      
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    (v) In
      the
      event that Lender elects or is obligated hereunder to allow Insurance Proceeds
      to be used for the Work, any excess proceeds remaining after completion of
      such
      Work shall be applied to the payment of the Debt without any prepayment fee
      or
      charge of any kind.

     

    (b) If
      any
      Condemnation Proceeds in accordance with Section 6.01(a), or any Insurance
      Proceeds in accordance with Section 3.04(a), are to be applied to the repair,
      restoration or rebuilding of the Individual Property, then such proceeds shall
      be deposited into a segregated interest-bearing bank account at the Bank, which
      shall be an Eligible Account, held by Lender and shall be paid out from time
      to
      time to Mortgagor as the Work progresses (less any reasonable cost to Lender
      of
      recovering and paying out such proceeds, including, without limitation,
      reasonable attorneys’ fees and costs allocable to inspecting the Work and the
      plans and specifications therefor), subject to Section 5.13 hereof and to all
      of
      the following conditions:

     

    (i) An
      Independent architect or engineer selected by Mortgagor and reasonably
      acceptable to Lender (an “Architect”
or
      “Engineer”)
      or a
      Person otherwise reasonably acceptable to Lender, shall have delivered to Lender
      a certificate estimating the cost of completing the Work, and, if the amount
      set
      forth therein is more than the sum of the amount of Insurance Proceeds then
      being held by Lender in connection with a casualty and amounts agreed to be
      paid
      as part of a final settlement under the insurance policy upon or before
      completion of the Work, Mortgagor shall have delivered to Lender (A) cash
      collateral in an amount equal to such excess, or (B) an unconditional,
      irrevocable, clean sight draft letter of credit, in form, substance and issued
      by a bank reasonably acceptable to Lender, in the amount of such excess and
      draws on such letter of credit shall be made by Lender to make payments pursuant
      to this Article III following exhaustion of the Insurance Proceeds therefor
      or
      (C) a completion bond in form, substance and issued by a surety company
      reasonably acceptable to Lender.

     

    (ii) If
      the
      cost of the Work is reasonably estimated by an Architect or Engineer in a
      certification reasonably acceptable to Lender to be equal to or exceed five
      percent (5%) of the Allocated Loan Amount for the Property, such Work shall
      be
      performed under the supervision of an Architect or Engineer, it being understood
      that the plans and specifications with respect thereto shall provide for Work
      so
      that, upon completion thereof, the Property shall be at least equal in
      replacement value and general utility to the Individual Property prior to the
      damage or destruction.

     

    (iii) Each
      request for payment shall be made on not less than ten (10) days’ prior notice
      to Lender and shall be accompanied by a certificate of an Architect or Engineer,
      or, if the Work is not required to be supervised by an Architect or Engineer,
      by
      an Officer’s Certificate stating (A) that payment is for Work completed or
      materials delivered in compliance with the plans and specifications, if required
      under clause (ii) above, (B) that the sum requested is required to reimburse
      Mortgagor for payments by Mortgagor to date, or is due to the contractors,
      subcontractors, materialmen, laborers, engineers, architects or other Persons
      rendering services or materials for the Work (giving a brief description of
      such
      services and materials), and that when added to all sums previously paid out
      by
      Lender does not exceed the value of the Work done to the date of such
      certificate, (C) if the sum requested is to cover payment relating to repair
      and
      restoration of personal property required or relating to the applicable
      Property, that title to the personal property items covered by the request
      for
      payment is vested in Mortgagor (unless Mortgagor is lessee of such personal
      property), and (D) that the Insurance Proceeds and other amounts deposited
      by
      Mortgagor held by Lender after such payment is equal to or more than the
      estimated remaining cost to complete such Work; provided, however, that if
      such
      certificate is given by an Architect or Engineer, such Architect or Engineer
      shall certify as to clause (A) above, and such Officer’s Certificate shall
      certify as to the remaining clauses above, and provided, further, that Lender
      shall not be obligated to disburse such funds if Lender determines, in Lender’s
      reasonable discretion, that Mortgagor shall not be in compliance with this
      Section 3.04(b). Additionally, each request for payment shall contain a
      statement signed by Mortgagor stating that the requested payment is for Work
      satisfactorily done to date or for materials for the Work.

     

    
      
        
        

      

      
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    (iv) Each
      request for payment shall be accompanied by waivers of lien, in customary form
      and substance, covering that part of the Work for which payment or reimbursement
      is being requested and, if required by Lender, a search prepared by a title
      company or licensed abstractor, or by other evidence satisfactory to Lender
      that
      there has not been filed with respect to the applicable Individual Property
      any
      mechanic’s or other lien or instrument for retention of title relating to any
      part of the Work not discharged of record. Additionally, as to any personal
      property covered by the request for payment, Lender shall be furnished with
      evidence of having incurred a payment obligation therefor and such further
      evidence reasonably satisfactory to assure Lender that UCC filings therefor
      provide a valid first lien on the personal property.

     

    (v) Lender
      shall have the right to inspect the Work at all reasonable times upon reasonable
      prior notice and may condition any disbursement of Insurance Proceeds upon
      satisfactory compliance by Mortgagor with the provisions hereof. Neither the
      approval by Lender of any required plans and specifications for the Work nor
      the
      inspection by Lender of the Work shall make Lender responsible for the
      preparation of such plans and specifications, or the compliance of such plans
      and specifications of the Work, with any applicable law, regulation, ordinance,
      covenant or agreement.

     

    (vi) Insurance
      Proceeds shall not be disbursed more frequently than once every thirty (30)
      days.

     

    (vii) Until
      such time as the Work has been substantially completed, Lender shall not be
      obligated to disburse up to ten percent (10%) of the cost of the Work (the
      “Retention
      Amount”)
      to
      Mortgagor. Upon substantial completion of the Work, Mortgagor shall send notice
      thereof to Lender and, subject to the conditions of Section 3.04(b)(i)-(iv),
      Lender shall disburse one-half of the Retention Amount to Mortgagor; provided,
      however, that the remaining one-half of the Retention Amount shall be disbursed
      to Mortgagor when Lender shall have received copies of any and all final
      certificates of occupancy or other certificates, licenses and permits required
      for the ownership, occupancy and operation of the Property in accordance with
      all Legal Requirements. Mortgagor hereby covenants to diligently seek to obtain
      any such certificates, licenses and permits. Notwithstanding the foregoing,
      Lender will release the portion of the Retention Amount being held with respect
      to any contractor, subcontractor or materialman engaged in the Work as of the
      date upon which the Architect or Engineer certifies to Lender that the
      contractor, subcontractor or materialman has satisfactorily completed all work
      and has supplied all materials in accordance with the provisions of the
      contractor’s, subcontractor’s or materialman’s contract, provided, (A) the
      contractor, subcontractor or materialman delivers the lien waivers and evidence
      of payment in full of all sums due to the contractor, subcontractor or
      materialman as may be reasonably requested by Lender or by the title company
      issuing the Lender’s title policy and (B) if required by Lender, the release of
      any such portion of the Retention Amount shall be approved by the surety
      company, if any, which has issued a payment or performance bond with respect
      to
      the contractor, subcontractor or materialman.

     

    
      
        
        

      

      
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    (viii) Upon
      failure on the part of Mortgagor promptly to commence the Work as provided
      for
      herein or to proceed diligently and continuously to completion of the Work,
      subject to Force Majeure, not to exceed sixty (60) days, which failure shall
      continue after notice for thirty (30) days, Lender may apply any Insurance
      Proceeds or Condemnation Proceeds it then or thereafter holds to the payment
      of
      the Debt in accordance with the provisions of the Note; provided, however,
      that
      Lender shall be entitled to apply at any time all or any portion of the
      Insurance Proceeds or Condemnation Proceeds it then holds to the extent
      necessary to cure any Event of Default.

     

    (c) If
      Mortgagor (i) within ninety (90) days after the occurrence of any damage to
      the
      applicable Individual Property or any portion thereof (or such shorter period
      as
      may be required under any Major Space Lease) shall fail to submit to Lender
      for
      approval plans and specifications for the Work (approved by the Architect and
      by
      all Governmental Authorities whose approval is required), (ii) after any such
      plans and specifications are approved by all Governmental Authorities, the
      Architect and Lender, shall fail to promptly commence such Work as provided
      for
      herein or (iii) shall fail to diligently prosecute such Work to completion,
      then, in addition to all other rights available hereunder, at law or in equity,
      Lender, or any receiver of the Property or any portion thereof, upon five (5)
      days’ prior notice to Mortgagor (except in the event of emergency in which case
      no notice shall be required), may (but shall have no obligation to) perform
      or
      cause to be performed such Work, and may take such other steps as it reasonably
      deems advisable. Mortgagor hereby waives, for Mortgagor, any claim, other than
      for gross negligence or willful misconduct, against Lender and any receiver
      arising out of any act or omission of Lender or such receiver pursuant hereto,
      and Lender may apply all or any portion of the Insurance Proceeds (without
      the
      need to fulfill any other requirements of this Section 3.04) to reimburse Lender
      and such receiver, for all reasonable costs not reimbursed to Lender or such
      receiver upon demand together with interest thereon at the Default Rate from
      the
      date such amounts are advanced until the same are paid to Lender or the
      receiver.

     

    (d) Subject
      to Section 3.04(a)(ii) above, Mortgagor hereby irrevocably appoints Lender
      as
      its attorney-in-fact, coupled with an interest, to collect and receive any
      Insurance Proceeds paid with respect to any portion of the Property or the
      insurance policies required to be maintained hereunder, and to endorse any
      checks, drafts or other instruments representing any Insurance Proceeds whether
      payable by reason of loss thereunder or otherwise.

     

    
      
        
        

      

      
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    Section
      3.05. Compliance
      with Insurance Requirements.
      Mortgagor promptly shall comply with, and shall cause the Property to comply
      with, all Insurance Requirements, even if such compliance requires structural
      changes or improvements or would result in interference with the use or
      enjoyment of the Property or any portion thereof provided Mortgagor shall have
      a
      right to contest in good faith and with diligence such Insurance Requirements
      provided (a) no Event of Default shall be continuing during such contest and
      such contest shall not subject the Property or any portion thereof to any lien
      or affect the priority of the lien of this Security Instrument, (b) failure
      to
      comply with such Insurance Requirements will not subject Lender or any of its
      agents, employees, officers or directors to any civil or criminal liability,
      (c)
      such contest will not cause any reduction in insurance coverage, (d) such
      contest shall not affect the ownership, use or occupancy of the Property, (e)
      the Property or any part thereof or any interest therein shall not be in any
      danger of being sold, forfeited or lost by reason of such contest by Mortgagor,
      (f) Mortgagor has given Lender prompt notice of such contest and, upon request
      by Lender from time to time, notice of the status of such contest by Mortgagor
      and/or information of the continuing satisfaction of the conditions set forth
      in
      clauses (a) through (e) of this Section 3.05, (g) upon a final determination
      of
      such contest, Mortgagor shall promptly comply with the requirements thereof,
      and
      (h) prior to and during such contest, Mortgagor shall furnish to Lender security
      satisfactory to Lender, in its reasonable discretion, against loss or injury
      by
      reason of such contest or the non-compliance with such Insurance Requirement
      (and if such security is cash, Lender shall deposit the same in an
      interest-bearing account and interest accrued thereon, if any, shall be deemed
      to constitute a part of such security for purposes of this Security Instrument,
      but Lender (i) makes no representation or warranty as to the rate or amount
      of
      interest, if any, which may accrue thereon and shall have no liability in
      connection therewith and (ii) shall not be deemed to be a trustee or fiduciary
      with respect to its receipt of any such security and any such security may
      be
      commingled with other monies of Lender). Upon completion of any contest, Lender
      shall return the security , if any, deposited with Lender pursuant to clause
      (h)
      of this Section 3.05. If Mortgagor shall use the Property or any portion thereof
      in any manner which could permit the insurer to cancel any insurance required
      to
      be provided hereunder, Mortgagor immediately shall obtain a substitute policy
      which shall satisfy the requirements of this Security Instrument and which
      shall
      be effective on or prior to the date on which any such other insurance policy
      shall be canceled. Mortgagor shall not by any action or omission invalidate
      any
      insurance policy required to be carried hereunder unless such policy is replaced
      as aforesaid, or materially increase the premiums on any such policy above
      the
      normal premium charged for such policy. Mortgagor shall cooperate with Lender
      in
      obtaining for Lender the benefits of any Insurance Proceeds lawfully or
      equitably payable to Lender in connection with the transaction contemplated
      hereby.

     

    Section
      3.06. Event
      of Default During Restoration.
      Notwithstanding anything to the contrary contained in this Security Instrument
      including, without limitation, the provisions of this Article III, if, at the
      time of any casualty affecting the Property or any part thereof, or at any
      time
      during any Work, or at any time that Lender is holding or is entitled to receive
      any Insurance Proceeds pursuant to this Security Instrument, a Default exists
      and is continuing (whether or not it constitutes an Event of Default), Lender
      shall then have no obligation to make such proceeds available for Work and
      Lender shall have the right and option, to be exercised in its sole and absolute
      discretion and election, with respect to the Insurance Proceeds, either to
      retain and apply such proceeds in reimbursement for the actual costs, fees
      and
      expenses incurred by Lender in accordance with the terms hereof in connection
      with the adjustment of the loss and any balance toward payment of the Debt
      in
      such priority and proportions as Lender, in its sole discretion, shall deem
      proper, or towards the Work, upon such terms and conditions as Lender shall
      determine, or to cure such Default, or to any one or more of the foregoing
      as
      Lender, in its sole and absolute discretion, may determine. If Lender shall
      receive and retain such Insurance Proceeds, the lien of this Security Instrument
      shall be reduced only by the amount thereof received, after reimbursement to
      Lender of expenses of collection, and actually applied by Lender in reduction
      of
      the principal sum payable under the Note in accordance with the
      Note.

     

    
      
        
        

      

      
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    Section
      3.07. Application
      of Proceeds to Debt Reduction.
      (a)
      No
      damage to the Property, or any part thereof, by fire or other casualty
      whatsoever, whether such damage be partial or total, shall relieve Mortgagor
      from its liability to pay in full the Debt and to perform its obligations under
      this Security Instrument and the other Loan Documents.

     

    (b) If
      any
      Insurance Proceeds are applied to reduce the Debt, Lender shall apply the same
      in accordance with the provisions of the Note. 

     

    ARTICLE
      IV:   IMPOSITIONS

     

    Section
      4.01. Payment
      of Impositions, Utilities and Taxes, etc.
      (a)
Mortgagor
      shall pay or cause to be paid all Impositions prior to the date upon which
      any
      fine, penalty, interest or cost for nonpayment is imposed, and furnish to
      Lender, upon request, receipted bills of the appropriate taxing authority or
      other documentation reasonably satisfactory to Lender evidencing the payment
      thereof. If Mortgagor shall fail to pay any Imposition in accordance with this
      Section and is not contesting or causing a contesting of such Imposition in
      accordance with Section 4.04 hereof, or if there are insufficient funds in
      the
      Basic Carrying Costs Escrow Account to pay any Imposition, Lender shall have
      the
      right, but shall not be obligated, to pay that Imposition, and Mortgagor shall
      repay to Lender, on demand, any amount paid by Lender, with interest thereon
      at
      the Default Rate from the date of the advance thereof to the date of repayment,
      and such amount shall constitute a portion of the Debt secured by this Security
      Instrument and the other Cross-collateralized Mortgage.

     

    (b) Mortgagor
      shall, prior to the date upon which any fine, penalty, interest or cost for
      the
      nonpayment is imposed, pay or cause to be paid all charges for electricity,
      power, gas, water and other services and utilities in connection with the
      Property, and shall, upon request, deliver to Lender receipts or other
      documentation reasonably satisfactory to Lender evidencing payment thereof.
      If
      Mortgagor shall fail to pay any amount required to be paid by Mortgagor pursuant
      to this Section 4.01 and is not contesting such charges in accordance with
      Section 4.04 hereof, Lender shall have the right, but shall not be obligated,
      to
      pay that amount, and Mortgagor will repay to Lender, on demand, any amount
      paid
      by Lender with interest thereon at the Default Rate from the date of the advance
      thereof to the date of repayment, and such amount shall constitute a portion
      of
      the Debt secured by this Security Instrument and the other Cross-collateralized
      Mortgage.

     

    (c) Mortgagor
      shall pay all taxes, charges, filing, registration and recording fees, excises
      and levies imposed upon Lender by reason of or in connection with its ownership
      of any Loan Document or any other instrument related thereto, or resulting
      from
      the execution, delivery and recording of, or the lien created by, or the
      obligation evidenced by, any of them, other than income, franchise and other
      similar taxes imposed on Lender and shall pay all corporate stamp taxes, if
      any,
      and other taxes, required to be paid on the Loan Documents. If Mortgagor shall
      fail to make any such payment within ten (10) days after written notice thereof
      from Lender, Lender shall have the right, but shall not be obligated, to pay
      the
      amount due, and Mortgagor shall reimburse Lender therefor, on demand, with
      interest thereon at the Default Rate from the date of the advance thereof to
      the
      date of repayment, and such amount shall constitute a portion of the Debt
      secured by this Security Instrument and the other the Cross-collateralized
      Mortgage.

     

    
      
        
        

      

      
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    Section
      4.02. Deduction
      from Value.
      In the
      event of the passage after the date of this Security Instrument of any Legal
      Requirement deducting from the value of the Property for the purpose of
      taxation, any lien thereon or changing in any way the Legal Requirements now
      in
      force for the taxation of this Security Instrument, the other the
      Cross-collateralized Mortgage and/or the Debt for federal, state or local
      purposes, or the manner of the operation of any such taxes so as to adversely
      affect the interest of Lender, or impose any tax or other charge on any Loan
      Document, then Mortgagor will pay such tax, with interest and penalties thereon,
      if any, within the statutory period; provided, however, such tax payments shall
      not include such taxes incurred more than ninety (90) days prior to the date
      Mortgagor receives Lender’s notice of payment. In the event the payment of such
      tax or interest and penalties by Mortgagor would be unlawful, or taxable to
      Lender or unenforceable or provide the basis for a defense of usury, then in
      any
      such event, Lender shall have the option, by written notice of not less than
      sixty (60) days, to declare the Debt immediately due and payable, with no
      prepayment fee or charge of any kind.

     

    Section
      4.03. No
      Joint Assessment.
      Mortgagor shall not consent to or initiate the joint assessment of the Premises
      or the Improvements (a) with any other real property constituting a separate
      tax
      lot and Mortgagor represents and covenants that the Premises and the
      Improvements are and shall remain a separate tax lot or (b) with any portion
      of
      the Property which may be deemed to constitute personal property, or any other
      procedure whereby the lien of any taxes which may be levied against such
      personal property shall be assessed or levied or charged to the Property as
      a
      single lien.

     

    Section
      4.04. Right
      to Contest.
      Mortgagor shall have the right, after prior notice to Lender, at its sole
      expense, to contest by appropriate legal proceedings diligently conducted in
      good faith, without cost or expense to Lender or any of its agents, employees,
      officers or directors, the validity, amount or application of any Imposition
      or
      any charge described in Section 4.01(b), provided that (a) no Default or Event
      of Default shall exist during such proceedings and such contest shall not
      (unless Mortgagor shall comply with clause (d) of this Section 4.04) subject
      the
      Property or any portion thereof to any lien or affect the priority of the lien
      of this Security Instrument, (b) failure to pay such Imposition or charge will
      not subject Lender or any of its agents, employees, officers or directors to
      any
      civil or criminal liability, (c) the contest suspends enforcement of the
      Imposition or charge (unless Mortgagor first pays the Imposition or charge),
      (d)
      prior to and during such contest, Mortgagor shall furnish to Lender security
      satisfactory to Lender, in its reasonable discretion, against loss or injury
      by
      reason of such contest or the non-payment of such Imposition or charge (and
      if
      such security is cash, Lender may deposit the same in an interest-bearing
      account and interest accrued thereon, if any, shall be deemed to constitute
      a
      part of such security for purposes of this Security Instrument, but Lender
      (i)
      makes no representation or warranty as to the rate or amount of interest, if
      any, which may accrue thereon and shall have no liability in connection
      therewith and (ii) shall not be deemed to be a trustee or fiduciary with respect
      to its receipt of any such security and any such security may be commingled
      with
      other monies of Lender), (e) such contest shall not affect the ownership, use
      or
      occupancy of the Property, (f) the Property or any part thereof or any interest
      therein shall not be in any danger of being sold, forfeited or lost by reason
      of
      such contest by Mortgagor, (g) Mortgagor has given Lender notice of the
      commencement of such contest and upon request by Lender, from time to time,
      notice of the status of such contest by Mortgagor and/or confirmation of the
      continuing satisfaction of clauses (a) through (f) of this Section 4.04, and
      (h)
      upon a final determination of such contest, Mortgagor shall promptly comply
      with
      the requirements thereof. Upon completion of any contest, Mortgagor shall
      immediately pay the amount due, if any, and deliver to Lender proof of the
      completion of the contest and payment of the amount due, if any, following
      which
      Lender shall return the security, if any, deposited with Lender pursuant to
      clause (d) of this Section 4.04. Mortgagor shall not pay any Imposition in
      installments unless permitted by applicable Legal Requirements, and shall,
      upon
      the request of Lender, deliver copies of all notices and bills relating to
      any
      Imposition or other charge covered by this Article IV to Lender.

     

    
      
        
        

      

      
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    Section
      4.05. No
      Credits on Account of the Debt.
      Mortgagor will not claim or demand or be entitled to any credit or credits
      on
      account of the Debt for any part of the Impositions assessed against the
      Property or any part thereof and no deduction shall otherwise be made or claimed
      from the taxable value of the Property, or any part thereof, by reason of this
      Security Instrument or the Debt. In the event such claim, credit or deduction
      shall be required by Legal Requirements, Lender shall have the option, by
      written notice of not less than forty-five (45) days, to declare the Debt
      immediately due and payable, and Mortgagor hereby agrees to pay such amounts
      not
      later than forty-five (45) days after such notice.

     

    Section
      4.06. Documentary
      Stamps.
      If, at
      any time, the United States of America, any State or Commonwealth thereof or
      any
      subdivision of any such State shall require revenue or other stamps to be
      affixed to the Note, this Security Instrument or any other Loan Document, or
      impose any other tax or charges on the same, Mortgagor will pay the same, with
      interest and penalties thereon, if any.

     

     

    ARTICLE
      V: CENTRAL
      CASH MANAGEMENT

     

    Section
      5.01. Cash
      Flow.
      Mortgagor hereby acknowledges and agrees that (i) the Rents (which for the
      purposes of this Section 5.01 shall not include security deposits from tenants
      under Leases held by Mortgagor and not applied towards Rent) derived from the
      Property and (ii) Loss Proceeds (other than Loss Proceeds that Lender has
      elected to apply to reduce the Debt in accordance with the terms of Article
      III
      hereof) shall be utilized (a) to fund the Basic Carrying Costs Sub-Account,
      (b)
      to pay all amounts to become due and payable under the Note by funding the
      Debt
      Service Payment Sub-Account, (c) to fund the Recurring Replacement Reserve
      Sub-Account, (d) to fund the Reletting Reserve Sub-Account, (e) to fund the
      Operation and Maintenance Expense Sub-Account and (f) to fund the Curtailment
      Reserve Sub-Account, all to the extent provided for herein. Mortgagor shall
      collect all security deposits from tenants under valid Leases, which shall
      be
      held by Mortgagor, in accordance with applicable law and in a segregated demand
      deposit bank account at such commercial or savings bank or banks as may be
      reasonably satisfactory to Lender (the “Security
      Deposit Account”).
      Mortgagor shall notify Lender of any security deposits held as letters of credit
      and, upon Lender’s request, such letters of credit shall be promptly delivered
      to Lender. Mortgagor shall have no right to withdraw funds from the Security
      Deposit Account; provided
      that,
      prior to the occurrence of an Event of Default, Mortgagor may withdraw funds
      from the Security Deposit Account to refund or apply security deposits as
      required by the Leases or by applicable Legal Requirements. During the
      continuance of an Event of Default, all withdrawals from the Security Deposit
      Account must be approved by Lender. Mortgagor shall cause all Rent which is
      due
      and payable to Mortgagor pursuant to the terms of the Leases (other than
      security deposits under valid Leases which are held in the Security Deposit
      Account) to be paid through automated clearing house funds (“ACH”),
      a
      check drawn on an account in a bank located in the continental United States
      which is a member of the New York Clearing House Association or by Federal
      wire
      directly to the Rent Account. Mortgagor shall give each tenant under a Lease
      an
      irrevocable direction in the form of Exhibit E attached hereto and made a part
      hereof to deliver all rent payments made by tenants and other payments
      constituting Rent directly to the Rent Account and shall deliver copies of
      such
      letters to Lender, together with an Officer’s Certificate certifying that such
      letters were delivered to each tenant under the Leases within five (5) days
      of
      the Closing Date. Notwithstanding the foregoing, if any Rent is received by
      Mortgagor or Manager, then (a) such amounts shall be held in trust for the
      benefit, and as the property, of Lender, (b) such amounts shall not be
      commingled with any other funds or property of Mortgagor or Manager and (c)
      Mortgagor or Manager shall deposit such amounts in the Rent Account within
      one
      (1) Business Day of receipt. Mortgagor shall, or shall cause Manager to, give
      to
      the bank in which the Rent Account is located an irrevocable written
      instruction, in form and substance acceptable to, and acknowledged by, Lender,
      that all funds deposited in the Rent Account shall be automatically transferred
      through ACH or by Federal wire to the Central Account prior to 2:00 p.m. (New
      York City time) on each Business Day. Upon execution of any Space Lease after
      the Closing Date, Mortgagor shall deliver to Lender a copy of the irrevocable
      direction letter referred to above, the receipt of which has been acknowledged
      by the tenant under such Space Lease. Lender may elect to change the financial
      institution in which the Central Account or the Rent Account shall be
      maintained; however,
      Lender
      shall give Mortgagor and the bank in which the Rent Account is located not
      fewer
      than ten (10) Business Days’ prior notice of such change. Neither Mortgagor nor
      Manager shall change the bank in which the Rent Account is located or the Rent
      Account without the prior written consent of Lender. All fees and charges of
      the
      bank in which the Central Account is located shall be paid by
      Mortgagor.

     

    
      
        
        

      

      
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    Section
      5.02. Establishment
      of Accounts.
      Lender
      has established the Escrow Accounts and the Central Account in the name of
      Lender as secured party and Mortgagor has established the Central Account in
      the
      joint names of Lender, as secured party, and Mortgagor. The Central Account,
      the
      Rent Account and the Escrow Accounts shall be under the sole dominion and
      control of Lender and funds held therein shall not constitute trust funds.
      Mortgagor hereby irrevocably directs and authorizes Lender to withdraw funds
      from the Central Account, the Rent Account and the Escrow Accounts, all in
      accordance with the terms and conditions of this Security Instrument. Mortgagor
      shall have no right of withdrawal in respect of the Central Account, the Rent
      Account or the Escrow Accounts. Each transfer of funds to be made hereunder
      shall be made only to the extent that funds are on deposit in the Central
      Account, the Rent Account or the affected Sub-Account or Escrow Account, and
      Lender shall have no responsibility to make additional funds available in the
      event that funds on deposit are insufficient. The Central Account shall contain
      the Basic Carrying Costs Sub-Account, the Debt Service Payment Sub-Account,
      the
      Recurring Replacement Reserve Sub-Account, the Reletting Reserve Sub-Account,
      the Operation and Maintenance Expense Sub-Account and the Curtailment Reserve
      Sub-Account, each of which accounts shall be Eligible Accounts or book entry
      sub-accounts of an Eligible Account (each a “Sub-Account”
and
      collectively, the “Sub-Accounts”)
      to
      which certain funds shall be allocated and from which disbursements shall be
      made pursuant to the terms of this Security Instrument. In addition, on the
      date
      hereof, the Central Account shall also contain (x) a Sub-Account entitled the
      “Engineering Escrow Sub Account”, which shall be funded by Mortgagor at Closing
      with the Initial Engineering Deposit set forth on Exhibit B attached hereto
      (representing the sum applicable to the Required Engineering Work described
      in
      Section 5.12 below and on Exhibit D attached hereto. Disbursements from the
      Engineering Sub-Account shall be made in accordance with Section 5.12 hereof.
      Sums held in the Escrow Accounts may be commingled with other monies held by
      Lender.

     

    
      
        
        

      

      
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    Section
      5.03. Permitted
      Investments.
      All
      sums deposited into the Curtailment Reserve Escrow Account, Recurring
      Replacement Reserve Sub-Account, the Reletting Reserve Escrow Account and the
      Operation and Maintenance Expense Escrow Account shall be held in an interest
      bearing account but Mortgagor acknowledges that Lender makes no representation
      or warranty as to the rate of return. Lender shall not have any liability for
      any loss in investments of funds in the Curtailment Reserve Escrow Account,
      Recurring Replacement Reserve Sub-Account, the Reletting Reserve Escrow and
      the
      Operation and Maintenance Expense Escrow Account and no such loss shall affect
      Mortgagor’s obligation to fund, or liability for funding, the Central Account
      and each Sub-Account and Escrow Account, as the case may be. Mortgagor agrees
      that Lender shall include all such earnings on the Curtailment Reserve Escrow
      Account, Recurring Replacement Reserve Sub-Account, the Reletting Reserve Escrow
      Account and the Operation and Maintenance Expense Escrow Account as income
      of
      Mortgagor (and, if Mortgagor is a partnership, limited liability company or
      other pass-through entity, the partners, members or beneficiaries of Mortgagor,
      as the case may be) for federal and applicable state and local tax purposes.
      All
      interest paid or other earnings on funds deposited into the Recurring
      Replacement Reserve Sub-Account, the Reletting Reserve Escrow Account and the
      Operation and Maintenance Expense Escrow Account made hereunder shall be
      deposited into the Central Account and shall be allocated to the Curtailment
      Reserve Escrow Account, Recurring Replacement Reserve Sub-Account, the Reletting
      Reserve Escrow Account and the Operation and Maintenance Expense Escrow Account.
      Mortgagor shall pay all costs, fees and expenses incurred in connection with
      the
      establishment and maintenance of, or the disbursement from the Curtailment
      Reserve Escrow Account, the Recurring Replacement Reserve Sub-Account, the
      Reletting Reserve Escrow Account and the Operation and Maintenance Expense
      Escrow Account, which sums shall be due and payable by Mortgagor upon demand
      and
      may be deducted by Lender from amounts on deposit in the Central Account or
      the
      Escrow Accounts.

     

    
      
        
        

      

      
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    Section
      5.04. Servicing
      Fees.
      At the
      option of Lender, the Loan may be serviced by a servicer (the “Servicer”)
      selected by Lender and Lender may delegate all or any portion of its
      responsibilities under this Security Instrument to the Servicer. Provided that
      no Default has occurred and is continuing, Mortgagor shall have no obligation
      to
      reimburse Lender for servicing fees incurred in connection with the ordinary,
      routine servicing of the Loan; provided, however, that Mortgagor shall reimburse
      Lender for (a) any and all costs and expenses incurred after the occurrence
      of a
      Default and (b) as otherwise provided for in this Security Instrument.
      Additionally, Mortgagor shall pay all reasonable servicing fees of Servicer,
      if
      any, not to exceed $500.00 per month, charged in connection with any
      disbursement of funds from the Escrow Accounts pursuant to the Servicer’s then
      standard conditions and rates.

     

    Section
      5.05. Monthly
      Funding of Sub-Accounts and Escrow Accounts.
      (a) On
      or before each Payment Date during the term of the Loan, commencing on the
      first
      (1st) Payment Date occurring after the month in which the Loan is initially
      funded, Mortgagor shall pay or cause to be paid to the Central Account, Basic
      Carrying Costs Monthly Installment, the Required Debt Service Payment, the
      Recurring Replacement Monthly Installment, the Reletting Reserve Monthly
      Installment and all sums required to be deposited in the Operation and
      Maintenance Expense Sub-Account and the Curtailment Reserve Sub-Account, if
      any,
      pursuant to clauses (i) through (viii) of this Section 5.05(a) and all funds
      transferred or deposited into the Central Account shall be allocated among
      the
      Sub-Accounts as follows and in the following priority: 

     

    (i) first,
      to
      the Basic Carrying Costs Sub-Account, until an amount equal to the Basic
      Carrying Costs Monthly Installment for such Current Month has been allocated
      to
      the Basic Carrying Costs Sub-Account;

     

    (ii) second,
      to the Debt Service Payment Sub-Account, until an amount equal to the Required
      Debt Service Payment for the Payment Date occurring in such Current Month has
      been allocated to the Debt Service Payment Sub-Account;

     

    (iii) third,
      to
      the Recurring Replacement Reserve Sub-Account, until an amount equal to the
      Recurring Replacement Monthly Installment for such Current Month has been
      allocated to the Recurring Replacement Reserve Sub-Account;

     

    (iv) fourth,
      to the Reletting Reserve Sub-Account, until an amount equal to the Reletting
      Reserve Monthly Installment for such Current Month has been allocated to the
      Reletting Reserve Sub-Account;

     

    (v) fifth,
      but only during an O&M Operative Period, to the Operation and Maintenance
      Expense Sub-Account in an amount equal to the Cash Expenses, other than
      management fees payable to Affiliates of Mortgagor, for such Current Month
      pursuant to the related Approved Annual Budget;

     

    (vi) sixth,
      but only during an O&M Operative Period, to the Operation and Maintenance
      Expense Sub-Account in an amount equal to the amount, if any, of the Net Capital
      Expenditures for such Current Month pursuant to the related Approved Annual
      Budget; 

     

    
      
        
        

      

      
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    (vii) seventh,
      but only during an O&M Operative Period, to the Operation and Maintenance
      Expense Sub-Account in an amount equal to the amount, if any, of the
      Extraordinary Expenses approved by Lender for such Current Month;

     

    (viii) eighth,
      but only during an O&M Operative Period, the balance, if any, to the
      Curtailment Reserve Sub-Account. 

     

    Provided
      that (I) no Event of Default has occurred and is continuing and (II) Lender
      has
      received the Manager Certification referred to in Section 2.09(d) hereof for
      the
      most recent period for which the same is due, Lender agrees that in each Current
      Month any amounts deposited into or remaining in the Central Account after
      the
      Sub-Accounts have been funded in accordance with clauses (i) through (viii)
      above with respect to the Current Month and any periods prior thereto, shall
      be
      disbursed by Lender to Mortgagor on the Payment Date and, to the extent that
      funds are available for such purpose, on the fifteenth and twenty-fifth day
      of
      each Current Month or, if such days are not Business Days, on the next
      succeeding Business Day in accordance with Mortgagor’s irrevocable written
      instruction delivered to Lender on the Closing Date. During the existence of
      an
      Event of Default, no funds held in the Central Account shall be distributed
      to
      Mortgagor and Lender shall have the right to apply all or any portion of the
      funds held in the Central Account or any Sub-Account or any Escrow Account
      to
      the Debt in Lender’s sole discretion.

     

    (b)  On
      each
      Payment Date, (i) sums held in the Basic Carrying Costs Sub-Account shall be
      transferred to the Basic Carrying Costs Escrow Account, (ii) sums held in the
      Debt Service Payment Sub-Account, together with any amounts deposited into
      the
      Central Account that are either (x) Loss Proceeds that Lender has elected to
      apply to reduce the Debt in accordance with the terms of Article III hereof
      or
      (y) excess Loss Proceeds remaining after the completion of any restoration
      required hereunder, shall be transferred to Lender to be applied towards the
      Required Debt Service Payment, (iii) sums held in the Recurring Replacement
      Reserve Sub-Account shall be transferred to the Recurring Replacement Reserve
      Escrow Account, (iv) sums held in the Reletting Reserve Sub-Account shall be
      transferred to the Reletting Reserve Escrow Account, (v) sums held in the
      Operation and Maintenance Expense Sub-Account shall be transferred to the
      Operation and Maintenance Expense Escrow Account; and (vi) sums held in the
      Curtailment Reserve Sub-Account shall be transferred to the Curtailment Reserve
      Escrow Account.

     

    (c)  While
      this Security Instrument is cross-collateralized with the other
      Cross-collateralized Mortgage, the monies in the Central Account relating to
      all
      of the Cross-collateralized Property(s) shall be commingled and the cash
      management arrangements hereunder and under the other Cross-collateralized
      Mortgage shall be administered as if it were under one waterfall. 

     

    Section
      5.06. Payment
      of Basic Carrying Costs.
      Mortgagor hereby agrees to pay all Basic Carrying Costs (without regard to
      the
      amount of money in the Basic Carrying Costs Sub-Account or the Basic Carrying
      Costs Escrow Account). At least ten (10) Business Days prior to the due date
      of
      any Basic Carrying Costs, and not more frequently than once each month,
      Mortgagor may notify Lender in writing and request that Lender pay such Basic
      Carrying Costs on behalf of Mortgagor on or prior to the due date thereof,
      and,
      provided that no Event of Default has occurred and that there are sufficient
      funds available in the Basic Carrying Costs Escrow Account, Lender shall make
      such payments out of the Basic Carrying Costs Escrow Account before same shall
      be delinquent. Together with each such request, Mortgagor shall furnish Lender
      with bills and all other documents necessary, as reasonably determined by
      Lender, for the payment of the Basic Carrying Costs which are the subject of
      such request. Mortgagor’s obligation to pay (or cause Lender to pay) Basic
      Carrying Costs pursuant to this Security Instrument shall include, to the extent
      permitted by applicable law, Impositions resulting from future changes in law
      which impose upon Lender an obligation to pay any property taxes or other
      Impositions or which otherwise adversely affect Lender’s interests as provided
      for in this Security Instrument.

     

    
      
        
        

      

      
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    Provided
      that no Event of Default shall have occurred, all funds deposited into the
      Basic
      Carrying Costs Escrow Account shall be held by Lender pursuant to the provisions
      of this Security Instrument and shall be applied in payment of Basic Carrying
      Costs in accordance with the terms hereof. Should an Event of Default occur,
      the
      sums on deposit in the Basic Carrying Costs Sub-Account and the Basic Carrying
      Costs Escrow Account may be applied by Lender in payment of any Basic Carrying
      Costs or may be applied to the payment of the Debt or any other charges
      affecting all or any portion of the Cross-collateralized Properties as Lender
      in
      its sole discretion may determine; provided,
      however,
      that no
      such application shall be deemed to have been made by operation of law or
      otherwise until actually made by Lender as herein provided.

