Document:

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                                                                    Exhibit 10.2

                                 LOAN AGREEMENT

         THIS LOAN AGREEMENT, dated as of December 23, 1997 (as amended,
restated, replaced, supplemented or otherwise modified from time to time, this
"AGREEMENT"), between Credit Suisse First Boston Mortgage Capital LLC, a
Delaware limited liability company having an address at 11 Madison Avenue, New
York, New York 10010 ("LENDER") and the Persons identified on Exhibit A, having
an address at c/o Donatelli & Klein, Inc., 7200 Wisconsin Avenue, Suite 310,
Bethesda, Maryland 20814 ("BORROWER").

         All capitalized terms used herein shall have the respective meanings
set forth in Article I hereof.

                             W I T N E S S E T H :

         WHEREAS, Borrower desires to obtain the Loan from Lender;

         WHEREAS, Lender is willing to make the Loan to Borrower, subject to and
in accordance with the terms of this Agreement and the other Loan Documents;

         NOW, THEREFORE, in consideration of the making of the Loan by Lender
and the covenants, agreements, representations and warranties set forth in this
Agreement, the parties hereto hereby covenant, agree, represent and warrant as
follows:

         I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION

         SECTION 1.1 DEFINITIONS.

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

         "ACM" shall mean any asbestos-containing materials.

         "ADDITIONAL BORROWER" shall mean any Person under common control with
the Borrower assuming the Loan and the Loan Documents and either (a) encumbering
its Individual Property with a Mortgage or (b) executing and delivering to
Lender a Pledge Agreement in connection with an Advance pursuant to the terms
and provisions hereof. Upon the funding of the related Advance in accordance
with the terms and provisions hereof, an Additional Borrower assuming the Loan
and the Loan Documents and encumbering its Individual Property or executing a
Pledge Agreement in connection with such Advance shall constitute an Individual
Borrower.

         "ADDITIONAL INTEREST" shall have the meaning ascribed thereto in the
Note.

         "ADDITIONAL PROPERTY" shall have the meaning set forth in Section
2.1.4(b).

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         "ADDITIONAL RELEASE AMOUNT" shall have the meaning set forth in Section
2.4.2(i).

         "ADJUSTED RELEASE AMOUNT" shall mean, for an Individual Property, the
product of the Allocated Loan Amount for such Individual Property and one
hundred twenty-five percent (125%), which amount shall be applied by Lender
first to repay all sums due with respect to such Individual Property including
the portion of the Loan allocated to such Individual Property, accrued and
unpaid interest thereon, and the balance shall be applied by Lender to reduce
the outstanding principal balance of the Loan.

         "ADVANCE" shall mean disbursement of a portion of the Loan to Borrower
in accordance with the terms and provision hereof.

         "AFFILIATE" shall mean, with respect to any Person, (x) any Person
controlling, controlled by or under common control with, whether by virtue of
ownership or otherwise, such Person and (y) any spouse, parent or sibling of any
such Person who is a natural person, and any ancestor or lineal descendent of
such spouse, parent or sibling. For purposes of this Agreement and the other
Loan Documents, Affiliates of Borrower shall include, but not be limited to, (i)
any partners, members or shareholders, as the case may be (other than in their
capacity as shareholders of any company whose stock is publicly traded, where
such shareholders do not control such company) of Borrower, (ii) any Guarantor,
and any shareholders, members or partners, if any, as the case may be of such
Guarantor (other than in their capacity as shareholders of any company whose
stock is publicly traded, where such shareholders do not control such company),
and (iii) any Person which would constitute an Affiliate of any Person described
above pursuant to clause (x) or (y) above.

         "AFFIRMATIVE COVENANT" shall mean a promise or covenant by any Person
to perform, act, suffer, permit or consent to.

         "AGREEMENT" shall mean this Loan Agreement, as the same may be amended,
restated, replaced, supplemented, or otherwise modified from time to time.

         "ALLOCATED LOAN AMOUNT" shall mean, for an Individual Property, the
amount set forth on Exhibit H hereto.

         "ALTA" shall mean American Land Title Association, or any successor
thereto.

         "APPLICABLE INTEREST RATE" shall mean the rate of interest, adjusted
from time to time, applicable to the outstanding principal balance of the Loan
from time to time, calculated in accordance with the terms of the Note.

         "APPROVAL PERIOD" shall have the meaning set forth in Section 8.4(b).

         "APPROVED ACCOUNTANT" shall mean one of the so-called "Big Six"
accounting firms or such other independent certified public accountant of
nationally recognized standing

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selected by the Person required to deliver the applicable Financial Statements
and other reports specified herein, which Approved Accountant shall be approved
by Lender, which consent shall not be unreasonably withheld, delayed or
conditioned.

         "APPROVED APPRAISAL" shall mean, with respect to an Individual
Property, an appraisal of such Individual Property (a) executed and delivered to
Lender by a qualified MAI appraiser having no direct or indirect interest in
such Individual Property or any loan secured in whole or in part thereby and
whose compensation is not affected by the approval or disapproval of such
appraisal by Lender; (b) addressed to Lender and its successor and assigns; (c)
satisfying the requirements of the Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation and Title XI of the Federal Institutions
Reform, Recovery and Enforcement Act of 1989 (FIRREA) and the regulations
promulgated thereunder, all as in effect on the date of such calculation, with
respect to the appraisal and the appraiser preparing same; and (d) otherwise
satisfactory to Lender in all respects in Lender's reasonable discretion.

         "APPROVED BUDGET" shall have the meaning ascribed to such term in the
Cash Management Agreement.

         "APPROVED CONTRACTS" shall mean (i) any agreement which satisfies the
criteria of a "Contract" and is added to Exhibit B after the date hereof and
(ii) the contracts and other agreements set forth on Exhibit B on the date
hereof.

         "APPROVED LEASES" shall mean (i) the leases and other occupancy
agreements set forth on Exhibit L and (ii) all Leases entered into by Borrower
after the date of this Agreement in accordance with Section 5.5.

         "ASSIGNEES" shall have the meaning set forth in Section 7.8.1.

         "ASSIGNMENT OF LEASES" shall mean, with respect to each Individual
Property, a first priority Assignment of Leases and Rents from the applicable
Individual Borrower, as assignor, to Lender, as assignee (substantially in the
form of the Assignment of Leases and Rents attached hereto as Exhibit M),
assigning to Lender all of such Individual Borrower's interest in and to the
Leases and Rents of such Individual Property as security for the Loan, as the
same may be amended, restated, replaced, supplemented or otherwise modified from
time to time.

         "ASSIGNMENT OF MANAGEMENT AGREEMENT" shall mean, with respect to each
Individual Property, that certain Assignment of Management Agreement and
Subordination of Management Fees among an Individual Borrower, as assignor,
Manager, as manager, and Lender, as assignee (substantially in the form of the
Assignment of Management Agreement, attached hereto as Exhibit N), as the same
may be amended, restated, replaced, supplemented or otherwise modified from time
to time.

         "BASIC CARRYING COSTS" shall mean, with respect to an Individual
Property, the sum of the following costs associated with such Individual
property for the relevant Fiscal

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Year or payment period: (i) real property taxes with respect to such Individual
Property and (ii) insurance premiums with respect to such Individual Property.

     "BEST KNOWLEDGE" or "KNOWLEDGE" shall mean for the purpose of this
Agreement and the other Loan Documents the actual knowledge of the Person in
question, after having made due inquiry of the Manager. If any entity with
respect to which this term would be applicable is a corporation, knowledge of
such entity shall refer to actual knowledge of the officers or directors
charged with management responsibility of the Individual Property in question,
after having made due inquiry of the Manager. If any such entity is a
partnership, knowledge of such entity shall refer to actual knowledge of
officers and directors of its general partners who are charged with management
responsibility of such partnership (directly or indirectly), after having made
due inquiry of the Manager. If any such entity is a limited liability company,
knowledge of such entity shall refer to actual knowledge of its managing
members charged with management responsibility of the Individual Property in
question, after having made due inquiry.

     "BORROWER" shall mean, collectively, the Persons identified on Exhibit A,
as same may be modified from time to time to add an Additional Borrower, and
each of their respective successors and assigns.

     "BORROWER INFORMATION" shall have the meaning ascribed thereto in
Section 7.8.6.

     "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or any
other day on which commercial banks in New York, New York are required or
permitted by law to close.

     "CAPITAL EXPENDITURES" shall mean, with respect to an Individual Property,
the amount to be expended for items which have a useful life in excess of one
(1) year (including reasonable expenditures for building improvements or major
repairs and including expenditures reasonably incurred by an Individual Borrower
to prepare or improve unleased space at an Individual Property for marketing and
leasing), as set forth in a Property Budget.

     "CASH COLLATERAL ACCOUNT" shall have the meaning ascribed to such term in
the Cash Management Agreement.

     "CASH MANAGEMENT AGREEMENT" shall mean that certain Cash Management
Agreement, dated as of the date hereof, between Borrower, Lender and Manager,
as the same may be amended or modified from time to time.

     "CERCLA" shall mean the Comprehensive Environmental Response, Compensation
and Liability Act (42 U.S.C. Section 960, et seq.), as the same may be amended
from time to time.

     "CLAIM" shall have the meaning set forth in Section 7.5.2.

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     "CLEARING ACCOUNT" shall have the meaning ascribed to such term in the Cash
Management Agreement.

     "CLOSING COSTS" shall have the aggregate of the actual and reasonable
costs paid to third parties who are not Affiliates of Borrower, any Individual
Borrower or any SPE Entity, incurred by an Individual Borrower in connection
with the purchase of an Individual Property including, but not necessarily
limited to transfer fees, taxes and expenses, real estate brokerage fees and
commissions (not to exceed five percent (5%)), survey expenses, market and
appraisal reports, title premiums and expenses, recording charges, legal,
engineering and environmental fees and expenses, and other fees and expenses
customarily incurred by purchasers of similar property similarly situated in
the jurisdiction where such Individual Property is located.

     "CLOSING DATE" shall mean, with respect to an Individual Property or a
Mezzanine Loan, the date of the funding of the Advance applicable to such
Individual Property or such Mezzanine Loan.

     "CLOSING DATE DEBT SERVICE COVERAGE RATIO" shall have the meaning set
forth in Section 2.4.2(i).

     "CODE" shall mean the Internal Revenue Code of 1986, as amended, and as it
may be further amended from time to time, and successor statutes thereto, and
applicable U.S. Department of Treasury regulations issued pursuant thereto in
temporary or final form.

     "COLLECTION PERIOD" shall have the meaning ascribed to such term in the
Cash Management Agreement.

     "CONTRACT" shall mean (i) any written management, brokerage or leasing
agreement or (ii) any written cleaning, maintenance, service or other contract
or agreement of any kind (other than Leases) of a material nature (materiality
for these purposes shall mean a contract pursuant to which an Individual
Borrower is required to pay to the other party to such Contract in any Fiscal
Year an amount in excess of (x) $150,000 if such other party to the Contract is
an Affiliate of Borrower or (y) $300,000 if such other party to the Contract is
not an Affiliate of Borrower), relating to the ownership, leasing, management,
use, operation, maintenance, repair or restoration on any Individual Property.

     "CONTRIBUTION AGREEMENT" shall mean that certain Contribution Agreement by
and among the Individual Borrowers dated as of the date hereof, as the same may
be amended, restated, replaced, supplemented or otherwise modified from time to
time.

     "CONTROL" (and the correlative terms "CONTROLLED BY" and "CONTROLLING")
shall mean the power to direct the business and affairs of the entity in
question by reason of the ownership of beneficial interests, by contract or
otherwise.

     "DEBT" shall mean the outstanding principal amount set forth in, and
evidenced by, this Agreement and the Note together with all interest accrued
and unpaid thereon and all

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other sums due to Lender in respect of the Loan under the Note, this Agreement,
each Mortgage or any other Loan Document.

     "DEBT SERVICE" shall mean, with respect to any particular period of time,
scheduled principal and/or interest payments under the Note.

     "DEBT SERVICE COVERAGE RATIO" shall mean a ratio for the applicable period
in which:

          (a) the numerator is the Underwritten Net Operating Income for such
              period as set forth in the statements required hereunder; and

          (b) the denominator is the aggregate amount of interest payable on the
              outstanding principal balance of the Loan for such period
              assuming a loan constant equal to the greater of (i) 9.23% or (ii)
              the Applicable Interest Rate for such period.

     "DEFAULT"  shall have the meaning ascribed thereto in Section 6.1 hereof.

     "DEFAULT RATE" shall mean, with respect to the Loan, following the
occurrence of an Event of Default which continues to exist beyond any
applicable grace and cure period, a rate per annum equal to the lesser of (a)
the maximum rate permitted by applicable law, or (b) five percent (5%) above
the Applicable Interest Rate. In no event shall the Default Rate exceed the
maximum interest rate permitted under applicable law.

     "DESIGNATED OFFICER" shall mean if any Individual Borrower is a
corporation, the chief financial officer of such corporation or such other
officer of such corporation as is fully familiar with the financial affairs of
such Individual Borrower and is approved by Lender. If any Individual Borrower
is a partnership, such officer of such Individual's Borrower's managing general
partner as satisfies the first sentence of this definition. If any Individual
Borrower is a limited liability company, such officer of such Individual
Borrower's managing member as satisfies the first sentence of this definition.

     "DESIGNEE" shall have the meaning set forth in Section 7.23 hereof.

     "DISCLOSED VIOLATIONS" shall have the meaning set forth in Section 4.12.1.

     "DISCLOSURE DOCUMENT" shall have the meaning set forth in Section 7.26.3.

     "DISQUALIFIED PERSON" shall have the meaning set forth in Section 4.27.1
hereof.

     "DSCR CALCULATION DATE" shall mean the twentieth (20th) day after the end
of each calendar quarter, or if such day is not a Business Day, the next
succeeding Business Day.

     "DSCR INCREASE" shall have the meaning set forth in Section 2.4.2(i).

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          "EASEMENTS" shall have the meaning ascribed to such term in Section
4.7 hereof.

          "ELIGIBLE ACCOUNT" shall mean a separate and identifiable account from
all other funds held by the holding institution that is either (i) an account or
accounts maintained with a federal or state-chartered depository institution or
trust company which complies with the definition of Eligible Institution or (ii)
a segregated trust account or accounts maintained with a federal or state
chartered depository institution or trust company acting in its fiduciary
capacity which, in the case of a state chartered depository institution or trust
company is subject to regulations substantially similar to 12 C.F.R. Section
9.10(b), having in either case a combined capital and surplus of at least Fifty
Million and No/100 Dollars ($50,000,000) and subject to supervision or
examination by federal and state authority. An Eligible Account will not be
evidenced by a certificate of deposit, passbook or other instrument.

          "ELIGIBLE INSTITUTION" shall mean any depository institution or trust
company the short term unsecured debt obligations or commercial paper of which
are rated at least A-1 by Standard & Poor's Ratings Group, P-1 by Moody's
Investors Service, Inc., D-1 by Duff & Phelps Credit Rating Co. or F-1+ by Fitch
Investors Service, L.P. in the case of accounts in which funds are held for
thirty (30) days or less (or, in the case of accounts in which funds are held
for more than thirty (30) days, the long term unsecured debt obligations of
which are rated at least "A" by Fitch, Duff or S&P or "A" by Moody's).

          "ELIGIBLE INVESTMENTS" shall mean any one or more of the following
investments in obligations or securities acquired at a purchase price of not
greater than par, including those issued by Lender or any Affiliate of Lender,
provided that such obligations or securities are either payable on demand or
have a maturity not later than the Business Day immediately prior to the date on
which the proceeds thereof are anticipated to be expended or applied pursuant to
the terms of the Loan Documents:

          (a)  direct obligations of, and obligations fully guaranteed as to
payment of principal and interest by, the United States, Federal Home Loan
Mortgage Corporation, Federal National Mortgage Association or any agency or
instrumentality of the United States of America provided such obligations are
backed by the full faith and credit of the United States of America;

          (b)  general obligations of or obligations guaranteed by any state of
the United States or the District of Columbia at all times having the highest
long-term debt rating of the Rating Agencies, or such lower rating (but not
lower than the second highest such rating category of the Rating Agencies) as
will not or would not result in the qualification, reduction or withdrawal of
the initial ratings assigned in connection with a Securitization by the Rating
Agencies, as evidenced by a letter confirming such result by the Rating
Agencies;

          (c)  commercial or finance company paper which is rated at all times
by the Rating Agencies in its highest unsecured commercial or finance company
paper rating category or such lower unsecured commercial or finance company
paper rating category (but not lower

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than the second highest such rating category of the Rating Agencies) as will not
or would not result in the qualification, reduction or withdrawal of the initial
ratings assigned in connection with a Securitization by the Rating Agencies, as
evidenced by a letter confirming such result by the Rating Agencies;

     (d)  certificates of deposit, demand or time deposits, federal funds or
bankers' acceptances issued by any depository institution or trust company
incorporated under the laws of the United States of America or of any state
thereof and subject to supervision and examination by federal or state banking
authorities, provided that the commercial paper or long-term unsecured debt
obligations of such depository institution or trust company (or in the case of
the principal depository institution or trust company in a holding company
system, the commercial paper or long-term unsecured debt obligations of such
holding company) are rated at all times in the highest rating category for such
securities by the Rating Agencies, or such lower category for such securities
(but not lower than the second highest such rating category of the Rating
Agencies) as will not or would not result in the qualification, reduction or
withdrawal of the initial ratings assigned in connection with a Securitization
by the Rating Agencies, as evidenced by a letter confirming such result by the
Rating Agencies;

     (e)  guaranteed reinvestment agreements issued by any bank, insurance
company or other corporation as will not or would not result in the
qualification, reduction or withdrawal of the initial ratings assigned in
connection with a Securitization by the Rating Agencies, as evidenced by a
letter confirming such result by the Rating Agencies;

     (f)  repurchase obligations with respect to any security described in
clauses (a) and (b) of this definition, in each case entered into with a
depository institution or trust company (acting as principal) described in
clause (d) above;

     (g)  securities (other than stripped bonds or stripped coupons) bearing
interest or sold at a discount that are issued by any corporation incorporated
under the laws of the United States of America or any state thereof or the
District of Columbia which are rated at all times in the highest rating category
of the Rating Agencies, or in such lower category (but not lower than the second
highest such rating category of the Rating Agencies) as will not or would not
result in the qualification, reduction or withdrawal of the initial ratings
assigned in connection with a Securitization by the Rating Agencies, as
evidenced by a letter confirming such result by the Rating Agencies;

     (h)  interests in money market funds which at all times have a rating of
"AAA" by the Rating Agencies, or such lower rating (but not lower than the
second highest rating category of the Rating Agencies for money market funds) as
will not or would not result in the qualification, reduction or withdrawal of
the initial ratings assigned in connection with a Securitization by the Rating
Agencies, as evidenced by a letter confirming such result by the Rating
Agencies; and

     (i)  such other investment bearing interest or sold at a discount
acceptable to Lender and the Rating Agencies as will or would not result in the
qualification, reduction or withdrawal of the initial ratings assigned in
connection with a Securitization by the Rating

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Agencies, as evidenced by a letter confirming such result from the Rating
Agencies; provided that such investment shall be rated at all times by the
Rating Agencies not lower than its second highest rating category for
investments of such type.

     No obligation or security set forth above shall be an Eligible Investment
if (i) such obligation or security evidences a right to receive only interest
payments or (ii) the right to receive principal and interest payments derived
from the underlying investment provide a yield to maturity in excess of one
hundred twenty percent (120%) of the yield to maturity at par of such
underlying investment.

     "ENGINEER'S REPORT" shall mean the report made and delivered to Lender by
the Engineering Consultant with respect to an Individual Property.

     "ENGINEERING CONSULTANT" shall mean any qualified person reasonably
satisfactory to Lender.

     "ENVIRONMENTAL COSTS" shall mean "Indemnified Costs" as such term is
defined in the Environmental Indemnification Agreement.

     "ENVIRONMENTAL CONSULTANT" shall mean any qualified person reasonably
satisfactory to Lender.

     "ENVIRONMENTAL INDEMNIFICATION AGREEMENT" shall mean, with respect to each
Individual Property, that certain Environmental Indemnification Agreement in
the form attached as Exhibit O, made, jointly and severally, by each Individual
Borrower and the guarantors to Lender, as same may hereafter be amended,
restated, replaced, supplemented or otherwise modified from time to time.

     "ENVIRONMENTAL LAWS" shall mean CERCLA; The Resource Conservation and
Recovery Act, 42 U.S.C. Section 1601, et seq.; The Hazardous Substances
Transportation Act, 49 U.S.C. Section 1801, et seq.; The Emergency Planning &
Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001, et seq.; The Toxic
Substances Control Act, 15 U.S.C. Section 2601 et seq.; The Clean Air Act, 42
U.S.C. Section 7401 et seq.; The Clean Water Act, 33 U.S.C. Section 1251 et
seq.; The Safe Drinking Water Act, 42 U.S.C. Section 300 et seq.; as any of the
foregoing may be amended from time to time; and any other federal, state and
local laws or regulations, codes, statutes, orders, decrees, guidance
documents, judgments or injunctions, now or hereafter issued, promulgated,
approved or entered thereunder, relating to pollution, contamination or
protection of the environment, including, without limitation, laws relating to
emissions, discharges, releases or threatened releases of pollutants,
contaminants, chemicals or industrial, toxic or hazardous substances or wastes
into the environment (including, without limitation, ambient air, surface
water, ground water, land surface or subsurface strata, buildings or
facilities) or otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of pollutants,
contaminants, chemicals or industrial, toxic or hazardous substances or wastes.

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     "EQUITY RESERVE ACCOUNT" shall have the meaning ascribed thereto in
Section 8.3.

     "ENVIRONMENTAL MATTER" shall mean any matter arising out of, relating to,
or resulting from pollution, contamination or protection of the environment
(including natural resources), and any matters relating to emission, discharge,
release or threatened release, of Hazardous Substances into the air (indoor and
outdoor), surface water, groundwater, soil, land surface or subsurface,
buildings or facilities or otherwise arising out of, relating to, or resulting
from the manufacture, processing, distribution, use, treatment, storage,
disposal, transport, handling, release or threatened release of Hazardous
Substances.

     "ENVIRONMENTAL REPORT" shall mean each report made and delivered to Lender
by the Environmental Consultant in connection with an Individual Property.

     "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended, and the regulations promulgated thereunder from time to time.

     "EVENT OF DEFAULT" shall have the meaning set forth in Section 6.1.

     "EXIT FEE" shall mean a non-refundable fee paid to Lender equal to one
(1.0%) percent of the total amount of the Loan which shall be paid on the
earlier of: (i) by Borrower on the Maturity Date, or (ii) in installments in an
amount equal to one (1.0%) percent of the principal amount of the Note prepaid
hereunder at any time by any Individual Borrower. Each Individual Borrower shall
be jointly and severally liable the payment of the Exit Fee applicable to the
note executed by Borrower.

     "EXTENSION FEE"  shall mean a non-refundable fee paid to Lender equal to
one-half of one percent (.50%) of the principal amount of the Loan payable by
Borrower to Lender in the event of the extension of the Loan pursuant to
Section 2.1.4(c).

     "EXTENSION PERIOD" shall mean the extension of the Maturity Date for a one
(1) year period commencing on January 1, 2000, and ending on the first
anniversary thereof.

     "FACILITY EXTENSION NOTICE" shall have the meaning set forth in Section
2.1.4(c).

     "FACILITY FEE" shall mean a fee payable by Borrower to Lender equal to
one-half of one percent (.50%) of the amount of the Initial Advance and each
Subsequent Advance, which shall be payable by Borrower upon Closing Date of the
Initial Advance and each Subsequent Advance, respectively.

     "FINANCIAL STATEMENTS" shall mean (a) with respect to each Individual
Borrower, the financial statements and other documentation required to be
delivered pursuant to Section 5.13 hereof and, (b) with respect of Guarantors,
such financial statements as are required by the terms of the Guaranty, the
Environmental Indemnification Agreements or any of the other Loan Documents.

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     "FISCAL YEAR" shall mean each twelve (12) month period commencing on
January 1 and ending on December 31 during each year of the Term.

     "GAAP" shall mean generally accepted accounting principles in the United
States of America as of the effective date of the applicable financial report.

     "GUARANTOR" shall mean Donatelli & Klein, Inc., Louis Donatelli and
Douglas Donatelli.

     "GUARANTY" shall mean that certain "Guaranty of Payment" executed by
Guarantor in favor of Lender in connection with the Loan.

     "GOVERNMENTAL AUTHORITY" shall mean any court, board, agency, commission,
office or authority of any nature whatsoever for any governmental unit
(federal, state, country, district, municipal, city or otherwise) whether now
or here-after in existence.

     "GROSS INCOME FROM OPERATIONS" shall mean the aggregate of all income,
computed in accordance with GAAP, derived from the ownership and operation of
all Individual Properties from whatever source, including, but not limited to,
Receipts, utility charges, escalations, forfeited security deposits, interest
on credit accounts, service fees or charges, license fees, parking fees, rent
concessions or credits, any lease termination or forfeiture fees of the nature
described in Section 5.5.1(iii), and other required pass-throughs but excluding
sales, use and occupancy or other taxes on receipts required to be accounted
for by the applicable Borrower to any government or governmental agency,
refunds and uncollectible accounts, sales of furniture, fixtures and equipment,
proceeds of casualty insurance and condemnation awards (other than business
interruption or other loss of income insurance), and any disbursements to the
Borrower from the applicable Tax and Insurance Escrow Fund, the applicable
Replacement Reserve Fund or any other escrow fund or reserves established
pursuant to the Loan Documents. Gross income shall not be diminished as a
result of the Mortgages or the creation of any intervening estate or interest
in the Properties or any part thereof.

     "GROUND LEASE" shall mean any ground lease pursuant to which any
Individual Borrower holds a leasehold interest in an Individual Property.

     "HAZARDOUS SUBSTANCES" shall mean asbestos, ACM, PCBs, urea-formaldehyde
and urea-formaldhyde foam insulation, nuclear fuel or waste, petroleum products
and any hazardous waste, toxic substance, related components, related
constituents, pollutant or contaminant, including, without limitation, any
substance defined or treated as a "hazardous substance", "extremely hazardous
substance" or "toxic substance" (or comparable term) in any applicable
Environmental Law and any other material, which may give rise to Environmental
Costs.

     "IMPROVEMENTS" shall have the meaning set forth in the granting clause of
the related Mortgage with respect to each Individual Property.

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     "INDEBTEDNESS" shall mean any principal and accrued interest which is
outstanding under, and all other amounts which may be otherwise payable under
the Note and the other Loan Documents.

     "INDEMNIFIED PARTIES" shall mean each of Lender, the Affiliates of Lender
and the Participants and their respective successors, partners, members,
shareholders, officers, directors, and employees.

     "INDEPENDENT DIRECTOR" shall mean a person who is not at the time of
appointment, and has not been at any time in the preceding five years, (i) a
stockholder, director, officer, member, employee or partner of Borrower or any
Affiliate of Borrower; (ii) a customer, supplier or other Person who derives
more than 10% of his/her/its purchases or revenues from his/her/its activities
with Borrower or any Affiliate of Borrower; (iii) a Person controlling or under
common control with any such stockholder, director, officer, member, employee,
partner, customer, supplier or other Person or (iv) a member of the immediate
family of any such stockholder, director, officer, member, employee, partner,
customer, supplier or other Person.

     "INDIVIDUAL BORROWER" shall mean Borrower or any other Person who receives
an Initial Advance or a Subsequent Advance in accordance with the terms and
provisions hereof and who owns an Individual Property and their respective
successors and assigns; each Individual Borrower shall be identified on Exhibit
A.

     "INDIVIDUAL PROPERTY" shall mean an Individual Borrower's fee or leasehold
interest in each parcel of real property and the improvements thereon owned by
such Individual Borrower from and after the date such Individual Property is
encumbered by a Mortgage, together with all rights pertaining to such Individual
Property and improvements thereon located, as more particularly described in the
Granting Clauses of such Mortgage and referred to therein as the "Mortgaged
Property" or the "Trust Property", as the case may be.

     "INITIAL ADVANCE" shall mean Lender's initial advance of proceeds of the
Loan in the amount of Fifteen Million Eight Hundred Sixteen Thousand Twenty-Six
and 28/100 Dollars ($15,816,626.28) on the date of this Agreement.

     "INSOLVENT" shall mean the inability of a Person to pay its debts as they
become due and/or if the fair market value of such Person's assets do not exceed
its liabilities, including without limitation, subordinated, unliquidated,
disputed or contingent liabilities.

     "INSURANCE PREMIUMS" shall have the meaning ascribed thereto in Section 8.1
hereof.

     "LEASE" shall mean any lease, sublease or subsublease, letting, license,
concession or other agreement (whether now or hereafter in effect) entered into
by Borrower (or its predecessor-in-interest) pursuant to which any Person is
granted a possessory interest in, or right to use or occupy all or any portion
of any space in any Individual Property, and every modification, amendment or
other agreement relating to such lease, sublease, subsublease, or

                                       12

<PAGE>

other agreement entered into in connection with such lease, sublease,
subsublease, or other agreement and every guarantee of the performance and
observance of the covenants, conditions and agreements to be performed and
observed by the other party thereto.

          "LEASING GUIDELINES" shall have the meaning set forth in Section 5.5.3
hereof.

          "LEGAL REQUIREMENTS" shall mean, with respect to each Individual
Property, all federal, state, county, municipal and other governmental statutes,
laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions
of Governmental Authorities affecting such Individual Property or any part
thereof or the construction, use, alteration or operation thereof, or any part
thereof, whether now or hereafter enacted and in force, and all permits,
licenses and authorizations and regulations relating thereto, and all covenants,
agreements, restrictions and encumbrances contained in any instruments, either
of record or known to Borrower, at any time in force affecting such Individual
Property or any part thereof, including, without limitation, any which may (i)
require repairs, modifications or alterations in or to such Individual Property
or any part thereof, or (ii) in any way limit the use and enjoyment thereof.

          "LENDER" shall mean Credit Suisse First Boston Mortgage Capital LLC,
together with its successors and assigns.

          "LENDER'S COUNSEL" shall mean Cadwalader, Wickersham & Taft, located
in New York, new York, and any other law firm, wherever situated, acting as
counsel to Lender.

          "LENDER'S COUNSEL FEES" shall mean all reasonably incurred fees and
disbursements of Lender's Counsel.

          "LIBOR" shall have the meaning ascribed thereto in the Note.

          "LIEN" shall mean, with respect to each Individual Property, any
mortgage, deed of trust, lien, pledge, hypothecation, assignment, security
interest, or any other encumbrance, charge or transfer of, on or affecting the
related Individual Property or any portion thereof or Borrower's interest
therein, including, without limitation, any conditional sale or other title
retention agreement, any financing lease having substantially the same economic
effect as any of the foregoing, the filing of any financing statement, and
mechanic's, materialmen's and other similar liens and encumbrances.

          "LOAN" shall mean the loan in the maximum principal amount of
$58,158,978.71 which shall be advanced by Lender in accordance with the terms
and conditions of this Agreement and which is evidenced by the Note and is
secured by each Mortgage and all of the other Loan Documents.

          "LOAN DOCUMENTS" shall mean, collectively, this Agreement, the Note,
the Mortgage and the Assignment of Leases encumbering each Individual Property,
the Assignment of Management Agreement for each Individual Property, the
Environmental

                                       13

<PAGE>
Indemnification Agreement, the Cash Management Agreement, the Mezzanine Loan
Agreement, the Pledge Agreement and any other document pertaining to the
Individual Properties as well as all other documents evidencing or securing the
Loan or the Mezzanine Loan.

     "LOAN INTEREST" shall have the meaning set forth in Section 7.26.1 hereof.

     "LOAN POOL" shall have the meaning set forth in Section 7.26.1 hereof.

     "LTV RATIO" shall mean the ratio of the Allocated Loan Amount for an
Individual Property as set forth in Exhibit H, as same may be amended from time
to time, to the lesser of (i) the appraised value of such Individual Property
as set forth on an Approved Appraisal or (ii) the Purchase Price paid by an
Individual Borrower for such Individual Property.

     "MAI" shall mean Member of the Appraisal Institute.

     "MAJOR LEASE" shall mean the Leases described on Exhibit D as of the date
hereof and any other Lease executed after the date hereof which (x) is with an
Affiliate of Borrower, or (y) when taken together with all Leases, if any, to
Affiliates of the tenant thereunder demises in excess of 15,000 square feet of
the net rentable square feet in the Improvements of an Individual Property. For
purposes of this definition only, in determining the net rentable square
footage demised under any Lease, all space in the Improvements which may in the
future be demised to the tenant under such Lease by reason of such tenant
exercising any right or option contained in such Lease shall be included in the
calculation of the square footage demised under such Lease.

     "MANAGEMENT AGREEMENT" shall mean, with respect to any Individual
Property, the management agreement pursuant to which the applicable Manager is
to provide management and other services with respect to such Individual
Property.

     "MANAGER" shall mean, with respect to any Individual Property, the manager
under the applicable Management Agreement as identified on Exhibit P.

     "MATERIAL ADVERSE EFFECT" shall mean any event or condition that had a
material adverse effect on (i) all of the Properties taken as a whole, (ii) the
business, prospects, profits, operations or condition (financial or otherwise)
of Borrower, or (iii) the ability of Borrower to repay the principal and
interest of the Indebtedness as it becomes due.

     "MATURITY DATE" shall have the meaning ascribed thereto in the Note.

     "MAXIMUM MANAGEMENT FEE" shall mean with respect to each Individual
Property, an amount not to exceed four percent (4%) per annum of Gross Income
from Operations applicable to such Individual Property.

                                       14
<PAGE>
     "MEZZANINE LOAN" shall mean a portion of the Loan advanced to an
Individual Borrower by Lender which is secured by a pledge to Lender of (i) all
of the limited partnership's interests in FPR Holdings Limited Partnership,
constituting a 99% limited partnership interest therein and (ii) all of the
issued and outstanding capital stock of FPR-GP Holdings, Inc.

     "MEZZANINE LOAN AGREEMENT" shall mean that certain agreement dated the
date hereof between Lender and Borrower pursuant to which Lender shall advance
the Mezzanine Loan.

     "MINIMUM EFFECTIVE RENT" shall mean the effective annual rent to be paid
by the tenant under the proposed Lease determined by dividing the total amount
of fixed or basic rent to be paid by such tenant over the term of the Lease
(without consideration to any renewal or extension term) by the number of
months of the term of the Lease excluding any renewal or extension term, but
including any "free rent" period.

     "MORTGAGE" shall mean, with respect to each Individual Property, that
certain first priority Mortgage/Deed of Trust, Assignment of Leases and Rents
and Security Agreement, executed and delivered by the applicable Individual
Borrower as security for the Loan and encumbering such Individual Property, as
the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time in the form attached hereto as Exhibit X.

     "NEGATIVE COVENANT" shall mean a promise or covenant by any Person to not
act, perform, suffer, permit or consent to.

     "NET OPERATING INCOME" means the amount obtained by subtracting Operating
Expenses from Gross Income from Operations.

     "NOTE" shall mean that certain note of even date herewith in the principal
amount of $58,158, 978.71, made by Borrower in favor of Lender, as the same may
be amended, restated, replaced, supplemented or otherwise modified from time to
time.

     "NOTICES" shall have the meaning ascribed thereto in Section 7.6.

     "OBLIGATED PARTY" shall have the meaning set forth in Section 6.2 hereof.

     "OBLIGATIONS" shall have the meaning ascribed to such term in the Mortgage.

     "OFFER" shall have the meaning set forth in Section 8.5(a).

     "OFFER PERIOD" shall have the meaning set forth in Section 8.4(b).

     "OFFICER'S CERTIFICATE" shall mean a certificate delivered to Lender by
Borrower which is signed by an authorized senior officer of the general partner
or managing member of Borrower.

