Document:

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                                                                   EXHIBIT 10.17

                                LEAR CORPORATION
                         LONG-TERM STOCK INCENTIVE PLAN

        2003 DEFERRAL AND RESTRICTED STOCK UNIT AGREEMENT - MSPP (NON-US)

                  DEFERRAL AND RESTRICTED STOCK UNIT AGREEMENT (the "Agreement")
dated as of ______________, 2003 (the "Effective Date"), between Lear
Corporation ("Company") and the individual whose name appears on the signature
page hereof (the "Participant"), who is a key employee of the Company or an
Affiliate. Any term capitalized herein but not defined shall have the meaning
set forth in the Lear Corporation Long-Term Stock Incentive Plan (the "Plan").

         1.       Deferral Election. In accordance with the terms of the Plan,
the Participant hereby elects to defer:

         (a)      ____% (enter any percentage less than or equal to 100%), but
                  not to exceed $_________, of the bonus payable to the
                  Participant under the Company's Senior Executive Incentive
                  Compensation Plan or Management Incentive Compensation Plan
                  paid in the first quarter of 2004.

         2.       Restricted Stock Units.

         (a)      In consideration for the Participant's deferral under Section
1(a), the Participant shall be credited as of March 15, 2004 with Restricted
Stock Units at a discounted price ("Discount Rate") as provided in the following
table:

<TABLE>
<CAPTION>
TOTAL DOLLAR AMOUNT OF PARTICIPANT'S DEFERRALS
ELECTED UNDER SECTION 1(a), EXPRESSED AS A
PERCENTAGE OF THE PARTICIPANT'S BASE SALARY:          APPLICABLE DISCOUNT RATE:
-------------------------------------------------------------------------------
<S>                                                   <C>
15% or less                                                      20%
-------------------------------------------------------------------------------
Over 15% and up to 100%                                          30%
-------------------------------------------------------------------------------
Over 100%                                                        20%
</TABLE>

For the purposes of this Agreement, "base salary" shall mean a Participant's
annual base salary rate on January 1, 2004 from the Company or an Affiliate,
including any elective contributions of the Participant that are not includable
in his gross income under Code Sections 125 or 401(k), but before taking into
account any deferral under this Agreement.

         (b)      The number of Restricted Stock Units credited to a Participant
under the Plan will be determined according to the following calculation:

                  (i)      the dollar amount deferred under Section 1(a) that
                           does not exceed 15% of the Participant's base salary,
                           divided by the product of the average Fair Market
                           Value over the last five business days in 2003
                           (December 24, 26, 29, 30 and 31) (the "Average FMV")
                           multiplied by 80%; plus

                  (ii)     the dollar amount deferred under Section 1(a) over
                           15% and up to 100% of the Participant's base salary,
                           divided by the product of the Average FMV multiplied
                           by 70%; plus

                                       1
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                  (iii)    the dollar amount deferred under Section 1(a) over
                           100% of the Participant's base salary, divided by the
                           product of the Average FMV multiplied by 80%.

         3.       Restriction Period. The Restriction Period under this
Agreement shall be the three-year period commencing on March 15, 2004 and ending
on March 14, 2007.

         4.       Dividend Equivalents. If the Company declares a cash dividend
on Shares, the Participant shall be credited with dividend equivalents under
this Agreement as of the payment date for the dividend equal to the amount of
the cash dividend per Share multiplied by the Restricted Stock Units credited to
the Participant under Section 2(b) through the record date. Dividend equivalents
shall be credited to a notional account established for the Participant
("Dividend Equivalent Account"). Interest shall be credited to the Participant's
Dividend Equivalent Account, compounded monthly, until payment of such account
to the Participant. The rate of such interest shall be the prime rate of
interest as reported by the Midwest edition of the Wall Street Journal for the
second business day of each quarter on an annual basis.

         5.       Timing and Form of Payout. Except as provided in Sections 6, 7
or 8, after the end of the Restriction Period, the Participant shall be entitled
to receive a number of Shares equal to the number of Restricted Stock Units
credited to the Participant under Section 2(b) and a cash payment equal to the
amount credited to the Participant's Dividend Equivalent Account under Section
4. Delivery of such Shares shall be made as soon as administratively feasible
after the end of the Restriction Period or such later date as may have been
elected by the Participant. Delivery of the cash payment of any amount credited
to the Participant's Dividend Equivalent Account shall be made as soon as
administratively feasible after the end of the Restriction Period.

         6.       Termination of Employment Due to Death, End of Service or
Disability.

         (a)      BEFORE MARCH 15, 2004. A Participant who ceases to be an
employee prior to March 15, 2004 by reason of death, End of Service or
Disability shall be terminated from the Plan, and his deferral election shall be
cancelled.

         (b)      AFTER MARCH 14, 2004 BUT BEFORE JANUARY 1, 2005. If the
Participant ceases to be an employee after March 14, 2004 but prior to January
1, 2005 by reason of death, End of Service or Disability, the Participant (or in
the case of the Participant's death, the Participant's beneficiary) shall be
entitled to receive a number of Shares equal to the number of Restricted Stock
Units credited to the Participant under Section 2(b).

         (c)      AFTER DECEMBER 31, 2004. If the Participant ceases to be an
employee after December 31, 2004 but prior to the end of the Restriction Period
by reason of death, End of Service or Disability, the Participant (or in the
case of the Participant's death, the Participant's beneficiary) shall be
entitled to receive a number of Shares equal to the number of Restricted Stock
Units credited to the Participant under Section 2(b) and a cash payment equal to
the Participant's Dividend Equivalent Account under Section 4.

         (d)      BENEFICIARY. Any distribution made with respect to a
Participant who has died shall be paid to the beneficiary designated by the
Participant pursuant to Article 11 of the Plan to receive the Participant's
Shares and any cash payment under this Agreement. If the Participant's
beneficiary predeceases the Participant or no beneficiary has been designated,
distribution of the Participant's Shares and any cash payment shall be made to
the Participant's surviving spouse and if none, to the Participant's estate.

                                       2
<PAGE>

         7.       Involuntary Termination Other Than For Cause.

         (a)      BEFORE MARCH 15, 2004. A Participant whose employment
involuntarily terminates other than for Cause or any reason described in Section
6 prior to March 15, 2004 shall be terminated from the Plan, and his deferral
election shall be cancelled.

         (b)      AFTER MARCH 15, 2004 BUT BEFORE JANUARY 1, 2005. A Participant
whose employment involuntarily terminates other than for Cause or for any reason
described in Section 6 after March 15, 2004 but prior to January 1, 2005 shall
be entitled to receive a number of Shares equal to the sum of (i) and (ii):

                  (i)      the number of Restricted Stock Units credited to the
                           Participant under Section 2(b) multiplied by a
                           fraction, the numerator of which is the number of
                           full months in the period beginning on March 15, 2004
                           and ending on the date the Participant ceases to be
                           an employee (the "Elapsed Months"), and the
                           denominator of which is 36; and

                  (ii)     the lesser of:

                           (A)      the quotient of (i) the amount of bonus
                                    deferred under Section 1(a) multiplied by a
                                    fraction, the numerator of which is 36 minus
                                    the Elapsed Months, and the denominator of
                                    which is 36, divided by (ii) the Fair Market
                                    Value of a Share on the date the Participant
                                    ceases to be an employee, or

                           (B)      the number of Restricted Stock Units
                                    determined under Section 2(b) multiplied by
                                    a fraction, the numerator of which is 36
                                    minus the Elapsed Months, and the
                                    denominator of which is 36.

         (c)      AFTER DECEMBER 31, 2004. A Participant whose employment
involuntarily terminates other than for Cause or for any reason described in
Section 6 after December 31, 2004 but prior to the end of the Restriction Period
shall be entitled to receive a number of Shares equal to the sum of (i) and
(ii):

                  (i)      the number of the Restricted Stock Units credited to
                           the Participant under Section 2(b) multiplied by a
                           fraction, the numerator of which is the Elapsed
                           Months, and the denominator of which is 36, and

                  (ii)     the lesser of:

                           (A)      the quotient of (i) the amount deferred
                                    under Section 1(a) multiplied by a fraction,
                                    the numerator of which is 36 minus the
                                    Elapsed Months, and the denominator of which
                                    is 36, divided by (ii) the Fair Market Value
                                    of a Share on the date the Participant
                                    ceases to be an employee, or

                           (B)      the number of Restricted Stock Units
                                    determined under Section 2(b) multiplied by
                                    a fraction, the numerator of which is 36
                                    minus the Elapsed Months, and the
                                    denominator of which is 36.

         8.       Termination of Employment for Any Other Reason.

                                       3
<PAGE>

         (a)      BEFORE MARCH 15, 2004. A Participant whose employment
terminates for any reason other than those described in Sections 6 and 7 prior
to March 15, 2004 shall be terminated from the Plan, and his deferral election
shall be cancelled.

         (b)      AFTER MARCH 14, 2004 BUT BEFORE JANUARY 1, 2005. A Participant
whose employment terminates for any reason other than those described in
Sections 6 and 7 after March 14, 2004 but prior to January 1, 2005 shall be
entitled to receive a number of Shares equal to the lesser of (i) and (ii):

                  (i)      the amount of bonus deferred under Section 1(a)
                           divided by the Fair Market Value of a Share on the
                           date the Participant ceases to be an employee, or

                  (ii)     the number of Restricted Stock Units credited to the
                           Participant under Section 2(b).

         (c)      AFTER DECEMBER 31, 2004. A Participant whose employment
terminates for any reason other than those described in Sections 6 and 7 after
December 31, 2004 but prior to the end of the Restriction Period shall be
entitled to receive a number of Shares equal to the lesser of: (i) the amount of
bonus deferred under Section 1(a) divided by the Fair Market Value of a Share on
the date the Participant ceases to be an employee; or (ii) the number of
Restricted Stock Units credited to the Participant under Section 2(b).

         9.       Election to Defer Beyond Restriction Period. The Participant
may elect to defer delivery of any or all Shares due to him or her under this
Agreement to a date after the Restriction Period expires, by making a timely
deferral election. In his or her election to defer, the Participant may choose
between deferral to a particular calendar year, or to the year following his or
her termination of employment, but in no event may the Participant defer
delivery of a Share more than ten years beyond the expiration of the Restriction
Period under Section 3. If a Participant terminates employment with the Company
and all Affiliates for any reason other than End of Service (i) after the
Restriction Period expires and (ii) before the calendar year specified in a
deferral election, then he or she will be deemed to have elected to defer
delivery to the calendar year following his or her termination of employment. In
addition, if the Participant dies while employed with the Company or any
Affiliate, any Shares remaining to be paid in respect of this Agreement will be
paid to his or her beneficiary designated under the Plan as soon as practicable,
regardless of any outstanding election to defer. Shares whose receipt is
deferred under this Section 9 will be delivered on or about March 15 of the year
to which they were deferred. An election to defer will be considered timely only
if it is filed at least one year and one day in advance of the date the
Restriction Period expires and the Participant remains employed by the Company
or an Affiliate for such period of a year and one day.

         10.      Assignment and Transfers. The rights and interests of the
Participant under this Agreement may not be assigned, encumbered or transferred
except, in the event of the death of the Participant, by will or the laws of
descent and distribution.

         11.      Withholding Tax. The Company and any Affiliate shall have the
right to retain Shares that are distributable to the Participant hereunder to
the extent necessary to satisfy any withholding taxes, whether federal or state,
triggered by the distribution of Shares under this Agreement.

         12.      No Limitation on Rights of the Company. The grant of this
Agreement shall not in any way affect the right or power of the Company to make
adjustments, reclassification, or changes in its capital or business structure,
or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part
of its business or assets.

                                       4
<PAGE>

         13.      Plan and Agreement Not a Contract of Employment. Neither the
Plan nor this Agreement is a contract of employment, and no terms of employment
of the Participant shall be affected in any way by the Plan, this Agreement or
related instruments except as specifically provided therein. Neither the
establishment of the Plan nor this Agreement shall be construed as conferring
any legal rights upon the Participant for a continuation of employment, nor
shall it interfere with the right of the Company or any Affiliate to discharge
the Participant and to treat him or her without regard to the effect that such
treatment might have upon him or her as a Participant.

         14.      Participant to Not Have Rights as a Stockholder. The
Participant shall not have rights as a stockholder with respect to any Shares
subject to this Agreement prior to the date on which he or she is recorded as
the holder of such Shares on the records of the Company.

         15.      Notice. Any notice or other communication required or
permitted hereunder shall be in writing and shall be delivered personally, or
sent by certified, registered or express mail, postage prepaid. Any such notice
shall be deemed given when so delivered personally or, if mailed, three days
after the date of deposit in the United States mail, in the case of the Company
to 21557 Telegraph Road, Southfield, Michigan, 48034, Attention: General Counsel
and, in the case of the Participant, to its address set forth on the signature
page hereto or, in each case, to such other address as may be designated in a
notice given in accordance with this Section.

         16.      Governing Law. This Agreement shall be construed and enforced
in accordance with, and governed by, the laws of the State of Michigan,
determined without regard to its conflict of law rules.

         17.      Plan Document Controls. The rights herein granted are in all
respects subject to the provisions set forth in the Plan to the same extent and
with the same effect as if set forth fully herein. In the event that the terms
of this Agreement conflict with the terms of the Plan document, the Plan
document shall control.

                            [signature page follows]

                                       5
<PAGE>

                  IN WITNESS WHEREOF, the Company and the Participant have duly
executed this Agreement as of the date first written above.

                                          LEAR CORPORATION

                                          By: __________________________________

                                          Its: _________________________________

                                          _________________________________
                                          [Participant's Signature]

                                          Participant's Name and Address for
                                          notices hereunder:

                                          _____________________________________

                                          _____________________________________

                                          _____________________________________

                                       6<PAGE>

                                                                   EXHIBIT 10.33
Recorded at the Request of and
When Recorded Return to:

Pepe & Hazard LLP                                                NOT SUBJECT TO
225 Asylum Street - 22nd Floor                                   RECORDATION TAX
Hartford, CT  06103-4302
Attention:  Adam F. Zweifler, Esq.

                MAXIMUM PRINCIPAL AMOUNT SECURED IS $3,520,000.00
                  GRANTOR NOT PRIMARILY LIABLE FOR DEBT SECURED

                 INDEMNITY DEED OF TRUST AND SECURITY AGREEMENT

         This INDEMNITY DEED OF TRUST AND SECURITY AGREEMENT (the "DEED OF
TRUST") is dated as of the 31st day of October, 2003, by AGREE - COLUMBIA
CROSSING PROJECT, L.L.C., a Delaware limited liability company ("GRANTOR"),
having its principal office at 31850 Northwestern Highway, Farmington Hills,
Michigan 48334 to and in favor of JON M. LARIA AND ANNE HEESTERS SCHROTH, having
an address c/o Ballard Spahr Andrews & Ingersoll, LLP, 300 East Lombard Street,
18th Floor, Baltimore, Maryland 21202 (collectively, the "TRUSTEE"), as trustee
for NATIONWIDE LIFE INSURANCE COMPANY, an Ohio corporation, its successors and
assigns ("LENDER"), having its principal office at One Nationwide Plaza,
Columbus, Ohio 43215-2220, Attention: Real Estate Investment Department, 34T, or
at such other place as Lender may from time to time designate.

                              W I T N E S S E T H:

         WHEREAS, Lender has made four loans of even date herewith in the
aggregate total original principal amount of Fifteen Million Dollars
($15,000,000.00) (the "AGGREGATE LOAN"). The Aggregate Loan is comprised of the
following loans of even date herewith: a loan from Lender to ACCP Maryland LLC,
a Delaware limited liability company (the "BORROWER"), in the original principal
amount of $3,520,000.00 (this "LOAN"); a loan to AMCP Germantown LLC, a Delaware
limited liability company ("AGREE-MILESTONE"), in the original principal amount
of $3,310,000.00 (the "AGREE-MILESTONE LOAN"); a loan to Omaha Store No. 166
L.L.C., a Delaware limited liability company ("OMAHA") in the original principal
amount of $3,910,000.00 (the "OMAHA LOAN"); and a loan to Oklahoma City Store
No. 151 L.L.C., a Delaware limited liability company ("OKLAHOMA CITY"), in the
original principal amount of $4,260,000.00 (the "OKLAHOMA CITY LOAN").
Agree-Milestone, Omaha and Oklahoma City are hereinafter referred to
collectively as the "AFFILIATED BORROWERS". The

                                                              Columbia, Maryland

<PAGE>

Agree-Milestone Loan, the Omaha Loan and the Oklahoma City Loan are hereinafter
referred to generically as an "AFFILIATE LOAN" and collectively as the
"AFFILIATE LOANS";

         WHEREAS, the Borrower is justly indebted to Lender under the Loan in
the original principal sum of Three Million Five Hundred Twenty Thousand and
00/100 Dollars ($3,520,000.00), with interest thereon, which Loan is evidenced
and represented by that certain Note of even date herewith (which Note, as the
same may be extended, renewed, replaced, amended, restated or otherwise
modified, are hereinafter referred to as the "NOTE"), both principal and
interest being payable as therein provided, with the first payment on the Note
becoming due and payable on the date of disbursement; and

         WHEREAS, Grantor has guaranteed to Lender the payment and performance
of Borrower's obligations under the Note pursuant to a Guaranty Agreement of
even date herewith by Grantor (which Guaranty Agreement, as the same may be
extended, renewed, replaced, amended, restated or otherwise modified, is
hereinafter referred to as the "GRANTOR'S GUARANTY"). The terms, covenants and
conditions of the Grantor's Guaranty are hereby specifically incorporated in
this Deed of Trust by reference; and

         WHEREAS, Lender, as a condition precedent to the extension of credit
and the making of the Loan, evidenced by the Note and guaranteed by the
Grantor's Guaranty, has required that Grantor provide Lender with security for
the repayment of the Loan as well as for the performance, observance and
discharge by Grantor of various terms, covenants, conditions and agreements made
by Grantor to, with, in favor of and for the benefit of Lender with respect to
the Loan and such security;

         WHEREAS, (i) the Grantor's obligations under the Grantor's Guaranty
represent a contingent liability that does not mature until there has been an
uncured default by Borrower under the Loan Documents, (ii) Grantor and Borrower
are separate and distinct entities, and (iii) Grantor is not primarily liable
for the obligations of Borrower under the Loan Documents.