     

    Section
      5.07. Reletting
      Reserve Escrow Account.
      (a)
      Mortgagor hereby agrees to pay all Reletting Expenditures (without regard to
      the
      amount of money then available in the Reletting Reserve Sub-Account or the
      Reletting Reserve Escrow Account). Upon the execution of any Space Lease with
      respect to which Mortgagor is obligated to undertake or pay for any Reletting
      Expenditures, Mortgagor shall submit to Lender (i) an itemized line item budget
      (a “Budget”)
      reasonably acceptable to Lender outlining all of the Reletting Expenditures,
      (ii) a copy of the signed Lease for which said Reletting Expenditures relate,
      in
      each case which has an expiration date at least three (3) years after the
      commencement thereof and which is otherwise in compliance with the provisions
      of
      this Security Instrument, (iii) a copy of the plans and specifications, if
      any,
      for the proposed Reletting Expenditures and (iv) an Officer’s Certificate with
      respect to the items referred to in clauses (i) through (iii) and setting forth
      an anticipated completion date for the Reletting Expenditures. Thereafter,
      provided that no Event of Default has occurred and is continuing and that Lender
      has received a written request from Mortgagor for payment or reimbursement
      of
      any costs incurred in connection with any Reletting Expenditures, together
      with
      (i) unconditional lien waivers (subject only to payment), (ii) a statement
      from
      an Architect or Engineer, indicating that such portion of the Reletting
      Expenditures for which payment or reimbursement is sought has been substantially
      completed in compliance with all Legal Requirements, (iii) unless Mortgagor
      requests disbursement by means of check payable jointly to Mortgagor and the
      applicable vendor, copies of bills for such Reletting Expenditures marked “paid
      in full” (or such other documentation reasonably satisfactory to Lender to
      establish the payment of the Reletting Expenditures) for the portion due and
      for
      which payment or reimbursement is sought, (iv) upon final completion of such
      Reletting Expenditures, tenant estoppel certificates from the tenant leasing
      space in the Premises for whom the Reletting Expenditures are being made which
      indicate, among other things, that the tenant under such Space Lease has been
      in
      occupancy and open for business for at least one full calendar month and paid
      all rents due under the Space Lease without abatement, suspension, deferment,
      diminution, reduction or other allowances for at least one full calendar month,
      and (v) such other documentation as may be reasonably requested by Lender to
      establish that the Reletting Expenditures or portion thereof which are the
      subject of such request have been completed, all of which are reasonably
      acceptable in form and substance to Lender, Lender shall disburse to Mortgagor,
      to the extent of funds remaining in the Reletting Reserve Escrow Account, any
      actual expenses incurred in connection with such Reletting Expenditures which
      were set forth in the approved Budget provided that Mortgagor may make a request
      for disbursement of sums from the Reletting Reserve Escrow Account no more
      than
      once during any month and any request (other than the final request) shall
      be in
      a minimum amount of $5,000. With respect to any Reletting Expenditures which
      relate to brokerage commissions, upon the receipt of (i) copies of bills for
      such Reletting Expenditures marked “paid in full”, (ii) tenant estoppel
      certificates from the tenant leasing space in the Premises for which Lease
      the
      brokerage commissions are due which indicate, among other things, that the
      tenant under such Space Lease has been in occupancy and open for business for
      at
      least one full calendar month and paid all rents due under the Space Lease
      without abatement, suspension, deferment, diminution, reduction or other
      allowances for at least one full calendar month and (iii) a copy of the signed
      Lease for which said Reletting Expenditures relate, in each case which has
      an
      expiration date at least three (3) years, all of which are reasonably acceptable
      to Lender, Lender shall disburse to Mortgagor any actual expenses incurred
      in
      connection with such Reletting Expenditures out of the Reletting Reserve Escrow
      Account. Lender shall not be required to make any disbursements out of the
      Reletting Reserve Escrow Account if an Event of Default shall have occurred
      and
      is continuing, if more than one such request is made in any month or if
      sufficient funds are not available in the Reletting Reserve Escrow
      Account.

     

    
      
        
        

      

      
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    (b) In
      addition, Mortgagor shall pay to Lender for deposit with Lender all funds
      received by Mortgagor in excess of $50,000 in connection with any cancellation,
      termination or surrender of any Lease, including, but not limited to, any
      surrender or cancellation fees, buyout fees, or reimbursements for tenant
      improvements and leasing commissions (“Termination Payments”); provided, as long
      as no Event of Default exists, when the applicable space is re-leased pursuant
      to a Space Lease entered into in accordance with the terms of this Security
      Instrument, any such Termination Payments on deposit with Lender and remaining
      after payment of all tenant improvements and leasing commissions in connection
      with such new Space Lease pursuant to 5.07(a) above shall be paid to Mortgagor
      upon the occupancy and the payment of rents due under the new Space Lease for
      at
      least one full calendar month

     

    (c) Provided
      that no Event of Default shall have occurred, all funds deposited into the
      Reletting Reserve Escrow Account relating to Reletting Expenditures shall be
      held by Lender pursuant to the provisions of this Security Instrument and shall
      be applied in payment of Reletting Expenditures. Should an Event of Default
      occur, the sums on deposit in the Reletting Reserve Sub-Account and the
      Reletting Reserve Escrow Account may be applied by Lender in payment of any
      Reletting Expenditures or may be applied to the payment of the Debt or any
      other
      charges affecting all or any portion of the Property, as Lender, in its sole
      discretion, may determine; provided,
      however,
      that no
      such application shall be deemed to have been made by operation of law or
      otherwise until actually made by Lender as herein provided.

     

    
      
        
        

      

      
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    (d) In
      the
      event that Mortgagor holds any letters of credit as security for obligations
      under Leases, within thirty (30) days (or if any letters of credit may expire
      within such thirty (30) day period, prior to the expiration of such letter
      of
      credit) of the occurrence of a monetary event of default or a material
      non-monetary event of default under the related Lease, Mortgagor shall present
      for draw and use all commercially reasonable efforts to draw the full amount
      which it is entitled to draw under such letter of credit; provided, however,
      Mortgagor shall not be obliged to draw on such letter of credit if (i) Mortgagor
      has submitted to Lender a plan of action to resolve any event of default which
      gave rise to Mortgagor’s right to draw on the applicable letter of credit and
      Lender shall, in its reasonable discretion, have consented to such plan or
      Mortgagor is precluded from making a draw on the applicable letter of credit
      by
      applicable law, and (ii) the term of such letter of credit will not expire
      prior
      to the implementation of such submitted plan. Mortgagor shall deliver to Lender
      all security deposits which are applied against sums due to Mortgagor under
      Leases (including, without limitation, all sums drawn on letters of credits
      held
      as security for obligations of tenants under Leases) and Rent paid by or on
      behalf of any lessee under a Space Lease in whole or partial consideration
      for
      the termination, cancellation or surrender of any Space Lease including, without
      limitation, surrender or cancellation fees, buy-out fees or reimbursements
      for
      tenant improvements or leasing commissions, within five (5) Business Days of
      receipt thereof and all such sums shall be held in the Reletting Reserve Escrow
      Account and shall be disbursed therefrom as set forth above.

     

    Section
      5.08. Recurring
      Replacement Reserve Escrow Account.
      Mortgagor hereby agrees to pay all Recurring Replacement Expenditures with
      respect to the Property (without regard to the amount of money then available
      in
      the Recurring Replacement Reserve Sub-Account or the Recurring Replacement
      Reserve Escrow Account). Provided that Lender has received written notice from
      Mortgagor at least five (5) Business Days prior to the due date of any payment
      relating to Recurring Replacement Expenditures and not more frequently than
      once
      each month, and further provided that no Event of Default has occurred and
      is
      continuing, that there are sufficient funds available in the Recurring
      Replacement Reserve Escrow Account and that Mortgagor shall have theretofore
      furnished Lender with lien waivers, copies of bills, invoices and other
      reasonable documentation as may be required by Lender to establish that the
      Recurring Replacement Expenditures which are the subject of such request
      represent amounts due for completed or partially completed capital work and
      improvements performed at the Property, Lender shall make such payments out
      of
      the Recurring Replacement Reserve Escrow Account. 

     

    Provided
      that no Event of Default shall have occurred, all funds deposited into the
      Recurring Replacement Reserve Escrow Account shall be held by Lender pursuant
      to
      the provisions of this Security Instrument and shall be applied in payment
      of
      Recurring Replacement Expenditures. Should an Event of Default occur, the sums
      on deposit in the Recurring Replacement Reserve Sub-Account and the Recurring
      Replacement Reserve Escrow Account may be applied by Lender in payment of any
      Recurring Replacement Expenditures or may be applied to the payment of the
      Debt
      or any other charges affecting all or any portion of the Cross-collateralized
      Properties, as Lender in its sole discretion may determine; provided,
      however,
      that no
      such application shall be deemed to have been made by operation of law or
      otherwise until actually made by Lender as herein provided.

     

    
      
        
        

      

      
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    Section
      5.09. Operation
      and Maintenance Expense Escrow Account.
      Mortgagor hereby agrees to pay all Operating Expenses with respect to the
      Property (without regard to the amount of money then available in the Operation
      and Maintenance Expense Sub-Account or the Operation and Maintenance Expense
      Escrow Account). All funds allocated to the Operation and Maintenance Expense
      Escrow Account shall be held by Lender pursuant to the provisions of this
      Security Instrument. Any sums held in the Operation and Maintenance Expense
      Escrow Account shall be disbursed to Mortgagor within five (5) Business Days
      of
      receipt by Lender from Mortgagor of (a) a written request for such disbursement
      which shall indicate the Operating Expenses (exclusive of Basic Carrying Costs
      and any management fees payable to Mortgagor or to Affiliates of Mortgagor)
      for
      which the requested disbursement is to pay and (b) an Officer’s Certificate
      stating that no Operating Expenses with respect to the Property are more than
      sixty (60) days past due; provided,
      however,
      in the
      event that Mortgagor legitimately disputes any invoice for an Operating Expense,
      and (i) no Event of Default has occurred and is continuing hereunder, (ii)
      Mortgagor shall have set aside adequate reserves for the payment of such
      disputed sums together with all interest and late fees thereon, (iii) Mortgagor
      has complied with all the requirements of this Security Instrument relating
      thereto, and (iv) the contesting of such sums shall not constitute a default
      under any other instrument, agreement, or document to which Mortgagor is a
      party, then Mortgagor may, after certifying to Lender as to items (i) through
      (iv) hereof, contest such invoice. Together with each such request, Mortgagor
      shall furnish Lender with bills and all other documents necessary for the
      payment of the Operating Expenses which are the subject of such request.
      Mortgagor may request a disbursement from the Operation and Maintenance Expense
      Escrow Account no more than one (1) time per calendar month. Should an Event
      of
      Default occur and be continuing, the sums on deposit in the Operation and
      Maintenance Expense Sub-Account or the Operation and Maintenance Expense Escrow
      Account may be applied by Lender in payment of any Operating Expenses for the
      Property or may be applied to the payment of the Debt or any other charges
      affecting all or any portion of the Property as Lender, in its sole discretion,
      may determine; provided,
      however,
      that no
      such application shall be deemed to have been made by operation of law or
      otherwise until actually made by Lender as herein provided.

     

    Section
      5.10. Intentionally
      Deleted

     

    Section
      5.11. Curtailment
      Reserve Escrow Account.
      Funds
      deposited into the Curtailment Reserve Escrow Account during an O&M
      Operative Period shall be held by Lender in the Curtailment Reserve Escrow
      Account as additional security for the Loan until the Loan has been paid in
      full. Notwithstanding anything herein to the contrary, provided that no Event
      of
      Default and no O&M Operative Period has occurred and is continuing, Lender
      shall, upon written request from Mortgagor, disburse all sums contained in
      the
      Curtailment Reserve Escrow Account to Mortgagor. Should an Event of Default
      occur, the sums on deposit in the Curtailment Reserve Sub-Account and the
      Curtailment Reserve Escrow Account may be applied by Lender to the payment
      of
      the Debt or other charges affecting all or any portion of the Property, as
      Lender, in its sole discretion, may determine; provided, however, that no such
      application shall be deemed to have been made by operation of law or otherwise
      until actually made by Lender as herein provided. Lender shall calculate the
      Debt Service Coverage as of the end of each fiscal quarter. Such calculation
      shall be completed within ten (10) Business Days of Lender’s receipt of the
      quarterly financial statements required under Section 2.09(b) with respect
      to
      such fiscal quarter.

     

    
      
        
        

      

      
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    Section
      5.12. Performance
      of Engineering Work.
      (a)
Mortgagor
      shall promptly commence and diligently thereafter pursue to completion (without
      regard to the amount of money then available in the Engineering Escrow Account)
      the Required Engineering Work prior to the twelve (12) month anniversary of
      the
      Closing Date. After Mortgagor completes an item of Required Engineering Work,
      Mortgagor may submit to Lender an invoice therefor with lien waivers and a
      statement from the Engineer, reasonably acceptable to Lender, indicating that
      the portion of the Required Engineering Work in question has been completed
      in
      compliance with all Legal Requirements, and Lender shall, within twenty (20)
      days thereafter, although in no event more frequently than once each month,
      reimburse such amount to Mortgagor from the Engineering Escrow Account;
provided,
      however,
      that
      Mortgagor shall not be reimbursed more than the amount set forth on Exhibit
      D
      hereto as the amount allocated to the portion of the Required Engineering Work
      for which reimbursement is sought. 

     

    (b) From
      and
      after the date all of the Required Engineering Work is completed, Mortgagor
      may
      submit a written request, which request shall be delivered together with final
      lien waivers and a statement from the Engineer, as the case may be, reasonably
      acceptable to Lender, indicating that all of the Required Engineering Work
      has
      been completed in compliance with all Legal Requirements, and Lender shall,
      within twenty (20) days thereafter, disburse any balance of the Engineering
      Escrow Account to Mortgagor. Should an Event of Default occur, the sums on
      deposit in the Engineering Escrow Account may be applied by Lender in payment
      of
      any Required Engineering Work or may be applied to the payment of the Debt
      or
      any other charges affecting all or any portion of the Cross-collateralized
      Property as Lender in its sole discretion may determine; provided,
      however,
      that no
      such application shall be deemed to have been made by operation of law or
      otherwise until actually made by Lender as herein provided.

     

    Section
      5.13. Loss
      Proceeds.
      In the
      event of a casualty to the Property, unless Lender elects or is required
      pursuant to Article III hereof to make all of the Insurance Proceeds available
      to Mortgagor for restoration, Lender and Mortgagor shall cause all such
      Insurance Proceeds to be paid by the insurer directly to the Central Account,
      whereupon Lender shall, after deducting Lender’s reasonable costs of recovering
      and paying out such Insurance Proceeds, including without limitation, reasonable
      attorneys’ fees, apply the same to reduce the Debt in accordance with the terms
      of the Note; provided,
      however,
      that if
      Lender elects, or is deemed to have elected, or is required to make the
      Insurance Proceeds available for restoration, all Insurance Proceeds in respect
      of rent loss, business interruption or similar coverage shall be maintained
      in
      the Central Account, to be applied by Lender in the manner as Rent received
      with
      respect to the operation of the Property; provided,
      further,
      however,
      that in
      the event that the Insurance Proceeds with respect to rent loss, business
      interruption or similar insurance policy are paid in a lump sum in advance,
      Lender shall hold such Insurance Proceeds in a segregated interest-bearing
      escrow account, which shall be an Eligible Account, shall estimate, in Lender’s
      reasonable discretion, the number of months required for Mortgagor to restore
      the damage caused by the casualty, shall divide the aggregate rent loss,
      business interruption or similar Insurance Proceeds by such number of months,
      and shall disburse from such bank account into the Central Account each month
      during the performance of such restoration such monthly installment of said
      Insurance Proceeds. In the event that Insurance Proceeds are to be applied
      toward restoration, Lender shall hold such funds in a segregated bank account
      at
      the Bank, which shall be an Eligible Account, and shall disburse same in
      accordance with the provisions of Section 3.04 hereof. Unless Lender elects,
      or
      is required pursuant to Section 6.01 hereof to make all of the Condemnation
      Proceeds available to Mortgagor for restoration, Lender and Mortgagor shall
      cause all such Condemnation Proceeds to be paid to the Central Account,
      whereupon Lender shall, after deducting Lender’s reasonable costs of recovering
      and paying out such Condemnation Proceeds, including without limitation,
      reasonable attorneys’ fees, apply same to reduce the Debt in accordance with the
      terms of the Note; provided,
      however,
      that
      any Condemnation Proceeds received in connection with a temporary Taking shall
      be maintained in the Central Account, to be applied by Lender in the same manner
      as Rent received with respect to the operation of the Property; provided,
      further,
      however,
      that in
      the event that the Condemnation Proceeds of any temporary Taking are paid in
      a
      lump sum in advance, Lender shall hold such Condemnation Proceeds in a
      segregated interest-bearing bank account, which shall be an Eligible Account,
      shall estimate, in Lender’s reasonable discretion, the number of months that the
      Property shall be affected by such temporary Taking, shall divide the aggregate
      Condemnation Proceeds in connection with such temporary Taking by such number
      of
      months, and shall disburse from such bank account into the Central Account
      each
      month during the pendency of such temporary Taking such monthly installment
      of
      said Condemnation Proceeds. In the event that Condemnation Proceeds are to
      be
      applied toward restoration, Lender shall hold such funds in a segregated bank
      account at the Bank, which shall be an Eligible Account, and shall disburse
      same
      in accordance with the provisions of Section 3.04 hereof. If any Loss Proceeds
      are received by Mortgagor, such Loss Proceeds shall be received in trust for
      Lender, shall be segregated from other funds of Mortgagor, and shall be
      forthwith paid into the Central Account, or paid to Lender to hold in a
      segregated bank account at the Bank, in each case to be applied or disbursed
      in
      accordance with the foregoing. Any Loss Proceeds made available to Mortgagor
      for
      restoration in accordance herewith, to the extent not used by Mortgagor in
      connection with, or to the extent they exceed the cost of, such restoration,
      shall be paid to Mortgagor promptly following the completion of the
      Work.

     

    
      
        
        

      

      
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    ARTICLE
      VI:   CONDEMNATION

     

    Section
      6.01. Condemnation.
      (a)
      Mortgagor shall notify Lender promptly of the commencement or threat of any
      Taking of any Individual Property or any portion thereof. Lender is hereby
      irrevocably appointed as Mortgagor’s attorney-in-fact, coupled with an interest,
      with exclusive power to collect, receive and retain the proceeds of any such
      Taking and to make any compromise or settlement in connection with such
      proceedings (subject to Mortgagor’s reasonable approval, except after the
      occurrence of an Event of Default, in which event Mortgagor’s approval shall not
      be required), subject to the provisions of this Security Instrument; provided,
      however, that Mortgagor may participate in any such proceedings and shall be
      authorized and entitled to compromise or settle any such proceeding with respect
      to Condemnation Proceeds in an amount less than five percent (5%) of the
      Allocated Loan Amount. Mortgagor shall execute and deliver to Lender any and
      all
      instruments reasonably required in connection with any such proceeding promptly
      after request therefor by Lender. Except as set forth above, Mortgagor shall
      not
      adjust, compromise, settle or enter into any agreement with respect to such
      proceedings without the prior consent of Lender. All Condemnation Proceeds
      are
      hereby assigned to and shall be paid to Lender. With respect to Condemnation
      Proceeds in an amount in excess of five percent (5%) of the Allocated Loan
      Amount, Mortgagor hereby authorizes Lender to compromise, settle, collect and
      receive such Condemnation Proceeds, and to give proper receipts and acquittance
      therefor. Subject to the provisions of this Article VI, Lender may apply such
      Condemnation Proceeds (less any cost to Lender of recovering and paying out
      such
      proceeds, including, without limitation, reasonable attorneys’ fees and
      disbursements and costs allocable to inspecting any repair, restoration or
      rebuilding work and the plans and specifications therefor) toward the payment
      of
      the Debt or to allow such proceeds to be used for the Work.

     

    
      
        
        

      

      
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    (b) “Substantial
      Taking”
shall
      mean (i) a Taking of such portion of the applicable Individual Property that
      would, in Lender’s reasonable discretion, leave remaining a balance of the
      applicable Individual Property which would not under then current economic
      conditions, applicable Development Laws and other applicable Legal Requirements,
      permit the restoration of the applicable individual Property so as to constitute
      a complete, rentable facility of the same type as existed prior to the Taking,
      having adequate ingress and egress to the applicable individual Property, the
      Leases of which covering 75% of the square footage of the Individual Property
      immediately prior to such Taking will not be terminated due to the Taking during
      and following the restoration of such individual Property and being capable
      of
      producing a projected Net Operating Income (as reasonably determined by Lender)
      yielding a projected Debt Service Coverage therefrom for the next two (2) years
      of not less than the Required Debt Service Coverage or (ii) a Taking which
      occurs less than two (2) years prior to the Maturity Date or (iii) a Taking
      which Lender is not reasonably satisfied could be repaired within twelve (12)
      months and at least six (6) months prior to the Maturity Date or (iv) a Taking
      of fifteen percent (15%) or more of the Individual Property.

     

    (c) In
      the
      case of a Substantial Taking, Condemnation Proceeds shall be payable to Lender
      in reduction of the Debt but without any prepayment fee or charge of any kind
      and, if Mortgagor elects to apply any Condemnation Proceeds it may receive
      pursuant to this Security Instrument to the payment of the Debt, Mortgagor
      may
      prepay the balance of the Debt without any prepayment fee or charge of any
      kind.

     

    (d) In
      the
      event of a Taking which is less than a Substantial Taking, Mortgagor at its
      sole
      cost and expense (whether or not the award shall have been received or shall
      be
      sufficient for restoration) shall proceed diligently to restore, or cause the
      restoration of, the remaining Improvements not so taken, to maintain a complete,
      rentable, self-contained fully operational facility of the same sort as existed
      prior to the Taking in as good a condition as is reasonably possible. In the
      event of such a Taking, Lender shall receive the Condemnation Proceeds and
      shall
      pay over the same:

     

    (i) first,
      provided no Default shall have occurred and be continuing, to Mortgagor to
      the
      extent of any portion of the award as may be necessary to pay the reasonable
      cost of restoration of the Improvements remaining, and

     

    
      
        
        

      

      
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    (ii) second,
      to Lender, in reduction of the Debt without any prepayment premium or charge
      of
      any kind.

     

    If
      one or
      more Takings in the aggregate create a Substantial Taking, then, in such event,
      the sections of this Article VI above applicable to Substantial Takings shall
      apply.

     

    (e) In
      the
      event Lender is obligated to or elects to make Condemnation Proceeds available
      for the restoration or rebuilding of the Property, such proceeds shall be
      disbursed in the manner and subject to the conditions set forth in Section
      3.04(b) hereof. If, in accordance with this Article VI, any Condemnation
      Proceeds are used to reduce the Debt, they shall be applied in accordance with
      the provisions of the Note and, with no prepayment fee or charge of any kind.
      Mortgagor shall promptly execute and deliver all instruments requested by Lender
      for the purpose of confirming the assignment of the Condemnation Proceeds to
      Lender. Application of all or any part of the Condemnation Proceeds to the
      Debt
      shall be made in accordance with the provisions of Sections 3.06 and 3.07
      hereof. No application of the Condemnation Proceeds to the reduction of the
      Debt
      shall have the effect of releasing the lien of this Security Instrument until
      the remainder of the Debt has been paid in full. In the case of any Taking,
      Lender, to the extent that Lender has not been reimbursed by Mortgagor, shall
      be
      entitled, as a first priority out of any Condemnation Proceeds, to reimbursement
      for all costs, fees and expenses reasonably incurred in the determination and
      collection of any Condemnation Proceeds. All Condemnation Proceeds deposited
      with Lender pursuant to this Section, until expended or applied as provided
      herein, shall be held in accordance with Section 3.04(b) hereof and shall
      constitute additional security for the payment of the Debt and the payment
      and
      performance of Mortgagor’s obligations, but Lender shall not be deemed a trustee
      or other fiduciary with respect to its receipt of such Condemnation Proceeds
      or
      any part thereof. All awards so deposited with Lender shall be held by Lender
      in
      an Eligible Account, but Lender makes no representation or warranty as to the
      rate or amount of interest, if any, which may accrue on any such deposit and
      shall have no liability in connection therewith. For purposes hereof, any
      reference to the award shall be deemed to include interest, if any, which has
      accrued thereon.

     

    ARTICLE
      VII:   LEASES
      AND RENTS

     

    Section
      7.01.  Assignment.
      (a)
Mortgagor
      does hereby bargain, sell, assign and set over unto Lender, all of Mortgagor’s
      interest in the Leases and Rents. The assignment of Leases and Rents in this
      Section 7. 01 is a collateral and conditional assignment from Mortgagor to
      Lender and the existence or exercise of Mortgagor’s license (revocable by Lender
      only during the continuance of an Event of Default) to collect Rent shall not
      operate to subordinate this assignment to any subsequent assignment. The
      exercise by Lender of any of its rights or remedies pursuant to this Section
      7.01 shall not be deemed to make Lender a Lender-in-possession. In addition
      to
      the provisions of this Article VII, Mortgagor shall comply with all terms,
      provisions and conditions of the Assignment.

     

    (b) So
      long
      as there shall exist and be continuing no Event of Default, Mortgagor shall
      have
      a revocable license to take all actions with respect to all Leases and Rents,
      present and future, including the right to collect and use the Rents, subject
      to
      the terms of this Security Instrument and the Assignment.

     

    
      
        
        

      

      
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    (c) In
      a
      separate instrument Mortgagor shall, as requested from time to time by Lender,
      assign to Lender or its nominee by specific or general assignment, any and
      all
      Leases, such assignments to be in form and content reasonably acceptable to
      Lender, but subject to the provisions of Section 7.01(b) hereof. Mortgagor
      agrees to deliver to Lender, within thirty (30) days after Lender’s request, a
      true and complete copy of every Lease and, within ten (10) Business Days after
      Lender’s request, a complete list of the Leases, certified by Mortgagor to be
      true, accurate and complete and stating the demised premises, the names of
      the
      lessees, the Rent payable under the Leases, the date to which such Rents have
      been paid, the material terms of the Leases, including, without limitation,
      the
      dates of occupancy, the dates of expiration, any Rent concessions, work
      obligations or other inducements granted to the lessees thereunder, and any
      renewal options.

     

    (d) The
      rights of Lender contained in this Article VII, the Assignment or any other
      assignment of any Lease shall not result in any obligation or liability of
      Lender to Mortgagor or any lessee under a Lease or any party claiming through
      any such lessee or constitute an assumption by Lender of any such liability
      or
      obligation.

     

    (e) At
      any
      time during the continuance of an Event of Default, the license granted
      hereinabove may be revoked by Lender, and Lender or a receiver appointed in
      accordance with this Security Instrument may enter upon the Property, and
      collect, retain and apply the Rents toward payment of the Debt in such priority
      and proportions as Lender in its sole discretion shall deem proper.

     

    (f) In
      addition to the rights which Lender may have herein, upon the occurrence and
      during the continuance of any Event of Default, Lender, at its option, may
      require Mortgagor to pay monthly in advance to Lender, or any receiver appointed
      to collect the Rents, the fair and reasonable rental value for the use and
      occupation of such part of the Property as may be used and occupied by Mortgagor
      and may require Mortgagor to vacate and surrender possession of the Property
      to
      Lender or to such receiver and, in default thereof, Mortgagor may be evicted
      by
      summary proceedings or otherwise.

     

    Section
      7.02.  Management
      of Property. 

     

    (a) Mortgagor
      shall manage the Property or cause the Property to be managed in a manner which
      is consistent with the Approved Manager Standard. The Manager (other than
      Mortgagor) shall at all times meet the Minimum Manager Credentials. All Space
      Leases shall provide for rental rates comparable to then existing local market
      rates and terms and conditions which constitute good and prudent business
      practice and are consistent with prevailing market terms and conditions, and
      shall be arm’s length transactions. All Space Leases shall be on a form
      previously approved by Lender with such commercially reasonable changes as
      are
      consistent with the standards of other similarly situated owners when compared
      with terms and conditions of leases in similarly situated industrial centers
      in
      similar context at the time in question, taking into account, inter alia,
      the
      type, creditworthiness and bargaining power of the prospective tenant and the
      location and size of the space covered by the proposed Lease, and shall provide
      that they are subordinate to this Security Instrument and that the lessees
      thereunder attorn to Lender. Mortgagor shall deliver copies of all Leases,
      amendments, modifications and renewals thereof to Lender. All proposed Space
      Leases for the Property shall be subject to the prior written approval of
      Lender, not to be unreasonably withheld or delayed, provided, however that
      Mortgagor may enter into new Space Leases with unrelated third parties without
      obtaining the prior consent of Lender provided that: (i) the leases conform
      with
      the requirements of this Section 7.02; (ii) the space to be leased pursuant
      to
      such proposed Lease, together with any other space which is leased to the
      proposed tenant or an Affiliate thereof, is not a Major Space Lease; and (iii)
      the term of the proposed lease does not exceed six (6) years and, inclusive
      of
      all extensions and renewals, does not exceed ten (10) years. Lender’s consent to
      any Lease shall be deemed given, if the first correspondence from Mortgagor
      to
      Lender requesting such approval is in an envelope marked “PRIORITY” and contains
      a bold-faced, conspicuous legend at the top of the first page thereof stating
      that “IF YOU FAIL TO RESPOND TO OR TO EXPRESSLY DENY THIS REQUEST FOR APPROVAL
      IN WRITING WITHIN FIVE (5) BUSINESS DAYS, YOUR APPROVAL MAY BE DEEMED GIVEN”,
      and is accompanied by the information and documents required above and any
      other
      information reasonably requested by Lender in writing prior to the expiration
      of
      such five (5) Business Day period in order to adequately review the same has
      been delivered and, if Lender fails to respond or to expressly deny such request
      for approval in writing within the five (5) Business Day period a second notice
      is delivered to Lender from Mortgagor in an envelope marked “PRIORITY”
requesting approval containing a bold-faced, conspicuous legend at the top
      of
      the first page thereof stating that “IF YOU FAIL TO RESPOND TO OR EXPRESSLY DENY
      THIS REQUEST FOR APPROVAL IN WRITING WITHIN FIVE (5) BUSINESS DAYS, YOUR
      APPROVAL SHALL BE DEEMED GIVEN” and Lender fails to respond or to expressly deny
      each request for approval within the five (5) Business Day period.

     

    
      
        
        

      

      
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    (b) Mortgagor
      (i) shall observe and perform all of its material obligations under the Leases
      pursuant to applicable Legal Requirements and shall not do or permit to be
      done
      anything to impair the value of the Leases as security for the Debt; (ii) shall
      promptly send copies to Lender of all notices of default which Mortgagor shall
      receive under the Leases; (iii) shall, consistent with the Approved Manager
      Standard, enforce all of the terms, covenants and conditions contained in the
      Leases to be observed or performed; (iv) shall not collect any of the Rents
      under the Leases more than one (1) month in advance (except that Mortgagor
      may
      collect in advance (A) such security deposits as are permitted pursuant to
      applicable Legal Requirements and are commercially reasonable in the prevailing
      market and (B) all rent deemed “additional rent” under the Leases); (v) shall
      not execute any other assignment of lessor’s interest in the Leases or the Rents
      except as otherwise expressly permitted pursuant to this Security Instrument;
      (vi) shall not cancel or terminate any of the Space Leases or accept a surrender
      thereof in any manner inconsistent with the Approved Manager Standard; (vii)
      shall not convey, transfer or suffer or permit a conveyance or transfer of
      all
      or any part of the Premises or the Improvements or of any interest therein
      so as
      to effect a merger of the estates and rights of, or a termination or diminution
      of the obligations of, lessees thereunder; (viii) shall not alter, modify
      or change the terms of any guaranty of any Major Space Lease or cancel or
      terminate any such guaranty in any manner inconsistent with the Approved Manager
      Standard; (ix) shall, in accordance with the Approved Manager Standard, make
      all
      reasonable efforts to seek lessees for space as it becomes vacant and enter
      into
      Leases in accordance with the terms hereof; (x) shall not materially modify,
      alter or amend any Major Space Lease or Property Agreement without Lender’s
      consent, which consent will not be unreasonably withheld or delayed; (xi) shall
      notify Lender promptly if any Pad Owner shall cease business operations or
      of
      the occurrence of any event of which it becomes aware affecting a Pad Owner
      or
      its property which might have any material effect on the Property; and (xii)
      shall, without limitation to any other provision hereof, execute and deliver
      at
      the reasonable request of Lender all such further assurances, confirmations
      and
      assignments in connection with the Property as are required herein and as Lender
      shall from time to time reasonably require.

     

    
      
        
        

      

      
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    (c) All
      security deposits of lessees, whether held in cash or any other form, shall
      be
      treated by Mortgagor as trust funds, shall not be commingled with any other
      funds of Mortgagor and, if cash, shall be deposited by Mortgagor in the Security
      Deposit Account. Any bond or other instrument which Mortgagor is permitted
      to
      hold in lieu of cash security deposits under applicable Legal Requirements
      shall
      be maintained in full force and effect unless replaced by cash deposits as
      hereinabove described shall, if permitted pursuant to Legal Requirements, at
      Lender’s option, name Lender as payee or mortgagee thereunder or be fully
      assignable to Lender and shall, in all respects, comply with applicable Legal
      Requirements and otherwise be reasonably satisfactory to Lender. Mortgagor
      shall, upon request, provide Lender with evidence reasonably satisfactory to
      Lender of Mortgagor’s compliance with the foregoing. During the continuance of
      any Event of Default, Mortgagor shall, upon Lender’s request, if permitted by
      applicable Legal Requirements, turn over the security deposits (and any interest
      thereon) to Lender to be held by Lender in accordance with the terms of the
      Leases and all Legal Requirements.

     

    (d) Lender
      shall, upon request of Mortgagor, enter into a subordination, nondisturbance
      and
      attornment agreement (“SNDA”)
      with
      respect to each proposed tenant entering into a Lease in compliance with the
      requirements of this Security Instrument provided that such Lease is (i) with
      a
      tenant under a Major Space Lease at an Individual Property or is with an
      existing tenant pursuant to a Lease dated prior to the Closing Date which
      provides that the tenant thereunder is entitled to an SNDA or with any tenant
      which is renting space on a national basis which leases at least 2,000 square
      feet of the Premises, (ii) with a tenant reasonably approved by Lender in
      writing prior to Mortgagor’s execution of any such Lease and (iii) on the
      standard form of Lease previously approved in writing by Lender with such
      commercially reasonable changes as are consistent with the Approved Manager
      Standard. Any SNDA executed by Lender shall be in Lender’s then standard form
      with such changes as Lender shall agree to and provide that in the event Lender
      or any purchaser at foreclosure shall succeed to Mortgagor’s interest in the
      Property, the Leases of such tenants will remain in full force and effect and
      be
      binding upon Lender or such purchaser and such tenant as though each were
      original parties thereto.

     

    (e) Mortgagor
      covenants and agrees with Lender that (i) the Property will be managed at all
      times by Mortgagor in accordance with Mortgagor’s organizational documents or by
      a Manager pursuant to a management agreement approved by Lender (the
“Management
      Agreement”),
      (ii)
      after Mortgagor has knowledge of a fifty percent (50%) or more change in control
      of the ownership of Manager, Mortgagor will promptly give Lender notice thereof
      (a “Manager
      Control Notice”)
      and
      (iii) the Management Agreement (or in the case Mortgagor is acting as Manager,
      Mortgagor’s right to manage the Property) may be terminated by Lender at any
      time for cause (including, but not limited to, Manager’s gross negligence,
      misappropriation of funds, willful misconduct or fraud) or at any time following
      (A) the occurrence of an Event of Default, or (B) the receipt of a Manager
      Control Notice, or (C) the date upon which the Debt Service Coverage is 1.10:1.0
      or less. In the event of any such termination, a substitute managing agent
      shall
      be appointed by Mortgagor, subject to Lender’s prior written approval, which may
      be given or withheld in Lender’s sole discretion and which may be conditioned
      on, inter alia, a letter from each Rating Agency confirming that any rating
      issued by the Rating Agency in connection with a Securitization will not, as
      a
      result of the proposed change of Manager, be downgraded from the then current
      ratings thereof, qualified or withdrawn. Mortgagor may from time to time appoint
      a successor manager to manage the Property with Lender’s prior written consent
      which consent shall not be unreasonably withheld or delayed, provided that
      any
      such successor manager shall be a reputable management company which meets
      the
      Minimum Manager Credentials and each Rating Agency shall have confirmed in
      writing that any rating issued by the Rating Agency in connection with a
      Securitization will not, as a result of the proposed change of Manager, be
      downgraded from the then current ratings thereof, qualified or withdrawn.
      Mortgagor further covenants and agrees that Mortgagor shall require Manager
      (or
      any successor managers) to maintain at all times during the term of the Loan
      worker’s compensation insurance as required by Governmental
      Authorities.

     

    
      
        
        

      

      
        -72-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VIII:   MAINTENANCE
      AND REPAIR

     

    Section
      8.01. Maintenance
      and Repair of the Property; Alterations; Replacement of Equipment. Mortgagor
      hereby covenants and agrees:

     

    (a) Mortgagor
      shall not (i) desert or abandon the Property, (ii) change the use of the
      Property or cause or permit the use or occupancy of any part of the Property
      to
      be discontinued if such discontinuance or use change would violate any zoning
      or
      other law, ordinance or regulation; (iii) consent to or seek any lowering of
      the
      zoning classification, or greater zoning restriction affecting the Property;
      or
      (iv) take any steps whatsoever to convert the Property, or any portion thereof,
      to a condominium or cooperative form of ownership.

     

    (b) Mortgagor
      shall, at its expense, (i) take good care of the Property including grounds
      generally, and utility systems and sidewalks, roads, alleys, and curbs therein,
      and shall keep the same in good, safe and insurable condition and in compliance
      with all applicable Legal Requirements, (ii) promptly make or cause to be made
      all repairs to the Property, above grade and below grade, interior and exterior,
      structural and nonstructural, ordinary and extraordinary, unforeseen and
      foreseen, and maintain the Property in a manner appropriate for the facility
      and
      (iii) not commit or suffer to be committed any waste of the Property or do
      or
      suffer to be done anything which will increase the risk of fire or other hazard
      to the Property or impair the value thereof. Mortgagor shall keep the sidewalks,
      vaults, gutters and curbs comprising, or adjacent to, the Property, clean and
      free from dirt, snow, ice, rubbish and obstructions. All repairs made by
      Mortgagor shall be made with first-class materials, in a good and workmanlike
      manner, shall be equal or better in quality and class to the original work
      and
      shall comply with all applicable Legal Requirements and Insurance Requirements.
      To the extent any of the above obligations are obligations of tenants under
      Space Leases or other Persons under Property Agreements, Mortgagor may fulfill
      its obligations hereunder by causing such tenants or other Persons, as the
      case
      may be, to perform their obligations thereunder. As used herein, the terms
      “repair” and “repairs” shall be deemed to include all necessary
      replacements.