                                       15

<PAGE>
         "OPERATING EXPENSES" shall mean the aggregate of all expenditures,
computed in accordance with GAAP, of whatever kind relating to the operation,
maintenance and management of all of the Properties that are incurred on a
regular monthly or other periodic basis, including without limitation,
utilities, ordinary repairs and maintenance, insurance, license fees, property
taxes and assessments, advertising expenses, management fees, payroll and
related taxes, computer processing charges, operational equipment or other lease
payments as approved by Lender, and other similar costs, but excluding
depreciation (and other non-cash charges), Debt Service (or any other amounts
paid by Borrower on account of the Indebtedness), and contributions to the
Replacement Reserve Fund, the Tax and Insurance Escrow Fund, and any other
reserves or escrows required under the Loan Documents.

         "ORGANIZATIONAL DOCUMENTS" shall mean, with respect to any Person who
is not a natural person, the certificate or articles of incorporation,
memorandum of association, articles of association, trust agreement, by-laws,
partnership agreement, limited partnership agreement, certificate of partnership
or limited partnership, limited liability company articles of organization,
limited liability company operating agreement or any other material
organizational document, and all shareholder agreements, voting trusts and
similar arrangements with respect to its stock, partnership interests,
membership interests or other equity interests.

         "OTHER CHARGES" shall mean all ground rents, maintenance charges,
impositions other than Taxes, and any other charges, including, without
limitation, vault charges and license fees for the use of vaults, chutes and
similar areas adjoining the Properties, now or hereafter levied or assessed or
imposed against the Properties or any part thereof.

         "OUTSIDE CLOSING DATE" shall have the meaning set forth in Section
2.1.4(c). hereof.

         "PARTICIPANTS" shall have the meaning ascribed thereto in Section
7.8.2 hereof.

         "PARTY IN INTEREST" shall have the meaning set forth Section 4.27
hereof.

         "PAYMENT DATE" shall mean the first (1st) calendar day of each calendar
month commencing with the calendar month of February, 1998.

         "PCBs" shall mean polychlorinated biphenyls.

         "PERMANENT FINANCING" shall mean any financing or loan secured in whole
or in part by an interest in an Individual Property, the proceeds of which will
be used to pay the Allocated Loan Amount applicable to such Individual Property.

         "PERMIT" shall mean all approvals, consents, registrations, franchises,
permits, licenses, variances, certificates of occupancy and other authorizations
with regard to zoning, landmark, ecological, environmental, air quality,
subdivision, planning, building or land use required by any Governmental
Authority for the construction, lawful occupancy and operation of the
Improvements and the actual and contemplated uses thereof.

                                       16

<PAGE>
         "PERMITTED ENCUMBRANCES" shall mean, with respect to each Individual
Property, collectively, (a) the Liens and security interests created by the Loan
Documents, (b) all Liens, encumbrances and other matters disclosed in the Title
Insurance Policies relating to such Individual Property or any part thereof
(including, without limitation, such Liens, encumbrances and other matters with
respect to which Lender is affirmatively insured by such Title Insurance
Policies), (c) Liens, if any, for Taxes imposed by any Governmental Authority
not yet due or delinquent, and (d) such other title and survey exceptions as
Lender has approved or may approve in writing in Lender's reasonable discretion,
which in the aggregate do not materially adversely affect the value or use of
such Individual Property or Borrower's ability to repay the Loan.

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

         "PLACEMENT PARTY" shall have the meaning set forth in Section 7.26.1
hereof.

         "PLEDGE AGREEMENT" shall mean, with regard to any portion of the Loan
which is advanced as a Mezzanine Loan, the Pledge Agreement executed in
connection therewith.

         "PREMISES" shall have the meaning set forth in the granting clause of
the related Mortgage with respect to each Individual Property.

         "PREPAYMENT DATE" shall have the meaning set forth in Section 2.4.

         "PROHIBITED TRANSACTION" shall mean a prohibited transaction as
described under Section 406 of ERISA or Section 4975 of the Internal Revenue
Code which is not the subject of a statutory exemption under Section 408(b) of
ERISA or an administrative exemption granted pursuant to Section 408(a) of
ERISA.

         "PROPERTIES" shall mean, collectively, all of the Individual Properties
which are subject to the terms of this Agreement.

         "PROPERTY BUDGET" shall mean, with respect to each Individual Property,
a schedule prepared by and submitted by the applicable Individual Borrower and
delivered to Lender setting forth the proposed use or intended allocation of the
Initial Advance or Subsequent Advance, as the case may be, towards the Purchase
Price, including Closing Costs, applicable to such Individual Property, any
reserves required hereunder and any other cost or expense incurred in connection
with the Properties, which shall be reasonably acceptable to Lender.

         "PURCHASE PRICE" shall mean the sum of (i) the gross sales price paid
or to be paid by an Individual Borrower to purchase an Individual Property as
established by a written contract between an Individual Borrower and the vendor
of such Individual Property who is not an Affiliate of Borrower, such Individual
Borrower or the SPE Entity of either of them, in

                                       17

<PAGE>
an arm's-length transaction and (ii) the Closing Costs incurred or to be
incurred with respect to the purchase of the applicable Individual Property.

         "RATING AGENCIES" shall mean each of Standard & Poor's Ratings Group, a
division of McGraw-Hill, Inc., Moody's Investors Service, Inc., Duff & Phelps
Credit Rating Co. and Fitch IBCA, Inc., or any other nationally-recognized
statistical rating agency which has been reasonably approved by Lender.

         "RECEIPTS" shall mean any and all rents (including, without limitation,
all "Rents" as defined in the Assignment of Leases and Rents), issues, profits,
payments, income, deposits (other than security deposits which an Individual
Borrower is not entitled to retain or apply to defaults), revenues, proceeds,
reimbursements, receipts and similar items in whatever form (including, without
limitation, cash, checks, money orders or other instruments for the payment of
money) derived from, or generated by, the use, ownership, leasing or operation
of any Individual Property, including, without limitation, (a) real estate tax
refunds, (b) proceeds of any insurance, including, without limitation, rent
interruption insurance, (c) condemnation awards, (d) all sums paid with respect
to a modification, rejection or termination of any Lease (including in any
bankruptcy case) or otherwise paid in connection with an Individual Borrower
taking any action under any Lease (e.g., granting a consent) or waiving any
provision thereof, (e) damages or other payments in settlement of claims by
Borrower against tenants or other third parties in connection with each
Individual Property, and (f) proceeds of any transfer or sale of any items of
the collateral securing the Loan or of any partial interest in such collateral
or the Individual Borrower other than a sale resulting in the satisfaction of
the Loan in full in which event this Agreement will be terminated.

         "RELATED PARTY" shall have the meaning set forth in Section 7.20
hereof.

         "RENT ROLL" shall mean a rent roll for each Individual Property in the
form of Exhibit G annexed hereto. The Rent Roll must indicate whether any tenant
is in arrears in the payment of rent or expense reimbursement obligations under
its Lease and the duration and amount of any such arrears.

         "REPLACEMENT RESERVE ACCOUNT" shall have the meaning set forth in
Section 8.2.

         "REPLACEMENT RESERVE FUND" shall have the meaning set forth in Section
8.2.

         "REPLACEMENTS" shall have the meaning set forth in Section 8.2.2.

         "SECURITIES" shall have the meaning set forth in Section 7.26.1.

         "SECURITIZATION" shall have the meaning set forth in Section 7.26.1
hereof.

         "SECURITIZATION INDEMNIFICATION" shall have the meaning set forth in
Section 7.26 hereof.

                                       18
<PAGE>
     "SECURITIZATION INDEMNIFIED PARTY" shall have the meaning set forth in
Section 7.26 hereof.

     "SERVICER" shall have the meaning ascribed to such term in the Cash
Management Agreement.

     "SIGNIFICANT PARTY" shall mean Borrower, Guarantor and each SPE Entity.

     "SPE ENTITY" shall mean either the managing member or general partner, as
the case may be, of any Individual Borrower.

     "SPREAD" shall have the meaning ascribed thereto in the Note.

     "STATE" shall mean, with respect to an Individual Property, the State or
Commonwealth in which such Individual Property or any part thereof is located.

     "STRUCTURING ADVISORY FEE" shall mean a fee payable by Borrower to Lender
in an amount equal to one percent (1.0%) of the amount of the Loan.

     "SUBSEQUENT ADVANCE" shall have the meaning set forth in Section 2.1.4(b).

     "SUBSEQUENT ADVANCE CLOSING DATE" shall mean the date of the funding of
any subsequent advance of a portion of the proceeds of the Loan pursuant to
Section 2.1.4(b).

     "SUBSEQUENT ADVANCE REQUEST" shall have the meaning set forth in Section
2.1.4(b).

     "TAX AND INSURANCE ESCROW FUND" shall have the meaning set forth in
Section 8.1.1.

     "TAXES" shall mean all real estate and personal property taxes,
assessments, water rates or sewer rents, now or hereafter levied or assessed or
imposed against any of the Properties or part thereof.

     "TITLE INSURANCE POLICY" shall mean, with respect to each Individual
Property, ALTA mortgagee title insurance policy in the form (reasonably
acceptable to Lender) issued with respect to such Individual Property and
insuring the lien of the Mortgage encumbering such Individual Property.

     "TRANSFER" shall have the meaning ascribed thereto in Section 5.1.1 hereof.

     "UCC" or "UNIFORM COMMERCIAL CODE" shall mean the Uniform Commercial Code
as in effect in the applicable State or Commonwealth in which an Individual
Property is located.

     "UNDERWRITTEN NET OPERATING INCOME" shall mean Net Operating Income for
the applicable period calculated based upon (a) Gross Income from Operations
assuming an

                                       19
<PAGE>
occupancy rate equal to the lesser of (i) the actual occupancy rate for such
period, (ii) the market rate occupancy in the geographic area where such
Individual Property is located or (iii) an assumed 95% occupancy rate and (b)
Operating Expenses assuming (i) management fees payable under the Management
Agreement for each Individual Property equal to the greater of the actual
management fees payable under the related Management Agreement during such
period or four percent (4%) of Gross Income from Operations for the related
Individual Property during such period, (ii) expenses incurred for the Capital
Expenditures for the Properties during such period in an amount equal to the
greater of (y) $0.25 per square foot or (z) the amount determined by Lender
based upon the Engineer's Report, such amount being subject to increase based
upon the advice of Lender's structural engineer or Lender's determination in
its reasonable discretion that such amount is not adequate for the maintenance
and operation of the Properties and (iii) appropriate reserves for tenant
improvement costs and leasing commissions for the Properties.

     "WORKING DAY" shall mean any day on which dealings in foreign currencies
and exchange are carried on in London, England and in New York, New York.

     SECTION 1.2 PRINCIPLES OF CONSTRUCTION.

     All references to sections and schedules are to sections and schedules in
or to this Agreement unless otherwise specified. Unless otherwise specified,
the words "hereof," "herein" and "hereunder" and words of similar import when
used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement. Unless otherwise specified, all
meanings attributed to defined terms herein shall be equally applicable to both
the singular and plural forms of the terms so defined.

     SECTION 1.3 APPLICATION TO MEZZANINE LOANS.

     Unless otherwise specifically stated herein, all terms and conditions of
this Agreement shall apply to any portion of the Loan advanced as a Mezzanine
Loan; provided, however, in the event of any inconsistency between the terms
and conditions of this Loan Agreement and the terms and conditions of the
Mezzanine Loan Agreement, the terms and conditions of the Mezzanine Loan
Agreement will control as to the Mezzanine Loan only.

     II. GENERAL TERMS

     SECTION 2.1 LOAN COMMITMENT; DISBURSEMENT TO BORROWER.

     2.1.1 THE LOAN. Subject to and upon the terms and conditions set forth
herein, Lender hereby agrees to make the Loan to Borrower on the Closing Date,
in the principal amount not to exceed Fifty-Eight Million One Hundred Fifty-
Eight Thousand Nine Hundred Seventy-Eight and 71/100 Dollars ($58,158,978.71).

     2.1.2 DISBURSEMENT TO BORROWER. Borrower may request and receive only one
borrowing hereunder in respect of the Loan, which borrowing may be advanced in
any number of disbursements in accordance with the terms hereof, and any amount
borrowed and repaid

                                       20

<PAGE>
hereunder in respect of the Loan may not be reborrowed. Borrower shall, on the
Closing Date of the Initial Advance, receive the Initial Advance, subject to
the direction given by Borrower as to the application of the proceeds of the
Loan which may include payment of certain Closing Costs and to fund the Tax and
Insurance Escrow Fund and any other reserve or escrow fund required hereunder
or in connection with a Mezzanine Loan, all in accordance with the provisions
of this Agreement. Borrower shall, on any Subsequent Advance Closing Date,
receive the related Subsequent Advance, subject to the direction given by
Borrower as to the application of the proceeds of such Subsequent Advance,
which may include payment of certain Closing Costs and to fund the Tax and
Insurance Escrow Fund and any other reserve or escrow fund required hereunder.
No portion of the Loan may be advanced as a Mezzanine Loan after the date
hereof.

          2.13 THE NOTE. The Loan shall be evidenced by the Note of Borrower,
in the original principal amount of the Loan. The Note shall be entitled to the
benefits of this Agreement and to the extent applicable, the Mezzanine Loan
Agreement, and shall be secured by each Mortgage, each Assignment of Leases,
the Pledge Agreement, and all of the other Loan Documents.

          2.14 ADVANCES. (a) Lender shall make, and Borrower shall accept, the
Initial Advance in connection with the acquisition of the Properties identified
by Borrower on the date hereof, subject to and upon the conditions and terms
contained herein including, without limitation, satisfaction of the conditions
contained in Section 3.1 hereof. In the event that any portion of the Initial
Advance is in connection with a Mezzanine Loan, Borrower shall comply with the
provisions of Section 3.3.

          (b) In addition to the Initial Advance, Borrower may request and
receive one or more subsequent advances of a portion of the proceeds of the
Loan not previously advanced (each, a "SUBSEQUENT ADVANCE"), provided, however,
that Borrower shall have satisfied each of the conditions contained in Section
3.2 and provided further that no Subsequent Advances shall be in an amount less
than $15,000,000 unless the undisbursed portion of the Loan shall be less than
$15,000,000 in which event the final Subsequent Advance shall be in the amount
of the undisbursed portion of the Loan. Borrower may submit to Lender an
irrevocable written request for a Subsequent Advance in the form attached
hereto as Exhibit I, or such other form reasonably acceptable to Lender (each
such request being hereinafter referred to as a "SUBSEQUENT ADVANCE REQUEST"),
which Subsequent Advance Request may be submitted to Lender at any time after
the Closing Date of the Initial Advance and not more frequently than once every
calendar month, nor later than thirty (30) days prior to the Outside Closing
Date (as same may be extended pursuant to the provisions of Section 2.1.4(c))
and which shall identify one or more properties (each such property  so
identified being hereinafter referred to as an "ADDITIONAL PROPERTY") which
shall be encumbered by a Mortgage and included as an Individual Property
hereunder as security for the Loan, and set forth the proposed Subsequent
Advance Closing Date with respect to the Subsequent Advance requested. Borrower
hereby acknowledges that Borrower's agreement that each Additional Property so
identified secure the related Subsequent Advance and all prior advances of
proceeds of the Loan is a material inducement to Lender to make the Loan. In
the event that the Subsequent Advance Closing

                                       21
<PAGE>
Date designated by Borrower is not a Payment Date, the Subsequent Advance which
is the subject of the Subsequent Advance Request shall bear interest at the
then current LIBOR plus the Spread until the next succeeding Payment Date when
the Applicable Interest Rate for the entire outstanding principal amount shall
be adjusted in accordance with the terms and conditions of the Note.

     (c)  Lender shall not be obligated to make a Subsequent Advance pursuant
to Section 3.2 hereof after July 1, 1999 (the "OUTSIDE CLOSING DATE").
Notwithstanding the provisions of the immediately preceding sentence, the
Outside Closing Date shall automatically be extended to July 1, 2000 and the
Maturity Date shall automatically be extended to January 1, 2001 upon notice
from Borrower to Lender and upon satisfaction of the following terms and
conditions: (i) Borrower has delivered to Lender notice (the "FACILITY
EXTENSION NOTICE") of Borrower's intention to extend the Maturity Date (which
Facility Extension Notice may be withdrawn or revoked by Borrower at any time
prior to date that such Facility Extension Notice is to become effective), (ii)
no Event of Default shall have occurred and be continuing on the date that
Borrower sends the Facility Extension Notice to Lender or on the date such
Facility Extension Notice is effective nor shall any Event of Default described
in Section 6.1.1 theretofore have occurred, (iii) the Debt Service Coverage
Ratio for the prior twelve (12) calendar months is not less than 1.10:1, and
(iv) simultaneously therewith Borrower pays to Lender the Extension Fee payable
on July 1, 1999.

     (d)  In no event shall the LTV Ratio for any Property (calculated
immediately prior to any Subsequent Advance assuming that said Subsequent
Advance was made) exceed 90%.

     SECTION 2.2 USE OF PROCEEDS. An Individual borrower shall use the proceeds
of the Loan disbursed to it to pay, inter alia, the Purchase Price, the Closing
Costs and other items set forth on a Property Budget applicable to an
Individual Property and any other costs incurred by Borrower or an Individual
Borrower in connection with the ownership or management of the Properties
including, to the extent required hereunder, funding the Equity Reserve Account
or, if in connection with a Mezzanine Loan, only as set forth in Section 3.3.

     SECTION 2.3 LOAN REPAYMENT. Borrower shall repay any outstanding principal
indebtedness of the Loan in full on the Maturity Date, together with interest
thereon to the date of repayment as more fully set forth in the Note and
together with the Exit Fee applicable thereto and the amount of Additional
Interest due to Lender.

     SECTION 2.4 PREPAYMENT; RELEASE OF PROPERTY. (a) Any prepayment of any
portion of the Loan advanced hereunder as a Mezzanine Loan shall be governed by
the provisions of Section 2.6 of the Mezzanine Loan Agreement.

     (b)  Borrower shall not be permitted to prepay all or any portion of the
Loan prior to January 1, 1999. Thereafter Borrower shall have the right
exercisable at any time and form time to time to prepay an amount not less than
$1,000,000 without premium or penalty provided, however, Borrower shall provide
to Lender not less than ten (10) days prior written

                                       22

<PAGE>
notice of such intent to prepay which notice shall specify the date on which
prepayment is to be made (a "PREPAYMENT DATE") which date shall be a Payment
Date. In addition to the amount of such prepayment, Borrower shall also pay to
Lender, together with such prepayment, all interest accrued and unpaid with
respect to such prepayment and the portion of the Exit Fee and Additional
Interest applicable to the amount prepaid. Each notice of prepayment of the Loan
shall specify (i) the applicable Prepayment Date, (ii) the amount of such
prepayment and the amount of interest thereon to be paid in connection therewith
and (iii) any Individual Property that is to be released from the Lien of the
mortgage therein (and related Loan Documents) in connection with such
prepayment. If, after the Debt has been accelerated due to a Default by
Borrower, including, without limitation, any attempt by Borrower to prepay the
Debt at a time when prepayment is prohibited hereunder, Borrower shall tender an
amount sufficient to pay the entire accelerated Debt, such tender shall be
deemed a voluntary prepayment and an attempt to evade the restrictions on
prepayment set forth herein, and Borrower shall, in addition to all other
amounts then payable hereunder, be required to pay Lender a Prepayment Fee equal
to one percent (1%) of the amount of principal being repaid.

         2.4.1 RELEASE OF ALL THE PROPERTIES.

         (a)  Except as set forth in this Section 2.4, no repayment or
prepayment of all or any portion of the Loan shall cause, give rise to a right
to require, or otherwise result in, the release of any Lien of any Mortgage on
any of the Properties. If Borrower has elected to prepay the entire outstanding
principal balance of the Loan, the requirements of Section 2.4 have been
satisfied and Borrower shall have paid to Lender the outstanding principal
amount of the Loan together with all interest accrued thereon, the Exit Fee, the
applicable Additional Interest and any other amounts owed by Borrower to Lender
Pursuant to the Note, this Agreement or any other Loan Document, then all of the
Properties shall be released from the lien of the respective Mortgage (and
related Loan Documents) or, at Borrower's direction, this Agreement, the Note,
each Mortgage and all other Loan Documents held by Lender as security for the
Loan shall be assigned by Lender to such Person designated for such purpose by
Borrower, provided however, such assignment shall be without warranty or
recourse to Lender.

         (b)  In connection with the release of the liens of any Mortgages, the
Borrower shall submit to Lender, not less than ten (10) Business Days prior to
the Prepayment Date, a satisfaction or release of Mortgage (and related Loan
Documents) for each Individual Property for execution by Lender. Such release
shall be in a form appropriate in each jurisdiction in which an Individual
Property is located. In addition, Borrower shall provide all other documentation
Lender reasonably requires to be delivered by Borrower in connection with such
release and Lender shall execute and deliver same as directed by Borrower. All
reasonably costs incurred in connection with any action taken or required by
Lender hereunder shall be paid by Borrower.

         2.4.2 RELEASE OF INDIVIDUAL PROPERTIES. Subject to the terms of Section
2.4 and any restriction on the right of Borrower to prepay the Loan, Borrower on
one or more occasions may obtain (i) the individual release of an Individual
Property from the lien of the

                                       23
<PAGE>
Mortgage thereon (and related Loan Documents) and (ii) the release of Borrower's
obligations under the Loan Documents and any escrows or reserves held by Lender
with respect to such Individual Property (other than those expressly stated to
survive), upon satisfaction of each of the following conditions:

         (a)  The requirements of Section 2.4 shall have been satisfied.

         (b)  Previously or simultaneously therewith, Borrower shall have (i)
prepaid the Loan in the amount of the Adjusted Release Amount for such
Individual Property and (ii) paid to Lender all interest accrued and unpaid with
respect to the Allocated Loan Amount for such Individual Property and any other
amounts due and owing to Lender with respect to such Individual Property
pursuant to the Note, the applicable Mortgage, this Agreement or the other Loan
Documents.

         (c)  Borrower shall pay or have paid to Lender the applicable Exit Fee
and Additional Interest applicable to the Individual Property being released.

         (d)  All payments of principal of, and interest on, the Loan
theretofore or at such time required to be paid shall have been paid or
simultaneously therewith shall be paid and all other amounts theretofore or at
such time required to be paid under the Note, this Agreement or the other Loan
Documents shall be or shall have been received by Lender (including, without
limitation, all reasonable costs and expenses incurred by Lender in connection
with such release).

         (e) Borrower shall submit to Lender, not less than ten (10) days prior
to the date of such release, a release of mortgage lien (and related Loan
Documents) for such Individual Property for execution by Lender. Such release
shall be in a form appropriate for the jurisdiction in which the Individual
Property is located. In addition, Borrower shall provide all other documentation
Lender reasonably requires or is legally necessary to be delivered in connection
with such release.

         (f)  Borrower shall have delivered an Officer's Certificate to Lender
prior to the date such Individual Property is to be released from the Lien of
the Mortgage thereon (and related Loan Documents) certifying, as of the date of
such release, that the conditions in this Section have been satisfied, with
detailed calculations indicating the derivation of the amounts then payable in
connection with such release pursuant to this Section 2.4.2.

         (g)  Immediately prior to, and after giving effect to, the proposed
release, no Event of Default shall have occurred and be continuing.

         (h)  In connection with said release, except to the extent that
subparagraph (j) of this Section 2.4.2 is applicable, the Individual Property
which is the subject of the release shall be transferred to a party other than
Borrower, any Individual Borrower or any SPE Entity so that the provisions of
Section 9.1(f) shall not be violated.

                                       24
<PAGE>
     (i) After giving effect to such release, the Debt Service Coverage Ratio
for all of the Properties then remaining subject to the Lien of the Mortgages
projected by Lender with respect to the twelve (12) full calendar months
immediately following the release of such Individual Property shall be greater
(a "DSCR INCREASE") than the greater of (i)1.0:1 (the "CLOSING DATE DEBT SERVICE
COVERAGE RATIO") and (ii) the Debt Service Coverage Ratio for all of the
Properties with respect to the twelve (12) full calendar months immediately
prior to the date of such release, provided however, in the event that payment
of the Adjusted Release Amount is not sufficient to cause a DSCR Increase then
in that event Borrower shall deliver to Lender an amount equal to one hundred
(100%) percent of the gross sales price of the Individual Property to be
released, less applicable Closing Costs and income taxes paid by Borrower upon
such sale to a Governmental Authority in connection with such sale, which amount
shall not be less than the Adjusted Release Amount applicable to such Individual
Property in which event Borrower shall contribute such additional funds (the
"ADDITIONAL RELEASE AMOUNT") necessary for the amount delivered to Lender to
equal the Adjusted Release Amount.

     (j) In connection with a sale of an Individual Property to an Affiliate of
(a) Borrower, (b) and Individual Borrower or (c) an SPE Entity, in addition to
the conditions set forth in subparagraphs (a) through (i) of this Section 2.4.2,
Lender shall have no obligation to release an Individual Property unless the
following two (2) additional requirements are satisfied:

          (1) The LTV Ratio for such Individual Property on the Closing Date for
              the Initial Advance or Subsequent Advance applicable to such
              Individual Property was 75% or less; and

          (2) The Debt Service Coverage Ratio for all of the Properties
              remaining encumbered by a Mortgage following such release shall
              not be less than 1.20:1.

          Upon failure of Borrower to comply with the terms of this Section,
Lender shall have no obligation to release the Individual Property.

     2.4.3 RELEASE ON PAYMENT IN FULL. Lender shall, upon the written request
and at the expense of Borrower, upon payment in full of all principal and
interest on the Loan and all other amounts due are payable under the Loan
Documents in accordance with the terms and provisions of the Note and this Loan
Agreement, release the liens of each Mortgage not theretofore released or, at
Borrower's direction, this Agreement, the Note, each Mortgage and all other Loan
Documents held by Lender as security for the Loan shall be assigned by Lender to
such Person designated by Borrower for such purpose, provided however, such
assignment shall be without warranty or recourse to Lender.

     SECTION 2.5 INTEREST. Interest on the Loan and the Note shall accrue at the
Applicable Interest Rate and shall be calculated in accordance with the terms of
the Note.

                                       25
<PAGE>
     Section 2.6  PAYMENTS AND COMPUTATIONS.

     2.6.1  MAKING OF PAYMENTS. Each payment by Borrower hereunder or under the
Note shall be made in funds settled through the New York Clearing House
Interbank Payment System or other funds immediately available to Lender by
12:00 noon, New York City time, on the date such payment is due, to Lender by
deposit to the following account:

                         LaSalle National Bank
                         Chicago, IL  60603
                         ABA #0701000505
                         Account #67-7866-70-9
                         Account Name: FRP Realty LP
                         Attn: Mary Collier
                               (312) 904-7815

     Notwithstanding the foregoing, upon three (3)     Business Days' notice to
Borrower, Lender may designate such other account for such purpose.
Notwithstanding the foregoing, all payments made in connection with the release
of an Individual Property from the Lien of the Mortgage thereon (and related
Loan Documents) pursuant to Section 2.4.2 or the payment in full of the Loan and
all other amounts due and payable under the Loan Documents shall be made in
funds settled through the New York Clearing House Interbank Payment System or
other funds immediately available to Lender by 4:00 p.m., New York City time,
to such account as Lender may designate. Whenever any payment hereunder or
under the Note shall be stated to be due on a day which is not a Working Day,
such payment shall be made on the immediately preceding Working Day. Time is of
the essence as to all payments due under this Loan Agreement.

     2.6.2 COMPUTATIONS. Interest payable hereunder or under the Note by
Borrower shall be calculated on the basis of the actual number of days elapsed
and a three hundred sixty (360) day year.

     2.6.3 LATE PAYMENT CHARGE. If any principal, interest or any other sums
due under the Loan Documents is not paid by Borrower not later than the tenth
(10th) day after which it is due, Borrower shall pay to Lender upon demand an
amount equal to the lesser of three percent (3%) of such unpaid sum or the
maximum amount permitted by applicable law in order to defray the expense
incurred by Lender in handling and processing such delinquent payment and to
compensate Lender for the loss of the use of such delinquent payment. Any such
amount shall be secured by each Mortgage and the other Loan Documents.

     III. CONDITIONS PRECEDENT

     Section 3.1 CONDITIONS PRECEDENT TO INITIAL ADVANCE.

     The obligation of Lender to make the Initial Advance hereunder is subject
to the fulfillment by Borrower or waiver by Lender of the following conditions
precedent no later

                                       26
<PAGE>
than the Closing Date of the Initial Advance and the funding of the Initial
Advance shall be conclusive evidence of the fulfillment of each of the following
conditions except as expressly stated to survive in a separate agreement between
an applicable Individual Borrower and Lender executed and delivered
contemporaneously therewith; notwithstanding the foregoing, the obligation of
Lender to make the portion of the Initial Advance which is a Mezzanine Loan
shall be subject to satisfaction of the conditions precedent set forth in this
Section 3.1(a), (b), (e), (f), (i), (j), (n), (x), (y) and Section 3.3.

         (a)  Representations and Warranties; Compliance with Conditions.  The
representations and warranties of Borrower contained in this Agreement and the
other Loan Documents shall be true and correct in all material respects on and
as of the Closing Date of the Initial Advance, and no Default or Event of
Default shall have occurred and be continuing, and Borrower shall be in
compliance in all material respects with all terms and conditions set forth in
this Agreement and in each other Loan Document on its part to be observed or
performed.

         (b)  Loan Agreement and Note.  Lender shall have received a copy of
this Agreement and the Note, in each case, duly executed and delivered on behalf
of Borrower.

         (c)  Delivery of Loan Documents; Title Insurance; Reports; Leases.

              (i)  Mortgages, Assignments of Leases.  Lender shall have received
from each Individual Borrower fully executed and acknowledged counterparts of
the Mortgages and the Assignments of Leases relating to its respective
Individual Properties and evidence that counterparts of the Mortgages and
Assignments of Leases have been delivered to the title company for recording so
as to effectively create upon such recording, valid and enforceable Liens upon
such Properties, of the requisite priority, in favor of Lender (or such other
trustee as may be required or desired under local law), subject only to the
Permitted Encumbrances and such other Liens as are permitted pursuant to the
Loan Documents. Lender shall have also received from each Individual Borrower
fully executed counterparts of the Environmental Indemnification Agreement, and
the Assignment of Management Agreement relating to its respective Individual
Properties.

             (ii)  Title Insurance.  Lender shall have received for each
Individual Property a Title Insurance Policy issued by either Lawyers Title
Insurance Company or Commonwealth Land Title Insurance Company and dated as of
the Closing Date, with reinsurance and direct access agreements reasonably
acceptable to Lender. Each Title Insurance Policy shall (A) provide coverage in
amounts equal to the Allocated Loan Amount for the applicable Individual
Property if a "tie-in" or similar endorsement is available or if such "tie-in"
or similar endorsement is not available, in an amount equal to 125% of the
Allocated Loan Amount applicable to such Individual Property satisfactory to
Lender, (B) insure Lender that the relevant Mortgage creates a valid Lien on the
Individual Property encumbered thereby of the requisite priority, free and clear
of all exceptions from coverage other than Permitted Encumbrances and standard
exceptions and exclusions from coverage (as modified by the terms of any
endorsements), (C) contain such legally available endorsements

                                       27

<PAGE>
described on Exhibit R and such affirmative coverages as Lender may reasonably
request but only to the extent that the endorsements set forth on Exhibit R are,
in the reasonable opinion of Lender's Counsel insufficient, inappropriate or
inadequate given the nature or terms of the title issue under consideration, and
(D) name Lender, its successors and assigns, as the insured. Lender also shall
have received evidence that all premiums in respect of such endorsements,
modifications and Title Insurance Policies have been paid or will be paid
simultaneously with the closing of the Initial Advance.

              (iii) Survey.  Lender shall have received a current title survey
for each Individual Property, certified to the title company and Lender and
their successors and assigns, in form, scope and substance as set forth on
Exhibit S.

              (iv)  Insurance.  Lender shall have received valid binders and
certificates of insurance for the policies of insurance required under the
applicable Mortgage encumbering each Individual Property, all reasonably
satisfactory to Lender in its sole discretion, and evidence of the payment of
all Insurance Premiums payable for the existing policy period. Borrower shall
deliver to Lender copies of such policies of insurance no later than fifteen
(15) days after the Closing Date, which policies shall be reasonably
satisfactory to Lender in its sole discretion.

              (v)   Environmental Reports.  Lender shall have received a Phase I
Environmental Report in respect of each Individual Property, which Phase I
Environmental Report shall include, among other things, the results of testing
for the presence of ACM and other Hazardous Substances, in each case reasonably
satisfactory to Lender. Lender shall have received a reasonably satisfactory
Phase II Environmental Report and/or reasonably satisfactory results of other
environmental investigations in respect of each Individual Property if such
Phase II Environmental Report or other environmental investigation is
recommended in the Phase I Environmental Report.

              (vi)  Zoning; Compliance with Laws.  Lender shall have received
evidence, in form and substance reasonably satisfactory to Lender, confirming
that each Individual Property is in substantial compliance with such Legal
Requirements applicable to the use and occupancy of each Individual Property for
its intended purpose. Such evidence shall be based upon Borrower's title to each
Individual Property and shall not depend upon easements or other similar
interests unless disclosed in writing to Lender and approved by Lender.

              (vii) Encumbrances.  Borrower shall have taken or caused to be
taken such actions in such a manner so that Lender has a valid and perfected
Lien of the requisite priority as of the Closing Date with respect to each
Mortgage in the applicable Individual Property, subject only to applicable
Permitted Encumbrances and such other Liens as are permitted pursuant to the
Loan Documents.

         (d)  Related Documents.  Each additional document not specifically
referenced in this Section 3.1, but reasonably relating to the transactions
contemplated herein,

                                       28

<PAGE>
shall have been duly authorized, executed and delivered by all parties thereto
and Lender shall have received and reasonably approved certified copies thereof.

     (e)  Delivery of Organizational Documents.  Borrower shall deliver or
cause to be delivered to Lender copies, certified by the applicable Individual
Borrower or the appropriate public filing office (as to such documents required
by law to be filed), of all organizational documentation of each Individual
Borrower and its SPE Entity, and/or the formation, existence, good standing
and/or qualification to do business of such other Persons, as Lender may
reasonably request in its sole discretion, including, without limitation, good
standing certificates, qualifications to do business in the appropriate
jurisdictions, resolutions authorizing the entering into of the Loan and
incumbency certificates, all in form and substance reasonably satisfactory to
Lender.

     (f)  Opinions of Borrower's Counsel.  Lender shall have received opinions
of Borrower's counsel with respect to due execution, authority and
enforceability of the Loan Documents, all such opinions in form, scope and
substance satisfactory to Lender in its reasonable discretion.

     (g)  Property Budgets.  Borrower shall have delivered, and Lender shall
have approved, the Property Budget for the applicable Individual Property.

     (h)  Basic Carrying Costs.  Subject to any provision of the Mortgage
intended to encumber an Individual Property which allows an Individual Borrower
the conditional right to contest all or any portion of the Basic Carrying Costs
of an Individual Property and provided that an Individual Borrower complies with
same, Borrower shall have paid all Basic Carrying Costs relating to each of the
Properties which are in delinquent.

     (i)  Organizational Proceedings.  All organizational proceedings or
actions taken or required to be taken in connection with any action of any
Individual Borrower, Guarantor or the SPE Entity of either or any of them shall
have occurred and evidence thereof reasonably satisfactory in form and
substance to Lender shall be delivered to Lender.

     (j)  Payments.  All payments, deposits or escrows required to be made or
established by Borrower under this Agreement, the Note and the other Loan
Documents on or before the Closing Date shall have been paid or shall be paid
or established from the proceeds of the Initial Advance simultaneously with the
closing of the Initial Advance.

     (k)  Engineering Reports.  Lender shall have received an Engineering
Report with respect to each Individual Property, which report shall include,
among other things, an analysis of Replacement Reserve Fund requirements with
respect to such Individual Property.