         NOW THEREFORE, in consideration of and in order to secure the repayment
of the amounts due under the Grantor's Guaranty, together with interest thereon,
as well as the payment of all other sums of money secured hereby, as hereinafter
provided; to secure the observance, performance and discharge by Grantor of all
terms, covenants, conditions and agreements set forth in the Grantor's Guaranty,
this Deed of Trust, and in all other documents and instruments executed and
delivered by Grantor to and in favor of Lender for the purpose of further
securing the repayment of the Grantor's Guaranty; in order to charge the
properties, interests and rights hereinafter described with such payment,
observance, performance and discharge; and in consideration of the sum of one
dollar paid by Lender to Grantor, and other good and valuable considerations,
the receipt and sufficiency of which are hereby acknowledged by Grantor, Grantor
does hereby grant, bargain, sell, convey, assign, transfer, pledge, deliver,
hypothecate, warrant and confirm unto Lender forever, all of

                                                              Columbia, Maryland

                                       2

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Grantor's right, title and interest in and to the following described
properties, including all rights, interests, replacements, substitutions and
additions thereto, therein or therefore (collectively, the "DEED OF TRUST
PROPERTY"):

         (i)   All that certain piece, parcel or tract of land or real
property of which Grantor is now seized and in actual or constructive
possession, situated in the City of Columbia, County of Howard, and State of
Maryland (the "STATE"), and being more particularly described on EXHIBIT A
attached hereto and by this reference made a part hereof (the "REAL PROPERTY");

         (ii)  All buildings, structures and other improvements of any kind,
nature or description now or hereafter erected, constructed, placed or located
upon the Real Property (the "IMPROVEMENTS"), including, without limitation, any
and all additions to, substitutions for or replacements of such Improvements;

         (iii)  All minerals, royalties, gas rights, water, water rights, water
stock, flowers, shrubs, lawn plants, crops, trees, timber and other emblements
now or hereafter located on, under or above all or any part of the Real
Property;

         (iv)  All and singular, the tenements, hereditaments, strips and gores,
rights-of-way, easements, privileges, profits and other appurtenances now or
hereafter belonging or in any way appertaining to the Real Property, including,
without limitation, all right, title and interest of the Grantor in any
after-acquired right, title, interest, remainder or reversion in and to the beds
of any ways, streets, avenues, roads, alleys, passages and public places, open
or proposed, in front of, running through, adjoining or adjacent to the Real
Property (the "APPURTENANCES");

         (v)  Any and all leases, licenses, contracts, rents, license fees,
royalties, issues, revenues, profits, proceeds, deposits, income and other
benefits, including accounts receivable, termination fees, of, accruing to or
derived from the Real Property, Improvements and Appurtenances, and any business
or enterprise presently situated or hereafter operated thereon and therewith and
all of Grantor's right, title and interest under any and all lease guaranties,
letters of credit, and any other credit support furnished to Grantor in
connection with any of the foregoing (the "RENTS");

         (vi)  Any and all awards, payments or settlements, including interest
thereon, and the right to receive the same, as a result of: (a) the exercise of
the right of eminent domain; (b) the alteration of the grade of any way, street,
avenue, road, alley, passage or public place; (c) any other injury, damage,
casualty or claim relating to the taking of, or decrease in the value of, the
Real Property, Improvements or Appurtenances; or (d) proceeds of insurance
awards, to the extent of all amounts which may be secured by this Deed of Trust
at the date of any such award or payment including but not limited to Reasonable
Attorneys' Fees (as hereinafter

                                                              Columbia, Maryland

                                       3

<PAGE>

defined), costs and disbursements incurred by Lender in connection with the
collection of such award or payment;

         (vii)  All fixtures, materials, equipment, machinery, apparatus,
appliances, and other property whatsoever now or hereafter attached to,
installed in, or used in connection with the buildings and other improvements
now erected or hereafter to be erected on said land, including, but not limited
to, furnaces, steam boilers, hot-water boilers, oil burners, pipes, radiators,
air-conditioning and sprinkler systems, gas and electric fixtures, carpets,
rugs, shades, awnings, screens, elevators, motors, dynamos, cabinets and all
other furnishings, tools, equipment and machinery, appliances, building
supplies, materials, and all fixtures, accessions and appurtenances thereto, and
all renewals or replacements of or substitutions for any of the foregoing, all
of which property and things are hereby declared to be permanent fixtures and
accessions to the freehold and part of the realty conveyed herein as security
for the indebtedness herein mentioned; and

         (viii)  All agreements or contracts relating to any interest rate cap
agreements, swaps or other interest hedging agreements;

         TO HAVE AND TO HOLD the foregoing Deed of Trust Property and the rights
hereby granted for its use and benefit unto Lender, Trustees and its successors
and assigns in fee simple forever, successors in interest of Trustees, in trust,
in fee simple forever;

         FIRST: Until any default in payment of any matter of indebtedness
hereby secured as herein provided for, or until breach of any of the covenants,
agreements, terms or conditions herein contained, to permit Grantor, its
successors and assigns, to possess and enjoy said Property and to receive the
rents, issues and profits thereof; and on full payment of the Note, the
Grantor's Guaranty, and of any extensions or renewals thereof, and interest
thereon, and all sums advanced or expended as herein provided, and all other
proper costs, charges, expenses, commissions, at any time before the sale
hereinafter provided for, to release and reconvey unto and at the cost of
Grantor, or the party or parties then claiming under Grantor, the aforesaid
Property.

         SECOND: Upon any default being made in payment under the Grantor's
Guaranty or any installment of principal, interest or either, due thereunder, or
any renewal or extension thereof, or this Deed of Trust; or upon any default in
the performance of any of the covenants, conditions or agreements herein or in
the Grantor's Guaranty contained; then upon any such default so made as
aforesaid:

         The Grantor, in accordance with the Maryland Rules of Procedure or any
Public General Law or Public Local Law of the State of Maryland relating to
deeds of trust or mortgages, including any supplements, amendments or additions
thereto, does hereby assent to

                                                              Columbia, Maryland

                                       4

<PAGE>

the passage of a decree by the Circuit Court for Howard County, as may be
required by applicable law; or

         The Trustees or substitute Trustees shall have the power and, upon the
direction of the Lender, the duty to sell and in the event of default by any
purchaser, to re-sell the herein described Property.

         Upon any such sale, whether made under the assent to the passing of a
decree or under the power of sale, the party selling may sell the Property as a
whole or in such parcel or parcels, manner or order, as such party selling may,
in its sole discretion, elect; such sale may also be at the sole discretion of
the party selling subject to any one or more existing tenancies. Such sale shall
be at public auction at such time and place, upon such terms and conditions, and
after such previous public notice (in compliance with the Maryland Rules of
Procedure and any other applicable law) as Trustees, or substitute Trustees,
shall deem best for the interest of all parties concerned, and (the terms of the
sale being complied with), Trustees shall convey to the purchaser or purchasers
at the cost of such purchaser or purchasers, the Property so sold, such
purchaser or purchasers being hereby discharged from all liability for the
application of the purchase money; and shall apply the proceeds of sale (after
paying from the proceeds all expenses of sale of every kind and nature
whatsoever, including, without limitation, reasonable attorneys' fees, all taxes
and assessments thereon due, all insurance premiums and fees for guard or
watchmen services, all utility charges of whatsoever nature whether or not
listed on the real property tax bill, all sums advanced as herein provided, and
a trustees' commission equal to the commission allowed trustees for making sales
of property under decrees of the equity courts having jurisdiction), to the
payment of the indebtedness due and outstanding under the Grantor's Guaranty
whether matured or not, and the interest thereon, to date of payment from
purchaser, paying over the surplus, if any, to Grantor, its successors or
assigns, upon the surrender and delivery to the purchaser or to the heirs,
personal representatives, successors or assigns of purchaser, of the possession
of the Property so sold and conveyed, less the expense, if any, of obtaining
possession thereof. Half of such commissions and all such expenses and costs
shall be paid by Grantor, its heirs, successors or assigns in the event that the
debt evidenced by the Note shall be paid after any advertisement of the
Property, but before sale thereof. The Trustees may act hereunder and may sell
and convey said Property under power granted above although the Trustees have
been, may now be or may hereafter be attorneys or agents of the Lender. In the
event that the purchaser at such sale or resale shall be the then holder of the
Note, the Grantor's Guaranty which is entitled to receive the proceeds of such
sale, then the person responsible for conducting the sale shall accept on
account of the purchase price, without requiring the actual payment of money,
the written receipt of such purchaser for up to the amount of proceeds to which
such purchaser is entitled, except such sums as are necessary to pay the
above-mentioned expenses of sale. The holder of the Note, the Grantor's
Guaranty, as purchaser, need not tender cash or the equivalent thereof as a
required deposit in connection with any such sale.

                                                              Columbia, Maryland

                                       5

<PAGE>

         Grantor, in addition, agrees that Lender, may in the event of default,
proceed under the Uniform Commercial Code as presently contained in the
Commercial Law Article of the Annotated Code of Maryland, and any and all
amendments, additions and supplements thereto as to all or any part of the
chattels, personal property, equipment and fixtures included in the Property
described aforesaid and Grantor agrees that the Trustees shall have and may
exercise with respect to all such chattels, personal property, equipment and
fixtures aforesaid, all the rights, remedies and powers of a secured party under
the Uniform Commercial Code including, without limitation, the right and power
to replevy, sell or otherwise dispose of, foreclose upon, lease or utilize all
or any part of such chattels, personal property, equipment and fixtures
aforesaid in any manner authorized or permitted under said Uniform Commercial
Code.

         In order to secure the repayment of the Loan guaranteed by the
Grantor's Guaranty, together with interest on the Loan, as well as the payment
of all other sums of money secured hereby, as hereinafter provided; and to
secure the observance, performance and discharge by Grantor of all covenants,
conditions and agreements set forth in the Grantor's Guaranty, this Deed of
Trust and in the other documents and instruments executed and delivered by
Grantor to and in favor of Lender for the purpose of further securing the
repayment of the Loan guaranteed by the Grantor's Guaranty; and in order to
charge the properties, interests and rights hereinafter described with such
payment, observance, performance and discharge; and in consideration of the sum
of Ten Dollars ($10.00) paid by Lender and other good and valuable
considerations, the receipt and sufficiency of which are hereby acknowledged,
Grantor hereby grants Trustees, their successors and assigns, a security
interest in all Fixtures, Goods (including, without limitation, Consumer Goods,
Inventory, Equipment and Farm Products), Accounts, Chattel Paper (including,
without limitation, Electronic Chattel Paper and Tangible Chattel Paper),
Instruments, General Intangibles (including, without limitation, Payment
Intangibles and Software), Letters of Credit, Letter-of-Credit Rights,
Documents, As-Extracted Collateral, Money and Deposit Accounts of every kind,
and all proceeds thereof, including, without limitation, any and all licenses,
permits, franchises, trademarks, trade names, service marks or logos, plans,
specifications, maps, construction contracts, instruments, insurance policies,
fittings and fixtures of every kind, which is, are or shall hereafter be located
upon, attached, affixed to or used or useful, either directly or indirectly, in
connection with the complete and comfortable use, occupancy and operation of the
Real Property, Improvements or Appurtenances as a retail project (the "EXISTING
USE"), or any other business, enterprise or operation as may hereafter be
conducted upon or with said Real Property, Improvements or Appurtenances,
including, without limitation, any and all licenses, permits or franchises, used
or required in connection with such use, occupancy or operation as well as the
proceeds thereof or therefrom regardless of form, all security deposits and
advance rentals under lease agreements now or at any time hereafter covering or
affecting any of the Property and held by or for the benefit of Grantor, all
monetary deposits which Grantor has been required to give to any public or
private utility with respect to utility services furnished to the Real Property
or Improvements, all rents, issues and profits from leases of all or any part of
the Real Property

                                                              Columbia, Maryland

                                       6

<PAGE>

or Improvements, all proceeds (including premium refunds) of each policy of
insurance relating to the Real Property or Improvements, all proceeds from the
taking of the Real Property or Improvements or any part thereof or any interest
therein or right or estate appurtenant thereto by eminent domain or by purchase
in lieu thereof, all amounts deposited in escrow for the payment of ad valorem
taxes, assessments, charges, ground rentals and/or premiums for policies of
insurance with respect to the Real Property or Improvements, all proceeds and
other amounts paid or owing to Grantor under or pursuant to any and all
contracts and bonds relating to the construction, erection or renovation of the
Real Property or Improvements, all oil, gas and other hydrocarbons and other
minerals produced from or allocated to the Real Property and all products
processed or obtained therefrom, the proceeds thereof, and all accounts and
general intangibles under which such proceeds may arise, together with any sums
of money that may now or at any time hereafter become due and payable to Grantor
by virtue of any and all royalties, overriding royalties, bonuses, delay rentals
and any other amount of any kind or character arising under any and all present
and future oil, gas and mining leases covering the Real Property or any part
thereof (collectively, the "FIXTURES AND PERSONAL PROPERTY," which term
expressly excludes any toxic waste or substance deemed hazardous under federal,
regional, state or local laws, codes, ordinances, statutes, rules, regulations,
decisions or orders). The Deed of Trust Property and the Fixtures and Personal
Property are herein together referred to as the "PROPERTY".

         Except as otherwise expressly provided in this Deed of Trust, all terms
in this Deed of Trust relating to the Property and the grant of the foregoing
security interest which are defined in the Uniform Commercial Code of the State
(the "UCC") shall have the meanings assigned to them in Article 9 (or, absent
definition in Article 9, in any other Article) of the UCC, as those meanings may
be amended, revised or replaced from time to time. Notwithstanding the
foregoing, the parties intend that the terms used herein which are defined in
the UCC have, at all times, the broadest and most inclusive meanings possible.
Accordingly, if the UCC shall in the future be amended or held by a court to
define any term used herein more broadly or inclusively than the UCC in effect
on the date of this Deed of Trust, then such term, as used herein, shall be
given such broadened meaning. If the UCC shall in the future be amended or held
by a court to define any term used herein more narrowly, or less inclusively,
than the UCC in effect on the date of this Deed of Trust, such amendment or
holding shall be disregarded in defining terms used in this Deed of Trust.

         Grantor hereby covenants and warrants with and to Lender that Grantor
is indefeasibly seized of the Property and has good right, full power, and
lawful authority to convey and encumber all of the same as aforesaid; that
Grantor hereby fully warrants the title to the Property and will defend the same
and the validity and priority of the lien and encumbrance of this Deed of Trust
against the lawful claims of all persons whomsoever; and Grantor further
warrants that the Property is free and clear of all liens and encumbrances of
any kind, nature or description, save and except only (with respect to said Real
Property, Improvements and Appurtenances) for real property taxes for years
subsequent to 2004 (which are not yet due and

                                                              Columbia, Maryland

                                       7

<PAGE>

payable) and those exceptions accepted by Lender as set forth in the title
insurance commitment or proforma policy issued to Lender precedent to the
issuance of a Lender's Policy of Title Insurance insuring the second lien
priority of this Deed of Trust (the "PERMITTED EXCEPTIONS").

         If Grantor shall pay to Lender the Loan guaranteed by the Grantor's
Guaranty and if Grantor shall duly, promptly and fully perform, discharge,
execute, effect, complete and comply with and abide by each and every one of the
terms, covenants, conditions and agreements of the Grantor's Guaranty, this Deed
of Trust, and all other Loan Documents, then this Deed of Trust and the estates
and interests hereby granted and created shall cease, terminate and be null and
void, and shall be discharged of record at the expense of Grantor.

         Grantor, for the benefit of Lender and its successors and assigns, does
hereby expressly covenant and agree as follows:

         1.       PERFORMANCE OF GUARANTY. Grantor shall fulfill all of its
obligations under the Grantor's Guaranty, together with all interest thereon, in
accordance with the terms, covenants and conditions of the Grantor's Guaranty
promptly at the times, at the place and in the manner that said principal and
interest shall become due under the Grantor's Guaranty, and shall promptly and
punctually pay all other sums required to be paid by Grantor pursuant to the
terms, covenants and conditions of the Grantor's Guaranty, this Deed of Trust,
the Indemnity Assignment of Leases, Rents and Profits of even date herewith
(which Indemnity Assignment of Leases, Rents and Profits, as the same may be
extended, renewed, replaced, amended, restated or otherwise modified, is
hereinafter referred to as the "ASSIGNMENT"), and all other documents and
instruments executed as further evidence of, as additional security for or
executed in connection with the Loan evidenced by the Note, guaranteed by the
Grantor's Guaranty and secured by this Deed of Trust (collectively, the "LOAN
DOCUMENTS").

         2.       PERFORMANCE OF OTHER OBLIGATIONS. Grantor shall perform,
comply with and abide by, and cause Borrower to perform, comply with and abide
by, each and every one of the terms, covenants, conditions and agreements
contained and set forth in the Note, the Grantor's Guaranty, this Deed of Trust,
and the other Loan Documents, shall comply with all Laws (hereafter defined) and
shall perform all of its obligations under any term, covenant, condition,
restriction or agreement of record affecting the Property, and to insure that at
all times the Property constitutes one or more legal lots capable of being
conveyed without violation of any subdivision or platting laws, codes,
ordinances, statutes, rules, regulations, or other laws relating to the
division, separation or subdivision of real property.