     

    
      
        
        

      

      
        -73-

        
          

        

      

      
        
        

      

    

     

    (c) Mortgagor
      shall, except in connection with tenant improvement work under Space Leases
      entered into in accordance with the terms of this Security Instrument, not
      demolish, remove, construct, or, except as otherwise expressly provided herein,
      restore, or alter the Property or any portion thereof which could diminish
      the
      value of the Property nor consent to or permit any such demolition, removal,
      construction, restoration, addition or alteration which would diminish the
      value
      of the Property without Lender’s prior written consent in each instance, which
      consent shall not be unreasonably withheld or delayed.

     

    (d) Mortgagor
      represents and warrants to Lender that (i) there are no fixtures, machinery,
      apparatus, tools, equipment or articles of personal property attached or
      appurtenant to, or located on the Property, except for the Equipment and
      equipment leased by Mortgagor for the management, operation or maintenance
      of
      the Property in accordance with the Loan Documents; (ii) the Equipment and
      the
      leased equipment constitute all of the fixtures, machinery, apparatus, tools,
      equipment and articles of personal property necessary to the proper operation
      and maintenance of the Property; and (iii) all of the Equipment is free and
      clear of all liens, except for the lien of this Security Instrument and the
      Permitted Encumbrances. All right, title and interest of Mortgagor in and to
      all
      extensions, improvements, betterments, renewals and appurtenances to the
      Property hereafter acquired by, or released to, Mortgagor or constructed,
      assembled or placed by Mortgagor in the Property, and all changes and
      substitutions of the security constituted thereby, shall be and, in each such
      case, without any further mortgage, encumbrance, conveyance, assignment or
      other
      act by Lender or Mortgagor, shall become subject to the lien and security
      interest of this Security Instrument as fully and completely, and with the
      same
      effect, as though now owned by Mortgagor and specifically described in this
      Security Instrument, but at any and all times Mortgagor shall execute and
      deliver to Lender any documents Lender may reasonably deem necessary or
      appropriate for the purpose of specifically subjecting the same to the lien
      and
      security interest of this Security Instrument.

     

    (e) Notwithstanding
      the provisions of this Security Instrument to the contrary, Mortgagor shall
      have
      the right, at any time and from time to time, to remove and dispose of Equipment
      which may have become obsolete or unfit for use or which is no longer useful
      in
      the management, operation or maintenance of the Property. Mortgagor shall
      promptly replace any such Equipment so disposed of or removed with other
      Equipment of equal value and utility, free of any security interest or superior
      title, liens or claims; except that, if replacement of the Equipment so removed
      or disposed of is not necessary or desirable for the proper management,
      operation or maintenance of the Property, Mortgagor shall not be required to
      replace the same. All such replacements or additional equipment shall be deemed
      to constitute “Equipment” and shall be covered by the security interest herein
      granted.

     

    (f) Mortgagor
      shall diligently take all actions required to cause the temporary certificate
      of
      occupancy relating to the Property known as 5405 Bandera Road to be renewed
      prior to each and every expiration thereof until the permanent, unconditional
      certificate of occupancy is issued. Borrower shall provide quarterly updates
      to
      Lender of the progress of the work required to obtain the permanent,
      unconditional certificate of occupancy, inspections or approval processes and
      shall promptly provide Lender with copies of evidence of the removal of any
      and
      all violations affecting the Property, if any, and any new temporary
      certificates of occupancy and the permanent, unconditional certificate of
      occupancy upon issuance of same.

     

    
      
        
        

      

      
        -74-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IX:   TRANSFER
      OR ENCUMBRANCE OF THE PROPERTY

     

    Section
      9.01. Other
      Encumbrances.
      Mortgagor shall not further encumber or permit the further encumbrance in any
      manner (whether by grant of a pledge, security interest or otherwise) of the
      Property or any part thereof or interest therein, including, without limitation,
      of the Rents therefrom. In addition, Mortgagor shall not further encumber and
      shall not permit the further encumbrance in any manner (whether by grant of
      a
      pledge, security interest or otherwise) of Mortgagor or any direct or indirect
      interest in Mortgagor except as expressly permitted pursuant to this Security
      Instrument. 

     

    Section
      9.02. No
      Transfer.
      (a)
      Mortgagor acknowledges that Lender has examined and relied on the expertise
      of
      Mortgagor and, if applicable, each General Partner, in owning and operating
      properties such as the Property in agreeing to make the Loan and will continue
      to rely on Mortgagor’s ownership of the Property as a means of maintaining the
      value of the Property as security for repayment of the Debt and Mortgagor
      acknowledges that Lender has a valid interest in maintaining the value of the
      Property. Mortgagor shall not Transfer, nor permit any Transfer, without the
      prior written consent of Lender, which consent Lender may withhold in its sole
      and absolute discretion other than pursuant to Space Leases as provided herein.
      Lender shall not be required to demonstrate any actual impairment of its
      security or any increased risk of default hereunder in order to declare the
      Debt
      immediately due and payable upon a Transfer without Lender’s consent. This
      provision shall apply to every Transfer regardless of whether voluntary or
      not,
      or whether or not Lender has consented to any previous Transfer.

     

    (b) Notwithstanding
      any provision of this Security Instrument to the contrary, no person or entity
      may, after the date hereof, become an owner of a direct or indirect interest
      in
      any entity comprising Mortgagor, which interest exceeds forty-nine percent
      (49%), without Lender’s written consent in each instance and receipt by Lender
      of (x) written confirmation that any rating issued by such Rating Agency in
      connection with the Securitization will not, as a result of the proposed
      Transfer, be downgraded from the then current ratings thereof, qualified or
      withdrawn, and (y) a substantive non-consolidation opinion in form and
      substance acceptable to Lender.

     

    Section
      9.03. Due
      on
      Sale.
      Lender
      may declare the Debt immediately due and payable upon any Transfer or further
      encumbrance without Lender’s consent without regard to whether any impairment of
      its security or any increased risk of default hereunder can be demonstrated.
      This provision shall apply to every Transfer or further encumbrance of the
      Property or any part thereof or interest in the Property or in Mortgagor
      regardless of whether voluntary or not, or whether or not Lender has consented
      to any previous Transfer or further encumbrance of the Property or interest
      in
      Mortgagor.

     

    Section
      9.04. Permitted
      Transfer.
      Notwithstanding the foregoing provisions of this Article IX, the sale,
      conveyance or transfer of the Cross-collateralized Properties in their entirety,
      except as otherwise set forth in Section 9.04(B) (hereinafter, “Sale”)
      shall
      be permitted hereunder provided that each of the following terms and conditions
      are satisfied:

     

    
      
        
        

      

      
        -75-

        
          

        

      

      
        
        

      

    

     

    (a) no
      Event
      of Default is then continuing hereunder or under any of the other Loan Documents
      and no O&M Operative Period shall have commenced and be
      continuing;

     

    (b) Lender
      shall have consented to the Sale, provided, however, such consent shall not
      be
      unreasonably withheld and, if the proposed Sale is to occur at any time after
      a
      Securitization, each Rating Agency shall have delivered written confirmation
      that any rating issued by such Rating Agency in connection with the
      Securitization will not, as a result of the proposed Sale, be downgraded from
      the then current ratings thereof, qualified or withdrawn; provided, however,
      that no request for consent to the Sale will be entertained by Lender if the
      proposed Sale is to occur within sixty (60) days of any contemplated sale of
      the
      Loan by Lender, whether in connection with a Securitization or
      otherwise;

     

    (c) Mortgagor
      gives Lender written notice of the terms of the proposed Sale not less than
      forty-five (45) days before the date on which such Sale is scheduled to close
      and, concurrently therewith, gives Lender (i) all such information concerning
      the proposed transferee of the Property (hereinafter, “Buyer”)
      as
      Lender would require in evaluating an initial extension of credit to a borrower
      and Lender determines, in its reasonable discretion that the Buyer is acceptable
      to Lender in all respects and (ii) a non-refundable application fee equal to
      $7,500; 

     

    (d) Mortgagor
      pays Lender, concurrently with the closing of such Sale, a non-refundable
      assumption fee in an amount equal to (x) one half of one percent (.5%) of the
      then outstanding Loan Amount for the first such Sale and (y) one percent (1.0%)
      of the then outstanding Loan Amount for each Sale thereafter, together with
      all
      reasonable out-of-pocket costs and expenses, including, without limitation,
      reasonable attorneys’ fees, incurred by Lender in connection with the
      Sale;

     

    (e) Buyer
      assumes all of the obligations under the Loan Documents and, prior to or
      concurrently with the closing of such Sale, Buyer executes, without any cost
      or
      expense to Lender, such documents and agreements as Lender shall reasonably
      require to evidence and effectuate said assumption and delivers such legal
      opinions as Lender may require;

     

    (f) Mortgagor
      and Buyer execute, without any cost or expense to Lender, new financing
      statements or financing statement amendments and any additional documents
      reasonably requested by Lender;

     

    (g) Mortgagor
      delivers to Lender, without any cost or expense to Lender, such endorsements
      to
      Lender’s title insurance policy, hazard insurance policy endorsements or
      certificates and other similar materials as Lender may deem necessary at the
      time of the Sale, all in form and substance reasonably satisfactory to Lender,
      including, without limitation, an endorsement or endorsements to Lender’s title
      insurance policy insuring the lien of this Security Instrument, extending the
      effective date of such policy to the date of execution and delivery (or, if
      later, of recording) of the assumption agreement referenced above in
      subparagraph (e) of this Section, with no additional exceptions added to such
      policy, and insuring that fee simple title to the Property is vested in
      Buyer;

     

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

     

    
      
        
        

      

      
        -76-

        
          

        

      

      
        
        

      

    

     

    (i) subject
      to the provisions of Section 18.32 hereof, such Sale is not construed so as
      to
      relieve Mortgagor of any personal liability under the Note or any of the other
      Loan Documents for any acts or events occurring or obligations arising prior
      to
      or simultaneously with the closing of such Sale, and Mortgagor executes, without
      any cost or expense to Lender, such documents and agreements as Lender shall
      reasonably require to evidence and effectuate the ratification of said personal
      liability; provided that, upon the closing of such Sale, if Mortgagor and Buyer
      have satisfied each of the terms of this Section 9.04, as reasonably determined
      by Lender, Lender shall release Mortgagor from all obligations arising after
      the
      closing of such Sale. Additionally, if a replacement guarantor acceptable to
      Lender in its reasonable discretion executes a guaranty identical in substance
      to the Indemnity and Guaranty, Lender shall release the existing Guarantor
      from
      any liabilities under the Indemnity and Guaranty arising after the closing
      of
      such Sale;

     

    (j) such
      Sale
      is not construed so as to relieve any Guarantor of its obligations under any
      guaranty or indemnity agreement executed in connection with the Loan and each
      such Guarantor executes, without any cost or expense to Lender, such documents
      and agreements as Lender shall reasonably require to evidence and effectuate
      the
      ratification of each such guaranty agreement, provided that if Buyer or a party
      associated with Buyer approved by Lender in its sole discretion assumes the
      obligations of the current Guarantor under its guaranty and Buyer or such party
      associated with Buyer, as applicable, executes, without any cost or expense
      to
      Lender, a new guaranty in similar form and substance to the existing guaranty
      and otherwise satisfactory to Lender, then Lender shall release the current
      Guarantor from all obligations arising under its guaranty after the closing
      of
      such Sale; and

     

    (k) Buyer
      is
      a Single Purpose Entity and Lender receives a non-consolidation opinion relating
      to Buyer from Buyer’s counsel, which opinion is in form and substance acceptable
      to Lender.

     

     

    ARTICLE
      X:   CERTIFICATES

     

    Section
      10.01. Estoppel
      Certificates.
      (a)
After
      request by Lender, Mortgagor, within fifteen (15) days and at its expense,
      will
      furnish Lender with a statement, duly acknowledged and certified, setting forth
      (i) the amount of the original principal amount of the Note, and the unpaid
      principal amount of the Note, (ii) the rate of interest of the Note, (iii)
      the
      date payments of interest and/or principal were last paid, (iv) any offsets
      or
      defenses to the payment of the Debt, and if any are alleged, the nature thereof,
      (v) that the Note and this Security Instrument have not been modified or if
      modified, giving particulars of such modification and (vi) to the best of
      Mortgagor’s knowledge, that there has occurred and is then continuing no Default
      or if such Default exists, the nature thereof, the period of time it has
      existed, and the action being taken to remedy such Default.

     

    
      
        
        

      

      
        -77-

        
          

        

      

      
        
        

      

    

     

    (b) Within
      fifteen (15) days after written request by Mortgagor, Lender shall furnish
      to
      Mortgagor a written statement confirming the amount of the Debt, the maturity
      date of the Note and the date to which interest has been paid.

     

    (c) Mortgagor
      shall use all commercially reasonable efforts to obtain estoppel certificates
      from tenants in form and substance reasonably acceptable to Lender or in form
      and substance as provided in the applicable Leases, but, provided no Event
      of
      Default has occurred and is continuing, in no event shall Mortgagor be required
      to deliver estoppel certificates more than twice during any Loan
      Year.

     

    ARTICLE
      XI:   NOTICES

     

    Section
      11.01.   Notices.
      Any
      notice, demand, statement, request or consent made hereunder shall be in writing
      and delivered personally or sent to the party to whom the notice, demand or
      request is being made by Federal Express or other nationally recognized
      overnight delivery service, as follows and shall be deemed given when delivered
      personally or one (1) Business Day after being deposited with Federal Express
      or
      such other nationally recognized delivery service:

     

    If
      to
      Lender: To
      Lender, at the address first written above,

     

    
      	 	
              with
                a copy to:

            	
              Winston
                & Strawn LLP

            

    

    
      	 	 	
              200
                Park Avenue

            

    

    
      	 	 	
              New
                York, New York 10166

            

    

    
      	 	 	
              Attention:
                Corey A. Tessler, Esq.

            

    

     

    
      	 	
              If
                to Mortgagor:

            	
              To
                Mortgagor,
                at the address first written above,

            

    

     

    
      	 	
              with
                a copy to:

            	
              Herrick
                Feinstein LLP

              2
                Park Avenue

              New
                York, New York 10016

              Attention:
                Sheldon Chanales,
                Esq.

            

    

     

    
      	 	
              and

            	
              c/o
                The Lightstone Group

              326
                Third Street

              Lakewood,
                New Jersey 08701

              Attention:
                Joseph Teichman

              Facsimile
                No.: (732)
                363-7183

            

    

     

    or
      such
      other address as either Mortgagor or Lender shall hereafter specify by not
      less
      than ten (10) days prior written notice as provided herein; provided, however,
      that notwithstanding any provision of this Article to the contrary, such notice
      of change of address shall be deemed given only upon actual receipt thereof.
      Rejection or other refusal to accept or the inability to deliver because of
      changed addresses of which no notice was given as herein required shall be
      deemed to be receipt of the notice, demand, statement, request or
      consent.

     

    
      
        
        

      

      
        -78-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XII:   INDEMNIFICATION

     

    Section
      12.01. Indemnification
      Covering Property.
      In
      addition, and without limitation, to any other provision of this Security
      Instrument or any other Loan Document, Mortgagor shall protect, indemnify and
      save harmless Lender and its successors and assigns, and each of their agents,
      employees, officers, directors, stockholders, partners and members
      (collectively, “Indemnified
      Parties”)
      for,
      from and against any claims, demands, penalties, fines, actual liabilities,
      settlements, actual damages, actual costs and expenses of whatever kind or
      nature, known or unknown, contingent or otherwise, whether incurred or imposed
      within or outside the judicial process, including, without limitation,
      reasonable attorneys’ fees and disbursements imposed upon or incurred by or
      asserted against any of the Indemnified Parties by reason of (a) ownership
      of
      this Security Instrument, the Assignment, the Property or any part thereof
      or
      any interest therein or receipt of any Rents; (b) any accident, injury to or
      death of any person or loss of or damage to property occurring in, on or about
      the Property or any part thereof or on the adjoining sidewalks, curbs, parking
      areas, streets or ways; (c) any use, nonuse or condition in, on or about, or
      possession, alteration, repair, operation, maintenance or management of, the
      Property or any part thereof or on the adjoining sidewalks, curbs, parking
      areas, streets or ways; (d) any failure on the part of Mortgagor to perform
      or
      comply with any of the terms of this Security Instrument or the Assignment;
      (e)
      performance of any labor or services or the furnishing of any materials or
      other
      property in respect of the Property or any part thereof; (f) any claim by
      brokers, finders or similar Persons claiming to be entitled to a commission
      in
      connection with any Lease or other transaction involving the Property or any
      part thereof; (g) any Imposition including, without limitation, any Imposition
      attributable to the execution, delivery, filing, or recording of any Loan
      Document, Lease or memorandum thereof; (h) any lien, security interest, or
      claim
      arising on or against the Property or any part thereof under any Legal
      Requirement or any liability asserted against any of the Indemnified Parties
      with respect thereto; (i) any claim arising out of or in any way relating to
      any
      tax or other imposition on the making and/or recording of this Security
      Instrument, the Note or any of the other Loan Documents unless otherwise set
      forth herein; (j) a Default under Sections 2.02(f) or 2.02(g) hereof, (k) the
      failure of any Person to file timely with the Internal Revenue Service an
      accurate Form 1099-B, Statement for Recipients of Proceeds from Real Estate,
      Broker and Barter Exchange Transactions, which may be required in connection
      with the Loan, or to supply a copy thereof in a timely fashion to the recipient
      of the proceeds of the Loan; or (l) the claims of any lessee or any Person
      acting through or under any lessee or otherwise arising under or as a
      consequence of any Lease prior to the time Lender may have taken possession
      of
      the Property. Notwithstanding the foregoing provisions of this Section 12.01
      to
      the contrary, Mortgagor shall have no obligation to indemnify the Indemnified
      Parties pursuant to this Section 12.01 for liabilities, obligations, claims,
      damages, penalties, causes of action, costs and expenses relative to the
      foregoing which result from Lender’s, and its successors’ or assigns’, willful
      misconduct or gross negligence. Any amounts payable to Lender by reason of
      the
      application of this Section 12.01 shall constitute a part of the Debt secured
      by
      this Security Instrument and the other Loan Documents and shall become
      immediately due and payable and shall bear interest at the Default Rate from
      the
      date the liability, obligation, claim, cost or expense is sustained by Lender,
      as applicable, until paid. The provisions of this Section 12.01 shall survive
      the termination of this Security Instrument whether by repayment of the Debt,
      foreclosure or delivery of a deed in lieu thereof, assignment or otherwise.
      In
      case any action, suit or proceeding is brought against any of the Indemnified
      Parties by reason of any occurrence of the type set forth in (a) through (l)
      above, Mortgagor shall, at Mortgagor’s expense, resist and defend such action,
      suit or proceeding or will cause the same to be resisted and defended by counsel
      at Mortgagor’s expense for the insurer of the liability or by counsel designated
      by Mortgagor (unless reasonably disapproved by Lender promptly after Lender
      has
      been notified of such counsel); provided,
      however,
      that
      nothing herein shall compromise the right of Lender (or any other Indemnified
      Party) to appoint its own counsel at Mortgagor’s expense for its defense with
      respect to any action which, in the reasonable opinion of Lender or such other
      Indemnified Party, as applicable, presents a conflict or potential conflict
      between Lender or such other Indemnified Party that would make such separate
      representation advisable. Any Indemnified Party will give Mortgagor prompt
      notice after such Indemnified Party obtains actual knowledge of any potential
      claim by such Indemnified Party for indemnification hereunder. The Indemnified
      Parties shall not settle or compromise any action, proceeding or claim as to
      which it is indemnified hereunder without notice to, and provided that no Event
      of Default has occurred and is continuing, consultation with,
      Mortgagor.

     

    
      
        
        

      

      
        -79-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XIII:   DEFAULTS

     

    Section
      13.01. Events
      of Default.
      The
      Debt shall become immediately due at the option of Lender upon any one or more
      of the following events (“Event
      of Default”):

     

    (a) if
      the
      final payment or prepayment premium, if any, due under the Note shall not be
      paid on Maturity;

     

    (b) if
      any
      monthly payment of interest and/or principal due under the Note (other than
      the
      sums described in (a) above) shall not be fully paid on the date upon which
      the
      same is due and payable thereunder;

     

    (c) if
      payment of any sum (other than the sums described in (a) above or (b) above)
      required to be paid pursuant to the Note, this Security Instrument or any other
      Loan Document shall not be paid within seven (7) Business Days after Lender
      delivers written notice to Mortgagor that same is due and payable thereunder
      or
      hereunder;

     

    (d) if
      Mortgagor, Guarantor or, if Mortgagor or Guarantor is a partnership, any general
      partner of Mortgagor or Guarantor, or, if Mortgagor or Guarantor is a limited
      liability company, any member of Mortgagor or Guarantor, shall institute or
      cause to be instituted any proceeding for the termination or dissolution of
      Mortgagor, Guarantor or any such general partner or member;

     

    (e) if
      the
      insurance policies required hereunder are not kept in full force and effect,
      or
      if the insurance policies are not assigned and delivered to Lender as herein
      provided;

     

    (f) if
      Mortgagor or Guarantor attempts to assign its rights under this Security
      Instrument or any other Loan Document or any interest herein or therein, or
      if
      any Transfer occurs other than in accordance with the provisions
      hereof;

     

    
      
        
        

      

      
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    (g) if
      any
      representation or warranty of Mortgagor or Guarantor made herein or in any
      other
      Loan Document or in any certificate, report, financial statement or other
      instrument or agreement furnished to Lender shall prove false or misleading
      in
      any material respect as of the date the representation or warranty was
      made;

     

    (h) if
      Mortgagor, Guarantor or any general partner of Mortgagor or Guarantor shall
      make
      an assignment for the benefit of creditors or shall admit in writing its
      inability to pay its debts generally as they become due;

     

    (i) if
      a
      receiver, liquidator or trustee of Mortgagor, Guarantor or any general partner
      of Mortgagor or Guarantor shall be appointed or if Mortgagor, Guarantor or
      their
      respective general partners shall be adjudicated a bankrupt or insolvent, or
      if
      any petition for bankruptcy, reorganization or arrangement pursuant to federal
      bankruptcy law, or any similar federal or state law, shall be filed by or
      against, consented to by, or acquiesced in by, Mortgagor, Guarantor or their
      respective general partners or if any proceeding for the dissolution or
      liquidation of Mortgagor, Guarantor or their respective general partners shall
      be instituted; however, if such appointment, adjudication, petition or
      proceeding was involuntary and not consented to by Mortgagor, Guarantor or
      their
      respective general partners, as applicable, upon the same not being discharged,
      stayed or dismissed within sixty (60) days or if Mortgagor, Guarantor or their
      respective general partners shall generally not be paying its debts as they
      become due;

     

    (j) if
      Mortgagor shall be in default beyond any notice or grace period, if any, under
      any other mortgage or deed of trust or security agreement covering any part
      of
      the Property without regard to its priority relative to this Security
      Instrument; provided, however, this provision shall not be deemed a waiver
      of
      the provisions of Article IX prohibiting further encumbrances affecting the
      Property or any other provision of this Security Instrument;

     

    (k) if
      the
      Property becomes subject (i) to any lien or security interest which is superior
      to the lien of this Security Instrument, other than a lien for real estate
      taxes
      and assessments not due and payable, or (ii) to any mechanic’s, materialman’s or
      other lien which is or is asserted to be superior to the lien of this Security
      Instrument, and such lien shall remain undischarged (by payment, bonding, or
      otherwise) for ten (10) days unless contested in accordance with the terms
      hereof; 

     

    (l) if
      Mortgagor discontinues the operation of the Property or any part thereof for
      reasons other than repair or restoration arising from a casualty or condemnation
      for ten (10) days or more; 

     

    (m) except
      as
      permitted in this Security Instrument, any material alteration, demolition
      or
      removal by, on behalf or with the consent of Mortgagor of any of the
      Improvements without the prior consent of Lender;

     

    (n) if
      Mortgagor consummates a transaction which would cause this Security Instrument
      or Lender’s rights under this Security Instrument, the Note or any other Loan
      Document to constitute a non-exempt prohibited transaction under ERISA or result
      in a violation of a state statute regulating government plans subjecting Lender
      to liability for a violation of ERISA or a state statute;

     

    
      
        
        

      

      
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    (o) if
      an
      Event of Default shall occur under the other the Cross-collateralized
      Mortgage;

     

    (p) if
      Mortgagor breaches any provision of Article IX or Section 2.02(g) of this
      Security Instrument; or

     

    (q) if
      a
      default shall occur under any of the other terms, covenants or conditions of
      the
      Note, this Security Instrument or any other Loan Document, other than as set
      forth in (a) through (p) above, for ten (10) days after notice from Lender
      in
      the case of any default which can be cured by the payment of a sum of money,
      or
      for thirty (30) days after notice from Lender in the case of any other default
      or an additional ninety (90) days if Mortgagor is diligently and continuously
      effectuating a cure of a curable non-monetary default, other than as set forth
      in (a) through (p) above.

     

    Section
      13.02. Remedies. (a)
      Upon
      the occurrence and during the continuance of any Event of Default, Lender may,
      in addition to any other rights or remedies available to it hereunder or under
      any other Loan Document, at law or in equity, take such action, to the extent
      permitted by law, without notice or demand, as it reasonably deems advisable
      to
      protect and enforce its rights against Mortgagor and in and to any Property
      or
      any one or more of the Cross-collateralized Properties including, but not
      limited to, the following actions, each of which may be pursued singly,
      concurrently or otherwise, at such time and in such order as Lender may
      determine, in its sole discretion, without impairing or otherwise affecting
      any
      other rights and remedies of Lender hereunder, at law or in equity: (i) declare
      all or any portion of the unpaid Debt to be immediately due and payable;
      provided, however, that upon the occurrence of any of the events specified
      in
      Section 13.01(i), the entire Debt will be immediately due and payable without
      notice or demand or any other declaration of the amounts due and payable; or
      (ii) bring, an action to foreclose this Security Instrument and without applying
      for a receiver for the Rents, but subject to the rights of the tenants under
      the
      Leases, enter into or upon the Property or any part thereof, either personally
      or by its agents, nominees or attorneys, and dispossess Mortgagor and its agents
      and servants therefrom, and thereupon Lender may (A) use, operate, manage,
      control, insure, maintain, repair, restore and otherwise deal with all and
      every
      part of the Property and conduct the business thereat, (B) make alterations,
      additions, renewals, replacements and improvements to or on the Property or
      any
      part thereof, (C) exercise all rights and powers of Mortgagor with respect
      to
      the Property or any part thereof, whether in the name of Mortgagor or otherwise,
      including, without limitation, the right to make, cancel, enforce or modify
      Leases, obtain and evict tenants, and demand, sue for, collect and receive
      all
      earnings, revenues, rents, issues, profits and other income of the Property
      and
      every part thereof, and (D) apply the receipts from the Property or any part
      thereof to the payment of the Debt, after deducting therefrom all expenses
      (including, without limitation, reasonable attorneys’ fees and disbursements)
      reasonably incurred in connection with the aforesaid operations and all amounts
      necessary to pay the Impositions, insurance and other charges in connection
      with
      the Property or any part thereof, as well as just and reasonable compensation
      for the services of Lender’s third-party agents; or (iii) have an appraisal or
      other valuation of the Property or any part thereof performed by an Appraiser
      (and Mortgagor covenants and agrees it shall cooperate in causing any such
      valuation or appraisal to be performed) and any cost or expense incurred by
      Lender in connection therewith shall constitute a portion of the Debt and be
      secured by this Security Instrument and shall be immediately due and payable
      to
      Lender with interest, at the Default Rate, until the date of receipt by Lender;
      or (iv), sell the Property or institute , proceedings for the complete
      foreclosure of this Security Instrument, or take such other action as may be
      allowed pursuant to Legal Requirements, at law or in equity, for the enforcement
      of this Security Instrument in which case the Property or any part thereof
      may
      be sold for cash or credit in one or more parcels; or (v) with or without entry,
      and to the extent permitted and pursuant to the procedures provided by
      applicable Legal Requirements, institute proceedings for the partial foreclosure
      of this Security Instrument, or take such other action as may be allowed
      pursuant to Legal Requirements, at law or in equity, for the enforcement of
      this
      Security Instrument for the portion of the Debt then due and payable, subject
      to
      the lien of this Security Instrument continuing unimpaired and without loss
      of
      priority so as to secure the balance of the Debt not then due; or (vi) sell
      the
      Property or any part thereof and any or all estate, claim, demand, right, title
      and interest of Mortgagor therein and rights of redemption thereof, pursuant
      to
      power of sale or otherwise, at one or more sales, in whole or in parcels, in
      any
      order or manner, at such time and place, upon such terms and after such notice
      thereof as may be required or permitted by law, at the discretion of Lender,
      and
      in the event of a sale, by foreclosure or otherwise, of less than all of the
      Property, this Security Instrument shall continue as a lien on the remaining
      portion of the Property; or (vii) institute an action, suit or proceeding in
      equity for the specific performance of any covenant, condition or agreement
      contained in the Loan Documents, or any of them; or (viii) recover judgment
      on
      the Note or any guaranty either before, during or after (or in lieu of) any
      proceedings for the enforcement of this Security Instrument; or (ix) apply,
      ex parte,
      for the
      appointment of a custodian, trustee, receiver, keeper, liquidator or conservator
      of the Property or any part thereof, irrespective of the adequacy of the
      security for the Debt and without regard to the solvency of Mortgagor or of
      any
      Person liable for the payment of the Debt, to which appointment Mortgagor does
      hereby consent and such receiver or other official shall have all rights and
      powers permitted by applicable law and such other rights and powers as the
      court
      making such appointment may confer, but the appointment of such receiver or
      other official shall not impair or in any manner prejudice the rights of Lender
      to receive the Rent with respect to any of the Property pursuant to this
      Security Instrument or the Assignment; or (x) require, at Lender’s option,
      Mortgagor to pay monthly in advance to Lender, or any receiver appointed to
      collect the Rents, the fair and reasonable rental value for the use and
      occupation of any portion of the Property occupied by Mortgagor and may require
      Mortgagor to vacate and surrender possession to Lender of the Property or to
      such receiver and Mortgagor may be evicted by summary proceedings or otherwise;
      or (xi) without notice to Mortgagor (A) apply all or any portion of the cash
      collateral in any Sub-Account and Escrow Account, including any interest and/or
      earnings therein, to carry out the obligations of Mortgagor under this Security
      Instrument and the other Loan Documents, to protect and preserve the Property
      and for any other purpose permitted under this Security Instrument and the
      other
      Loan Documents and/or (B) have all or any portion of such cash collateral
      immediately paid to Lender to be applied against the Debt in the order and
      priority set forth in the Note; or (xii) pursue any or all such other rights
      or
      remedies as Lender may have under applicable law or in equity; provided,
      however, that the provisions of this Section 13.02(a) shall not be construed
      to
      extend or modify any of the notice requirements or grace periods provided for
      hereunder or under any of the other Loan Documents. Mortgagor hereby waives,
      to
      the fullest extent permitted by Legal Requirements, any defense Mortgagor might
      otherwise raise or have by the failure to make any tenants parties defendant
      to
      a foreclosure proceeding and to foreclose their rights in any proceeding
      instituted by Lender. 

     

    
      
        
        

      

      
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    (b) Any
      time
      after an Event of Default Lender, shall have the power, to the extent permitted
      by applicable law, to sell the Property or any part thereof at public auction,
      in such manner, at such time and place, upon such terms and conditions, and
      upon
      such public notice as Lender may deem best for the interest of Lender, or as
      may
      be required or permitted by applicable law, consisting of advertisement (if
      required by law) in a newspaper of general circulation in the jurisdiction
      and
      for such period as applicable law may require and at such other times and by
      such methods, if any, as may be required or permitted by law to convey the
      Property or portions thereof in one or more sales in fee simple by Lender's
      deed
      to and at the cost of the purchaser, who shall not be liable to see to the
      application of the purchase money. The proceeds or avails of any sale made
      under
      or by virtue of this Section 13.02, together with any other sums which then
      may
      be held by Lender under this Security Instrument, whether under the provisions
      of this Section 13.02 or otherwise, shall, to the extent permitted by applicable
      law, be applied as follows:

     

    First:
      To
      the payment of the third-party costs and expenses reasonably incurred in
      connection with any such sale and to advances, fees and expenses, including,
      without limitation, title service guaranty fees, reasonable fees and expenses
      of
      Lender’s legal counsel as applicable, of the title company and of any judicial
      proceedings wherein the same may be made, and of all expenses, liabilities
      and
      advances reasonably made or incurred by Lender under this Security Instrument,
      together with interest as provided herein on all such advances made by Lender,
      and all Impositions, except any Impositions or other charges subject to which
      the Property shall have been sold;

     

    Second:
      To the payment of the whole amount then due, owing and unpaid under the Note
      for
      principal and interest thereon, with interest on such unpaid principal at the
      Default Rate from the date of the occurrence of the earliest Event of Default
      that formed a basis for such sale until the same is paid;

     

    Third:
      To
      the payment of any other portion of the Debt required to be paid by Mortgagor
      pursuant to any provision of this Security Instrument, the Note, or any of
      the
      other Loan Documents; and

     

    Fourth:
      The surplus, if any, to Mortgagor or such other Persons as may be legally
      entitled thereto, unless otherwise required by Legal Requirements.

     

    Lender
      and any receiver or custodian of the Property or any part thereof shall be
      liable to account for only those rents, issues, proceeds and profits actually
      received by it.

     

    (c) Lender,
      to the extent permitted by law, may adjourn from time to time any sale by it
      to
      be made under or by virtue of this Security Instrument by announcement at the
      time and place appointed for such sale or for such adjourned sale or sales
      and,
      except as otherwise provided by any applicable provision of Legal Requirements,
      Lender, without further notice or publication, may make such sale at the time
      and place to which the same shall be so adjourned.

     

    
      
        
        

      

      
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    (d) Upon
      the
      completion of any sale or sales made by Lender under or by virtue of this
      Section 13.02, Lender or any officer of any court empowered to do so, shall
      execute and deliver to the accepted purchaser or purchasers a good and
      sufficient instrument, or good and sufficient instruments, granting, conveying,
      assigning and transferring all estate, right, title and interest in and to
      the
      property and rights sold. Lender is hereby irrevocably appointed the true and
      lawful attorney-in-fact of Mortgagor (coupled with an interest), in its name
      and
      stead, to make all necessary conveyances, assignments, transfers and deliveries
      of the property and rights so sold pursuant to this Section 13.02 and for that
      purpose Lender may execute all necessary instruments of conveyance, assignment,
      transfer and delivery, and may substitute one or more Persons with like power,
      Mortgagor hereby ratifying and confirming all that its said attorney-in-fact
      or
      such substitute or substitutes shall lawfully do by virtue hereof. Nevertheless,
      Mortgagor, if so requested by Lender, shall ratify and confirm any such sale
      or
      sales by executing and delivering to Lender, or to such purchaser or purchasers
      all such instruments as may be advisable, in the sole judgment of Lender, for
      such purpose, and as may be designated in such request. Any such sale or sales
      made under or by virtue of this Section 13.02, whether made under or by virtue
      of judicial proceedings or a judgment or decree of foreclosure and sale, shall
      operate to divest all the estate, right, title, interest, claim and demand
      whatsoever, whether at law or in equity, of Mortgagor in and to the property
      and
      rights so sold, and shall, to the fullest extent permitted under Legal
      Requirements, be a perpetual bar, both at law and in equity against Mortgagor
      and against any and all Persons claiming or who may claim the same, or any
      part
      thereof, from, through or under Mortgagor.

     

    (e) In
      the
      event of any sale made under or by virtue of this Section 13.02 (whether made
      under or by virtue of judicial proceedings or a judgment or decree of
      foreclosure and sale), the entire Debt immediately thereupon shall, anything
      in
      the Loan Documents to the contrary notwithstanding, become due and
      payable.

     

    (f) Upon
      any
      sale made under or by virtue of this Section 13.02 (whether made under or by
      virtue of judicial proceedings or a judgment or decree of foreclosure and sale),
      Lender may bid for and acquire the Property or any part thereof and in lieu
      of
      paying cash therefor may make settlement for the purchase price by crediting
      upon the Debt the net sales price after deducting therefrom the expenses of
      the
      sale and the costs of the action.

     

    (g) No
      recovery of any judgment by Lender and no levy of an execution under any
      judgment upon the Property or any part thereof or upon any other property of
      Mortgagor shall release the lien of this Security Instrument upon the Property
      or any part thereof, or any liens, rights, powers or remedies of Lender
      hereunder, but such liens, rights, powers and remedies of Lender shall continue
      unimpaired until all amounts due under the Note, this Security Instrument and
      the other Loan Documents are paid in full.

     

    (h) Upon
      the
      exercise by Lender of any power, right, privilege, or remedy pursuant to this
      Security Instrument which requires any consent, approval, registration,
      qualification, or authorization of any Governmental Authority, Mortgagor agrees
      to execute and deliver, or will cause the execution and delivery of, all
      applications, certificates, instruments, assignments and other documents and
      papers that Lender or any purchaser of the Property may be required to obtain
      for such governmental consent, approval, registration, qualification, or
      authorization and Lender is hereby irrevocably appointed the true and lawful
      attorney-in-fact of Mortgagor (coupled with an interest), in its name and stead,
      to execute all such applications, certificates, instruments, assignments and
      other documents and papers.

     

    
      
        
        

      

      
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    Section
      13.03. Payment
      of Debt After Default.
      If,
      following the occurrence of any Event of Default, Mortgagor shall tender payment
      of an amount sufficient to satisfy the Debt in whole or in part at any time
      prior to a foreclosure sale of the Property, and if at the time of such tender
      prepayment of the principal balance of the Note is not permitted by the Note
      or
      this Security Instrument, Mortgagor shall, in addition to the entire Debt,
      also
      pay to Lender all amounts due Lender under Section 1.5(b) of the Note. If at
      the
      time of such tender, prepayment of the principal balance of the Note is
      permitted, such tender by Mortgagor shall be deemed to be a voluntary prepayment
      of the principal balance of the Note and Mortgagor shall, in addition to the
      entire Debt, also pay to Lender the applicable prepayment consideration
      specified in the Note and this Security Instrument.

     

    Section
      13.04. Possession
      of the Property.
      Upon
      the occurrence of any Event of Default hereunder and the acceleration of the
      Debt or any portion thereof, Mortgagor, if an occupant of the Property or any
      part thereof, upon demand of Lender, shall immediately surrender possession
      of
      the Property (or the portion thereof so occupied) to Lender, and if Mortgagor
      is
      permitted to remain in possession, the possession shall be as a month-to-month
      tenant of Lender and, on demand, Mortgagor shall pay to Lender monthly, in
      advance, a reasonable rental for the space so occupied and in default thereof
      Mortgagor may be dispossessed. The covenants herein contained may be enforced
      by
      a receiver of the Property or any part thereof. Nothing in this Section 13.04
      shall be deemed to be a waiver of the provisions of this Security Instrument
      making the Transfer of the Property or any part thereof without Lender’s prior
      written consent an Event of Default.