     (l)  Financial and Operating Statements.  Lender shall have received
operating statements for each Individual Property, verified by a certified
public accounting firm acceptable to Lender, for each Individual Property for
Fiscal Years designated by Lender and a current trailing twelve (12) month
operating statement for each Individual Property or in

                                       29

<PAGE>
the event that such operating statements do not exist, Borrower shall provide
any relevant historical data in Borrower's possession together with pro forma
operating statements.

     (m) Utility Services and Parking. Lender shall have received evidence
reasonably satisfactory to Lender that each Individual Property is served by or
has access to all public utilities and contains parking necessary for the use
and enjoyment of such Individual Property.

     (n) Credit Reports and Searches. Lender shall have received such credit
reports, references, UCC and judgement searches and other information with
respect to each Individual Borrower and their respective SPE Entity and the
Managers, as Lender may reasonably request, all of which shall be reasonably
satisfactory to Lender.

     (o) Equipment Leases. Lender shall have received copies of all material
equipment leases and material leases of personal property in effect as of the
Closing Date of the Initial Advance with respect to each Individual Property,
each of which shall be certified by the applicable Individual Borrower and shall
be reasonably satisfactory to Lender.

     (p) Underlying Asset Documentation. Lender shall received a certified copy
of each purchase and sale agreement pursuant to which each Individual Property
was or will be acquired by the applicable Individual Borrower, which shall be
reasonably satisfactory in form and substance to Lender in its sole discretion.

     (q) Estoppel Certificates. Borrower shall have delivered to Lender an
estoppel certificate executed by the tenant(s) under the Leases demising, in
the aggregate, seventy-five percent (75%) of the rentable square footage of
each related Individual Property. Borrower shall be deemed to have delivered
estoppel certificates with respect to U.S. Government tenants that provided a
letter substantially in the form attached hereto as Exhibit C Government is
delivered to Lender. All other estoppel certificates shall be in the form
attached hereto as Exhibit C and shall establish, inter alia, that said tenants
are in possession of the portion of the Property demised by such Lease(s) and
paying rent.

     (r) Leases and Rent Rolls. Lender shall have received certified copies of
all Leases, each of which shall be satisfactory to Lender. Lender shall have
received a current certified rent roll of each Individual Property (i) listing
each and every Lease with respect to such Individual Property, by the names of
all tenants and square footage or other identification of space leased, (ii)
listing the monthly rental and all other charges payable under each Lease and
the date to which such rental and other charges have been paid, (iii) listing
the term of each Lease, the date of occupancy and the date of expiration, (iv)
setting forth any rent arrears and amounts taken in settlement of outstanding
arrears, (v) listing any collections of rent for more than one (1) month
in advance, (vi) describing any material special provision, concession or
inducement granted to the tenant under each Lease and (vii) setting forth such
other information as is reasonably requested by Lender. Each such rent roll
shall be in the form attached hereto as Exhibit D.

                                       30
<PAGE>
          (s)  Subordination and Attornment. Lender shall have received
subordination, non-disturbance and attornment agreements in the form attached
hereto as Exhibit E from the tenants occupying, in the aggregate, not less than
seventy-five percent (75%) of the gross leasable area of each Individual
Property.

          (t)  Tax Lot.  Lender shall have received evidence that each
Individual Property constitutes a separate tax lot, which evidence shall be
reasonably satisfactory in form and substance to Lender.

          (u)  Management Agreement. Lender shall have received either (i) a
certified copy of the Management Agreement with respect to each Individual
Property satisfactory in form and substance to Lender together with an
Assignment of Management Agreement with respect to such Management Agreement
for such Individual Property or (ii) an amendment to an existing Management
Agreement adding the applicable Individual Properties thereto.

          (v)  Approved Appraisal. Lender shall have received an Approved
Appraisal covering each Individual Property which is the subject of the
Initial Advance which Approved Appraisal shall be satisfactory in all respects
to Lender.

          (w)  Satisfactory Underwriting. The results of Lender's underwriting
and due diligence review of the Individual Property, based on Lender's
reasonable, good faith evaluation of all of the materials and information
submitted by Borrower and otherwise obtained by Lender with respect to such
Individual Property, shall be satisfactory to Lender and which shall establish
to Lender's satisfaction that the Debt Service Coverage Ratio for each
applicable Individual Property is not less than 1.10:1 and that the LTV Ratio
shall not exceed 90%.

          (x)  Additional Documentation. Lender shall have received any other
due diligence items customarily requested by Lender in connection with the
origination of mortgage loans comparable to the Loan.

          (y)  Loan Fee and Transaction Costs. Borrower shall have paid Lender
(i) the Structuring Advisory Fee and (ii) the Facility Fee relative to the
Initial Advance. Borrower also shall have paid or reimbursed Lender for all
costs and expenses in connection with the origination of the Loan and the
Initial Advance, including, without limitation, the Lender's Counsel Fees, the
costs of all appraisals and engineering and environmental reports, any fees and
expenses due to Situs Capital Service or other consulting professional providing
due diligence or similar services to Lender, all title insurance premiums, all
survey charges, any mortgage, documentary stamp and intangible taxes, all
recording charges, any brokerage fees and commissions, any auditor's fees, any
initial fees and expenses of Servicer and any initial fees and expenses for the
establishment of any escrow or reserve account established pursuant to the Loan
Documents.

          (z)  Material Adverse Change. As of the Closing Date of the Initial
Advance, the income and expenses of each Individual Property which is the
subject of the Initial Advance, the financial statements of Borrower, the
occupancy rate, Leases and rent roll

                                       31
<PAGE>
with respect to each Individual Property which is the subject of the Initial
Advance and all other features of the transactions shall be as represented to
Lender and all documents and communications delivered to Lender in order to
induce Lender to make the Initial Advance shall be without material adverse
change and Lender shall have received an Officers' Certificate as to the
foregoing. No portion of any Individual Property which is the subject of the
initial Advance shall have been damaged prior to the Closing Date of the Initial
Advance and not repaired to Lender's reasonable satisfaction unless a reserve or
other provision for repair of such damage satisfactory to Lender has been
established or made. No portion of any Individual Property which is the subject
of the Initial Advance shall have been taken in condemnation or other similar
proceeding. No condemnation or other similar proceeding shall be pending that
may materially and adversely affect any Individual Property which is the subject
of the Initial Advance or for which reserves or other provisions for restoration
of the affected Individual Property reasonably satisfactory to Lender in its
sole discretion have not been established. No structural change in the physical
condition of any portion of any Individual Property which is the subject of the
Initial Advance shall have occurred since the date of the related Engineering
Report delivered to Lender. None of Borrower, Borrower's SPE Entity or other
Person directly or indirectly in control of, or controlled by, Borrower or
tenants under any Leases deemed by Lender to be material to the security for the
loan or guarantors of any such Leases deemed by Lender to be material to the
security for the loan or guarantors of any such Leases shall be the subject of
any bankruptcy, reorganization or insolvency proceeding. No Individual Borrower
or general or limited partner or member of any Individual Borrower shall be in
default under any loan or financing provided to such Individual Borrower,
general or limited partner or member, other than defaults under equipment lease
financings or resulting from the failure to pay trade payables, which financings
or trade payables are being disputed in good faith. No ACM or other Hazardous
Substances shall have been discovered at any individual Property other than as
disclosed in the related Phase I Environmental Report delivered to Lender and,
if applicable, Phase II Environmental Report delivered to Lender, unless
provisions for the remediation of such ACM or other Hazardous Substances
satisfactory to Lender in its reasonable discretion have been made.

     SECTION 3.2 CONDITIONS PRECEDENT TO SUBSEQUENT ADVANCES INVOLVING
ADDITIONAL PROPERTIES.

     The obligation of Lender to may any Subsequent Advance hereunder in
connection with which any Additional Property is to be added as security for the
Loan is subject to the fulfillment by the application Individual Borrower or
waiver by Lender of the following conditions precedent no later than the
Subsequent Advance Closing Date with respect to such Subsequent Advance and the
funding of such Subsequent Advance shall be conclusive evidence of the
fulfillment of each of the following conditions as to such Additional Property
which is the subject or the Subsequent Advance, except as expressly stated to
survive in a separate agreement between an applicable Individual Borrower and
Lender executed and delivered contemporaneously therewith:

     (a)  Subsequent Advance Request. Lender shall have received a Subsequent
Advance Request in accordance with Section 2.1.4(b).

                                       32
<PAGE>
          (b)  Representations and Warranties; Defaults. The representations and
warranties contained in this Agreement and the other Loan Documents shall be
true and correct in all material respects on and as of the related Subsequent
Advance Closing Date with respect to any Individual Borrower or Additional
Borrower (as the case may be) requesting a Subsequent Advance and assuming the
Loan and the Loan Documents in connection with such Subsequent Advance and each
Additional Property to be encumbered with a Mortgage in connection with such
Subsequent Advance, no Default or Event of Default shall have occurred and be
continuing and such Individual Borrower or such Additional Borrower (as the case
may be), shall be in compliance in all material respects with all terms and
conditions set forth in this Agreement and in each Loan Document on such
Individual Borrower's or such Additional Borrower part to be observed or
performed. Lender shall have received an Officer's Certificate confirming the
foregoing.

          (c)  Assumption and Modification of Existing Loan Documents.

               (i)  If an Additional Borrower is to acquire title to any
Additional Property to be added as security for the Loan in connection with such
Subsequent Advance, (A) such Additional Borrower shall have executed,
acknowledged and delivered to Lender an assumption agreement in the form
attached hereto as Exhibit T, pursuant to which, among other things, such
Additional Borrower shall assume, jointly and severally, the Loan and all
obligations of Borrower pursuant to the Note, this Agreement and the other Loan
Documents, and (B) such Additional Borrower and each Individual Borrower shall
execute and deliver to Lender the Contribution Agreement or an amendment to the
Contribution Agreement adding such Additional Borrower as a party thereto, as
applicable, which Contribution Agreement or amendment shall be the form attached
hereto as Exhibit F.

               (ii) Each Individual Borrower shall have executed, acknowledged
and delivered to Lender any modification or amendment to any existing Mortgage
or Assignment of Leases or any notice of such Subsequent Advance that Lender
reasonably determines is necessary or advisable to ensure that such Mortgage or
Assignment of Lease secures such Subsequent Advance and evidence that
counterparts of such modification, amendment or notice have been delivered to
the title company for recording and any other modification, amendment or
supplement to this Agreement or the other Loan Documents that Lender may require
in connection with such Subsequent Advance and the related addition of any
Additional Property as security for the Loan (including the modification of any
Exhibit to this Agreement to reflect information specific to such Property),
which modification, amendment or supplement does not modify or amend any
material term of any Loan Document in a manner that has a material adverse
effect on Borrower unless such modification, amendment or supplement is required
due to the failure of any Individual Borrower, such Additional Borrower, any
Individual Property or any such Additional Property to fulfill the conditions
set forth in this Section 3.2.

          (d)  Delivery of Mortgage, UC Financing Statements, etc. An Individual
Borrower or an Additional Borrower shall have acquired title to any Additional
Property to be added as security for the Loan in connection with such Subsequent
Advance and such Individual Borrower or Additional Borrower shall have executed,
acknowledged and delivered

                                       33

<PAGE>
to Lender (i) a Mortgage, an Assignment of Leases and one or more UCC-1
Financing Statements with respect to each such Additional Property and evidence
that counterparts of such Mortgage, Assignment of Leases and UCC-1 Financing
Statements have been delivered to the title company for recording or filing, as
applicable, so as to effectively create upon such recording valid and
enforceable Liens upon such Additional Property, of the requisite priority, in
favor of Lender (or such other trustee as may be desired under local law),
subject only to the Permitted Encumbrances and such other Liens as are
permitted pursuant to the Loan Documents; and (ii) an Environmental
Indemnification Agreement with respect to each such Additional Property.

     (e) Title Insurance. Lender shall have received (i) any "tie-in" or
similar endorsement to each such Title Insurance Policy available with respect
to any Title Insurance Policy insuring the Lien of any Mortgage encumbering an
Additional Property delivered to Lender in connection with such Subsequent
Advance and (ii) a Title Insurance Policy (or a marked, signed and redated
commitment to issue such Title Insurance Policy) insuring the Lien of any
Mortgage encumbering an Additional Property delivered to Lender in connection
with such Subsequent Advance, issued by Lawyers Title Insurance Company or
Commonwealth Land Title Insurance Company and dated as of the Subsequent Advance
Closing Date, with reinsurance and direct access agreements reasonably
acceptable to Lender, which reinsurance agreements shall not include any
exception for creditors' rights if such exception may be omitted by the issuer
of such reinsurance agreements. Such Title Insurance Policies shall (1) provide
coverage in an amount equal to the amount of the Allocated Loan Amount of the
related Additional Property if the "tie-in" or similar endorsement described
above is available, or, if such "tie-in" or similar endorsement is not
available, in an amount equal to one hundred twenty-five percent (125%) of the
Allocated Loan Amount of the applicable Additional Property, (2) insure Lender
that the relevant Mortgage creates a valid lien on such applicable Additional
Property encumbered thereby of the requisite priority, free and clear of all
exceptions from coverage other than Permitted Encumbrances and standard
exceptions and exclusions from coverage (as modified by the terms of any
endorsements), (3) contain such legally available endorsements described on
Exhibit R and such affirmative coverages as Lender may reasonably request, and
(4) name Lender, its successors and assigns, as the insured. Lender also shall
have received evidence that all premiums in respect of such endorsements,
modifications and Title Insurance Policies have been paid or will be paid
simultaneously with the closing of such Subsequent Advance.

     (f) Survey. Lender shall have received a current title survey for each
Additional Property to be encumbered by a Mortgage in connection with such
Subsequent Advance, certified to the title company and Lender and their
successors and assigns, in form and substance as set forth on Exhibit S.

     (g) Insurance. Lender shall have received valid binders and certificates
of insurance for the policies of insurance required under the applicable
Mortgage encumbering each Individual Property to be encumbered by a Mortgage in
connection with such Subsequent Advance, all reasonably satisfactory to Lender
in its sole discretion, and evidence of the payment of all Insurance Premiums
payable for the existing policy period. Borrower shall

                                       34
<PAGE>
deliver to Lender copies of such policies of insurance no later than fifteen
(15) days after the Subsequent Advance Closing Date with respect to such
Subsequent Advance, which policies shall be reasonably satisfactory to Lender
in its sole discretion.

     (h)  Environmental Reports. Lender shall have received a Phase I
Environmental Report in respect of each Additional Property to be encumbered by
a Mortgage in connection with such Subsequent Advance, which Phase I
Environmental Report shall include, among other things, the results of testing
for the presence of ACM and other Hazardous Substances in each case reasonably
satisfactory to Lender. Lender shall have received a Phase II Environmental
Report and the results of other environmental investigations in respect of each
Additional Property to be encumbered by a Mortgage in connection with such
Subsequent Advance if such Phase II Environmental Report or other environmental
investigation is recommended in the Phase I Environmental Report, each such
Phase II Environmental Report or such results of other environmental
investigations to be reasonably satisfactory to Lender.

     (i)  Zoning: Compliance with Laws. Evidence, in form and substance
reasonably satisfactory to Lender, confirming that each Additional Property to
be encumbered by a Mortgage in connection with such Subsequent Advance and the
use thereof is in substantial compliance with such applicable Legal
Requirements for its intended purpose. Such evidence shall be based upon title
to each such Additional Property held by the related Individual Borrower or
Additional Borrower and shall not depend upon easements or other similar
interests unless disclosed in writing to Lender and approved by Lender.

     (j)  Encumbrances. The applicable Individual Borrower or Additional
Borrower shall have taken or caused to be taken such actions in such a manner
so that lender has a valid and perfected Lien of the requisite priority as of
the Subsequent Advance Closing Date with respect to each Mortgage encumbering an
Additional Property to be delivered in connection with such Subsequent Advance,
subject only to applicable Permitted Encumbrances and such other Liens as are
permitted pursuant to the Loan Documents.

     (k)  Related Documents. Each additional document not specifically
referenced in this Section 3.2, but reasonably relating to the transactions
contemplated herein, shall have been duly authorized, executed and delivered by
all parties thereto and Lender shall have received and reasonably approved
certified copies thereof.

     (l)  Organizational Documents. (i) Each Individual Borrower submitting a
Subsequent Advance Request shall deliver or cause to be delivered to Lender
updates or confirmations as to continued effectiveness without modification,
certified by such Individual Borrower or the appropriate filing office (as to
such documentation required by law to be filed), of all organizational
documentation applicable to such Individual Borrower and its SPE Entity, as
applicable, and/or the formation, existence, good standing and/or qualification
to do business of such Persons delivered to Lender in connection with the
Initial Advance or any prior Subsequent Advance and (ii) if an Additional
Borrower is to acquire title to any Additional Property to be added as security
for the Loan in connection with such Subsequent

                                       35
<PAGE>
Advance, such Additional Borrower shall deliver or cause to be delivered to
Lender copies certified by such Additional Borrower or the appropriate public
filing office, (as to such documentation required by law to be filed), of all
organizational documentation related to such Additional Borrower and its SPE
Entity, as applicable, and/or the formation, existence, good standing and/or
qualification to do business of such Persons, as Lender may request in its
reasonable discretion, including, without limitation, good standing
certificates, qualifications to do business in the appropriate jurisdictions,
resolutions authorizing the assumption of the Loan and the other transaction
contemplated by this Agreement and incumbency certificates, all in form and
substance reasonably satisfactory to Lender in its sole discretion.

     (m)  Opinions of Additional Borrower's Counsel. Lender shall have received
opinions of Borrower's counsel, which counsel shall be reasonably acceptable to
Lender, with respect to due execution, authority and enforceability of any of
the documents described in clauses (c) and (d) above all such opinion in form,
scope and substance customary for rated transactions and satisfactory to Lender
in its reasonable discretion.

     (n)  Property Budgets. Borrower shall have delivered, and Lender shall have
approved, the Property Budget for the applicable Individual Property.

     (o)  Basic Carrying Costs. Subject to any provision of the Mortgage
intended to encumber an Additional Property which allows an Individual Borrower
the conditional right to contest all or any portion of the Basic Carrying Costs
of an Individual Property and provided that the Additional Borrower complies
with same, Additional Borrower shall have paid all Basic Carrying Costs relating
to each Additional Property to be encumbered by a Mortgage in connection with
such Subsequent Advance which are delinquent.

     (p)  Escrows. Additional Borrower shall make such additional deposits to
the Tax and Insurance Escrow Fund, the Replacement Reserve Fund, as required
pursuant to the terms and provisions of the Agreement with respect to each
Additional Property to be encumbered by a Mortgage in connection with such
Subsequent Advance.

     (q)  Organizational Proceedings. All organizational proceedings or actions
taken or required to be taken in connection with any action of Borrower,
Guarantor or the SPE Entity of either of them hereunder shall have occurred and
evidence thereof incidental to any action of Borrower, Guarantor or the SPE
Entity of either of them hereunder shall have occurred and evidence thereof
reasonably satisfactory in form and substance to Lender shall be delivered to
Lender.

     (r)  Payments. All payments, deposits or escrows required to be made or
established by Additional Borrower under this Agreement, the Note and the other
Loan Documents on or before the Subsequent Advance Closing Date with respect to
such Subsequent Advance shall have been paid or shall be paid simultaneously
with the closing of such Subsequent Advance.

     (s)  Engineering Reports. Lender shall have received a Engineering Report
with respect to each Additional Property to be encumbered with a Mortgage in
connection with

                                       36
<PAGE>
such Subsequent Advance, which report shall include, among other things, an
analysis of Replacement Reserve Fund requirements with respect to such
Additional Property.

          (t)  Financial and Operating Statements. Lender shall have received
operating statements for each Additional Property, verified by a certified
public accounting firm acceptable to Lender, for each such Additional Property
for Fiscal Years designated by Lender and a current trailing twelve (12) month
operating statement for each such Additional Property or in the event that such
operating statements do not exist, Borrower shall provide any relevant
historical data in Borrower's possession together with pro forma operating
statements.

          (u) Utility Services and Parking. Lender shall have received evidence
reasonably satisfactory to Lender that each Additional Property to be
encumbered with a Mortgage in connection with such Subsequent Advance is served
by or has access to public utilities and contains parking necessary for the use
and enjoyment of such Additional Property.

          (v) Credit Reports and Searches. Lender shall have received such
credit reports, references, UCC and judgment searches and other information
with respect to and any Additional Borrower assuming the Loan and the Loan
Documents in connection with such Subsequent Advance and their respective SPE
Entity, as Lender may request, all of which shall be reasonably satisfactory to
Lender.

          (w) Equipment Leases. Lender shall have received copies of all
material equipment leases and material leases of personal property in effect as
of the Closing Date with respect to each Additional Property to be encumbered
with a Mortgage in connection with such Subsequent Advance, each of which shall
be certified by Borrower and satisfactory to Lender.

          (x) Underlying Asset Documentation. Lender shall have received a copy
of the purchase and sale agreement pursuant to which each Additional Property to
be encumbered with a Mortgage in connection with such Subsequent Advance was or
will be conveyed to an Individual Borrower or an Additional Borrowers, as
applicable, each of which shall be reasonably satisfactory in form and
substance to Lender in its sole discretion.

          (y) Estoppel Certificates. Borrower shall have delivered to Lender an
estoppel certificate executed by the tenant(s) under the Leases of space at each
Additional Property to be encumbered with a Mortgage in connection with such
Subsequent Advance demising, in the aggregate, seventy-five percent (75%) of the
occupied rentable square footage of each such Additional Property. Borrower
shall be deemed to have delivered estoppel certificates with respect to U.S.
Government tenants that provided a letter substantially in the form attached
hereto as Exhibit C - Government is delivered to Lender.

          (z) Leases and Rent Rolls. Lender shall have received certified
copies of all Leases of space at each Additional Property to be encumbered with
a Mortgage in connection with such Subsequent Advance, each of which shall be
satisfactory to Lender. Lender shall have received a current certified rent
roll of each Additional Property to be encumbered with a Mortgage in connection
with such Subsequent Advance (i) listing each and every Lease with

                                       37
<PAGE>
respect to such Additional Property by the names of all tenants and square
footage or other identification of space leased, (ii) listing the monthly
rental and all other charges payable under each Lease and the date to which
such rental and other charges have been paid, (iii) listing the term of each
Lease, the date of occupancy and the date of expiration, (iv) setting forth any
rent arrears and amounts taken in settlement of outstanding arrears, (v)
listing any collections of rent for more than one (1) month in advance, (vi)
describing any material special provision, concession or inducement granted to
the tenant under each Lease and (vii) setting forth such other information as
is reasonably requested by Lender. Each such rent roll shall be satisfactory in
the form attached hereto as Exhibit D.

          (aa) Subordination and Attornment. Lender shall have received
subordination, non-disturbance and attornment agreements in the form attached
hereto as Exhibit E from the tenants occupying, in the aggregate, not less than
seventy-five percent (75%) of the gross leasable area of such Individual
Property.

          (bb) Satisfactory Underwriting. The results of Lender's underwriting
and due diligence review of the Individual Property, based on Lender's
reasonable, good faith evaluation of all of the materials and information
submitted by borrower and otherwise obtained by Lender with respect to such
Individual Property, shall be satisfactory to Lender and which shall establish
to Lender's satisfaction that the Debt Service Coverage Ratio for each
applicable Individual Property is not less than 1.10:1 and that the LTV Ratio
shall not exceed 90%.

          (cc) Tax Lot. Lender shall have received evidence that each
Additional Property to be encumbered with a Mortgage in connection with such
Subsequent Advance constitutes a separate tax lot, which evidence shall be
reasonably satisfactory in form and substance to Lender.

          (dd) Management Agreement. Lender shall have received either (i) a
certified copy of the Management Agreement with respect to each Additional
Property to be encumbered with a Mortgage in connection with such Subsequent
Advance satisfactory in form and substance to Lender together with an
Assignment of Management Agreement with respect to each Management Agreement
for such Additional Property to be encumbered with a Mortgage in connection
with such Subsequent Advance or (ii) an amendment to an existing Management
Agreement adding the applicable Additional Property thereto.

          (ee) Approved Appraisal. Lender shall have received an Approved
Appraisal covering each Additional Property which is the subject of the
Subsequent Advance which Approved Appraisal shall be satisfactory to Lender in
all respects.

          (ff) Additional Documentation. Lender shall have received any
additional other due diligence items customarily requested by Lender in
connection with the origination of mortgage loans comparable to the Loan in
connection with such Subsequent Advance.

          (gg) Loan Fee and Transaction Costs. Borrower shall have paid Lender
the Facility Fee relative to such Subsequent Advance. Borrower shall have paid
or reimbursed

                                       38
<PAGE>
Lender for all reasonable and customary costs and expenses in connection with
such Subsequent Advance, including, without limitation, the Lender's Counsel
Fees, the costs of all appraisals and Engineering and Environmental Reports,
any fees and expenses due to Situs Capital Service or other consulting
professional providing due diligence or similar services to Lender, all title
insurance premiums, all survey charges, any mortgage, documentary stamp and
intangible taxes, all recording charges, any brokerage fees and commissions and
any auditor's fees.

     (hh) MATERIAL ADVERSE CHANGE. The income and expenses of each Additional
Property to be encumbered with a Mortgage in connection with such Subsequent
Advance, the financial statements of any Individual Borrower and any Additional
Borrower assuming the Loan and the Loan Documents in connection with such
Subsequent Advance, the occupancy rate, Leases and rent roll with respect to
each such Additional Property and all other features of the Loan and such
Subsequent Advance shall be as represented to Lender and all documents and
communications delivered to Lender in order to induce Lender to make such
Subsequent Advance shall be without material adverse change and Lender shall
have received an Officer's Certificate as to the foregoing. No portion of any
Additional Property to be encumbered with a Mortgage in connection with such
Subsequent Advance shall have been damaged and not repaired to Lender's
satisfaction unless a reserve or other provision for repair of such damage
satisfactory to Lender has been established or made. No portion of any
Individual Property to be encumbered with a Mortgage in connection with such
Subsequent Advance shall have been taken in condemnation or other similar
proceeding. No condemnation or other similar proceeding shall be pending that
may materially and adversely affect any Additional Property to be encumbered
with a Mortgage in connection with such Subsequent Advance or for which reserves
or other provisions for restoration of the affected Additional Property
satisfactory to Lender in its sole discretion have not been established. No
structural change in the physical condition of any portion of any Additional
Property to be encumbered with a Mortgage in connection with such Subsequent
Advance shall have occurred since the date of the related structural
engineering report delivered to Lender other than alterations to an Additional
Property approved by Lender. No Additional Borrower assuming the Loan and the
Loan Documents in connection with such Subsequent Advance, general partners or
managing members of any such Additional Borrower or other Person directly or
indirectly in control of, or controlled by, any such Additional Borrower, or
tenants under any Leases deemed by Lender to be material to the security for
such Subsequent Advance or guarantors of any such Leases shall be the subject
of any bankruptcy, reorganization or insolvency proceedings. No Individual
Borrower or Additional Borrower assuming the Loan and the Loan Documents in
connection with such Subsequent Advance or general partner or managing member
of any such Additional Borrower shall be in default under any loan or financing
provided to such Additional Borrower, general partner or managing member, other
than defaults under equipment lease financings or resulting from the failure to
pay trade payables, which financings or trade payables are being disputed in
good faith and do not exceed the Maximum Debt Limit in the aggregate. No
asbestos or other hazardous substances shall have been discovered at any
Additional Property to be encumbered with a Mortgage in connection with such
Subsequent Advance other than as disclosed in the related Phase I environmental
report delivered to Lender and, if applicable, Phase II environmental report
delivered to Lender,

                                       39
<PAGE>
unless provisions for the remediation of such asbestos or other hazardous
substances satisfactory to Lender in its sole discretion have been made.

          SECTION 3.3  CONDITIONS PRECEDENT TO ADVANCES WHICH ARE MEZZANINE
LOANS. Notwithstanding anything to the contrary hereinbefore contained, the
obligation of Lender to advance any portion of the Loan as a Mezzanine Loan
shall be subject to satisfaction of the Conditions Precedent set forth in
Article 4 of the Mezzanine Loan Agreement and to the terms and conditions of
Section 3.1(a), (b), (e), (f), (i), (j), (n), (x) and (y).

          IV.  REPRESENTATIONS AND WARRANTIES

          Borrower represents and warrants to Lender:

          SECTION 4.1  ORGANIZATION, ENFORCEABILITY, ETC.

          4.1.1  Each Individual Borrower is a duly formed limited liability
company or other entity described on Exhibit A under the laws of the State set
forth opposite its name on Exhibit A validly existing and in good standing under
the laws of the State set forth opposite its name on Exhibit A. Each Individual
Borrower has full power and authority to execute and deliver to Lender this
Agreement and all other Loan Documents to which it is a party and to own and
operate its respective Individual Property and perform the obligations and carry
out the duties imposed upon Borrower by this Agreement and the other Loan
Documents. All Loan Documents to be executed by each Individual Borrower upon
such execution, shall have been duly authorized, approved, executed and
delivered by all necessary parties and shall constitute the legal, valid and
binding obligations of each Individual Borrower, enforceable against Borrower in
accordance with their respective terms. Each Individual Borrower is authorized
to do business in the State where it is organized and where its Individual
Property is located.

          4.1.2  Each SPE Entity is a duly formed corporation under the laws of
the State set forth opposite its name on Exhibit A, validly existing and in good
standing under the laws of the State set forth opposite its name on Exhibit A,
and has full power and authority to execute and deliver to Lender all Loan
Documents to which it is a party. All Loan Documents executed by the SPE Entity
have been duly authorized, approved, executed and delivered by all necessary
parties and constitute the legal, valid and binding obligations of the SPE
Entity, enforceable against the SPE Entity in accordance with their respective
terms. SPE Entity is authorized to do business in each State set forth opposite
its name on Exhibit A and all other jurisdictions required by law.

          SECTION 4.2  NO STRUCTURAL DEFECTS.  To the best knowledge of each
Individual Borrower, there are no structural defects in the Improvements
existing on the Individual Property owned by it or material defects to the
building systems thereof except as shown in the Engineer's Report for such
Individual Property.

          SECTION 4.3  FINANCIAL STATEMENTS.  To the best knowledge of Borrower,
all financial statements of Borrower, Guarantor and SPE Entity heretofore or
hereafter delivered

                                       40

<PAGE>
to Lender in connection with the Loan are or, upon such delivery, will be, true
and correct in all material respects and fairly present the financial condition
of the subjects thereof as of the respective dates thereof and that no material
adverse change have occurred in the financial condition reflected therein or
the operations or business of such Persons since the respective dates of such
financial statements.

     SECTION 4.4  LITIGATION.  Except as set forth on Exhibit J attached
hereto, there are no actions, suits, proceedings, arbitrations, tenant
disputes, labor disputes or governmental investigations pending, or, to the
best knowledge or Borrower, threatened in writing against or affecting
Borrower, or, to the best knowledge of Borrower, any Individual Property and
there is no litigation (a) which, if successful, could have a Material Adverse
Effect on Borrower, any other Significant Party or any Individual Property, or
any such Person's ability to perform its obligations pursuant to and as
contemplated by this Agreement and the other Loan Documents, (b) which, if
successful, might affect the validity or enforceability of any of the Loan
Documents or the priority of the Liens thereof, or (c) which, if successful,
could adversely affect the use of, operations at or capital improvements being
made at any Individual Property. Neither Borrower, nor the SPE Entity, nor any
other Significant Party are operating under or subject to any order, writ,
injunction, decree or demand of any court or any Governmental Authority. Other
than as set forth on Exhibit J, no actions, suits, proceedings or arbitrations
are pending or, to the best knowledge of Borrower, threatened against Borrower,
SPE Entity or any other Significant Party which involve claims, damages or sums
of money not covered (including all applicable deductibles) by insurance.

     SECTION 4.5  NO CONFLICT WITH LAW OR AGREEMENTS.  The execution and
delivery of this Agreement and the other Loan Documents, and the performance
and consummation of the transaction contemplated hereby and thereby, on the
part of Borrower and all other Significant Parties (as applicable) and
fulfillment of the terms of the Loan Documents by Borrower and the other
Significant Parties (as applicable) (i) do not and will not conflict with,
violate, or constitute a default (or a condition or event which, after notice
or lapse of time or both, would constitute such a default) under any provision
of any Organizational Document or contractual obligation of Borrower or any
Significant Party or any Requirement or any court decree or order, and (ii)
will not result in or require the creation or imposition of any lien or
encumbrance on or conveyance of any Individual Property pursuant to any
contractual obligation and (iii) do not require the consent or approval of any
Governmental Authority or other person or entity except for consents and
approval already obtained.

     SECTION 4.6  PERSONAL PROPERTY.  To the best of the Borrower's knowledge,
all equipment and other personal property necessary for (or otherwise actually
used in connection with) the proper and efficient operation and maintenance of
each Individual Property, the actual and contemplated uses of each Individual
Property, and Borrower's compliance with its obligations under the Leases are
owned by Borrower and constitute part of such Individual Property subject to
the Mortgage and located thereat, other than any such equipment which is leased
by Borrower or is owned by a utility company or any such equipment and personal

                                       41

<PAGE>
property which is owned by tenants of such Individual Property and utilized
solely by such tenant.

          SECTION 4.7   EASEMENTS. To the best of the Borrower's knowledge, all
easements, cross easements, licenses, air rights, and rights-of-way or other
similar property interests (collectively, "EASEMENTS"), if any, necessary for
the full utilization of the Improvements for their intended purposes have been
obtained, and are described in the Title Policy, and are in full force and
effect without default thereunder. Each Individual Property has direct rights
of access to public ways and is served by water, sewer, sanitary sewer and
storm drain facilities adequate to service such Individual Property for its
intended uses. All public utilities necessary to the full use and enjoyment of
such Individual Property are located wither in the public right of way abutting
such Individual Property (which are connected so as to serve such Individual
Property without passing over other property) or in recorded easements serving
such Individual Property and described in the Title Policy. All roads
necessary for the use of such Individual Property for its current purposes have
been completed and are available for public use.

          SECTION 4.8    NO FLOOD HAZARD, ETC.    Except as set forth in the
Survey for an Individual Property, no Individual Property is situated in a
flood hazard area as defined by the Federal Insurance Administration. To the
best knowledge of Borrower, no portion of any Individual Property is located on
or adjacent to navigable waters and no portion of any Individual Property
consists of filled-in land.

          SECTION 4.9    NO DEFAULT.    To the best of the Borrower's
knowledge, there is no default on the part of Borrower, under this Agreement,
the Note, the Mortgage, or any other Loan Document.

          SECTION 4.10   NO OFFSETS.    To the best of the Borrower's knowledge,
Borrower has no counterclaims, offsets or defenses with respect to the Loan, the
Note or any other Loan Document.

          SECTION 4.11   VALID LIENS. Subject to the Permitted Encumbrances,
each Mortgage is a good and valid first mortgage lien on each of the Properties
and first security interest in the personal property described in the Mortgage.

          SECTION 4.12   COMPLIANCE WITH ZONING, ETC.

          4.12.1    To the best of the Borrower's knowledge, except as may be
disclosed by the Engineer's Report or in the violations searches received from
the Title Insurer in connection with the Title Policy (the "DISCLOSED
VIOLATIONS"), the Properties comply in all material respects with all applicable
Legal Requirements. To the best knowledge of Borrower, any zoning or subdivision
approval is based on no real property, or rights appurtenant thereto, other than
the Properties. The Properties as improved and used are not in material
violation of any recorded and, to the best knowledge of Borrower, unrecorded
covenants, conditions or restrictions of any kind or nature affecting all or any
part of the Properties or any interest therein. To the best knowledge of
Borrower, the Improvements can be fully rebuilt in the

                                       42
<PAGE>
event of casualty or destruction thereof under the Permits applicable to the
Properties, subject, however, to non-discretionary requirements of any
Governmental Authority. No amendment or change in any such material Permit and
no amendment or change in zoning or any other land use control has been sought
or obtained by Borrower or any Affiliate or Borrower or will be sought or
obtained by Borrower or any Affiliate of Borrower with respect to any of the
Properties or the Improvements, except as specifically approved in writing by
Lender.