                                                              Columbia, Maryland

                                       8

<PAGE>

         3.       PRESERVATION AND MAINTENANCE OF PROPERTY; ACCESSIBILITY;
HAZARDOUS WASTE.

                  (a)      Grantor shall keep all Improvements now existing or
hereafter erected on the Real Property in good order and repair, only to be used
for the Existing Use, and not to do or permit any waste, impairment or
deterioration thereof or thereon, nor to alter, remove or demolish any of the
Improvements or any Fixtures and Personal Property attached or appertaining
thereto, without the prior written consent of Lender, nor to initiate, join in
or consent to any change in any private restrictive covenant, zoning ordinance
or other public or private restrictions limiting or defining the uses which may
be made of the Property or any part thereof, nor to do or permit any other act
whereby the Property shall become less valuable, be used for purposes contrary
to applicable Law or be used in any manner which will increase the premium for
or result in a termination or cancellation of the insurance policies hereinafter
required to be kept and maintained on the Property. In furtherance of, and not
by way of limitation upon, the foregoing covenant, Grantor shall effect such
repairs as Lender may reasonably require, and from time to time make all needful
and proper replacements so that the Improvements, Appurtenances, Fixtures and
Personal Property will, at all times, be in good condition, fit and proper for
the respective purposes for which they were originally erected or installed. In
connection with the making of such repairs, Grantor shall use contractors who
are properly licensed, who carry workers' compensation insurance and appropriate
liability insurance, who generally have a good reputation for completing their
work in a neat, prompt and workmanlike manner, and use only new or
re-manufactured goods of a quality as good or better than that originally used
on the Property. As provided herein, Grantor shall insure that no liens are
filed against the Property that relate in any way to the repair work provided
for herein. For so long as that certain Lease of the Property (the "BORDERS
LEASE") dated November 14, 2002 between Grantor, as landlord, and Border's,
Inc., a Colorado corporation ("BORDERS") as tenant remains in effect with
Borders as the tenant thereunder and Grantor is diligently enforcing the
obligations of Borders thereunder, Grantor shall be deemed to be in compliance
with the requirements of this subparagraph.

         Grantor at all times shall keep the Property and ground water of the
Property free of Hazardous Materials (as hereinafter defined) to the extent
required by applicable governmental agencies and free of any liens arising in
connection therewith. Grantor shall not and shall not knowingly permit its
tenants or any third party requiring the consent of Grantor to enter the
Property, to use, generate, manufacture, treat, store, release, threaten
release, transport on or over, emit or dispose of Hazardous Materials in, on,
over, under or about the Property including the ground water of the Property in
violation of any federal, regional, state or local law, code, ordinance,
statute, rule, regulation, decision or order currently in existence or hereafter
enacted or rendered (collectively, "HAZARDOUS WASTE LAWS"). Grantor shall give
Lender prompt Written Notice (as hereinafter defined) of any claim by any
person, entity, or governmental agency that a significant release or disposal of
Hazardous Materials has occurred in, on, over, under or about the Property,
including the ground water of the Property, in

                                                              Columbia, Maryland

                                       9

<PAGE>

excess of those permitted by the Hazardous Waste Laws, whether caused by the
Grantor, any tenant or any third party. Grantor, through its professional
engineers and at Grantor's sole cost, shall promptly and thoroughly investigate
any suspected release of Hazardous Materials in, on, over, under or about the
Property, including the ground water of the Property. Grantor shall forthwith
remove, repair, remediate, clean up, and/or detoxify any Hazardous Materials
found in, on, over, under or about the Property or in the ground water of the
Property to the extent such actions are required by any applicable Hazardous
Waste Laws, and whether or not Grantor was responsible for the existence of the
Hazardous Materials in, on, over, under or about the Property or the ground
water of the Property. "HAZARDOUS MATERIALS" shall include, but not be limited
to, substances defined as "hazardous substances," "hazardous materials," or
"toxic substances" under any Hazardous Waste Laws.

                  (b)      In addition,Grantor shall not incorporate any
underground storage tanks into the Real Property without the prior written
consent of Lender, and shall insure that all tanks currently on the Real
Property comply with current Hazardous Waste Laws and underground storage tank
regulations and are properly registered.

         Grantor hereby agrees to indemnify and defend Lender and Trustees and
hold Lender and Trustees harmless from and against any and all losses,
liabilities, damages, injuries, costs, expenses, fines, fees, suits, actions,
debts, obligations, and claims of any and every kind whatsoever, including
Reasonable Attorneys' Fees (collectively, "LOSSES") paid, incurred or suffered
by, or asserted against, Lender or Trustees for, with respect to, or as a direct
or indirect result of, the presence in, on, over, under or about, or the escape,
seepage, leakage, spillage, discharge, emission or release from, the Property of
any Hazardous Materials (including, without limitation, any losses, liabilities,
damages, injuries, costs, expenses or claims asserted or arising under any
Hazardous Waste Laws), regardless of the source of origination and whether or
not caused by, or within the control of, Grantor and including any claims of
lender's negligence or strict liability, but excluding Lender's willful
misconduct or gross negligence.

         Liability under this Section 3(b) and similar provisions in this Deed
of Trust and the other Loan Documents concerning Hazardous Materials shall
survive repayment of the Note, the Grantor's Guaranty, and satisfaction of this
Deed of Trust; provided, however, Grantor shall have no liability under this
Section 3(b) regarding Hazardous Materials if either (i) the Property becomes
contaminated subsequent to Lender's acquisition of the Property by foreclosure,
acceptance by Lender of a deed in lieu thereof, or subsequent to any transfer of
ownership of the Property which was approved or authorized by Lender in writing,
pursuant to this Deed of Trust, provided that such transferee assumes in writing
all of the obligations of Grantor with respect to Hazardous Materials pursuant
to the Loan Documents, or (ii) at such time Grantor provides Lender with an
environmental assessment report acceptable to Lender, in Lender's sole
discretion, showing the Property to be free of Hazardous Materials and not in
violation of any Hazardous Waste Laws. The burden of proof under this Section
3(b) with

                                                              Columbia, Maryland

                                       10

<PAGE>

regard to establishing the date upon which any Hazardous Materials was released
in, on, over, under or about the Property shall be upon Grantor.

                  (c)      Grantor at all times shall maintain the Property in
full compliance with all federal, state, county, regional or local laws, codes,
ordinances, rules, regulations, decisions and orders currently in existence or
hereafter enacted or rendered, governing accessibility for the disabled,
including but not limited to: The Architectural Barriers Act of 1968; The
Rehabilitation Act of 1973; The Fair Housing Act of 1988; The Americans with
Disabilities Act; and The Maryland Elimination of Architectural Barriers Act
(collectively, the "ACCESSIBILITY LAWS").

         Grantor hereby agrees to indemnify and defend Lender and hold Lender
harmless from and against any and all Losses paid, incurred or suffered by, or
asserted against Lender for, with respect to, or as a direct or indirect result
of, the non-compliance of the Property with the Accessibility Laws whether or
not caused by, or within the control of, Grantor, and including any claims of
lender's negligence or strict liability, but excluding Lender's willful
misconduct or gross negligence.

         Liability under this Section 3(c) and similar provisions in this Deed
of Trust and the other Loan Documents concerning Accessibility Laws shall
survive repayment of the Note and satisfaction of this Deed of Trust; provided,
however, Grantor shall not be liable under this Section 3(c) for compliance with
any Accessibility Laws if such Accessibility Laws first become effective, or
such violations result from alterations or improvements to the Property that are
performed subsequent to Lender's acquisition of the Property by foreclosure or
acceptance of a deed in lieu thereof or subsequent to any transfer which was
approved or authorized by Lender pursuant to this Deed of Trust, provided that
such transferee assumes in writing all obligations pertaining to the
Accessibility Laws pursuant to this Deed of Trust and the other Loan Documents.
The burden of proof under this Section 3(c) with regard to establishing the date
upon which such non-compliance with any Accessibility Laws occurred at the
Property shall be upon Grantor.

                  (d)      Lender, and/or its agents, shall have the right and
shall be permitted, subject to the rights of Borders under the Borders Lease,
but shall not be required, at all reasonable times, to enter upon and inspect
the Property to insure compliance with the foregoing covenants, and any and all
other terms, covenants, conditions and agreements set forth in this Deed of
Trust.

         4.       PAYMENT OF TAXES, ASSESSMENTS AND OTHER CHARGES. Grantor shall
pay, or cause to be paid, all taxes, assessments and other charges as already
levied or assessed, or that may be hereafter levied or assessed, upon or against
the Property, when the same shall become due and payable according to Law,
before delinquency, and before any interest or penalty shall attach thereto, and
to deliver official receipts evidencing the

                                                              Columbia, Maryland

                                       11

<PAGE>

payment of the same to Lender not later than thirty (30) days following the
payment of the same. Grantor shall have the right to contest, in good faith and
in accordance with applicable Laws and procedures, the proposed assessment of ad
valorem taxes or special assessments by governmental authorities having
jurisdiction over the Property; provided, however, Grantor shall give Written
Notice of its intent to bring such an action to Lender, and Lender may, in its
sole discretion, require Grantor to post a bond or other collateral satisfactory
to Lender (and acceptable to the title company insuring this Deed of Trust) as a
result of Grantor's act.

         5.       PAYMENT OF LIENS, CHARGES AND ENCUMBRANCES. Grantor shall
immediately pay and discharge from time to time when the same shall become due,
all lawful claims and demands of mechanics, materialmen, laborers, realtors,
brokers and others which, if unpaid, might result in, or permit the creation of,
a lien, charge or encumbrance upon the Property or any part thereof, or on the
Rents, arising therefrom and, in general, to do or cause to be done everything
necessary so that the lien of this Deed of Trust shall be fully preserved, at
the sole cost of Grantor, without expense to Lender. Grantor shall have the
right to contest, in good faith and in accordance with applicable Laws and
procedures, mechanics', materialmens' and other such liens filed against the
Property; provided however, that Grantor shall give Written Notice to Lender of
its intent to bring such action, and Lender may, in Lender's sole discretion,
require Grantor to post a bond or other collateral satisfactory to Lender (and
acceptable to the title company insuring this Deed of Trust) as a result of
Grantor's act.

         6.       PAYMENT OF JUNIOR ENCUMBRANCES. Grantor shall permit no
default or delinquency under any other lien, imposition, charge or encumbrance
against the Property, even though junior and inferior to the lien of this Deed
of Trust; provided however, the foregoing shall not be construed to permit any
such additional lien or encumbrance against the Property, other than the
Permitted Exceptions.

         7.       PAYMENT OF MORTGAGE TAXES. Grantor shall pay any and all taxes
which may be levied or assessed directly or indirectly upon the Note and/or this
Deed of Trust (except for income taxes payable by Lender) or the Loan, without
regard to any Law which may be hereafter enacted imposing payment of the whole
or any part thereof upon Lender, its successors or assigns. Upon violation of
this covenant, or upon the rendering by any court of competent jurisdiction of a
decision that such a covenant by Grantor is legally inoperative, or if any court
of competent jurisdiction shall render a decision that the rate of said tax when
added to the rate of interest provided for in the Note exceeds the then maximum
rate of interest allowed by Law, then, and in any such event, the debt hereby
secured shall, at the option of Lender, its successors or assigns, become
immediately due and payable, anything contained in this Deed of Trust or in the
Grantor's Guaranty notwithstanding, without the imposition of a Prepayment
Premium (as defined in the Note). The additional amounts which may become due
and payable hereunder shall become a part of the Loan secured by this Deed of
Trust.

                                                              Columbia, Maryland

                                       12

<PAGE>

         8.       HAZARD INSURANCE. Grantor shall continuously, during the term
of this Deed of Trust, keep the Improvements, Appurtenances, and Fixtures and
Personal Property, now or hereafter existing, erected, installed and located in
or upon the Real Property, insured with extended coverage insurance against loss
or damage resulting from fire, windstorm, flood, sinkhole, earthquake, mine
subsidence, acts of terrorism, and such other hazards, casualties, contingencies
and perils including, without limitation, other risks insured against by persons
operating like properties in the locality of the Property, or otherwise deemed
necessary or advisable by Lender or any Rating Agency (as hereinafter defined),
on such forms and with such deductibles as may be required by Lender or any
Rating Agency, covering the Property in the amount of the full replacement cost
thereof, (without taking into account any depreciation) less excavating and
foundation costs, and covering all loss or abatement of rental or other income,
without a provision for co-insurance, in an amount equal to the scheduled rental
income of the Property for at least twelve (12) months, or if applicable,
business interruption insurance in an amount sufficient to pay debt service on
the Note, operating expenses, taxes and insurance on the Property for a period
of twelve (12) months, and covering loss by flood (if the Property lies in a
Special Flood Hazard Area as designated on the Department of Housing and Urban
Development's Maps, or other flood prone designation) in an amount equal to the
outstanding principal balance of the Loan or such other amount as approved by
Lender, and earthquake insurance with a deductible amount of no more than ten
percent (10%) of the policy amount if, in the judgment of Lender's inspecting
architect, the Property lies in an area of anticipated significant seismic
activity, and "Ordinance or Law Coverage" or "Enforcement" endorsements in
amounts satisfactory to Lender if any of the Improvements or the use of the
Property shall at any time constitute legal non-conforming structures or uses or
the ability to rebuild the Improvements is restricted or prohibited, and
comprehensive boiler and machinery insurance (without exclusion for explosion),
if applicable, in amounts as shall be reasonably required by Lender or any
Rating Agency and covering all boilers or other pressure vessels, machinery and
equipment located at or about the Property (including, without limitation,
electrical equipment, sprinkler systems, heating and air conditioning equipment,
refrigeration equipment and piping). All such insurance shall be carried with a
company or companies licensed to do business in the State, which is acceptable
to Lender, which company or companies shall have a rating at the time this Deed
of Trust is executed equivalent to at least A:X as shown in the most recent
Best's Key Rating Guide. The original policy or policies and renewals thereof
(or, at the sole option of Lender, duplicate originals or certified copies
thereof), together with receipts evidencing payment of the premium therefor,
shall be deposited with, held by and are hereby assigned to, Lender as
additional security for the Loan. Each such policy of insurance shall contain a
noncontributing loss payable clause in favor of and in a form acceptable to
Lender, and shall provide for not less than thirty (30) days prior Written
Notice to Lender of any intent to modify, non-renew, cancel or terminate the
policy or policies, or the expiration of such policies of insurance, or the
exclusion of any individual risk such as acts of terrorism. If the insurance
required under this Section 8 or any portion thereof is maintained pursuant to a
blanket policy, Grantor shall furnish to Lender a certified copy of such policy,
together with an original Evidence of Insurance Certificate (Acord Form 27) for

                                                              Columbia, Maryland

                                       13

<PAGE>

hazard insurance indicating that Lender is an additional insured under such
policy in regard to the Property and showing the amount of coverage apportioned
to the Property, which coverage shall be in an amount sufficient to satisfy the
requirements hereof. Not less than fifteen (15) days prior to the expiration
dates of each policy required of Grantor hereunder, Grantor will deliver to
Lender a renewal policy or policies marked "premium paid" or accompanied by
other evidence of payment and renewal satisfactory to Lender. In the event of
foreclosure of this Deed of Trust or other transfer of title to the Property in
extinguishment of the Loan, all right, title and interest of Grantor, in and to
any insurance policies then in force including any rights to unearned premiums,
and in and to insurance proceeds then payable, shall pass to the purchaser or
grantee.

         For so long as the Borders Lease remains in effect with Borders as the
tenant thereunder, then to the extent that Borders self-insures to satisfy its
insurance obligations under the Borders Lease, Lender shall accept such
self-insurance as satisfying the obligation of Grantor to provide insurance
under this Section 8, provided that (i) Borders, or the guarantor of the Borders
Lease, Boarders Group, Inc., maintains a minimum net worth of not less than Two
Hundred Fifty Million Dollars ($250,000,000.00), (ii) such self-insurance
otherwise satisfies the requirements of this Section 8 as to the amount required
to be maintained by Borders, and (iii) Grantor provides to Lender written
verification of such coverage in form and substance reasonably acceptable to
Lender. Notwithstanding the foregoing, Lender shall have the right require
Grantor to maintain in effect a separate policy of liability insurance with
respect to the Property meeting the requirements of Section 9 of this Deed of
Trust.

         In the event of loss covered by insurance maintained by Grantor with
respect to the Property, including, without limitation, insurance covering
hazards, casualties, contingencies and perils for which insurance has been
required by Lender hereunder, Grantor shall give immediate notice thereof to
Lender. Lender is hereby irrevocably appointed attorney-in-fact coupled with an
interest for Lender to, at its option, make proof of loss and/or to file a claim
thereunder. Each insurance company concerned is hereby notified, authorized and
directed to make payment for such loss directly to Lender, instead of to Grantor
and Lender jointly, and Grantor hereby authorizes Lender to adjust and
compromise any losses for which insurance proceeds are payable under any of the
aforesaid insurance policies and, after deducting the costs of collection, to
apply the proceeds of such insurance, at its option either: (a) to the
restoration or repair of the insured Improvements, Appurtenances, and Fixtures
and Personal Property, provided that, in the opinion and sole discretion of
Lender, such restoration or repair is reasonably practical and, provided
further, that, in the opinion and sole discretion of Lender, either: (i) the
insurance proceeds so collected are sufficient to cover the cost of such
restoration or repair of the damage or destruction with respect to which such
proceeds were paid, or (ii) the insurance proceeds so collected are not
sufficient alone to cover the cost of such restoration or repair, but are
sufficient therefor when taken together with funds provided and made available
by Grantor from other sources; in which event Lender shall make such insurance
proceeds available to Grantor for the purpose of effecting such restoration or
repair;

                                                              Columbia, Maryland

                                       14

<PAGE>

but Lender shall not be obligated to see to the proper application of such
insurance proceeds nor shall the amount of funds so released or used be deemed
to be payment of or on account of the Loan; or (b) to the reduction of the Loan,
notwithstanding the fact that the amount owing thereon may not then be due and
payable or that said Loan is otherwise adequately secured, in which event such
proceeds shall be applied at par against the Loan and the monthly payment due on
account of such Loan shall be reduced accordingly as calculated by Lender. None
of such actions taken by Lender shall be deemed to be or result in a waiver or
impairment of any equity, lien or right of Lender under and by virtue of this
Deed of Trust, nor will the application of such insurance proceeds to the
reduction of the Loan serve to cure any default in the payment thereof. In the
event of foreclosure of this Deed of Trust or other transfer of title to the
Property in extinguishment of the Loan, all right, title and interest of Grantor
in and to any insurance policies then in force including any rights to unearned
premiums and in and to insurance proceeds then payable, shall pass to the
purchaser or grantee.

         In case of Grantor's failure to keep the Property properly insured as
required herein, Lender, its successors or assigns, may, at its option (but
shall not be required to) acquire such insurance as required herein at Grantor's
sole expense.