     

    Section
      13.05. Interest
      After Default.
      If any
      amount due under the Note, this Security Instrument or any of the other Loan
      Documents is not paid within any applicable notice and grace period after same
      is due, whether such date is the stated due date, any accelerated due date
      or
      any other date or at any other time specified under any of the terms hereof
      or
      thereof, then, in such event, Mortgagor shall pay interest on the amount not
      so
      paid from and after the date on which such amount first becomes due at the
      Default Rate; and such interest shall be due and payable at such rate until
      the
      earlier of the cure of all Events of Default or the payment of the entire amount
      due to Lender, whether or not any action shall have been taken or proceeding
      commenced to recover the same or to foreclose this Security Instrument. All
      unpaid and accrued interest shall be secured by this Security Instrument as
      part
      of the Debt. Nothing in this Section 13.05 or in any other provision of this
      Security Instrument shall constitute an extension of the time for payment of
      the
      Debt.

     

    Section
      13.06. Mortgagor’s
      Actions After Default.
      After
      the happening of any Event of Default and immediately upon the commencement
      of
      any action, suit or other legal proceedings by Lender to obtain judgment for
      the
      Debt, or of any other nature in aid of the enforcement of the Loan Documents,
      Mortgagor will (a) after receipt of notice of the institution of any such
      action, waive the issuance and service of process and enter its voluntary
      appearance in such action, suit or proceeding, and (b) if required by Lender,
      consent to the appointment of a receiver or receivers of the Property or any
      part thereof and of all the earnings, revenues, rents, issues, profits and
      income thereof. 

     

    
      
        
        

      

      
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    Section
      13.07. Control
      by Lender After Default.
      Notwithstanding the appointment of any custodian, receiver, liquidator or
      trustee of Mortgagor, or of any of its property, or of the Property or any
      part
      thereof, to the extent permitted by Legal Requirements, Lender shall be entitled
      to obtain possession and control of all property now and hereafter covered
      by
      this Security Instrument and the Assignment following the occurrence of an
      Event
      of Default in accordance with the terms hereof.

     

    Section
      13.08. Right
      to Cure Defaults.
      (a)
Upon
      the
      occurrence of any Event of Default, Lender or its agents may, but without any
      obligation to do so and without notice to or demand on Mortgagor and without
      releasing Mortgagor from any obligation hereunder, make or do the same in such
      manner and to such extent as Lender may deem necessary to protect the security
      hereof. Lender and its agents are authorized to enter upon the Property or
      any
      part thereof for such purposes, or appear in, defend, or bring any action or
      proceedings to protect Lender’s interest in the Property or any part thereof or
      to foreclose this Security Instrument or collect the Debt, and the cost and
      expense thereof (including reasonable attorneys’ fees to the extent permitted by
      law), with interest as provided in this Section 13.08, shall constitute a
      portion of the Debt and shall be immediately due and payable to Lender upon
      demand. All such costs and expenses incurred by Lender or its agents in
      remedying such Event of Default or in appearing in, defending, or bringing
      any
      such action or proceeding shall bear interest at the Default Rate, for the
      period from the date so demanded to the date of payment to Lender. All such
      costs and expenses incurred by Lender or its agents together with interest
      thereon calculated at the above rate shall be deemed to constitute a portion
      of
      the Debt and be secured by this Security Instrument.

     

    (b) If
      Lender
      makes any payment or advance that Lender is authorized by this Security
      Instrument to make in the place and stead of Mortgagor (i) relating to the
      Impositions or tax liens asserted against the Property, Lender may do so
      according to any bill, statement or estimate procured from the appropriate
      public office without inquiry into the accuracy of the bill, statement or
      estimate or into the validity of any of the Impositions or the tax liens or
      claims thereof; (ii) relating to any apparent or threatened adverse title,
      lien,
      claim of lien, encumbrance, claim or charge, Lender will be the sole judge
      of
      the legality or validity of same; or (iii) relating to any other purpose
      authorized by this Security Instrument but not enumerated in this Section 13.08,
      Lender may do so whenever, in its judgment and discretion, the payment or
      advance seems necessary or desirable to protect the Property and the full
      security interest intended to be created by this Security Instrument. In
      connection with any payment or advance made pursuant to this Section 13.08,
      Lender has the option and is authorized, but in no event shall be obligated,
      to
      obtain a continuation report of title prepared by a title insurance company.
      The
      payments and the advances made by Lender pursuant to this Section 13.08 and
      the
      cost and expenses of said title report will be due and payable by Mortgagor
      on
      demand, together with interest at the Default Rate, and will be secured by
      this
      Security Instrument.

     

    Section
      13.09. Late
      Payment Charge.
      If any
      portion of the Debt is not paid in full on or before the day on which it is
      due
      and payable hereunder Mortgagor shall pay to Lender an amount equal to five
      percent (5%) of such unpaid portion of the Debt (“Late
      Charge”)
      to
      defray the expense incurred by Lender in handling and processing such delinquent
      payment, and such amount shall constitute a part of the Debt; provided, that
      no
      late charge shall be due and payable if Mortgagor fails to repay the Loan
      evidenced hereby upon the Maturity Date (whether by acceleration or
      otherwise). 

     

    
      
        
        

      

      
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    Section
      13.10. Recovery
      of Sums Required to Be Paid.
      Lender
      shall have the right from time to time to take action to recover any sum or
      sums
      which constitute a part of the Debt as the same become due and payable hereunder
      (after the expiration of any grace period or the giving of any notice herein
      provided, if any), without regard to whether or not the balance of the Debt
      shall be due, and without prejudice to the right of Lender thereafter to bring
      an action of foreclosure, or any other action, for a default or defaults by
      Mortgagor existing at the time such earlier action was commenced.

     

    Section
      13.11. Marshalling
      and Other Matters.
      Mortgagor hereby waives, to the fullest extent permitted by law, the benefit
      of
      all appraisement, valuation, stay, extension, reinstatement, redemption (both
      equitable and statutory) and homestead laws now or hereafter in force and all
      rights of marshalling in the event of any sale hereunder of the Property or
      any
      part thereof or any interest therein. Nothing herein or in any other Loan
      Document shall be construed as requiring Lender to resort to any particular
      Cross-collateralized Property for the satisfaction of the Debt in preference
      or
      priority to any other Cross-collateralized Property but Lender may seek
      satisfaction out of all the Cross-collateralized Properties or any part thereof
      in its absolute discretion. Further, Mortgagor hereby expressly waives any
      and
      all rights of redemption from sale under any order or decree of foreclosure
      of
      this Security Instrument on behalf of Mortgagor, whether equitable or statutory
      and on behalf of each and every Person acquiring any interest in or title to
      the
      Property or any part thereof subsequent to the date of this Security Instrument
      and on behalf of all Persons to the fullest extent permitted by applicable
      law.

     

    Section
      13.12. Tax
      Reduction Proceedings.
      After
      an Event of Default, Mortgagor shall be deemed to have appointed Lender as
      its
      attorney-in-fact to seek a reduction or reductions in the assessed valuation
      of
      the Property for real property tax purposes or for any other purpose and to
      prosecute any action or proceeding in connection therewith. This power, being
      coupled with an interest, shall be irrevocable for so long as any part of the
      Debt remains unpaid and any Event of Default shall be continuing.

     

    Section
      13.13. General
      Provisions Regarding Remedies.

     

    (a) Right
      to Terminate Proceedings.
      Lender
      may terminate or rescind any proceeding or other action brought in connection
      with its exercise of the remedies provided in Section 13.02 at any time before
      the conclusion thereof, as determined in Lender’s sole discretion and without
      prejudice to Lender.

     

    (b) No
      Waiver or Release.
      The
      failure of Lender to exercise any right, remedy or option provided in the Loan
      Documents shall not be deemed a waiver of such right, remedy or option or of
      any
      covenant or obligation contained in the Loan Documents. No acceptance by Lender
      of any payment after the occurrence of an Event of Default and no payment by
      Lender of any payment or obligation for which Mortgagor is liable hereunder
      shall be deemed to waive or cure any Event of Default. No sale of all or any
      portion of the Property, no forbearance on the part of Lender, and no extension
      of time for the payment of the whole or any portion of the Debt or any other
      indulgence given by Lender to Mortgagor or any other Person, shall operate
      to
      release or in any manner affect the interest of Lender in the Property or the
      liability of Mortgagor to pay the Debt. No waiver by Lender shall be effective
      unless it is in writing and then only to the extent specifically
      stated.

     

    
      
        
        

      

      
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    (c) No
      Impairment; No Releases.
      The
      interests and rights of Lender under the Loan Documents shall not be impaired
      by
      any indulgence, including (i) any renewal, extension or modification which
      Lender may grant with respect to any of the Debt; (ii) any surrender,
      compromise, release, renewal, extension, exchange or substitution which Lender
      may grant with respect to the Property or any portion thereof; or (iii) any
      release or indulgence granted to any maker, endorser, guarantor or surety of
      any
      of the Debt.

     

    (d) Effect
      on Judgment.
      No
      recovery of any judgment by Lender and no levy of an execution under any
      judgment upon any Property or any portion thereof shall affect in any manner
      or
      to any extent the lien of the other Cross-collateralized Mortgage upon the
      remaining Cross-collateralized Properties or any portion thereof, or any rights,
      powers or remedies of Lender hereunder or thereunder. Such lien, rights, powers
      and remedies of Lender shall continue unimpaired as before.

     

    ARTICLE
      XIV:   COMPLIANCE
      WITH REQUIREMENTS

     

    Section
      14.01. Compliance
      with Legal Requirements.
      (a)
Mortgagor
      shall promptly comply with all present and future Legal Requirements, foreseen
      and unforeseen, ordinary and extraordinary, whether requiring structural or
      nonstructural repairs or alterations including, without limitation, all zoning,
      subdivision, building, safety and environmental protection, land use and
      development Legal Requirements, all Legal Requirements which may be applicable
      to the curbs adjoining the Property or to the use or manner of use thereof,
      and
      all rent control, rent stabilization and all other similar Legal Requirements
      relating to rents charged and/or collected in connection with the Leases.
      Mortgagor represents and warrants that the Property to the best of Mortgagor’s
      knowledge is in compliance in all material respects with all Legal Requirements
      as of the date hereof, no notes or notices of violations of any Legal
      Requirements have been entered or received by Mortgagor and there is no basis
      for the entering of such notes or notices.

     

    (b) Mortgagor
      shall have the right to contest by appropriate legal proceedings diligently
      conducted in good faith, without cost or expense to Lender, the validity or
      application of any Legal Requirement and to suspend compliance therewith if
      permitted under applicable Legal Requirements, provided (i) failure to comply
      therewith may not subject Lender to any civil or criminal liability, (ii) prior
      to and during such contest, Mortgagor shall furnish to Lender security
      reasonably satisfactory to Lender, in its discretion, against loss or injury
      by
      reason of such contest or non-compliance with such Legal Requirement, (iii)
      no
      Default or Event of Default shall exist during such proceedings and such contest
      shall not otherwise violate any of the provisions of any of the Loan Documents,
      (iv) such contest shall not (unless Mortgagor shall comply with the provisions
      of clause (ii) of this Section 14.01(b)) subject the Property to any lien or
      encumbrance the enforcement of which is not suspended or otherwise affect the
      priority of the lien of this Security Instrument; (v) such contest shall not
      affect the ownership, use or occupancy of the Property; (vi) the Property or
      any
      part thereof or any interest therein shall not be in any danger of being sold,
      forfeited or lost by reason of such contest by Mortgagor; (vii) Mortgagor shall
      give Lender prompt notice of the commencement of such proceedings and, upon
      request by Lender, notice of the status of such proceedings and/or confirmation
      of the continuing satisfaction of the conditions set forth in clauses (i) -
      (vi)
      of this Section 14.01(b); and (viii) upon a final determination of such
      proceeding, Mortgagor shall take all steps necessary to comply with any
      requirements arising therefrom.

     

    
      
        
        

      

      
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    (c) Mortgagor
      shall at all times comply with all applicable Legal Requirements with respect
      to
      the construction, use and maintenance of any vaults adjacent to the Property.
      If
      by reason of the failure to pay taxes, assessments, charges, permit fees,
      franchise taxes or levies of any kind or nature, the continued use of the vaults
      adjacent to Property or any part thereof is discontinued, Mortgagor nevertheless
      shall, with respect to any vaults which may be necessary for the continued
      use
      of the Property, take such steps (including the making of any payment) to ensure
      the continued use of vaults or replacements.

     

    Section
      14.02. Compliance
      with Recorded Documents; No Future Grants.
      Mortgagor shall promptly perform and observe or cause to be performed and
      observed, all of the terms, covenants and conditions of all Property Agreements
      and all things necessary to preserve intact and unimpaired any and all
      appurtenances or other interests or rights affecting the Property.

     

    ARTICLE
      XV:   PREPAYMENT

     

    Section
      15.01. Prepayment.
       Except
      as
      set forth in Section 1.5 of the Note, no prepayment of the Debt may be made
      in
      whole or in part.

     

    ARTICLE
      XVI:   ENVIRONMENTAL
      COMPLIANCE

     

    Section
      16.01.   Covenants,
      Representations and Warranties.
      (a)
      Mortgagor
      has not, at any time, and, to Mortgagor’s best knowledge after due inquiry and
      investigation, except as set forth in the Environmental Report, no other Person
      has at any time, handled, buried, stored, retained, refined, transported,
      processed, manufactured, generated, produced, spilled, allowed to seep, leak,
      escape or leach, or pumped, poured, emitted, emptied, discharged, injected,
      dumped, transferred or otherwise disposed of or dealt with Hazardous Materials
      on, to or from the Premises or any other real property owned and/or occupied
      by
      Mortgagor (other than in compliance with all Legal Requirements), and Mortgagor
      does not intend to and shall not use the Property or any part thereof or any
      such other real property for the purpose of handling, burying, storing,
      retaining, refining, transporting, processing, manufacturing, generating,
      producing, spilling, seeping, leaking, escaping, leaching, pumping, pouring,
      emitting, emptying, discharging, injecting, dumping, transferring or otherwise
      disposing of or dealing with Hazardous Materials, except for use and storage
      for
      use of heating oil, cleaning fluids, pesticides and other substances customarily
      used in the operation of properties that are being used for the same purposes
      as
      the Property is presently being used, provided such use and/or storage for
      use
      is in compliance with the requirements hereof and the other Loan Documents
      and
      does not give rise to liability under applicable Legal Requirements or
      Environmental Statutes or be the basis for a lien against the Property or any
      part thereof. In addition, without limitation to the foregoing provisions,
      Mortgagor represents and warrants that, to the best of its knowledge, after
      due
      inquiry and investigation, except as previously disclosed in writing to Lender
      or in the Environmental Report or Engineering Report, there is no asbestos
      in,
      on, over, or under all or any portion of the fire-proofing or any other portion
      of the Property.

     

    
      
        
        

      

      
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    (b) Mortgagor,
      after due inquiry and investigation, knows of no seepage, leak, escape, leach,
      discharge, injection, release, emission, spill, pumping, pouring, emptying
      or
      dumping of Hazardous Materials into waters on, under or adjacent to the Property
      or any part thereof or any other real property owned and/or occupied by
      Mortgagor, or onto lands from which such Hazardous Materials might seep, flow
      or
      drain into such waters, except as disclosed in the Environmental
      Report.

     

    (c) Mortgagor
      shall not permit any Hazardous Materials to be handled, buried, stored,
      retained, refined, transported, processed, manufactured, generated, produced,
      spilled, allowed to seep, leak, escape or leach, or to be pumped, poured,
      emitted, emptied, discharged, injected, dumped, transferred or otherwise
      disposed of or dealt with on, under, to or from the Property or any portion
      thereof at any time, except for use and storage for use of heating oil, ordinary
      cleaning fluids, pesticides and other substances customarily used in the
      operation of properties that are being used for the same purposes as the
      Property is presently being used, provided such use and/or storage for use
      is in
      compliance with the requirements hereof and the other Loan Documents and does
      not give rise to liability under applicable Legal Requirements or be the basis
      for a lien against the Property or any part thereof.

     

    (d) Mortgagor
      represents and warrants that no actions, suits, or proceedings have been
      commenced, or are pending, or to the best knowledge of Mortgagor, are threatened
      with respect to any Legal Requirement governing the use, manufacture, storage,
      treatment, transportation, or processing of Hazardous Materials with respect
      to
      the Property or any part thereof. Mortgagor has received no notice of, and,
      except as disclosed in the Environmental Report, after due inquiry, has no
      knowledge of any fact, condition, occurrence or circumstance which with notice
      or passage of time or both would give rise to a claim under or pursuant to
      any
      Environmental Statute pertaining to Hazardous Materials on, in, under or
      originating from the Property or any part thereof or any other real property
      owned or occupied by Mortgagor or arising out of the conduct of Mortgagor,
      including, without limitation, pursuant to any Environmental
      Statute.

     

    (e) Mortgagor
      has not waived any Person’s liability with regard to Hazardous Materials in, on,
      under or around the Property, nor has Mortgagor retained or assumed,
      contractually or by operation of law, any other Person’s liability relative to
      Hazardous Materials or any claim, action or proceeding relating
      thereto.

     

    (f) In
      the
      event that there shall be filed a lien against the Property or any part thereof
      pursuant to any Environmental Statute pertaining to Hazardous Materials,
      Mortgagor shall, within sixty (60) days or, in the event that the applicable
      Governmental Authority has commenced steps to cause the Premises or any part
      thereof to be sold pursuant to the lien, within fifteen (15) days, from the
      date
      that Mortgagor receives notice of such lien, either (i) pay the claim and remove
      the lien from the Property, or (ii) furnish (A) a bond satisfactory to Lender
      in
      the amount of the claim out of which the lien arises, (B) a cash deposit in
      the
      amount of the claim out of which the lien arises, or (C) other security
      reasonably satisfactory to Lender in an amount sufficient to discharge the
      claim
      out of which the lien arises.

     

    
      
        
        

      

      
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    (g) Mortgagor
      represents and warrants that (i) except as disclosed in the Environmental
      Report, Mortgagor has no knowledge of any violation of any Environmental Statute
      or any Environmental Problem in connection with the Property, nor has Mortgagor
      been requested or required by any Governmental Authority to perform any remedial
      activity or other responsive action in connection with any Environmental Problem
      and (ii) neither the Property nor any other property owned by Mortgagor is
      included or, to Mortgagor’s best knowledge, after due inquiry and investigation,
      proposed for inclusion on the National Priorities List issued pursuant to CERCLA
      by the United States Environmental Protection Agency (the “EPA”)
      or on
      the inventory of other potential “Problem” sites issued by the EPA and has not
      otherwise been identified by the EPA as a potential CERCLA site or included
      or,
      to Mortgagor’s knowledge, after due inquiry and investigation, proposed for
      inclusion on any list or inventory issued pursuant to any other Environmental
      Statute, if any, or issued by any other Governmental Authority. Mortgagor
      covenants that Mortgagor will comply with all Environmental Statutes affecting
      or imposed upon Mortgagor or the Property.

     

    (h) Mortgagor
      covenants that it shall promptly notify Lender of the presence and/or release
      of
      any Hazardous Materials and of any request for information or any inspection
      of
      the Property or any part thereof by any Governmental Authority with respect
      to
      any Hazardous Materials and provide Lender with copies of such request and
      any
      response to any such request or inspection. Mortgagor covenants that it shall,
      in compliance with applicable Legal Requirements, conduct and complete all
      investigations, studies, sampling and testing (and promptly shall provide Lender
      with copies of any such studies and the results of any such test) and all
      remedial, removal and other actions necessary to clean up and remove all
      Hazardous Materials in, on, over, under, from or affecting the Property or
      any
      part thereof in accordance with all such Legal Requirements applicable to the
      Property or any part thereof to the satisfaction of Lender.

     

    (i) Following
      the occurrence of an Event of Default that is continuing hereunder, and without
      regard to whether Lender shall have taken possession of the Property or a
      receiver has been requested or appointed or any other right or remedy of Lender
      has or may be exercised hereunder or under any other Loan Document, Lender
      shall
      have the right (but no obligation) to conduct such investigations, studies,
      sampling and/or testing of the Property or any part thereof as Lender may,
      in
      its discretion, determine to conduct, relative to Hazardous Materials. All
      costs
      and expenses incurred in connection therewith including, without limitation,
      consultants’ fees and disbursements and laboratory fees, shall constitute a part
      of the Debt and shall, upon demand by Lender, be immediately due and payable
      and
      shall bear interest at the Default Rate from the date so demanded by Lender
      until reimbursed. Mortgagor shall, at its sole cost and expense, fully and
      expeditiously cooperate in all such investigations, studies, samplings and/or
      testings including, without limitation, providing all relevant information
      and
      making knowledgeable people available for interviews.

     

    (j) Mortgagor
      represents and warrants that, except as disclosed in the Environmental Report,
      all paint and painted surfaces existing within the interior or on the exterior
      of the Improvements are not flaking, peeling, cracking, blistering, or chipping,
      and do not contain lead or are maintained in a condition that prevents exposure
      of young children to lead-based paint, as of the date hereof, and that the
      current inspections, operation, and maintenance program at the Property with
      respect to lead-based paint is consistent with FNMA guidelines and sufficient
      to
      ensure that all painted surfaces within the Property shall be maintained in
      a
      condition that prevents exposure of tenants to lead-based paint. To Mortgagor’s
      knowledge, there have been no claims for adverse health effects from exposure
      on
      the Property to lead-based paint or requests for the investigation, assessment
      or removal of lead-based paint at the Property.

     

    
      
        
        

      

      
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    (k) Mortgagor
      represents and warrants that except in accordance with all applicable
      Environmental Statutes and as disclosed in the Environmental Report, (i) no
      underground treatment or storage tanks or pumps or water, gas, or oil wells
      are
      or have been located about the Property, (ii) no PCBs or transformers,
      capacitors, ballasts or other equipment that contain dielectric fluid containing
      PCBs are located about the Property, (iii) no insulating material
      containing urea formaldehyde is located about the Property and (iv) no
      asbestos-containing material is located about the Property.

     

    (l) For
      the
      properties known as 100 James Drive, 120 Mallard Street, 6565 Exchequer Drive,
      7042 Alamo Downs Parkway, 11301 Industriplex Blvd., 11441 Industriplex Blvd.
      and
      1701-1759 Grandstand Drive, Mortgagor
      covenants and agrees to institute, within thirty (30) days after the date
      hereof, an operations and maintenance program (the "Maintenance Program")
      designed by an environmental consultant, satisfactory to the Lender, with
      respect to asbestos containing materials ("ACM's"), consistent with "Guidelines
      for Controlling Asbestos-Containing Materials in Buildings" (USEPA, 1985) and
      other relevant guidelines, and such Maintenance Program will hereafter
      continuously remain in effect until the indebtedness secured hereby is repaid
      in
      full. In furtherance of the foregoing, Mortgagor shall inspect and maintain
      all
      ACM's on a regular basis and ensure that all ACM's shall be maintained in a
      condition that prevents exposure of residents to ACM's at all times. Without
      limiting the generality of the preceding sentence, Lender may reasonably require
      (i) periodic notices or reports to Lender in form, substance and at such
      intervals as Lender may specify, (ii) an amendment to such Maintenance Program
      to address changing circumstances, laws or other matters, (iii) at Mortgagor's
      sole expense, supplemental examination of the Property by consultants specified
      by Lender, and (iv) variation of the Maintenance Program in response to the
      reports provided by any such consultants.

     

    Section
      16.02. Environmental
      Indemnification.
      Mortgagor shall defend, indemnify and hold harmless the Indemnified Parties
      for,
      from and against any claims, demands, penalties, fines, liabilities,
      settlements, damages, costs and expenses of whatever kind or nature, known
      or
      unknown, contingent or otherwise, whether incurred or imposed within or outside
      the judicial process, including, without limitation, reasonable attorneys’ and
      consultants’ fees and disbursements and investigations and laboratory fees
      arising out of, or in any way related to any Environmental Problem, including
      without limitation:

     

    (a) the
      presence, disposal, escape, seepage, leakage, spillage, discharge, emission,
      release or threat of release of any Hazardous Materials in, on, over, under,
      from or affecting the Property or any part thereof whether or not disclosed
      by
      the Environmental Report;

     

    (b) any
      personal injury (including wrongful death, disease or other health condition
      related to or caused by, in whole or in part, any Hazardous Materials) or
      property damage (real or personal) arising out of or related to any Hazardous
      Materials in, on, over, under, from or affecting the Property or any part
      thereof whether or not disclosed by the Environmental Report;

     

    
      
        
        

      

      
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    (c) any
      action, suit or proceeding brought or threatened, settlement reached, or order
      of any Governmental Authority relating to such Hazardous Material whether or
      not
      disclosed by the Environmental Report; and/or

     

    (d) any
      violation of the provisions, covenants, representations or warranties of Section
      16.01 hereof or of any Legal Requirement which is based on or in any way related
      to any Hazardous Materials in, on, over, under, from or affecting the Property
      or any part thereof including, without limitation, the cost of any work
      performed and materials furnished in order to comply therewith whether or not
      disclosed by the Environmental Report.

     

    Notwithstanding
      the foregoing provisions of this Section 16.02 to the contrary, Mortgagor shall
      have no obligation to indemnify Lender for liabilities, claims, damages,
      penalties, causes of action, costs and expenses relative to the foregoing which
      result directly from Lender’s willful misconduct or gross negligence. Any
      amounts payable to Lender by reason of the application of this Section 16.02
      shall be secured by this Security Instrument and shall, upon demand by Lender,
      become immediately due and payable and shall bear interest at the Default Rate
      from the date so demanded by Lender until paid.

     

    This
      indemnification shall survive the termination of this Security Instrument
      whether by repayment of the Debt, foreclosure or deed in lieu thereof,
      assignment, or otherwise. The indemnity provided for in this Section 16.02
      shall
      not be included in any exculpation of Mortgagor or its principals from personal
      liability provided for in this Security Instrument or in any of the other Loan
      Documents. Nothing in this Section 16.02 shall be deemed to deprive Lender
      of
      any rights or remedies otherwise available to Lender, including, without
      limitation, those rights and remedies provided elsewhere in this Security
      Instrument or the other Loan Documents. The foregoing indemnity shall
      specifically not include any such costs relating to Hazardous Materials which
      are initially placed on, in or under any of the Properties after foreclosure
      or
      other taking of title of such Properties by Lender or its successors or
      assigns.

     

    ARTICLE
      XVII:   ASSIGNMENTS

     

    Section
      17.01. Participations
      and Assignments.
      Lender
      shall have the right to assign this Security Instrument and/or any of the Loan
      Documents, and to transfer, assign or sell participations and subparticipations
      (including blind or undisclosed participations and subparticipations) in the
      Loan Documents and the obligations hereunder to any Person; provided, however,
      that no such participation shall increase, decrease or otherwise affect either
      Mortgagor’s or Lender’s obligations under this Security Instrument or the other
      Loan Documents or increase the Debt.

     

    ARTICLE
      XVIII:   MISCELLANEOUS

     

    Section
      18.01. Right
      of Entry.
      Lender
      and its agents shall have the right to enter and inspect the Property or any
      part thereof at all reasonable times, and, except in the event of an emergency,
      upon reasonable notice and to inspect Mortgagor’s books and records and to make
      abstracts and reproductions thereof (but in no event more frequently than two
      (2) times per calendar year provided no Event of Default has
      occurred).

     

    
      
        
        

      

      
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    Section
      18.02. Cumulative
      Rights.
      The
      rights of Lender under this Security Instrument shall be separate, distinct
      and
      cumulative and none shall be given effect to the exclusion of the others. No
      act
      of Lender shall be construed as an election to proceed under any one provision
      herein to the exclusion of any other provision. Lender shall not be limited
      exclusively to the rights and remedies herein stated but shall be entitled,
      subject to the terms of this Security Instrument, to every right and remedy
      now
      or hereafter afforded by law.

     

    Section
      18.03. Liability.
      If
      Mortgagor consists of more than one Person, the obligations and liabilities
      of
      each such Person hereunder shall be joint and several.

     

    Section
      18.04. Exhibits
      Incorporated.
      The
      information set forth on the cover hereof, and the Exhibits annexed hereto,
      are
      hereby incorporated herein as a part of this Security Instrument with the same
      effect as if set forth in the body hereof.

     

    Section
      18.05. Severable
      Provisions.
      If any
      term, covenant or condition of the Loan Documents including, without limitation,
      the Note or this Security Instrument, is held to be invalid, illegal or
      unenforceable in any respect, such Loan Document shall be construed without
      such
      provision.

     

    Section
      18.06. Duplicate
      Originals.
      This
      Security Instrument may be executed in any number of duplicate originals and
      each such duplicate original shall be deemed to constitute but one and the
      same
      instrument.

     

    Section
      18.07. No
      Oral Change.
      The
      terms of this Security Instrument, together with the terms of the Note and
      the
      other Loan Documents, constitute the entire understanding and agreement of
      the
      parties hereto and supersede all prior agreements, understandings and
      negotiations between Mortgagor and Lender with respect to the Loan. This
      Security Instrument, and any provisions hereof, may not be modified, amended,
      waived, extended, changed, discharged or terminated orally or by any act on
      the
      part of Mortgagor or Lender, but only by an agreement in writing signed by
      the
      party against whom enforcement of any modification, amendment, waiver,
      extension, change, discharge or termination is sought.

     

    Section
      18.08. Waiver
      of Counterclaim, Etc.
      MORTGAGOR HEREBY WAIVES THE RIGHT TO ASSERT A COUNTERCLAIM, OTHER THAN A
      COMPULSORY COUNTERCLAIM, IN ANY ACTION OR PROCEEDING BROUGHT AGAINST IT BY
      LENDER OR ITS AGENTS, AND WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING
      BROUGHT BY EITHER PARTY HERETO AGAINST THE OTHER OR IN ANY COUNTERCLAIM
      MORTGAGOR MAY BE PERMITTED TO ASSERT HEREUNDER OR WHICH MAY BE ASSERTED BY
      LENDER OR ITS AGENTS, AGAINST MORTGAGOR, OR IN ANY MATTERS WHATSOEVER ARISING
      OUT OF OR IN ANY WAY CONNECTED WITH THIS SECURITY INSTRUMENT OR THE
      DEBT.

     

    Section
      18.09. Headings;
      Construction of Documents; etc.
      The
      table of contents, headings and captions of various paragraphs of this Security
      Instrument are for convenience of reference only and are not to be construed
      as
      defining or limiting, in any way, the scope or intent of the provisions hereof.
      Mortgagor acknowledges that it was represented by competent counsel in
      connection with the negotiation and drafting of this Security Instrument and
      the
      other Loan Documents and that neither this Security Instrument nor the other
      Loan Documents shall be subject to the principle of construing the meaning
      against the Person who drafted same.

     

    
      
        
        

      

      
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    Section
      18.10. Sole
      Discretion of Lender.
      Whenever Lender exercises any right given to it to approve or disapprove, or
      any
      arrangement or term is to be satisfactory to Lender, the decision of Lender
      to
      approve or disapprove or to decide that arrangements or terms are satisfactory
      or not satisfactory shall be in the sole discretion of Lender and shall be
      final
      and conclusive, except as may be otherwise specifically provided
      herein.

     

    Section
      18.11. Waiver
      of Notice.
      Mortgagor shall not be entitled to any notices of any nature whatsoever from
      Lender except with respect to matters for which this Security Instrument
      specifically and expressly provides for the giving of notice by Lender to
      Mortgagor and except with respect to matters for which Mortgagor is not,
      pursuant to applicable Legal Requirements, permitted to waive the giving of
      notice.

     

    Section
      18.12. Covenants
      Run with the Land.
      All of
      the grants, covenants, terms, provisions and conditions herein shall run with
      the Premises, shall be binding upon Mortgagor and shall inure to the benefit
      of
      Lender, subsequent holders of this Security Instrument and their successors
      and
      assigns. Without limitation to any provision hereof, the term “Mortgagor” shall
      include and refer to Mortgagor named herein, any subsequent owner of the
      Property, and its respective heirs, executors, legal representatives, successors
      and assigns. The representations, warranties and agreements contained in this
      Security Instrument and the other Loan Documents are intended solely for the
      benefit of the parties hereto, shall confer no rights hereunder, whether legal
      or equitable, in any other Person and no other Person shall be entitled to
      rely
      thereon.

     

    Section
      18.13. Applicable
      Law.
      THIS
      SECURITY INSTRUMENT WAS NEGOTIATED IN NEW YORK, AND MADE BY MORTGAGOR AND
      ACCEPTED BY LENDER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE NOTE WERE
      DISBURSED FROM NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL
      RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY,
      AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE
      FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. THIS SECURITY
      INSTRUMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND
      CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE
      TO
      CONTRACTS MADE AND PERFORMED IN SUCH STATE AND ANY APPLICABLE LAW OF THE UNITED
      STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION,
      PERFECTION, PRIORITY, ENFORCEMENT AND FORECLOSURE OF THE LIENS AND SECURITY
      INTERESTS CREATED HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO
      THE
      LAW OF THE STATE IN WHICH THE PREMISES IS LOCATED, IT BEING UNDERSTOOD THAT,
      TO
      THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE
      OF
      NEW YORK SHALL GOVERN THE VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS,
      AND
      THE DEBT OR OBLIGATIONS ARISING HEREUNDER.

     

    
      
        
        

      

      
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    Section
      18.14. Security
      Agreement.
      (a)
      (i)
      This
      Security Instrument is both a real property mortgage, deed to secure debt or
      deed of trust, as applicable, and a “security agreement” within the meaning of
      the UCC. The Property includes both real and personal property and all other
      rights and interests, whether tangible or intangible in nature, of Mortgagor
      in
      the Property, and Mortgagor hereby grants to Lender a security interest in
      all
      portions of the Property constituting personal property or fixtures under the
      UCC. This Security Instrument is filed as a fixture filing and covers goods
      which are or are to become fixtures on the Property. Mortgagor by executing
      and
      delivering this Security Instrument has granted to Lender, as security for
      the
      Debt, a security interest in the Property to the full extent that the Property
      may be subject to the UCC (said portion of the Property so subject to the UCC
      being called in this Section 18.14 the “Collateral”).
      If an
      Event of Default shall occur, Lender, in addition to any other rights and
      remedies which it may have, shall have and may exercise immediately and without
      demand, any and all rights and remedies granted to a secured party upon default
      under the UCC, including, without limiting the generality of the foregoing,
      to
      the extent allowed by Legal Requirements. the right to take possession of the
      Collateral or any part thereof, and to take such other measures as Lender may
      deem necessary for the care, protection and preservation of the Collateral.
      Upon
      request or demand of Lender following an Event of Default, Mortgagor shall,
      at
      its expense, assemble the Collateral and make it available to Lender at a
      convenient place acceptable to Lender. Mortgagor shall pay to Lender on demand
      any and all expenses, including reasonable legal expenses and attorneys’ fees,
      incurred or paid by Lender in protecting its interest in the Collateral and
      in
      enforcing its rights hereunder with respect to the Collateral. Any disposition
      pursuant to the UCC of so much of the Collateral as may constitute personal
      property shall be considered commercially reasonable if made pursuant to a
      public sale which is advertised at least twice in a newspaper in which sheriff’s
      sales are advertised in the county where the Premises is located. Any notice
      of
      sale, disposition or other intended action by Lender with respect to the
      Collateral given to Mortgagor in accordance with the provisions hereof at least
      ten (10) days prior to such action, shall constitute reasonable notice to
      Mortgagor. The proceeds of any disposition of the Collateral, or any part
      thereof, may be applied by Lender to the payment of the Debt in such priority
      and proportions as Lender in its discretion shall deem proper. It is not
      necessary that the Collateral be present at any disposition thereof. Lender
      shall have no obligation to clean-up or otherwise prepare the Collateral for
      disposition.

     

    (ii) The
      mention in a financing statement filed in the records normally pertaining to
      personal property of any portion of the Property shall not derogate from or
      impair in any manner the intention of this Security Instrument. Lender hereby
      declares that all items of Collateral are part of the real property encumbered
      hereby to the fullest extent permitted by law, regardless of whether any such
      item is physically attached to the Improvements or whether serial numbers are
      used for the better identification of certain items. Specifically, the mention
      in any such financing statement of any items included in the Property shall
      not
      be construed to alter, impair or impugn any rights of Lender as determined
      by
      this Security Instrument or the priority of Lender’s lien upon and security
      interest in the Property in the event that notice of Lender’s priority of
      interest as to any portion of the Property is required to be filed in accordance
      with the UCC to be effective against or take priority over the interest of
      any
      particular class of persons, including the federal government or any subdivision
      or instrumentality thereof. No portion of the Collateral constitutes or is
      the
      proceeds of “Farm Products”, as defined in the UCC.

     

    
      
        
        

      

      
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    (iii) If
      Mortgagor is at any time a beneficiary under a letter of credit now or hereafter
      issued in favor of Mortgagor, Mortgagor shall promptly notify Lender thereof
      and, at the request and option of Lender, Mortgagor shall, pursuant to an
      agreement in form and substance satisfactory to Lender, either (A) arrange
      for
      the issuer and any confirmer of such letter of credit to consent to an
      assignment to Lender of the proceeds of any drawing under the letter of credit
      or (B) arrange for Lender to become the transferee beneficiary of the letter
      of
      credit, with Lender agreeing, in each case, that the proceeds of any drawing
      under the letter to credit are to be applied as provided in this Security
      Instrument.

     

    (iv) Mortgagor
      and Lender acknowledge that for the purposes of Article 9 of the UCC, the law
      of
      the State of New York shall be the law of the jurisdiction of the bank in which
      the Central Account is located.

     

    (v) Lender
      may comply with any applicable Legal Requirements in connection with the
      disposition of the Collateral, and Lender’s compliance therewith will not be
      considered to adversely affect the commercial reasonableness of any sale of
      the
      Collateral.

     

    (vi) Lender
      may sell the Collateral without giving any warranties as to the Collateral.
      Lender may specifically disclaim any warranties of title, possession, quiet
      enjoyment or the like. This procedure will not be considered to adversely affect
      the commercial reasonableness of any sale of the Collateral.

     

    (vii) If
      Lender
      sells any of the Collateral upon credit, Mortgagor will be credited only with
      payments actually made by the purchaser, received by Lender and applied to
      the
      indebtedness of Mortgagor. In the event the purchaser of the Collateral fails
      to
      fully pay for the Collateral, Lender may resell the Collateral and Mortgagor
      will be credited with the proceeds of such sale.