         4.12.2 To the best knowledge of Borrower, except as may be disclosed by
the Engineer's Report or in the violations searches received from the Title
Insurer in connection with the Title Policy, all Permits required by any
Governmental Authority for the operation of the Improvements and the actual and
contemplated uses thereof or otherwise required to be in compliance with any
Environmental Laws have been obtained. The copy of the certificate of occupancy
for any of the Properties delivered to the Lender is a true and correct copy of
the permanent certificate of occupancy for the Properties, remains in full force
and effect and is not subject to any conditions or limitations other than those
of general applicability to all certificates of occupancy for similar properties
in the applicable jurisdiction.

         4.12.3 Borrower has heretofore delivered to Lender true, correct and
complete copies of each material Permit.

         4.12.4 There are no pending or, to the best knowledge of Borrower,
threatened actions, suits or proceedings to revoke, attack, invalidate, rescind
or modify the zoning of any Individual Property, or any material Permits issued
with respect to any Individual Property or any part thereof, or asserting that
such Permits or the zoning of any Individual Property do not permit the use of
any Individual Property as contemplated by the Loan Documents.

         SECTION 4.13 NO CONDEMNATION. Borrower has not received any notice of,
and to the best of Borrower's knowledge there does not exist, any actual,
proposed or threatened exercise of the power of eminent domain or other taking
by any governmental or quasi-governmental body or agency of all or any portion
of any Individual Property or any interest therein or any right of access
thereto.

         SECTION 4.14 NO CASUALTY. To the best of the Borrower's knowledge, the
Improvements have suffered no material casualty or damage which has not been
substantially repaired.

         SECTION 4.15 PURCHASE OPTIONS. To the best of the Borrower's knowledge,
no Individual Property or part thereof is subject to any purchase or other
similar rights in favor of third parties.

         SECTION 4.16 NO ENCROACHMENTS. To the best of the Borrower's knowledge,
there are no material encroachments on the Land and the Improvements do not
encroach upon any Easement, other interest in real property, any adjoining land
or adjoining street, except as set forth in the Survey.

                                       43

<PAGE>
     SECTION 4.17 NO INSOLVENCY. To the best of the Borrower's knowledge,
neither Borrower nor any SPE Entity is Insolvent or will be rendered Insolvent
by execution of this Agreement, the Note, or any other Loan Documents or
consummation of the transactions contemplated thereby.

     SECTION 4.18 FRAUDULENT CONVEYANCE. Borrower (a) has not entered into the
transactions contemplated by this agreement or any other Loan Document with
the actual intent to hinder, delay, or defraud any creditor and (b) received
reasonably equivalent value in exchange for its obligations under the Note,
this Agreement and the other Loan Documents. Giving effect to the transactions
contemplated by the Loan Documents, the fair salable value of Borrower's assets
exceeds, and will immediately following the execution and delivery of the Loan
Documents and the advance of the proceeds thereof, exceed, Borrower's total
probable liabilities, including, without limitation, the maximum amount of its
subordinated, unliquidated, disputed or contingent liabilities. Borrower's
assets do not, and immediately following the execution and delivery of the Loan
Documents and the advance of the proceeds thereof, will not, constitute
unreasonably small capital to carry out its business as conducted or as
proposed to be conducted. Borrower does not intend to, and does not believe
that it will, incur debts and liabilities (including, without limitation,
contingent liabilities and other commitments) beyond its ability to pay such
debts and liabilities as they mature (taking into account the timing and
amounts to be payable on or in respect of obligations of Borrower).

     SECTION 4.19 BROKER. No broker or consultant other than Cooper Horowitz,
Inc. has been retained by Borrower or any Affiliate of Borrower in connection
with the Loan or the Loan Documents. Borrower will pay any and all fees due to
Cooper Horowitz, Inc. in connection with the Loan and will indemnify, defend and
hold the Indemnified Parties harmless from and against all loss, cost, liability
and expense arising from the claims of all brokers and consultants (including
Cooper Horowitz, Inc.) relating to the Loan and/or any Individual Property with
whom Borrower, any Affiliate of Borrower or any employee or agent of Borrower
has dealt, including, without limitation, sales, mortgage or leasing brokers or
consultants.

     SECTION 4.20 ENVIRONMENTAL. Except as may be actually disclosed in the
Environmental Report, (i) no Hazardous Substances are now or have ever been
located, produced, used, stored, treated, transported, incorporated, discharged,
emitted, released, deposited, or disposed of in, upon, under, over or from any
Individual Property in a manner that may give rise to any actual or potential
liability to pay response costs or other damages, losses or expenses or
otherwise violate any Environmental Laws; (ii) no Hazardous Substances are
currently located, stored or used at any Individual Property, except with
respect to such Hazardous Substances which are (x) customarily located, stored
or used in properties similar to the Properties or (y) unique and necessary to a
tenant's business located in the Properties, provided that such Hazardous
Substances described in (x) or (y) are at all times stored, located and used in
compliance with all Environmental Laws; (iii) no Hazardous Substances have been
discharged, released or emitted, upon or from any Individual Property into the
environment and no threat exists of a discharge, release or emission of a
Hazardous Substance upon or from any Individual Property into the environment,
which discharge, release or emission, in either

                                       44
<PAGE>
case, would subject the owner of such Individual Property to any damages,
penalties or liabilities under any applicable Environmental Laws; (iv) no
Property has ever been used as or for a mine, a landfill, a dump or other
disposal facility or a gasoline service station; (v) no underground storage tank
is now located on or in any Individual Property or if previously located therein
has been removed therefrom in compliance with all applicable Environmental Laws
and any clean-up of the surrounding soil in connection therewith has been
completed; (vi) no asbestos, ACM, materials containing urea-formaldehyde, or
transformers, capacitors, ballasts or other equipment that contain PCBs are
located about any Individual Property; (vii) no Property has been used by
borrower or any Affiliate or, to the best of Borrower's knowledge, after
reasonable investigation, any other person or entity (including any prior owner
of any Individual Property) as a permanent or temporary treatment, storage or
disposal site for any Hazardous Substance; (viii) no violation of any
Environmental Law now exists or has ever existed in, upon, under, over or from
any Individual Property, no notice of any such violation or any alleged
violation thereof has been issued or given by any governmental entity or agency,
and there is not now nor has there ever been any investigation or report
involving any Individual Property by any governmental entity or agency which in
any way relates to Hazardous Substances; (ix) no Person has given any notice of
or asserted any claim, cause of action, penalty, cost or demand for payment or
compensation, whether or not involving any injury or threatened injury to human
health, the environment or natural resources, resulting or allegedly resulting
from any activity or event described in clauses (i)-(viii) above and to the
knowledge of Borrower, no basis for such a claim exists; (x) there are not now,
nor to Borrower's best knowledge have there ever been, any actions, suits,
proceedings or damage settlements relating in any way to Hazardous Substances,
in, upon, under, over or from amy Property; (xi) no oral or written notification
of a Release (as such term is defined in 42 U.S.C. Section 9601(22)) of any
Hazardous Substances has been filed by or on behalf of Borrower through
authorized employees or agents and no Property is listed in the United States
Environmental Protection Agency's List of Hazardous Waste Sites or any other
list of Hazardous Substance sites maintained by any federal, state or local
government agency; (xii) there are no environmental liens on any Property, and,
to the best knowledge of Borrower, no governmental actions have been taken or
are in process which could subject any Property to such liens; (xiii) Borrower
has not transported or arranged for the transportation of any Hazardous
Substances to any location which is listed or proposed for listing under CERCLA
or on any similar state list or which is the subject of federal, state or local
enforcement actions or other investigations; (xiv) no environmental or
engineering investigations, studies, audits, tests, reviews or other analyses
have been conducted by or are in the possession of Borrower or its Affiliates in
relation to any Property other than the Environmental Report; Borrower has
delivered a true, correct and complete copy of each of the Environmental Report
to Lender; and (xv) to the best of Borrower's knowledge, the Environmental
Report does not contain any untrue statements of a material fact or omit to
state a material fact necessary to make any statement contained therein or
herein, in light of the circumstances under which such statements were made, not
misleading. The representations by Borrower contained in this Section 4.20 as
the same relate to tenants at the Properties shall be limited to Borrower's
knowledge.

                                       45
<PAGE>
          SECTION 4.21  BORROWER ADDRESS.  Borrower's principal place of
business is at the address set forth opposite its name on Exhibit A, and shall
not be changed during the term of the Loan without giving Lender at least thirty
(30) days' prior notice thereof. Borrower uses no trade name and has not and
will not do any business under any name other than its actual name set forth
herein.

          SECTION 4.22  STRUCTURE OF BORROWER.  (a) The Persons set forth on
Exhibit G annexed hereto are the sole partners or members of Borrower and have
the legal and beneficial ownership interests in Borrower set forth therein, and
(b) the shareholders of the SPE Entity set forth on Exhibit G annexed hereto are
the sole shareholders of the SPE Entity and have the legal and beneficial
ownership interests in Borrower set forth therein. The ownership structure of
Borrower and the SPE Entity for the term of the Loan shall remain the same as
set forth in Exhibit G annexed hereto.

          SECTION 4.23  LEASES.

          4.23.1  Borrower has not entered into any Lease which continues in
existence, and is not bound by any such Lease, other than the Approved Leases.

          4.23.2  Rent has not been collected under any of the Leases more than
one (1) month in advance of the due date; except as disclosed on the Rent Roll
annexed hereto as Exhibit D, the term has commenced and the tenant has commenced
the full payment of rent under such Leases without the tenants thereunder being
entitled to any abatement thereof; except as disclosed on the Rent Roll annexed
hereto as Exhibit D, the landlord is not required to perform any tenant work or
pay any work allowances under such Leases; all security and other escrow
deposits made under such Leases are being and have been held in accordance with
all Legal Requirements and the terms of such Leases; except as disclosed on the
Rent Roll annexed hereto as Exhibit D, no tenant has any right of expansion,
extension, cancellation or any other option pursuant to such Leases; and no
tenant has any right of set off or reduction against rent.

          4.23.3  To the best of the borrower's knowledge, Borrower has
delivered true, correct and complete copies of all of the Leases (including all
amendments and supplements thereto) to Lender.

          4.23.4  To Borrower's knowledge, each of the Leases is in full force
and effect and, there are no monetary or other material defaults by Borrower
thereunder, and to the best of the borrower's knowledge, except as set forth on
the Rent Roll annexed hereto as Exhibit D, there are no monetary or other
material defaults by any tenant thereunder Neither Borrower, nor Manager or any
other Person acting on Borrower's behalf has given or received any notice of
default under any of the Leases that remains uncured or in dispute and Borrower
is not intending to deliver such a notice of default within the thirty (30) days
following the date hereof.

          4.23.5  Borrower has delivered to Lender true and correct copies of
all guaranties of Leases and all such guaranties are in full force and effect
and constitute the legal,

                                       46

<PAGE>
valid and binding obligations of the parties thereto, enforceable against such
parties in accordance with their respective terms.

     4.23.6 Attached hereto as Exhibit D is a Rent Roll for each Individual
Property with is true, correct and complete in all material respects.

     4.23.7 Set forth on Exhibit D is a true, correct and complete list of all
security deposits made by tenants at each Individual Property which have not
been applied (including accrued interest thereon), all of which are held by
Individual Borrower in accordance with the terms of the applicable Lease and
applicable Legal Requirements.

     4.23.8 To the best of the Borrower's knowledge, each tenant under a Major
Lease is free from bankruptcy or reorganization proceedings.

     4.23.9 No tenant under any Lease (or any sublease) is an Affiliate of
Borrower, except as may be disclosed otherwise on Exhibit D annexed hereto.

     4.23.10 To the best of the Borrower's knowledge, there are no brokerage
fees or commissions due and payable in connection with the leasing of space at
any Individual Property, except as has been previously disclosed to Lender in
writing, and no such fees or commissions will become due and payable in the
future in connection with the Leases, including by reason of any extension of
such Lease or expansion of the space leased thereunder, except as has
previously been disclosed to Lender in writing.

     SECTION 4.24 PROPERTIES TAXED AS A SEPARATE TAX LOT. Each Individual
Property is taxed as a separate and distinct tax lot[s], no part of any
Individual Property shares a tax lot with any adjoining lands and for all
purposes each Individual Property may be mortgaged, conveyed and otherwise
dealt with as a single, independent parcel.

     SECTION 4.25 FISCAL YEAR. The Fiscal Year of Borrower commences on
January 1.

     SECTION 4.26 NO OTHER FINANCING. Borrower has not borrowed any funds
except for the Loan which has not heretofore been repaid in full.

     SECTION 4.27 ERISA.

     4.27.1 The execution, delivery and performance of this Agreement, the
Mortgage, and the other Loan Documents do not constitute a Prohibited
Transaction, assuming solely for this purpose that Lender is a party in
interest as defined in Section 3(14) of ERISA ("Party In Interest"), or a
disqualified person as defined in Section 4975(e)(2) of the Internal Revenue
Code ("Disqualified Person"), with respect to an employee benefit plan, if any,
which has directly or indirectly invested in Borrower or in any Partner.

     4.27.2 Borrower has made and shall continue to make all required
contributions to all employee benefit plans, if any, within the time periods
required by the applicable

                                       47

<PAGE>
provisions of ERISA and any other federal or state law and Borrower has no
knowledge of any material liability which has been incurred by Borrower which
remains unsatisfied for any taxes or penalties with respect to any employee
benefit plan or any multi-employer plan, and each such plan has been
administered in compliance with its terms and the applicable provisions of ERISA
and any other federal or state law.

     SECTION 4.28  FIRPTA. Borrower is not a "foreign person" within the meaning
of Sections 1445 or 7701 of the Internal Revenue Code.

     SECTION 4.29 PUHCA. Borrower is not a "holding company" or a "subsidiary
company" of a "holding company" or an "affiliate" of either a "holding company"
or a "subsidiary company" as defined in the Public Utility Holding Company Act
of 1935, as amended.

     SECTION 4.30 INSURANCE. All Insurance Policies (as defined in the Mortgage)
required to be obtained and maintained by each Individual Borrower pursuant to
the Mortgage are in full force and effect, the premiums due thereon have been
paid in full, Individual Borrower and each Property is in compliance with the
provisions of such Insurance Policies and the provisions relating to Insurance
Policies in the Mortgage and no notice of cancellation, termination or default
has been received with respect to any such policy.

     SECTION 4.31 NO MARGIN STOCK. None of the proceeds of the Loan, will be
used by any Individual Borrower for the purpose of purchasing or carrying
"margin stock" within the meaning of Regulation G, T, U or X issued by the Board
of Governors of the Federal Reserve System, as at any time amended, and each
Individual Borrower agrees to execute all instruments which may be necessary
from time to time, if any, to comply with all the requirements of Regulation U
of the Federal Reserve System, as at any time amended.

     SECTION 4.32 INVESTMENT COMPANY ACT. Each Individual Borrower is not (a) an
"investment company" or a company "controlled" by an "investment company"
within the meaning of the Investment Company Act of 1940, as amended; or (b)
subject to any other United States federal or state law or regulation which
purports to restrict or regulate its ability to borrow money.

     SECTION 4.33 TAXES. To the best knowledge of Borrower, each Individual
Borrower has filed all Federal, state and local tax returns required to be filed
prior to the date hereof and has paid all taxes, charges and assessments shown
to be due from each Individual Borrower on such tax returns. All Taxes due and
owing in respect of, and affecting, each Individual Property has been paid.
There are no pending, or to Borrower's knowledge, proposed special or other
assessments for public improvements or otherwise affecting any Individual
Property.

     SECTION 4.34 FULL AND ACCURATE DISCLOSURE. No statement of fact made by
Borrower in this Agreement, or in any of the other Loan Documents contains any
untrue statement of a material fat or omits to state any material fact necessary
to make statements contained herein or therein not misleading. There is no
material fact presently known to any

                                       48
<PAGE>
Individual Borrower which has not been disclosed to Lender which adversely
affects, nor as far as Borrower can reasonably foresee, might adversely affect,
any Individual Property or the business, operations or condition (financial or
otherwise) of Borrower.

     SECTION 4.35 CONTRACTS. 4.35.1 Borrower has not entered into and is not
bound by any Contract which continues in existence, except the Approved
Contracts.

     4.35.2 To the best of the Borrower's knowledge, each of the Contracts is in
full force and effect, there are no monetary or other material defaults by
Borrower thereunder and, to the best knowledge of Borrower, there are no
monetary or other material defaults thereunder by any other party thereto.
Neither Borrower nor Manager nor any other Person acting on Borrower's behalf
has given or received any written notice of an Event of Default under any of the
Contracts that remain uncured or in dispute.

     4.35.3 Borrower has delivered true, correct and complete copies of the
Contracts (including all amendments and supplements thereto) to Lender.

     4.35.4 No Contract has as a party an Affiliate of Borrower unless such
Contract contains market rate terms and conditions including fees which are no
less favorable than would be available to Borrower by a third party which is not
an Affiliate of Borrower. All fees and other compensation for service previously
performed under each Contract have been paid in full.

     SECTION 4.36 OTHER OBLIGATIONS AND LIABILITIES. Each Individual Borrower
has no liabilities or other obligations that arose or accrued prior to the date
hereof that, either individually or in the aggregate, could have a Material
Adverse Effect on Borrower's ability to perform its obligations under this
Agreement, or any of the other Loan Documents or any other obligations that
Borrower may have in connection with the ownership and operation of the
Properties as contemplated by the Loan Documents. Borrower has no known material
contingent liabilities except as may be set forth on Exhibit U annexed hereto.

     SECTION 4.37 LOAN TO VALUE RATIO. To the best of the Borrower's knowledge,
based on the substantial real estate expertise of Borrower's principals,
Borrower's familiarity with the Properties and the Approved Appraisal (which
Borrower believes to contain a reasonable assessment of the fair market value of
the Properties), the maximum principal amount of the Loan does not exceed one
hundred twenty-five percent (125%) of the fair market value of the Properties.
For the purposes of this Section 4.37, the term "fair market value" shall not
include (i) the amount of any indebtedness secured by a Lien affecting the
Properties that is prior to, or on a parity with, the lien of the Mortgage, and
(ii) the value of any property that is not "real property" within the meaning of
Treas. Reg Sections 1.860G-2 and 1.856-3(d).

     SECTION 4.38 MEZZANINE REPRESENTATIONS. Not withstanding the provisions of
Sections 4.1 to 4.37, inclusive, with regard to any portion of the Loan advanced
by Lender as a Mezzanine Loan, the "Representations and Warranties" contained in
Article 3 of the Mezzanine Loan Agreement shall be applicable to the Individual
Borrower.

                                       49
<PAGE>
     V. AFFIRMATIVE COVENANTS.

     From the date hereof and until payment and performance in full of all
obligations of Borrower under the Loan Documents or the earlier release of the
Liens of all Mortgages encumbering the Properties (and all related obligations)
in accordance with the terms of this Agreement and the other Loan Documents, and
except as modified by Section 5.21, Borrower hereby covenants and agrees with
Lender that:

     SECTION 5.1 TRANSFERS. 5.1.1 Except as expressly permitted in this Section
5.1, Borrower will not, directly or indirectly, sell, assign, convey, pledge,
hypothecate, encumber or otherwise transfer (each of the foregoing constituting
a "TRANSFER") any Individual Property or any part thereof or all of the
Properties, or any interest therein or suffer, consent to or permit the
foregoing without, in each instance, the prior written consent of Lender.
Borrower will not permit any owner of a legal or beneficial interest in Borrower
(including, without limitation, any owner, (directly or indirectly) of a legal
or beneficial ownership interest in the SPE Entity) to Transfer such interest,
whether by transfer of stock, assignment of partnership interest or other
transfer of legal or beneficial interest in Borrower, or otherwise permit any
new or additional legal or beneficial ownership interests in Borrower, to be
issued, including, without limitation, by admission of new partners or members,
without, in each instance, the prior written consent of Lender. The foregoing
provisions of this Section 5.1.1 shall not, however, apply to Transfers of
ownership interests in Borrower or the SPE Entity by or on behalf of an
individual owner thereof who is deceased or declared judicially incompetent, to
such owner's heirs, legatees, devisees, executors, administrators, estate or
personal representatives, but shall continue to apply as to any subsequent
Transfer and shall not apply to transfers of interests in First Potomac Realty
Investment Limited Partnership (FPRILP) provided that at no time as a result of
any such Transfer shall any person other than Douglas Donatelli and/or Louis
Donatelli control FPRILP.

     5.1.2 To the extent Lender elects to consent to any Transfer as to which
its consent is required hereunder, Lender shall be entitled to condition its
consent on such matters as Lender may elect, in its sole reasonable discretion,
including, without limitation, execution of instruments of assignment and
assumption with respect to the loan Documents and the collateral therefor,
payment of reasonable consideration from transferee to transferor, delivery of
Officer's Certificates and affidavits and indemnities, including an affidavit
and indemnification regarding Internal Revenue Code Section 1445 and 7701,
receipt by Lender of opinions regarding "non-consolidation" regarding the
parties to the Transfer and their respective Affiliates and the assumptions of
obligations hereunder, receipt of confirmations from the Rating Agencies that
the then current rating for the Securities will not be withdrawn, qualified or
downgraded as a result of the Transfer, the transferee under the Transfer
satisfies the criteria set forth in Article IX of this Agreement and such other
matters or documents as Lender may request. Within ten (10) days after closing
of any Transfer, whether or not such Transfer required Lender's consent, if any
Individual Property or any part thereof or if any interest therein or if any
direct or indirect ownership interests in Borrower is transferred, Borrower will
provide Lender with a copy of the deed or other instrument of Transfer to the
transferee. Borrower will promptly after request therefor provide Lender with
such other

                                       50
<PAGE>
information and documentation with respect to such Transfer as Lender reasonably
requests, including, without limitation, information as to ownership of such
transferee.

         5.1.3 Upon the occurrence of any Transfer, the provisions of this
Section 5.1 shall continue to apply to the transferee as if it were the
transferor hereunder and any consent by Lender permitting a transaction
otherwise prohibited under this Section 5.1 or any right of Borrower or any
other Person to Transfer without such consent, shall not constitute a consent to
or waiver of any right, remedy or power of Lender to withhold its consent on a
subsequent occasion to a transaction not otherwise permitted by the provisions
of this Section 5.1. Notwithstanding the giving of any consent hereunder by
Lender, Borrower shall not engage in any Prohibited Transaction.

         5.1.4 Notwithstanding the provisions of Section 5.1.1 above, Obsolete
Collateral (as such term is defined in the Mortgage) may be sold or otherwise
disposed of, provided, that either (x) such Obsolete Collateral has been or is
contemporaneously being replaced by Collateral (as such term is defined in the
Mortgage) of at least equal value and utility which is subject to the lien of
the Mortgage with the same priority as with respect to the Obsolete Collateral
or (y) such Obsolete Collateral may be removed without materially adversely
affecting the maintenance, safety and operations at such Individual Property,
and upon the sale of such Obsolete Collateral any net cash proceeds received
from such disposition are deposited as ordinary Receipts in the Cash Collateral
Account and applied as provided in the Cash Management Agreement.

         SECTION 5.2 LIENS. Subject to any right to contest set forth in any
Loan Document, Borrower or any Individual Borrower shall not create, suffer or
permit to exist any mortgage, pledge, lien, security interest (including,
without limitation, a purchase money security interest), encumbrance, charge,
attachment, levy, distraint or other judicial process (collectively, "LIENS")
on, of or against, or otherwise affecting, all or any portion of the Properties
(including, without limitation, fixtures and other personal property), or any
other property of Borrower (whether tangible or intangible and now owned or
hereafter acquired) in favor of any person or entity other than Lender, without
the prior written consent of Lender, other than the Permitted Encumbrances.

         SECTION 5.3 INDEBTEDNESS. 5.3.1 Borrower shall not create, incur or
assume any indebtedness for borrowed money or otherwise evidenced by a note or
notes, whether secured or unsecured. Borrower shall not create, incur or assume
any other indebtedness, if doing so would cause Borrower to be in violation of
Section 9.1(h) hereof, or any other provision of this Agreement or the other
Loan Documents applicable thereto.

         5.3.2 Notwithstanding that any indebtedness incurred with respect to
any Property is otherwise permitted hereunder, Borrower shall (subject to the
terms of the next sentence) pay any portion of such indebtedness which becomes
due and payable within sixty (60) days following the date on which each such
amount is due and payable. Nothing contained in this Section 5.3 shall be deemed
to require Borrower to pay any amount, so long as Borrower is in good faith, and
by proper legal proceedings, diligently contesting the

                                       51
<PAGE>
validity, amount or application thereof, provided that in each case, at the time
of the commencement of any such action or proceeding, and during the pendency of
such action or proceeding (i) adequate reserves with respect thereto are
maintained on the books of the Borrower in accordance with GAAP (as determined
by the Approved Accountant), (ii) such contest operates to suspend collection or
enforcement, as the case may be, of the contested amount and such contest is
maintained and prosecuted continuously and with diligence and (iii) Borrower
shall deliver to Lender cash in an amount equal to one hundred twenty-five
percent (125%) of the amounts being contested which exceed $100,000 in the
aggregate and any additional interest, charge or penalty arising from such
contest. Any cash delivered shall constitute additional security for the Loan.
Any such cash shall be held and invested in the same manner and subject to the
same general terms as amounts deposited in the Cash Collateral Account under the
Cash Management Agreement and, upon the occurrence of an Event of Default,
Lender may apply such monies in the same manner as other monies held in the Cash
Collateral Account. Borrower shall execute such instruments as Lender shall
require to evidence Lender's perfected first priority security interest therein
and to effectuate the provisions hereof. If prior to the occurrence of an Event
of Default, Borrower shall provide evidence satisfactory to Lender, in its
reasonable judgment, that Borrower has paid the disputed amount, or otherwise
settled the same and paid any amount to be paid under such settlement, or that
Borrower has received a final unappealable judgment in its favor that it need
not pay any disputed amount, together with an Officer's Certificate confirming
the foregoing, then Lender shall return any cash deposited with Lender with
respect to such disputed amount. If Borrower ceases to contest continuously and
with due diligence any contest described above, or fails to provide Lender with
evidence satisfactory to Lender that it is doing so within ten (10) days after
Lender's request, or if there shall be a final judgment against Borrower with
respect thereto, then Lender may apply all or any portion of the cash to pay
such disputed amount and Lender shall have liability to Borrower for any
determination made by Lender, in good faith, that it is entitled to do so or as
to the amount to then be paid with respect to such disputed amount, whether or
not that determination is found to be accurate.

         SECTION 5.4 COMPLIANCE WITH RESTRICTIVE COVENANTS, ETC.

         5.4.1. Borrower will not modify, waive in any material respect or
release any Easements, restrictive covenants or other Permitted Encumbrances, or
suffer, consent to or permit the foregoing, without Lender's prior written
consent, which consent shall not be unreasonably withheld or delayed. Borrower
will timely comply in all material respects with the terms of all Easements,
restrictive covenants and all other Permitted Encumbrances.

         5.4.2 Borrower shall observe and comply with any conditions and
requirements necessary to preserve and extend any and all rights, privileges,
franchises and concessions that are applicable to each Individual Property, the
use and occupancy thereof or the business conducted thereat.

                                       52
<PAGE>
     SECTION 5.5 LEASES.

     5.5.1 Except as permitted in this Section 5.5, Borrower will not enter
into, modify, amend, consent to the cancellation or surrender of (except to the
extent such cancellation or surrender is by the tenant thereunder pursuant to a
pre-existing right to do so under a Lease) or terminate any Lease, whether now
existing or hereafter entered into, without the prior written consent of
Lender. Lender shall use its commercially reasonable discretion in granting or
withholding its consent with respect to a new Lease or a modification of a
Lease. Whenever consent of the Lender is required not to be unreasonably
withheld or delayed, Lender shall grant or deny such consent within five (5)
Business Days of request, or such consent shall be deemed granted.
Notwithstanding the foregoing, Borrower may, without the prior written consent
of Lender, terminate any lease which demises less than 15,000 square feet
under any of the following circumstances: (i) the tenant under said Lease is in
default beyond any applicable grace and cure period, and Borrower has the right
to terminate such lease; (ii) such termination is permitted by the terms of the
Lease in question and Borrower has secured an obligation from a third party to
lease the space occupied by the permit under the lease to be terminated at a
rental equal to or higher than the rental due under the lease to be terminated;
and (iii) if the tenant under the lease to be terminated has executed a right
under said lease to terminate its lease upon payment of a termination fee to
Borrower, and has in fact terminated its lease and paid said fee, Borrower may
accept said termination.

     5.5.2 Borrower will timely comply with all material terms and conditions
on its part to be performed under each Lease. Borrower shall not collect any
rent or other payment under any Lease more than one month in advance of the due
date thereof.  Borrower will use commercially reasonable efforts to require the
performance of all of the material obligations of tenants and other persons
bound by the Leases and to enforce the Leases, subject, however, to the
limitation of termination described in this Section 5.5.

     5.5.3 Borrower may, without Lenders prior written consent, enter into any
Lease which does not say, by its terms, demise in excess of 15,000 square feet
of gross leaseable area to a single user or occupant. Borrower may enter into
any lease which demises in excess of 15,000 square feet but is not a Major Lease
without the Lender's prior written consent provided that the following
conditions are satisfied: (a) the rent and other material business terms of such
Lease satisfy the then applicable Leasing Guidelines, (b) the Lease does not
provide for the rent to decline at any point during the term of such Lease, (c)
such Lease does not contain any options to purchase, or other rights with
respect to the ownership of the applicable Property, (d) such Lease does not
contain any restrictions on Landlord's rights to lease remaining portions of the
applicable Property, except such Lease may contain options to lease additional
space in the applicable Property in accordance with the Leasing Guidelines, (e)
such Lease does not contain any options for the tenant thereunder to terminate
such Lease (unless such termination is conditioned upon the payment of a
cancellation or other termination fee by such tenant which fee shall be
reasonably acceptable to Lender), other than in the event of a material casualty
or condemnation or other events referenced in the Leasing Guidelines, (f) such
Lease is entered into on substantially the standard form of Lease which Lender
has previously approved, with such changes therein as are necessitated by the
business terms

                                       53
<PAGE>
satisfying the Leasing Guidelines, or such other non-material changes thereto
as a proposed tenant may request and Borrower is willing to agree to, (g) such
Lease is entered into on arms length terms, without consideration of any
relationship Borrower or any Affiliate of Borrower may otherwise have with the
tenant thereunder or any Affiliate thereof, and (h) the Lease shall contain
each of the provisions required by Subsection 5.5.5 below.  As used herein the
term "LEASING GUIDELINES" shall mean a schedule setting forth basic economic
terms a Lease must satisfy in order to be entered into without Lender's consent
in accordance with this Section 5.5.3, including: (i) Minimum Effective Rent
per square foot, and (ii) minimum term.  The initial Leasing Guidelines are
annexed hereto as Exhibit K and may not be changed without the prior written
consent of Lender.  Borrower shall deliver to Lender, from time to time, but
not more frequently than once per year, any proposed changes to the Leasing
Guidelines based on changes in the market.  Lender will not unreasonably
withhold its consent to any such changes, provided Borrower provides to Lender
a letter from a brokerage company acceptable to Lender setting forth that the
proposed changes reflect changes in the leasing market in the applicable
jurisdiction.  Effective as of the date any changes are made to the Leasing
Guidelines as modified as provided above and Borrower shall deliver to Lender a
revised Leasing Guidelines as modified as provided above and Borrower shall
deliver to Lender a revised Leasing Guidelines reflecting the same.  Except as
described above, any other Lease shall require the prior written consent of
Lender.

          5.5.4 Borrower may, without Lender's prior written consent, modify or
amend any Lease which is not a Major Lease, provided, either such modification
or amendment is required to be entered into pursuant to the terms of such Lease
or each of the following conditions are satisfied: (a) such amendment or
modification is entered into on an arms-length basis without consideration of
any relationship of Borrower or any Affiliate of Borrower with the tenant
thereunder or any Affiliate thereof, (b) such Lease would not be a Major Lease
and would after such amendment or modification satisfy the conditions set forth
in clauses (b),(c),(d),(e),(f), and (g) of Subsection 5.5.3 above, to as great
an extent as it did prior to such amendment or modification, (c) such amendment
or modification does not release any party from its liability under the Lease
or, taking into account any Lease to be entered by Borrower covering all or a
part of the space covered by the Lease to be modified, reduce the square
footage of the Individual Property which is leased and occupied, (d) to the
extent any additional space is demised pursuant to such amendment or
modification, with respect thereto, such amendment or modification satisfies
Section 5.5.3 above, (e) such amendment or modification does not, taking into
account any Lease to be entered by Borrower covering all or a part of the space
covered by the Lease to be modified, reduce the aggregate rent paid under all
of the Leases of the Individual Property which is leased and occupied, (f)
after such amendment, such Lease, as modified continues to be subordinate to
the liens of the Mortgage and the Assignment of Leases and Rents, and (g) such
amendment or modification does not otherwise have a material adverse effect on
the fair market value of the applicable Property or the lien of the Mortgage on
the applicable Individual Property.  Borrower may, without the prior written
consent of Lender, terminate any Lease which is not a Major Lease in its good
faith exercise of its remedies under such Lease or at law or in equity by
reason of a material monetary default having continued under such Lease for at
least thirty (30) days after notice to the tenant thereof.  Without first
obtaining Lender's prior written consent, Borrower shall not

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consent to any assignment or subletting of any Major Lease unless the consent of
Borrower may not be withheld under such circumstances under the terms of the
applicable Lease, except that Borrower may, without Lender's prior written
consent, consent to any assignment or subletting which does not release the
liability of any Person then liable thereunder as tenant, guarantor or otherwise
(x) if such assignment or subletting is of a Lease which is not a Major Lease or
(y) is for a sublease under a Major Lease, which if Borrower had entered into
such sublease directly would not constitute a Major lease.

          5.5.5  Each Lease executed by borrower after the date hereof shall
provide, in a manner satisfactory to Lender, for (i) automatic subordination of
such Lease to the liens of the Mortgage, and the Assignment of Leases and Rents,
(ii) attornment by the tenant or licensee thereunder to Lender promptly after
the giving by Lender of a notice to such tenant requiring such attornment, (iii)
the tenant or licensee thereunder to give a notice to Lender of each material
default by the landlord or licensor thereunder, simultaneously with the giving
of notice of such default to such landlord or licensor, (iv) Lender to have a
reasonable right, but not the obligation, to cure any default by the landlord or
licensor thereunder after the expiration of the landlord's or licensor's cure
period, if any and (v) execution and delivery (not more than thirty (30) days
after a request therefor) of an estoppel certificate reasonably satisfactory to
Lender. Without limiting the foregoing, each Lease shall also provide that
Lender (or any other successor to the landlord or licensor acquiring by
foreclosure, deed in lieu of foreclosure or otherwise in connection with the
enforcement of the Loan Documents) shall not be: (1) liable for any previous act
or omission of the landlord or licensor under such Lease; (2) subject to any
credit, demand, claim, counterclaim, offset or defense which theretofore accrued
to such tenant or licensee against the landlord or licensor; (3) unless
consented to by Lender or permitted without Lender's consent under this Section
5.5, bound by any previous modification of such Lease, or by any previous
prepayment of more than one month's fixed rent or additional rent; (4) bound by
any covenant or obligation of the landlord or licensor to perform, undertake or
complete any work in the leased space of the Individual Property or to prepare
it for occupancy; (5) required to account for any security deposit of the tenant
or licensee other than any security deposit actually delivered to Lender by
Borrower; (6) bound by any obligation to make any payment to such tenant or
licensee or grant any credits, except for services, repairs, maintenance and
restoration provided for under the Lease to be performed by landlord or licensor
after the date of such attornment; and (7) responsible for any monies owing by
the landlord or licensor to such tenant or licensee. Lender shall, upon request,
execute and exchange with any tenant under a Major Lease, non-disturbance,
subordination and attornment agreement in the form annexed hereto as Exhibit 1
or in such other form as Lender shall approve in its sole and absolute
discretion, provided, Borrower shall deliver with such request an Officer's
Certificate stating that such Lease was entered into in accordance with the
terms of this Section 5.5 and any other provisions of the Loan Documents
applicable thereto. All actual out of pocket costs and expenses of Lender
(including, without limitation, reasonable attorneys' fees and disbursements) in
connection with Lender's review of any Lease and the negotiation, preparation,
execution and delivery of any non-disturbance agreement shall be paid by
Borrower within five (5) days after request therefor by Lender. Prior to seeking
Landlord's consent to any Lease, Borrower shall deliver

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<PAGE>
to Lender a copy of such Lease blacklined to show the changes from the standard
form of Lease previously approved by Lender.