         Notwithstanding anything set forth in this Section 8 to the contrary,
in the event of loss or damage to the Property by fire or other casualty covered
by insurance maintained by Grantor with respect to the Property, including,
without limitation, insurance which has been required by Lender hereunder and
provided by Grantor, and the amount of such loss or damage does not exceed
twenty-five percent (25%) of the unpaid principal balance of the Note, Lender
hereby agrees to allow the proceeds of insurance to be used for the restoration
of the Property and to release such insurance proceeds to Grantor as such
restoration progresses, provided:

                  (a)      Neither Grantor nor Borrower is in default under any
of the terms, covenants and conditions of this Deed of Trust, the Grantor's
Guaranty, the Note or any of the other Loan Documents;

                  (b)      The Improvements, after such restoration, shall be at
least eighty percent (80%) leased pursuant to leases approved in writing by
Lender;

                  (c)      The plans and specifications for the restoration of
the Property are approved in writing by Lender in advance;

                  (d)      At all times during such restoration,Grantor has
deposited with Lender funds which, when added to the insurance proceeds received
by Lender, are sufficient to complete the restoration of the Property in
accordance with the approved plans and specifications, and all applicable
building codes, zoning ordinances, regulations and

                                                              Columbia, Maryland

                                       15

<PAGE>

Accessibility Laws, and further, that the funds retained by Lender are
sufficient to complete the restoration of the Property as certified to Lender by
Lender's inspecting architect/engineer;

                  (e)      Grantor provides suitable completion, payment and
performance bonds, builders' all risk insurance, and all necessary licenses and
permits for such restoration in form and amount acceptable to Lender;

                  (f)      The insurer under such policies of fire or other
casualty insurance does not assert any defense to payment under such policies
against Lender, Grantor, any tenant, or third party of Grantor with regard to
the Property;

                  (g)      Lender shall have the option, upon the completion of
such restoration of the Property, to apply any surplus insurance proceeds
remaining after the completion of such restoration, at par, to the reduction of
the outstanding principal balance of the Note; notwithstanding the fact that the
amount owing thereon may not then be due and payable or that said Loan is
otherwise adequately secured;

                  (h)      The funds held by Lender shall be disbursed no more
often than once per month and in not more than five (5) increments of not less
than Fifty Thousand Dollars ($50,000) each, except the final disbursement of
such funds which may be in an amount less than Fifty Thousand Dollars ($50,000);

                  (i)      Lender's obligation to make any such disbursement
shall be conditioned upon Lender's receipt of written certification from
Lender's inspecting architect/engineer (whose fees shall be reimbursed to Lender
by Grantor) that all construction and work for which such disbursement is
requested has been completed in accordance with the approved plans and
specifications and in accordance with all applicable building codes, zoning
ordinances and all other Laws and, further, that Grantor has deposited with
Lender sufficient funds to complete such restoration in accordance with Section
8(d);

                  (j)      In the reasonable judgment of the Lender, the
Property can be restored within six months after insurance proceeds are made
available and at least six months prior to the Maturity Date (as defined in the
Note) to an economic unit not less valuable (including an assessment by Lender
of the impact of the termination of any Occupancy Leases due to such casualty)
and not less useful than the same was prior to the casualty, and after such
restoration will adequately secure the outstanding balance of the Loan; and

                  (k)      Lender shall be entitled to require and to impose
such other conditions to the release of such funds as would be customarily or
reasonably be required and imposed by institutional mortgage lenders for a
project of similar nature and cost.

                                                              Columbia, Maryland

                                       16

<PAGE>

         In the event of a casualty, provided that Grantor is not then in
default hereunder beyond the expiration of applicable notice and cure periods,
then notwithstanding any provision of this Section 8 to the contrary, Lender
shall make insurance proceeds available for restoration of the Property to the
extent required under the terms of the Borders Lease.

         9.       LIABILITY INSURANCE. Grantor shall carry and maintain such
commercial general liability insurance as may from time to time be required by
Lender or any Rating Agency, taking into consideration the type of property
being insured and the corresponding liability exposure, on forms, with
deductibles, in amounts and with such company or companies licensed to do
business in the State and as may be acceptable to Lender. All such commercial
general liability insurance shall be carried with a company or companies which
have and maintain a rating equivalent to at least A:X as shown in the most
recent Best's Key Rating Guide. The original policy or policies and all renewals
thereof (or, at the sole option of Lender, duplicate originals or certified
copies thereof), together with a Certificate of Insurance (Acord Form 25S) and
receipts evidencing payment of the premium therefor, shall be deposited with,
held by and are hereby assigned to, Lender as additional security for the Loan.
Such policy or policies of insurance shall name Lender as an additional insured
and shall provide for not less than thirty (30) days prior Written Notice to
Lender of any intent to modify, cancel, non-renew, or terminate the policy or
policies or the expiration of such policy or policies of insurance, or the
exclusion of any individual risk such as acts of terrorism. Not less than
fifteen (15) days prior to the expiration dates of each policy or policies
required of Grantor hereunder, Grantor will deliver to Lender a renewal policy
or policies marked "premium paid" or accompanied by other evidence of payment
and renewal satisfactory to Lender. In the event of foreclosure of this Deed of
Trust or other transfer of title to the Property in extinguishment of the Loan,
all right, title and interest of Grantor, in and to any insurance policies then
in force including any rights to unearned premiums, and in and to insurance
proceeds then payable, shall pass to the purchaser or grantee. In case of
Grantor's failure to keep the Property properly insured as required herein,
Lender, its successors or assigns, may, at its option (but shall not be required
to) acquire such insurance as required herein at Grantor's sole expense.

         10.      COMPLIANCE WITH LAWS.

                  (a)      Grantor shall observe, abide by and comply with all
federal, regional, state and local laws, codes, ordinances, statutes, rules,
regulations, decisions, orders, requirements or decrees relating to the Property
enacted, promulgated or issued by any federal, state, county or local
governmental or quasi-governmental authority or any agency or subdivision
thereof having jurisdiction over Grantor or the Property, which now or hereafter
affect Grantor or the Property, including Hazardous Waste Laws and Accessibility
Laws (collectively, the "LAWS"), and to observe and comply with all conditions
and requirements necessary to preserve and extend any and all rights, licenses,
permits (including, but not limited to, zoning, variances, special exceptions
and nonconforming uses), privileges,

                                                              Columbia, Maryland

                                       17

<PAGE>

franchises and concessions which are applicable to the Property, or which have
been granted to or contracted for by Grantor in connection with any existing,
presently contemplated or future uses of the Property.

                  (b)      Grantor shall not engage in any transaction which
would cause any obligation, or action taken or to be taken, hereunder (or the
exercise by Lender of any of its rights under the Grantor's Guaranty, this Deed
of Trust and the other Loan Documents) to be a non-exempt (under a statutory or
administrative class exemption) prohibited transaction under the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"). Grantor shall
deliver to Lender such certifications or other evidence from time to time
throughout the term of this Deed of Trust, as requested by Lender in its sole
discretion, that (i) Grantor is not an "employee benefit plan" as defined in
Section 3(3) of ERISA, which is subject to Title I of ERISA, or a "governmental
plan" within the meaning of Section 3(32) of ERISA; (ii) Grantor is not subject
to state statutes regulating investments and fiduciary obligations with respect
to governmental plans; and (iii) one or more of the following circumstances is
true:

                           (1)      Equity interests in Grantor are publicly
         offered securities, within the meaning of 29 C.F.R. Section
         2510.3-101(b)(2);

                           (2)      Less than twenty-five percent (25%) of each
         outstanding class of equity interests in Grantor are held by "benefit
         plan investors" within the meaning of 29 C.F.R. Section
         2510.3-101(f)(2); or

                           (3)      Grantor qualifies as an "operating company"
         or a "real estate operating company" within the meaning of 29 C.F.R.
         Section 2510.3-101(c) or (e) or an investment company registered under
         The Investment Company Act of 1940.

         11.      MAINTENANCE OF PERMITS. Grantor shall obtain, keep and
constantly maintain in full force and effect during the entire term of this Deed
of Trust, all certificates, licenses and permits necessary to keep the Property
operating for the Existing Use and, except as specifically provided for in this
Deed of Trust, not to assign, transfer or in any manner change such
certificates, licenses or permits without first receiving the written consent of
Lender.

         12.      OBLIGATIONS OF GRANTOR AS LESSOR.

                  (a)      Grantor shall perform every obligation of Grantor (as
the landlord) and enforce every obligation of the tenant in any and every lease,
license or other occupancy agreement of or affecting the Property or any part
thereof (the "OCCUPANCY LEASES"), and not to modify, alter, waive or cancel any
such Occupancy Leases or any part thereof or rights thereunder, without the
prior written consent of Lender (but such consent shall not be required for such
action as to Occupancy Leases of three thousand (3,000) square feet or less if
such

                                                              Columbia, Maryland

                                       18

<PAGE>

action is in the ordinary course of business of owning and operating the
Property in a prudent and business-like manner, on then current market terms),
nor collect for more than thirty (30) days in advance of the date due any Rents
that may be collectible under any such Occupancy Leases and, except as provided
for in this Deed of Trust, not to assign any such Occupancy Lease(s) or any such
Rents relating thereto, to any party other than Lender, without the prior
written consent of Lender. Grantor will notify Lender in writing of any default
under any Occupancy Lease. In the event of default under any such Occupancy
Lease by reason of failure of Grantor to keep or perform one or more of the
covenants, agreements or conditions thereof, Lender is hereby authorized and
empowered, and may, at its sole option, remedy, remove or cure any such default,
and further, Lender may, at its sole option and in its sole discretion but
without obligation to do so, pay any sum of money deemed necessary by Lender for
the performance of said covenants, agreements and conditions, or for the curing
or removal of any such default, and incur all expenses and obligations which
Lender may consider necessary or reasonable in connection therewith, and Grantor
shall repay on demand all such sums so paid or advanced by Lender together with
interest thereon until paid at the lesser of either: (i) the highest rate of
interest then allowed by the Laws of the State, or, if controlling, the Laws of
the United States, or (ii) the then applicable interest rate of the Note plus
five hundred (500) basis points per annum; all of such sums, if unpaid, shall be
added to and become part of the Loan.

                  (b)      All such Occupancy Leases hereafter made shall be
subject to the approval of Lender and: (i) shall be at competitive market rental
rates then prevailing in the geographic area for projects used for the Existing
Use comparable to the Property; (ii) shall have lease terms of not less than
three years; and (iii) at Lender's option, shall be superior or subordinate in
all respects to the lien of this Deed of Trust. Provided, however, that Lender
shall not require approval in advance of any Occupancy Leases which conform to
the Grantor's Form Lease (as hereinafter defined) as previously approved by
Lender, except as set forth below. Neither the right nor the exercise of the
right herein granted unto Lender to keep or perform any such covenants,
agreements or conditions as aforesaid shall preclude Lender from exercising its
option to cause the whole Loan to become immediately due and payable by reason
of Grantor's default in keeping or performing any such covenants, agreements or
conditions.

                  (c)      Lender has approved a form of Occupancy Lease to be
used by Grantor in connection with the Property (the "FORM LEASE"). Grantor
shall not, without the prior written consent of Lender, modify or alter the Form
Lease in any material respect. In addition, Grantor shall not, without the prior
written consent of Lender, surrender, terminate, modify or alter, either orally
or in writing, any Occupancy Lease now existing or hereafter made with any Major
Tenant (as hereinafter defined) for all or part of the Property, permit an
assignment or sublease of any such Occupancy Lease, or request or consent to the
subordination of any Occupancy Lease to any lien subordinate to this Deed of
Trust. Grantor shall furnish Lender with copies of all executed Occupancy Leases
of all or any part of the

                                                              Columbia, Maryland

                                       19

<PAGE>

Property now existing or hereafter made, and Grantor shall assign to Lender
(which assignment shall be in form and content acceptable to Lender), as
additional security for the Grantor's Guaranty and the Loan, all Occupancy
Leases now existing or hereafter made for all or any part of the Property.

                  (d)      Notwithstanding the foregoing approval by Lender of
Grantor's Form Lease, Lender hereby specifically reserves the right to approve
all prospective tenants under all Occupancy Leases hereafter proposed to be made
if either: (i) the term thereof, excluding options to renew the same, exceeds
five years; or (ii) the net rentable area to be occupied thereunder, including
expansion options, exceeds ten percent (10%) of the net leasable area of each of
the buildings comprising the Improvements (the tenants under such leases being
hereinafter referred to as "MAJOR TENANTS"). Grantor shall notify Lender in
writing of all prospective Major Tenants, and shall deliver to Lender, at
Grantor's sole cost and expense, a copy of the prospective Major Tenant's
current financial statement and the most recent Dun & Bradstreet credit report
on said prospective Major Tenant. The financial statement delivered to Lender
hereunder shall be certified as true and correct by the Major Tenant, or, if
available, by a certified public accountant.

                  (e)      In no event shall Grantor exercise any right to
relocate any tenant outside the Property pursuant to any right set forth in an
Occupancy Lease without the prior written consent of Lender.

         13.      MAINTENANCE OF PARKING & ACCESS; PROHIBITION AGAINST
ALTERATION; SEPARATE TAX LOT.

                  (a)      Grantor shall construct, keep and constantly
maintain, as the case may be, all curbs, drives, parking areas and the number of
parking spaces heretofore approved by Lender, or heretofore or hereafter
required by any Laws or any governmental body, agency or authority having
jurisdiction over Grantor or the Property, and as required by the terms of the
Occupancy Leases, and not to alter, erect, build or construct upon any portion
of the Property, any building, structure or improvement of any kind whatsoever,
the erection, building or construction of which has not been previously approved
by Lender in writing, which approval shall be at the sole discretion of Lender.

                  (b)      Grantor shall cause the Property to remain separately
assessed for real estate tax purposes as a separate tax lot or lots.

         14.      EXECUTION OF ADDITIONAL DOCUMENTS. Grantor shall do, make,
execute, acknowledge, witness and deliver all deeds, conveyances, mortgages,
deeds of trust, assignments, estoppel certificates, subordination
non-disturbance and attornments, notices of assignments, transfers, assurances,
security agreements, financing statements and renewals thereof, and all other
instruments or other acts necessary, as Lender shall from time to time

                                                              Columbia, Maryland

                                       20

<PAGE>

require for the purpose of better assuring, conveying, assigning, transferring,
securing and confirming unto Lender the Property and rights hereby encumbered,
created, conveyed, assigned or intended now or hereafter so to be encumbered,
created, conveyed or assigned, or which Grantor may now be or may hereafter
become bound to encumber, create, convey or assign to Lender, or for the purpose
of carrying out the intention or facilitating the performance of the terms of
this Deed of Trust, or for filing, registering or recording this Deed of Trust,
and to pay all filing, registration or recording fees and all taxes, costs and
other expenses, including Reasonable Attorneys' Fees, incident to the
preparation, execution, acknowledgment, delivery and recordation of any of the
same. By signing this Deed of Trust, Grantor authorizes Lender to file such
financing statements, with or without the signature of Grantor, as Lender may
elect, as may be necessary or desirable to perfect the lien of Lender's security
interest in the Fixtures and Personal Property. Without limiting any other
provision herein, Grantor hereby authorizes Lender to file one or more financing
statements and any renewal or continuation statements thereof, describing the
Property and the proceeds of the Property, including, without limitation, a
financing statement covering "all assets of Grantor all proceeds therefrom, and
all rights and privileges with respect thereto." Grantor further authorizes
Lender to file, with or without any additional signature from Grantor, as Lender
may elect, such amendments and continuation statements as Lender may deem
necessary or desirable from time to time to perfect or continue the lien of
Lender's security interest in the Fixtures and Personal Property. Grantor hereby
ratifies any financing statements that may have been filed by Lender in advance
of the date hereof to perfect Lender's security interest in the Fixtures and
Personal Property.

         15.      AFTER-ACQUIRED PROPERTY SECURED. Grantor shall subject to the
lien of this Deed of Trust all right, title and interest of Grantor in and to
all extensions, improvements, betterments, renewals, substitutions and
replacements of, and all additions and appurtenances to, the Property
hereinabove described, hereafter acquired by or released to Grantor, or
constructed, assembled or placed by Grantor on the Real Property, and all
conversions of the security constituted thereby, immediately upon such
acquisition, release, construction, assembling, placement or conversion, as the
case may be, and in each such case, without any further mortgage, deed of trust,
encumbrance, conveyance, assignment or other act by Grantor, as fully,
completely and with the same effect as though now owned by Grantor and
specifically described herein, but at any and all times, Grantor will execute
and deliver to Lender any and all such further assurances, mortgages, deeds of
trust, conveyances, security agreements, financing statements or assignments
thereof or security interests therein as Lender may reasonably require for the
purpose of expressly and specifically subjecting the same to the lien of this
Deed of Trust.

         16.      PAYMENTS BY LENDER ON BEHALF OF GRANTOR. Grantor shall make
payment of any taxes, assessments or public charges on or with respect to the
Property before the same shall become delinquent, or to make payment of any
insurance premiums or other charges, impositions, or liens herein or elsewhere
required to be paid by Grantor, or if

                                                              Columbia, Maryland

                                       21

<PAGE>

Grantor shall fail so to do, then Lender, at its sole option, but without
obligation to do so, may make payment or payments of the same and also may
redeem the Property from tax sale without any obligation to inquire into the
validity of such taxes, assessments, charges, impositions or liens. In the case
of any such payment by Lender, Grantor agrees to reimburse Lender, upon demand
therefor, the amount of such payment and of any fees and expenses attendant in
making the same, together with interest thereon at the lesser of either: (a) the
highest rate of interest then allowed by the Laws of the State or, if
controlling, the Laws of the United States, or (b) the then applicable interest
rate of the Note plus five hundred (500) basis points per annum; and until paid
such amounts and interest shall be added to and become part of the Loan to the
same extent that this Deed of Trust secures the repayment of the Loan. In making
payments authorized by the provisions of this Section 16, Lender may do so
whenever, in Lender's sole judgment and discretion, such advance or advances are
necessary or desirable to protect the full security intended to be afforded by
this Deed of Trust. Neither the right nor the exercise of the rights herein
granted to Lender to make any such payments as aforesaid shall preclude Lender
from exercising its option to cause the Loan to become immediately due and
payable by reason of Grantor's default in making such payments as hereinabove
required.