     

    (b) Mortgagor
      hereby irrevocably appoints Lender as its attorney-in-fact, coupled with an
      interest, to file with the appropriate public office on its behalf any financing
      or other statements signed only by Lender, as secured party, or, to the extent
      permitted under the UCC, unsigned, in connection with the Collateral covered
      by
      this Security Instrument.

     

    Section
      18.15. Actions
      and Proceedings.
      Lender
      has the right to appear in and defend any action or proceeding brought with
      respect to the Property in its own name or, if required by Legal Requirements
      or, if in Lender’s reasonable judgment, it is necessary, in the name and on
      behalf of Mortgagor, which Lender believes will adversely affect the Property
      or
      this Security Instrument and to bring any action or proceedings, in its name
      or
      in the name and on behalf of Mortgagor, which Lender, in its reasonable
      discretion, decides should be brought to protect its interest in the
      Property.

     

    Section
      18.16. Usury
      Laws.
      This
      Security Instrument and the Note are subject to the express condition, and
      it is
      the expressed intent of the parties, that at no time shall Mortgagor be
      obligated or required to pay interest on the principal balance due under the
      Note at a rate which could subject the holder of the Note to either civil or
      criminal liability as a result of being in excess of the maximum interest rate
      which Mortgagor is permitted by law to contract or agree to pay. If by the
      terms
      of this Security Instrument or the Note, Mortgagor is at any time required
      or
      obligated to pay interest on the principal balance due under the Note at a
      rate
      in excess of such maximum rate, such rate of interest shall be deemed to be
      immediately reduced to such maximum rate and the interest payable shall be
      computed at such maximum rate and all prior interest payments in excess of
      such
      maximum rate shall be applied and shall be deemed to have been payments in
      reduction of the principal balance of the Note. No application to the principal
      balance of the Note pursuant to this Section 18.16 shall give rise to any
      requirement to pay any prepayment fee or charge of any kind due hereunder,
      if
      any.

     

    
      
        
        

      

      
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    Section
      18.17. Remedies
      of Mortgagor.
      In the
      event that a claim or adjudication is made that Lender has acted unreasonably
      or
      unreasonably delayed acting in any case where by law or under the Note, this
      Security Instrument or the Loan Documents, it has an obligation to act
      reasonably or promptly, Lender shall not be liable for any monetary damages,
      and
      Mortgagor’s remedies shall be limited to injunctive relief or declaratory
      judgment.

     

    Section
      18.18. Offsets,
      Counterclaims and Defenses.
      Any
      assignee of this Security Instrument, the Assignment and the Note shall take
      the
      same free and clear of all offsets, counterclaims or defenses which are
      unrelated to the Note, the Assignment or this Security Instrument which
      Mortgagor may otherwise have against any assignor of this Security Instrument,
      the Assignment and the Note and no such unrelated counterclaim or defense shall
      be interposed or asserted by Mortgagor in any action or proceeding brought
      by
      any such assignee upon this Security Instrument, the Assignment or the Note
      and
      any such right to interpose or assert any such unrelated offset, counterclaim
      or
      defense in any such action or proceeding is hereby expressly waived by
      Mortgagor.

     

    Section
      18.19. No
      Merger.
      If
      Mortgagor’s and Lender’s estates become the same including, without limitation,
      upon the delivery of a deed by Mortgagor in lieu of a foreclosure sale, or
      upon
      a purchase of the Property by Lender in a foreclosure sale, this Security
      Instrument and the lien created hereby shall not be destroyed or terminated
      by
      the application of the doctrine of merger and in such event Lender shall
      continue to have and enjoy all of the rights and privileges of Lender as to
      the
      separate estates; and, as a consequence thereof, upon the foreclosure of the
      lien created by this Security Instrument, any Leases or subleases then existing
      and created by Mortgagor shall not be destroyed or terminated by application
      of
      the law of merger or as a result of such foreclosure unless Lender or any
      purchaser at any such foreclosure sale shall so elect. No act by or on behalf
      of
      Lender or any such purchaser shall constitute a termination of any Lease or
      sublease unless Lender or such purchaser shall give written notice thereof
      to
      such lessee or sublessee.

     

    Section
      18.20. Restoration
      of Rights.
      In case
      Lender shall have proceeded to enforce any right under this Security Instrument
      by foreclosure sale, entry or otherwise, and such proceedings shall have been
      discontinued or abandoned for any reason or shall have been determined
      adversely, then, in every such case, Mortgagor and Lender shall be restored
      to
      their former positions and rights hereunder with respect to the Property subject
      to the lien hereof.

     

    
      
        
        

      

      
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    Section
      18.21. Waiver
      of Statute of Limitations.
      The
      pleadings of any statute of limitations as a defense to any and all obligations
      secured by this Security Instrument are hereby waived to the full extent
      permitted by Legal Requirements.

     

    Section
      18.22. Advances.
      This
      Security Instrument shall cover any and all advances made pursuant to the Loan
      Documents, rearrangements and renewals of the Debt and all extensions in the
      time of payment thereof, even though such advances, extensions or renewals
      be
      evidenced by new promissory notes or other instruments hereafter executed and
      irrespective of whether filed or recorded. Likewise, the execution of this
      Security Instrument shall not impair or affect any other security which may
      be
      given to secure the payment of the Debt, and all such additional security shall
      be considered as cumulative. The taking of additional security, execution of
      partial releases of the security, or any extension of time of payment of the
      Debt shall not diminish the force, effect or lien of this Security Instrument
      and shall not affect or impair the liability of Mortgagor and shall not affect
      or impair the liability of any maker, surety, or endorser for the payment of
      the
      Debt.

     

    Section
      18.23. Application
      of Default Rate Not a Waiver.
      Application of the Default Rate shall not be deemed to constitute a waiver
      of
      any Default or Event of Default or any rights or remedies of Lender under this
      Security Instrument, any other Loan Document or applicable Legal Requirements,
      or a consent to any extension of time for the payment or performance of any
      obligation with respect to which the Default Rate may be invoked.

     

    Section
      18.24. Intervening
      Lien.
      To the
      fullest extent permitted by law, any agreement hereafter made pursuant to this
      Security Instrument shall be superior to the rights of the holder of any
      intervening lien or security interest.

     

    Section
      18.25. No
      Joint Venture or Partnership.
      Mortgagor and Lender intend that the relationship created hereunder be solely
      that of mortgagor and mortgagee or grantor and beneficiary or borrwoer and
      lender, as the case may be. Nothing herein is intended to create a joint
      venture, partnership, tenancy-in-common, or joint tenancy relationship between
      Mortgagor and Lender nor to grant Lender any interest in the Property other
      than
      that of mortgagee, beneficiary or lender.

     

    Section
      18.26. Time
      of the Essence.
      Time
      shall be of the essence in the performance of all obligations of Mortgagor
      hereunder.

     

    Section
      18.27. Mortgagor’s
      Obligations Absolute.
      Mortgagor acknowledges that Lender and/or certain Affiliates of Lender are
      engaged in the business of financing, owning, operating, leasing, managing,
      and
      brokering real estate and in other business ventures which may be viewed as
      adverse to or competitive with the business, prospect, profits, operations
      or
      condition (financial or otherwise) of Mortgagor. Except as set forth to the
      contrary in the Loan Documents, all sums payable by Mortgagor hereunder shall
      be
      paid without notice or demand, counterclaim, set-off, deduction or defense
      and
      without abatement, suspension, deferment, diminution or reduction, and the
      obligations and liabilities of Mortgagor hereunder shall in no way be released,
      discharged, or otherwise affected (except as expressly provided herein) by
      reason of: (a) any damage to or destruction of or any Taking of the Property
      or
      any portion thereof or any other Cross-collateralized
      Property; (b) any restriction or prevention of or interference with any use
      of
      the Property or any portion thereof or any other Cross-collateralized Property;
      (c) any title defect or encumbrance or any eviction from the Premises or any
      portion thereof by title paramount or otherwise; (d) any bankruptcy proceeding
      relating to Mortgagor, any General Partner, or any guarantor or indemnitor,
      or
      any action taken with respect to this Security Instrument or any other Loan
      Document by any trustee or receiver of Mortgagor or any other
      Cross-collateralized Mortgagor or any such General Partner, guarantor or
      indemnitor, or by any court, in any such proceeding; (e) any claim which
      Mortgagor has or might have against Lender; (f) any default or failure on the
      part of Lender to perform or comply with any of the terms hereof or of any
      other
      agreement with Mortgagor or any other Cross-collateralized Mortgagor; or (g)
      any
      other occurrence whatsoever, whether similar or dissimilar to the foregoing,
      whether or not Mortgagor shall have notice or knowledge of any of the
      foregoing. 

     

    
      
        
        

      

      
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    Section
      18.28. Publicity.
      All
      promotional news releases, publicity or advertising by Manager, Mortgagor or
      their respective Affiliates through any media intended to reach the general
      public shall not refer to the Loan Documents or the financing evidenced by
      the
      Loan Documents, or to Lender or to any of its Affiliates without the prior
      written approval of Lender or such Affiliate, as applicable, in each instance,
      such approval not to be unreasonably withheld or delayed. Lender shall be
      authorized to provide information relating to the Property, the Loan and matters
      relating thereto to rating agencies, underwriters, potential securities
      investors, auditors, regulatory authorities and to any Persons which may be
      entitled to such information by operation of law. 

     

    Section
      18.29. Securitization
      Opinions.
      In the
      event the Loan is included as an asset of a Securitization by Lender or any
      of
      its Affiliates, Mortgagor shall, within fifteen (15) Business Days after
      Lender’s written request therefor, at Lender’s sole cost and expense, deliver
      opinions in form and substance and delivered by counsel reasonably acceptable
      to
      Lender and each Rating Agency, as may be reasonably required by Lender and/or
      each Rating Agency in connection with such securitization. Mortgagor’s failure
      to deliver the opinions required hereby within such ten (10) Business Day period
      shall constitute an “Event of Default” hereunder.

     

    Section
      18.30. Intentionally
      Deleted. 

     

    Section
      18.31. Securitization
      Financials.
      Mortgagor covenants and agrees that, upon Lender’s written request therefor in
      connection with a Securitization, Mortgagor shall, at Lender’s sole cost and
      expense, promptly deliver audited financial statements and related documentation
      prepared by an Independent certified public accountant that satisfy securities
      laws and requirements for use in a public registration statement (which may
      include up to three (3) years of historical audited financial
      statements).

     

    
      
        
        

      

      
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    Section
      18.32. Exculpation.
      Notwithstanding anything herein or in any other Loan Document to the contrary,
      except as otherwise set forth in this Section 18.32 to the contrary, Lender
      shall not enforce the liability and obligation of Mortgagor or (a) if Mortgagor
      is a partnership, its constituent partners or any of their respective partners,
      (b) if Mortgagor is a trust, its beneficiaries or any of their respective
      Partners (as hereinafter defined), (c) if Mortgagor is a corporation, any of
      its
      shareholders, directors, principals, officers or employees, or (d) if Mortgagor
      is a limited liability company, any of its members, managers, officers or
      directors (the Persons described in the foregoing clauses (a) - (d), as the
      case
      may be, are hereinafter referred to as the “Partners”)
      to
      perform and observe the obligations contained in this Security Instrument or
      any
      of the other Loan Documents by any action or proceeding wherein a money judgment
      shall be sought against Mortgagor or the Partners, except that Lender may bring
      a foreclosure action, action for specific performance, or other appropriate
      action or proceeding (including, without limitation, an action to obtain a
      deficiency judgment) solely for the purpose of enabling Lender to realize upon
      (i) Mortgagor’s interest in the Property, (ii) the Rent to the extent received
      by Mortgagor (or received by its Partners) after the occurrence of an Event
      of
      Default and not either delivered to Lender (or Lender’s agent) or applied to
      ordinary and necessary expenses of owning and operating the Property (the
“Recourse
      Distributions”)
      and
      (iii) any other collateral given to Lender under the Loan Documents (the
      collateral described in the foregoing clauses (i) - (iii) is hereinafter
      referred to as the “Default
      Collateral”);
      provided,
      however,
      that
      any judgment in any such action or proceeding shall be enforceable against
      Mortgagor or the Partners, as the case may be, only to the extent of any such
      Default Collateral. The provisions of this Section shall not, however, (a)
      impair the validity of the Debt evidenced by the Note or in any way affect
      or
      impair the lien of this Security Instrument or any of the other Loan Documents
      or the right of Lender to foreclose this Security Instrument following the
      occurrence of an Event of Default; (b) impair the right of Lender to name
      Mortgagor as a party defendant in any action or suit for judicial foreclosure
      and sale under this Security Instrument; (c) affect the validity or
      enforceability of the Note, this Security Instrument, or any of the other Loan
      Documents, or impair the right of Lender to seek a personal judgment against
      the
      Guarantor; (d) impair the right of Lender to obtain the appointment of a
      receiver; (e) impair the enforcement of the Assignment; (f) impair the right
      of
      Lender to bring suit for a monetary judgment against Mortgagor with respect
      to
      any losses resulting from fraud, material misrepresentation, or failure to
      disclose a material fact, any untrue statement of a material fact or omission
      to
      state a material fact in the written materials and/or information provided
      to
      Lender or any of its affiliates by or on behalf of Mortgagor, Guarantor or
      any
      of their Affiliates in connection with this Security Instrument, the Note or
      the
      other Loan Documents, and the foregoing provisions shall not modify, diminish
      or
      discharge the liability of Mortgagor, Guarantor or any of their Affiliates
      with
      respect to same; (g) impair the right of Lender to bring suit for a monetary
      judgment against Mortgagor to obtain the Recourse Distributions received by
      Mortgagor including, without limitation, the right to bring suit for a monetary
      judgment to proceed against Guarantor to the extent of Guarantor’s liability
      under any guaranty delivered by Guarantor and the foregoing provisions shall
      not
      modify, diminish or discharge the liability of Mortgagor or Guarantor with
      respect to same; (h) impair the right of Lender to bring suit for a monetary
      judgment against Mortgagor with respect to any losses resulting from Mortgagor’s
      misappropriation of tenant security deposits or Rent (other than rent deemed
      “additional rent” under the Leases) collected more than one (1) month in
      advance, and the foregoing provisions shall not modify, diminish or discharge
      the liability of Mortgagor with respect to same; (i) impair the right of Lender
      to obtain Loss Proceeds due to Lender pursuant to this Security Instrument
      to
      the extent actually paid by the insurer; (j) impair the right of Lender to
      enforce the provisions of Sections 2.02(g), 16.01 or 16.02, inclusive of this
      Security Instrument, even after repayment in full by Mortgagor of the Debt
      or to
      bring suit for a monetary judgment against Mortgagor with respect to any losses
      resulting from any obligation set forth in said Sections; (k) prevent or in
      any
      way hinder Lender from exercising, or constitute a defense, or counterclaim,
      or
      other basis for relief in respect of the exercise of, any other remedy against
      any or all of the collateral securing the Note as provided in the Loan
      Documents; (l) impair the right of Lender to bring suit for a monetary judgment
      against Mortgagor with respect to any losses resulting from any misappropriation
      or conversion of Loss Proceeds, and the foregoing provisions shall not modify,
      diminish or discharge the liability of Mortgagor with respect to same; (m)
      impair the right of Lender to sue for, seek or demand a deficiency judgment
      against Mortgagor solely for the purpose of foreclosing the Property or any
      part
      thereof, or realizing upon the Default Collateral; provided,
      however,
      that
      any such deficiency judgment referred to in this clause (m) shall be enforceable
      against Mortgagor and Guarantor only to the extent of any of the Default
      Collateral; (n) impair the ability of Lender to bring suit for a monetary
      judgment against Mortgagor with respect to any losses resulting from arson
      or
      physical waste to or of the Property or damage to the Property in each case
      resulting from the intentional acts or intentional omissions of Mortgagor,
      Guarantor or any of their Affiliates; (o) impair the right of Lender to bring
      a
      suit for a monetary judgment against Mortgagor in the event of the exercise
      of
      any right or remedy under any federal, state or local forfeiture laws resulting
      in the loss of the lien of this Security Instrument, or the priority thereof,
      against the Property; (p) be deemed a waiver of any right which Lender may
      have
      under Sections 506(a), 506(b), 1111(b) or any other provision of the Bankruptcy
      Code to file a claim for the full amount of the Debt or to require that all
      collateral shall continue to secure all of the Debt; (q) impair the right of
      Lender to bring suit for monetary judgment against Mortgagor with respect to
      any
      losses resulting from any claims, actions or proceedings initiated by Mortgagor
      (or any Affiliate of Mortgagor) alleging that the relationship of Mortgagor
      and
      Lender is that of joint venturers, partners, tenants in common, joint tenants
      or
      any relationship other than that of debtor and creditor; (r) impair the right
      of
      Lender to bring suit for a monetary judgment with respect to any losses
      resulting from a Transfer in violation of the provisions of Article IX hereof;
      or (s) impair the right of Lender to bring suit against Mortgagor for
      Mortgagor’s failure to pay any valid taxes, assessments, mechanic’s liens,
      materialmen’s liens or other liens which could create liens on any portion of
      the Property superior to the lien or security title of this Security Instrument
      or the other Loan Documents, except, (1) with respect to any such taxes or
      assessments, to the extent that funds have been deposited with Lender pursuant
      to the terms of this Security Instrument specifically for the applicable taxes
      or assessments and not applied by Lender to pay such taxes and assessments,
      and
      (2) to the extent that there is insufficient available cash flow at any time
      to
      enable Mortgagor to pay all operating expenses (including taxes and assessments)
      then due and payable,
      necessary property improvement expenditures and amounts due and payable under
      the Loan Documents (as demonstrated to the reasonable satisfaction of Lender)
      and Mortgagor applies all available cash flow to the payment of any one or
      more
      of the foregoing items.
      The
      provisions of this Section 18.32 shall be inapplicable to Mortgagor if (a)
      any
      proceeding, action, petition or filing under the Bankruptcy Code, or any similar
      state or federal law now or hereafter in effect relating to bankruptcy,
      reorganization or insolvency, or the arrangement or adjustment of debts, shall
      be filed by, consented to or acquiesced in by or with respect to Mortgagor,
      or
      if Mortgagor shall institute any proceeding for its dissolution or liquidation,
      or shall make an assignment for the benefit of creditors or (b) Mortgagor or
      any
      Affiliate contests or interferes with Lender’s enforcement of its rights and
      remedies hereunder or under the Loan Documents by asserting any defense (x)
      as
      to the validity of the obligations under the Loan Documents or in any way
      relating to the structure of the Mortgagor or the enforceability of Lender’s
      rights and remedies under the Loan Documents, or (y) for the purpose of
      delaying, hindering or impairing Lender’s rights and remedies under the Loan
      Documents (collectively, a “Contest”)
      (provided that if any such Person obtains a non-appealable order successfully
      asserting a Contest, Mortgagor shall have no liability under this clause (b)),
      in which event Lender shall have recourse against all of the assets of Mortgagor
      including, without limitation, any right, title and interest of Mortgagor in
      and
      to the Property.

     

    
      
        
        

      

      
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    Section
      18.33. Intentionally
      Deleted

     

    Section
      18.34. Intentionally
      Deleted

     

    Section
      18.35. Release
      of Security Instrument.
      If all
      of the Debt is paid, then and in that event only, all rights under this Security
      Instrument, except for those provisions hereof which by their terms survive,
      shall terminate and the Property shall become wholly clear of the liens,
      security interests, conveyances and assignments evidenced hereby, which shall
      be
      promptly released of record by Lender at Grantor’s sole cost and
      expense.

     

    Section
      18.36. Cooperation.
      (a)
      Mortgagor covenants and agrees that in the event the Loan is to be included
      as
      an asset of a Securitization, Mortgagor shall (a) gather any information
      reasonably required by the Rating Agencies in connection with such a
      Securitization, (b) at Lender’s request, meet with representatives of the Rating
      Agency to discuss the business and operations of the Property, and (c) cooperate
      with the reasonable requests of each Rating Agency and Lender in connection
      with
      all of the foregoing as well as in connection with all other matters and the
      preparation of any offering documents with respect thereof, including, without
      limitation, entering into any amendments or modifications to this Security
      Instrument or to any other Loan Document which may be requested by Lender to
      conform to Rating Agency or market standards for a Securitization provided
      that
      no such modification shall modify (a) the interest rate payable under the Note,
      (b) the stated maturity of the Note, (c) the amortization of principal under
      the
      Note, (d) Section 18.32 hereof, (e) any other material economic term of the
      Loan
      or (f) any provision, the effect of which would materially increase Mortgagor’s
      obligations or materially decrease Mortgagor’s rights under the Loan Documents.
      Mortgagor acknowledges that the information provided by Mortgagor to Lender
      may
      be incorporated into the offering documents for a Securitization. Lender and
      each Rating Agency shall be entitled to rely on the information supplied by,
      or
      on behalf of, Mortgagor and Mortgagor indemnifies and holds harmless the
      Indemnified Parties, their Affiliates and each Person who controls such Persons
      within the meaning of Section 15 of the Securities Act or Section 20 of the
      Securities Exchange Act of 1934, as same may be amended from time to time,
      for,
      from and against any claims, demands, penalties, fines, liabilities,
      settlements, damages, costs and expenses of whatever kind or nature, known
      or
      unknown, contingent or otherwise, whether incurred or imposed within or outside
      the judicial process, including, without limitation, reasonable attorneys’ fees
      and disbursements (including, without limitation, reasonable attorney’s fees and
      expenses, whether incurred within or outside the judicial process) that arise
      out of or are based upon any untrue statement or alleged untrue statement of
      any
      material fact contained in such information or arise out of or are based upon
      the omission or alleged omission to state therein a material fact required
      to be
      stated in such information or necessary in order to make the statements in
      such
      information, or in light of the circumstances under which they were made, not
      misleading.

     

    
      
        
        

      

      
        -102-

        
          

        

      

      
        
        

      

    

     

    (b) Further,
      Mortgagor shall cooperate at no cost to Mortgagor, with Lender and its
      affiliates in connection with any such sale of the Loan by mortgage backed
      pass
      through certificates, participations, securities or pari passu notes evidencing
      whole or component interests therein through one of more public or private
      offerings, including, but not limited to:

     

    (i) separating
      the Loan into two or more separate notes (or components that correspond to
      one
      or more tranches of the certificates/securities created in a Securitization)
      or
      participation interests. Such notes or components or participation interests
      may
      be assigned different interest rates, so long as the weighted average of such
      interest rates equals the interest rate on the Note. Additionally, Lender may
      split the Loan into a senior/subordinated participation structure;

     

    (ii) obtaining
      ratings from two or more Rating Agencies;

     

    (iii) making
      or
      causing to be made reasonable changes or modifications to the loan
      documentation, organizational documentation, opinion letters and other
      documentation; 

     

    (iv) reviewing
      prepared offering materials relating to the Property, Mortgagor, Guarantor
      and
      the Loan;

     

    (v) delivering
      updated information on the Mortgagor, Guarantor and the Property;

     

    (vi) participating
      in investor or Rating Agency meetings if requested by Lender; 

     

    (vii) permitting
      adjustment of Lender’s security interest to permit a senior/subordinate or other
      structure to enhance a Securitization, participation interest or a distribution
      of the Loan; 

     

    (viii) restructuring
      of the Loan and/or a reduction of the Loan Amount with the imposition of a
      mezzanine loan in the corresponding amount to be reduced, which mezzanine loan
      shall be secured by a pledge of ownership interests in Mortgagor or the members
      of Mortgagor. Such notes or components may be assigned different interest rates,
      so long as the weighted average of such interest rates equals the interest
      rate
      on the Note; and

     

    (ix) uncrossing
      the Loan and each Cross-collateralized Mortgage to two (2) or more separate
      loans.

     

    
      
        
        

      

      
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    Section
      18.37. Regulation
      A/B.
      (a)
      If requested by Lender, Mortgagor shall furnish, or shall cause the applicable
      tenant to furnish, to Lender financial data and/or financial statements in
      accordance with Regulation AB (as defined herein) for any tenant of any Property
      if, in connection with a securitization, Lender expects there to be, with
      respect to such tenant or group of affiliated tenants, a concentration within
      all of the mortgage loans included or expected to be included, as applicable,
      in
      such securitization such that such tenant or group of affiliated tenants would
      constitute a Significant Obligor (as defined herein); provided, however, that
      in
      the event the related lease does not require the related tenant to provide
      the
      foregoing information, Mortgagor shall use commercially reasonable efforts
      to
      cause the applicable tenant to furnish such information.

     

    (b)If,
      at the time one or more Disclosure Documents are being prepared for a
      securitization, Lender expects that Mortgagor alone or Mortgagor and one or
      more
      affiliates of Mortgagor collectively, or the Property alone or the Property
      and
      any other parcel(s) of real property, together with improvements thereon and
      personal property related thereto, that is “related”, within the meaning of the
      definition of Significant Obligor, to the Property (a “Related Property”)
      collectively, will be a Significant Obligor, Mortgagor shall furnish to Lender
      upon request (i) the selected financial data or, if applicable, net operating
      income, required under Item 1112(b)(1) of Regulation AB and meeting the
      requirements thereof, if Lender expects that the principal amount of the Loan,
      together with any loans made to an affiliate of Mortgagor or secured by a
      Related Property that is included in a securitization with the Loan (a “Related
      Loan”), as of the cut-off date for such securitization may, or if the principal
      amount of the Loan together with any Related Loans as of the cut-off date for
      such securitization and at any time during which the Loan and any Related Loans
      are included in a securitization does, equal or exceed ten percent (10%) (but
      less than twenty percent (20%)) of the aggregate principal amount of all
      mortgage loans included or expected to be included, as applicable, in the
      securitization or (ii) the financial statements required under Item 1112(b)(2)
      of Regulation AB and meeting the requirements thereof, if Lender expects that
      the principal amount of the Loan together with any Related Loans as of the
      cut-off date for such securitization may, or if the principal amount of the
      Loan
      together with any Related Loans as of the cut-off date for such securitization
      and at any time during which the Loan and any Related Loans are included in
      a
      securitization does, equal or exceed twenty percent (20%) of the aggregate
      principal amount of all mortgage loans included or expected to be included,
      as
      applicable, in the securitization. Such financial data or financial statements
      shall be furnished to Lender (A) within ten (10) Business Days after notice
      from
      Lender in connection with the preparation of Disclosure Documents for the
      securitization, (B) not later than thirty (30) days after the end of each fiscal
      quarter of Mortgagor and (C) not later than seventy-five (75) days after the
      end
      of each fiscal year of Mortgagor; provided, however, that Mortgagor shall not
      be
      obligated to furnish financial data or financial statements pursuant to clauses
      (B) or (C) of this sentence with respect to any period for which a filing
      pursuant to the Securities Exchange Act of 1934 in connection with or relating
      to the securitization (an “Exchange Act Filing”) is not required. As used
      herein, “Regulation AB” shall mean Regulation AB under the Securities Act of
      1933 and the Securities Exchange Act of 1934 (as amended). As used herein,
      “Disclosure Document” shall mean a prospectus, prospectus supplement, private
      placement memorandum, or similar offering memorandum or offering circular,
      in
      each case in preliminary or final form, used to offer securities in connection
      with a securitization. As used herein, “Significant Obligor” shall have the
      meaning set forth in Item 1101(k) of Regulation AB.

     

    
      
        
        

      

      
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    ARTICLE
      XIX: STATE
      SPECIFIC PROVISIONS

     

    Section
      19.01. Louisiana
      Remedies.
      If any
      Event of Default shall occur and be continuing, Lender may, in addition to
      and
      not in lieu of any other rights and remedies hereunder or provided by law,
      exercise any and all remedies provided in any of the other Loan Documents,
      or
      exercise one or more of the following rights and remedies:

    

    (a) Acceleration;
      Foreclosure.
      Lender
      shall have the right, at its sole option, to accelerate the maturity and demand
      payment in full of the secured indebtedness. Lender shall then have the right
      to
      commence appropriate foreclosure proceedings against the Property as provided
      in
      this Mortgage.

    

    (b) Seizure
      and Sale of Property.
      In the
      event that the Lender elects to commence appropriate Louisiana foreclosure
      proceedings under this Mortgage, Lender may cause the Property, or any part
      or
      parts thereof, to be immediately seized and sold, whether in term of court
      or in
      vacation, under ordinary or executory process, in accordance with applicable
      Louisiana law, to the highest bidder for cash, with or without appraisement,
      and
      without the necessity of making additional demand upon or notifying Mortgagor
      or
      placing Mortgagor in default, all of which are expressly waived.

    

    (c) Confession
      of Judgment. For
      purposes of foreclosure under Louisiana executory process procedures, Mortgagor
      confesses judgment and acknowledges to be indebted unto and in favor of the
      Lender, up to the full amount of the secured indebtedness, in principal,
      interest, costs, expenses, and attorneys’ fees. To the extent permitted under
      applicable Louisiana law, Mortgagor additionally waives: (a) the benefit of
      appraisal as provided in Articles 2332, 2336, 2723 and 2724 of the Louisiana
      Code of Civil Procedure, and all other laws with regard to appraisal upon
      judicial sale; (b) the demand and three (3) days' delay as provided under
      Article 2721 of the Louisiana Code of Civil Procedure; (c) the notice of seizure
      as provided under Articles 2293 and 2721 of the Louisiana Code of Civil
      Procedure; (d) the three (3) days' delay provided under Articles 2331 and 2722
      of the Louisiana Code of Civil Procedure; and (e) all other benefits provided
      under Articles 2331, 2722 and 2723 of the Louisiana Code of Civil Procedure
      and
      all other Articles not specifically mentioned above.

    

    (d) Keeper.
      Should
      any or all of the Property be seized as an incident to an action for the
      recognition or enforcement of this Mortgage, by executory process,
      sequestration, attachment, writ of fieri facias or otherwise, Mortgagor hereby
      agrees that the court issuing any such order shall, if requested by Lender,
      appoint Lender, or any agent designated by Lender, or any person or entity
      named
      by Lender at the time such seizure is requested, or any time thereafter, as
      Keeper of the Property as provided under La. R.S. 9:5136 et
      seq.
      Such a
      Keeper shall be entitled to reasonable compensation. Mortgagor agrees to pay
      the
      reasonable fees of such Keeper, which are hereby fixed at the greater of market
      rate or $50.00 per hour, which compensation to the Keeper shall also be secured
      by this Mortgage.

    

    (e) Declaration
      of Fact.
      Should
      it become necessary for Lender to foreclose under this Mortgage, all
      declarations of fact, which are made under an authentic act before a Notary
      Public in the presence of two witnesses, by a person declaring such facts to
      lie
      within his or her knowledge, shall constitute authentic evidence for purposes
      of
      executory process and also for purposes of La. R.S. 9:3509.1, La. R.S.
      9:3504(D)(6) and La. R.S. 10:9-629, where applicable.

     

    
      
        
        

      

      
        -105-

        
          

        

      

      
        
        

      

    

     

    (f) Specific
      Performance.
      Lender
      may, in addition to the foregoing remedies, or in lieu thereof, in Lender’s sole
      discretion, pursuant to Louisiana Civil Code Article 1986, commence an
      appropriate action against Mortgagor seeking specific performance of any
      covenant contained herein, or in aid of the execution or enforcement of any
      power herein granted.

    

    (g) Cumulative
      Remedies.
      Lender’s
      remedies as provided herein shall be cumulative in nature and nothing under
      this
      Mortgage shall be construed as to limit or restrict the options and remedies
      available to Lender following any Event of Default, or to in any way limit
      or
      restrict the rights and ability of Lender to proceed directly against Mortgagor
      and/or any guarantor or endorser of Mortgagor's secured indebtedness, or to
      proceed against other collateral directly or indirectly securing any such
      secured indebtedness.

    

    (h) Assignment
      of Leases.
      Upon the
      occurrence of an Event of Default hereunder, then the assignment of Rents and
      Profits granted in this Mortgage shall automatically become absolute as provided
      in La. R.S. 9:4401, and Lender, without in any way waiving such default, at
      its
      option, upon notice and without regard to the adequacy of the security for
      the
      secured indebtedness or to whether it has exercised any of its other rights
      or
      remedies hereunder, shall have the right to directly collect and receive all
      rents and any other proceeds and/or payments arising under or in any way
      accruing under the leases assigned herein, as such amounts become due and
      payable and to apply the same to the secured indebtedness as provided herein.
      Nothing herein shall be construed to limit the exercise of any remedies
      otherwise granted to Lender in this instrument. Mortgagor unconditionally agrees
      to deliver to Lender, immediately following demand, any and all of Mortgagor’s
      records, ledger sheets, and other documentation, in the form requested by
      Lender, with regard to the Leases and the Rents and any and all proceeds and/or
      payments applicable thereto. Lender shall have the further right, upon the
      occurrence of an Event of Default, where appropriate and within Lender’s sole
      discretion, to file suit, either in Mortgagor’s own name or in the name of
      Lender, to collect any and all Rents and other proceeds and payments that may
      then and/or in the future be due and owing under and/or as a result of the
      Leases assigned herein. Where it is necessary for Lender to attempt to collect
      any such Rents and other proceeds and/or payments from the obligors therefor,
      Lender may compromise, settle, extend, or renew for any period (whether or
      not
      longer than the original period) any obligation or indebtedness thereunder
      or
      evidenced thereby, or surrender, release, or exchange all or any part of said
      obligation or indebtedness, without affecting the liability of Lender under
      this
      Mortgage or under the Debt. To that end, Mortgagor hereby irrevocably
      constitutes and appoints Lender as its attorney-in-fact, coupled with an
      interest and with full power of substitution, to take any and all such actions
      and any and all other actions permitted hereby, either in the name of Mortgagor
      or Lender. In order to permit the foregoing, Lender shall have the additional
      irrevocable right, coupled with an interest, to: (a) remove any and all of
      Mortgagor’s documents, instruments, files and records relating or pertaining to
      the Leases and/or the Rents from any premises where the same shall then be
      located; (b) at Mortgagor’s sole cost and expense, use such of Mortgagor’s
      personnel, supplies and space at Mortgagor’s place or places of business as may
      be necessary and proper within Lender’s sole discretion, to administer
      collection of such proceeds and/or payments; (c) receive, open and dispose
      of
      all mail addressed to Mortgagor pertaining to any of the Leases and/or the
      Rents
      and proceeds and/or payments thereunder; (d) notify the postal authorities
      to
      change the address the delivery of mail addressed to Mortgagor pertaining to
      any
      of the Leases and/or Rents and proceeds and/or payments thereunder, to such
      address as Lender may designate; (e) endorse Mortgagor’s name on any and all
      notes, acceptances, checks, drafts, money orders, or other evidences of payment
      of such proceeds and/or payments that may come into Lender’s possession, and to
      deposit or otherwise collect the same; (f) prepare and mail invoices and/or
      statements to such obligors and/or debtors; (g) send verifications of amounts
      owed to such obligors; and (h) execute in Mortgagor’s name affidavits and/or
      notices with regard to lien rights available to Mortgagor in connection with
      such Leases and/or Rents. In the event that Mortgagor should, for any reason
      whatsoever, receive any proceeds derived from the sale, lease, insurance loss,
      damage and/or condemnation, of all or any part of said premises and/or the
      Leases or Rents, or should Mortgagor receive any other payments under the Leases
      or Rents as provided hereunder (with such proceeds and/or payments being
      hereinafter individually, collectively and interchangeably referred to as
      Mortgagor’s “Rent
      Funds”),
      following notice to the obligors thereunder to make their respective payments
      directly to Mortgagor, Mortgagor shall hold such Rent Funds in trust for and
      on
      behalf of Lender, and Mortgagor hereby unconditionally agrees to remit or to
      otherwise turn over such Rent Funds to Lender immediately following demand.
      Should Mortgagor deposit any such Rent Funds into one or more of Mortgagor’s
      deposit accounts, no matter where located, Lender shall have the additional
      right to attach any and all of Mortgagor’s deposit accounts in which Lender may
      prove such Rent Funds were deposited, whether or not such Rent Funds are or
      were
      commingled with other moneys of Mortgagor, and whether or not such Rent Funds
      then remain on deposit in such an account or accounts. Anything to the contrary
      in this Mortgage notwithstanding, Lender will not be deemed or construed to
      have
      taken possession of said premises or to be managing it by reason of its exercise
      of any of its rights or remedies under this Paragraph.

     

    
      
        
        

      

      
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    The
      term
“lien” will also mean a privilege, mortgage, security interest, assignment, or
      other encumbrance. The term “real property” will mean “immovable property” as
      that term is used in the Louisiana Civil Code. The term “personal property” will
      mean “movable property” as that term is used in the Louisiana Civil Code. The
      term “easement” will mean “servitude” as that term is used in the Louisiana
      Civil Code. The term “building” will also include “other constructions” as that
      term is used in the Louisiana Civil Code. The term “tangible” will mean
“corporeal” as that term is used in the Louisiana Civil Code. The term
“intangible” will mean “incorporeal” as that term is used in the Louisiana Civil
      Code. The term “Uniform Commercial Code” will mean Louisiana Commercial Laws,
      La. R.S. 10:1-101 et
      seq.
      The
      term “fee estate” will mean “full ownership interest” as that term is used in
      the Louisiana Civil Code. The term “condemnation” will include “expropriation”
as that term is used in Louisiana law. The term “receiver” will include “keeper”
as that term is used in Louisiana law. The term “conveyance in lieu of
      foreclosure” or “action in lieu thereof” will mean “giving in payment” as that
      term is used in the Louisiana Civil Code and “dation en paiment”. The term
“joint and several” will mean “solidary” as that term is used in the Louisiana
      Civil Code. The term “county” will mean “parish” as that term is used in
      Louisiana.

     

    
      
        
        

      

      
        -107-

        
          

        

      

      
        
        

      

    

     

    (i) Automatic
      Transfer of Rights.
      In the
      event of foreclosure under this Mortgage, or other transfer of title or
      assignment of the Property, or any part or parts thereof, in lieu of payment
      of
      the Debt, whether in whole or in part, all policies of insurance and other
      incorporeal rights applicable to the foreclosed upon or transferred Property
      (collectively, the “Rights”) shall automatically inure to the benefit of and
      shall pass to the purchaser(s) or transferee)s) thereof, subject to the rights
      of the purchaser(s) or transferee(s) to reject such insurance coverage and/or
      Rights at its or their sole option and election.

     

    (j) Public
      or Private Sale of Collateral.
      To the
      extent that any of the Property is then in Lender’s possession, Lender shall
      have full power to sell, lease, transfer, or otherwise deal with the Property
      or
      proceeds thereof in its own name or that of Mortgagor. Lender may sell the
      Property at public auction or private sale. Unless the Property threatens to
      decline speedily in value or is of a type customarily sold on a recognized
      market, Lender will give Mortgagor reasonable notice of the time after which
      any
      private sale or any other intended disposition of the Property is to be made.
      All expenses relating to the disposition of the Property, including without
      limitation the expenses of retaking, holding, insuring, preparing for sale
      and
      selling the Property, shall become a part of the Debt secured hereby and shall
      be payable on demand, with interest at the Default Interest Rate from date
      of
      expenditure until repaid. Mortgagor agrees that any such sale shall be
      conclusively deemed to be conducted in a commercially reasonable manner if
      it is
      made consistent with the standard of similar sales of collateral by commercial
      banks in Louisiana.