     5.5.6 All security deposits of tenants, whether held in cash or any other
form, shall not be commingled with any other funds of Borrower (unless permitted
by applicable law) and, if cash, shall be deposited by Borrower at such
commercial or savings bank or banks as may be reasonably satisfactory to Lender.
Any bond or other instrument which Borrower is permitted to hold in lieu of cash
security deposits under any applicable legal requirements shall be maintained in
full force and effect in the full amount of such deposits unless replaced by
cash deposits as herein above described, shall be issued by an institution
reasonably satisfactory to Lender, shall be fully assignable to Lender. Borrower
shall, upon request, provide Lender with evidence satisfactory to Lender of
Borrower's compliance with the foregoing. Following the occurrence and during
the continuance of any Event of Default, upon Lender's demand, Borrower shall
turn over to Lender the security deposits (and any interest theretofore earned
thereon) with respect to all or any portion of the applicable Property, to be
held by Lender subject to the terms of the Leases. If Borrower is entitled to
retain a security deposit, then such amount shall be transferred by Borrower
into the Clearing Account.

     SECTION 5.6 DELIVERY OF NOTICES. Borrower will promptly, but in no event
later than ten (10) days after Borrower becomes aware of any of the
following events, furnish a written notice to Lender (together with the
applicable correspondence and papers relating thereto) specifying the nature and
period of existence of such condition or event and, with respect to events
described in clause (i) below, what action Borrower is taking or proposes to
take with respect thereto (compliance with the provisions of this Section 5.6
shall not be deemed or construed to constitute a waiver of or consent to any
default or Event of Default of which Borrower has given Lender notice pursuant
to this Section 5.6):

          (i) any default hereunder or under any of the other Loan Documents or
     any Event of Default;

          (ii) receipt or delivery by Borrower of a notice of default or
     termination, any proposed action with respect to any default or any failure
     by any person or entity to perform any material obligation, maintain any
     material representation or warranty or satisfy any material condition in
     connection with any Major Lease, the Management Agreement, any Easement a
     recorded instrument or a Permit;

          (iii) the filing of any action, suit or proceeding against or
     affecting Borrower or the applicable Individual Property that, if adversely
     determined, could (A) impair the validity or enforceability of this
     Agreement or any of the other Loan Documents or the ability of Borrower to
     perform its obligations hereunder or thereunder, (B) have a material
     adverse effect on the value of the applicable Individual Property or its
     current uses, or (C) result in a Lien on any portion of the applicable
     Individual Property; and

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<PAGE>
          (iv) any notice received from any Governmental Authority asserting a
violation of any material Legal Requirement and any correspondence to or from
Borrower with respect thereto.

     SECTION 5.7 ERISA. 5.7.1 In addition to the prohibitions set forth in
Section 5.1 hereof, and not in limitation thereof, Borrower shall not Transfer
or hypothecate its interest or rights in this Agreement or in the Properties, or
attempt to do any of the foregoing or suffer any of the foregoing, nor shall any
Person owning a direct or indirect interest in Borrower Transfer any of its
rights or interest (direct or indirect) in Borrower, attempt to do any of the
foregoing or suffer any of the foregoing, nor shall Borrower or any Person
owning a direct or indirect interest in Borrower take, without limitation, any
action or fail to take any action, if, in any such case, doing so would (i)
cause the Loan or the exercise of any of Lender's rights in connection
therewith, to constitute a Prohibited Transaction (unless Borrower furnishes a
legal opinion reasonably satisfactory to Lender that the same is exempt from the
Prohibited Transaction provisions of ERISA and the Internal Revenue Code or
otherwise does not constitute a Prohibited Transaction), assuming solely for
this purpose that Lender is a Party In Interest or a Disqualified Person with
respect to an employee benefit plan, if any, which has directly or indirectly
invested in Borrower or SPE Entity, or (ii) otherwise result in Lender being
deemed in violation of any applicable provisions of ERISA with respect to the
Loan. Borrower and each SPE Entity shall take such steps as are reasonably
necessary to assure that each of them (and their respective shareholders,
partners and members) does not commit any act or fail to commit any act the
occurrence of which or the failure of which to occur would cause the Loan to be
a Prohibited Transaction.

     5.7.2 If the provisions of this Section 5.7 are violated, Borrower agrees,
at its own cost and expense, to take such steps as Lender shall reasonably
request to prevent the occurrence of a Prohibited Transaction or to correct the
occurrence of a Prohibited Transaction. Borrower agrees to indemnify, defend
and hold the Indemnified Parties free and harmless from and against all loss,
costs (including reasonable attorney's fees and expenses), taxes, penalties,
damages and expenses any Indemnified Parties may suffer by reason of the
investigation, defense and settlement of claims based upon a breach of the
foregoing provisions. The provisions of Section 5.5 shall apply to such
indemnification. The foregoing indemnification shall survive repayment of the
Note.

     SECTION 5.8 AGREEMENTS WITH AFFILIATES. Borrower shall not enter into any
contracts, agreement or other arrangement with any Affiliate of Borrower which
is not upon commercial terms and rates at least as favorable to Borrower as
contracts with third parties which are not Affiliates of Borrower without
Lender's prior written consent (which consent may be granted or denied in
Lender's sole and absolute discretion).

     SECTION 5.9 AFTER ACQUIRED PROPERTY. Borrower will grant Lender a first
lien security interest in and to all equipment and other personal property
owned by Borrower, whether or not used in the construction, maintenance and/or
operation of the Improvements, immediately upon acquisition of same or any part
of same.

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     SECTION 5.10 BOOKS AND RECORDS. Borrower shall keep and maintain at all
times at its principal office complete, true and accurate books of account and
records reflecting the results of its operations. Borrower shall permit Lender,
its agents, consultants and representatives, upon reasonable notice and at
reasonable times, to examine and audit the books and records of Borrower and
make copies thereof, at Borrower's expense. Borrower shall instruct the Manager
to make all records relating to the Properties available to Lender and shall
instruct the Manager to cooperate with an examination, audit or other inquiry
(including causing the personnel responsible for the Properties to be
reasonably available to respond to inquiries).

     SECTION 5.11 DELIVERY OF ESTOPPEL CERTIFICATES. Borrower shall, from time
to time, within thirty (30) days after written request from Lender, furnish to
Lender or such other party (or parties as may be requested by Lender) a written
certificate setting forth the unpaid principal of and interest due on the Note
and any other sums evidenced or secured by the Mortgage, and/or the other Loan
Documents, stating the date through which interest has been paid and stating
whether or not any offsets, defenses or counterclaims exist with respect to the
Loan Documents. If requested, such certificates will also attach true and
correct copies of this Agreement, the Note, the Guaranty, and other material
Loan Documents not of record.

     (b) Borrower shall use all reasonable efforts to deliver to Lender upon
request, such request not to be more frequent than once every twelve (12) months
for each Individual Property, which may be made from time to time, tenant
estoppel certificates from the commercial tenant occupying not less than
seventy-five percent (75%) of the gross leasable area at the Properties or an
Individual Property in form and substance reasonably satisfactory to Lender.

     SECTION 5.12 MANAGEMENT, ETC. 5.12.1 The Properties are at all times to be
managed on Borrower's behalf in a competent and professional manger by a
professional managing agent ("MANAGER"). Prior to engaging such Manager or
executing a Management Agreement such Manager and Management Agreement shall be
subject to reasonable approval by Lender, in its sole and absolute discretion,
it being understood that the Persons identified on Exhibit P are hereby approved
by Lender. Borrower represents it has delivered to Lender a true, correct and
complete copy of the Management Agreement between Manager and Borrower. Any
compensation of Manager with respect to its services performed at or in
connection with the Properties (other than an extension of the existing
Management Agreement for compensation which is no greater, and on terms and
conditions no less favorable to Borrower, than those contained in the existing
Management Agreement not to exceed, in any event, the Maximum Management Fee)
are subject to reasonable approval by Lender. As a condition to their retention
as Manager, each Manager shall be required to execute and deliver to Lender a
Manager consent to the Assignment of Management Agreement for the applicable
Individual Property or in the form attached as Exhibit Q or in such other form
as shall acceptable to Lender.

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     5.12.2 Borrower agrees that each Management Agreement shall provide that,
at the request of Lender, Manger shall immediately resign and Lender may
replace the Manager with a managing agent designated by Lender upon the
occurrence of any of the following events: (a) any default described in Section
6.1.1 hereof; (b) any Event of Default which continues beyond any applicable
grace and cure period; or (c) if on any DSCR Calculation Date, the Debt Service
Coverage Ratio for the preceding twelve (12) months is less than 85% of the Net
Operating Income on the Closing Date of the Initial Advance.

     5.12.3 Lender agrees that Borrower may, from time to time, pursuant to the
terms and conditions of the Management Agreement, terminate the Management
Agreement provided that Borrower simultaneously therewith enters into a new
Management Agreement with a Person having the requisite management experience
and otherwise upon such terms, conditions and provisions as are reasonably
acceptable to Lender including delivery to Lender, if required by the Rating
Agencies, of a new "non-consolidation" opinion regarding the parties to the
Management Agreement and their respective Affiliates acceptable to Lender and
the Rating Agencies and receipt of confirmation from the Rating Agencies that
the then current ratings for the Securities will not be withdrawn, qualified or
downgraded as a result thereof.

     SECTION 5.13 FINANCIAL STATEMENTS; AUDIT RIGHTS. 5.13.1 Until the Loan is
repaid in full, Borrower shall cause the following financial statements and
documentation to be delivered at the time and in the form and manner referenced
below:

     (a) audited statements of financial position (balance sheet) of Borrower as
of the close of each fiscal year of Borrower during the term of the Loan, and of
income and retained earnings, changes in financial position and cash flows for
such fiscal year, which statements shall be duly certified by the Designated
Officer to fairly represent the financial condition of Borrower as of the date
thereof and to have been prepared in accordance with generally accepted
accounting principles and accompanied by an opinion of the Approved Accountant
(which opinion shall be unqualified and shall not contain any "statement of
emphasis") to the effect that such financial statements present fairly, in all
material respects, the financial condition of Borrower as of the end of the
fiscal year being reported on and that the results of the operations and cash
flows for said year are in conformity with generally accepted accounting
principles, consistently applied, and that the examination of the Approved
Accountant in connection with financial statements has been conducted in
accordance with generally accepted auditing standards and included such tests of
the accounting records and such other auditing procedures as the Approved
Accountant deemed necessary in the circumstances,

     (b) an unaudited quarterly balance sheet of Borrower and statement of
profits and losses, such quarterly financial statements to be certified by a
Designated Officer to fairly represent the financial condition of Borrower as
of the date thereof and to have been prepared in accordance with generally
accepted accounting principles,

     (c) a monthly operating statement showing all revenues, expenses and net
cash flow for the applicable calendar quarter and year-to-date results and
variances from any

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<PAGE>
Approved Budget and such other matters as Lender shall reasonably require, which
monthly operating statements shall be certified by a Designated Officer to be
true, correct and complete in all material respects and shall be prepared on a
cash basis,

          (d)  the statements to be delivered to Lender in accordance with
Section 8(c) of the Cash Management Agreement, certified as provided therein,

          (e)  Intentionally deleted,

          (f)  a schedule of all accounts payable at the end of each calendar
quarter, certified by a Designated Officer to be true, correct and complete in
all material respects,

          (g)  monthly Rent Rolls, certified by a Designated Officer to be true
and correct in all material respects and

          (h)  such other reports and information which Lender reasonably
requires certified by a Designated Officer to be true, correct and complete in
all material respects.

          5.13.2    The statements referred to in paragraph (a) of Section
5.13.1 above shall be delivered to Lender within ninety (90) days after the
last day of each fiscal year of Borrower. The statements referred to in
paragraph (b) and paragraph (f) of Section 5.13.1 above shall be delivered to
Lender within thirty (30) days after the last day of each calendar quarter. The
reports referred to in paragraph (c) and paragraph (g) above shall be delivered
to Lender within twenty (20) days after the last day of each calendar month.
The reports or information referred to in paragraph (d) shall be delivered to
Lender as required by the Cash Management Agreement. All Financial Statements
shall be in form and substance satisfactory to Lender.

          5.13.3    Each Financial Statement described in paragraphs (a)-(c) of
Section 5.13.1 above shall be accompanied by a Borrower's Certificate
certifying that to the best of Borrower's knowledge, Borrower has observed and
performed, in all material respects, all of its covenants and other agreements
contained in this Agreement, and the other Loan Documents, whether there exists
any material default or Event of Default and, if there is, specifying the nature
and period of existence thereof and the action Borrower is taking or proposing
to take with respect thereto.

          SECTION 5.14   MAINTENANCE OF NON-TAXABLE STATUS. Borrower will
maintain its status of being taxed as a partnership for the purposes of
federal, state and local income taxes.

          SECTION 5.15   LENDER'S ATTORNEYS' FEES AND EXPENSES. Borrower shall
appear in and defend any action or proceeding purporting to have a material
adverse effect on the security of the Mortgage or the security interests
granted under any of the other Loan Documents or the rights and powers of
Lender under any of the Loan Documents and Borrower (in addition to Lender's
attorneys' fees and expenses to be paid by Borrower otherwise pursuant to this
Agreement or the other Loan Documents) shall pay all of Lender's reasonable
attorneys' fees and expenses in connection with the enforcement of this
Agreement

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<PAGE>
and the other Loan Documents and the collection of all amounts payable hereunder
and thereunder. In case of any Event of Default under this Agreement or any of
the other Loan Documents or if any action or proceeding is commenced in which it
becomes necessary to defend or uphold the Lien or priority of the Mortgage or
the other Loan Documents or which has a material adverse effect on Lender's
interests in the Properties or any part thereof, including, but not-limited to
eminent domain, or proceedings of any nature affecting the Properties or
involves the bankruptcy, insolvency, arrangement, reorganization or other form
of debtor relief with respect to Borrower or any other Significant Party or
relating to a decedent, then Lender may, but without obligation to do so, and
without releasing Borrower or any other Significant Party from any obligation
hereunder or under the other Loan Documents make such appearances, disburse such
reasonable sums and take such action as Lender deems necessary or appropriate to
protect Lender's interest in the Properties. All reasonable costs incurred by
Lender, including reasonable attorneys' fees and disbursements, in taking any
action described above, shall be paid by Borrower upon demand together with
interest thereon at the Applicable Interest Rate from the date which is ten (10)
days after demand therefor by Lender through the date of repayment by Borrower
and the same shall be deemed to constitute protective advances evidenced by the
Note and secured by the Mortgage and the other Loan Documents.

          SECTION 5.16  ENVIRONMENTAL.  5.16.1 Borrower shall not (and it shall
not permit any tenant, subtenant, contractor, agent or manager to) locate,
produce, use, store, treat, transport, incorporate, discharge, emit, release,
deposit or dispose of any Hazardous Substance in, upon, under, at, over or from
any Properties, except that Borrower (its tenants, subtenants, manager,
contractors or agents) may store, locate and use on an Individual Property,
Hazardous Substances which are (1) customarily located, stored or used in
properties similar to such Property or (2) unique to a tenant's business located
in such Individual Property, provided that such Hazardous Substances described
in clauses (1) or (2) above are at all times stored, located and used in
compliance with all Environmental Laws. Borrower shall not permit any Hazardous
Substances to be located, produced, used, stored, treated, transported,
incorporated, discharged, emitted, released, deposited, disposed of or to escape
therein, thereupon, thereunder, thereover or therefrom in violation of any
Environmental Law, and shall comply with all Environmental Laws which are
applicable to the Individual Property. Borrower shall not engage in any conduct
in connection with the Individual Property that may subject Borrower to
Environmental Costs, or contribute to or aggravate a release of Hazardous
Substances. In addition to the foregoing restrictions, Borrower agrees that no
asbestos, ACM, materials containing urea-formaldehyde, or transformers,
capacitors, ballasts or other equipment that contain PCBs are, or will at any
time be, located about the Individual Property.

          5.16.2  Borrower shall promptly within the time permitted by
Environmental Laws, initiate and diligently pursue to completion, any and all
remedial action required pursuant to any Environmental Laws in response to the
presence of any Hazardous Substances at, on, under or about, or emanating from,
any Individual Property and shall take such remedial action as is required to
minimize any impairment of Lender's Lien on, and security interest in, the
Individual Property. If Borrower undertakes any remedial action with respect to
any Hazardous Substance about the Individual Property, Borrower shall conduct
and

                                       61
<PAGE>
complete such remedial action in compliance with all applicable Environmental
Laws. If any Hazardous Substance is removed or caused to be removed from the
Individual Property by Borrower, the generator number assigned by the
Environmental Protection Agency to such Hazardous Substance shall not be in the
name of Lender and Borrower shall assume any and all liability for such removed
Hazardous Substance.

     5.16.3 The representations and warranties contained in Section 4.20 and the
covenants contained in this Section 5.16 shall be deemed continuing covenants
for the benefit of Lender, and any successors and assigns of Lender, including
but not limited to any purchaser at the foreclosure sale, any transferee of the
title of Lender or any other purchaser at a foreclosure sale, and any subsequent
owner of an Individual Property, and shall survive the termination of this
Agreement, or the satisfaction or release of the Mortgage, any foreclosure of
the Mortgage and/or any acquisition of title to an Individual Property or any
part thereof by Lender, or anyone claiming by, through or under Lender, by deed
in lieu of foreclosure or otherwise. The rights and remedies of Lender under
this Agreement shall not inure to the benefit of (i) any purchaser of an
Individual Property at a foreclosure sale, (ii) any Person taking title to the
Individual Property by deed in lieu of foreclosure or (iii) any successor or
assign of any Person described in clauses (i) and (ii) above, except that
Lender's rights shall inure to the benefit of the parties described in clauses
(i), (ii) and (iii) hereof if such parties are Lender (including, for these
purposes, Lender's successors and assigns as holder of the Loan Documents), any
beneficiaries of any Loan Pool, any Participant and any of Lender's (or such
successors', assigns', beneficiaries' or Participant's) Affiliates or nominees.

     5.16.4 Borrower shall give prompt written notice to Lender of:

          (i)    any proceeding or inquiry by any Governmental Authority with
     respect to the presence of any Hazardous Substance on an Individual
     Property or the migration thereof from or to other property;

          (ii)   all claims made or threatened by any third party against
     Borrower or the Property relating to any loss or injury resulting from any
     Hazardous Substance;

          (iii)  the storage, production, release, discharge or disposal of any
     Hazardous Substances on an Individual Property other than in accordance
     with all applicable Environmental Laws; and

          (iv)   Borrower's discovery of any occurrence or condition on any real
     property adjoining or in the vicinity of an Individual Property that could
     cause an Individual Property or any part thereof to be subject to any
     restrictions on the ownership, occupancy, transferability or use of the an
     Individual Property under any Environmental Law or to be otherwise subject
     to any restrictions on the ownership, occupancy, transferability or use of
     an Individual Property under any Environmental Law.

          5.16.5 Borrower shall keep Lender apprised of the status of, and any
material developments in, any governmental investigation relating to
Environmental Matters at or about

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the properties, any and all enforcement, clean-up, removal or other
governmental or regulatory actions instituted, completed or threatened pursuant
to any Environmental Law with respect to the Properties and any other claims,
actions, or proceedings with respect the Properties relating to Environmental
Matters. Borrower shall provide Lender with copies of all communications with
all Governmental Authorities relating to Hazardous Substances Claims. Without
Lender's prior written consent, Borrower shall not enter into any settlement
agreement, consent decree or other compromise with respect to any such
governmental investigation or action, or other claim, action or proceeding
relating to Hazardous Substances which Borrower does not have the funds
available to pay or which may adversely affect Lender's lien on, or the value
of, the Properties.

     5.16.6 The foregoing rights and remedies contained in this Section 5.16
are cumulative with, and in addition to, any rights and remedies Lender may
have against Borrower or any Significant Party under the other terms and
provisions of this Agreement, under any other Loan Document or under any
Environmental Law, including, without limitation, CERCLA.

     SECTION 5.17 REPORT UPDATES. 5.17.1 Lender reserves the right at any time
during the term of the Loan to conduct or require Borrower to update any
environmental reports previously delivered to Lender or, in the absence thereof,
to conduct such environmental inspections, audits and tests as Lender shall deem
necessary or advisable from time to time utilizing a company acceptable to
Lender; provided, however, that Borrower shall not be required to pay for such
environmental inspections, audits and test more often than one time during the
original term of the Loan plus once during any Extension Period as: (i) no Event
of Default exists under this Agreement or any other Loan Document; and (ii)
Lender has no cause to believe, in Lender's reasonable judgment, that there has
been a release or a threatened release of Hazardous Substances at the Properties
or that Borrower or the Properties is in violation of any applicable
Environmental Law, (iii) such inspections, audits and tests are not being
obtained in satisfaction of the provisions of Section 7.26 hereof; and (iv) such
inspection, audit or test has not been recommended in any other audit,
inspection, test or consultants report previously conducted with respect to the
Properties. In the event that any environmental site assessment report prepared
for the Properties recommends that an operations and maintenance plan be
implemented for any Hazardous Substance, including, without limitation,
asbestos, Borrower shall cause shall operations and maintenance plan to be
prepared and implemented at Borrower's expense upon request of Lender and in
accordance with the recommendation.

     5.17.2 Lender shall have the right from time to time throughout the term of
the Loan with respect to any Property to order additional Engineering Reports
with respect to any of the Properties. Such additional engineering reports shall
be paid for by Borrower in accordance with Section 5.4; provided, that Borrower
shall not be required to pay for such additional Engineering Reports more
frequently than once every calendar year unless (w) an Event of Default has
occurred, (x) any such additional Engineering Report is being obtained pursuant
to Section 5.26 hereof, (y) any such additional Engineering Report is required
by

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applicable Requirements to be obtained or (z) in Lender's reasonable judgment,
an adverse change in the condition of an Individual Property has occurred.

     5.17.3 Lender shall not be liable for any action or inaction by Borrower
with respect to any remedial or other response activity in connection with any
Hazardous Substance or any repair or replacement recommended in any engineering
report, notwithstanding any review or approval of Borrower's method of
remediation or repair or replacement, as applicable, or any response by Lender.

     SECTION 5.18 LENDER ACCESS TO PROPERTIES. Borrower will permit Lender, and
its agents, consultants or representatives, to enter upon each Individual
Property on reasonable notice at reasonable times subject to the rights of
tenants under Leases to inspect the Improvements. Lender or its agents,
consultants or representatives as part of any inspection may take soil, air,
water, building material and other samples, subject to the rights of tenants
under Leases.

     SECTION 5.19 DELIVERY OF DOCUMENTS REGARDING OWNERSHIP. Borrower will
deliver to Lender, on demand made therefor by Lender, copies of all documents
which evidence Borrower's title in or to any materials, fixtures or articles
incorporated in the Improvements or subject to the Lien of any of the Loan
Documents.

     SECTION 5.20 CONDUCT OF BUSINESS. Borrower and each Additional Borrower
shall at all times conduct its respective business so that each of the
representations and warranties set forth herein shall be, and at all times shall
remain, true, and, to the extent any legal opinion delivered to Lender contains
assumptions of fact based thereon, at such assumptions of fact are, and shall
always be, true.

     SECTION 5.21 MEZZANINE LOANS. Notwithstanding anything to the contrary
contained in Sections 5.1 to 5.20, the Affirmative Covenants set forth in
Article 5 of the Mezzanine Loan Agreement shall apply to any Individual Borrower
to whom a Mezzanine Loan is advanced.

     VI. EVENTS OF DEFAULT

     SECTION 6.1 EVENTS OF DEFAULT; DEFAULTS. The Term "DEFAULT" as used herein
shall mean any one or more of the events set forth below prior to the expiration
of the applicable notice or grace period, if any. The term "EVENT OF DEFAULT"
wherever used in this Agreement shall mean any one or more of the events set
forth below after the expiration of the applicable notice of grace period, if
any.

     6.1.1 NON-PAYMENT. Failure by Borrower to pay (a) any periodic installment
of interest or principal within ten (10) days after the date same shall become
due and payable hereunder or under the Note; or (b) the outstanding principal
balance of the Note, together with the interest accrued thereon and all other
sums which may then be owed by Borrower to Lender, at maturity or upon
prepayment of the Note in full; or (c) any other sums to be paid by

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Borrower hereunder or under any other Loan Documents within five (5) Business
Days from the date which Lender gives Borrower written notice of such failure.

         6.12  AFFIRMATIVE COVENANTS.  Failure by Borrower or any other Person
to duly keep, perform and observe any Affirmative Covenant or agreement in this
Agreement, the Note, the Mortgage, or in any other Loan Document (unless same
constitutes a default under any other clause of this Section 6.1 or any other
Loan Document, in which case, the grace or cure period, if any, set forth in
such other clause shall govern) within thirty (30) days after Lender gives
Borrower written notice of such failure; provided, that in the event such
failure is not susceptible of cure within such thirty (30) day period it shall
not be an Event of Default hereunder if such failure is curable and Borrower
commences to cure such default within such thirty (30) day period and diligently
prosecutes such cure to completion within one hundred eighty (180) days of the
expiration of such thirty (30) day period.

         6.13  NEGATIVE COVENANTS.  If Borrower or any other Person shall breach
or otherwise not comply with any Negative Covenant set forth herein or in any
other Loan Document (unless same constitutes a default under any other clause of
this Section 6.1 or any other Loan Document, in which case, the grace or cure
period, if any, set forth in such other clause shall govern) and such default
shall continue for twenty (20) Business Days after written notice thereof by
Lender to Borrower provided that no such notice and grace shall be required with
respect to a knowing, intentional and willful breach of a Negative Covenant.

         6.14  FINANCIAL STATEMENTS.  If any material inaccuracy shall exist in
any of the Financial Statements or in any other financial statement or other
information furnished to Lender by Borrower, any other Significant Party, any
officer of Borrower or any other Significant Party (or their direct or indirect
general partners, managers or managing members), or any other Person on behalf
of the foregoing Persons, to Lender pursuant to the provisions of this Agreement
or any other Loan Document or furnished to or to be furnished to Lender to
induce Lender to make the Loan or any advance thereunder, to extend the term of
the Loan or consent to any matter hereunder or under any other Loan Document.

         6.15  REPRESENTATIONS.  If at any time any representation, warranty or
certification made by Borrower in this Agreement, the Note or any other Loan
Document or in any document delivered pursuant to any Loan Document or otherwise
delivered in connection with the Loan shall be untrue, incorrect or misleading
in any material respect when made, provided, however, if the misrepresentation
or breach of warranty, covenant or agreement was not intentional and was
immaterial, Borrower shall have thirty (30) Business Days after receipt by
Borrower of notice from Lender in writing of such breach in which to cure said
default.

         6.16  OTHER LOAN DOCUMENTS.  If an "Event of Default" shall occur under
the Mortgage or any other Loan Document (or under any document evidencing or
securing or delivered in connection with any loan (other than the Loan) which
Lender may hereafter elect to make to Borrower) or any other default shall occur
and continue beyond the applicable notice or grace period, if any, under or with
respect to any other Loan Document (or under or with respect to any of the
documents evidencing or securing any such other loan).

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         6.17  DEMOLITION OR ALTERATIONS.  Except as permitted herein or in the
other Loan Documents, the commencement of demolition of or material alterations
(as such term is defined in the Mortgage) to any Property without the prior
written consent of Lender, which consent may be withheld by Lender in Lender's
sole discretion.

         6.18  FAILURE TO DELIVER ESTOPPEL CERTIFICATE.  If Borrower shall fail
to deliver any estoppel certificate required by Section 5.11 within the time
period provided in said Section and such event continues for more than ten (10)
Business Days after written notice from Lender to Borrower.

         6.19  RESERVES; DEPOSITS.  If Borrower or Manager fails to deposit any
Receipts into the Clearing Account within the time period provided in the Cash
Management Agreement to do so.

         6.1.10  CESSATION OF BORROWER.  If Borrower or any other non-natural
Person which is a Significant Party ceases to exist and such event continues for
more than ten (10) Business Days after written notice from Lender to Borrower.

         6.1.11  TRANSFER.  If in violation of Section 5.1 hereof (a) any
Property, or any part thereof, is Transferred or (b) any legal or beneficial
interest in Borrower shall be Transferred.

         6.1.12  LIENS.  If in violation of Section 5.2, any Property or any
part thereof is mortgaged or any other Lien is voluntarily placed thereon by
Borrower.

         6.1.13  INVOLUNTARY BANKRUPTCY, ETC.  The entry by a court of (a) a
decree or order for relief in respect of any Individual Borrower in an
involuntary case or proceeding under any applicable Federal or state bankruptcy,
insolvency, reorganization or other similar law or (b) a decree of order
adjudging any Individual Borrower a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of any Individual Borrower under any applicable
Federal or state bankruptcy, insolvency, reorganization or other similar law, or
appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or
other similar official of any Individual Borrower or of any substantial part of
an Individual Property of, or ordering the winding up or liquidation of the
affairs of any Individual Borrower, and the continuance of any such decree or
order for relief or any such other decree or order unstayed and in effect for a
period of one hundred twenty (120) days.

         6.1.14  VOLUNTARY BANKRUPTCY, ETC.  The commencement by any Individual
Borrower of a voluntary case or proceeding under any applicable Federal or state
bankruptcy, insolvency, reorganization or other similar law or of any other case
or proceeding to be adjudicated a bankrupt or insolvent, or the consent by any
Individual Borrower to the entry of a decree or order for relief in respect of
Individual Borrower or such Individual Borrower in an involuntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or
insolvency case or proceeding against Individual Borrower or such Individual
Borrower or the

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filing by any Individual Borrower of a petition or answer or consent seeking
reorganization or relief under any applicable Federal or state bankruptcy,
insolvency, reorganization or other similar law, or the consent by any
Individual Borrower to the filing of such petition or to the appointment of or
taking possession by a custodian, receiver, liquidator, assignee, trustee,
sequestrator or similar official of any Individual Borrower or of any
substantial part of any property of any Individual Borrower or the making by
any Individual Borrower of an assignment for the benefit of creditors, or the
admission by any Individual Borrower in writing of its inability to pay its
debts generally as they become due.

     6.1.15  JUDGMENTS.  If, at any time, a judgment shall be rendered against
a Significant Party which could have a Material Adverse Effect on the ability
of a Significant Party to perform any of its obligations, if any, under this
Agreement, the Note, or any other Loan Document provided, that, if such
Significant Party appeals said judgment and (w) said appeal (i) is timely
filed, (ii) is diligently pursued, (iii) is permitted by law, (iv) has the
effect of staying any action on such judgment, (x) such Significant Party posts
any security required by law or reasonably required by Lender in respect of
said judgment, and (y) said judgment does not subject Lender or any Property to
any civil or criminal penalties and (z) such judgment is not a Lien on any
Property or any other collateral for the Loan then it shall not be an Event of
Default hereunder until such judgment is final and non-appealable.

     6.1.16  TERMINATION OR MODIFICATION OF LEASES.  Except as otherwise
expressly permitted under Section 5.5 of this Agreement, if any Major Lease
shall be terminated or materially modified or amended by Borrower without the
prior written consent of Lender.

     6.1.17  ORGANIZATIONAL DOCUMENTS.  If (a) at any time any Organizational
Document of Borrower or the SPE Entity is modified in violation of Article IX
hereof or (b) Borrower or the SPE Entity shall fail to comply with the
bankruptcy remote single purpose entity requirements of its Organizational
Documents or (c) Borrower or SPE Entity shall otherwise violate Article IX of
this Agreement.

     6.1.18  DELIVERY OF FINANCIAL STATEMENTS.  If Borrower or any Guarantor
or Manager fails to deliver to Lender any Financial Statement required to be
delivered hereunder or under the Cash Management Agreement or any other Loan
Document, and such failure continues (i) for fifteen (15) days after written
notice from Lender with respect to any Financial Statement required to be
delivered to Lender on a monthly basis, (ii) for thirty (30) days after written
notice from Lender with respect to any Financial Statement required to be
delivered to Lender on a quarterly basis, (iii) for sixty (60) days after
written notice from Lender with respect to any Financial Statement required to
be delivered to Lender on an annual basis and (iv) for thirty (30) days after
request therefor by Lender with respect to any other Financial Statement.

     6.1.19  ERISA.  If Borrower shall breach any of the provisions of Section
5.7.

     6.1.20  TERMINATION OF MANAGEMENT AGREEMENT, ETC.  Except as otherwise
provided in this Agreement, if without Lender's prior written consent the
Manager resigns or

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is removed or the Management Agreement terminates, and such Manager is not
replaced, within thirty (30) days after notice of such resignation, removal or
termination with a replacement Management Agreement and manager satisfying the
provisions of Section 5.12 hereof.

     6.1.21    OTHER CONDITIONS FOR ACCELERATION. The occurrence of any
conditions set forth herein, in the Note, the Mortgage, or any other Loan
Document permitting Lender to accelerate the Indebtedness which continue to
exist beyond any applicable grace or cure period.

     6.1.22    MATERIAL ADVERSE CHANGE. If, in Lender's reasonably exercised
commercial business judgment, there shall occur any event (a) which has a
Material Adverse Effect on the financial condition, operations, performance,
business of all of the Properties, or the ability of Borrower and the Guarantors
to make any payment or otherwise perform any or all of their respective
obligations under this Agreement, the Note and/or any other Loan Document to
which each is a party, or (b) as a result of which, the legality, validity or
enforceability of this Agreement, the Note and/or any other Loan Document, or
the lien and security interest of Lender pursuant to the Mortgage or any other
Loan Document purporting to grant to Lender a Lien in any collateral shall be
materially effected.

     6.1.23    DENIAL OF OBLIGATION. If (a) Borrower or any Guarantor shall take
the position in any written communication with Lender or in any litigation that
any Loan Document is no longer the valid, binding and enforceable obligation of
Borrower or any Guarantor a party thereto or (b) any Guarantor shall revoke,
contest, commence any action or raise any defense against its obligations under
the Guaranty or any other Loan Document.

     6.1.24    MISAPPLICATION OF RECEIPTS. If Borrower shall (a) apply any
monies delivered to Borrower pursuant to Section 8 of the Cash Management
Agreement (or the "Disbursement Instructions" effectuating the same) other than
to pay amounts permitted to be paid with such funds pursuant to the provisions
of Section 8 of the Cash Management Agreement and such breach shall continue for
five (5) Business Days following notice thereof; provided, that no such notice
and grace shall be required with respect to an intentional breach of such
provision or (b) fail to pay to Lender any amounts required to be paid to Lender
pursuant to Section 8(c) of the Cash Management Agreement at the time such
payment is to be made to Lender thereunder.

     6.1.25    FAILURE TO PROVIDE FURTHER ASSURANCES. If, after thirty (30) days
notice from Lender to Borrower that Borrower has failed to comply with any of
the provisions of Section 7.26 hereof, Borrower fails to cure such default.

     6.1.26    LENDER ACCESS. If Lender or its agents, consultants or
representatives are not permitted, at all reasonable times on two (2) Business
Days' notice, to enter upon an Individual Property and to inspect the
Improvements or, if Lender or its representatives are not permitted to inspect
Borrower's books and records or are not furnished, within three (3) Business
Days after requested, copies of any of Borrower's books and records.