         17.      FUNDS HELD BY LENDER FOR TAXES, ASSESSMENTS, INSURANCE
PREMIUMS, AND OTHER CHARGES. In order to more fully protect the security of this
Deed of Trust, Grantor shall deposit with Lender, together with and in addition
to each monthly payment due on account of the Loan, an amount equal to
one-twelfth (1/12th) of the annual total of such taxes, assessments, insurance
premiums and other charges (all as estimated by Lender in its sole discretion)
so that, at least thirty (30) days prior to the due date thereof, Lender shall
be able to pay in full all such taxes, assessments, insurance premiums and other
charges as the same shall become due. Lender may hold the sums so deposited
without paying interest, commingle same with its general funds and/or apply the
same to the payment of said taxes, assessments, insurance premiums or other
charges as they become due and payable. If at any time the funds so held by
Lender are insufficient to pay such taxes, assessments, insurance premiums or
other charges as they become due and payable, Grantor shall immediately, upon
Written Notice and demand by Lender, deposit with Lender the amount of such
deficiency. The failure on the part of Grantor to do so shall entitle Lender, at
Lender's sole option, to make such payments in accordance with the rights and
pursuant to the conditions elsewhere provided in this Deed of Trust. Grantor
hereby grants to Lender a security interest in all funds deposited with Lender,
and such funds are hereby pledged by Grantor to Lender for the purpose of
securing all indebtedness and obligations secured by this Deed of Trust.
Whenever any default exists under this Deed of Trust, Lender may, at Lender's
sole option but without an obligation so to do, apply any funds so held by
Lender pursuant to this Section 17 toward the payment of the Loan,
notwithstanding the fact that the amount owing thereon may not then be due and
payable or that the Loan may otherwise be adequately secured, in such order and
manner of application as Lender may elect.

                                                              Columbia, Maryland

                                       22

<PAGE>

         18.      CONDEMNATION; EMINENT DOMAIN. All claims and rights of action
for, and all awards and other compensation heretofore or hereafter made to
Grantor and all subsequent owners of the Property in any taking by eminent
domain, recovery for inverse condemnation or by deed in lieu thereof, whether
permanent or temporary, of all or any part of the Property or any easement or
any appurtenance thereto, including severance and consequential damages and
change in grade of any way, street, avenue, road, alley, passage or public
place, are hereby assigned to Lender. Grantor hereby irrevocably appoints Lender
as its attorney-in-fact, coupled with an interest, and authorizes, directs and
empowers Lender, at the option of Lender as said attorney-in-fact, on behalf of
Grantor, its successors and assigns, to adjust or compromise the claim for any
such award, and alone to collect and receive the proceeds thereof, to give
proper receipts and acquittances therefor and, after deducting any expenses of
collection, Lender shall at its sole option either:

                  (a)      apply the net proceeds as a credit upon any portion
of the Loan, as selected by Lender, notwithstanding the fact that the amount
owing thereon may not then be due and payable, or that the Loan is otherwise
adequately secured. In the event Lender applies such awards to the reduction of
the outstanding Loan guaranteed by the Grantor's Guaranty, such proceeds shall
be applied at par, and the monthly installments due and payable under the Note
shall be reduced accordingly as calculated by Lender; however no such
application shall serve to cure an existing default in the payment of the Note
or the Grantor's Guaranty; or

                  (b)      hold said proceeds without any allowance of interest,
and make the same available for restoration or rebuilding of the Improvements.
In the event that Lender makes said proceeds available to reimburse Grantor for
the cost of the restoration or rebuilding of the Improvements on the Real
Property, such proceeds shall be made available in the manner and under the same
conditions as required under Section 8 hereof. If the proceeds are made
available by Lender to reimburse Grantor for the cost of said restoration or
rebuilding, any surplus which may remain out of said award after payment of such
cost of restoration or rebuilding, shall be applied on account of the Loan at
par notwithstanding the fact that the amount owing thereon may not then be due
and payable or that the Loan may otherwise be adequately secured.

         In the event of a taking or condemnation, provided that Grantor is not
then in default hereunder beyond the expiration of applicable notice and cure
periods, then notwithstanding any provision of this Section 19 to the contrary,
Lender shall make condemnation proceeds available for restoration of the
Property to the extent required under the terms of the Borders Lease.

         Grantor further covenants and agrees to give Lender immediate notice of
the actual or threatened commencement of any proceedings under eminent domain,
and to deliver to Lender copies of any and all papers served in connection with
any such proceedings. Grantor further covenants and agrees to make, execute and
deliver to Lender, at any time or times, upon

                                                              Columbia, Maryland

                                       23

<PAGE>

request, free, clear and discharged of any encumbrance of any kind whatsoever,
any and all further assignments and/or other instruments deemed necessary by
Lender for the purpose of validly and sufficiently assigning all such awards and
other compensation heretofore or hereafter made to Lender (including the
assignment of any award from the United States government at any time after the
allowance of the claim therefor, the ascertainment of the amount thereof and the
issuance of the warrant for payment thereof).

         It shall be a default hereunder if either: (i) any part of any of the
Improvements situated on the Real Property shall be condemned by any
governmental authority having jurisdiction; or (ii) lands constituting a portion
of the Real Property shall be condemned by any governmental authority having
jurisdiction, such that the remaining Property is in violation of applicable
parking, zoning, platting, or other ordinances, or fails to comply with the
terms of the Occupancy Leases with Major Tenants. In either of said events,
Lender shall be entitled to exercise any or all remedies provided or referenced
in this Deed of Trust or the other Loan Documents, including the application of
condemnation proceeds to the outstanding principal balance of the Note at par,
and the right to accelerate the maturity date of the Note and require payment in
full without the imposition of a Prepayment Premium.

         19.      COSTS OF COLLECTION. In the event that the Note or the
Grantor's Guaranty is placed in the hands of an attorney for collection, or in
the event that Lender shall become a party either as plaintiff or as defendant,
in any action, suit, appeal or legal proceeding (including, without limitation,
foreclosure, condemnation, bankruptcy, administrative proceedings or any
proceeding wherein proof of claim is by law required to be filed), hearing,
motion or application before any court or administrative body in relation to the
Property or the lien and security interest granted or created hereby or herein,
or for the recovery or protection of the Loan or the Property, or for the
foreclosure of this Deed of Trust, or for the enforcement of the terms and
conditions of the Loan Documents, Grantor shall indemnify, save, defend and hold
Lender harmless from and against any and all Losses incurred by Lender on
account thereof, and Grantor shall repay, on demand, all such Losses, together
with interest thereon until paid at the lesser of either (a) the highest rate of
interest then allowed by the Laws of the State, or, if controlling, the Laws of
the United States, or (b) the then applicable rate of interest of the Note plus
five hundred (500) basis points per annum; all of which sums, if unpaid, shall
be added to and become a part of the Loan.

         20.      DEFAULT RATE. Any sums not paid when due, whether maturing by
lapse of time or by reason of acceleration under the provisions of the Note, the
Grantor's Guaranty, this Deed of Trust, or any of the other Loan Documents, and
whether principal, interest or money owing for advancements pursuant to the
terms of this Deed of Trust or any other Loan Document, shall bear interest
until paid at the lesser of either (a) the highest rate of interest then allowed
by the Laws of the State, or, if controlling, the Laws of the United States, or
(b) the then applicable rate of interest of the Note plus five hundred (500)
basis points per annum; all of which sums shall be added to and become a part of
the Loan.

                                                              Columbia, Maryland

                                       24

<PAGE>

         21.      SAVINGS CLAUSE. Notwithstanding any provisions in the Note,
the Grantor's Guaranty, or in this Deed of Trust to the contrary, the total
liability for payments in the nature of interest, including but not limited to
Prepayment Premiums, default interest and late payment charges, shall not exceed
the limits imposed by the Laws of the State or, if controlling, the Laws of the
United States, relating to maximum allowable charges of interest. Lender shall
not be entitled to receive, collect or apply, as interest on the Loan, any
amount in excess of the maximum lawful rate of interest permitted to be charged
by any Laws. In the event Lender ever receives, collects or applies as interest
any such excess, such amount which would be excessive interest shall be applied
to reduce the unpaid principal balance of the Loan evidenced by the Note and
guaranteed by the Grantor's Guaranty. If the unpaid principal balance of such
Loan has been paid in full, any remaining excess shall be forthwith returned to
Grantor.

         22.      BANKRUPTCY, REORGANIZATION OR ASSIGNMENT.

                  (a)      It shall be a default hereunder if Borrower or
Grantor or any general partner or managing member of Borrower or Grantor shall:
(a) elect to dissolve or liquidate its business organization or wind up its
business affairs without receiving the prior written approval of Lender; (b)
consent to the appointment of a receiver, trustee or liquidator of all or a
substantial part of its assets; (c) be adjudicated as bankrupt or insolvent, or
file a voluntary petition in bankruptcy, or admit in writing its inability to
pay its debts as they become due; (d) make a general assignment for the benefit
of creditors; (e) file a petition under or take advantage of any insolvency law;
(f) file an answer admitting the material allegations of a petition filed
against Borrower or Grantor or any general partner or managing member of
Borrower or Grantor in any bankruptcy, reorganization or insolvency proceeding,
or fail to cause the dismissal of such petition within thirty (30) days after
the filing of said petition; (g) take action for the purpose of effecting any of
the foregoing; or (h) if any order, judgment or decree shall be entered upon an
application of a creditor of Borrower or Grantor or any general partner or
managing member of Borrower or Grantor by a court of competent jurisdiction
approving a petition seeking appointment of a receiver or trustee of all or a
substantial part of Borrower's or Grantor's assets or any of Borrower's or
Grantor's general partner's or managing member's assets and such order, judgment
or decree shall continue unstayed and in effect for a period of thirty (30)
days.

                  (b)      Grantor covenants and agrees that it has not and
shall not:

                           (i)      engage in any business or activity other
         than the acquisition, ownership, operation and maintenance of the
         Property, and activities incidental thereto;

                           (ii)     acquire or own any material asset other than
         (1) the Property, and (2) such incidental Fixtures and Personal
         Property as may be necessary for the operation of the Property;

                                                              Columbia, Maryland

                                       25

<PAGE>

                           (iii)    merge into or consolidate with any person or
         entity or dissolve, terminate or liquidate in whole or in part,
         transfer or otherwise dispose of all or substantially all of its assets
         or change its legal structure, without in each case Lender's consent;

                           (iv)     fail to preserve its existence as an entity
         duly organized, validly existing and in good standing under the laws of
         the jurisdiction of its organization or formation, or without the prior
         written consent of Lender, amend, modify, terminate or fail to comply
         with the provisions of Grantor's Governing Documents (as hereafter
         defined);

                           (v)      own any subsidiary or make any investment in
         or acquire the obligations or securities of any other person or entity
         without the consent of Lender;

                           (vi)     commingle its assets with the assets of any
         of its partner, members, shareholders, affiliates, or of any other
         person or entity or transfer any assets to any such person or entity
         other than distributions on account of equity interests in the Grantor
         permitted hereunder and properly accounted for;

                           (vii)    incur any debt, secured or unsecured, direct
         or contingent (including guaranteeing any obligation, other than the
         Loan and the Affiliate Loans), other than the Loan, except unsecured
         trade and operational debt incurred with trade creditors in the
         ordinary course of its business of owning and operating the Property in
         such amounts as are normal and reasonable under the circumstances,
         provided that such debt is not evidenced by a note and is paid when due
         and provided in any event the outstanding principal balance of such
         debt shall not exceed at any one time 1% of the outstanding Loan.
         Grantor shall not be deemed in default of the foregoing restrictions by
         virtue of any guaranty delivered by Grantor with respect to the
         Affiliate Loans;

                           (viii)   allow any person or entity to pay its debts
         and liabilities (except the Borrower or a Guarantor - or in connection
         with the cross-default and cross collateralization of the Affiliate
         Loans) or fail to pay its debts and liabilities solely from its own
         assets;

                           (ix)     fail to maintain its records, books of
         account and bank accounts separate and apart from those of the
         shareholders, partners, members, principals and affiliates of Grantor,
         the affiliates of a shareholder, partner or member of Grantor, and any
         other person or entity or fail to prepare and maintain its own
         financial statements in accordance with generally accepted accounting
         principles and susceptible to audit, or if such financial statements
         are consolidated fail to cause such financial statements to contain
         footnotes disclosing that the Property is actually owned by the
         Grantor;

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                                       26

<PAGE>

                           (x)      enter into any contract or agreement with
         any shareholder, partner, member, principal or affiliate of Grantor,
         any guarantor of all or a portion of the Loan (a "GUARANTOR") or any
         shareholder, partner, member, principal or affiliate thereof, except
         upon terms and conditions that are intrinsically fair and substantially
         similar to those that would be available on an arms-length basis with
         third parties other than any shareholder, partner, member, principal or
         affiliate of Grantor or Guarantor, or any shareholder, partner, member,
         principal or affiliate thereof;

                           (xi)     seek dissolution or winding up, in whole or
         in part;

                           (xii)    fail to correct any known misunderstandings
         regarding the separate identity of Grantor;

                           (xiii)   hold itself out to be responsible or pledge
         its assets or credit worthiness for the debts of another person or
         entity or allow any person or entity to hold itself out to be
         responsible or pledge its assets or credit worthiness for the debts of
         the Grantor (except for a Guarantor);

                           (xiv)    make any Loan or advances to any third
         party, including any shareholder, partner, member, principal or
         affiliate of Grantor, or any shareholder, partner, member, principal or
         affiliate thereof, except as may be required in connection with the
         cross default and cross collateralization of the Affiliate Loans;

                           (xv)     fail to file its own tax returns, if
         required under applicable law, or to use separate contracts, purchase
         orders, stationary, invoices and checks, except that Grantor may file a
         consolidated tax return with Agree Limited Partnership for reporting
         purposes;

                           (xvi)    fail either to hold itself out to the public
         as a legal entity separate and distinct from any other entity or person
         or to conduct its business solely in its own name in order not (1) to
         mislead others as to the entity with which such other party is
         transacting business, or (2) to suggest that Grantor is responsible for
         the debts of any third party (including any shareholder, partner,
         member, principal or affiliate of Grantor, or any shareholder, partner,
         member, principal or affiliate thereof);

                           (xvii)   fail to allocate fairly and reasonably among
         Grantor and any third party (including, without limitation, any
         Guarantor) any overhead for common employees, shared office space or
         other overhead and administrative expenses;

                           (xviii)  allow any person or entity to pay the
         salaries of its own employees or fail to maintain a sufficient number
         of employees for its contemplated business operations;

                                                              Columbia, Maryland

                                       27

<PAGE>

                           (xix)    fail to maintain adequate capital for the
         normal obligations reasonably foreseeable in a business of its size and
         character and in light of its contemplated business operations;

                           (xx)     share any common logo with or hold itself
         out as or be considered as a department or division of (1) any
         shareholder, partner, principal, member or affiliate of Grantor, (2)
         any affiliate of a shareholder, partner, principal, member or affiliate
         of Grantor, or (3) any other person or entity or allow any person or
         entity to identify the Grantor as a department or division of that
         person or entity; or

                           (xxi)    conceal assets from any creditor, or enter
         into any transaction with the intent to hinder, delay or defraud
         creditors of the Grantor or the creditors of any other person or
         entity.

         23.      TIME IS OF THE ESSENCE; MONETARY AND NON-MONETARY DEFAULTS. It
is understood by Grantor that time is of the essence hereof in connection with
all obligations of Grantor herein, in the Grantor's Guaranty, the Assignment,
and any of the other Loan Documents.

         Lender, at its sole option, may declare the Loan, as well as all other
monies secured or evidenced hereby or by any of the other Loan Documents,
including, without limitation, all Prepayment Premiums (to the extent permitted
by the Laws of the State) and late payment charges, to be in default and
forthwith due and payable, in the event:

                           (1)      Borrower or Grantor defaults in the payment
         of any monthly installment of the Note or the Grantor's Guaranty,
         whether of principal or interest, or both, or in the payment of any
         other sums of money referred to herein or in the Note, Grantor's
         Guaranty, or in any of the other Loan Documents, or in any of the
         documents evidencing, guarantying, or securing the repayment of the
         Affiliate Loans, including, but not limited to, that certain Indemnity
         Deed of Trust and Security Agreement executed by the Grantor as a
         second priority lien on the Deed of Trust Property to secure its
         cross-default guaranty of the Affiliate Loans (collectively, the
         "AFFILIATE LOAN DOCUMENTS"), promptly and fully when the same shall be
         due, without notice or demand from Lender to Grantor in regard to such
         Monetary Default (as hereinafter defined), and any such Monetary
         Default remains uncured for a period of five (5) days after Written
         Notice thereof has been given by Lender to Grantor, unless Lender has
         previously given Grantor such Written Notice for a failure to pay in
         the then-current Loan Year (as defined in the Note), in which event no
         such notice need be given and no right to cure need be afforded Grantor
         as to any further Monetary Default during such Loan Year.

                                                              Columbia, Maryland

                                       28

<PAGE>

                           (2)      Borrower or Grantor breaches or defaults on
         any of the terms, covenants, conditions and agreements of the Note, the
         Grantor's Guaranty, this Deed of Trust, or any other Loan Documents or
         any of the Affiliate Loan Documents; or in the event that each and
         every one of said terms, covenants, conditions and agreements is not
         otherwise either duly, promptly and fully discharged or performed, and
         any such Non-Monetary Default (as hereinafter defined) remains uncured
         for a period of thirty (30) days after Written Notice thereof has been
         delivered from Lender to Grantor; unless such Non-Monetary Default
         cannot be cured within said thirty (30) day period, in which event
         Borrower or Grantor shall have a reasonable period of time to complete
         cure, provided that action to cure such Non-Monetary Default is
         promptly commenced within said thirty (30) day period, and Grantor is,
         in Lender's sole judgment, not diminishing or impairing the value of
         the Property, and is diligently pursuing a cure to completion, but in
         no event longer than ninety (90) days.

                           (3)      Any representation or warranty of Borrower
         or Grantor or their respective members, general partners, principals,
         affiliates, agents or employees, or of any Guarantor made herein or in
         or in any other Loan Document or any of the Affiliate Loan Documents,
         in any guaranty, or in any certificate, report, financial statement or
         other instrument or document furnished to Lender shall have been false
         or misleading in any material respect when made.

                           (4)      Any seizure or forfeiture of the Property,
         or any portion thereof, or Grantor's interest therein, resulting from
         criminal wrongdoing or other unlawful action of Grantor, its
         affiliates, or any tenant in the Property under any federal, state or
         local law.