     

    (k) Collect
      Revenues, Apply Accounts.
      Lender
      shall have the right, at its sole option and election, to directly collect
      and
      receive all proceeds and/or payments arising under or in any way accruing from
      the Property, as such amounts become due and payable. In order to permit the
      foregoing, Mortgagor unconditionally agrees to deliver to Lender, immediately
      following demand, any and all of Mortgagor’s records, ledger sheets, and other
      documentation, in the form requested by Lender, with regard to the Property
      and
      any and all proceeds and/or payments applicable thereto. Lender shall have
      the
      further right within Lender’s sole discretion, to file suit, either in Lender’s
      own name or in the name of Mortgagor, to collect any and all proceeds and
      payments that may then and/or in the future be due and owing under this
      Mortgage, and if as a result of such it is necessary for Lender to attempt
      to
      collect any such proceeds and/or payments from the obligors therefor, Lender
      may
      compromise, settle, extend, or renew for any period (whether or not longer
      than
      the original period) any obligation or indebtedness thereunder or evidenced
      thereby, or surrender, release, or exchange all or any part of said obligation
      or indebtedness, without affecting the liability of Mortgagor under this
      Mortgage or under the Obligations. To that end, Mortgagor hereby irrevocably
      constitutes and appoints Lender as its attorney-in-fact, coupled with an
      interest and with full power of substitution, to take any and all such actions
      and any and all other actions permitted hereby, either in the name of Mortgagor
      or Lender.

     

    (l) Additional
      Expenses.
      In the
      event that it should become necessary for Lender to conduct a search for any
      of
      the Property in connection with any foreclosure action, or should it be
      necessary to remove the Property, or any part or parts thereof, from the
      premises in which or on which the Property is then located, and/or to store
      and/or refurbish such Property, Mortgagor agrees to reimburse Lender for the
      cost of conducting such a search and/or removing and/or storing and/or
      refurbishing such Property, which additional expense shall also be secured
      by
      the lien of this Mortgage and the assignments and security interests created
      herein.

     

    
      
        
        

      

      
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    Section
      19.02. Waiver
      and Release.
      The
      parties to this Security Instrument hereby waive the production of mortgage,
      conveyance, tax, paving and other certificates and relive and release the Notary
      Public before whom this Security Instrument was passed from all responsibilities
      and liabilities in connection therewith.

     

    Section
      19.03. No
      Paraph.
      Mortgagor declares that none of the secured indebtedness secured by this
      Mortgage has been “paraphed” for identification with this Mortgage.

     

    Section
      19.04. The
      parties to this Security Instrument hereby waive the production of mortgage,
      conveyance, tax, paying, assignment of accounts receivable and other
      certificates and relieve and release the Notary before whom this Mortgage was
      passed from all responsibilities and liabilities in connection
      therewith

     

    Section
      19.05. This
      Security Instrument secures any and all present and future loans, advances,
      and/or other extensions of credit or other indebtedness now owing or which
      hereafter be owing by Mortgagor to Lender, as well as Lender’s successors and
      assigns, from time to time, one or more times, now and in the future, and any
      and all promissory notes evidencing such present and/or future loans, advances
      and/or other extensions of credit, as well as any and all other obligations,
      including, without limitation, Mortgagor’s covenants and agreements in any
      present or future loan or credit agreement or any other agreement, document
      or
      instrument executed by Mortgagor, and liabilities that Mortgagor may now and/or
      in the future owe to and/or incur in favor of Lender, as well as Lender’s
      successors and assigns, whether direct or indirect, or by way of assignment
      or
      purchase of a participation interest, and whether related or unrelated, or
      whether committed or purely discretionary, however and whenever incurred or
      evidenced, whether express or implied, direct or indirect, absolute or
      contingent, or due or to become due, and all renewals, modifications,
      consolidations, replacements and extensions thereof, whether Mortgagor is
      obligated alone or with others on a “solidary” or “joint and several” basis, as
      a principal obligor or as a surety, guarantor, or endorser, of every nature
      and
      kind whatsoever, whether or not any such indebtedness may be barred under any
      statute of limitations or prescriptive period or may be or become otherwise
      unenforceable or voidable for any reason whatsoever, up to the Maximum Amount.
      Notwithstanding any other provision of this Mortgage, the maximum amount of
      indebtedness secured hereby at any time and from time to time shall be limited
      to the Maximum Amount.

     

    Section
      19.06. This
      Security Instrument has been executed by Mortgagor pursuant to Article 3298
      of
      the Louisiana Civil Code and other applicable law for the purpose of securing
      the secured indebtedness that may now be existing and/or that may arise in
      the
      future as provided herein, with the preferences and priorities provided under
      applicable Louisiana law. However, nothing under this Security Instrument shall
      be construed as limiting the duration of this Mortgage or the purpose or
      purposes for which the secured indebtedness may be requested or
      extended.

     

    Section
      19.07. Forfeiture.
      There
      has not been and shall never be committed by Mortgagor or any other person
      in
      occupancy of or involved with the operation or use of the Property any act
      or
      omission affording the federal government or any state or local government
      the
      right of forfeiture as against the Property or any part thereof or
      any
      monies paid in performance of Mortgagor’s obligations under any of the Loan
      Document.

     

    
      
        
        

      

      
        -109-

        
          

        

      

      
        
        

      

    

     

    Section
      19.08. Rents
      and Leases.
      In
      order to secure the secured indebtedness up to the Maximum Amount and to the
      extent permitted by La. R.S. 9:4401 et seq., as additional and collateral
      security for the payment of the Debt and cumulative of any and all rights and
      remedies herein provided for, Mortgagor hereby collaterally and conditionally
      assigns to Lender all existing and future Rents and Leases, such assignment
      to
      become absolute upon the occurrence of an Event of Default.

     

    Section
      19.09. As
      used
      in this Security Instrument, the definition of "Environmental Statutes" includes
      the Louisiana Environmental Quality Act (Louisiana Revised Statutes § 30:2001,
      et seq.), as amended and any other laws of the State of Louisiana governing
      the
      handling of hazardous materials, and the regulations promulgated thereunder
      as
      used in this Security Instrument the term "Environmental Statute"
      included.

     

    Section
      19.10. Foreclosure.
      At any
      time after an Event of Default, Lender has immediately commence an action to
      foreclose this Mortgage or to specifically enforce its provisions or any of
      the
      indebtedness secured hereby pursuant to the statutes in such case made and
      provided and sell the Property or cause the Property to be sold in accordance
      with the requirements and procedures provided by said statutes in a single
      parcel or in several parcels at the option of Lender.

     

    
      	(1)  	
              In
                the event foreclosure proceedings are filed by Lender, all expenses
                incident to such proceeding, including, but not limited to, reasonable
                attorneys' fees and costs, shall be paid by Mortgagor and secured
                by this
                Mortgage and by all of the other Loan Documents securing all or any
                part
                of the indebtedness evidenced by the Note. The secured indebtedness
                and
                all other obligations secured by this Mortgage, including, without
                limitation, interest at the Default Interest Rate (as defined in
                the
                Note), any prepayment charge, fee or premium required to be paid
                under the
                Note in order to prepay principal (to the extent permitted by applicable
                law), attorneys' fees and any other amounts due and unpaid to Lender
                under
                the Loan Documents, may be bid by Lender in the event of a foreclosure
                sale hereunder. In the event of a judicial sale pursuant to a foreclosure
                decree, it is understood and agreed that Lender or its assigns may
                become
                the purchaser of the Property or any part
                thereof.

            

    

     

    
      	(2)  	
              Lender
                may, by following the procedures and satisfying the requirements
                prescribed by applicable law, foreclose on only a portion of the
                Property
                and, in such event, said foreclosure shall not affect the lien of
                this
                Mortgage on the remaining portion of the Property
                foreclosed.

            

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        -110-

        
          

        

      

      
        
        

      

    

     

    THUS
      DONE AND SIGNED
      in
      ________________, ________________on this 31st
      day of
      January, 2007, in the presence of the undersigned witnesses and Notary Public
      after due reading of the whole.

     

    

    LVP
      GULF
      COAST INDUSTRIAL PORTFOLIO
      LLC, a Delaware limited liability company

     

     

    
      	By:	/s/ Michael
              Schurer	 	 	 
	 	
              
                

              

              Name: Michael Schurer

              Title: Vice President

            	 	 	
            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-1

    

    (Legal
      Description)

    PARCEL
      1

    

    100
      JAMES DRIVE EAST.

    

    THAT
      CERTAIN PORTION OF GROUND, situated in the State of Louisiana, Parish of St.
      Charles, in that part thereof know as James Business Park, and shown on a plan
      of resubdivision of J.J. Krebs & Sons, Inc., dated April 14, 1983, approved
      by the St. Charles Parish Planning Commission on June 1, 1983, and registered
      in
      COB 298, folio 297 on June 2, 1983, and identified as Lot 15-A, Square 4, and
      said lot is more particularly described as follows:

    

    Commence
      at the intersection of the northerly right of way of James Drive East and the
      easterly right of way of James Drive West a near point of curvature on James
      Drive East, thence along the northerly right of way line of James Drive East
      North 72 degrees 46 minutes 00 seconds East a distance of 175.38 feet to the
      point of beginning;

    

    Thence
      North 00 degrees 11 minutes 00 seconds West a distance of 564.18 feet to a
      point
      on the line common to Lots 15-A and 15-B;

    

    Thence
      along said common line North 89 degrees 49 minutes 00 seconds East a distance
      of
      466.87 feet tot a point;

    

    Thence
      South 00 degrees 11 minutes 00 seconds East a distance of 421.00 feet to a
      point
      on the northerly right of way of James Drive East; 

    

    Thence
      South 72 degrees 46 minutes 00 seconds West along said right of way line a
      distance of 488.33 feet to the point of beginning.

    

    Lot
      15-A
      is a portion of former Lot 15, James Business Park.

    

    The
      improvements thereon bear the municipal no. 100 James Drive East.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-2

    PARCEL
      2

    

    120
      MALLARD STREET

    

    THAT
      CERTAIN PORTION OF GROUND, situated in the State of Louisiana, Parish of St.
      Charles, in that part thereof known as James Business Park, and shown on a
      plan
      of resubdivision of J.J. Krebs & Sons, Inc., dated April 14, 1983, approved
      by the St. Charles Parish Planning Commission on June 1, 1983, and registered
      in
      COB 298, folio 297 on June 2, 1983, and identified as Lot 15-B, Square 4, and
      said lot is more particularly described as follows:

    

    Lot
      15-B
      begins 133.13 feet from the near point of curvature of the intersection of
      the
      easterly right of way of James Drive West and the southerly right of way of
      Mallard Street and measures thence along the southerly right of way of Mallard
      Street North 89 degrees 49 minutes 00 seconds East a distance of 440 feet to
      a
      point;

    

    Thence
      South 00 degrees 11 minutes 00 seconds East, a distance of 200 feet to a
      point;

    

    Thence
      North 89 degrees 49 minutes 00 seconds East, a distance of 26.87 feet to a
      point;

    

    Thence
      South 00 degrees 11 minutes 00 seconds East, a distance of 129.00 feet to the
      line common to Lots 15-A and 15-B;

    

    Thence
      South 89 degrees 49 minutes 00 seconds West along said common line a distance
      of
      466.87 feet to a point;

    

    Thence
      North 00 degrees 11 minutes 00 seconds West a distance of 329.00 feet to the
      point of beginning.

    

    Said
      Lot
      15-B is composed of a portion of former Lot 15 and all of Lots 6, 7, 8 and
      9,
      Square 4, James Business Park.

    

    The
      improvements thereon bear the municipal no. 120 Mallard Street.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-3

    

    PARCEL
      3

    

    150
      CANVASBACK DRIVE

    

    THAT
      CERTAIN PORTION OF GROUND, situated in the Parish of St. Charles, State
      Louisiana, in that part thereof known as James Business Park Extension No.
      2 in
      Square No. 11 thereof, bounded by James Drive East, Pintail Street, James West
      and Canvasback Drive, designated as Lot 10-A, according to a resubdivision
      plan
      made by J.J. Krebs & Sons, Inc., dated December 9, 1986, approved by St.
      Charles Parish Planning Director April 10, 1987, recorded at Entry No. 127655,
      COB 371, folio 8 on April 23, 1987, and which lot is described as
      follows:

    

    Begin
      at
      the intersection of the westerly right of way of James Drive East and the
      southerly right of way of Canvasback Drive, the point of curvature on James
      Drive East;

    

    Thence
      South 00 degrees 11 minutes 00 seconds East, a distance of 329.53 feet to a
      point;

    

    Thence
      South 89 degrees 49 minutes 00 seconds West, a distance of 325.00 feet to a
      point;

    

    Thence
      North 00 degrees 11 minutes 00 seconds West a distance of 354.53 feet to a
      point
      on the southerly right of way of Canvasback Drive;

    

    Thence
      along said right of way North 89 degrees 49 minutes 00 seconds East a distance
      of 300.00 feet to a point of curve;

    

    Thence
      along a curve to the right having a radius of 25.00 feet, a distance of 39.27
      feet to the Point of Beginning.

    

    Improvements
      thereon bear Municipal Number 150
      Canvasback Drive.

    

    Together
      with those certain servitudes established as follows:

    

    
      	1.  	
              COB
                366, folio 626 - Servitude by Destination of Owner as established
                by St.
                Charles Three, Limited Partnership, by act before Frank J. Stitch,
                Jr.,
                N.P. , dated January 13, 1987, filed January 14, 1987, under Entry
                No.
                125464, as shown on the Lot 10-A
                Survey.

            

    

    

    (the
      “Insured Servitudes”)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-4

    

    PARCEL
      4

    

    107
      MALLARD STREET

    

    THAT
      CERTAIN PORTION OF GROUND, situated in the State of Louisiana, Parish of St.
      Charles, in that part thereof known as James Business Park, in accordance with
      a
      plan of resubdivision prepared by J. J. Krebs & Sons, Inc., dated June 13,
      1978, last revised August 14, 1979, approved under St. Charles Parish Policy
      Jury Ordinance No. 66-3-544 and registered in COB 234, folio 490 on October
      2,
      1979, and identified as Lots 1, 2, and 3, Square 5, and said lots are more
      particularly described as follows:

    

    Begin
      at
      a near point of curvature at the northeast intersection of Mallard Street and
      James Drive West; thence along the east right of way of James Drive West North
      00 degrees 11 minutes 00 seconds West a distance of 175.00 feet to a
      point;

    

    Thence
      North 89 degrees 49 minutes 00 seconds East a distance of 325.00 feet to a
      point
      on the line common to Lots 3 and 4;

    

    Thence
      South 00 degrees 11 minutes 00 seconds East a distance of 200.00 feet to the
      northerly right of way of Mallard Street;

    

    Thence
      along said right of way South 89 degrees 49 minutes 00 seconds West a distance
      of 300 feet to a point on a curve to the right at the northeast intersection
      of
      Mallard Street and James Drive West;

    

    Thence
      along said curve, having a radius of 25.00 feet a distance of 39.27 feet to
      the
      point of beginning.

    

    The
      improvements thereon bear the municipal no. 107 Mallard Street.

    

    Together
      with those servitudes benefiting the land and established as
      follows:

    

    
      	1.  	
              COB
                305, folio 4 - Destination of the Owner with Respect to Driveway,
                dated
                October 20, 

            

    

    
      	2.  	
              1983
                and establishing non-exclusive driveway servitudes across Lots 1
                through
                18, Square 5, filed October 20,
                1983.

            

    

    
      	3.  	
              COB
                305, folio 8 - Destination of the Owner with Respect to Non-Exclusive
                Parking Areas dated October 20, 1983, and establishing non-exclusive
                parking areas across Lots 1 through 18, Square 5, filed October 20,
                1983.

            

    

    
      	4.  	
              COB
                507, folio 148 - Supplement to Act of Destination by T.L. James &
                Company, Inc., dated April 9, 1996.

            

    

    (the
      “Insured Servitudes”)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-5

    

    PARCEL
      5

    

    143
      MALLARD STREET

    

    THAT
      CERTAIN PORTION OF GROUND, situated in the State of Louisiana, Parish of St.
      Charles, in that part thereof known as James Business Park, in accordance with
      a
      plan of resubdivision prepared by J. J. Krebs & Sons, Inc., dated June 13,
      1978, last revised August 14, 1979, approved under St. Charles Parish Police
      Jury Ordinance No. 66-3-544 and registered in COB 234, folio 490 on October
      2,
      1979, and identified as Lots 7, 8 and 9, Square 5, and said lots are more
      particularly described as follows:

    

    Begin
      at
      the northwest intersection of James Drive East and Mallard Street, a near point
      of curvature on Mallard Street;

    

    Thence
      along the northerly right of way of Mallard Street South 89 degrees 49 minutes
      00 West a distance of 300.00 feet to a point on the line common to Lots 6 and
      7;

    Thence
      along said line North 00 degrees 11 minutes 00 seconds West a distance of 200.00
      feet to a point;

    

    Thence
      North 89 degrees 49 minutes 00 seconds East a distance of 325.00 feet to a
      point
      on the westerly right of way of James Drive East; 

    

    Thence
      along said right of way South 00 degrees 11 minutes 00 seconds East a distance
      of 175.00 feet to a point of curve;

    

    Thence
      along the arc of a curve to the right having a radius of 25.00 feet a distance
      of 39.27 feet to the point of beginning.

    

    The
      improvements thereon bear municipal no. 143 Mallard Street.

    

    Together
      with those servitudes benefiting the land and established as
      follows:

    
      	1.  	
              COB
                305, folio 4 - Destination of the Owner with Respect to Driveway,
                dated
                October 20, 1983, and establishing non-exclusive driveway servitudes
                across Lots 1 through 18, Square 5, filed October 20,
                1983.

            

    

    
      	2.  	
              COB
                305, folio 8 - Destination of the Owner with Respect to Non-Exclusive
                Parking Areas dated October 20, 1983, and establishing non-exclusive
                parking areas across Lots 1 through 18, Square 5, filed October 20,
                1983.

            

    

    
      	3.  	
              COB
                507, folio 148 - Supplement to Act of Destination by T.L. James &
                Company, Inc., dated April 9, 1996.

            

    

    (the
      “Insured Servitudes”).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-6

    

    PARCEL
      6

    

    150
      TEAL STREET

    

    A
      CERTAIN
      PIECE OR PORTION OF GROUND, situated in Section 39, Township 12 South, Range
      9
      East, St. Charles Parish, La., that part thereof known as James Business Park,
      designated as Lot 10-A, Square 5, on a plan of Resubdivision by Krebs, LaSalle,
      LeMieuz Consultants, Inc. entitled Resubdivision of Lots 10, 11, 12, 13, 14,
      15
& 16, Square 5 into Lot 10-A, James Business Park in Section 39, Township 12
      South, Range 9 East, dated October 29, 1998, approved by Director, St. Charles
      Parish Planning and Zoning on November 2, 1998, filed November 10, 1998,
      registered at COB 546, folio 226, Parish of St. Charles, State of Louisiana,
      and
      Lot 10-A is more particularly described as follows:

    

    Commence
      at the point of curvature on the southerly right of way line of Teal Street
      at
      the intersection of James Drive West;

    

    Thence
      along the southerly right of way line of Teal Street, North 89 degrees 49
      minutes 00 seconds East a distance of 200.00 feet to the Point of
      beginning;

    

    Thence
      continue along the southerly right of way line of Teal Street, North 89 degrees
      49 minutes 00 seconds East, a distance of 700.00 feet to a point of
      curvature;

    

    Thence
      along a curve to the right, having a radius of 25.00 feet, an arc length of
      39.27 feet, a chord bearing of South 45 degrees 11 minutes 00 seconds East,
      a
      chord distance of 35.36 feet to a point on the westerly right of way line of
      James Drive East;

    

    Thence
      along the westerly right of way line of James Drive East, South 00 degrees
      11
      minutes 00 seconds East, a distance of 175.00 feet to a point;

    

    Thence
      South 89 degrees 49 minutes 00 seconds West, a distance of 725.00 to a
      point;

    

    Thence
      North 00 degrees 11 minutes 00 seconds West a distance of 200.00 feet to a
      point
      of beginning.

    

    Improvements
      bear municipal number 150 Teal Street.

    

    Together
      with those servitudes benefiting the land and established as
      follows:

    

    
      	1.  	
              COB
                305, folio 4 - Destination of the Owner with Respect to Driveway,
                dated
                October 20, 1983, and establishing non-exclusive driveway servitudes
                across Lots 1 through 18, Square 5, filed October 20,
                1983.

            

    

    
      	2.  	
              COB
                305, folio 8 - Destination of the Owner with Respect to Non-Exclusive
                Parking Areas, dated October 20, 1983, and establishing non-exclusive
                parking areas across Lots 1 through 18, Square 5, filed October 20,
                1983.

            

    

    
      	3.  	
              COB
                507, folio 148 - Supplement to Act of Destination by T.L. James &
                Company, Inc., dated April 9, 1996.

            

    

    

    (the
      “Insured Servitudes”)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-7

    

    PARCEL
      7

    

    520
      AND 524 ELMWOOD PARK BOULEVARD

    

    A
      CERTAIN
      PIECE OR PORTION OF GROUND, situated in the Parish of Jefferson, State of
      Louisiana, in that portion thereof known as Elmwood Industrial Park, designated
      as Parcel 16-C-2, per plan of Michael W. Flores, C.E. and L.S., dated April
      3,
      1985 last revised November 21, 1985, approved by Jefferson Parish Council
      Ordinance No. 16704 on December 18, 1985 filed in COB 1396, folio 307. Parcel
      16-C-2 is described as follows:

    

    Commence
      at the intersection of the west right of way line of Jefferson Highway and
      the
      south right of way line of Elmwood Park Boulevard, thence North 47 degrees
      25
      minutes 41 seconds West along the south right of way line of Elmwood Park
      Boulevard, a distance of 405.37 feet to the Point of Beginning; thence South
      42
      degrees 33 minutes 47 seconds West a distance of 521.05 feet to a point; thence
      North 47 degrees 26 minutes 11 seconds West, a distance of 445.00 feet to the
      point; thence North 42 degrees 33 minutes 47 seconds East a distance of 521.12
      feet to a point on the south right of way line of Elmwood Park Boulevard; thence
      along said right of way line South 47 degrees 25 minutes 41 seconds East a
      distance of 445.00 feet to the Point of Beginning.

    

    Address:
      520 and 524 Elmwood Park Boulevard.

    

    Together
      with those certain servitudes benefiting the land and established as
      follows:

    

    
      	1.  	
              COB
                1916, folio 275 - Servitude of Destination of the Owner as established
                by
                Crow-Coleman, New Orleans, #1, a Louisiana General Partnership by
                act
                dated March 21, 1988, registered as Entry No. 88-12359. This is a
                non-exclusive servitude of common drive and passage, affecting a
                portion
                of Parcels 16-C-2 and 16-C-3.

            

    

    

    
      	2.  	
              COB
                1913, folio 221 - Servitude of Destination of the Owner established
                by
                Crow-Coleman New Orleans #1, a Louisiana General Partnership, by
                act last
                dated March 16, 1988, filed as Entry No. 88-11515. This is a non-exclusive
                servitude of common drive affecting a portion of Parcels 16-C-1 and
                16-C-2. (Collectively the “Insured
                Servitudes”)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-8

    

    PARCEL
      8

    

    11301
      INDUSTRIPLEX BOULEVARD

    

    A
      CERTAIN
      PIECE OR PORTION OF GROUND, situated in that subdivision of East Baton Rouge
      Parish, Louisiana, known as Baton Rouge Industriplex Subdivision, Fourth Filing,
      and designated as Lot No. 99-A, and according to Map Showing Resubdivision
      of
      Lots 98-101, Baton Rouge Industriplex Subdivision, Fourth Filing, creating
      Lots
      99-A and 101-A, by James R. Clary, Sr., P.L.S., dated March 3, 1988, approved
      by
      East Baton Rouge Planning Commissions on March 9, 1988, recorded as Original
      85,
      Bundle 9987, Lot 99-A is more particularly described as follows:

    

    Begin
      at
      the intersection of the northerly right of way of Industriplex Boulevard and
      the
      easterly right of way of Fieldstone Drive;

    

    Thence
      North 13 degrees 14 minutes 11 seconds East along the east right of way of
      Fieldstone Drive, a distance of 291.70 feet to a point;

    

    Thence
      South 81 degrees 13 minutes 20 seconds East a distance of 377.15 feet to a
      point;

    

    Thence
      South 13 degrees 14 minutes 11 seconds West a distance of 321.02 feet to a
      point
      on the north right of way of Industriplex Boulevard;

    

    Thence
      North 76 degrees 45 minutes 49 seconds West along the north right of way of
      Industriplex Boulevard a distance of 376.01 feet to the Point of
      Beginning.

    

    Improvements
      thereon bear Municipal No. 11301 Industriplex Boulevard.

    

    Together
      with those certain servitudes established as follows:

    

    
      	1.  	
              Original
                586, Bundle 9988 - Servitude of Destination of the Owner as established
                by
                Baton Rouge Trade Center Partnership by act dated March 21, 1988,
                filed
                March 22, 1988. This is a non-exclusive servitude of common drive
                and
                passage, affecting a portion of Lots 99-A and
                101-A.

            

    

    

    (the
      “Insured Servitude”)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-9

    

    PARCEL
      9

    

    11441
      INDUSTRIPLEX BOULEVARD

    

    A
      CERTAIN
      PIECE OR PORTION OF GROUND, situated in the that subdivision of East Baton
      Rouge
      Parish known as Baton Rouge Industriplex Subdivision, Fourth Filing and Baton
      Rouge Industriplex Subdivision, Fifth Filing and designated as Lot 104-A-1,
      and
      according to Map Showing Resubdivision of Lots 103, 104-A and 105 Baton Rouge
      Industriplex Subdivision Fourth Filing and Lots 106-A and 107-A, Baton Rouge
      Industriplex Subdivision, Fifth Filing, creating Lots 103-A, 104-A-1 and
      107-A-1, by James R. Clary, Sr., P.L.S., dated March 7, 1988, approved by East
      Baton Rouge Planning Commission March 9, 1988, recorded as Original 86, Bundle
      9987, said Lot 104-A-1 is more described as follows:

    

    Begin
      at
      the northeast intersection of Industriplex Boulevard and Sunbelt
      Court:

    

    Thence
      along the northeasterly right of way of Industriplex Boulevard along a curve
      having a radius of 290.20 feet, a distance of 286.42 feet to point;

    

    Thence
      continue along said right of way line North 76 degrees 45 minutes 49 seconds
      West a distance of 10.49 feet to a point;

    

    Thence
      North 13 degrees 14 minutes 11 seconds East a distance of 343.42 feet to a
      point;

    

    Thence
      South 81 degrees 13 minutes 20 seconds East a distance of 239.57 feet to a
      point;

    

    Thence
      South 09 degrees 04 minutes 39 seconds West a distance of 275.02 feet to a
      point;

    

    Thence
      South 19 degrees 56 minutes 22 seconds East a distance of 8.89 feet to a
      point;

    

    Thence
      South 50 degrees 55 minutes 59 seconds East a distance of 165.01 feet to a
      point;

    

    Thence
      South 34 degrees 24 minutes 55 seconds East a distance of 28.62 feet to a point
      on the north right of way line of Sunbelt Court;

    

    Thence
      South 69 degrees 47 minutes 07 seconds West the north right of way line of
      Sunbelt Court a distance of 216.58 feet to the Point of Beginning.

    

    Improvements
      thereon bear Municipal No. 11441 Industriplex Boulevard.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      A-10

    

    PARCEL
      10

    

    6565
      EXCHEQUER DRIVE

    

    TWO
      (2)
      CERTAIN PIECES OR PORTIONS OF GROUND, situated in the subdivision of East Baton
      Rouge Parish, Louisiana known as Baton Rouge Industriplex Subdivision, First
      and
      Second Filing, designated as Lot Nos. 33-A and 34-A and according to a map
      prepared by Dawson Engineers Incorporated, Consulting Civil Engineers, dated
      August 2, 1982, entitled “Map Showing Survey of a Resubdivision of Lot 18 of the
      Baton Rouge Industriplex Subdivision (First filing) into Lot 18A and Lot 33
      of
      the Baton Rouge Industriplex Subdivision (Second filing) into Lot 33-A and
      Lot
      34 of the Baton Rouge Industriplex Subdivision (Second Filing) into Lot 34-A,
      located in Section 6, T8S, R2E, Greensburg Land District, Parish of East Baton
      Rouge, Louisiana”, approved by East Baton Rouge Planning Commission August 11,
      1982, recorded on Original 557, Bundle 9514, said Lots 33-A and 34-A are more
      particularly described as follows:

    

    Commence
      at the north right of way line of Industriplex Boulevard and last right of
      way
      line of Exchequer Drive;

    

    Thence
      North 18 degrees 17 minutes 07 seconds East along the east right of way of
      Exchequer Drive a distance of 300.00 feet to the Point of
      Beginning;

    

    Thence
      continuing along the east right of way of Exchequer Drive North 18 degrees
      17
      minutes 07 seconds East a distance of 291.13 feet to a point;

    Thence
      North 89 degrees 41 minutes 35 seconds East a distance of 456.21 feet to a
      point;

    

    Thence
      South 36 degrees 53 minutes 09 seconds East a distance of 327.29 feet to a
      point;

    

    Thence
      South 01 degrees 22 minutes 42 seconds West a distance of 260.94 feet to a
      point;

    

    Thence
      North 71 degrees 42 minutes 53 seconds West a distance of 776.95 feet to the
      Point of Beginning.

    

    Improvements
      thereon bear Municipal No. 6565 Exchequer Drive.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    SUMMARY
      OF RESERVES

     

    
      	
              Reserve
                Items

            	
              Initial
                Deposit Amount

            	
              Monthly
                Installment Amount

            
	
              Basic
                Carrying Costs

              ·  Taxes

              ·  Insurance
                Premiums

            	
              ·  Taxes
                

                  
                $139,237,51

              ·  Insurance
                Premium

                  
                $139,422.18

            	
               

              ·  Taxes

                  
                $59,132.84

               

              ·  Insurance
                Premiums

                  
                12,582.09

            
	
              Initial
                Engineering/Environmental Deposits

              ·  Immediate
                Repairs

              ·  Environmental
                Remediation

            	
               

               

              ·  Immediate
                Repairs

                  
                $843,241.25

               

              ·  Environmental
                Remediation

            	
              N/A

            
	
              Recurring
                Monthly Replacement Reserve Deposit

            	
              N/A

            	
              $12,584.40
                Capped at $528,544.80

            
	
              Reletting
                Reserve

            	
              N/A

            	
              $29,363.61
                Capped at 1,233,271.20

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    CASH
      FLOW
      STATEMENT

     

     

    
      	 	 	Property:____________________________
	 	 	Location:____________________________
	Cash Flow Statement for Month of:____________
              	 	Year: 

    

     

    
      	
            	
              Current

              Month

            	
              Year
                to

              Date

            
	
               

              REVENUE

              Net
                Rental Revenue

              Other
                Revenue

              Effective
                Gross Income

               

            	
               

               

               

              ________

               

            	
               

               

               

              ________

               

            
	
               

              OPERATING
                EXPENSES

              Common
                Area Maintenance

              Payroll

              Administration

              Leasing
                

              Service

              Clean
                & Decorate

              Utilities

              Repairs
                & Maintenance

              Taxes
                

              Insurance

              Management
                Fees

              Other

              Total
                Operating Expenses

              Net
                Operating Income

            	
               

               

               

               

               

               

               

               

               

               

               

              ________

              ________

            	
               

               

               

               

               

               

               

               

               

               

               

              ________

              ________

               

            
	
               

              RECURRING
                EXPENSES

              To
                Include Expenses for: Carpet Replacement, Appliance Replacement,
                HVAC/Water Heater Replacement; Miniblinds/Drapes/Ceiling
                Fans:

            	
               

               

               

               

              ________

            	
               

               

               

               

              ________

            
	
               

              NON-RECURRING
                EXPENSES

              To
                Include Capital Expenses for: Playground, Major Signage,
                Lawns/Trees/Shrubs, Paving/Parking, Roof Replacement,
                Carpentry/Siding/Balconies, Exterior Paint, Major Concrete/Sidewalks,
                Foundations, Major Exterior, Boiler Replacement, Major HVAC Replacement,
                Plumbing Replace, Electrical Replace, Other Major, Fire & Storm, Ins.
                Loss Recovery:

              Net
                Cash Flow

            	
               

               

               

               

               

               

               

              ________

            	
               

               

               

               

               

               

               

              ________

            

    

    Certified
      By:_____________________________

    Name:_____________________________

    Title:_____________________________

                                 
      Management Company:_____________________________

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D

     

    Required
      Engineering Work for100 James Drive

    

    
      	
              ITEM

            	 	
              AMOUNT

            	 
	 	 	 	 
	
              1. Provide
                2 ADA Parking Spaces

            	 	
              $

            	
              0.00

            	 
	
              2. Concrete
                Pavement Repair

            	 	
              $

            	
              0.00

            	 
	
              3. Roof
                Surfacing

            	 	
              $

            	
              150,693.00

            	 
	
              Subtotal

            	 	
              $

            	
              150,693.00

            	 
	
              Plus
                25% Contingency

            	 	 	 	 
	
              TOTAL

            	 	
              $

            	
              188,366.25

            	 

    

     

    Required
      Engineering Work for120 Mallard Street

    

    
      	
              ITEM

            	 	
              AMOUNT

            	 
	 	 	 	 
	
              1. Replace
                Roof

            	 	
              $

            	
              36,000.00

            	 
	
              2. Striping
                of Parking Lot

            	 	
              $

            	
              0.00

            	 
	
              3. Replace
                4-Ton Heat Pumps

            	 	
              $

            	
              144,000.00

            	 
	
              Subtotal

            	 	
              $

            	
              180,000.00

            	 
	
              Plus
                25% Contingency

            	 	 	 	 
	
              TOTAL

            	 	
              $

            	
              225,000.00

            	 

    

     

    Required
      Engineering Work 1700 Grandstand Drive

    

    
      	
              ITEM

            	 	
              AMOUNT

            	 
	 	 	 	 
	
              1. Remove
                and Replace Exterior Sealants

            	 	
              $

            	
              0.00

            	 
	
              2. Allowance
                for roof repair indicated in the roof inspection report provided
                for our
                review. The opinion of cost is based upon estimated repair budget
                reported
                in the inspection report

            	 	
              $

            	
              15,000.00

            	 
	
              Subtotal

            	 	
              $

            	
              15,000.00

            	 
	
              Plus
                25% Contingency

            	 	 	 	 
	
              TOTAL

            	 	
              $

            	
              18,750.00

            	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Required
      Engineering Work 5405 Bandera Road

    

    
      	
              ITEM

            	 	
              AMOUNT

            	 
	 	 	 	 
	
              1. Remove
                and Replace Exterior Sealants

            	 	
              $

            	
              0.00

            	 
	
              2. Allowance
                to have concrete wall panel cracking issue evaluated by a structural
                engineer. This allowance does not include any repairs that may be
                required
                based upon the results of the evaluation.

            	 	
              $

            	
              10,000.00

            	 
	
              3. Allowance
                to repair the distressed stairs in the loading dock area.

            	 	
              $

            	
              2,500.00

            	 
	
              4. Allowance
                to seal creaking and replace distressed sections in the concrete
                pavement.

            	 	
              $

            	
              0.00

            	 
	
              5. Allowance
                to have the fire sprinkler system inspected. This allowance does
                not
                include any repairs that may be required based upon the results of
                the
                inspection.

            	 	 	
              Routine
                Maintenance

            	 
	
              Subtotal

            	 	
              $

            	
              12,500.00

            	 
	
              Plus
                25% Contingency

            	 	 	 	 
	
              TOTAL

            	 	
              $

            	
              15,625.00

            	 

    

     

    Required
      Engineering Work 7402-7648 Reindeer Trail

    

    
      	
              ITEM

            	 	
              AMOUNT

            	 
	 	 	 	 
	
              1. Remove
                and Replace Exterior Sealants

            	 	
              $

            	
              0.00

            	 
	
              2. Allowance
                to seal cracks and repair distressed sections of the concrete
                pavements

            	 	
              $

            	
              0.00

            	 
	
              3. Allowance
                to make fence repairs.

            	 	 	
              Routine
                Maintenance

            	 
	
              4. Allowance
                for roof repairs indicated in the roof inspection report provided
                for our
                review. The opinion of cost is based upon the estimated repair budget
                reported in the inspection report.

            	 	
              $

            	
              16,400.00

            	 
	
              5. Replace
                roof of 7402-7424 building. Estimate is based upon replacement cost
                indicated in roof condition report provided for our
                review.

            	 	
              $

            	
              300,000.00

            	 
	
              Subtotal

            	 	
              $

            	
              316,400.00

            	 
	
              Plus
                25% Contingency

            	 	 	 	 
	
              TOTAL

            	 	
              $

            	
              395,500.00

            	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

     

    Form
      of Direction Letter

     

    [Letterhead
      of Landlord]

     

    [Name
      and
      Address of tenant]

     

    Re:
      [Address of Premises]

     

    Dear
      tenant:

     

    You
      are
      hereby directed to make all future payments of rent and other sums due to
      Landlord under the Lease payable as follows:

     

    Payable
      To: [____________]
      and Wachovia Bank, National Association

     

    
      	 	If by federal wire transfer:	 
	 	
            	
            
	 	Bank: 	Wachovia Bank, NA
	 	ABA #: 	053-000-219
	 	Acct Name:	[__________]
	 	Acct #:  	 
	 	Ref Loan #:	___________________

    

    
       

      
        	 	If by US Mail:
	 	
              
	 	_________________
	 	PO Box _____
	 	Charlotte, NC
                28260-1443
	 	 
	 	If by Overnight Courier:
	 	
              
	 	
                Wachovia
                  Bank, NA

                1525
                  West WT Harris Blvd

                Bldg
                  2C2 (Ref # ______)

                Charlotte,
                  NC 28262

                Ref
                  Loan #:_____________________

              

      

       

    

    Please
      take particular care in making the check payable only to the above-mentioned
      names because only checks made payable to the referenced names will be credited
      against sums due by you to landlord. Until otherwise advised in writing by
      Landlord and
      the
      above-mentioned bank (or its successor), you should continue to make your
      payments for rent and other sums as directed by the terms of this
      letter.