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     6.1.27 MEZZANINE DEFAULT. If any Event of Default described in Article 8 of
the Mezzanine Loan Agreement shall occur and continue beyond any applicable
grace or cure period.

     SECTION 6.2 RIGHTS UPON EVENT OF DEFAULT. Upon the occurrence and during
the continuance of any Event of Default, Lender shall, in addition to all other
remedies conferred upon Lender at law or in equity or by the terms of the Note,
the Mortgage and the other Loan Documents, have the right but not the
obligation, to pursue any one or more of the following remedies, concurrently
or successively, it being the intent hereof that all such remedies shall be
cumulative and that no such remedy shall be to the exclusion of any other:

          (i)  take any action which, in Lender's sole judgment, is necessary
     or appropriate to effect observance and performance of the covenants,
     agreements and obligations (under this Agreement and the other Loan
     Documents) of Borrower, the Guarantors, or any other person providing
     collateral pursuant to or obligated to perform any of the terms and
     provisions of this Agreement or the other Loan Documents (each, an
     "OBLIGATED PARTY");

         (ii)  declare the Note to be immediately due and payable;

        (iii)  use and apply any monies deposited in the Clearing Account, the
     Cash Collection Account or the Tax and Insurance Escrow Account or any
     other monies deposited by Borrower with Lender, regardless of the purpose
     for which the same were deposited, to cure any default or Event of
     Default or to apply on account of any indebtedness under this Agreement
     or any of the other Loan Documents which is due and owing to Lender or to
     operate the Properties or for any other purposes described herein or in any
     other Loan Document;

         (iv)  institute an action, suit or proceeding at law or in equity for
     the specific performance of any covenant, condition or agreement contained
     herein or in the Mortgage, Note or any other Loan Document, or in aid of
     the execution of any power granted hereunder or for the enforcement of any
     other appropriate legal or equitable remedy; and

          (v)  setoff against the obligations to Lender of Borrower or any
     other Obligated Party, any sum owed by Lender or any Affiliate of Lender
     in any capacity to Borrower or such other Obligated Party, or any property
     of any of them in the possession of Lender or any Affiliate of Lender.

     VII. GENERAL PROVISIONS

     SECTION 7.1 RIGHTS CUMULATIVE; WAIVERS. 7.1.1. Each right, power and remedy
herein conferred upon Lender herein or in any of the other Loan Documents is
cumulative and in addition to every other right, power or remedy, express or
implied, now or hereafter provided by law or in equity, and each and every
right, power and remedy herein set forth or otherwise so existing may be
exercised, concurrently or independently, from time to

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time as often and in such order as may be deemed expedient to Lender. The
exercise of one right, power or remedy shall not be a waiver of the right to
exercise at the same time or thereafter any other right, power or remedy; and no
delay or omission of Lender in the exercise of any right, power or remedy
accruing hereunder or rising otherwise shall impair any such right, power or
remedy, or be construed to be a waiver of any default or acquiescence therein.
Enumeration of special rights or powers herein, in the Mortgage or in the other
Loan Documents shall not be construed to limit any grant of general rights or
powers herein, in the Mortgage or in the other Loan Documents or limit Lender's
exercise of any and all rights granted under the laws of the State where the
Property is located, the State of New York or the United States of America. No
act of Lender shall be construed as an election to proceed under any provision
herein or in any other Loan Document to the exclusion of any other provision
herein. Except as otherwise specifically required herein, notice of the exercise
of any right, remedy or power granted to Lender by this Agreement or any other
Loan Document is not required to be given. Lender shall be entitled to enforce
payment of the Loan and any other amount payable under the Loan Documents and
performance of this Agreement and the other Loan Documents and to exercise all
rights and remedies under this Agreement or the other Loan Documents or
otherwise at law or in equity, notwithstanding that some or all of the
indebtedness secured thereby may now or hereafter be otherwise secured, whether
by mortgage, security agreement, pledge, lien, assignment or otherwise. Neither
the acceptance of this Agreement nor its enforcement, shall prejudice or in any
manner affect Lender's right to realize upon or enforce any other security now
or hereafter held by Lender, it being agreed that Lender shall be entitled to
enforce this Agreement, the Mortgage, and any other security now or hereafter
held by Lender hereunder, under any of the other Loan Documents or otherwise in
such order and manner as Lender may determine in its absolute discretion.

          7.1.2  Lender may, by written notice to Borrower, at any time and from
time to time, waive in whole or in part and absolutely or conditionally any
default or Event of Default hereunder. Any such waiver shall be subject to such
conditions or limitations as shall be specified in any such notice. In the case
of any such waiver, the rights of Borrower shall be otherwise unaffected, and
any default or Event of Default so waived shall be deemed to be cured and not
continuing only to the extent and only on the conditions or limitations set
forth in such waiver, but no such waiver shall extend to any subsequent or other
default or Event of Default, or impair any right, remedy or power consequent
thereupon.

          SECTION 7.2  LENDER'S ACTION FOR ITS OWN PROTECTION ONLY.  The
authority herein conferred upon Lender, and any action taken by Lender, to
inspect the Properties, to review and/or approve all documents and instruments
submitted to Lender, or otherwise, will be exercised and taken by Lender and by
Lender's employees, agents, consultants and representatives for their own
protection only and may not be relied upon by Borrower or any other party for
any purposes whatever; and neither Lender nor Lender's employees, agents,
consultants and representatives shall be deemed to have assumed any
responsibility to Borrower or any other party with respect to any such action
herein or under any of the other Loan Documents authorized to be taken by Lender
or Lender's employees, agents and representatives. Any review, investigation or
inspection conducted by Lender, any architect, engineer or other consultant
retained by Lender, or any agent or representative of Lender in

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order to verify independently Borrower's satisfaction of the covenants,
agreements and obligations of Borrower under this Agreement or any of the other
Loan Documents, or the validity of any representations and warranties made by
Borrower (regardless of whether or not the party conducting such review,
investigation or inspection should have discovered that any of such conditions
precedent were not satisfied or that any such covenants, agreements or
obligations were not performed or that any such representations or warranties
were not true) shall not affect (or constitute, except as may specifically be
provided in this Agreement or in the other Loan Documents to the contrary, a
waiver by Lender of) (i) any representations and warranties under this
Agreement or the other Loan Documents or Lender's reliance thereon or (ii)
Lender's reliance upon any certifications of Borrower or any other party in
connection with the Loan, or any other facts, information or reports furnished
to Lender by Borrower in connection with the Loan.  Lender neither undertakes
nor assumes any responsibility or duty to Borrower to select, review, inspect,
supervise, pass judgment upon or inform Borrower of any matter in connection
with the Properties, and Borrower shall rely entirely upon its own judgment
with respect to such matters, and any review, inspection, supervision, exercise
of judgment or supply of information to Borrower by Lender in connection with
such matters is for the protection of Lender only and neither Borrower nor any
third party is entitled to rely thereon.

          SECTION 7.3 NO THIRD PARTY BENEFICIARIES.  All conditions to the
obligations of Lender hereunder and under the other Loan Documents are imposed
solely and exclusively for the benefit of Lender and its participants, if any,
and assigns and no other Person (other than Servicer) shall have standing to
require satisfaction of such conditions in accordance with their terms or be
entitled to assume that Lender will refuse to advance proceeds of the Loan or
refuse to agree or consent to any matter in the absence of strict compliance
with any or all thereof, and no other person shall, under any circumstances, be
deemed to be the beneficiary of such conditions, any or all of which may be
freely waived in whole or in part by Lender at any time if in its sole
discretion it deems it advisable to do so, it being further understood that
Lender and its assigns or participants, if any, shall have no obligation to see
to it that the Improvements or any other work required or contemplated hereby
or by the other Loan Documents are properly and/or timely completed.

          SECTION 7.4 PAYMENT OF EXPENSES.  7.4.1  Borrower will, at the
Closing and at all times thereafter, pay all reasonable costs and fees incurred
by Lender in connection with the preparation, negotiation, consummation,
execution, repayment, collection and enforcement of the Loan, the Loan
Documents and any approval, consent, amendment, modification or waiver related
thereto.  Without limiting the generality of the foregoing, Borrower will pay:

          (a)  Lender's Counsel Fees in connection with the foregoing;

          (b)  all taxes and recording fees and expenses, including, without
limitation, stamp and/or mortgage taxes and transfer taxes, if any;

          (c)  all fees and out-of-pocket expenses incurred by Lender,
including all expenses of Lender and its respective agents and representatives,
in connection with any

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default hereunder, under the Note, or under any other Loan Document or the
collection or enforcement thereof;

     (d)  subject to Section 5.16 and 5.17, all fees and expenses of any
environmental, engineering, appraisal, construction, insurance or other
consultants retained by Lender in connection with the Loan or the
administration, enforcement or collection thereof; and

     (e)  all brokers' fees and commissions relative to the Loan, the
Properties and any lease or purchase contract affecting same.

     7.4.2. All costs and expenses incurred and payments made by Lender under
this Agreement or any of the other Loan Documents from time to time, which are
to be paid or reimbursed by Borrower as described herein or in any of the other
Loan Documents shall, as and when advanced or incurred by Lender, constitute
protective advances evidenced by the Note and secured by the Mortgage and the
other Loan Documents to the same extent and with the same effect as if the
terms and provisions of this Agreement were set forth therein, whether or not
the principal balance of the Note plus such protective advances shall exceed
the face amount of the Note. If Borrower shall fail to reimburse or pay to
Lender the amount of such protective advances by the applicable due date
therefor, interest at the Applicable Interest Rate shall accrue on such
protective advances from the date such protective advances were made by Lender
to and including the date that such protective advances are reimbursed or paid
to Lender in full together with all such accrued interest thereon.

     SECTION 7.5 INDEMNIFICATION. 7.5.1. In addition to any other
indemnifications provided herein or in the other Loan Documents, Borrower shall
protect, defend, indemnify and save harmless the Indemnified Parties from and
against all liabilities, obligations, claims, demands, damages, penalties,
causes of action, losses, fines, costs, expenses (including, without
limitation, reasonable attorneys' fees and disbursements) and Environmental
Costs, imposed upon or incurred by or asserted against any Indemnified Party
(other than by reason of any of such Indemnified Party's or their respective
agents', employees', or representatives' gross negligence or willful
misconduct, provided such gross negligence or willful misconduct is determined
to have occurred by a final and unappealable decision of a court of competent
jurisdiction) by reason of (a) any funds deposited with Lender, (b) receipt and
application of any Receipts or an Indemnified Party's payment or non-payment of
cost and expenses of operating the Properties following an Event of Default
which continues beyond any applicable grace or cure period; (c) any accident,
injury to or death of Persons or loss of or damage to property occurring on or
about the Properties or any part thereof or on the adjoining sidewalks, curbs,
adjacent property or adjacent parking areas, streets or ways; (d) any design,
construction, alteration, operation, maintenance, use, nonuse or condition of
the Properties or any part thereof or on adjoining sidewalks, curbs, adjacent
property or adjacent parking areas, streets or ways; (e) any failure on the
part of Borrower to perform or comply with any of the terms of this Agreement or
any other Loan Document; (f) performance of any labor or services or the
furnishing of any materials or other property in respect of the Properties or
any part thereof; (g) any failure of the Properties to comply with any
Requirements; (h) the presence in,

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at or under the Properties of any Hazardous Substance, or any release or
discharge on or from the Properties of any Hazardous Substance; (i) any
representation or warranty made in the Note, the Mortgage, this Agreement or
any of the other Loan Documents being false or misleading in any material
respect as of the date such representation or warranty was made, (j) except to
the extent any such claims are made solely as a result of any dealings between
Lender and any broker, finder or similar person claiming to be entitled to a
commission in connection with the Loan, and with whom Borrower has had no
dealings with in connection with the Loan, any claim by brokers, finders or
similar Persons claiming to be entitled to a commission in connection with any
Lease or other action involving the Properties or any part thereof; (k) the
claims of any lessee of any portion of the Properties or any person acting
through or out of any lessee or otherwise arising out of or as a consequence of
any Lease; (l) the performance of the parties hereto of their respective
obligations hereunder or thereunder. Any amounts payable to any Indemnified
Party by reason of the application of this Section 7.5 shall become immediately
due and payable and shall bear interest at the Default Rate from the date loss
or damage is sustained by any Indemnified Party until paid. The obligations and
liabilities of Borrower under this Section 7.5 shall survive any termination,
satisfaction, or assignment of this Agreement and the exercise by Lender of any
of its rights or remedies hereunder, including, but not limited to, the
acquisition of the Properties by foreclosure or a conveyance in lieu of
foreclosure.

     7.5.2 In case any claim, action or proceeding (a "CLAIM") is brought
against any Indemnified Parties in respect of which indemnification may be
sought by such Indemnified Parties pursuant to Section 7.5.1, such Indemnified
Parties shall give notice thereof to Borrower promptly after becoming aware of
the same, provided, however, that the failure of such Indemnified Parties to so
notify Borrower shall not limit or affect such Indemnified Parties' rights to
be indemnified pursuant to Section 7.5.1, except to the extent such delay shall
materially and adversely prejudice Borrower's defense of such Claim. Upon
receipt of such notice of Claim, Borrower shall, at its sole cost and expense,
diligently defend any such Claim with counsel reasonably satisfactory to such
Indemnified Parties (it being understood that counsel selected by Borrower's
insurance carrier shall be deemed to be acceptable to such Indemnified Parties
provided such insurer is an acceptable insurer under this Agreement and the
other Loan Documents or otherwise was accepted by Lender as an insurer), which
counsel may, without limiting the rights of Indemnified Parties pursuant to the
next succeeding sentence of this Section 7.5.2, also represent Borrower in such
Claim. In the alternative, Indemnified Parties may elect to conduct their own
defense through counsel of their own choosing, and at the expense of Borrower,
if (A) such Indemnified Parties reasonably determine that the conduct of its
defense by Borrower presents a conflict or potential conflict between Borrower
and Lender that would make separate representation advisable or otherwise could
be prejudicial to its interests, (B) Borrower refuses to defend or (C) Borrower
shall have failed, in Lender's reasonable judgement, to diligently defend the
Claim (or, if applicable, its insurance carrier). Except as provided in the
preceding sentence, Borrower shall not be responsible for the fees of counsel
for any Indemnified Parties incurred in connection with the indemnification
contained in Section 7.5.1. Borrower may settle any Claim against Indemnified
Parties without such Indemnified Parties' consent, provided (i) such settlement
is without any liability, cost or expense whatsoever to such Indemnified
Parties,

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(ii) the settlement does not include or require any admission of liability or
culpability by such Indemnified Parties under any Requirement, whether criminal
or civil in nature, and (iii) Borrower obtains an effective written release of
liability for such Indemnified Parties from the party to the Claim with whom
such settlement is being made, which release must be reasonably acceptable to
such Indemnified Parties, and a dismissal with prejudice with respect to all
claims made by the party with whom such settlement is being made, with respect
to any pending legal action against such Indemnified Parties in connection with
such Claim. If Indemnified Parties are conducting their own defense as provided
above, Borrower shall be responsible for any good faith settlement of such Claim
entered into by such Indemnified Parties upon Borrower's consent. Nothing
contained herein shall be construed as requiring any Indemnified Parties to
expend funds or incur costs to defend any Claim in connection with the matters
for which such Indemnified Parties are entitled to indemnification pursuant to
Section 7.5.1.

          SECTION 7.6  NOTICES.  Any notice, report, demand or other instrument
authorized or required to be given or furnished ("NOTICES") shall be in writing
and shall be given as follows: (a) by hand delivery; (b) by deposit in the
United States mail as first class certified mail, return receipt requested,
postage paid; (c) by overnight nationwide commercial courier service; or (d) by
telecopy transmission (other than for notices of default) with a confirmation
copy to be delivered by duplicate notice in accordance with any of clauses
(a)-(c) above, in each case, to the party intended to receive the same at the
following address(es):

          Lender:             Credit Suisse First Boston Mortgage Capital LLC
                              Principal Transactions Group
                              11 Madison Avenue
                              New York, New York 10010
                              Attention: Edmund Taylor
                              Re: CSFB/Donatelli & Klein/Anthony Poll - PTG
                              Telecopie: (212) 325-8162

          with copies to:     Credit Suisse First Boson Mortgage Capital LLC
                              Legal & Compliance Department
                              11 Madison Avenue
                              New York, New York 10010
                              Attention: Colleen Graham, Esq.
                              Re: CSFB/Donatelli & Klein/Anthony Poll - PTG
                              Telecopie: (212) 325-8220

          and:                Pacific Life Insurance Company
                              700 Newport Center Drive
                              Newport Beach, California 92660
                              Attention: Wendy Balden
                              Re: CSFB/Donatelli & Klein
                              Telecopier: (714) 760-4356

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with a copy to:  Cadwalader, Wickersham & Taft
                 100 Maiden Lane
                 New York, New York 10038
                 Attention: Fredric L. Altschuler, Esq.
                 Telecopier: (212) 504-6666

Borrower:        c/o Donatelli & Klein, Inc.
                 7200 Wisconsin Avenue, Suite 310
                 Bethesda, Maryland 20814
                 Attention: Douglas Donatelli
                 Telecopier: (301) 654-7675

with a copy to:  Arnold & Porter
                 555 12th Street, N.W.
                 Washington, DC 20004
                 Attention: S. Lee Narrow, Esq.
                 Telecopier: (202) 942-5999

     Any party may change the address to which any such Notice is to be
delivered, by furnishing ten (10) days written notice of such change to the
other parties in accordance with the provisions of this Section 7.6. Notices
shall be deemed to have been given on the date they are actually received;
provided, that the inability to deliver Notices because of a changed address of
which no Notice was given, or rejection or refusal to accept any Notice offered
for delivery shall be deemed to be receipt of the Notice as of the date of such
inability to deliver or rejection or refusal to accept delivery. Notice for
either party may be given by its respective counsel. Additionally, notice from
Lender may also be given by the Servicer.

     SECTION 7.7 NO ORAL MODIFICATION. Borrower recognizes that, in general,
borrowers who experience difficulties in honoring their loan obligations, in an
effort to inhibit or impeded lenders from exercising the rights and remedies
available to lenders pursuant to mortgages, notes, loan agreements or other
instruments evidencing or affecting loan transactions, frequently present in
court the argument, often without merit, that some loan officer or administrator
of lender made an oral modification or made some statement which could be
interpreted as an extension or modification or amendment of one or more debt
instruments and that the borrower relied to its detriment upon such "oral
modification of the loan document." For that reason, and in order to protect
Lender from such allegations in connection with the transaction contemplated by
this Agreement, Borrower acknowledges that this Agreement, the Mortgage, the
Note, and the other Loan Documents and all instruments referred to in any of
them can be extended, modified or amended only in writing executed by Lender and
Borrower and that none of the rights or benefits of Lender can be waived
permanently except in a written document executed by lender. Borrower further
acknowledges Borrower's understanding that no officer or administrator of Lender
has the power or the authority from Lender to make an oral extension or
modification or amendment of any such instrument or agreement on behalf of
Lender.
<PAGE>
         SECTION 7.8 ASSIGNMENT BY LENDER.

         7.8.1 ASSIGNMENT. Lender may assign (and thereafter, at any time and
from time to time, repurchase) all or a portion of its rights and obligations
under this Agreement and the other Loan Documents to one or more Persons
("ASSIGNEES"; the term "ASSIGNEE" or "ASSIGNEES" shall, unless otherwise
expressly indicated, include Lender) and, upon such assignment to any such
Assignee, be released from its rights and obligations as Lender in respect of
such portion of the Loan, this Agreement and the other Loan Documents.

         7.8.2 PARTICIPATIONS. Lender and each of the other Assignees may sell
participations in the Loan to one or more Persons (collectively, the
"PARTICIPANTS"), not to exceed three at any one time. Notwithstanding such sale,
(i) the selling party's obligations to Borrower under this Agreement and the
other Loan Documents shall remain unchanged by reason thereof and (ii) the
selling party shall remain solely responsible to Borrower for the performance of
such obligations. In order to assist Lender in any sales of interests in the
Loan, Borrower agrees for itself and agrees to cause the SPE Entity each
Guarantor and the Manager to reasonably cooperate with Lender in connection with
any efforts by Lender to obtain one or more Assignees or Participants, to
provide additional information and to execute and deliver such further
documents, instruments or agreements, in each case, as Lender or any Assignee or
Participant may reasonably require.

         7.8.3 ASSIGNMENT AND ACCEPTANCE. From and after the effective date of
any assignment to an Assignee (i) the Assignee shall be a party hereto and to
each of the other Loan Documents to the extent of the applicable percentage or
percentages assigned to such Assignee and, except as otherwise specified herein,
shall succeed to the rights and obligations of Lender hereunder in respect of
such applicable percentage or percentages, and (ii) Lender shall relinquish its
rights and be released from its obligations hereunder and under the Loan
Documents to the extent of such applicable percentage or percentages. The
liabilities of Lender and each of the other Assignees shall be separate and not
joint and several. Neither Lender nor any Assignee shall be responsible for the
obligations of any other Assignee.

         7.8.4 OTHER BUSINESS. Lender, each Assignee and each Participant and
their respective Affiliates may accept deposits from, lend money to, act as
trustee under indentures of, and generally engage in any kind of business with,
Borrower, any Affiliate of Borrower, any of Borrower's subsidiaries and any
Person who may do business with or own interests in or securities of Borrower or
any such Affiliate or subsidiary, without any duty to account therefor to each
other.

         7.8.5 PRIVITY OF CONTRACT. This Agreement is being entered into by
Lender individually and as agent for all present and future Assignees, and
privity of contract is hereby created among Lender, all present and future
Assignees and Borrower.

         7.8.6 AVAILABILITY OF RECORDS. Borrower acknowledges and agrees that
Lender may provide to any Assignees or prospective Assignees, and that Lender
and each of the Assignees may provide to any Participants or prospective
Participants, originals or copies of

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this Agreement, all other Loan Documents and all other documents, instruments,
certificates, opinions, insurance policies, letters of credit, reports,
requisitions and other materials and information (hereinafter "BORROWER
INFORMATION") of every nature or description, and may communicate all oral
information, at any time submitted by or on behalf of Borrower, the SPE Entity,
the Manager, any Guarantor or any Affiliate of Borrower, the SPE Entity, any
Guarantor or the Manager.

         SECTION 7.9  SEVERABILITY.  In the event that any of the covenants,
agreements, terms or provisions contained in the Note, this Agreement, the
Mortgage, or in any other Loan Document shall be invalid, illegal or
unenforceable in any respect, the validity of the remaining covenants,
agreements, terms or provisions contained herein or in the Note, the Mortgage,
or in any other Loan Document shall be in no way affected, prejudiced or
disbursed thereby.

         SECTION 7.10  NO ASSIGNMENT BY BORROWER.  Except as expressly permitted
herein, Borrower shall not assign or transfer any of its rights hereunder
without the prior written consent of Lender. Any assignment made without
Lender's prior written consent shall be void.

         SECTION 7.11  GOVERNING LAW.  The place of negotiation, execution and
delivery of this Agreement being the State of New York, this Agreement shall be
governed by and construed and enforced in accordance with the internal laws of
the State of New York.

         SECTION 7.12  SUCCESSORS AND/OR ASSIGNS.  Subject to the restrictions
on transfer and assignment contained in this Agreement and the other Loan
Documents, whenever in this Agreement any of the parties hereto is referred to,
such reference shall be deemed to include the permitted successors and/or
assigns of such party, and this Agreement shall inure to the benefit of and
shall be binding on the parties hereto, the successors and/or assigns of such
party.

         SECTION 7.13  ENTIRE CONTRACT.  This Agreement and the other Loan
Documents, including all annexes, schedules and exhibits hereto and all other
documents furnished to Lender in connection with this Agreement, constitutes the
entire agreement between the parties hereto with respect to the subject matter
hereof and thereof and shall supersede and take the place of any other
instruments purporting to be an agreement of the parties hereto relating to the
transactions contemplated hereby, including, without limitation, any letter of
intent or loan commitment letter.

         SECTION 7.14  LIABILITY.  If Borrower consists of more than one Person,
the obligations and liabilities of each such Person hereunder and under the
other Loan Documents shall be joint and several.

         SECTION 7.15  COUNTERPARTS; HEADINGS.  This Agreement may be executed
in counterparts, each of which shall constitute an original, and which, when
taken together, shall constitute but one instrument. The captions and headings
of the various sections of this Agreement are for purposes of reference only and
are not to be construed as confining or

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limiting in any way the scope or intent of the provisions hereof. Whenever the
context requires or permits, the singular shall include the plural, the plural
shall include the singular, and the masculine, feminine and neuter shall be
freely interchangeable.

         SECTION 7.16  TIME OF THE ESSENCE.  Time is of the essence as to
Borrower's obligations under this Agreement and the other Loan Documents.

         SECTION 7.17  CONSENTS.

         7.17.1.  Any consent or approval by Lender in any single instance shall
not be deemed or construed to be Lender's consent or approval in any like matter
arising at a subsequent date. Any consent or approval requested of and granted
by Lender pursuant hereto or any of the other Loan Documents shall be narrowly
construed to be applicable only to Borrower and the matter identified in such
consent or approval and no third party shall claim any benefit by reason
thereof. Wherever this Agreement, the Mortgage, the Cash Management Agreement or
any other Loan Document refers to the consent or approval of Lender, or provides
that any document or Person will be satisfactory or acceptable to Lender or
words of similar import, (x) such consent or approval shall not be unreasonably
withheld, delayed or conditioned and (y) such consent or approval shall not be
effective unless given in writing. Wherever this Agreement, the Mortgage, the
Cash Management Agreement or any other Loan Document refers to the provision of
documents or other items being as Lender may require, provides for the selection
by Lender of any person to provide reports or other items hereunder or
thereunder or selection by Lender of any means of determining any matter or
otherwise refers to terms and conditions hereof being as Lender deems
appropriate, any such requirement, selection or determination of appropriateness
shall be made by Lender in its reasonable discretion, unless expressly provided
otherwise herein or therein.

         7.17.2.  Wherever in this Agreement, the Mortgage, the Cash Management
Agreement or any other Loan Document, reference is made to any consent or
approval not being "unreasonably withheld" or words of similar import, the same
shall be deemed to include within its meaning (unless expressly provided
otherwise) that if such consent or approval is to be granted, the same will
occur within a commercially reasonable period of time. If Borrower believes that
Lender has improperly failed to grant its consent or approval (or otherwise
improperly failed to act as requested by Borrower as described in Section 7.17.1
(e.g., determined that a document is not acceptable to Lender) hereunder or
under the Mortgage, the Cash Management Agreement or any other Loan Document
(including, without limitation, by failing to respond within a commercially
reasonable period of time) where such consent or approval is required to be
given by (or such action which was not taken is in breach of) the terms of this
Agreement or such other Loan Document, Borrower's sole remedy shall be to obtain
declaratory relief in a final, non-appealable judgment determining such
withholding to have been improper, whereupon such consent or approval shall be
deemed given (or such other action described in Section 7.17.1 shall be deemed
taken), and Borrower hereby waives all claims for damages or set-off resulting
from any withholding of consent or approval (or failure to take any other action
described in Section 7.17.1) by Lender.

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     SECTION 7.18 NO PARTNERSHIP. Nothing contained in this Agreement, or the
other Loan Documents shall be deemed to create an equity investment on the part
of Lender, or joint venture or partnership between Lender and Borrower, it
being the intent of the parties hereto that only the relationship of lender and
borrower shall exist with respect to the Properties. Borrower agrees that it
shall report this transaction for income tax purposes, and file all related tax
returns, in a manner consistent with the form of this transaction as a loan.

     SECTION 7.19 WAIVER OF JURY TRIAL. TO EXTENT PERMITTED BY APPLICABLE LAW,
EACH OF BORROWER AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
AGREEMENT, THE MORTGAGE, THE CASH MANAGEMENT AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF BORROWER, THE PARTNERS, THE GUARANTORS OR
LENDER RELATING TO THE LOAN, AND THE LENDING RELATIONSHIP WHICH IS THE SUBJECT
OF THIS AGREEMENT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER ENTERING
INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

     SECTION 7.20 LIMITED RECOURSE. Notwithstanding anything to the contrary
contained in this Agreement or in any of the other Loan Documents, except as
provided otherwise in this Section, neither Borrower nor any direct or indirect
member, shareholder, partner, principal, any Affiliate of Borrower, any SPE
Entity or any Significant Party, employee, officer, director, agent or
representative or Affiliate of any of them (each, a "RELATED PARTY") shall have
any personal liability for (i) the payment of any sum of money which is or may
be payable hereunder or under the Note, or any other Loan Document, including,
but not limited to, the repayment of the Indebtedness, or (ii) the performance
or discharge of any covenants, obligations or undertakings of Borrower hereunder
or under any Loan Document and no monetary or deficiency judgment shall be
sought or enforced against Borrower or any Related Party with respect thereto;
provided, however, a judgment may be sought against Borrower to enforce the
rights of Lender in, to, or against the Properties, including the Receipts, and
all other collateral granted as security under any Loan Document and Lender
shall have full recourse to and the right to proceed against the Properties and
such other collateral. Notwithstanding the foregoing, nothing contained herein
shall impair the validity of the Indebtedness  or in any way affect or impair
the lien of the Mortgage, or the right of Lender to enforce any and all rights
and remedies under and by virtue of the Note, this Agreement, or any other Loan
Document (limited, however, as expressly provided otherwise above), including,
without limitation, naming Borrower as a party defendant in any foreclosure
action, or limit Lender from pursuing or seeking to enforce the rights of Lender
against any third parties, including any guarantor, indemnitor or surety under
any guaranty or indemnity delivered in connection with this Agreement, the Note,
or otherwise in connection with the Loan. Additionally, the provisions of this
Section shall not relieve Borrower from any personal liability for, and Borrower
shall be fully and personally liable for, any liabilities, costs, losses,
damages, expenses (including, without limitation, reasonable attorneys' fees and

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disbursements, and court costs, if any), or claims suffered or incurred by
Lender (or any Indemnified Party) by reason of or in connection with (i) any
fraud by Borrower or any Related Party, (ii) such misapplication by Borrower of
any insurance proceeds or condemnation awards, (iii) the failure of Borrower or
any Related Party to direct or pay Receipts received by Borrower or any Related
Party to the Clearing Account or the Cash Collateral Account, (iv) the
misapplication by Borrower or any Related Party (or at any such Person's
direction) of monies held in or paid out from any account (including any reserve
or escrow) maintained under this Agreement, the Cash Management Agreement or any
of the other Loan Documents, including without limitation, monies paid to
Borrower pursuant to Section 8 of the Cash Management Agreement and the related
"Disbursement Instructions" (as such term is defined in the cash Management
Agreement), (v) any and all tenant security deposits held by Borrower
intentionally misapplied by Borrower, returned to tenants when due or delivered
to Lender, any receiver or any person or entity purchasing the Properties at a
foreclosure sale upon the taking of possession of the Properties by Lender, such
receiver or other Person as provided herein, (vi) a breach by Borrower of any of
the covenants contained in Sections 5.1 or 5.7 of this Agreement, (vii) wrongful
removal or destruction of property constituting the Properties or any
intentional waste of the Properties by Borrower or a Related Party, (viii) any
Requirement mandating the forfeiture by Borrower of the Properties, or any
portion thereof, because of the conduct or purported conduct of criminal
activity by Borrower or a Related Party in connection therewith, (ix) any
material misrepresentation, miscertification or breach of warranty by Borrower
or any Guarantor with respect to any material representation, warranty or
certification contained in this Agreement, the Guaranty or any other Loan
Document or in any document executed in connection therewith, pursuant to any of
the Loan Documents or otherwise to induce Lender to make the Loan, or any
advance thereof, or to release monies from any account held by Lender (including
any reserve or escrow) or to take other action with respect to collateral for
the Loan, (x) a breach of any of the provisions of Article IX of this Agreement
(if and to the extent a substantive consolidation of Borrower and another person
or entity occurs as a result thereof), (xi) any damage or destruction of the
Properties or any part thereof due to fire or other casualty to the extent not
covered by insurance required hereby but only to the extent the same would have
been covered by insurance if Borrower had obtained and maintained the insurance
coverage required under this Agreement, (xii) the amount of any Lien voluntarily
placed on the Properties by Borrower (or any predecessor-owner of the Properties
which is an Affiliate of Borrower) which is prior to the Lien of the Mortgage
against an Individual Property; and (xiii) the reasonable cost of enforcement of
any of Lender's rights or remedies hereunder or under the Guaranty or any of the
other Loan Documents or costs incurred in any bankruptcy or similar proceeding
which may be brought, acquired in, or consented to, by Borrower or the SPE
Entity. Nothing contained herein is intended to limit the obligations and
personal liability of the guarantors under any guaranty (including the Guaranty)
and the indemnitors under any indemnity agreement, including, without
limitation, the Environmental Indemnification Agreement, executed by Borrower,
any Guarantor or any other Person for the benefit of Lender.

     SECTION 7.21 LIMITATION ON LIABILITY. In no event shall Lender be liable
to Borrower for consequential damages, whatever the nature of a breach by Lender
of its

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obligations under this Agreement or any of the other Loan Documents and
Borrower for itself and all Related Parties hereby waives all claims for
consequential damages.

          SECTION 7.22 JURISDICTION, VENUE, SERVICE OF PROCESS.  ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE
COURTS OF THE STATE OF NEW YORK, NEW YORK COUNTY OR OF THE UNITED STATES OF
AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK IN WHICH THE PROPERTIES IS
LOCATED.  BORROWER HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY,
GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID
COURTS.  BORROWER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF
THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF
COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO BORROWER AT
ITS ADDRESS FOR NOTICES PURSUANT TO SECTION 7.6 HEREOF.  BORROWER HEREBY
IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF
OR IN CONNECTION WITH THIS AGREEMENT, THE MORTGAGE, OR ANY OTHER LOAN DOCUMENT
BROUGHT IN THE COURTS REFERRED TO ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES
AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.  NOTHING CONTAINED HEREIN SHALL AFFECT THE RIGHT OF LENDER TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS
OR OTHERWISE PROCEED AGAINST BORROWER IN ANY OTHER JURISDICTION.

          SECTION 7.23   APPOINTMENT OF AGENT FOR SERVICE OF PROCESS.  Borrower
herby designates Douglas Donatelli ("DESIGNEE") as its agent and
attorney-in-fact to accept service of process in any action or proceeding
arising under or in connection with this Agreement, the Mortgage, and the other
Loan Documents.  The foregoing designation is irrevocable and coupled with an
interest.  If the Designee is not available, process may be served upon the
Designee by United States registered or certified mail, which service will be
effective five (5) days after mailing, to the address of the Designee set forth
below:

                            Donatelli & Klien, Inc.
                            7200 Wisconsin Avenue
                            Bethesda, Maryland 20814

          SECTION 7.24 RULE OF CONSTRUCTION.  This Agreement and the other Loan
Documents shall not be construed more strictly against one party than against
the other, merely by virtue of the fact that it may have been prepared by
counsel for one of the parties, it being recognized that both Lender and
Borrower have contributed substantially and materially to the preparation of
this Agreement and the other Loan Documents.

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         SECTION 7.25 FURTHER ASSURANCES.

         7.25.1 Borrower will, at its sole cost and expense, do, execute,
acknowledge and deliver or cause to be done, executed, acknowledged and
delivered all such further acts, conveyances, notes, mortgages, assignments,
security agreements, financing statements and assurances as Lender shall from
time to time reasonably require or deem advisable (v) to carry into effect the
purposes of this Agreement and the other Loan Documents, (w) for the better
assuring, conveying, mortgaging, assigning and confirming unto Lender of all
property and rights mortgaged, granted, bargained, alienated, confirmed,
pledged, hypothecated, conveyed or assigned by this Agreement, or any of the
other Loan Documents or property intended now or hereafter to be, or which
Borrower may be or may hereafter become bound to convey or assign to Lender, (x)
for facilitating the placement of a Loan Interest in a Loan Pool as described in
Section 7.26 below, (y) for the perfection of any such lien or security interest
granted herein or in the other Loan Documents and (z) for the better assuring
and confirming of all of Lender's rights, powers and remedies hereunder.
Borrower, on demand, will execute and deliver and hereby authorizes Lender to
execute in the name of Borrower or without the signature of Borrower to the
extent Lender may lawfully do so, one or more financing statements, chattel
mortgages or other instruments, to evidence more effectively the security
interest of Lender in the Properties and the other collateral under the Loan
Documents. Notwithstanding the foregoing, however, in no event shall any such
further acts, conveyances, notes, mortgages, assignments, security agreements,
financing statements and assurances decrease Borrower's rights hereunder or
increase Borrower's financial obligations and/or liabilities under any of the
Loan Documents.