                           (5)      If Grantor consummates a transaction which
         would cause this Deed of Trust or Lender's exercise of its rights under
         this Deed of Trust, the Note, the Grantor's Guaranty, or the other Loan
         Documents to constitute a nonexempt prohibited transaction under ERISA
         or result in a violation of a state statute regulating governmental
         plans, subjecting Lender to liability for a violation of ERISA or a
         state statute.

                           (6)      Any default occurs in the performance of any
         covenant or obligation of Borrower or Grantor or any other party under
         any indemnity or guaranty delivered to Lender in connection with the
         Loan and such default continues beyond the expiration of applicable
         notice and cure periods.

                           (7)      Any default occurs under the Affiliate Loans
         which default continues beyond the expiration of applicable notice and
         cure periods.

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                                       29

<PAGE>

         Upon the occurrence of any one of the above events, and at the option
of Lender, the principal of and the interest accrued on the Loan and all other
sums secured by this Deed of Trust and the other Loan Documents shall
immediately become due and payable as if all of said sums of money were
originally stipulated to be paid on such day. In addition, Lender may avail
itself of all rights and remedies provided by law or equity, and may foreclose
or prosecute a suit at law or in equity as if all monies secured hereby had
matured prior to its institution, anything in this Deed of Trust or any of the
other Loan Documents to the contrary notwithstanding. Lender shall have no
obligation to give Grantor notice of, or any period to cure, any Monetary
Default or any Incurable Default (as hereinafter defined) prior to exercising
its rights, powers, privileges and remedies.

         As used herein, the term "MONETARY DEFAULT" shall mean any default
which can be cured by the payment of money such as, but not limited to, the
payment of principal and interest due under the Note and Grantor's Guaranty, or
the payment of taxes, assessments and insurance premiums when due as provided in
this Deed of Trust. As used herein, the term "NON-MONETARY DEFAULT" shall mean
any default that is not a Monetary Default or an Incurable Default. As used
herein, the term "INCURABLE DEFAULT" shall mean either: (i) any voluntary or
involuntary sale, assignment, mortgaging, encumbering or transfer in violation
of the covenants contained herein or any of the other Loan Documents; or (ii) if
Borrower or Grantor, or any person or entity comprising Borrower or Grantor or
any guarantor or indemnitor of the Loan, should breach any of the provisions of
Section 22.

         24.      FORECLOSURE. Upon the occurrence of a default hereunder,
Lender may institute an action to foreclose this Deed of Trust as to the amount
so declared due and payable, and thereupon the Property (or any portion thereof)
shall be sold according to law to satisfy and pay the same, together with all
costs, expenses and allowances thereof, including, without limitation,
Reasonable Attorneys' Fees. The Property may be sold in one parcel, several
parcels or groups of parcels, and Lender shall be entitled to bid at the sale,
and, if Lender is the highest bidder for the Property or any part or parts
thereof, Lender shall be entitled to purchase the same. The failure or omission
on the part of Lender to exercise the option for acceleration of maturity of the
Note and foreclosure of this Deed of Trust following any default as aforesaid or
to exercise any other option or remedy granted hereunder to Lender when entitled
to do so in any one or more instances, or the acceptance by Lender of partial
payment of the Loan, whether before or subsequent to Grantor's default
hereunder, shall not constitute a waiver of any such default or the right to
exercise any such option or remedy, but such option or remedy shall remain
continuously in force. Acceleration of the maturity of the Note, once claimed
hereunder by Lender, at the option of Lender, may be rescinded by written
acknowledgment to that effect by Lender, but the tender and acceptance of
partial payments alone shall not in any way either affect or rescind such
acceleration of maturity, nor act as a waiver, accord and satisfaction,
modification, novation or similar defense.

                                                              Columbia, Maryland

                                       30

<PAGE>
         25.      UCC REMEDIES.

                  (a)      This Deed of Trust constitutes a Security
Agreement under the UCC with respect to any part of the Property that may or
might now or hereafter be or be deemed to be personal property, fixtures or
property other than real estate, and the following provisions of this section
shall not limit the generality or applicability of any other provision of this
Deed of Trust but shall be in addition thereto:

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

                           (2)      The terms and provisions contained in this
         section and in Section 25(b) of this Deed of Trust shall, unless the
         context otherwise requires, have the meanings and be construed as
         provided in the UCC;

                           (3)      This Deed of Trust constitutes a security
         agreement and financing statement under the UCC with respect to the
         Property. As such, this Deed of Trust covers any portion of the
         Property that is personal property including all items which are to
         become fixtures. Borrower is the "Debtor" and Lender is the "Secured
         Party" (as those terms are defined and used in the UCC) insofar as this
         Deed of Trust constitutes a financing statement.

                  (b) Upon the occurrence of a default, Lender may exercise its
rights of enforcement with respect to the Fixtures and Personal Property under
the UCC, and in conjunction with, in addition to or in substitution for those
rights and remedies:

                           (1)      Written Notice mailed to Grantor as provided
         herein ten (10) days prior to the date of public sale of the Fixtures
         and Personal Property or prior to the date after which private sale of
         the Fixtures and Personal Property will be made shall constitute
         reasonable notice;

                           (2)      any sale made pursuant to the provisions of
         this Section shall be deemed to have been a public sale conducted in a
         commercially reasonable manner if held contemporaneously with the sale
         of the Deed of Trust Property under power of sale as provided herein
         upon giving the same notice with respect to the sale of the

                                                              Columbia, Maryland

                                       31

<PAGE>

         Fixtures and Personal Property hereunder as is required for such sale
         of the Deed of Trust Property under power of sale;

                           (3)      in the event of a foreclosure sale, whether
         made under the terms hereof, or under judgment of a court, the Fixtures
         and Personal Property and the Deed of Trust Property may, at the option
         of Lender, be sold as a whole;

                           (4)      it shall not be necessary that Lender take
         possession of the Fixtures and Personal Property or any part thereof
         prior to the time that any sale pursuant to the provisions of this
         Section is conducted and it shall not be necessary that the Fixtures
         and Personal Property or any part thereof be present at the location of
         such sale;

                           (5)      prior to application of proceeds of
         disposition of the Fixtures and Personal Property to the secured
         indebtedness, such proceeds shall be applied to the reasonable expenses
         of retaking, holding, preparing for sale or lease, selling, leasing and
         the like and the Reasonable Attorneys' Fees and other legal expenses
         incurred by Lender;

                           (6)      any and all statements of fact or other
         recitals made in any bill of sale or assignment or other instrument
         evidencing any foreclosure sale hereunder as to nonpayment of the
         indebtedness or as to the occurrence of any default, or as to Lender
         having declared all of such indebtedness to be due and payable, or as
         to notice of time, place and terms of sale and of the properties to be
         sold having been duly given, or as to any other act or thing having
         been duly done by Lender, shall be taken as prima facie evidence of the
         truth of the facts so stated and recited;

                           (7)      Lender may appoint or delegate any one or
         more persons as agent to perform any act or acts necessary or incident
         to any sale held by Lender, including the sending of notices and the
         conduct of the sale, but in the name and on behalf of Lender; and

                           (8)      this Deed of Trust covers Goods which are or
         are to become Fixtures related to the Real Property, and covers
         As-Extracted Collateral related to the Real Property. A carbon,
         photographic or other reproduction of this Deed of Trust or of any
         financing statement relating to this Deed of Trust shall be sufficient
         as a financing statement. This Deed of Trust shall be effective as a
         financing statement filed as a fixture filing with respect to all
         fixtures included within the Property and is to be filed for record in
         the real estate records in the Office of the County Clerk where the
         Property (including said fixtures) is situated. This Deed of Trust
         shall also be effective as a financing statement As-Extracted
         Collateral with respect to all As-Extracted Collateral included within
         the Real Property (including, without limitation, all oil, gas,

                                                              Columbia, Maryland

                                       32

<PAGE>

         other minerals, and other substances of value which may be extracted
         from the earth and all accounts arising out of the sale at the wellhead
         or minehead thereof), and is to be filed for record in the real estate
         records of the county where the Property is situated. The mailing
         address of Grantor is set forth in Section 43 of this Deed of Trust and
         the address of Lender from which information concerning the security
         interest may be obtained is the address of Lender set forth in Section
         43 of this Deed of Trust.

         26.      PROTECTION OF LENDER'S SECURITY. At any time after default
hereunder, Lender, or Lender's agents or contractors, is authorized, without
notice and in Lender's sole discretion, to enter upon and take possession of the
Property or any part thereof, and to perform any acts which Lender deems
necessary or proper to conserve the security interest herein intended to be
provided by the Property, to operate any business or businesses conducted
thereon, and to collect and receive all Rents thereof and therefrom, including
those past due as well as those accruing thereafter.

         27.      APPOINTMENT OF RECEIVER. If, at any time after a default
hereunder, Lender deems, in Lender's sole discretion, that a receivership may be
necessary to protect the Property or its Rents, whether before or after maturity
of the Note and whether before or at the time of or after the institution of
foreclosure or suit to collect the Loan or to enforce this Deed of Trust or any
of the other Loan Documents, Lender, as a matter of strict right and regardless
of the value of the Property or the amounts due hereunder or secured hereby, or
of the solvency of any party bound for the payment of such indebtedness, shall
have the right, upon ex parte application and without notice to anyone, and by
any court having jurisdiction, to the appointment of a receiver to take charge
of, manage, preserve, protect and operate the Property, to collect the Rents
thereof, to make all necessary and needful repairs, and to pay all taxes,
assessments, insurance premiums and other such charges against and expenses of
the Property, and to do such other acts as may by such court be authorized and
directed, and after payment of the expenses of the receivership and the
management of the Property, to apply the net proceeds of such receivership in
reduction of the Loan or in such other manner as the said court shall direct
notwithstanding the fact that the amount owing thereon may not then be due and
payable or the said Loan is otherwise adequately secured. Such receivership
shall, at the option of Lender, continue until full payment of all sums hereby
secured or until title to the Property shall have passed by sale under this Deed
of Trust. Grantor hereby specifically waives its right to object to the
appointment of a receiver as aforesaid, and hereby expressly agrees that such
appointment shall be made as an admitted equity and as a matter of absolute
right to Lender.

         28.      RIGHTS AND REMEDIES CUMULATIVE; FORBEARANCE NOT A WAIVER. The
rights and remedies herein provided are cumulative, and Lender, as the holder of
the Note and the Grantor's Guaranty and of every other obligation secured
hereby, may recover judgment thereon, issue execution therefor and resort to
every other right or remedy available at law or in equity, without first
exhausting any right or remedy available to

                                                              Columbia, Maryland

                                       33

<PAGE>

Lender and without affecting or impairing the security of any right or remedy
afforded hereby, and no enumeration of special rights or powers by any
provisions hereof shall be construed to limit any grant of general rights or
powers, or to take away or limit any and all rights granted to or vested in
Lender by law or equity. Grantor further agrees that no delay or omission on the
part of Lender to exercise any rights or powers accruing to it hereunder shall
impair any such right or power, or shall be construed to be a waiver of any such
default hereunder or an acquiescence therein; and every right, power and remedy
granted herein or by law or equity to Lender may be exercised from time to time
as often as Lender deems expedient.

         Lender may resort to any security given by this Deed of Trust or to any
other security now existing or hereafter given to secure the payment of the
Loan, in whole or in part, and in such portions and in such order as may seem
best to Lender in its sole discretion, and any such action shall not be
considered as a waiver of any of the rights, benefits, liens or security
interests evidenced by this Deed of Trust. To the full extent Grantor may do so,
Grantor agrees that Grantor will not at any time insist upon, plead, claim or
take the benefit or advantage of any law now or hereafter in force pertaining to
the rights and remedies of sureties or providing for any appraisement,
valuation, stay, extension or redemption, and Grantor, for Grantor and Grantor's
heirs, devisees, representatives, successors and assigns, and for any and all
persons ever claiming any interest in the Property, to the extent permitted by
law, hereby waives and releases all rights of redemption, valuation,
appraisement, stay of execution, notice of intention to mature or declare due
the whole of the secured indebtedness, notice of election to mature or declare
due the whole of the secured indebtedness and all rights to a marshaling of the
assets of Grantor, including the Property, or to a sale in inverse order of
alienation in the event of foreclosure of the liens and security interests
hereby created. Grantor shall not have or assert any right under any statute or
rule of law pertaining to the marshaling of assets, sale in inverse order of
alienation, the exemption of homestead, the administration of estates of
decedents or other matters whatever to defeat, reduce or affect the right of
Lender under the terms of this Deed of Trust to a sale of the Property for the
collection of the secured indebtedness without any prior or different resort for
collection, or the right of Lender under the terms of this Deed of Trust to the
payment of such indebtedness out of the proceeds of sale of the Property in
preference to every other claimant whatever. If any law referred to in this
Section and now in force, of which Grantor or Grantor's heirs, devisees,
representatives, successors and assigns and such other persons claiming any
interest in the Property might take advantage despite this Section, shall
hereafter be repealed or cease to be in force, such law shall not thereafter be
deemed to preclude the application of this Section.

         29.      MODIFICATION NOT AN IMPAIRMENT OF SECURITY. Lender, without
notice and without regard to the consideration, if any, paid therefor, and
notwithstanding the existence at that time of any inferior mortgages, deeds of
trust, or other liens thereon, may release any part of the security described
herein, or may release any person or entity liable for the Loan without in any
way affecting the priority of this Deed of Trust, to the full extent of the Loan
remaining unpaid hereunder, upon any part of the security not

                                                              Columbia, Maryland

                                       34

<PAGE>

expressly released. Lender may, at its option and within Lender's sole
discretion, also agree with any party obligated on the Loan, or having any
interest in the security described herein, to extend the time for payment of any
part or all of the Loan, and such agreement shall not, in any way, release or
impair this Deed of Trust, but shall extend the same as against the title of all
parties having any interest in said security, which interest is subject to this
Deed of Trust.

         30.      PROPERTY MANAGEMENT AND LEASING. The exclusive manager of the
Property shall be Grantor, or such other manager as may be first approved in
writing by Lender. The exclusive leasing agent of the Property, if other than
Grantor or the foregoing party, shall be first approved in writing by Lender.
The management and leasing contracts (or in the absence of any such written
contract, a letter so stating and further identifying the name of the person or
entity charged with the responsibility for managing and/or leasing the Property)
shall be subordinate to this Deed of Trust, and satisfactory to and subject to
the prior written approval of Lender throughout the term of the Loan. Upon
default in either of these requirements, then the whole of the Loan hereby
secured shall, at the election of Lender, become immediately due and payable,
together with any Prepayment Premium, late payment charges and all other sums
required by the Note or the other Loan Documents, and Lender shall be entitled
to exercise any or all remedies provided for or referenced in this Deed of
Trust.

         31.      MODIFICATION NOT A WAIVER. In the event Lender (a) releases,
as aforesaid, any part of the security described herein or any person or entity
liable for the Loan; (b) grants an extension of time for the payment of the
Note; (c) takes other or additional security for the payment of the Note or the
Grantor's Guaranty; or (d) waives or fails to exercise any rights granted
herein, in the Note or the Grantor's Guaranty, or any of the other Loan
Documents, any said act or omission shall not release Grantor, subsequent
purchasers of the Property or any part thereof, or makers, sureties, endorsers
or guarantors of the Note, if any, from any obligation or any covenant of this
Deed of Trust, the Note, the Grantor's Guaranty, or any of the other Loan
Documents, nor preclude Lender from exercising any right, power or privilege
herein granted or intended to be granted in the event of any other default then
made, or any subsequent default.

         32.      TRANSFER OF PROPERTY OR CONTROLLING INTEREST IN BORROWER OR
GRANTOR; ASSUMPTION. Except as set forth in Section 38(b) hereof, without the
prior written consent of Lender, the sale, transfer, assignment or conveyance of
all or any portion of the Property, or the transfer, assignment or conveyance of
a controlling interest in Borrower or Grantor or their respective general
partners or managing members, or any guarantor, whether voluntary or by
operation of law, without the prior written consent of Lender, shall constitute
a default hereunder, and entitle Lender, at Lender's sole option, to accelerate
all sums due on the Note and the Grantor's Guaranty, together with any
Prepayment Premiums (to the extent permitted by the Laws of the State), late
payment charges or any other amounts secured hereby. Lender may, however, elect
to waive the option to

                                                              Columbia, Maryland

                                       35

<PAGE>

accelerate granted hereunder if, prior to any such sale, transfer, assignment or
conveyance of the Property, the following conditions shall be fully satisfied:
(a) Lender acknowledges in writing that, in Lender's sole discretion, the
creditworthiness of the proposed transferee and the ability and experience of
the proposed transferee to operate the Property are satisfactory to Lender, (b)
Lender and the proposed transferee shall enter into an agreement in writing that
(i) the rate of interest payable on the Loan shall be at such rate as Lender
shall determine, (ii) the repayment schedule as set forth in the Note shall be
modified by Lender, in Lender's sole discretion, to initiate amortization or
modify the existing amortization schedule in order to amortize the then
remaining unpaid principal balance of the Note over a period of time as
determined by Lender, in Lender's sole discretion, without a change in the
maturity date of the Note, and (iii) the proposed transferee shall assume all
obligations of Borrower and Grantor under the Note, the Grantor's Guaranty, this
Deed of Trust and the other Loan Documents in writing and an assumption fee, to
be determined by Lender in Lender's sole discretion, may be charged by Lender;
(c) Lender shall receive, for Lender's review and approval, copies of all
transfer documents; and (d) Grantor or the transferee shall pay all costs and
expenses in connection with such transfer and assumption, including, without
limitation, all fees and expenses incurred by Lender.