     

    Thank
      you
      in advance for your cooperation with this change in payment
      procedures.

     

    
      	 	
              By:
                _________________________________

            
	 	
              _______________________________

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      F

    

    Allocated
      Loan Amount and

    Individual
      Properties

    

    
      	Individual
              Property	 	
              The
                Allocated Loan Amount

            	 
	
              100
                James Drive

            	 	
              $

            	
              2,025,000

            	 
	
              5405
                Bandera Road

            	 	
              $

            	
              5,475,000

            	 
	
              120
                Mallard Street

            	 	
              $

            	
              3,112,500

            	 
	
              150
                Canvasback Drive

            	 	
              $

            	
              1,612,500

            	 
	
              107
                Mallard Street

            	 	
              $

            	
              2,062,500

            	 
	
              143
                Mallard Street

            	 	
              $

            	
              1,762,500

            	 
	
              150
                Teal Street

            	 	
              $

            	
              3,787,500

            	 
	
              520-524
                Elmwood Park

            	 	
              $

            	
              7,912,500

            	 
	
              7042
                Alamo Drive

            	 	
              $

            	
              1,837,500

            	 
	
              7402-7648
                Reindeer Trail

            	 	
              $

            	
              9,375,000

            	 
	
              11301
                Industriplex Blvd.

            	 	
              $

            	
              2,662,500

            	 
	
              11441
                Industriplex Blvd.

            	 	
              $

            	
              2,962,500

            	 
	
              1700
                Grandstand Drive

            	 	
              $

            	
              3,975,000

            	 
	
              6565
                Exchequer Dr.

            	 	
              $

            	
              4,462,500

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-1

    

    (Legal
      Description)

    PARCEL
      1

    

    100
      JAMES DRIVE EAST.

    

    THAT
      CERTAIN PORTION OF GROUND, situated in the State of Louisiana, Parish of St.
      Charles, in that part thereof know as James Business Park, and shown on a plan
      of resubdivision of J.J. Krebs & Sons, Inc., dated April 14, 1983, approved
      by the St. Charles Parish Planning Commission on June 1, 1983, and registered
      in
      COB 298, folio 297 on June 2, 1983, and identified as Lot 15-A, Square 4, and
      said lot is more particularly described as follows:

    

    Commence
      at the intersection of the northerly right of way of James Drive East and the
      easterly right of way of James Drive West a near point of curvature on James
      Drive East, thence along the northerly right of way line of James Drive East
      North 72 degrees 46 minutes 00 seconds East a distance of 175.38 feet to the
      point of beginning;

    

    Thence
      North 00 degrees 11 minutes 00 seconds West a distance of 564.18 feet to a
      point
      on the line common to Lots 15-A and 15-B;

    

    Thence
      along said common line North 89 degrees 49 minutes 00 seconds East a distance
      of
      466.87 feet tot a point;

    

    Thence
      South 00 degrees 11 minutes 00 seconds East a distance of 421.00 feet to a
      point
      on the northerly right of way of James Drive East; 

    

    Thence
      South 72 degrees 46 minutes 00 seconds West along said right of way line a
      distance of 488.33 feet to the point of beginning.

    

    Lot
      15-A
      is a portion of former Lot 15, James Business Park.

    

    The
      improvements thereon bear the municipal no. 100 James Drive East.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-2

    PARCEL
      2

    

    120
      MALLARD STREET

    

    THAT
      CERTAIN PORTION OF GROUND, situated in the State of Louisiana, Parish of St.
      Charles, in that part thereof known as James Business Park, and shown on a
      plan
      of resubdivision of J.J. Krebs & Sons, Inc., dated April 14, 1983, approved
      by the St. Charles Parish Planning Commission on June 1, 1983, and registered
      in
      COB 298, folio 297 on June 2, 1983, and identified as Lot 15-B, Square 4, and
      said lot is more particularly described as follows:

    

    Lot
      15-B
      begins 133.13 feet from the near point of curvature of the intersection of
      the
      easterly right of way of James Drive West and the southerly right of way of
      Mallard Street and measures thence along the southerly right of way of Mallard
      Street North 89 degrees 49 minutes 00 seconds East a distance of 440 feet to
      a
      point;

    

    Thence
      South 00 degrees 11 minutes 00 seconds East, a distance of 200 feet to a
      point;

    

    Thence
      North 89 degrees 49 minutes 00 seconds East, a distance of 26.87 feet to a
      point;

    

    Thence
      South 00 degrees 11 minutes 00 seconds East, a distance of 129.00 feet to the
      line common to Lots 15-A and 15-B;

    

    Thence
      South 89 degrees 49 minutes 00 seconds West along said common line a distance
      of
      466.87 feet to a point;

    

    Thence
      North 00 degrees 11 minutes 00 seconds West a distance of 329.00 feet to the
      point of beginning.

    

    Said
      Lot
      15-B is composed of a portion of former Lot 15 and all of Lots 6, 7, 8 and
      9,
      Square 4, James Business Park.

    

    The
      improvements thereon bear the municipal no. 120 Mallard Street.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-3

    

    PARCEL
      3

    

    150
      CANVASBACK DRIVE

    

    THAT
      CERTAIN PORTION OF GROUND, situated in the Parish of St. Charles, State
      Louisiana, in that part thereof known as James Business Park Extension No.
      2 in
      Square No. 11 thereof, bounded by James Drive East, Pintail Street, James West
      and Canvasback Drive, designated as Lot 10-A, according to a resubdivision
      plan
      made by J.J. Krebs & Sons, Inc., dated December 9, 1986, approved by St.
      Charles Parish Planning Director April 10, 1987, recorded at Entry No. 127655,
      COB 371, folio 8 on April 23, 1987, and which lot is described as
      follows:

    

    Begin
      at
      the intersection of the westerly right of way of James Drive East and the
      southerly right of way of Canvasback Drive, the point of curvature on James
      Drive East;

    

    Thence
      South 00 degrees 11 minutes 00 seconds East, a distance of 329.53 feet to a
      point;

    

    Thence
      South 89 degrees 49 minutes 00 seconds West, a distance of 325.00 feet to a
      point;

    

    Thence
      North 00 degrees 11 minutes 00 seconds West a distance of 354.53 feet to a
      point
      on the southerly right of way of Canvasback Drive;

    

    Thence
      along said right of way North 89 degrees 49 minutes 00 seconds East a distance
      of 300.00 feet to a point of curve;

    

    Thence
      along a curve to the right having a radius of 25.00 feet, a distance of 39.27
      feet to the Point of Beginning.

    

    Improvements
      thereon bear Municipal Number 150 Canvasback Drive.

    

    Together
      with those certain servitudes established as follows:

    

    
      	2.  	
              COB
                366, folio 626 - Servitude by Destination of Owner as established
                by St.
                Charles Three, Limited Partnership, by act before Frank J. Stitch,
                Jr.,
                N.P. , dated January 13, 1987, filed January 14, 1987, under Entry
                No.
                125464, as shown on the Lot 10-A
                Survey.

            

    

    

    (the
      “Insured Servitudes”)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      G-4

    

    PARCEL
      4

    

    107
      MALLARD STREET

    

    THAT
      CERTAIN PORTION OF GROUND, situated in the State of Louisiana, Parish of St.
      Charles, in that part thereof known as James Business Park, in accordance with
      a
      plan of resubdivision prepared by J. J. Krebs & Sons, Inc., dated June 13,
      1978, last revised August 14, 1979, approved under St. Charles Parish Policy
      Jury Ordinance No. 66-3-544 and registered in COB 234, folio 490 on October
      2,
      1979, and identified as Lots 1, 2, and 3, Square 5, and said lots are more
      particularly described as follows:

    

    Begin
      at
      a near point of curvature at the northeast intersection of Mallard Street and
      James Drive West; thence along the east right of way of James Drive West North
      00 degrees 11 minutes 00 seconds West a distance of 175.00 feet to a
      point;

    

    Thence
      North 89 degrees 49 minutes 00 seconds East a distance of 325.00 feet to a
      point
      on the line common to Lots 3 and 4;

    

    Thence
      South 00 degrees 11 minutes 00 seconds East a distance of 200.00 feet to the
      northerly right of way of Mallard Street;

    

    Thence
      along said right of way South 89 degrees 49 minutes 00 seconds West a distance
      of 300 feet to a point on a curve to the right at the northeast intersection
      of
      Mallard Street and James Drive West;

    

    Thence
      along said curve, having a radius of 25.00 feet a distance of 39.27 feet to
      the
      point of beginning.

    

    The
      improvements thereon bear the municipal no. 107 Mallard Street.

    

    Together
      with those servitudes benefiting the land and established as
      follows:

    

    
      	5.  	
              COB
                305, folio 4 - Destination of the Owner with Respect to Driveway,
                dated
                October 20, 

            

    

    
      	6.  	
              1983
                and establishing non-exclusive driveway servitudes across Lots 1
                through
                18, Square 5, filed October 20,
                1983.

            

    

    
      	7.  	
              COB
                305, folio 8 - Destination of the Owner with Respect to Non-Exclusive
                Parking Areas dated October 20, 1983, and establishing non-exclusive
                parking areas across Lots 1 through 18, Square 5, filed October 20,
                1983.

            

    

    
      	8.  	
              COB
                507, folio 148 - Supplement to Act of Destination by T.L. James &
                Company, Inc., dated April 9, 1996.

            

    

    (the
      “Insured Servitudes”)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-5

    

    PARCEL
      5

    

    143
      MALLARD STREET

    

    THAT
      CERTAIN PORTION OF GROUND, situated in the State of Louisiana, Parish of St.
      Charles, in that part thereof known as James Business Park, in accordance with
      a
      plan of resubdivision prepared by J. J. Krebs & Sons, Inc., dated June 13,
      1978, last revised August 14, 1979, approved under St. Charles Parish Police
      Jury Ordinance No. 66-3-544 and registered in COB 234, folio 490 on October
      2,
      1979, and identified as Lots 7, 8 and 9, Square 5, and said lots are more
      particularly described as follows:

    

    Begin
      at
      the northwest intersection of James Drive East and Mallard Street, a near point
      of curvature on Mallard Street;

    

    Thence
      along the northerly right of way of Mallard Street South 89 degrees 49 minutes
      00 West a distance of 300.00 feet to a point on the line common to Lots 6 and
      7;

    Thence
      along said line North 00 degrees 11 minutes 00 seconds West a distance of 200.00
      feet to a point;

    

    Thence
      North 89 degrees 49 minutes 00 seconds East a distance of 325.00 feet to a
      point
      on the westerly right of way of James Drive East; 

    

    Thence
      along said right of way South 00 degrees 11 minutes 00 seconds East a distance
      of 175.00 feet to a point of curve;

    

    Thence
      along the arc of a curve to the right having a radius of 25.00 feet a distance
      of 39.27 feet to the point of beginning.

    

    The
      improvements thereon bear municipal no. 143 Mallard Street.

    

    Together
      with those servitudes benefiting the land and established as
      follows:

    
      	4.  	
              COB
                305, folio 4 - Destination of the Owner with Respect to Driveway,
                dated
                October 20, 1983, and establishing non-exclusive driveway servitudes
                across Lots 1 through 18, Square 5, filed October 20,
                1983.

            

    

    
      	5.  	
              COB
                305, folio 8 - Destination of the Owner with Respect to Non-Exclusive
                Parking Areas dated October 20, 1983, and establishing non-exclusive
                parking areas across Lots 1 through 18, Square 5, filed October 20,
                1983.

            

    

    
      	6.  	
              COB
                507, folio 148 - Supplement to Act of Destination by T.L. James &
                Company, Inc., dated April 9, 1996.

            

    

    (the
      “Insured Servitudes”).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-6

    

    PARCEL
      6

    

    150
      TEAL STREET

    

    A
      CERTAIN
      PIECE OR PORTION OF GROUND, situated in Section 39, Township 12 South, Range
      9
      East, St. Charles Parish, La., that part thereof known as James Business Park,
      designated as Lot 10-A, Square 5, on a plan of Resubdivision by Krebs, LaSalle,
      LeMieuz Consultants, Inc. entitled Resubdivision of Lots 10, 11, 12, 13, 14,
      15
& 16, Square 5 into Lot 10-A, James Business Park in Section 39, Township 12
      South, Range 9 East, dated October 29, 1998, approved by Director, St. Charles
      Parish Planning and Zoning on November 2, 1998, filed November 10, 1998,
      registered at COB 546, folio 226, Parish of St. Charles, State of Louisiana,
      and
      Lot 10-A is more particularly described as follows:

    

    Commence
      at the point of curvature on the southerly right of way line of Teal Street
      at
      the intersection of James Drive West;

    

    Thence
      along the southerly right of way line of Teal Street, North 89 degrees 49
      minutes 00 seconds East a distance of 200.00 feet to the Point of
      beginning;

    

    Thence
      continue along the southerly right of way line of Teal Street, North 89 degrees
      49 minutes 00 seconds East, a distance of 700.00 feet to a point of
      curvature;

    

    Thence
      along a curve to the right, having a radius of 25.00 feet, an arc length of
      39.27 feet, a chord bearing of South 45 degrees 11 minutes 00 seconds East,
      a
      chord distance of 35.36 feet to a point on the westerly right of way line of
      James Drive East;

    

    Thence
      along the westerly right of way line of James Drive East, South 00 degrees
      11
      minutes 00 seconds East, a distance of 175.00 feet to a point;

    

    Thence
      South 89 degrees 49 minutes 00 seconds West, a distance of 725.00 to a
      point;

    

    Thence
      North 00 degrees 11 minutes 00 seconds West a distance of 200.00 feet to a
      point
      of beginning.

    

    Improvements
      bear municipal number 150 Teal Street.

    

    Together
      with those servitudes benefiting the land and established as
      follows:

    

    
      	4.  	
              COB
                305, folio 4 - Destination of the Owner with Respect to Driveway,
                dated
                October 20, 1983, and establishing non-exclusive driveway servitudes
                across Lots 1 through 18, Square 5, filed October 20,
                1983.

            

    

    
      	5.  	
              COB
                305, folio 8 - Destination of the Owner with Respect to Non-Exclusive
                Parking Areas, dated October 20, 1983, and establishing non-exclusive
                parking areas across Lots 1 through 18, Square 5, filed October 20,
                1983.

            

    

    
      	6.  	
              COB
                507, folio 148 - Supplement to Act of Destination by T.L. James &
                Company, Inc., dated April 9, 1996.

            

    

    

    (the
      “Insured Servitudes”)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-7

    

    PARCEL
      7

    

    520
      AND 524 ELMWOOD PARK BOULEVARD

    

    A
      CERTAIN
      PIECE OR PORTION OF GROUND, situated in the Parish of Jefferson, State of
      Louisiana, in that portion thereof known as Elmwood Industrial Park, designated
      as Parcel 16-C-2, per plan of Michael W. Flores, C.E. and L.S., dated April
      3,
      1985 last revised November 21, 1985, approved by Jefferson Parish Council
      Ordinance No. 16704 on December 18, 1985 filed in COB 1396, folio 307. Parcel
      16-C-2 is described as follows:

    

    Commence
      at the intersection of the west right of way line of Jefferson Highway and
      the
      south right of way line of Elmwood Park Boulevard, thence North 47 degrees
      25
      minutes 41 seconds West along the south right of way line of Elmwood Park
      Boulevard, a distance of 405.37 feet to the Point of Beginning; thence South
      42
      degrees 33 minutes 47 seconds West a distance of 521.05 feet to a point; thence
      North 47 degrees 26 minutes 11 seconds West, a distance of 445.00 feet to the
      point; thence North 42 degrees 33 minutes 47 seconds East a distance of 521.12
      feet to a point on the south right of way line of Elmwood Park Boulevard; thence
      along said right of way line South 47 degrees 25 minutes 41 seconds East a
      distance of 445.00 feet to the Point of Beginning.

    

    Address:
      520 and 524 Elmwood Park Boulevard.

    

    Together
      with those certain servitudes benefiting the land and established as
      follows:

    

    
      	3.  	
              COB
                1916, folio 275 - Servitude of Destination of the Owner as established
                by
                Crow-Coleman, New Orleans, #1, a Louisiana General Partnership by
                act
                dated March 21, 1988, registered as Entry No. 88-12359. This is a
                non-exclusive servitude of common drive and passage, affecting a
                portion
                of Parcels 16-C-2 and 16-C-3.

            

    

    

    
      	4.  	
              COB
                1913, folio 221 - Servitude of Destination of the Owner established
                by
                Crow-Coleman New Orleans #1, a Louisiana General Partnership, by
                act last
                dated March 16, 1988, filed as Entry No. 88-11515. This is a non-exclusive
                servitude of common drive affecting a portion of Parcels 16-C-1 and
                16-C-2. (Collectively the “Insured
                Servitudes”)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-8

    

    PARCEL
      8

    

    11301
      INDUSTRIPLEX BOULEVARD

    

    A
      CERTAIN
      PIECE OR PORTION OF GROUND, situated in that subdivision of East Baton Rouge
      Parish, Louisiana, known as Baton Rouge Industriplex Subdivision, Fourth Filing,
      and designated as Lot No. 99-A, and according to Map Showing Resubdivision
      of
      Lots 98-101, Baton Rouge Industriplex Subdivision, Fourth Filing, creating
      Lots
      99-A and 101-A, by James R. Clary, Sr., P.L.S., dated March 3, 1988, approved
      by
      East Baton Rouge Planning Commissions on March 9, 1988, recorded as Original
      85,
      Bundle 9987, Lot 99-A is more particularly described as follows:

    

    Begin
      at
      the intersection of the northerly right of way of Industriplex Boulevard and
      the
      easterly right of way of Fieldstone Drive;

    

    Thence
      North 13 degrees 14 minutes 11 seconds East along the east right of way of
      Fieldstone Drive, a distance of 291.70 feet to a point;

    

    Thence
      South 81 degrees 13 minutes 20 seconds East a distance of 377.15 feet to a
      point;

    

    Thence
      South 13 degrees 14 minutes 11 seconds West a distance of 321.02 feet to a
      point
      on the north right of way of Industriplex Boulevard;

    

    Thence
      North 76 degrees 45 minutes 49 seconds West along the north right of way of
      Industriplex Boulevard a distance of 376.01 feet to the Point of
      Beginning.

    

    Improvements
      thereon bear Municipal No. 11301 Industriplex Boulevard.

    

    Together
      with those certain servitudes established as follows:

    

    
      	2.  	
              Original
                586, Bundle 9988 - Servitude of Destination of the Owner as established
                by
                Baton Rouge Trade Center Partnership by act dated March 21, 1988,
                filed
                March 22, 1988. This is a non-exclusive servitude of common drive
                and
                passage, affecting a portion of Lots 99-A and
                101-A.

            

    

    

    (the
      “Insured Servitude”)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-9

    

    PARCEL
      9

    

    11441
      INDUSTRIPLEX BOULEVARD

    

    A
      CERTAIN
      PIECE OR PORTION OF GROUND, situated in the that subdivision of East Baton
      Rouge
      Parish known as Baton Rouge Industriplex Subdivision, Fourth Filing and Baton
      Rouge Industriplex Subdivision, Fifth Filing and designated as Lot 104-A-1,
      and
      according to Map Showing Resubdivision of Lots 103, 104-A and 105 Baton Rouge
      Industriplex Subdivision Fourth Filing and Lots 106-A and 107-A, Baton Rouge
      Industriplex Subdivision, Fifth Filing, creating Lots 103-A, 104-A-1 and
      107-A-1, by James R. Clary, Sr., P.L.S., dated March 7, 1988, approved by East
      Baton Rouge Planning Commission March 9, 1988, recorded as Original 86, Bundle
      9987, said Lot 104-A-1 is more described as follows:

    

    Begin
      at
      the northeast intersection of Industriplex Boulevard and Sunbelt
      Court:

    

    Thence
      along the northeasterly right of way of Industriplex Boulevard along a curve
      having a radius of 290.20 feet, a distance of 286.42 feet to point;

    

    Thence
      continue along said right of way line North 76 degrees 45 minutes 49 seconds
      West a distance of 10.49 feet to a point;

    

    Thence
      North 13 degrees 14 minutes 11 seconds East a distance of 343.42 feet to a
      point;

    

    Thence
      South 81 degrees 13 minutes 20 seconds East a distance of 239.57 feet to a
      point;

    

    Thence
      South 09 degrees 04 minutes 39 seconds West a distance of 275.02 feet to a
      point;

    

    Thence
      South 19 degrees 56 minutes 22 seconds East a distance of 8.89 feet to a
      point;

    

    Thence
      South 50 degrees 55 minutes 59 seconds East a distance of 165.01 feet to a
      point;

    

    Thence
      South 34 degrees 24 minutes 55 seconds East a distance of 28.62 feet to a point
      on the north right of way line of Sunbelt Court;

    

    Thence
      South 69 degrees 47 minutes 07 seconds West the north right of way line of
      Sunbelt Court a distance of 216.58 feet to the Point of Beginning.

    

    Improvements
      thereon bear Municipal No. 11441 Industriplex Boulevard.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-10

    

    PARCEL
      10

    

    6565
      EXCHEQUER DRIVE

    

    TWO
      (2)
      CERTAIN PIECES OR PORTIONS OF GROUND, situated in the subdivision of East Baton
      Rouge Parish, Louisiana known as Baton Rouge Industriplex Subdivision, First
      and
      Second Filing, designated as Lot Nos. 33-A and 34-A and according to a map
      prepared by Dawson Engineers Incorporated, Consulting Civil Engineers, dated
      August 2, 1982, entitled “Map Showing Survey of a Resubdivision of Lot 18 of the
      Baton Rouge Industriplex Subdivision (First filing) into Lot 18A and Lot 33
      of
      the Baton Rouge Industriplex Subdivision (Second filing) into Lot 33-A and
      Lot
      34 of the Baton Rouge Industriplex Subdivision (Second Filing) into Lot 34-A,
      located in Section 6, T8S, R2E, Greensburg Land District, Parish of East Baton
      Rouge, Louisiana”, approved by East Baton Rouge Planning Commission August 11,
      1982, recorded on Original 557, Bundle 9514, said Lots 33-A and 34-A are more
      particularly described as follows:

    

    Commence
      at the north right of way line of Industriplex Boulevard and last right of
      way
      line of Exchequer Drive;

    

    Thence
      North 18 degrees 17 minutes 07 seconds East along the east right of way of
      Exchequer Drive a distance of 300.00 feet to the Point of
      Beginning;

    

    Thence
      continuing along the east right of way of Exchequer Drive North 18 degrees
      17
      minutes 07 seconds East a distance of 291.13 feet to a point;

    Thence
      North 89 degrees 41 minutes 35 seconds East a distance of 456.21 feet to a
      point;

    

    Thence
      South 36 degrees 53 minutes 09 seconds East a distance of 327.29 feet to a
      point;

    

    Thence
      South 01 degrees 22 minutes 42 seconds West a distance of 260.94 feet to a
      point;

    

    Thence
      North 71 degrees 42 minutes 53 seconds West a distance of 776.95 feet to the
      Point of Beginning.

    

    Improvements
      thereon bear Municipal No. 6565 Exchequer Drive.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      G-11

     

    (Legal
      Description)

     

    5405
      BANDERA ROAD

     

    TRACT
      I (WEST LOOP PARK):

     

    Lot
      4, Block 1, West Loop Park, City of Leon Valley, an addition in Bexar County,
      Texas, according to the map or plat thereof, recorded in Volume19100,
      Page 150, Deed and Plat Records of Bexar County, Texas, being more particularly
      described as follows:

     

    BEGINNING
      at the most Southerly corner of Lot 4, said point being North 67 degrees 03
      minutes 09 seconds West, 522.91 feet from the point of intersection of the
      Northeast line of Bandera Road and the Northwest line of Hodges
      Drive;

     

    THENCE
      North 67 degrees 25 minutes 37 seconds West, 208.69 feet along the Northeast
      line of Bandera Road to a found THD Monument for an angle point;

     

    THENCE
      North 67 degrees 07 minutes 44 seconds West, 69,71 feet along the Northeast
      line
      of Bandera Road to an iron pin found for the Southwest corner of Lot
      4;

     

    THENCE
      along the Westerly line of Lot 4, the following courses and distances: North
      30
      degrees 52 minutes 54 seconds East, 806.84 feet to a found iron pin. North
      61
      degrees 37 minutes 28 seconds West, 67.49 feet to a found iron pin,

     

    North
      44 degrees 16 minutes 59 seconds East, 493.79 feet to an iron pin in the
      Southwest line of Evers Road for the Northwest corner of Lot 4;

     

    THENCE
      South 48 degrees 44 minutes 00 seconds East, 232.74 feet along the Southwest
      line of Evers Road to an iron pipe found for the Northeast corner of the herein
      described tract;

     

    THENCE
      along the Easterly line of Lot 4, the following courses and distances: South
      30
      degrees 57 minutes 36 seconds West, 693.00 feet to a found iron pin, South
      30
      degrees 37 minutes 51 seconds West, 159.42 feet to a found iron
      pin.

     

    South
      30 degrees 54 minutes 31 seconds West, 34 9.99 feet to a found iron pipe, said
      iron pipe being the POINT OP BEGINNING.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-12

     

    (Legal
      Description)

     

    7402-7648
      REINDEER TRAIL

     

    TRACT
      II (NORTHWEST BUSINESS PARK, PHASE 5):

     

    A
      14.216 acre tract out of Lot 1, Block 2, North Valley Unit 5, and Lot 6, Block
      2, Northwest Business Park Phase 5, an addition in Bexar County, Texas,
      according to the map or plat thereof, recorded in Volume 7500, Page 241 and
      Volume 9507, Page 189, respectively, Deed and Plat Records of Bexar County,
      Texas, and being described as follows:

     

    BEGINNING
      at a found 1/2" iron pin on the South Right-of-Way line of Reindeer Trail,
      in a
      Westerly direction, 851.07 feet from the West Right-of-Way line of Bandera
      Road,
      said pin being the Northernmost corner of this tract and the POINT OP
      BEGINNING;

     

    THENCE
      departing the South Right-of-Way line of Reindeer Trail, South 46 degrees 05
      minutes 06 seconds East, a distance of 380.00 feet to a found "X on concrete
      for
      an angle point;

     

    THENCE
      South 46 degrees 11 minutes 19 seconds East, a distance of 163.92 feet to a
      found "X" on concrete, and said "X" on concrete being the Easternmost corner
      of
      this tract;

     

    THENCE
      South 40 degrees 43 minutes 11 seconds West, a distance of 1061.87 feet to
      a
      found 1/2" iron pin for an angle point;

     

    THENCE
      North 80 degrees 44 minutes 12 seconds West, a distance of 364.73 feet to a
      found 1/2" iron pin on the South Right-of-Way line of Reindeer Trail, said
      pin
      being the Northwest corner of this tract;

     

    THENCE
      along the South Right-of-Way line of Reindeer Trail, North 09 degrees 15 minutes
      48 seconds East, a distance of 153.91 feet to a found 1/2" iron pin for a
      P.C.,

     

    THENCE
      along the South Right-of-Way line of Reindeer Trail on a curve to the right
      whose radius is 1670.73 feet and length is 418.53 feet to a found 1/2" iron
      pin
      for a P.C.C. ,

     

    THENCE
      along the South Right-of-Way line of Reindeer Trail on a curve to the right
      whose radius is 370.00 feet and length is 131.09 feet to a found 1/2" iron
      pin
      for a P.T.,

     

    THENCE
      continuing along the South Right-of-Way line of Reindeer Trail North 43 degrees
      54 minutes 54 seconds East, a distance of 641.99 feet to the POINT OF BEGINNING
      and containing 14.216 acres of land.

     

    NOTE:
      COMPANY DOES NOT REPRESENT THAT THE ABOVE ACREAGE AND/OR SQUARE FOOTAGE
      CALCULATIONS ARE CORRECT.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-13

     

    (Legal
      Description)

     

    7042
      ALAMO DOWNS PARKWAY

     

    TRACT
      III (COMMERCE BUSINESS PARK)s

     

    A
      2.855 acre (124,394
      square feet) tract of land being all of Lot 4, Block 4, New City Block 16115,
      Commerce Center at Alamo Downs Subdivision, an addition to the City of San
      Antonio, Bexar County, Texas according to the map or plat thereof, recorded
      in,
      Volume 9200,Page 103, Deed and Plat Records of Bexar County, Texas and being
      more particularly described as follows:

     

    BEGINNING
      at a found 1/2 inch iron pin in the North Right-of-Way line of Alamo Downs
      Parkway at the cutback to Grandstand Drive, said point being at the Southeast
      corner of said Lot 4;

     

    THENCE
      South 54 degrees 02 minutes 38 seconds West for a distance of 311.00 feet along
      the North Right-of-Way line of Alamo Downs Parkway to a set "X" in concrete
      and
      the South most corner of said Lot 4;

     

    THENCE
      North 35 degrees 57 minutes 22 seconds West for a distance of 442.00 feet along
      the West line of said Lot 4 to a set X" in concrete;

     

    THENCE
      North 54 degrees 02 minutes 38 seconds East for a distance of 210.67 feet along
      the North line of said Lot 4 to a found "X" in concrete, said point being in
      the
      South Right-of-Way line of Grandstand Drive and a point on the curve of a
      cul-de-sac;

     

    THENCE
      116.59 feet along a curve to the left said curve having a radius of 100 feet,
      a
      delta angle of 66 degrees 48 minutes 10 seconds and a chord bearing and distance
      of South 75 degrees 05 minutes 59 seconds East, 110.10 feet and also along
      the
      cul-de-sac and Right-of-Way line of Grandstand Drive to a found 1/2 inch iron
      pin;

     

    THENCE
      South 35 degrees 57 minutes 22 seconds East for a distance of 152.56 feet along
      the West Right-of-Way line of Grandstand to a found 1/2 inch iron pin and point
      of curvature;

     

    THENCE
      100.01 feet along a curve to the left, said curve having a radius of 205.00
      feet, a delta angle of 27 degrees 57 minutes 04 seconds and a chord bearing
      and
      distance of South 49 degrees 55 minutes 54 seconds East, 99.02 feet and also
      along the West Right-of-Way line of Grandstand Drive to a found 1/2 inch iron
      pin and a point of reverse curvature;

     

    THENCE
      70.74 feet along a curve to the right, said curve having a radius of 145.00
      feet, a delta angle of 27 degrees 57 minutes 04 seconds and a chord bearing
      and
      distance of South 49 degrees 55 minutes 54 seconds East, 70.04 feet and also
      along the West Right-of-Way line of Grandstand Drive to a found 1/2 inch iron
      pin and a point of tangency;

     

    THENCE
      South 35 degrees 57 minutes 22 seconds East for a distance of 30.00 feet along
      the West Right-of-Way line of Grandstand Drive and the East line of said Lot
      4
      to a found 1/2 inch iron pin and a point of curvature;

     

    THENCE
      15.71 feet along a curve to the right, said curve having a radius of 10.00
      feet,
      a delta angle of 90 degrees 01 minutes 10 seconds, and a chord bearing and
      distance of South 09 degrees 02 minutes 57 seconds West 14.14 feet and also
      along the cutback Right-of-Way line at the Northwest intersection of Grandstand
      Drive and Alamo Downs Parkway to the POINT OF BEGINNING and containing 2.855
      acres (124,394 square feet) of land.

     

    NOTE:
      COMPANY DOES NOT REPRESENT THAT THE ABOVE ACREAGE AND/OR SQUARE FOOTAGE
      CALCULATIONS ARE CORRECT.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-14

     

    (Legal
      Description)

     

    1700
      GRANDSTAND DRIVE

     

    TRACT
      IV (WESTWAY SERVICE CENTER):

     

    A
      6.803 acres {296,374 square feet) tract of land being all of Lot 8, Block 4,
      New
      City Block 16115, Lincoln Service Center Phase III, at Alamo Downs, an addition
      to the City of San Antonio, Bexar County, Texas according to the map or plat
      thereof, recorded in Volume 9400, Page 129, Deed and Plat Records of Bexar
      County, Texas, being more particularly described as follows:

     

    BEGINNING
      at a found 1/2 inch iron pin at the South most corner of said Lot
      8;

     

    THENCE
      North 53 degrees 59 minutes 08 seconds West for a distance of 460.56 feet along
      the Southwest line of said Lot 8 to a found 1/2 inch iron pin;

     

    THENCE
      North 35 degrees 56 minutes 21 seconds East for a distance of 599.21 feet along
      the Northwest line of said Lot 8 to a found "X" in concrete;

     

    THENCE
      North 38 degrees 40 minutes 49 seconds East for a distance of 75.75 feet along
      the Northwest line of said Lot 8 to a found 1/2 inch iron pin, said point being
      the North corner of said Lot 8;

     

    THENCE
      South 54 degrees 02 minutes 40 seconds East for a distance of 381.19 feet along
      the Northeast line of said Lot 8 to a set 1/2 inch iron pin with Vickery &
Associates property corner cap, said point being in the West Right-of-Way line
      and cul-de-sac of Grandstand;

     

    THENCE
      233.79 feet along a curve to the left said curve having a radius of 100 feet,
      a
      delta angle of 133 degrees 57 minutes 03 seconds and a chord bearing and
      distance of South 11 degrees 36 minutes 43 seconds West, 184.07 feet and along
      the West Right-of-Way line and cul-de-sac of Grandstand and the East line of
      said Lot 8 to a set 1/2 inch iron pin with Vickery &. Associates property
      corner cap;

     

    THENCE
      South 35 degrees 56 minutes 53 seconds for a distance of 507.65 feet along
      the
      East line of said Lot 8 to the POINT OF BEGINNING and containing 6.803 acres
      (296,374 square feet) of land.

     

    NOTE:
      COMPANY DOES NOT REPRESENT THAT THE ABOVE ACREAGE AND/OR SQUARE FOOTAGE
      CALCULATIONS ARE CORRECT.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      1

    

    

    "Texas
      Borrowers"

    

    LIGHT
      5405 BANDERA LLC

    LIGHT
      1700 GRANDSTAND LLC

    LVP
      7042
      ALAMO DOWNS LLC

    LVP
      7402
      REINDEER LLC 

    

    "Louisiana
      Borrower":

    

    LVP
      GULF
      COAST INDUSTRIAL PORTFOLIO LLCLoan No.:
              502859389	
              Sealy
                Portfolio
                C

            

    

     

    PROMISSORY
      NOTE

     

    
      	$53,025,000.00	
              as
                of February 1,
                2007

            

    

     

    FOR
      VALUE
      RECEIVED, each of the undersigned Delaware limited liability companies listed
      on
      Schedule 1 annexed hereto (hereinafter collectively, "Borrower"),
      each
      having an address c/o
      The Lightstone Group, 326 Third Street, Lakewood, New Jersey 08701,
      jointly
      and severally
      promises
      to pay to the order of WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking
      association (together with its successors and assigns, “Lender”),
      at
      the office of Lender at Commercial Real Estate Services, 8739 Research Drive
      URP
      - 4, NC 1075, Charlotte, North Carolina 28262, or at such other place as Lender
      may designate to Borrower in writing from time to time, the principal sum of
      FIFTY-THREE
      MILLION TWENTY-FIVE THOUSAND AND 00/100 DOLLARS ($53,025,000.00),
      together with interest on so much thereof as is from time to time outstanding
      and unpaid, from the date of the advance of the principal evidenced hereby,
      at
      the rate of five and eighty-three hundredths percent (5.83%) (the “Note
      Rate”),
      together with all other amounts due hereunder or under the other Loan Documents
      (as defined herein), in lawful money of the United States of America, which
      shall at the time of payment be legal tender in payment of all debts and dues,
      public and private.

     

    ARTICLE
      I

     

    TERMS
      AND CONDITIONS

     

    Section
      1.1 Computation
      of Interest.
      Interest shall be computed hereunder based on a 360-day year and based on the
      actual number of days elapsed for any period in which interest is being
      calculated. Interest shall accrue from the date on which funds are advanced
      hereunder (regardless of the time of day) through and including the day on
      which
      funds are credited pursuant to Section 1.2 hereof.

     

    Section
      1.2 Payment
      of Principal and Interest.
      Payments in federal funds immediately available at the place designated for
      payment received by Lender prior to 2:00 p.m. eastern time on a day on which
      Lender is open for business at said place of payment shall be credited prior
      to
      close of business, while other payments, at the option of Lender, may not be
      credited until immediately available to Lender in federal funds at the place
      designated for payment prior to 2:00 p.m. eastern time on the next day on which
      Lender is open for business. Interest only shall be payable in sixty (60)
      consecutive monthly installments in the amount set forth on Schedule 2,
      beginning on March 11, 2007 (the “First
      Payment Date”),
      and
      continuing on the eleventh (11th) day of each and every calendar month
      thereafter through and including February 11, 2012 and, thereafter, principal
      and interest shall be payable in equal consecutive monthly installments of
      $312,139.54 each, beginning on March 11, 2012 and continuing on the eleventh
      (11th) day of each and every calendar month thereafter through and including
      January 11, 2017 (each, a “Payment
      Date”).
      On
      February 11, 2017 (the “Maturity
      Date”)
      (provided that in the event that there is a Defeasance of the Loan pursuant
      to
      Section 1.5(d) hereof, the Maturity Date shall automatically be the Lockout
      Expiration Date), the entire outstanding principal balance hereof, together
      with
      all accrued but unpaid interest thereon, shall be due and payable in
      full.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      1.3 Application
      of Payments.
      So long
      as no Event of Default (as hereinafter defined) exists hereunder or under any
      other Loan Document, each such monthly installment shall be applied, first,
      to
      any amounts hereafter advanced by Lender hereunder or under any other Loan
      Document, second, to any late fees and other amounts payable to Lender, third,
      to the payment of accrued interest and last to reduction of
      principal.

     

    Section
      1.4 Payment
      of “Short Interest”.
      If the
      advance of the principal amount evidenced by this Note is made on a date other
      than a Payment Date, Borrower shall pay to Lender contemporaneously with the
      execution hereof interest at the Note Rate for a period from the date hereof
      through and including the tenth (10th)
      day of
      either (x) this month, in the event that the date hereof is on or prior to
      the
      11th of the month, and (y) the immediately succeeding month, in the event that
      the date hereof is after the 11th
      of the
      month.

     

    Section
      1.5 Prepayment;
      Defeasance.