         7.25.2 Borrower forthwith upon the execution and delivery of this
Agreement and thereafter, from time to time, will cause the Mortgage and any
security instrument creating a Lien or security interest or evidencing the lien
of the Mortgage and the other applicable Loan Documents upon the Properties or
other property and each instrument of further assurance to be filed, registered
or recorded in such manner and in such places as may be required by any present
or future Requirement in order to publish notice of and fully to protect the
lien or security interest of, and the priority of, each of the Mortgage and the
other Loan Documents upon, and the interest of Lender in, the Properties or
other applicable property. Borrower will pay all filing, registration or
recording fees, and all expenses incident to the foregoing and all taxes,
duties, assessments and charges of any Governmental Authority arising out of or
in connection with the execution and delivery of the Mortgage, any other
security instrument, any instrument of further assurance or any other Loan
Document. Upon Lender's request, Borrower shall, from time to time, furnish
Lender with evidence reasonably satisfactory to Lender that such property is
free of Liens and security interests (except as permitted hereunder), including
searches of applicable public records.

         7.25.3 Upon any failure by Borrower to do so after twenty (20) days
written notice, Lender may make, execute, record, file, re-record or refile any
and all such mortgages, instruments, certificates and documents for and in the
name of Borrower, and Borrower hereby irrevocably appoints (which appointment is
coupled with an interest and with full power of substitution) Lender the agent
and attorney-in-fact of Borrower to do so; and Borrower shall

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reimburse Lender, on demand, for all costs and expenses (including reasonable
attorneys' fees) incurred by Lender in connection therewith. Upon foreclosure,
the appointment of a receiver or any other relevant action, Borrower will, at
the cost of Borrower and without expense to Lender, cooperate fully and
completely to effect the assignment or transfer of any Permit, agreement or any
other right necessary or useful to the operation of the Properties and shall
deliver to Lender all books and records relating to the Properties.

         SECTION 7.26 PLACEMENT OF LOAN.

         7.26.1 Borrower acknowledges that Lender, any Assignee or any
Participant (each of Lender, such Assignee or Participant is called a "PLACEMENT
PARTY") may elect to place the Loan, or its participation interest, as the case
may be (whichever of the Loan or such participation is to be so placed is called
the "LOAN INTEREST") in a pool of loans, participation interests and/or notes
secured by or dependent on the cash flow of mortgage loans, which will
constitute security for a rated securities offering (such pool is called a "LOAN
POOL; such rated securities offering, a "SECURITIZATION"; and the securities
issued in connection therewith are called "SECURITIES").

         7.26.2 At the request of Lender, Borrower will use its best efforts to
cooperate with Lender in satisfying the market standards to which Lender
customarily adheres or which may be required in the marketplace or by the Rating
Agencies in order to enable a Placement Party to place a Loan Interest in a Loan
Pool, including, without limitation, to:

               (i)      structure and maintain its organizational, operational
       and financial affairs as special-purpose bankruptcy remote entities to
       enable its counsel to render a reasoned opinion customarily given in
       securitization transactions that upon a petition for bankruptcy under the
       bankruptcy code, none of its Affiliates as a debtor in possession nor its
       bankruptcy trustee or creditors are likely to result in court to order
       the substantive consolidation of the assets and liabilities of any such
       entities with those of the Borrower or the SPE Entity, which counsel
       shall be reasonably satisfactory to, and which opinions or memoranda
       shall be satisfactory to, Lender and the Rating Agencies;

               (ii)     provide such descriptive financial and other information
       with respect to the Properties, the Manager and the Borrower as may be
       reasonably requested by Lender or the Rating Agencies or annual rating
       reviews, for the Properties prepared by a firm of certified public
       accountants reasonably acceptable to Lender and the Rating Agencies
       (Lender acknowledges that the Approved Accountant is an accounting firm
       acceptable to Lender); provided, however, in no event shall Borrower have
       any obligation to be provide any information which was not required by
       Lender in connection with Initial Advance or any Subsequent Advance;

               (iii)    execute and deliver such agreements and instruments
       relating to the Note, the Loan Interest, the Properties and Borrower,
       including (A) agreements to indemnify the Rating Agencies, Lender and any
       servicer or trustee for any loss, claim,

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     damage, cost, expense or liability which results from the willful or
     negligent acts or omissions of Borrower providing information to Lender in
     connection with the placement of the Loan Interest in a Loan Pool, and (B)
     amendments of any of the Loan Documents that are necessary to effect the
     placement of the Loan Interest in a Loan Pool, as may be reasonably
     requested by, and in form and scope reasonably satisfactory to, Lender and
     the Rating Agencies; provided, however, that such amendments shall not
     without the consent of the Borrower increase any of the obligations of
     Borrower under the Note or any of the other Loan Documents or decrease any
     of rights of Borrower under any of the Loan Document;

          (iv) cooperate with the Lender in allowing to be performed such site
     inspections, appraisals, market studies, environmental reviews and reports
     (Phase I assessments and, where appropriate, Phase II), engineering reports
     and other due diligence investigations of the Properties customarily and
     reasonably requested by Lender or the Rating Agencies in connection with
     the placement of the Loan Interest in a Loan Pool and the rating of any
     securities issues in connection therewith, provided, however, such reports,
     inspections, appraisals, market studies, and reviews shall be prepared at
     the sole cost and expense of Lender;

          (v)   provide title insurance (including surveys) relating to the
     Properties as may be reasonably requested by Lender or the Rating Agencies;

          (vi)  cause counsel to render opinions as Lender's sole cost and
     expense as to "true sale" and bankruptcy remoteness and other matters
     customary in securitization transactions with respect to the Properties,
     the Loan Interest and the Loan Documents, which counsel shall be reasonably
     satisfactory to, and which opinion shall be satisfactory to, Lender and the
     Rating Agencies; provided, that Borrower shall not be responsible for
     providing a "true sale" opinion that relates solely to the sale by Lender
     of the Loan or a Loan Interest into a Loan Pool; and

          (vii) make the representations and warranties contained in the Loan
     Documents as of the date of the closing of the transfer of the Loan
     Interest and make such other representations with respect to the
     Properties, the Loan Interest and the Loan Documents as are customarily
     provided in securitization transactions and as may be reasonably requested
     by Lender or the Rating Agencies in connection with such closing, provided,
     however, such representations and warranties do not increase any of the
     obligations of Borrower under the Note or any of the Loan documents or
     decrease any of rights of Borrower under any of the Loan Document.

          7.26.3  At Lender's request, Borrower shall cooperate with Lender's
preparation of a private placement memorandum or registration statement and
amendments and supplements thereto (the "DISCLOSURE DOCUMENT") to privately
place or publicly distribute the Note or the Loan Interest or securities issued
in connection therewith in a manner that satisfies the requirements of the
Securities Act and applicable state Requirements. At the time of Lender's
preparation of such Disclosure Document, Borrower shall execute and deliver to

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Lender and any underwriter or placement agent an instrument (a "SECURITIZATION
INDEMNIFICATION") (in form and substance reasonably satisfactory to Lender) (i)
certifying as to the veracity of all written information that is supplied and
was incorporated in such Disclosure Document and (ii) indemnifying and holding
each of them and any Person who controls any of them within the meaning of
Section 15 of the Securities Act or Section 70 of the Exchange Act (each, an
"SECURITIZATION INDEMNIFIED PARTY") harmless against all costs, expenses and
damages incurred by any Securitization Indemnified Party as a result of any
untrue statement of a material fact made or supplied by Borrower as contained in
such Disclosure Document or the failure by Borrower (after receipt of a draft
of the Disclosure Statement) to specify for inclusion in the Disclosure
Document any material fact regarding Borrower (or any member or partner
thereof), the Properties or the Loan necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading, but only to the extent that such statement of material fact is made
in reliance upon and in conformity with written information Borrower furnished
for use therein or the omission of such a material fact is based upon
Borrower's failure to specify such material fact or upon Borrower's furnishing
inaccurate information that shows that such material fact is not material. If
Lender (or a placement agent or underwriter acting on behalf of Lender) shall
deliver a draft of the Disclosure Document to Borrower for its review, Borrower
shall provide Lender (or the placement agent or underwriter acting on behalf of
Lender) with its comments, if any, on such Disclosure Document as soon as
practicable, but in all events within fifteen (15) days after receipt thereof,
in the case of the first draft of such Disclosure Document, and within five (5)
Business Days after receipt of any subsequent draft of such Disclosure
Document. If in connection with such review, Borrower advises Lender of the
existence of a fact regarding Borrower (or any member or partner thereof), the
Properties or the Loan and advises Lender that it deems such fact material,
Lender shall include such fact in the Disclosure Document or shall waive the
rights of the Indemnified Parties with respect to such fact. Upon receipt of
the Securitization Indemnification, Lender shall execute and deliver to
Borrower an instrument (in form and substance reasonably satisfactory to
Borrower) indemnifying and holding Borrower harmless against all costs,
expenses and damages incurred by it as a result of the preparation or
distribution of, and any untrue statement of a material fact contained in, such
Disclosure Document or the failure to include therein any material fact in
order to make the statements made therein, in light of the circumstances under
which they were made, not misleading; provided, however, that such
indemnification shall not apply if any such costs, expenses or damages arise
out of or are based upon an untrue statement of a material fact or an omission
to state a material fact in such Disclosure Document made in reliance upon and
in conformity with written information furnished by the Borrower expressly for
use therein or (after receipt of a draft of the Disclosure Statement) the
omission of a material fact concerning Borrower (or any member or partner
thereof), the Properties, the Loan (other than the express terms of the Loan
Documents) necessary to make the statements in the Disclosure Statement not
misleading. Borrower shall notify Lender if it is necessary to amend or
supplement such Disclosure Document at any time in order that such Disclosure
Document does not contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements made therein, in
the light of the circumstances under which they were made, not misleading.
Lender shall prepare as soon as may be reasonably practicable an amendment or

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supplement to such Disclosure Document correcting such statement or omission.
At the request of Lender, in connection with any sale of the Note or any Loan
Interest, Borrower shall confirm, as of the date of such sale, that such
Disclosure Document, as it may be so amended or supplemented, does not contain
any untrue statement of a material fact concerning Borrower, the Properties or
the Loan or omit to state a material fact concerning Borrower, the Properties
or the Loan necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading.

     7.26.4 It is expressly understood hereunder that in connection with the
placement of any Loan Interest in a Loan Pool, Lender intends to transfer the
Loan Interest to a trustee which shall hold such Loan Interest for the benefit
of the holders of the interests in the Loan Pool. In connection therewith,
Borrower shall execute and deliver or cause to be executed and delivered at the
sole cost and expense of Lender, all such additional instruments, and do, or
cause to be done, all such additional acts as (i) may be necessary or proper to
carry out such transfer, including, without limitation, the delivery of such
instruments and documents, including assignments of mortgage (and similar
documents), assignments of Loan Documents, re-certifications of surveys with
respect to the Properties, and the delivery of such mortgagee's title insurance
endorsements in favor of the trustee as may be required to confirm and/or
evidence the transfer to the trustee of the title insurance issued to Lender
in respect of the Properties or, the Mortgage, including payment of all fees,
title insurance premiums and other insurance premiums or (ii) Lender may
reasonably request.

     7.26.5 Lender shall be permitted to share any information provided by
Borrower pursuant to this Section 7.26 in connection with the placement of a
Loan Interest in a Loan Pool with the investment banking firms, Rating Agencies,
accounting firms, law firms and other third-party advisory firms involved with
any transfer of the Loan, the Loan Document or the applicable Securitization.
It is understood that the information provided by Borrower to Lender may
ultimately be incorporated into the offering documents for the Securitization
and thus various investors may also see some or all of the information.

     7.26.6 Borrower acknowledges that any transfer of the Loan or the
placement of the Loan Interest in a Loan Pool may occur at any time during the
term of this Agreement and the provisions of this Section 7.26 shall be
applicable throughout the term of the Loan.

     SECTION 7.27 CROSS-DEFAULT, CROSS-COLLATERALIZATION; WAIVER OF MARSHALING
OF ASSETS.

     (a) The Borrower acknowledges that Lender has made the Loan to the
Borrower upon the security of its collective interest in the various Properties
and in reliance upon the aggregate of the Properties and the property or
interests subject to the Pledge Agreement taken together being of greater value
as collateral security than the sum of the Properties and the property or
interests subject to the Pledge Agreement taken separately. The Borrower agrees
that the Mortgages and the Mezzanine Loan Agreement are and will be
cross-collateralized and cross-defaulted with each other so that (i) an Event
of Default under any of the Mortgages shall constitute an Event of Default
under each of the other Mortgages and the

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Mezzanine Loan Agreement which secure the Note; (ii) an Event of Default under
the Note or this Loan Agreement shall constitute an Event of Default under each
Mortgage and the Mezzanine Loan Agreement; and (iii) each Mortgages and the
Mezzanine Loan Agreement shall constitute security for the Note as if a single
blanket lien were placed on all of the Properties as security for the Note.

         (b)  To the fullest extent permitted by law, Borrower, for itself and
its successors and assigns, waives all rights to a marshaling of the assets of
Borrower, Borrower's partners and others with interests in Borrower, and of the
Properties and the Property or interest subject to the Pledge Agreement, or to a
sale in inverse order of alienation in the event of foreclosure of all or any of
the Mortgages or the Mezzanine Loan Agreement, and agrees not to assert any
right under any laws pertaining to the marshaling of assets, the sale in inverse
order of alienation, homestead exemption, the administration of estates of
decedents, or any other matters whatsoever to defeat, reduce or affect the
right of Lender under the Loan Documents to a sale of the Properties and the
property or interests subject to the Pledge Agreement for the collection of the
Indebtedness without any prior or different resort for collection or of the
right of Lender to the payment of the Indebtedness out of the net proceeds of
the Properties and the property or interests subject to the Pledge Agreement in
preference to every other claimant whatsoever. In addition, Borrower, for itself
and its successors and assigns, waives (to the extent permitted by law) in the
event of foreclosure of any or all of the Mortgages or the Mezzanine Loan
Agreement, any equitable right otherwise available to the Borrower which would
require the separate sale of the Properties or require Lender to exhaust its
remedies against any Individual Property and the property or interests subject
to the Pledge Agreement or any combination of the Properties and the property or
interests subject to the Pledge Agreement before proceeding against any other
Individual Property and the property or interests subject to the Pledge
Agreement or combination of Properties; and further in the event of such
foreclosure the Borrower does hereby expressly consent to and authorize, at the
option of the Lender, the foreclosure and sale either separately or together of
any combination of the Properties and the property or interests subject to the
Pledge Agreement.

         VII SPECIAL PROVISIONS

         Section 8.1  DEPOSITS FOR TAX AND INSURANCE PREMIUMS.  In order to
assure the payment of Taxes and premiums with respect to all insurance coverage
required pursuant to Paragraph 7 of the Mortgage (collectively, "INSURANCE
PREMIUMS") as and when the same shall become due and payable, the following
provisions shall apply:

         8.1.1  On the applicable Closing Date, Borrower shall deposit with
Lender such amount reasonably determined by Lender to be held in an account
maintained at a bank designated by Lender and pledged to Lender as additional
collateral for the applicable Loan, all as more particularly described in the
Cash Management Agreement, and referred to therein as the "Tax and Insurance
Escrow Account" (the "TAX AND INSURANCE ESCROW ACCOUNT"). Thereafter, on each
Payment Date (commencing with the first Payment Date under the Note), the
Borrower shall pay to Lender, in immediately available funds for deposit into
the Tax and Insurance Escrow Account an amount equal to one-twelfth (1/12) of
the Taxes and Insurance

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Premiums to become due during the period commencing on the first day of the
first month following such Payment Date and ending twelve (12) months following
such first day. In all cases there must be paid hereunder to be deposited and
held in the Tax and Insurance Escrow Account, an amount sufficient to pay such
Taxes and Insurance Premiums, one month prior to the date when they are due and
payable. The amounts of such deposits with respect to Taxes and Insurance
Premiums (herein collectively called (the "TAX AND INSURANCE DEPOSITS") shall
be based upon Lender's reasonable estimate as to the amount of Taxes and
Insurance Premiums. Each Individual Borrower shall promptly, upon the demand of
Lender, make additional Tax and Insurance Deposits as Lender may from time to
time require due to (i) failure of such Individual Borrower to make Tax and
Insurance Deposits in previous months, (ii) underestimation of the amounts of
Taxes and/or Insurance Premiums, (iii) the particular due dates and amounts of
Taxes and/or Insurance Premiums, or (iv) application of the Tax and Insurance
Deposits pursuant to this Agreement. All Tax and Insurance Deposits shall be
held by Lender in the Tax and Insurance Escrow Account and invested and applied
as provided in the Cash Management Agreement.

     8.1.2 Provided no Event of Default has then occurred and is continuing,
Lender will, out of the funds in the Tax and Insurance Escrow Account (provided
such funds are sufficient for such purpose), upon the presentation to Lender by
Borrower of the bills therefor, pay the Taxes and Insurance Premiums or will,
upon the presentation of official receipted bills therefor, reimburse Borrower
for such payments made by Borrower. If the total Tax and Insurance Escrow
Account shall not be sufficient to pay all of the Taxes and Insurance Premiums
when the same shall become due, then Borrower shall pay to Lender on demand the
amount necessary to make up the deficiency. Lender shall be entitled, without
request of Borrower, but, prior to an Event of Default upon two (2) Business
Days notice to Borrower, to apply any funds in the Tax and Insurance Escrow
Account to the payment of any Taxes (other than any Taxes which Borrower has
notified Lender that it is contesting and such contest is then permitted under
the Mortgage) and Insurance Premiums which have become due and have not yet
been paid. Borrower and Lender acknowledge and agree that Borrower shall not be
in default under the Mortgage for failure to pay Taxes or Insurance Premiums,
if such failure arises by reason of Lender's failure to comply with its
agreement in this Section 8.1.2.

     8.1.3 Upon the occurrence and during the continuance of an Event of
Default, Lender may, at its option, without being required to do so, apply any
Tax and Insurance Deposits on hand to pay Taxes, Insurance Premiums or to pay
principal, interest and other amounts payable to Lender hereunder or under the
other Loan Documents, all in such order and manner as Lender, in its sole
discretion, may elect. When the principal and interest under the Note and all
prepayment premiums, if any, in connection therewith and all other Obligations
have been fully and properly paid, any remaining Tax and Insurance Deposits
shall be returned to Borrower.

     8.1.4 Lender shall be absolutely entitled to rely on any statements of any
Governmental Authority with respect to Taxes and any statement of Borrower's
insurance carrier or its agent with respect to Insurance Premiums.

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     8.1.5 Borrower and Lender acknowledge that Borrower shall not be in default
hereunder in its obligation to make the Tax and Insurance Deposit on any
Payment Date, to the extent funds are available to make such deposit from monies
deposited in the Cash Collection Account during the applicable Collection Period
after applying such funds to any item with a higher priority than such
application to the Tax and Insurance Escrow Account in accordance with the terms
of the Cash Management Agreement. Any transfer of funds from the Cash Collection
Account to the Tax and Insurance Escrow Account shall satisfy Borrower's
obligation hereunder to make the corresponding Tax and Insurance Deposit, to the
extent of the funds so transferred.

     8.1.6 No provision of this Agreement, the Mortgage or any other Loan
Document shall be construed as creating in any party other than Borrower and
Lender (and the Servicer), any rights in and to the Tax and Insurance Deposits
or any rights to have the Tax and Insurance Deposits applied to payment of Taxes
and Insurance Premiums. Lender shall have no obligation or duty to any third
party to collect Tax and Insurance Deposits.

     SECTION 8.2 REPLACEMENT RESERVE FUND. On the applicable Closing Date,
Borrower shall deposit with Lender the initial sum reasonably determined by
Lender to establish the Replacement Reserve Fund (as hereinafter defined) and,
thereafter, on each Payment Date, each Individual Borrower shall also deposit
with Lender one twelfth (1/12th) of the amount projected by Lender for the
current calendar year to be applied to replacements and repairs to the
applicable Individual Property during the calendar year. Amounts so deposited
shall hereinafter be referred to as the "REPLACEMENT RESERVE FUND". Lender will
maintain the Replacement Reserve Fund in a segregated account (the "REPLACEMENT
RESERVE ACCOUNT") and the Replacement Reserve Fund shall be invested and
reinvested by Lender, at Borrower's direction, in one or more Eligible
Investments, subject to the following restrictions: (A) such Eligible
Investments and the proceeds thereof shall be deemed a part of the Replacement
Reserve Fund; (B) each such Eligible Investment shall be made in the name of
Lender (in its capacity as such) or in the name of a nominee of Lender under its
complete and exclusive dominion and control or, if applicable law provides for
perfection of pledges of an instrument not evidenced by a certificate or other
instrument through registration of such pledge on books maintained by or on
behalf of the issuer of such investment, such pledge may be so registered; (C)
Lender shall have the sole control over such investment, the income thereon and
the proceeds thereof; (D) other than investments described in clause (B) above,
any certificate or other instrument evidencing such investment shall be
delivered directly to Lender or its agent; (E) the proceeds of each investment
shall be remitted by the purchaser thereof directly to Lender and (F) Lender
shall not be liable for any loss sustained on the investment of any funds
constituting a part of the Replacement Reserve Fund. Lender may reassess its
estimate of the amount necessary for the Replacement Reserve Fund from time to
time and may increase the amount required to be deposited into the Replacement
Reserve Fund by thirty (30) days notice to such Borrower if it determines in its
reasonable discretion that an increase is necessary.

     8.2.1. GRANT OF SECURITY INTEREST. Each Individual Borrower shall grant a
first priority security interest to Lender, as security for payment of all sums
due under the Loan and the performance of all other terms, conditions and
provisions to be paid and performed, of all

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Borrower's right, title and interest in and to the Replacement Reserve Fund and
the Replacement Reserve Account and shall execute and deliver to Lender such
UCC-1 Financing Statements and other documents or instruments as Lender may
request in order to grant and perfect such security interest. Borrower shall
not, without obtaining the prior written consent of Lender, further pledge,
assign or grant any security interest in the Replacement Reserve Fund or the
Replacement Reserve Account or permit any lien or encumbrance to attach thereto,
or any levy to be made thereon, or any UCC-1 Financing Statements, except those
naming Lender as the secured party, to be filed with respect thereto. Upon the
occurrence of an Event of Default, Lender may apply any sums then present in the
Replacement Reserve Fund to the payment of the Debt in any order in its sole
discretion. Until expended or applied as above provided, the Replacement Reserve
Fund shall constitute additional security for the Debt.

          8.2.2  DISBURSEMENTS FROM REPLACEMENT RESERVE ACCOUNT. (a) Lender
shall make disbursements from the Replacement Reserve Account to pay such
Borrower only for the costs to maintain and repair the Property as set forth
herein (collectively, the "REPLACEMENTS").

          (b)    Lender shall, upon written request for Borrower and
satisfaction of the requirements set forth in this Section 8.2.2 and Section
8.2.3 of this Agreement, disburse to the applicable Borrower amounts from the
Replacement Reserve Account to pay for the actual approved costs of Replacements
or to reimburse the such Borrower therefor in accordance with Exhibit V within
ten (10) days of Lender's receipt of a request for disbursement in accordance
with Section 8.2.2(c). In no event shall Lender be obligated to disburse funds
from the Replacement Reserve Account if an Event of Default exists.

          (c)    Each request for disbursement from the Replacement Reserve
Account shall be in a form specified or approved by Lender and shall certify as
to (i) the specific Replacements for which the disbursement is requested, (ii)
the quantity and price of each item purchased, if the Replacement includes the
purchase or replacement of specific items, (iii) the price of all materials
(grouped by type or category) used in any Replacement other than the purchase or
replacement of specific items, and (iv) the cost of all contracted labor or
other services applicable to each Replacement for which such request for
disbursement is made. With each request for disbursement, such Borrower shall
certify that all Replacements that were the subject of the prior request for
disbursement have been made in accordance with all applicable Legal Requirements
of any Governmental Authority having jurisdiction over the applicable Property
to which the Replacements are being provided. Each request for disbursement
shall include copies of invoices for all items or materials to be purchased and
all contracted labor or services to be provided in connection with the
Replacements for which the disbursement is requested. Each request for
disbursement shall include a statement setting forth each Person that supplied
materials or labor in connection with Replacements that were the subject of the
prior request for disbursement and setting forth the amount paid to each such
Person and shall include evidence satisfactory to Lender of payment of all such
amounts evidence of completion of the Replacements for which the prior request
for disbursement was made, which evidence shall be satisfactory to Lender in its
reasonable discretion, such

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Borrower shall deliver to Lender, as a part of the monthly reports to be
delivered pursuant to Section 5.1(j)(iv), an Officer's Certificate setting
forth the amounts paid during the preceding calendar month for Replacements
and setting forth each Person to whom such amounts were paid, the amount paid
to each such Person and the related Replacement provided by each such Person.

     (d) Each Borrower shall not make a request for disbursement from the
Replacement Reserve Account more frequently than once in any calendar month and
(except in connection with the final disbursement) the total cost of all
Replacements in any request shall be reasonably acceptable to Lender.

     8.2.3 PERFORMANCE OF REPLACEMENTS. (a) Each Borrower shall make
Replacements when required in order to keep the applicable Property in
condition and repair consistent with other properties in the same market
segment in the metropolitan area in which the respective Property is located,
and to keep each Property or any portion thereof from deteriorating. Borrower
shall complete all Replacements in a good and workmanlike manner as soon as
practicable following the commencement of making each such Replacement.

     (b) Lender reserves the right, at its option, to approve all material
contracts or work orders with materialmen, mechanics, suppliers,
subcontractors, contractors or other parties providing labor or materials in
connection with the Replacements. Upon Lender's request, Borrower shall assign
any contract or subcontract to Lender.

     (c) In the event Lender determines in its reasonable discretion that any
Replacement is not being performed in a workmanlike or timely manner or that any
Replacement has not been completed in a workmanlike or timely manner, Lender
shall have the option to withhold any further disbursements from the Replacement
Reserve Fund and, upon ten (10) days prior written notice, to proceed under
existing contracts or to contract with third parties to complete such
Replacement and to apply the Replacement Reserve Fund toward the labor and
materials necessary to complete such Replacement and, without providing any
prior notice to such Borrower, to exercise any and all other remedies available
to Lender upon an Event of Default hereunder.

     (d) In order to facilitate Lender's completion or making of the
Replacements pursuant to Section 8.2.3(c) above, Borrower grants Lender the
right to enter onto any the applicable Property and perform any and all work
and labor necessary to complete or make the Replacements and/or employ watchmen
to protect such Property from damage. All sums so expended by Lender shall be
deemed to have been advanced under the Loan to such Borrower and secured by the
applicable Mortgage. For this purpose each Borrower constitutes and appoints
Lender its true and lawful attorney-in-fact with full power of substitution to
complete or undertake the Replacements in the name of such Borrower. Such power
of attorney shall be deemed to be a power coupled with an interest and cannot
be revoked. Borrower empowers said attorney-in-fact as follows: (i) to use any
funds in the Replacement Reserve Account for the purpose of making or
completing the Replacements; (ii) to make such additions, changes and
corrections to the Replacements as shall be necessary or desirable to complete
the

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Replacements; (iii) to employe such contractors, subcontractors, agents,
architects and inspectors as shall be required for such purposes; (iv) to pay,
settle or compromise all existing bills and claims which are or may become Liens
against any Property, or as may be necessary or desirable for the completion of
the Replacements, or for clearance of title; (v) to execute all applications and
certificates in the name of such Borrower which may be required by any of the
contract documents; (vi) to prosecute and defend all actions or proceedings in
connection with any Property or the rehabilitation and repair of any Property;
and (vii) to do any and every act which such Borrower might do in its own behalf
to fulfill the terms of this Agreement.

     (e) Nothing in this Section 8.2.3 shall: (i) make Lender responsible for
making or completing the Replacements; (ii) require Lender to expend funds in
addition to the Replacement Reserve Fund to make or complete any Replacement;
(iii) obligate Lender to proceed with the Replacements; or (iv) obligate Lender
to demand from such Borrower additional sums to make or complete any
Replacement.

     (f) Upon reasonable prior notice by Lender, Borrower shall permit Lender
and Lender's agents and representatives (including, without limitation, Lender's
engineer, architect, or inspector) or third parties making Replacements pursuant
to this Section 8.2.3 to enter onto each Property during normal business hours
(subject to the rights of tenants under their Leases) to inspect the progress of
any Replacements and all materials being used in connection therewith and to
examine all plans and shop drawings relating to such Replacements which are or
may be kept at each Property. Each Borrower shall cause all contractors and
subcontractors to cooperate with Lender or Lender's representatives or such
other persons described above in connection with inspections described in this
Section 8.2.3(f) or the completion of Replacements pursuant to this Section
8.2.3.

     (g) If Lender has determined in its reasonable discretion that any
Replacements are not being completed in a timely and workmanlike manner or in
the event that the amount disbursed for the completion of a single Replacement
pursuant to a prior disbursement from the Replacement Reserve Account exceeded
One Hundred Thousand and No/100 Dollars ($100,000.00), Lender may require an
inspection of the applicable Property at Borrower's and/or Sponsor's, as the
case may be, expense prior to making a monthly disbursement from the Replacement
Reserve Account in order to verify completion of such Replacements. Lender may
require that such inspection be conducted by an appropriate independent
qualified professional selected by Lender and/or may require a copy of a
certificate of completion by an independent qualified professional acceptable to
Lender prior to the disbursement of any amounts from the Replacement Reserve
Account. Each Borrower shall pay the expense of the inspection as required
hereunder, whether such inspection is conducted by Lender or by an independent
qualified professional.

     (h) The Replacements and all materials, equipment, fixtures, or any other
item comprising a part of any Replacement shall be constructed, installed or
completed, as applicable, free and clear of all mechanic's, materialman's or
other liens.

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     (j)  All Replacements shall comply with all applicable Legal Requirements
of all Governmental Authorities having jurisdiction over the applicable Property
and applicable insurance requirements including, without limitation, applicable
building codes, special use permits, environmental regulations, and
requirements of insurance underwriters.

     (k)  In addition to any insurance required under the Loan Documents,
Borrower shall provide or cause to be provided workmen's compensation
insurance, builder's risk, and public liability insurance and other insurance
to the extent required under applicable law in connection with a particular
Replacement. All such policies shall be in form and amount reasonably
satisfactory to Lender. All such policies which can be endorsed with standard
mortgagee clauses making loss payable to Lender or its assigns shall be so
endorsed. Certified copies of such policies shall be delivered to Lender.

     8.2.4 FAILURE TO MAKE REPLACEMENTS AND MAKE INITIAL DEPOSIT. (a) It shall
be an Event of Default under this Agreement if (i) any Borrower fails to make
the initial deposit in accordance with Section 8.2 or (ii) fails to comply with
any other provision of this Section 8.2 and such failure is not cured within
thirty (30) days after notice from Lender. Upon the occurrence of an Event of
Default, Lender may use the Replacement Reserve Fund (or any portion thereof)
for any purpose, including but not limited to completion of the Replacements as
provided in Section 8.2.3, or for any other repair or replacement to any
Property or toward payment of the Debt in such order, proportion and priority
as Lender may determine in its sole discretion. Lender's right to withdraw and
apply the Replacement Reserve Funds shall be in addition to all other rights
and remedies provided to Lender under this Agreement and the other Loan
Documents.

     (b)  Nothing in this Agreement shall obligate Lender to apply all or any
portion of the Replacement Reserve Fund on account of an Event of Default to
payment of the Debt or in any specific order or priority.

     8.2.5 BALANCE IN THE REPLACEMENT RESERVE ACCOUNT. The insufficiency of any
balance in the Replacement Reserve Account shall not relieve Borrower from its
obligation to fulfill all preservation and maintenance covenants in the Loan
Documents.

     8.2.6 INDEMNIFICATION. Borrower shall indemnify Lender and hold Lender
harmless from and against any and all actions, suits, claims, demands,
liabilities, losses, damages, obligations and costs and expenses (including
litigation costs and reasonable attorneys fees and expenses) arising from or in
any way connected with the performance of the Replacements. Each Borrower shall
assign to Lender all rights and claims such Borrower may have against all
persons or entities supplying labor or materials in connection with the
Replacements; provided, however, that Lender may not pursue any such right or
claim unless an Event of Default has occurred and remains uncured.

     SECTION 8.3 EQUITY RESERVE ACCOUNT. (a) Notwithstanding any other
provision of the Loan Agreement to the contrary, in the event that on an
applicable Closing Date Borrower is otherwise entitled to request an advance in
an amount equal to 90% of the

                                       93

<PAGE>
LTV Ratio but instead requests an advance for an amount less than 90% of the
LTV Ratio, Borrower shall be permitted to request that the difference (such
amount is hereafter referred to as the "Equity Reserve Amount") between the
amount actually advanced to Borrower and the amount which Borrower otherwise
would be entitled to request be advanced (which amount shall in no event exceed
90% of the LTV Ratio), be advanced by Lender and deposited in a special account
under the Cash Management Agreement.  Provided that no Event of Default be
continuing the proceeds held in the Equity Reserve Account will thereafter be
released to Borrower from time to time upon the written consent of Lender in
connection with the Purchase Price of Additional Properties to be acquired by
an Additional Borrower.

          (b)  Upon the occurrence and during the continuance of an Event of
Default, Lender may, at its option, without being required to do so, apply any
amounts in the Equity Reserve Account to pay principal, interest and other
amounts payable to Lender hereunder or under the other Loan Documents, all in
such order and manner as Lender, in its sole discretion, may elect.  When the
principal and interest under the Note and all prepayment premiums, if any, in
connection therewith and all other Obligations have been fully and properly
paid, any remaining amount in the Equity Reserve Account shall be returned to
Borrower.

          (c)  No provision of this Agreement, the Mortgage or any other Loan
Document shall be construed as creating in any party other than Borrower and
Lender (and the Servicer), any rights in and to the amount in the Equity
Reserve Account.  Lender shall have no obligation or duty to any third party
with respect to the Equity Reserve Account.

          8.4. REQUIRED REPAIRS FUND.  Contemporaneously with the closing of the
Subsequent Advance for each Additional Property, Borrower shall deposit with
Lender an amount equal to of the cost of the Required Repairs for such
Additional Properties (such funds, interest earned thereon and all other funds
from time to time deposited with Lender pursuant to this Section are
hereinafter collectively referred to as the "REQUIRED REPAIRS FUND"), which
amounts shall be held in the Required Repairs Subaccount.

          8.4.1. PERFORMANCE OF IMPROVEMENTS. (a) Borrower shall construct,
erect, undertake and complete all of the work set forth on Exhibit W hereto
(the "REQUIRED REPAIRS") or, with respect to any Additional Property, such work
as may be specified in the Engineering Reports delivered to Lender in
connection with the initial Subsequent Advance for such Additional Property
within one hundred eighty (180) days of the date hereof or the date of such
Subsequent Advance; provided however, in the event that Borrower is unable to
accomplish same due to events beyond Borrower's control, including, but not
limited to the unavailability of access due to the rights of tenants in
occupancy, such period shall be extended for a period equal to the period that
such event prevented compliance herewith by Borrower.