         Grantor, or any subsequent owner of the Property or any portion
thereof, shall do all things necessary to preserve and keep in full force and
effect its and their legal existence, franchises, rights and privileges as a
corporation, partnership or limited liability company, as the case may be, under
the laws of the State of its formation and its right to own property and
transact business in the State. It shall be a default hereunder if Grantor, or
any subsequent owner of the Property or any portion thereof, shall amend,
modify, transfer, assign or terminate the applicable governing documents for
such entity, including its partnership agreement, certificate of partnership,
operating agreement, articles of organization, regulations, articles of
incorporation or bylaws, as the case may be (as applicable, the "GOVERNING
DOCUMENTS"), of Grantor or such subsequent owner without the prior written
consent of Lender. Grantor, or such subsequent owner of the Property, shall
provide Lender with copies of any proposed amendment to its applicable Governing
Documents, so that Lender may, in Lender's sole discretion, determine whether
such amendment adversely affects Lender, the Property or the security value
thereof. Provided, however, that any amendment, modification, transfer,
assignment or termination of Grantor's applicable Governing Documents or any
other action pursuant to which the current general partner or managing member of
Grantor shall either: (i) cease to be the general partner or managing member of
Grantor; or (ii) except to the extent permitted herein, cease to own or maintain
a partnership or membership interest in Grantor equal to or greater than its
partnership or membership interest at the time this Deed of Trust is executed,
shall be deemed to have a material adverse effect upon Lender and the Property,
and shall be a default hereunder.

         Grantor shall not change its name or identity in any manner which may
make any financing or continuation statement filed in connection with the Loan
seriously misleading

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<PAGE>

within the meaning of the UCC enacted in the State or change its jurisdiction of
organization unless Grantor shall have delivered to Lender written notice
thereof not less than 30 days before the effective date of such change and shall
have taken all action which Lender determines to be reasonably necessary or
desirable to confirm and protect Lender's security interests and rights under
this Deed of Trust and the perfection and priority thereof. Grantor will not
change its principal places of business unless it shall have given Lender prior
written notice of its intent to do so not less than thirty (30) days in advance
of the effective date of such change. Grantor shall bear all costs incurred by
Lender in connection with any such change including, without limitation,
Reasonable Attorney's Fees.

         In the event the ownership of the Property, or any part thereof, shall
become vested in a person or entity other than Grantor, whether with or without
the prior written consent of Lender, Lender may, without notice to Grantor, deal
with such successor or successors in interest with reference to the Property,
this Deed of Trust and the other Loan Documents, in the same manner and to the
same extent as with Grantor without in any way vitiating or discharging
Grantor's liability hereunder or under any of the Loan Documents. No sale,
transfer or conveyance of the Property, no forbearance on the part of Lender and
no extension of time given by Lender to Grantor for the payment of the Note and
the Grantor's Guaranty shall operate to release, discharge, modify, change or
affect the original liability of Grantor, either in whole or in part, unless
expressly set forth in writing executed by Lender. Notwithstanding anything
contained herein to the contrary, Grantor hereby waives any right it now has or
may hereafter have to require Lender to prove an impairment of its security as a
condition to the exercise of Lender's rights under this Section 32.

         A sale, transfer, assignment or conveyance within the meaning of this
Section shall be deemed to include, but not be limited to, (a) an installment
sales agreement wherein Grantor agrees to sell the Property or any part thereof
for a price to be paid in installments; (b) an agreement by Grantor leasing all
or a substantial part of the Property for other than actual occupancy by a
tenant under an Occupancy Lease or a sale, assignment or other transfer of, or
the grant of a security interest in, Grantor's right, title and interest in and
to any leases or any Rents; (c) if Grantor, any guarantor, any indemnitor, or
any general partner or managing member of Grantor, is a corporation, the
voluntary or involuntary sale, conveyance, transfer or pledge of such
corporation's stock (or the stock of any corporation directly or indirectly
controlling such corporation by operation of law or otherwise), or the creation
or issuance of new stock by which an aggregate of more than ten percent (10%) of
such corporation's stock shall be vested in a party or parties who are not now
stockholders; and (d) if Grantor, any guarantor, indemnitor, or any general
partner or managing member of Grantor, is a limited partnership, general
partnership, limited liability partnership, limited liability company, or joint
venture, the change, removal or resignation of a general partner, managing
partner, or member, or the transfer or pledge of the interest of any general
partner, managing partner, or member or any profits or proceeds relating to such
interest. Nothing in this Deed of Trust shall be construed to limit or restrict
the transfer of shares of Agree Realty Corporation.

                                                              Columbia, Maryland

                                       37

<PAGE>

         Notwithstanding anything contained in this Section 32 to the contrary,
as long as no default, or event which, with notice or the passage of time or
both, could result in a default, has occurred hereunder, under the Note, the
Grantor's Guaranty, or any of the other Loan Documents, Lender shall permit one
(1) bona fide arm's length transfer of the Property to another borrowing entity
without a change in the terms of the Loan; provided, however, that no such
transfer shall be valid or permitted hereunder unless: (i) Lender receives prior
Written Notice of such proposed transfer; (ii) such proposed transferee and any
substitute guarantor has been approved in writing by Lender (taking into
consideration such factors as transferee's creditworthiness, business
experience, financial condition and managerial capabilities); (iii) the
transferee's (and its sole general partner's or managing member's) single
purpose and bankruptcy remote character are satisfactory to Lender in its sole
discretion; (iv) Lender has obtained such other legal opinions regarding
substantive consolidation issues, enforceability of the assumption documents, no
adverse impact on the Securities or any REMIC holding the Note and the Grantor's
Guaranty and similar matters as Lender may require, (v) the execution and
delivery to Lender of a written assumption agreement covering the Note, the
Grantor's Guaranty, this Deed of Trust, and the other Loan Documents and/or
substitute guaranty (in Lender's sole and absolute discretion) and such
modifications to the Loan Documents executed by such parties and containing such
terms and conditions as Lender may require in its sole and absolute discretion
prior to such sale or transfer (provided that in the event the Loan is included
in a REMIC and are performing Loan, no modification to the terms and conditions
shall be made or permitted that would cause (A) any adverse tax consequences to
the REMIC or any holders of any Deed of Trust-Backed Pass-Through Securities,
(B) this Deed of Trust to fail to be a Qualifying Security Instrument under
applicable federal law relating to REMIC's, or (C) result in a taxation of the
income from the Loan to the REMIC or cause a loss of REMIC status), (vi) if
applicable, the delivery to Lender of an endorsement (at Grantor's sole cost and
expense) to Lender's policy of title insurance then insuring the lien created by
this Deed of Trust in form and substance acceptable to Lender in its sole
judgment; (vii) Lender is paid a cash assumption fee in accordance with the
following schedule: Two percent (2%) of the then outstanding principal balance
of the Note if such outstanding principal balance is less than or equal to Three
Million Dollars ($3,000,000.00), one and one-half percent (1 1/2%) of the then
outstanding principal balance of the Note if such outstanding principal balance
is in excess of Three Million Dollars ($3,000,000.00); (viii) Grantor pays all
fees and expenses incurred by Lender in connection with such transfer and
assumption, including, without limitation, inspection and investigation fees,
title insurance charges, and Reasonable Attorneys' Fees; (ix) Lender approves
the management agreement and leasing agreement, and the management and leasing
company to be employed by the proposed transferee; and (x) the transferee is
simultaneously purchasing each of the Properties which secure the Affiliate
Loans, to the extent such Affiliate Loans remain outstanding. Any transfer of
all or any portion of the Property which does not strictly comply with the terms
and conditions of the foregoing shall be a default hereunder, and shall entitle
Lender to exercise all rights and remedies provided in this

                                                              Columbia, Maryland

                                       38

<PAGE>

Deed of Trust and the other Loan Documents. This one-time right of transfer
shall apply to the Grantor named herein and not to any subsequent owner of the
Property.

         33.      FURTHER ENCUMBRANCE PROHIBITED; SUBROGATION. So long as the
Note and the Grantor's Guaranty remain unpaid, Grantor shall not, either
voluntarily or involuntarily, permit the Property or any part thereof to become
subject to any secondary or subordinate lien, mortgage, deed of trust, security
interest or encumbrance of any kind whatsoever without the prior written consent
of Lender, and the imposition of any such secondary lien, mortgage, deed of
trust, security interest or encumbrance without the approval of Lender shall
constitute a default hereunder, and entitle Lender, at Lender's sole option, to
declare the outstanding principal balance of the Note, all accrued and unpaid
interest thereon, Prepayment Premiums (to the extent permitted by the laws of
the State, late payment charges and any other amounts secured hereby to be and
become immediately due and payable in full. In the event that Lender shall
hereafter give its written consent to the imposition of any such secondary lien,
mortgage, deed of trust, security interest or other encumbrance upon the
Property, Lender, at Lender's sole option, shall be entitled to accelerate the
maturity of the Note and the Grantor's Guaranty and exercise any and all
remedies provided and available to Lender hereunder and in the other Loan
Documents in the event that the holder of any such secondary lien or encumbrance
shall institute foreclosure or other proceedings to enforce the same; it being
understood and agreed that a default under any instrument or document
evidencing, securing or secured by any such secondary lien or encumbrance shall
be and constitute a default hereunder. In the event all or any portion of the
proceeds of the Loan are used for the purpose of retiring debt or debts secured
by prior liens on the Property, Lender shall be subrogated to the rights and
lien priority of the holder or holders of the lien or liens so discharged.

         34.      CONVEYANCE OF MINERAL RIGHTS PROHIBITED. Grantor agrees that
the making of any oil, gas or mineral lease, or the sale or conveyance of any
mineral interest or right to explore for minerals under, through or upon the
Property, would impair the value of the Property, and that Grantor shall have no
right, power or authority to lease the Property, or any part thereof, for oil,
gas or other mineral purposes, or to grant, assign or convey any mineral
interest of any nature, or the right to explore for oil, gas and other minerals,
without first obtaining Lender's express written permission therefor, which
permission shall not be valid until recorded among the Land Records of the
county in which the Property is located. Grantor further agrees that if Grantor
shall make, execute, or enter into any such lease or attempt to grant any such
mineral rights without such prior written permission of Lender, then Lender
shall have the option, without notice, to declare the same to be a default
hereunder, and to declare the Loan immediately due and payable in full. Whether
or not Lender shall consent to such lease or grant of mineral rights, Lender
shall receive the entire consideration to be paid for any such lease or grant of
mineral rights, with the same to be applied to the Loan notwithstanding the fact
that the amount owing thereon may not then be due and payable or that the Loan
is otherwise adequately secured; provided, however, that the

                                                              Columbia, Maryland

                                       39

<PAGE>

acceptance of such consideration shall in no way impair the lien of this Deed of
Trust on the Property or cure any existing Monetary Default.

         35.      ESTOPPEL CERTIFICATION BY GRANTOR. Grantor, upon request of
Lender therefor made either personally or by mail, shall certify in writing to
Lender (or any party designated by Lender), in a form satisfactory to Lender or
such designee, the amount of principal and interest then outstanding under the
terms of the Note and the Grantor's Guaranty and any other sums due and owing
under this Deed of Trust or any of the other Loan Documents, and whether any
offsets or defenses exist against the Loan. Such certification shall be made by
Grantor within ten (10) days if the request is made personally, or within twenty
(20) days if the request is made by mail.

         36.      CROSS-DEFAULT. The Note is also secured by the terms,
conditions and provisions of the Assignment, by three Cross-Default Guaranty
Agreements of even date herewith from Agree - Milestone Center Project, L.L.C.,
a Delaware limited liability company, as guarantor for a loan made by Lender to
Agree-Milestone, Omaha, and Oklahoma City, respectively in favor of Lender
(hereinafter individually or collectively referred to as the "AFFILIATED-GRANTOR
CROSS-DEFAULT GUARANTYS") and, additionally, may be secured by contracts or
agreements of guaranty or other security instruments. The terms, covenants,
conditions and agreements of each security instrument shall be considered a part
hereof as fully as if set forth herein verbatim. Any default under this Deed of
Trust, any Affiliated Grantor Cross-Default Guaranty or any of the other Loan
Documents shall constitute a default hereunder and under each of the other Loan
Documents. Notwithstanding the foregoing, the enforcement or attempted
enforcement of this Deed of Trust or any of the other Loan Documents now or
hereafter held by Lender shall not prejudice or in any manner affect the right
of Lender to enforce any other Loan Document; it being understood and agreed
that Lender shall be entitled to enforce this Deed of Trust and any of the other
Loan Documents now or hereafter held by it in such order and manner as Lender,
in its sole discretion, shall determine.

         37.      EXAMINATION OF GRANTOR'S RECORDS. Grantor will maintain
complete and accurate books and records showing in detail the income and
expenses of the Property, and will permit Lender and its agents, contractors or
representatives to examine said books and records and all supporting vouchers
and data during normal business hours and from time to time upon request by
Lender, in such place as such books and records are customarily kept. Grantor
will furnish to Lender, within one hundred twenty (120) days after the close of
each respective fiscal period annual and quarterly financial statements (income
statements and a balance sheet) for the Grantor and the Property. Grantor will
furnish to Lender on or before 45 calendar days after the end of each calendar
quarter the following items, each certified by Grantor as being true and
correct, in such format and in such detail as Lender or its servicer may
request: (a) a written statement (rent roll) dated as of the last day of each
such calendar quarter identifying each of the Occupancy Leases by the term,
space occupied, rental required

                                                              Columbia, Maryland

                                       40

<PAGE>

to be paid (including percentage rents and tenant sales), security deposit paid,
any rental concessions, all rent escalations, any rents paid more than one month
in advance, any special provisions or inducements granted to tenants, any taxes,
maintenance and other common charges paid by tenants, all vacancies and
identifying any defaults or payment delinquencies thereunder; and (b) quarterly
and year-to-date operating statements prepared for each calendar quarter during
each such reporting period detailing the total revenues received, total expenses
incurred, total cost of all capital improvements, total debt service and total
cash flow. These statements shall be in form acceptable to Lender and its
servicer, shall be prepared in accordance with generally accepted accounting
principles, and shall include a rent roll, certified as true and correct by
Grantor. The statements shall show in detail all income derived from and
expenses incurred in connection with the ownership of the Property, including
current annual sales figures for all Major Tenants of the Property if required
under the Major Tenant leases or if such financial information is otherwise
available. Grantor shall deliver to Lender, for Grantor, or any entity with whom
Grantor's tax return is consolidated, copies of all income tax returns, requests
for extension and other similar items contemporaneously with its delivery of
same to the Internal Revenue Service. In the event Grantor fails to provide such
statements to Lender within the time prescribed above, Grantor shall pay Lender
the sum of $200.00 in administrative expenses for each successive month for
which the statements are delinquent (or in the case of such statements to be
delivered prior to the transfer of the Loan to Investor (hereafter defined), for
each successive week for which the statements are delinquent). Upon a default
hereunder, Lender shall have the right to require that said financial statements
be audited and certified by a certified public accountant acceptable to Lender,
at the sole cost and expense of Grantor.

         Prior to the transfer of the Loan to Investor by Lender, Grantor shall
deliver to Lender the reports required above on a monthly basis. Such reports
shall be delivered within ten calendar days after the end of each calendar
month.

         In addition, at the request of Lender, but in no case more often than
once a quarter nor more than three (3) times during the term of the Loan, unless
a default has occurred, Grantor shall furnish to Lender (i) unaudited financial
statements (balance sheet, income statement, cash flow statement and current
rent roll) covering operation of the Property for periods other than those set
forth in the preceding paragraph and (ii) unaudited financial statements
(balance sheets, income statements, and cash flow statements) for Grantor, its
general partner(s), shareholder(s) or member(s) (whichever is applicable) and
for such other principals of Grantor as designated by Lender, provided that for
so long as the Property is held by Grantor such statements shall be required
only for Grantor and Agree Realty Corporation. All such statements shall be
certified to Lender to be complete, correct, and accurate by the individual (for
an individual's statements) or by an authorized representative of the entity (if
statements are for a partnership, corporation or limited liability company).

                                                              Columbia, Maryland

                                       41

<PAGE>

         Any inspection or audit of the Property or the books and records of
Grantor, or the procuring of documents and financial and other information, by
or on behalf of Lender, shall be at Grantor's expense and shall be for Lender's
protection only, and shall not constitute any assumption of responsibility or
liability by Lender to Grantor or anyone else with regard to the condition,
construction, maintenance or operation of the Property, nor Lender's approval of
any certification given to Lender nor relieve Grantor of any of Grantor's
obligations.

         38.      ALTERATION, REMOVAL AND CHANGE IN USE OF PROPERTY PROHIBITED.
Grantor covenants and agrees to permit or suffer none of the following without
the prior written consent of Lender:

                  (a)      Any structural alteration of, or addition to, the
Improvements now or hereafter situated upon the Real Property, or the addition
of any new buildings or other structure(s) thereto, other than the erection or
removal of non-load bearing interior walls or as may be permitted under the
Borders Lease, so long as the Borders Lease remains in effect; or

                  (b)      The removal, transfer, sale or lease of the Property,
except that the removal, replacement or substitution of fixtures, equipment,
machinery, apparatus and articles of personal property (replacement or
substituted items must be of like or better quality than the removed items in
their original condition) encumbered hereby may be made in the normal course of
business; or

                  (c)      The use of any of the Improvements now or hereafter
situated on the Real Property for any purpose other than the Existing Use and
related facilities, or as may be permitted under the Borders Lease, so long as
the Borders Lease remains in effect.

         39.      FUTURE ADVANCES SECURED. This Deed of Trust shall secure not
only existing indebtedness, but also future advances, whether such advances are
obligatory or to be made at the option of Lender. Upon the request of Grantor,
and at Lender's option prior to release of this Deed of Trust, Lender may make
future advances to Grantor. All future advances with interest thereon shall be
secured by this Deed of Trust to the same extent as if such future advances were
made on the date of the execution of this Deed of Trust unless the parties shall
agree otherwise in writing, but the total secured indebtedness shall not exceed
at any one time a maximum principal amount equal to double the face amount of
the Note plus interest and costs of collection, including court costs and
Reasonable Attorneys' Fees. Any advances or disbursements made for the benefit
or protection of or the payment of taxes, assessments, levies or insurance upon
the Property, with interest on such disbursements as provided herein, shall be
added to the principal balance of the Note and collected as a part thereof. To
the extent that Grantor's Guaranty secured by this Deed of Trust may secure more
than one note, a default in the payment of any such mortgage note shall
constitute a default in the payment of all such Note.