     

    (a) This
      Note
      may not be prepaid, in whole or in part (except as otherwise specifically
      provided herein), at any time prior to the Payment Date occurring five (5)
      Payment Dates immediately prior to the Maturity Date (the “Lockout
      Expiration Date”).
      In
      the event that Borrower wishes to have the Property (as defined in the Security
      Instrument) or any Individual Property (as defined in the Security Instrument)
      released from the lien of the Security Instrument prior to the Lockout
      Expiration Date, Borrower’s sole option shall be a Defeasance (as hereinafter
      defined) upon satisfaction of the terms and conditions set forth in Section
      1.5(d)
      hereof.
      Notwithstanding anything contained in this Note or any of the other Loan
      Documents to the contrary, this Note may be prepaid in whole but not in part
      without premium or penalty on any Payment Date (subject to the proviso below)
      occurring from and after the Lockout Expiration Date provided (i) written notice
      of such prepayment is received by Lender not more than ninety (90) days and
      not
      less than thirty (30) days prior to the date of such prepayment, and (ii) such
      prepayment is accompanied by all interest accrued hereunder through the date
      of
      such prepayment and all other sums due hereunder or under the other Loan
      Documents; provided, however, that if such prepayment is received on a day
      that
      is not a Payment Date, Borrower shall pay interest on the outstanding principal
      balance hereof immediately preceding such prepayment at the Note Rate for a
      period from the date of such payment through and including the tenth (10th)
      day
      of either (x) the month in which the prepayment occurs if such payment is made
      prior to the 11th day of such month, and (y) the immediately succeeding month
      in
      which the prepayment occurs if such payment is made after the 11th day of such
      month. If, upon any such permitted prepayment on any Payment Date occurring
      on
      or after the Lockout Expiration Date, the aforesaid prior written notice has
      not
      been timely received by Lender, there shall be due a prepayment fee equal to
      the
      lesser of (i) thirty (30) days’ interest computed at the Note Rate on the
      outstanding principal balance of this Note so prepaid and (ii) interest computed
      at the Note Rate on the outstanding principal balance of this Note so prepaid
      that would have been payable for the period from, and including, the date of
      prepayment through the Maturity Date, as though such prepayment had not
      occurred.

     

    
      
        
        

      

      
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    (b) If,
      prior
      to the Lockout Expiration Date, the indebtedness evidenced by this Note shall
      have been declared due and payable by Lender pursuant to Article II hereof
      or
      the provisions of any other Loan Document due to an Event of Default by
      Borrower, then, in addition to the indebtedness evidenced by this Note being
      immediately due and payable, there shall also then be immediately due and
      payable a prepayment fee in an amount equal to the Yield Maintenance Premium
      (as
      hereinafter defined) based on the entire indebtedness on the date of such
      acceleration. In addition to the amounts described in the preceding sentence,
      in
      the event of any such acceleration or tender of payment of such indebtedness
      occurs or is made on or prior to the first (1st) anniversary of the date of
      this
      Note, there shall also then be immediately due and payable an additional
      prepayment fee of three percent (3%) of the principal balance of this Note.
      The
      term “Yield
      Maintenance Premium”
shall
      mean an amount equal to the greater of (A) two percent (2.0%) of the principal
      amount being prepaid, and (B) the present value of a series of payments each
      equal to the Payment Differential (as hereinafter defined) and payable on each
      Payment Date over the remaining original term of this Note and on the Maturity
      Date, discounted at the Reinvestment Yield (as hereinafter defined) for the
      number of months remaining as of the date of such prepayment to each such
      Payment Date and the Maturity Date. The term “Payment
      Differential”
shall
      mean an amount equal to (i) the Note Rate less the Reinvestment Yield, divided
      by (ii) twelve (12) and multiplied by (iii) the principal sum outstanding under
      this Note after application of the constant monthly payment due under this
      Note
      on the date of such prepayment, provided that the Payment Differential shall
      in
      no event be less than zero. The term “Reinvestment
      Yield”
shall
      mean an amount equal to the lesser of (i) the yield on the U.S. Treasury issue
      (primary issue) with a maturity date closest to the Maturity Date, or (ii)
      the
      yield on the U.S. Treasury issue (primary issue) with a term equal to the
      remaining average life of the indebtedness evidenced by this Note, with each
      such yield being based on the bid price for such issue as published in the
      Wall
      Street Journal on the date that is fourteen (14) days prior to the date of
      such
      prepayment (or, if such bid price is not published on that date, the next
      preceding date on which such bid price is so published) and converted to a
      monthly compounded nominal yield. In the event that any prepayment fee is due
      hereunder, Lender shall deliver to Borrower a statement setting forth the amount
      and determination of the prepayment fee, and, provided that Lender shall have
      in
      good faith applied the formula described above, Borrower shall not have the
      right to challenge the calculation or the method of calculation set forth in
      any
      such statement in the absence of manifest error, which calculation may be made
      by Lender on any day during the fifteen (15) day period preceding the date
      of
      such prepayment. Lender shall not be obligated or required to have actually
      reinvested the prepaid principal balance at the Reinvestment Yield or otherwise
      as a condition to receiving the prepayment fee.

     

    (c) Partial
      prepayments of this Note shall not be permitted, except for partial prepayments
      resulting from Lender’s election to apply insurance or condemnation proceeds to
      reduce the outstanding principal balance of this Note as provided in the
      Security Instrument, in which event no prepayment fee or premium shall be due
      unless, at the time of either Lender’s receipt of such proceeds or the
      application of such proceeds to the outstanding principal balance of this Note,
      an Event of Default exists, which Event of Default is unrelated to the
      applicable casualty or condemnation, in which event the applicable prepayment
      fee or premium shall be due and payable based upon the amount of the prepayment.
      No notice of prepayment shall be required under the circumstances specified
      in
      the preceding sentence. No principal amount repaid may be reborrowed. Any such
      partial prepayments of principal shall be applied to the unpaid principal
      balance evidenced hereby but such application shall not reduce the amount of
      the
      fixed monthly installments required to be paid pursuant to Section 1.2 above.
      Except as otherwise expressly provided in this Section, the prepayment fees
      provided above shall be due, to the extent permitted by applicable law, under
      any and all circumstances where all or any portion of this Note is paid prior
      to
      the Maturity Date, whether such prepayment is voluntary or involuntary,
      including, without limitation, if such prepayment results from Lender’s exercise
      of its rights upon the occurrence of an Event of Default and acceleration of
      the
      Maturity Date of this Note (irrespective of whether foreclosure proceedings
      have
      been commenced), and shall be in addition to any other sums due hereunder or
      under any of the other Loan Documents. No tender of a prepayment of this Note
      with respect to which a prepayment fee is due shall be effective unless such
      prepayment is accompanied by the applicable prepayment fee.

     

    
      
        
        

      

      
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    (d) (i)
      On any
      Payment Date on or after the earlier to occur of (x) three (3) years following
      the first Payment Date hereunder, and (y) the day immediately following the
      date
      which is two (2) years after the “startup day,” within the meaning of Section
      860G(a) (9) of the Internal Revenue Code of 1986, as amended from time to time
      or any successor statute (the “Code”),
      of a
“real estate mortgage investment conduit,” within the meaning of Section 860D of
      the Code (a “REMIC
      Trust”),
      that
      holds this Note, and provided no Event of Default has occurred and is continuing
      hereunder or under any of the other Loan Documents, at Borrower’s option, Lender
      shall cause the release of the Property or an Individual Property from the
      lien
      of the Security Instrument and the other Loan Documents (a “Defeasance”)
      upon
      the satisfaction of the following conditions:

     

    (A) Borrower
      shall give not more than ninety (90) days’ or less than thirty (30) days’ prior
      written notice to Lender specifying the date Borrower intends for the Defeasance
      to be consummated (the “Release
      Date”),
      which
      date shall be a Payment Date.

     

    (B) All
      accrued and unpaid interest and all other sums due under this Note and under
      the
      other Loan Documents up to and including the Release Date shall be paid in
      full
      on or prior to the Release Date.

     

    (C) In
      the
      event only a portion of the Loan is the subject of a partial defeasance to
      release an Individual Property (a “Partial Defeasance”), Borrower, at Borrower's
      expense, shall prepare all necessary documents to modify the Security Instrument
      and to amend and restate this Note and issue two substitute notes, one note
      having a principal balance equal to the defeased portion of the original Note
      (the “Defeased Note”) and the other note having a principal balance equal to the
      undefeased portion of the Note (the “Undefeased Note”). The Defeased Note and
      the Undefeased Note shall have identical terms as the Note except for the
      principal balance. The principal balance of the Defeased Note shall equal the
      Adjusted Release Amount (as hereinafter defined) for the applicable Individual
      Property. A Defeased Note cannot be the subject of any further
      defeasance.

     

    
      
        
        

      

      
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    As
      used
      herein, "Adjusted Release Amount" shall mean the greater of:

     

    (a) 110%
      of
      the Allocated Loan Amount ; and 

     

    (b) An
      amount
      such that, after giving effect to such Partial Defeasance, (i) the Debt Service
      Coverage Ratio (as defined in the Security Instrument) for the Undefeased Note,
      based on income from the Property which will remain subject to the lien of
      the
      Security Instrument (the "Remaining Parcel") shall not be less than the greater
      of (1) 1.16:1 and (2) the Debt Service Coverage Ratio for the twelve (12) full
      calendar months immediately preceding the Partial Defeasance; and (ii) the
      Loan-to-Value Ratio (as hereinafter defined) for the Remaining Parcel shall
      not
      exceed the lesser of (x) 75% and (y) the Loan-to-Value for both the parcel
      being
      released from the lien of the Security Instrument and the Remaining Parcel
      determined prior to the Partial Defeasance Date.

     

    As
      used
      herein, with respect to the Undefeased Note, “Debt Service Coverage Ratio” shall
      mean the ratio, expressed as a percentage, of (a) the net operating income
      derived from operation of the Remaining Parcel, as reasonably determined by
      Lender in accordance with then-current underwriting standards for the twelve
      (12) month period ending prior to Lender’s receipt of the notice of Partial
      Defeasance pursuant to Section 1.5(d)(i)(A), to (b) the annual debt service
      payments on the Undefeased Note immediately after the date of such partial
      defeasance.

    

    With
      respect to this Note, “Debt Service Coverage Ratio” shall mean the ratio,
      expressed as a percentage, of (a) the net operating income derived from
      operation of the parcel being released from the lien of the Security Instrument
      and the Remaining Parcel, as reasonably determined by Lender in accordance
      with
      then-current underwriting standards, for the twelve (12) month period ending
      prior to Lender’s receipt of the notice of partial defeasance pursuant to
      Section 1.5(d)(i) (A), to (b) the annual debt service payments on this Note
      immediately prior to the date of such Partial Defeasance.

    

    As
      used
      herein, “Loan-to-Value Ratio” shall mean the ratio of the outstanding principal
      amount of the indebtedness to the value of the collateral securing the loan
      evidenced hereby (as determined by Lender in its discretion).

     

    (D) Borrower
      shall deliver to Lender on or prior to the Release Date:

     

    (1) a
      sum of money in immediately available funds (the “Defeasance
      Deposit”)
      equal to the outstanding principal balance of this Note plus an amount, if
      any,
      which together with the outstanding principal balance of this Note, shall be
      sufficient to enable Lender to purchase, through means and sources customarily
      employed and available to Lender, or
      at the
      election of Borrower to enable a third party defeasance company selected by
      Borrower and reasonably acceptable to Lender to purchase on behalf of Lender
      for
      the account of Borrower, (x) direct, non-callable, fixed rate obligations of
      the
      United States of America or (y) non-callable, fixed rate obligations, other
      than
      U.S. Treasury Obligations, that are “government securities” within the meaning
      of Section 2(a)(16) of the Investment Company Act of 1940, as amended, that
      provide for payments prior, but as close as possible, to all successive monthly
      Payment Dates occurring after the Release Date and to the Lockout
      Expiration
      Date, with each such payment being equal to or greater than the amount of the
      corresponding installment of principal and/or interest required to be paid
      under
      this Note (or, in the event of a Partial Defeasance, the corresponding
      installment of principal and interest due on the Defeased Note, including,
      but
      not limited to, the
      scheduled outstanding principal balance of the Note and Defeased Note, as
      applicable,
      due on the Maturity Date
      based upon payments of principal and interest through the Lockout Expiration
      Date)
      for the balance of the term hereof (the “Defeasance
      Collateral”),
      each of which shall be duly endorsed by the holder thereof as directed by Lender
      or accompanied by a written instrument of transfer in form and substance
      satisfactory to Lender in its sole discretion (including, without limitation,
      such instruments as may be required by the depository institution holding such
      securities or the issuer thereof, as the case may be, to effectuate book-entry
      transfers and pledges through the book-entry facilities of such institution)
      in
      order to perfect upon the delivery of the Defeasance Security Agreement (as
      hereinafter defined) the first priority security interest in the Defeasance
      Collateral in favor of Lender in conformity with all applicable state and
      federal laws governing granting of such security interests.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (2) a
      pledge
      and security agreement, in form and substance reasonably satisfactory to Lender,
      creating a first priority security interest in favor of Lender in the Defeasance
      Collateral (the “Defeasance
      Security Agreement”);

     

    (3) a
      certificate of Borrower certifying that all of the requirements set forth in
      this subsection 1.5(d)(i) have been satisfied;

     

    (4) one
      or
      more opinions of counsel for Borrower in form and substance and delivered by
      counsel which would be reasonably satisfactory to Lender stating, among other
      things, that (i) Lender has a perfected first priority security interest in
      the
      Defeasance Collateral and that the Defeasance Security Agreement is enforceable
      against Borrower in accordance with its terms, (ii) in the event of a bankruptcy
      proceeding or similar occurrence with respect to Borrower, none of the
      Defeasance Collateral nor any proceeds thereof will be property of Borrower’s
      estate under Section 541 of the U.S. Bankruptcy Code, as amended, or any similar
      statute and the grant of security interest therein to Lender shall not
      constitute an avoidable preference under Section 547 of the U.S. Bankruptcy
      Code, as amended, or applicable state law, (iii) the release of the lien of
      the
      Security Instrument and the pledge of Defeasance Collateral will not directly
      or
      indirectly result in or cause any REMIC Trust that then holds this Note (or,
      if
      applicable, the Defeased Note) to fail to maintain its status as a REMIC Trust
      and (iv) the defeasance will not cause any REMIC Trust to be an “investment
      company” under the Investment Company Act of 1940;

     

    
      
        
        

      

      
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    (5) evidence
      in writing from any applicable Rating Agency (as defined in the Security
      Instrument) to the effect that the Defeasance will not result in a downgrading,
      withdrawal or qualification of the respective ratings in effect immediately
      prior to such Defeasance for any Securities (as hereinafter defined) issued
      in
      connection with the securitization which are then outstanding; provided,
      however,
      no
      evidence from a Rating Agency shall be required if this Note does not meet
      the
      then-current review requirements of such Rating Agency.

     

    (6) a
      certificate in form and scope acceptable to Lender in its reasonable discretion
      from an independent accountant reasonably acceptable to Lender certifying that
      the Defeasance Collateral will generate amounts sufficient to make all payments
      of principal and interest due under this Note (or, if applicable, the Defeased
      Note) through
      the Lockout Expiration Date and
      the outstanding principal balance of the Loan due on the Maturity
      Date
      based upon payments of principal and interest through the Lockout Expiration
      Date;

     

    (7) Borrower
      and any guarantor or indemnitor of Borrower’s obligations under the Loan
      Documents for which Borrower has personal liability executes and delivers to
      Lender such documents and agreements as Lender shall reasonably require to
      evidence and effectuate the ratification of such personal liability and guaranty
      or indemnity, respectively for any acts, omissions, liabilities or obligations
      arising on or prior to the Release Date;

     

    (8) such
      other certificates, documents or instruments as Lender may reasonably require;
      and

     

    (9) payment
      of all reasonable fees, costs, expenses and charges actually incurred by Lender
      in connection with the Defeasance of the Property and the purchase of the
      Defeasance Collateral, including, without limitation, all reasonable legal
      fees
      and costs and expenses incurred by Lender or its agents in connection with
      release of the Property, review of the proposed Defeasance Collateral and
      preparation of the Defeasance Security Agreement and related documentation,
      any
      revenue, documentary, stamp, intangible or other taxes, charges or fees due
      in
      connection with transfer of the Note, assumption of the Note, or substitution
      of
      collateral for the Property shall be paid on or before the Release Date. Without
      limiting Borrower’s obligations with respect thereto, Lender shall be entitled
      to deduct all such fees, costs, expenses and charges from the Defeasance Deposit
      to the extent of any portion of the Defeasance Deposit which exceeds the amount
      necessary to purchase the Defeasance Collateral.

     

    (E) In
      connection with the Defeasance Deposit, unless Borrower shall make satisfactory
      arrangements with a third party provider reasonably acceptable to Lender,
      Borrower hereby authorizes and directs Lender using the means and sources
      customarily employed and available to Lender to use the Defeasance Deposit
      to
      purchase for the account of Borrower the Defeasance Collateral. Furthermore,
      the
      Defeasance Collateral shall be arranged such that payments received from such
      Defeasance Collateral shall be paid directly to Lender to be applied on account
      of the indebtedness of this Note. Any part of the Defeasance Deposit in excess
      of the amount necessary to purchase the Defeasance Collateral and to pay the
      other and related costs Borrower is obligated to pay under this Section
      1.5
      shall be
      promptly refunded to Borrower.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    (F) Lender
      shall, at Borrower's request permit the release of an Individual Property from
      the lien of the Security Instrument (and related Loan Documents) only upon
      Borrower's delivery to Lender, at Borrower's sole cost and expense, of an
      endorsement to Lender's lender’s policy of title insurance (or an irrevocable
      commitment to issue such endorsement), in form and substance satisfactory to
      Lender and insuring the priority of Lender's remaining liens created by the
      Security Instrument on the Individual Property by a result of the partial
      defeasance.

     

    (ii) Upon
      compliance with the requirements of subsection 1.5(d)(i), the entire Property,
      or in the case of a Partial Defeasance, the applicable Individual Property,
      shall be released from the lien of the Security Instrument and the other Loan
      Documents, and the Defeasance Collateral shall constitute collateral which
      shall
      secure this Note, or in the case of Partial Defeasance, the Defeased Note and
      all other obligations under the Loan Documents. Lender will, at Borrower’s
      expense, execute and deliver any agreements reasonably requested by Borrower
      to
      release the lien of the Security Instrument from the entire Property or the
      applicable Individual Property, as the case may be.

     

    (iii) Upon
      the
      release of the entire Property or the applicable Individual Property, as the
      case may be, in accordance with this Section 1.5(d), Borrower shall assign
      all
      its obligations and rights under this Note, or, in the case of a Partial
      Defeasance, under the Defeased Note, together with the pledged Defeasance
      Collateral, to a newly created entity which complies with the terms of Section
      2.02(g) of the Security Instrument designated by Borrower and approved by Lender
      in its sole discretion. Such successor entity shall execute an assumption
      agreement in form and substance satisfactory to Lender in its sole discretion
      pursuant to which it shall assume Borrower's obligations under this Note or
      the
      Defeased Note and the Defeasance Security Agreement. As conditions to such
      assignment and assumption, Borrower shall (x) deliver to Lender an opinion
      of counsel in form and substance and delivered by counsel satisfactory to a
      prudent lender stating, among other things, that such assumption agreement
      is
      enforceable against Borrower and such successor entity in accordance with its
      terms and that this Note and the Defeasance Security Agreement as so assumed,
      are enforceable against such successor entity in accordance with their
      respective terms, and (y) pay all costs and expenses (including, but not
      limited to, legal fees) incurred by Lender or its agents in connection with
      such
      assignment and assumption (including, without limitation, the review of the
      proposed transferee and the preparation of the assumption agreement and related
      documentation). Upon such assumption of the Note, Borrower and any guarantor
      shall be relieved of its obligations hereunder, under the other Loan Documents
      other than as specified in Section 1.5(d)(i)(C)(7) above and under the
      Defeasance Security Agreement.

     

    
      
        
        

      

      
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    Section
      1.6 Security.
      The
      indebtedness evidenced by this Note and the obligations created hereby are
      secured by, among other things, that certain deed of trust and that certain
      mortgage from Borrower to and for the benefit of Lender, dated of even date
      herewith, covering the Property. The deed of trust and mortgage (which secures
      the indebtedness evidenced by this Note and the obligations created hereby)
      are
      collectively, the “Security Instrument.” The Security Instrument, together with
      this Note and all other documents to or of which Lender is a party or
      beneficiary now or hereafter evidencing, securing, guarantying, modifying or
      otherwise relating to the indebtedness evidenced hereby, are herein referred
      to
      collectively as the “Loan Documents”. All terms not otherwise defined herein
      shall have the meanings ascribed to such terms in the Security Instrument.
      For
      purposes of this Note, the term Property shall mean the Cross-collateralized
      Property as defined in the Security Instrument. All of the terms and provisions
      of the Loan Documents are incorporated herein by reference. Some of the Loan
      Documents are to be filed for record on or about the date hereof in the
      appropriate public records.

     

    ARTICLE
      II

     

    DEFAULT

     

    Section
      2.1 Events
      of Default.
      It is
      hereby expressly agreed that should any default occur in the payment of
      principal or interest as stipulated above and such payment is not made on the
      date such payment is due, or should any other default occur under any other
      Loan
      Document and not be cured within any applicable grace, cure or notice period
      (if
      any), then an Event of Default (an “Event
      of Default”)
      shall
      exist hereunder, and in such event the indebtedness evidenced hereby, including
      all sums advanced or accrued hereunder or under any other Loan Document, and
      all
      unpaid interest accrued thereon, shall, at the option of Lender and without
      notice to Borrower, at once become due and payable and may be collected
      forthwith, whether or not there has been a prior demand for payment and
      regardless of the stipulated date of maturity.

     

    Section
      2.2 Late
      Charges.
      In the
      event that any payment (other than the final payment due on the Maturity Date)
      is not received by Lender on the date when due (subject to any applicable grace
      period), then, in addition to any default interest payments due hereunder,
      Borrower shall also pay to Lender a late charge in an amount equal to five
      percent (5%) of the amount of such overdue payment. 

     

    Section
      2.3 Default
      Interest Rate.
      So long
      as any Event of Default exists hereunder or under any other Loan Document,
      regardless of whether or not there has been an acceleration of the indebtedness
      evidenced hereby, and at all times after maturity of the indebtedness evidenced
      hereby (whether by acceleration or otherwise), interest shall accrue on the
      outstanding principal balance of this Note, from the date due until the date
      credited, at a rate per annum equal to four percent (4%) in excess of the Note
      Rate, or, if such increased rate of interest may not be collected under
      applicable law, then at the maximum rate of interest, if any, which may be
      collected from Borrower under applicable law (as applicable, the “Default
      Interest Rate”),
      and
      such default interest shall be immediately due and payable.

     

    
      
        
        

      

      
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    Section
      2.4 Borrower’s
      Agreements.
      Borrower acknowledges that it would be extremely difficult or impracticable
      to
      determine Lender’s actual damages resulting from any late payment or default,
      and such late charges and default interest are reasonable estimates of those
      damages and do not constitute a penalty. The remedies of Lender in this Note
      or
      in the Loan Documents, or at law or in equity, shall be cumulative and
      concurrent, and to the extent permitted by applicable law may be pursued singly,
      successively or together, in Lender’s discretion.

     

    Section
      2.5 Borrower
      to Pay Costs.
      In the
      event that this Note, or any part hereof, is collected by or through an
      attorney-at-law, Borrower agrees to pay all costs of collection, including,
      but
      not limited to, reasonable attorneys’ fees.

     

    Section
      2.6 Exculpation.
      Notwithstanding anything to the contrary contained in this Note or the other
      Loan Documents, the obligations of Borrower hereunder shall be non-recourse
      except with respect to the Property and as otherwise provided in Section 18.32
      of the Security Instrument, the terms of which are incorporated
      herein.

     

    ARTICLE
      III

     

    GENERAL
      CONDITIONS

     

    Section
      3.1 No
      Waiver; Amendment.
      No
      failure to accelerate the indebtedness evidenced hereby by reason of default
      hereunder, acceptance of a partial or past due payment, or indulgences granted
      from time to time shall be construed (i) as a novation of this Note or as a
      reinstatement of the indebtedness evidenced hereby or as a waiver of such right
      of acceleration or of the right of Lender thereafter to insist upon strict
      compliance with the terms of this Note, or (ii) to prevent the exercise of
      such
      right of acceleration or any other right granted hereunder or by any applicable
      laws; and to the fullest extent permitted by law, Borrower hereby expressly
      waives the benefit of any statute or rule of law or equity now provided, or
      which may hereafter be provided, which would produce a result contrary to or
      in
      conflict with the foregoing. No extension of the time for the payment of this
      Note or any installment due hereunder made by agreement with any person now
      or
      hereafter liable for the payment of this Note shall operate to release,
      discharge, modify, change or affect the original liability of Borrower under
      this Note, either in whole or in part, unless Lender agrees otherwise in
      writing. This Note may not be changed orally, but only by an agreement in
      writing signed by the party against whom enforcement of any waiver, change,
      modification or discharge is sought.

     

    Section
      3.2 Waivers.
      Presentment for payment, demand, protest and notice of demand, protest and
      nonpayment and all other notices are hereby waived by Borrower. Borrower hereby
      further waives and renounces, to the fullest extent permitted by law, all rights
      to the benefits of any moratorium, reinstatement, marshaling, forbearance,
      valuation, stay, extension, redemption, appraisement, exemption and homestead
      now or hereafter provided by the Constitution and laws of the United States
      of
      America and of each state thereof, both as to itself and in and to all of its
      property, real and personal, against the enforcement and collection of the
      obligations evidenced by this Note or the other Loan Documents.

     

    
      
        
        

      

      
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    Section
      3.3 Limit
      of Validity.
      The
      provisions of this Note and of all agreements between Borrower and Lender,
      whether now existing or hereafter arising and whether written or oral,
      including, but not limited to, the Loan Documents, are hereby expressly limited
      so that in no contingency or event whatsoever, whether by reason of demand
      or
      acceleration of the maturity of this Note or otherwise, shall the amount
      contracted for, charged, taken, reserved, paid or agreed to be paid
      (“Interest”)
      to
      Lender for the use, forbearance or detention of the money loaned under this
      Note
      exceed the maximum amount permissible under applicable law. If, from any
      circumstance whatsoever, performance or fulfillment of any provision hereof
      or
      of any agreement between Borrower and Lender shall, at the time performance
      or
      fulfillment of such provision shall be due, exceed the limit for Interest
      prescribed by law or otherwise transcend the limit of validity prescribed by
      applicable law, then, ipso facto, the obligation to be performed or fulfilled
      shall be reduced to such limit, and if, from any circumstance whatsoever, Lender
      shall ever receive anything of value deemed Interest by applicable law in excess
      of the maximum lawful amount, an amount equal to any excessive Interest shall
      be
      applied to the reduction of the principal balance owing under this Note in
      the
      inverse order of its maturity (whether or not then due) or, at the option of
      Lender, be paid over to Borrower, and not to the payment of Interest. All
      Interest (including any amounts or payments judicially or otherwise under the
      law deemed to be Interest) contracted for, charged, taken, reserved, paid or
      agreed to be paid to Lender shall, to the extent permitted by applicable law,
      be
      amortized, prorated, allocated and spread throughout the full term of this
      Note,
      including any extensions and renewals hereof until payment in full of the
      principal balance of this Note so that the Interest thereon for such full term
      will not exceed at any time the maximum amount permitted by applicable law.
      To
      the extent United States federal law permits a greater amount of interest than
      is permitted under the law of the State of New York, Lender will rely on United
      States federal law for the purpose of determining the maximum amount permitted
      by applicable law. Additionally, to the extent permitted by applicable law
      now
      or hereafter in effect, Lender may, at its option and from time to time,
      implement any other method of computing the maximum lawful rate under the law
      of
      the State of New York or under other applicable law by giving notice, if
      required, to Borrower as provided by applicable law now or hereafter in effect.
      This Section 3.3 will control all agreements between Borrower and
      Lender.

     

    Section
      3.4 Use
      of
      Funds.
      Borrower hereby warrants, represents and covenants that no funds disbursed
      hereunder shall be used for personal, family or household purposes.

     

    Section
      3.5 Unconditional
      Payment.
      Subject
      to Section 2.6 above, Borrower is and shall be obligated to pay principal,
      interest and any and all other amounts which become payable hereunder or under
      the other Loan Documents absolutely and unconditionally and without any
      abatement, postponement, diminution or deduction and without any reduction
      for
      counterclaim or setoff. In the event that at any time any payment received
      by
      Lender hereunder shall be deemed by a court of competent jurisdiction to have
      been a voidable preference or fraudulent conveyance under any bankruptcy,
      insolvency or other debtor relief law, then the obligation to make such payment
      shall survive any cancellation or satisfaction of this Note or return thereof
      to
      Borrower and shall not be discharged or satisfied with any prior payment thereof
      or cancellation of this Note, but shall remain a valid and binding obligation
      enforceable in accordance with the terms and provisions hereof, and such payment
      shall be immediately due and payable upon demand.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    Section
      3.6 Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the laws of the
      State
      of New York and the applicable laws of the United States of America. Borrower
      hereby irrevocably submits to the jurisdiction of any court of competent
      jurisdiction located in the State of New York in connection with any proceeding
      out of or relating to this Note.

     

    Section
      3.7 Waiver
      of Jury Trial.
      BORROWER, TO THE FULL EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY, INTENTIONALLY
      AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES,
      RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION
      OR
      PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THE DEBT
      EVIDENCED BY THIS NOTE OR ANY CONDUCT, ACT OR OMISSION OF LENDER OR BORROWER,
      OR
      ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, PARTNERS, MEMBERS, EMPLOYEES,
      AGENTS OR ATTORNEYS, OR ANY OTHER PERSONS AFFILIATED WITH LENDER OR BORROWER,
      IN
      EACH OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT, TORT OR
      OTHERWISE.

     

    ARTICLE
      IV

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      4.1 Successors
      and Assigns; Joint and Several; Interpretation.
      The
      terms and provisions hereof shall be binding upon and inure to the benefit
      of
      Borrower and Lender and their respective heirs, executors, legal
      representatives, successors, successors in title and assigns, whether by
      voluntary action of the parties or by operation of law. As used herein, the
      terms “Borrower” and “Lender” shall be deemed to include their respective heirs,
      executors, legal representatives, successors, successors in title and assigns,
      whether by voluntary action of the parties or by operation of law. If Borrower
      consists of more than one person or entity, each shall be jointly and severally
      liable to perform the obligations of Borrower under this Note. All personal
      pronouns used herein, whether used in the masculine, feminine or neuter gender,
      shall include all other genders; the singular shall include the plural and
      vice
      versa. Titles of articles and sections are for convenience only and in no way
      define, limit, amplify or describe the scope or intent of any provisions hereof.
      Time is of the essence with respect to all provisions of this Note. This Note
      and the other Loan Documents contain the entire agreements between the parties
      hereto relating to the subject matter hereof and thereof and all prior
      agreements relative hereto and thereto which are not contained herein or therein
      are terminated.

     

    Section
      4.2 Taxpayer
      Identification.
      The Tax
      Identification Numbers of each Borrower are set forth on Schedule 1 annexed
      hereto.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    Section
      4.3 Upon
      payment in full of the loan secured hereby and the satisfaction in full of
      all
      of Borrower's obligations under the Loan Documents, Lender, at Borrower's
      request and sole cost and expense, provide a satisfaction of the Loan
      Documents.

     

    [THE
      BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, Borrower has executed this Note under seal as of the date
      first
      written above.

     

    
      	 	 	 
	 	BORROWERS:
	 	 
	 	 
	 	
              LIGHT
                5405 BANDERA LLC,

              a
                Delaware limited liability company

            
	 	 
	 	 
	 	By:  	/s/
              Michael Schurer
	 	
              

              Name:
                Michael Schurer

              Title:
                Vice President

            
	 	 

    

    
      	 	 	 
	 	
              LIGHT
                1700 GRANDSTAND LLC,

              a
                Delaware limited liability company

            
	 
 	 
 	 
 
	 	By:  	/s/
              Michael Schurer
	 	
              

              Name:
                Michael Schurer

              Title:
                Vice President

            
	 	 

    

    
      	 	 	 
	 	
              LVP
                7042 ALAMO DOWNS LLC,

              a
                Delaware limited liability company

            
	 
 	 
 	 
 
	 	By:  	/s/
              Michael Schurer
	 	
              

              Name:
                Michael
                Schurer

              Title:
                Vice President

            
	 	 

    

    
      	 	 	 
	 	
              LVP
                7402 REINDEER LLC,

              a
                Delaware limited liability company

            
	 
 	 
 	 
 
	 	By:  	/s/
              Michael Schurer
	 	
              

              Name:
                Michael
                Schurer

              Title:
                Vice President

            
	 	 

    

    
      	 	 	 
	 	LVP GULF COAST INDUSTRIAL PORTFOLIO
              LLC, a
              Delaware limited liability company
	 
 	 
 	 
 
	 	By:  	/s/ Michael Schurer
	 	
              

              Name:
                Michael Schurer

              Title:
                Vice President

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      1

    

    
      	
              Borrower
                Name:

            	
              Tax
                ID Number:

            
	
              Light
                5405 Bandera LLC

            	
              20-8175039

            
	
              Light
                1700 Grandstand LLC

            	
              20-8175000

            
	
              LVP
                7042 Alamo Downs LLC

            	
              20-8187113

            
	
              LVP
                7402 Reindeer LLC

            	
              20-8187113

            
	
              LVP
                Gulf Coast Industrial Portfolio LLC

            	
              20-8175292

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      2

     

    INTEREST
      ONLY SCHEDULE

     

     

    
      	
              Pay
                Date

            	 	 	
              Scheduled
                Payment

            	 
	
              3/11/2007

            	 	 	
              240,438.92

            	 
	
              4/11/2007

            	 	 	
              266,200.23

            	 
	
              5/11/2007

            	 	 	
              257,613.13

            	 
	
              6/11/2007

            	 	 	
              266,200.23

            	 
	
              7/11/2007

            	 	 	
              257,613.13

            	 
	
              8/11/2007

            	 	 	
              266,200.23

            	 
	
              9/11/2007

            	 	 	
              266,200.23

            	 
	
              10/11/2007

            	 	 	
              257,613.13

            	 
	
              11/11/2007

            	 	 	
              266,200.23

            	 
	
              12/11/2007

            	 	 	
              257,613.13

            	 
	
              1/11/2008

            	 	 	
              266,200.23

            	 
	
              2/11/2008

            	 	 	
              266,200.23

            	 
	
              3/11/2008

            	 	 	
              249,026.02

            	 
	
              4/11/2008

            	 	 	
              266,200.23

            	 
	
              5/11/2008

            	 	 	
              257,613.13

            	 
	
              6/11/2008

            	 	 	
              266,200.23

            	 
	
              7/11/2008

            	 	 	
              257,613.13

            	 
	
              8/11/2008

            	 	 	
              266,200.23

            	 
	
              9/11/2008

            	 	 	
              266,200.23

            	 
	
              10/11/2008

            	 	 	
              257,613.13

            	 
	
              11/11/2008

            	 	 	
              266,200.23

            	 
	
              12/11/2008

            	 	 	
              257,613.13

            	 
	
              1/11/2009

            	 	 	
              266,200.23

            	 
	
              2/11/2009

            	 	 	
              266,200.23

            	 
	
              3/11/2009

            	 	 	
              240,438.92

            	 
	
              4/11/2009

            	 	 	
              266,200.23

            	 
	
              5/11/2009

            	 	 	
              257,613.13

            	 
	
              6/11/2009

            	 	 	
              266,200.23

            	 
	
              7/11/2009

            	 	 	
              257,613.13

            	 
	
              8/11/2009

            	 	 	
              266,200.23

            	 
	
              9/11/2009

            	 	 	
              266,200.23

            	 
	
              10/11/2009

            	 	 	
              257,613.13

            	 
	
              11/11/2009

            	 	 	
              266,200.23

            	 
	
              12/11/2009

            	 	 	
              257,613.13

            	 
	
              1/11/2010

            	 	 	
              266,200.23

            	 
	
              2/11/2010

            	 	 	
              266,200.23

            	 
	
              3/11/2010

            	 	 	
              240,438.92

            	 
	
              4/11/2010

            	 	 	
              266,200.23

            	 
	
              5/11/2010

            	 	 	
              257,613.13

            	 
	
              6/11/2010

            	 	 	
              266,200.23

            	 
	
              7/11/2010

            	 	 	
              257,613.13

            	 
	
              8/11/2010

            	 	 	
              266,200.23

            	 
	
              9/11/2010

            	 	 	
              266,200.23

            	 
	
              10/11/2010

            	 	 	
              257,613.13

            	 
	
              11/11/2010

            	 	 	
              266,200.23

            	 
	
              12/11/2010

            	 	 	
              257,613.13

            	 
	
              1/11/2011

            	 	 	
              266,200.23

            	 
	
              2/11/2011

            	 	 	
              266,200.23

            	 
	
              3/11/2011

            	 	 	
              240,438.92

            	 
	
              4/11/2011

            	 	 	
              266,200.23

            	 
	
              5/11/2011

            	 	 	
              257,613.13

            	 
	
              6/11/2011

            	 	 	
              266,200.23

            	 
	
              7/11/2011

            	 	 	
              257,613.13

            	 
	
              8/11/2011

            	 	 	
              266,200.23

            	 
	
              9/11/2011

            	 	 	
              266,200.23

            	 
	
              10/11/2011

            	 	 	
              257,613.13

            	 
	
              11/11/2011

            	 	 	
              266,200.23

            	 
	
              12/11/2011

            	 	 	
              257,613.13

            	 
	
              1/11/2012

            	 	 	
              266,200.23

            	 
	
              2/11/2012

            	 	 	
              266,200.23

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      3

     

    Allocated
      Loan Amounts

     

    

    
      	
              100
                James Drive

            	 	
              $

            	
              2,025,000

            	 
	
              5405
                Bandera Road

            	 	
              $

            	
              5,475,000

            	 
	
              120
                Mallard Street

            	 	
              $

            	
              3,112,500

            	 
	
              150
                Canvasback Drive

            	 	
              $

            	
              1,612,500

            	 
	
              107
                Mallard Street

            	 	
              $

            	
              2,062,500

            	 
	
              143
                Mallard Street

            	 	
              $

            	
              1,762,500

            	 
	
              150
                Teal Street

            	 	
              $

            	
              3,787,500

            	 
	
              520-524
                Elmwood Park

            	 	
              $

            	
              7,912,500

            	 
	
              7042
                Alamo Drive

            	 	
              $

            	
              1,837,500

            	 
	
              7402-7648
                Reindeer Trail

            	 	
              $

            	
              9,375,000

            	 
	
              11301
                Industriplex Blvd.

            	 	
              $

            	
              2,662,500

            	 
	
              11441
                Industriplex Blvd.

            	 	
              $

            	
              2,962,500

            	 
	
              1700
                Grandstand Drive

            	 	
              $

            	
              3,975,000

            	 
	
              6565
                Exchequer Dr.

            	 	
              $

            	
              4,462,500

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]