                                                              Columbia, Maryland

                                       42

<PAGE>

         40.      EFFECT OF SECURITY AGREEMENT. Grantor agrees to, and shall
upon the request of Lender, execute and deliver to Lender, in form and content
satisfactory to Lender, such financing statements, descriptions of property and
such further assurances as Lender, in Lender's sole discretion, may from time to
time consider necessary to create, perfect, continue and preserve the lien and
encumbrances hereof, and the security interest granted herein, upon and in the
Property. Without the prior written consent of Lender, Grantor shall not create
or suffer to be created, pursuant to the UCC, any other security interest in
such real and personal property and fixtures described herein. Upon the
occurrence of a default hereunder or Grantor's breach of any other covenants or
agreements between the parties entered into in conjunction herewith, Lender
shall have the remedies of a secured party under the UCC as provided in Section
25, and at Lender's option, the remedies provided for in this Deed of Trust and
the other Loan Documents. Lender, at the expense of Grantor, may cause such
statements, descriptions and assurances, as herein provided in this Section 40,
and this Deed of Trust, to be recorded and re-recorded, filed and refiled, at
such times and in such places as may be required or permitted by law to so
create, perfect and preserve the lien and encumbrance hereof upon all of the
Property.

         41.      TERMS OF APPLICATION SURVIVE CLOSING. The terms and provisions
of the Application for Deed of Trust Loan dated August 28, 2003, and any
subsequent amendments thereto (the "APPLICATION"), executed by and between
Grantor and Lender, are incorporated herein by reference. All terms, covenants,
conditions and agreements of the Application not expressly set forth in this
Deed of Trust and any of the other Loan Documents shall survive the execution
and delivery hereof, and remain in full force and effect. In the event any
conflict exists between the terms, covenants, conditions and agreements of the
Application and the Loan Documents, the terms, covenants, conditions and
agreements of the Loan Documents shall prevail.

         42.      SUCCESSORS AND ASSIGNS; TERMINOLOGY. The provisions hereof
shall be binding upon Grantor and the heirs, personal representatives, trustees,
successors and assigns of Grantor, and shall inure to the benefit of Lender, its
successors and assigns. Where more than one Grantor is named herein, the
obligations and liabilities of said Grantor shall be joint and several.

         Wherever used in this Deed of Trust, unless the context clearly
indicates a contrary intent or unless otherwise specifically provided herein:
(a) the word "Grantor" shall mean Grantor and/or any subsequent owner or owners
of the Property; (b) the word "Lender" shall mean Lender or any subsequent
holder or holders of this Deed of Trust; (c) the word "Note" shall mean the
Note(s) secured by this Deed of Trust; and (d) the word "person" shall mean an
individual, trustee, trust, corporation, partnership, limited liability
corporation, limited liability partnership, joint venture or unincorporated
association. As used herein, the phrase "Reasonable Attorneys' Fees" shall mean
fees charged by attorneys selected by Lender based upon such attorneys' then
prevailing hourly rates as opposed to any statutory presumption

                                                              Columbia, Maryland

                                       43

<PAGE>

specified by any statute then in effect in the State. As used herein words of
any gender shall include all other genders.

         43.      NOTICES. All notices, reports, requests or other written
instruments required or permitted hereunder, shall be in writing, signed by the
party giving or making the same, and shall be sent hand-delivered, effective
upon receipt, sent by United States Express Mail or by a nationally recognized
overnight courier, effective upon receipt, or sent by United States registered
or certified mail, postage prepaid, with return receipt requested, deemed
effective on the earlier of the day of actual delivery as shown by the
addressee's return receipt or the expiration of three business days after the
date of mailing, addressed to the party intended to receive the same at the
address set forth below or at such other address as shall be given in writing by
any party to another ("WRITTEN NOTICE"):

         If to Grantor:    AGREE-COLUMBIA CROSSING PROJECT, LLC
                           31850 Northwestern Highway
                           Farmington Hills, Michigan 48334
                           Attention:  Mr. Richard Agree

         If to Lender:     NATIONWIDE LIFE INSURANCE COMPANY
                           One Nationwide Plaza
                           Columbus, Ohio  43215-2220
                           Attention:  Real Estate Investment Department, 34T

         44.      GOVERNING LAW; WAIVER OF JURY TRIAL; SEVERABILITY. GRANTOR AND
LENDER, EACH TO THE FULLEST EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY,
INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL,
WAIVES, RELINQUISHES AND FOREVER FORGOES HEREBY THE RIGHT TO A TRIAL BY JURY IN
ANY ACTION OR PROCEEDING, INCLUDING, WITHOUT LIMITATION, ANY TORT ACTION,
AGAINST THE OTHER, ITS SUCCESSORS AND ASSIGNS, BASED UPON, ARISING OUT OF, OR IN
ANY WAY RELATING TO OR IN CONNECTION WITH ANY OF THE LOAN DOCUMENTS, THE LOAN OR
ANY COURSE OF CONDUCT, ACT, OMISSION, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF ANY PERSON (INCLUDING, WITHOUT LIMITATION,
EITHER PARTY'S DIRECTORS, OFFICERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS OR
ATTORNEYS, OR ANY OTHER PERSONS AFFILIATED WITH EITHER), IN CONNECTION WITH THE
LOAN OR THE LOAN DOCUMENTS, INCLUDING, WITHOUT LIMITATION, IN ANY COUNTERCLAIM
WHICH ANY PARTY MAY BE PERMITTED TO ASSERT THEREUNDER, WHETHER SOUNDING IN
CONTRACT, TORT OR OTHERWISE. IN NO EVENT SHALL LENDER, ITS SUCCESSORS OR ASSIGNS
BE LIABLE FOR ANY SPECIAL, INCIDENTAL,

                                                              Columbia, Maryland

                                       44

<PAGE>

CONSEQUENTIAL OR PUNITIVE DAMAGES WHATSOEVER (INCLUDING WITHOUT LIMITATION LOSS
OF BUSINESS PROFITS OR OPPORTUNITY) AND BY ITS EXECUTION HEREOF, GRANTOR WAIVES
ANY RIGHT TO CLAIM OR SEEK ANY SUCH DAMAGES. This Deed of Trust and the rights
and obligations of the parties hereunder shall be governed by, and construed in
accordance with, the internal laws of the State, without regard to principles of
conflicts of laws. The parties hereto irrevocably (a) agree that any suit,
action or other legal proceeding arising out of or relating to this Deed of
Trust may be brought in a court of record in the State or in the courts of the
United States of America located in such State, (b) consent to the non-exclusive
jurisdiction of each such court in any suit, action or proceeding, and (c) waive
any objection which it may have to the laying of venue of any such suit, action
or proceeding in any of such courts and any claim that any such suit, action or
proceeding has been brought in an inconvenient forum. If any clauses or
provisions herein contained operate, or would prospectively operate, to
invalidate this Deed of Trust, then such clauses or provisions only shall be
held for naught, as though not herein contained, and the remainder of this Deed
of Trust shall remain operative and in full force and effect.

         45.      RIGHTS OF LENDER CUMULATIVE. The rights of Lender arising
under the terms, covenants, conditions and agreements contained in this Deed of
Trust shall be separate, distinct and cumulative, and none of them shall be in
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 provisions,
anything herein or otherwise to the contrary notwithstanding. If Grantor is
comprised of more than one person or entity, then the liability of each such
person and entity hereunder shall be joint and several.

         46.      MODIFICATIONS. This Deed of Trust cannot be changed, altered,
amended or modified except by an agreement in writing and in recordable form,
executed by both Grantor and Lender.

         47.      EXCULPATION. Notwithstanding anything contained herein to the
contrary, the liability of Grantor is subject to the limited recourse provisions
contained in the Exculpation section of the Note, which are incorporated herein
and made a part hereof by reference as if fully set forth herein.

         48.      FULL RECOURSE. Notwithstanding any provisions in this Deed of
Trust to the contrary, including without limitation the provisions set forth in
the section captioned "Exculpation" hereinabove, Grantor shall be personally
liable, jointly and severally, for the entire Loan secured by this Deed of Trust
(including all principal, interest and other charges) in the event (a) Grantor
violates the covenant governing the placing of subordinate financing on the
Property as set forth in this Deed of Trust; (b) Grantor violates the covenant
restricting transfers of interests in the Property or transfers of ownership
interests in Grantor as set forth in this Deed of Trust; or (c) Grantor or any
guarantor violates the provisions of Section 22 of this Deed of Trust, or there
is filed against Grantor or any guarantor or indemnitor of the

                                                              Columbia, Maryland

                                       45

<PAGE>

Loan, a petition in bankruptcy or for the appointment of a receiver, or there
commences under any bankruptcy or insolvency law, proceedings for Grantor's
relief, or for the compromise, extension, arrangement or adjustment of Grantor's
obligations which is not dismissed within thirty (30) days after the filing of
same.

         49.      LENDER IS NOT A JOINT VENTURER OR PARTNER. Grantor and Lender
acknowledge and agree that in no event shall Lender be deemed to be a partner or
joint venturer with Grantor or any member of Grantor. Without limitation of the
foregoing, Lender shall not be deemed to be a partner or joint venturer on
account of its becoming a mortgagee in possession or exercising any rights
pursuant to this Deed of Trust or pursuant to any other instrument or document
evidencing or securing any of the indebtedness secured hereby, or otherwise.

         50.      CAPTIONS. The captions set forth at the beginning of the
various Sections of this Deed of Trust are for convenience only, and shall not
be used to interpret or construe the provisions of this Deed of Trust.

         51.      TRUSTEES. Trustees hereby accept the trust created by this
Deed of Trust, upon the terms and subject to the conditions set forth herein,
including the following:

         Trustees assume no responsibility for and make no representations as to
(i) the description, identification or value of the Property or any part
thereof, (ii) the validity or sufficiency of the Loan Documents, (iii)
Borrower's or Grantor's present or future financial condition, or (iv) the
validity or collectibility of the Note or the Grantor's Guaranty.

         Trustees (i) may exercise their powers and perform their duties
hereunder either directly or by or through such attorneys, agents, servants as
they shall appoint, and (ii) shall not be answerable or liable (x) for the acts,
negligence or default of any such attorney, agent or servant which Trustees may
so appoint so long as the same are selected with care, or (y) for any act or
omission of Lender, or (z) for any other cause arising under this Deed of Trust
or otherwise, except for each such Trustee's own individual willful misconduct.

         Trustees, in their discretion may consult with legal counsel selected
and employed by Trustees, and Trustees shall incur no liability to Grantor,
Lender or to any other person by reason of any action taken, suffered or omitted
by Trustees in accordance with the opinion of such counsel.

         Trustees shall be under no obligation to sell the Property or any part
thereof upon a default hereunder, or to exercise any of the rights or powers
vested in Trustees by this Deed of Trust, except upon the written request or
direction of Lender and upon Lender furnishing security or an indemnity
satisfactory to Trustees against costs, expenses and liabilities incurred

                                                              Columbia, Maryland

                                       46

<PAGE>

or which may be incurred by Trustees in selling the Property or in complying
with such request or direction.

         At any time that more than one person is acting as Trustee hereunder,
the powers vested in Trustees may be exercised by either Trustee acting
individually in the event of the unavailability of the other Trustee. Any person
acting as Trustee hereunder may resign as Trustee upon written notice to the
Lender.

         Lender may remove Trustees at any time or from time to time for any
reason (with or without cause) and appoint a successor trustee or trustees, and
upon such appointment, all powers, rights, duties and authority of Trustees, as
aforesaid, shall thereupon become vested in such successor. Such substitute
trustee shall be appointed by written instrument duly recorded in the county or
counties where the Property covered hereby is located, which appointment may be
executed by any authorized agent of Lender or in any other manner permitted by
applicable law.

         52.      SPLITTING OF DEED OF TRUST. This Deed of Trust and the Note
and the Grantor's Guaranty, shall, at any time until the same shall be fully
paid and satisfied, at the sole election of Lender, be split or divided into two
or more notes and two or more security instruments, each of which shall cover
all or a portion of the Property to be more particularly described therein. To
that end, Grantor, upon written request of Lender, shall execute, acknowledge
and deliver, or cause to be executed, acknowledged and delivered by the then
owner of the Property, to Lender and/or its designee or designees substitute
notes and security instruments in such principal amounts, aggregating not more
than the then unpaid principal amount of Loan, and containing terms, provisions
and clauses similar to those contained herein and in the Note and the Grantor's
Guaranty, and such other documents and instruments as may be required by Lender.

         53.      REPLACEMENT DOCUMENTS. Upon receipt of an affidavit of an
officer of Lender as to the loss, theft, destruction or mutilation of the Note,
the Grantor's Guaranty 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, the Grantor's Guaranty, or other Loan Document, Grantor, at its expense,
will issue or cause to be issued, in lieu thereof, a replacement Note, the
Grantor's Guaranty, or other Loan Document, dated the date of such lost, stolen,
destroyed or mutilated Note, Grantor's Guaranty, or other Loan Document in the
same principal amount thereof and otherwise of like tenor.

         54.      SOLE DISCRETION OF LENDER. Wherever pursuant to this Deed of
Trust 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

                                                              Columbia, Maryland

                                       47

<PAGE>

Lender and shall be final and conclusive, except as may be otherwise expressly
and specifically provided herein.

         55.      TRANSFER OF LOAN.

                  (a)      Lender may, at any time, sell, transfer or assign the
Note, the Grantor's Guaranty, this Deed of Trust, the Assignment and the other
Loan Documents, and any or all servicing rights with respect thereto, or grant
participations therein or issue mortgage pass-through certificates or other
securities evidencing a beneficial interest in a rated or unrated public
offering or private placement (the "SECURITIES"), or otherwise sell the Loan or
an interest therein (a "SECONDARY MARKET TRANSACTION"). Lender may forward to
each purchaser, transferee, assignee, servicer, participant, investor in such
Securities or in connection with a Secondary Market Transaction or any Rating
Agency rating such Securities (collectively, the "INVESTOR") and each
prospective Investor, all documents and information which Lender now has or may
hereafter acquire relating to the Loan and to Borrower, Grantor, any Guarantor
and the Property, whether furnished by Borrower, Grantor, any Guarantor or
otherwise, as Lender determines necessary or desirable. Grantor acknowledges
that certain information regarding the Loan and the parties thereto and the
Property may be included in a private placement memorandum, prospectus or other
disclosure documents. The term "RATING AGENCY" shall mean each statistical
rating agency that has assigned a rating to the Securities.

                  (b)      Grantor shall cooperate in good faith with Lender in
effecting any such Secondary Market Transaction and shall cooperate in good
faith to implement all requirements reasonably imposed by the participants
involved in any Secondary Market Transaction (including without limitation, a
Rating Agency and/or an Investor) including, without limitation, all structural
or other changes to the Loan, modifications to any documents evidencing or
securing the Loan, delivery of opinions of counsel acceptable to the Rating
Agency or such Investors and addressing such matters as the Rating Agency or
such Investors may require; provided, however, that the Grantor shall not be
required to modify any documents evidencing or securing the Loan which would
modify (i) the interest rate payable under the Note, (ii) the stated maturity of
the Note, (iii) the amortization of principal of the Note, or (iv) any other
material terms or covenants of the Loan.

                  (c)      If Securities are issued in connection with the Loan
or a Secondary Market Transaction occurs with respect to the Loan, all Funds
held by Lender in escrow or pursuant to reserves in accordance with the Loan
Documents shall be deposited in "eligible accounts" at "eligible institutions"
and invested in "permitted investments" as then defined and required by any
Rating Agency.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

                                                              Columbia, Maryland

                                       48

<PAGE>

         IN WITNESS WHEREOF, Grantor has caused this Deed of Trust to be
executed as of the day and year first above written.

                                   GRANTOR:

                                   AGREE - COLUMBIA
                                   CROSSING PROJECT, L.L.C.,
                                   a Delaware limited liability company

                                   By: AGREE LIMITED PARTNERSHIP,
                                       a Delaware limited partnership
                                       Its Member

                                       By: AGREE REALTY CORPORATION,
                                           a Maryland corporation
                                           Its General Partner

                                           By: /s/ Richard Agree
                                              _____________________
                                              Richard Agree
                                              President

STATE OF                     )
                             )
COUNTY OF                    )

         The foregoing instrument was acknowledged before me this _____ day of
October, 2003, by RICHARD AGREE, President of Agree Realty Corporation, a
Maryland corporation, on behalf of the corporation as general partner of Agree
Limited Partnership, a Delaware partnership, as member of Agree - Columbia
Crossing Project, L.L.C., a Delaware limited liability company.

                                   ____________________________________________
                                   Name: ______________________________________
                                   Notary Public
                                   My Commission Expires: _____________________
                                   (SEAL)

                                                              Columbia, Maryland

                                      S-1

<PAGE>

The undersigned, an attorney admitted to practice before the Court of Appeals of
Maryland, hereby certifies that the within instrument was prepared by me or
under my supervision.

___________________________

Attorney's Name:__________________

                                                              Columbia, Maryland
                                      S-2

<PAGE>

                                    EXHIBIT A
                               (Legal Description)

SITUATED IN THE CITY OF COLUMBIA, COUNTY OF HOWARD, STATE OF MARYLAND:

         BEING KNOWN AND DESIGNATED as Parcel No. CC as shown on plat entitled
"Columbia, Route 175 Commercial, Section 1 Area 1, Parcels 'AA' thru 'CC' & Lot
2, A Resubdivision of Parcels V, Y, Z and Lot 1, Route 175 Commercial as shown
on Plat Nos. 12065, 12865 & 13104", which plat is recorded among the Land
Records of Howard County in Plat Book M.D.R. No. 13550.

         BEING the same lot of ground which by Deed dated April 30, 1999 and
recorded among the Land Records of Howard County in Liber No. 4721, folio 444
was granted and conveyed by The Howard Research and Development Corporation,
(formerly known as HRD Holdings, Inc.) to Agree-Columbia Crossing Project,
L.L.C., a Delaware limited liability corporation.

         BEING ALSO the same lot of ground described in an unrecorded Lease
between Agree-Columbia Crossing Project, L.L.C. and Borders, Inc. dated April
30, 1999.

         TOGETHER WITH the non-exclusive easements contained in Construction,
Operation and Reciprocal Easement Agreement dated March 8, 1996 and recorded
among the Land Records of Howard County in Liber 3678 folio 376, as amended by
Restated Construction Operation and Reciprocal Easement Agreement dated July 31,
1996 and recorded in Liber 3782 folio 147, amended by First Amendment to Amended
and Restated Construction, Operation and Reciprocal Easement Agreement dated
July 7, 1997 and recorded in Liber 4013 folio 362.

Tax Account No. 16-213896

                                                              Columbia, Maryland

                                      A - 1

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