          (b)  Borrower shall pay for and obtain or cause to be paid for and
obtained all permits, licenses and approvals required by all applicable laws
with regard to the Required Repairs, whether necessary for commencement,
completion, use or otherwise.

                                       94
<PAGE>
     (c) Borrower shall perform or cause to be performed all work in connection
with the Required Repairs in a good and workmanlike manner, in compliance with
all applicable laws, ordinances, rules and regulations of federal, state,
county or municipal government or agencies now in force or that may be enacted
hereafter and without regard to the sufficiency of the Required Repairs Fund.

     (d) Borrower covenants and agrees that the Required Repairs shall be
constructed, installed or completed, as applicable, free and clear of any and
all liens (including mechanic's, materialman's or other liens), claims and
encumbrances whatsoever, subject to Borrower's right to contest as specified in
this Agreement or the Mortgage.

     (e) Each contractor or subcontractor performing the Required Repairs shall
be licensed by the appropriate state agency and bonded. Upon Lender's request,
Borrower shall provide written evidence that each contractor and subcontractor
meets the requirements of this paragraph.

     (f) Borrower agrees to pay and discharge all claims for labor done and
material and services furnished in connection with the Required Repairs and to
diligently file or procure the filing of a valid notice of completion upon
completion of the Required Repairs (if required by applicable governmental
agencies); provided that Lender makes any Advances for Capital Improvements
with respect to the applicable Individual Property that Lender is required to
make hereunder.

     (g) If a notice or claim of lien or the like concerning the Property
alleging non-payment for Required Repairs performed should be filed, recorded,
or served upon Borrower or Lender by a contractor or subcontractor, Lender shall
have the right to retain in the Required Repairs Fund, in lieu of any payment
to Borrower then or thereafter due, an amount sufficient to completely satisfy
said potential lien.

     (h) Nothing herein contained shall require Borrower to pay any claims for
labor, substances, or services that Borrower in good faith disputes and that
Borrower, at Borrower's own expense, is currently and diligently contesting in
accordance with the provisions of this Agreement or the Mortgage. Additionally,
if Borrower, in good faith disputes the need for any Required Repairs set forth
in an Engineering Report delivered to Lender pursuant to SECTION 8.4.1(a),
Borrower may procure its own Engineering Report intending to show why such
Required Repairs are not necessary and Lender shall reasonably assess such
Engineering Report when determining the need for, and scope of, the Required
Repairs.

     8.4.2. DISBURSEMENTS FROM THE REQUIRED REPAIRS SUBACCOUNT. The following
conditions shall apply to any disbursement from the Required Repairs Subaccount:

     (a) In connection with any advance to Borrower for Capital Expenditures on
any Property for items that are Required Repairs, Lender, will upon Borrower's
request (a "REPAIRS DISBURSEMENT REQUEST") disburse any amounts on deposit in
the Required Repairs Fund with respect to such Required Repairs;

                                       95
<PAGE>
          (b)  Borrower shall provide evidence satisfactory to Lender
(including, without limitation, access to the applicable Individual Property to
Lender and an architect and/or engineer specified by Lender for the purpose of
an inspection of work done, at Borrower's expense, if requested by Lender) that
the Required Repairs for which the Required Repairs Funds are being requested
have been completed in full in a good and workmanlike manner and in accordance
with all applicable laws. Should Lender, in the exercise of its reasonable
business judgment, disapprove of the quality or progress of the Required
Repairs, Lender shall advise Borrower of such disapproval and shall provide
Borrower with thirty (30) calendar days to cure such disapproval. Should
Borrower be unable to cure any disapproval, Lender shall have the right, upon
written notice to Borrower, to terminate the Required Repairs or to finish the
Required Repairs itself or with a third party of Lender's choice, at which time
all contractors and subcontractors performing the disapproved Required Repairs
shall withdraw from the Property. In all events, Lender shall be entitled to
withdraw all or any portion of the Required Repairs Fund to cover the expenses
of completing the Required Repairs;

          (c)  Borrower shall submit to Lender copies of invoices for which
Required Repairs Funds are being requested under the Repairs Disbursement
Request, including, if required by Lender and customarily obtained in the
location where the Required Repairs shall have been constructed, waivers of
lien;

          (d)  Borrower shall provide Lender with such additional documents,
certificates and affidavits as Lender may reasonably request;

          (e)  Lender shall not be obligated to release any Required Repairs
Funds for the payment of the cost of an improvement or other item other than a
Required Repair as set forth on Exhibit W hereto or for costs of Required
Repairs in excess of the costs specified therefor on Exhibit W;

          (f)  After full completion of all of the Required Repairs in
accordance with the terms of this Agreement and the payment of all costs in
connection therewith, Lender shall release any remaining Required Repairs Funds
to Borrower, unless otherwise specified in Exhibit W; and

          (g)  Lender shall not be obligated to honor any Repairs Disbursement
Request or release any of the Required Repairs Fund to Borrower unless, in
addition to the conditions set forth above, an Event of Default shall not then
exist under this Agreement or any of the other Loan Documents, and no act, event
or condition shall have occurred and then be existing that, with the giving of
notice or the passage of time, or both, would constitute an Event of Default
under any of the Loan Documents.

          SECTION 8.5  RIGHT OF FIRST REFUSAL TO PROVIDE PERMANENT FINANCING.

          (a)  Offer.  In the event that any Individual Borrower obtains a bona
fide commitment from a third party to provide Permanent Financing to be secured
by all or any portion of an Individual property, or such third party provides a
term sheet to such Individual

                                       96

<PAGE>
Borrower containing all of the material terms of such Permanent Financing, or
such Individual Borrower otherwise desires to close any such Permanent Financing
(any of the foregoing being hereinafter referred to as the "OFFER"), then, such
Individual Borrower shall deliver to Lender written notice of Individual
Borrower's intent to close such Permanent Financing, together with a copy of the
commitment, term sheet or any other documents and instruments to be executed in
connection with such Permanent Financing.

         (b)  Notice from Lender.  Lender shall have fifteen (15) days from the
date of receipt of all of the information required to be delivered to Lender
under Section 8.2 above (the "OFFER PERIOD"), to notify such Individual Borrower
in writing of Lender's interest in providing the Permanent Financing on the
substantially the same terms and conditions as are set forth in the Offer
including terms concerning fees and expenses provided that the rate of interest
in the financing to be provided by Lender may be up to twenty-five basis points
(.25%) higher than that set forth in Offer. If Lender gives notice to such
Individual Borrower during the Offer Period that Lender does not desire to
provide the Permanent Financing, or if Lender fails to respond within the Offer
Period, such Individual Borrower shall have sixty (60) days from the date of
receipt by such Individual Borrower of such notice from Lender or the expiration
of the Offer Period if Lender fails to respond, as the case may be (the
"APPROVAL PERIOD"), to close the Permanent Financing on the same terms as
contained in the Offer. It is specifically understood and agreed that any such
Permanent Financing may be made only upon the payment in full of the Loan,
including, without limitation, the Exit Fee.

         (c)  Closing.  If Lender notifies such Individual Borrower in writing
during the Offer Period that Lender is interested in providing the Permanent
Financing, Lender and such Individual Borrower shall have thirty (30) days (or
such longer period of time as is necessary under the circumstances if Individual
Borrower is acting in good-faith) from the date of such Individual Borrower's
receipt of such written notice from Lender to agree upon the terms and
conditions of and close such transaction and the documentation thereof, which
shall be in all material respects the same as the terms and conditions of the
Offer, to the extent the same are specified in the Offer, except that any loan
documents to be executed in connection with such Permanent Financing shall be
substantially identical in all material respects to the Loan Documents, except
to the extent inconsistent with the terms of the Offer. Upon the closing of any
such Permanent Financing between such Individual Borrower and Lender, and the
prepayment of the Loan as a result thereof, the Exit Fee applicable to the
Allocated Loan Amount for the Individual Property which is the subject of the
Permanent Financing shall be applied to the origination fee due to Lender in
connection with the Permanent Financing.

         (d)  Failure to Close.  If such Individual Borrower fails to close the
Permanent Financing with the third party lender prior to the expiration of the
Approval Period, such Individual Borrower shall be required to make a new offer
to Lender in accordance with the provisions of this Section 8.4 before such
Borrower accepts any Permanent Financing from any other party.

         (e)  Compliance with Offer.  Any Permanent Financing must be
consummated substantially in accordance with the terms and provisions of the
documents

                                       97

<PAGE>
provided to Lender evidencing the Offer, or terms and provisions which are more
favorable to such Individual Borrower than such terms and provisions provided
to Lender, and in compliance with the requirements of this Section 8.4. In the
event that the terms are modified by such third party prior to such closing,
Individual Borrower shall re-submit such revised terms to Lender for
consideration under Section 8.4(c).

     IX SINGLE PURPOSE ENTITY/SEPARATENESS

     SECTION 9.1 REPRESENTATIONS, WARRANTIES AND COVENANTS. Each Individual
Borrower represents, warrants and covenants as of the date hereof and until
such time as the Loan and all other amounts payable under any of the Loan
Documents are paid in full, that:

     (a) neither such Individual Borrower nor its applicable SPE Entity will
dissolve or liquidate (or suffer any liquidation or dissolution) or amend the
terms of their respective Organizational Documents;

     (b) neither such Individual Borrower nor its applicable SPE Entity are
contemplating either the filing of a petition by such Individual Borrower or
SPE Entity under any state or federal bankruptcy or insolvency laws or the
liquidation of all or a major portion of such Individual Borrower's or SPE
Entity's assets or property, and such Individual Borrower has no knowledge of
any Person contemplating the filing of any such petition against it;

     (c) neither such Individual Borrower nor its applicable SPE Entity will
enter into any transaction of merger or consolidation, or acquire by purchase
or otherwise all or substantially all the business or assets of, or any stock
or other evidence of beneficial ownership of, any entity except Individual
Properties, which are subject to the lien of a Mortgage;

     (d) except with respect to a Person which is a SPE Entity, in the ordinary
course of such person acting as such SPE Entity, neither such Individual
Borrower nor SPE Entity has, and neither such Person will, guarantee or
otherwise hold out its credit as being available to satisfy obligations of any
other Person;

     (e) such Individual Borrower was organized for the sole purpose of owning,
managing and operating its Individual Property and activities ancillary thereto
and its applicable SPE Entity was organized for the sole purpose of acting as
the SPE Entity of such Individual Borrower and acquiring Additional Properties
subject to the lien of a Mortgage;

     (f) such Individual Borrower has not and will not engage in any business
unrelated to the ownership, management and operation of the Properties and
activities ancillary thereto and will conduct and operate its business as
presently conducted and operated. Its applicable SPE Entity has not and will not
engage in any business unrelated to acting as SPE Entity of such Individual
Borrower;

                                       98
<PAGE>
     (g)  neither such Individual Borrower nor its applicable SPE Entity will
enter into any contract or agreement with any member, partner, principal or
Affiliate of Individual Borrower or SPE Entity, except upon terms and
conditions that are intrinsically fair and substantially similar to those that
would be available on an arms-length basis with unrelated third parties;

     (h)  in addition to any limitations with respect thereto contained in
Section 5.3 hereof, such Individual Borrower and SPE Entity have not incurred
and will not incur any indebtedness or material liabilities, secured or
unsecured, direct or contingent (including guaranteeing any obligation), other
than (i) the Loan and the other obligations of such Individual Borrower to
Lender contained in the Loan Documents, and (ii) trade payables or accrued
expenses incurred in the ordinary course of business of operating the Properties
not in excess of sixty (60) days past due; no indebtedness or liabilities (other
than debt described in clause (i) above) may be secured (senior, subordinate or
pari passu) by the Properties;

     (i)  such Individual Borrower and SPE Entity have not made and will not
make any loans or advances to any third party (including any Affiliate of such
Individual Borrower) and will not pledge its assets for the benefits of any
third party (including any Affiliate of such Individual Borrower);

     (j)  each of such Individual Borrower and SPE Entity is and will be solvent
and pay its debts and liabilities (including employment and overhead expenses)
from its own assets as the same shall become due;

     (k)  each of such Individual Borrower and SPE Entity will maintain its
own separate books and records and bank accounts in each case which are
separate and apart from those of any other Person;

     (l)  each of such Individual Borrower and SPE Entity will be, and at all
times will hold itself out to the public as, a legal entity separate and
distinct from any other entity (including any Affiliate thereof) and shall
maintain and utilize separate stationery, invoices and checks, shall otherwise
conduct its business and own its assets in its own name and shall correct any
known misunderstanding regarding its separate identity;

     (m)  each of such Individual Borrower and SPE Entity has and will maintain
separate financial statements and will file its own tax returns;

     (n)  each of such Individual Borrower and SPE Entity will 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;

     (o)  neither such Individual Borrower nor SPE Entity will seek the
dissolution or winding up, in whole or in part, of Individual Borrower or the
SPE Entity;

     (p)  neither such Individual Borrower nor SPE Entity will commingle its
funds and other assets with those of any Affiliate or other Person;

                                       99
<PAGE>
         (q)  each of such Individual Borrower and SPE Entity has and will
maintain its assets in such a manner that it is not costly or difficult to
segregate, ascertain or identify its individual assets from those of any
Affiliate or any other Person;

         (r)  each of such Individual Borrower and SPE Entity has and will
maintain a reasonable number of employees in light of its contemplated business
operations and will not do any act which would make it impossible to carry on
the ordinary business of Individual Borrower;

         (s)  neither such Individual Borrower nor SPE Entity will file or
consent to the filing of a petition for bankruptcy, reorganization, assignment
for the benefit of creditors or similar proceeding under any Federal or state
bankruptcy, insolvency, reorganization or other similar law with respect to such
Individual Borrower or the SPE Entity, if such Individual Borrower shall be a
limited liability company, without the unanimous consent of its members (and to
the extent its SPE Entity is a corporation, both of the Independent Directors of
such corporation), if such Individual Borrower shall be a partnership, the
unanimous consent of its limited partners and SPE Entities (and, to the extent
any SPE Entity is a corporation, the consent of both of the Independent
Directors of such SPE Entity), or if such Individual Borrower shall be a
corporation, the unanimous consent of its directors, including both of its
Independent Directors, as the case may be;

         (t)  the sole assets of such Individual Borrower are, and for the term
of the Loan shall be (i) the fee or leasehold interest in the Properties, (ii)
such assets as are otherwise acquired in connection with the use, operation,
maintenance, repair or management of the Properties, (iii) cash and accounts
receivable and (iv) shares of FPR-GP Holdings, Inc. and the interests in FPR
Holdings Limited Partnership.

         (u)  each of such Individual Borrower and SPE Entity has and will
observe all partnership formalities, limited liability company formalities or
corporate formalities, as applicable;

         (v)  such Individual Borrower and SPE Entity have not and will not
acquire the obligations or securities of any of their partners, members or
shareholders, as applicable;

         (w)  such Individual Borrower and SPE Entity shall each allocate fairly
and reasonably any overhead for any office space which such entity shares with
any other entity; SPE Entity will at all times comply, with each of the
representations, warranties, and covenants contained in this Article IX;

         (x)  such Individual Borrower will have, at all times, one Independent
Director (if a corporation), or, if a limited liability company or limited
partnership, all SPE Entities or all SPE Entities, as applicable, will have at
all times one Independent Director, except if such SPE Entity is itself a
limited partnership or a limited liability company, then only the SPE Entity of
such entity, as applicable, is required to have at all times one Independent
Director; and

                                      100
<PAGE>
     (y)  In connection with any securitization or similar transaction to be
undertaken by Lender (or any assignee or participant) with respect to the Loan,
if Lender (or any such assignee or participant) shall request that the
Independent Director of the SPE Entity be replaced, such Individual Borrower
will cause such replacement with an Independent Director acceptable to Lender
and the Rating Agencies within ten (10) days following request.

                                      101
<PAGE>
     IN WITNESS WHEREOF, the parties have executed under seal this Agreement as
of the day and year first above written.

                                        LENDER

                                        CREDIT SUISSE FIRST BOSTON MORTGAGE
                                          CAPITAL LLC., a Delaware limited
                                          liability company

                                        By: [ILLEGIBLE]
                                            ------------------------------------
                                            Name:
                                            Title:

                                        BORROWER

                                        FPR REALTY LIMITED PARTNERSHIP,
                                          a Delaware limited partnership

                                        By: FPR-GP REALTY, Inc.,
                                            a Delaware corporation, its
                                            general partner

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                      101
<PAGE>
     IN WITNESS WHEREOF, the parties have executed under seal this Agreement as
of the day and year first above written.

                                        LENDER

                                        CREDIT SUISSE FIRST BOSTON MORTGAGE
                                          CAPITAL LLC., a Delaware limited
                                          liability company

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        BORROWER

                                        FPR REALTY LIMITED PARTNERSHIP,
                                          a Delaware limited partnership

                                        By: FPR-GP REALTY, Inc.,
                                            a Delaware corporation, its
                                            general partner

                                        By: [ILLEGIBLE]
                                            ------------------------------------
                                            Name:
                                            Title:

                                      102<PAGE>
                                                                    EXHIBIT 10.3

                        FPR HOLDINGS LIMITED PARTNERSHIP
                                    (Trustor)

                                       to

                              Richard W. Klein, Jr.
                                    (Trustee)

                                       and

                 CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC
                                  (Beneficiary)

                       DEED OF TRUST, ASSIGNMENT OF LEASES
                        AND RENTS AND SECURITY AGREEMENT

                         Dated: As of December 23, 1997

                               PROPERTY LOCATION:

                              6600 Business Parkway
                               Elkridge, Maryland

               DOCUMENT PREPARED BY AND WHEN RECORDED, RETURN TO:
                          CADWALADER, WICKERSHAM & TAFT
                                 100 MAIDEN LANE
                            NEW YORK, NEW YORK 10038
                      ATTENTION: LAWRENCE A. CERIELLO, ESQ.

/s/ C. INGRAM                                                            (STAMP)
---------------------

<PAGE>

                                TABLE OF CONTENTS

<Table>
<S>                                                                                      <C>
GRANTING CLAUSE ONE ...............................................................       1
GRANTING CLAUSE TWO ...............................................................       2
GRANTING CLAUSE THREE .............................................................       2
GRANTING CLAUSE FOUR ..............................................................       2
GRANTING CLAUSE FIVE ..............................................................       3
GRANTING CLAUSE SIX ...............................................................       3
GRANTING CLAUSE SEVEN .............................................................       3
GRANTING CLAUSE EIGHT .............................................................       3
PART I ............................................................................       4
   1. Payment of Debt and Incorporation of Covenants, Conditions and Agreements ...       4
   2. Warranty of Title ...........................................................       4
   3. Insurance ...................................................................       4
   4. Casualty ....................................................................       7
   5. Payment of Taxes, Etc .......................................................       8
   6. Tax and Insurance Impound Fund; Replacement Escrow Fund .....................       9
   7. Condemnation ................................................................      11
   8. Leases and Rents ............................................................      13
   9. Maintenance and Use of Trust Property .......................................      15
   10. Transfer or Encumbrance of the Trust Property ..............................      15
   11. Representations and Covenants Concerning Loan ..............................      17
   12. Single Purpose Entity/Separateness .........................................      25
   13. Estoppel Certificates and No Default Affidavits ............................      27
   14. Controlling Agreement ......................................................      27
   15. Changes in Laws Regarding Taxation .........................................      28
   16. No Credits on Account of the Debt ..........................................      28
   17. Documentary Stamps .........................................................      29
   18. Books and Records ..........................................................      29
   19. Performance of Other Agreements ............................................      31
   20. Further Acts, Etc. .........................................................      31
   21. Recording of Deed of Trust, Etc. ...........................................      31
   22. Reporting Requirements .....................................................      32
   23. Events of Default ..........................................................      32
   24. Late Payment Charge ........................................................      33
   25. Right To Cure Defaults .....................................................      34
   26. Additional Remedies ........................................................      34
   27. Right of Entry .............................................................      37
   28. Security Agreement .........................................................      38
   29. Actions and Proceedings ....................................................      39
   30. Waiver of Setoff and Counterclaim ..........................................      39
   31. Contest of Certain Claims ..................................................      39
   32. Recovery of Sums Required to be Paid .......................................      40
   33. Marshalling and Other Matters ..............................................      40
</Table>

<PAGE>

<Table>
<S>                                                                                  <C>
   34. Hazardous Substances .......................................................      40
   35  Asbestos....................................................................      41
   36. Environmental Monitoring....................................................      42
   37. Handicapped Access .........................................................      43
   38. Indemnification ............................................................      43
   39. Notices ....................................................................      44
   40. Authority ..................................................................      44
   41. Waiver of Notice ...........................................................      45
   42. Remedies of Trustor ........................................................      45
   43. Sole Discretion of Beneficiary .............................................      45
   44. Non-Waiver .................................................................      45
   45. No Oral Change .............................................................      46
   46. Liability ..................................................................      46
   47. Inapplicable Provisions ....................................................      46
   48. Headings, Etc. .............................................................      46
   49. Duplicate Originals ........................................................      46
   50. Definitions ................................................................      46
   51. Homestead ..................................................................      47
   52. Assignments ................................................................      47
   53. Waiver of Jury Trial .......................................................      47
   54. Trustee's Fees; Substitute Trustee .........................................      47
   55. Power of Sale ..............................................................      48
   56. Recourse Provisions ........................................................      49
   57. Defeasance .................................................................      51
   58. Cash Management Agreement ..................................................      53
   59. Miscellaneous ..............................................................      54
   60. Management of the Trust Property ...........................................      56
   61. Sale of Notes and Securitization ...........................................      56
   62. Servicer ...................................................................      57
PART II ...........................................................................      58
   63. Principles of Construction .................................................      58
   64. Maryland ...................................................................      58
   65. Cross-Default; Cross-Collateralization; Waiver of Marshaling of Assets .....      60
STATE SPECIFIC PROVISIONS .........................................................      61
LEGAL DESCRIPTION .................................................................       1
</Table>

<PAGE>

         THIS DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS AND SECURITY
AGREEMENT (the "DEED OF TRUST"), made as of December 23, 1997, by FPR HOLDINGS
LIMITED PARTNERSHIP, a Delaware limited Partnership, having its principal place
of business at c/o Donatelli & Klein, Inc., 7200 Wisconsin Avenue, Suite 310,
Bethesda, MD 20814 ("TRUSTOR"), to Richard W. Klein, Jr., the trustee hereunder,
having an address at 1150 18th Street, N.W., Suite 575, Washington, D.C. 20036
("TRUSTEE"), for the benefit of CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC,
a Delaware limited liability company ("BENEFICIARY"), having its principal
office at 11 Madison Avenue, New York, New York 10010.

                                   WITNESSETH:

         To secure the payment of an indebtedness in the original principal sum
of Six Million Two Hundred Thirty-One Thousand Eight Hundred Seventy-Five and
no/100 Dollars ($6,231,875), lawful money of the United States of America, to be
paid with interest according to a certain deed of trust note of even date
herewith made by Trustor to Beneficiary (the deed of trust note together with
all extensions, renewals or modifications thereof being hereinafter collectively
called the "NOTE", and the loan evidenced by the Note hereinafter being referred
to as the "LOAN") and all other sums due hereunder, under the other Loan
Documents (hereinafter defined) and under the Note (said indebtedness and
interest due under the Note and all other sums due hereunder under the Note and
the other Loan Documents being hereinafter collectively referred to as the
"DEBT"), Trustor has deeded, mortgaged, given, granted, bargained, sold,
alienated, enfeoffed, conveyed, confirmed, warranted, pledged, assigned, and
hypothecated and by these presents does hereby deed, mortgage, give, grant,
bargain, sell, alien, enfeoff, convey, confirm, warrant, pledge, assign and
hypothecate unto Trustee (in trust), the real property described in Exhibit A
attached hereto (the "PREMISES") and the buildings, structures, fixtures,
additions, enlargements, extensions, modifications, repairs, replacements and
improvements now or hereafter located thereon (the IMPROVEMENTS");

         TOGETHER WITH: all right, title, interest and estate of Trustor now
owned, or hereafter acquired, in and to the following property, rights,
interests and estates (the Premises, the Improvements and such property, rights,
interests and estates hereinafter described are collectively referred to herein
as the "TRUST PROPERTY"):

                               GRANTING CLAUSE ONE

         All easements, rights-of-way, strips and gores of land, streets, ways,
alleys, passages, sewer rights, water, water courses, water rights and powers,
air rights and development rights, all rights to oil, gas, minerals, coal and
other substances of any kind or character, and all estates, rights, titles,
interests, privileges, liberties, tenements, hereditaments and appurtenances of
any nature whatsoever, in any way belonging, relating or pertaining to the
Premises and the Improvements and the reversion and reversions, remainder and
remainders, and all land lying in the bed of any street, road, highway, alley or
avenue.

<PAGE>

opened, vacated or proposed, in front of or adjoining the Premises, to the
center line thereof and all the estates, rights, titles, interests, dower and
rights of dower, curtsey and rights of curtsey, property possessions claim and
demand whatsoever, both at law and in equity, of Trustor of, in and to the
Premises and the Improvements and every part and parcel thereof, with the
appurtenances thereto;

                               GRANTING CLAUSE TWO

All machinery, furniture, furnishings, equipment, computer software and
hardware, fixtures (including, without limitation, all heating, air
conditioning, plumbing, lighting, communications and elevator fixtures) and
other property of every kind and nature, whether tangible or intangible,
whatsoever owned by Trustor, or in which Trustor has or shall have an interest,
now or hereafter located upon the Premises and the Improvements, or appurtenant
thereto, and usable in connection with the present or future operation and
occupancy of the Premises and the Improvements and all building equipment,
materials and supplies of any nature whatsoever owned by Trustor, or in which
Trustor has or shall have an interest, now or hereafter located upon the
Premises and the Improvements, or appurtenant thereto, or usable in connection
with the present or future operation, enjoyment and occupancy of the Premises
and the Improvements (hereinafter collectively referred to as the "EQUIPMENT"),
including any leases of any of the foregoing, any deposits existing at any time
in connection with any of the foregoing, and the proceeds of any sale or
transfer of the foregoing, and the right, title and interest of Trustor in and
to any of the Equipment that may be subject to any "security interests" as
defined in the UNIFORM COMMERCIAL CODE, as adopted and enacted by the State or
States where any of the Trust Property is located (the "UNIFORM COMMERCIAL
CODE"), superior in lien to the lien of this Deed of Trust;

                              GRANTING CLAUSE THREE

         Awards or payments, including interest thereon, that may heretofore and
hereafter be made with respect to the Premises and the Improvements, whether
from the exercise of the right of eminent domain or condemnation (including,
without limitation, any transfer made in lieu of or in anticipation of the
exercise of said rights), or for a change of grade, or for any other injury to
or decrease in the value of the Premises and Improvements;

                              GRANTING CLAUSE FOUR

         All leases and other agreements or arrangements heretofore or hereafter
entered into affecting the use, enjoyment or occupancy of, or the conduct of any
activity upon or in, the Premises and the Improvements, including any
extensions, renewals, modifications or amendments thereof (the "LEASES") and all
rents, rent equivalents, moneys payable as damages or in lieu of rent or rent
equivalents, royalties (including, without limitation, all oil and gas or other
mineral royalties and bonuses), income, receivables, receipts, revenues,
deposits (including, without limitation, security, utility and other deposits),
accounts, cash, issues, profits, charges for services rendered, and other
consideration of whatever form or nature received by or paid to or for the
account of or benefit of Trustor or its agents or employees

                                      -2-
<PAGE>

from any and all sources arising from or attributable to the Premises and the
Improvements (the "RENTS"), together with all proceeds from the sale or other
disposition of the Leases and the right to receive and apply the Rents to the
payment of the Debt;

                              GRANTING CLAUSE FIVE

         All proceeds of and any unearned premiums on any insurance policies
covering the Trust Property, including, without limitation, the right to receive
and apply the proceeds of any insurance, judgments, or settlements made in lieu
thereof, for damage to the Trust Property;

                               GRANTING CLAUSE SIX

         The right, in the name and on behalf of Trustor, to appear in and
defend any action or proceeding brought with respect to the Trust Property and
to commence any action or proceeding to protect the interest of Beneficiary in
the Trust Property;

                              GRANTING CLAUSE SEVEN

         All accounts, escrows, documents, instruments, chattel paper, claims,
deposits and general intangibles, as the foregoing terms are defined in the
Uniform Commercial Code, and all franchises, trade names, trademarks, symbols,
service marks, books, records, plans, specifications, designs, drawings,
permits, consents, licenses, management agreements, contract rights (including,
without limitation, any contract with any architect or engineer or with any
other provider of goods or services for or in connection with any construction,
repair, or other work upon the Trust Property), approvals, actions, refunds of
real estate taxes and assessments (and any other governmental impositions
related to the Trust Property), and causes of action that now or hereafter
relate to, are derived from or are used in connection with the Trust Property,
or the use, operation, maintenance, occupancy or enjoyment thereof or the
conduct of any business or activities thereon (hereinafter collectively referred
to as the "INTANGIBLES"); and

                              GRANTING CLAUSE EIGHT

         All proceeds, products, offspring, rents and profits from any of the
foregoing, including, without limitation, those from sale, exchange, transfer,
collection, loss, damage, disposition, substitution or replacement of any of the
foregoing.

         TO HAVE AND TO HOLD the above granted and described Trust Property unto
and to the use and benefit of Trustee and its successors and assigns, for the
benefit of Beneficiary, forever;

         IN TRUST, WITH POWER OF SALE, to secure the payment to Beneficiary of
the Debt at the time and in the manner provided for its payment in the Note and
in this Deed of Trust;

                                      -3-
<PAGE>

         PROVIDED, HOWEVER, these presents are upon the express condition that,
if Trustor shall well and truly pay to Beneficiary the Debt at the time and in
the manner provided in the Note and this Deed of Trust and shall well and truly
abide by and comply with each and every covenant and condition set forth herein,
in the Note and in the other Loan Documents (hereinafter defined) in a timely
manner, these presents and the estate hereby granted shall cease, terminate and
be void;

         AND Trustor represents and warrants to and covenants and agrees with
Beneficiary and Trustee as follows:

                                     PART I

                               GENERAL PROVISIONS

         1. PAYMENT OF DEBT AND INCORPORATION OF COVENANTS, CONDITIONS AND
AGREEMENT. Trustor shall pay the Debt at the time and in the manner provided in
the Note and in this Deed of Trust. All the covenants, conditions and agreements
contained in (a) the Note and (b) all and any of the documents including the
Note and this Deed of Trust now or hereafter executed by Trustor and/or others
and by or in favor of Beneficiary, which evidences, secures or guarantees all or
any portion of the payments due under the Note or otherwise is executed and/or
delivered in connection with the Note and this Deed of Trust (the "LOAN
DOCUMENTS") are hereby made a part of this Deed of Trust to the same extent and
with the same force as if fully set forth herein.

         2. WARRANTY OF TITLE. Trustor warrants that Trustor has good,
marketable and insurable title to the Trust Property and has the full power,
authority and right to execute, deliver and perform its obligations under this
Deed of Trust and to deed, encumber, mortgage, give, grant, bargain, sell,
alienate, enfeoff, convey, confirm, pledge, assign and hypothecate the same and
that Trustor possesses an unencumbered fee estate in the Premises and the
Improvements and that it owns the Trust Property free and clear of all liens,
encumbrances and charges whatsoever except for those exceptions shown in the
title insurance policy insuring the lien of this Deed of Trust (the "PERMITTED
EXCEPTIONS") and that this Deed of Trust is and will remain a valid and
enforceable first lien on and security interest in the Trust Property, subject
only to said exceptions. Trustor shall forever warrant, defend and preserve such
title and the validity and priority of the lien of this Deed of Trust and shall
forever warrant and defend the same to Beneficiary against the claims of all
persons whomsoever.

         3. INSURANCE.

                  (a) Trustor, at its sole cost and expense, for the mutual
benefit of Trustor and Beneficiary, shall obtain and maintain during the entire
term of this Deed of Trust (the "TERM") policies of insurance against loss or
damage by fire, lightning and such other perils as are included in a standard
"all-risk" endorsement, and against loss or damage by all other risks and
hazards covered by a standard extended coverage insurance policy including,
without limitation, riot and civil commotion, vandalism, malicious mischief,
burglary and

                                       -4-
<PAGE>

theft. Such insurance shall be in an amount equal to the greatest of (i) the
then full replacement cost of the Improvements and Equipment, without deduction
for physical depreciation, (ii) the outstanding principal balance of the Loan,
and (iii) such amount that the insurer would not deem Trustor a co-insurer under
said policies. The policies of insurance carried in accordance with this
paragraph shall be paid annually in advance and shall contain a "REPLACEMENT
COST ENDORSEMENT" with a waiver of depreciation, and shall have a deductible no
greater than $25,000.00 unless so agreed by Beneficiary.

                  (b) Trustor, at its sole cost and expense, for the mutual
benefit of Trustor and Beneficiary, shall also obtain and maintain during the
Term the following policies of insurance:

                      (i) Flood insurance if any part of the Trust Property is
located in an area identified by the Federal Emergency Management Agency as an
area having special flood hazards and in which flood insurance has been made
available under the National Flood Insurance Program in an amount at least equal
to the outstanding principal amount of the Loan or the maximum limit of coverage
available with respect to the Improvements and Equipment under said Program,
whichever is less.

                      (ii) Comprehensive public liability insurance, including
broad form property damage, blanket contractual and personal injuries (including
death resulting therefrom) coverages and containing minimum limits per
occurrence of $2,000,000 and $5,000,000 in the aggregate for any policy year. In
addition, at least $5,000,000 excess and/or umbrella liability insurance shall
be obtained and maintained for any and all claims, including all legal liability
imposed upon Trustor and all court costs and attorneys' fee incurred in
connection with the ownership, operation and maintenance of the Trust Property.

                      (iii) Rental loss and/or business interruption insurance
in an amount equal to the greater of (A) estimated gross revenues for twelve
(12) months from the operations of the Trust Property or (B) the projected
operating expenses (including debt service) for twelve (12) months for the
maintenance and operation of the Trust Property. The amount of such insurance
shall be increased from time to time during the Term as and when new Leases and
renewal Leases are entered into and the Rents increase or the estimate of (or
the actual) gross revenue, as may be applicable, increases

                      (iv) Insurance against loss or damage from (A) leakage of
sprinkler systems and (B) explosion of steam boilers, air conditioning
equipment, high pressure piping, machinery and equipment, pressure vessels or
similar apparatus now or hereafter installed in the Improvements (without
exclusion for explosions), to the extent that such items now or hereafter exist
upon the Trust Property, in an amount at least equal to the outstanding
principal amount of the Note or $2,000,000, whichever is less.

                      (v) If the Trust Property includes commercial property,
worker's compensation insurance with respect to any employees of Trustor, as
required by any governmental authority or legal requirement.

                                       -5-

<PAGE>

                      (vi) During any period of repair or restoration, builder's
"all risk" insurance in an amount equal to not less than the full insurable
value of the Trust Property insuring against such risks (including, without
limitation, fire and extended coverage and collapse of the Improvements to
agreed limits) as Beneficiary may request, in form and substance acceptable to
Beneficiary.

                      (vii) Ordinance or law coverage to compensate for the cost
of demolition and the increased cost of construction.

                      (viii) Such other insurance as may from time to time be
reasonably required by Beneficiary in order to protect its interests.

                  (c) All policies of insurance (the "POLICIES") required
pursuant to this paragraph: (i) shall be issued by companies approved by
Beneficiary and licensed to do business in the state where the Trust Property is
located, with a claims paying ability rating of "AA" or better by Standard &
Poor's Rating Services, a division of the McGraw Hill Companies, Inc.; (ii)
shall name Beneficiary and its successors and/or assigns as their interest may
appear as the beneficiary/mortgagee; (iii) shall contain a non-contributory
standard mortgagee clause and a lender's loss payable endorsement or their
equivalents, naming Beneficiary as the person to which all payments made by such
insurance company shall be paid; (iv) shall contain a waiver of subrogation
against Beneficiary; (v) shall be maintained throughout the Term without cost to
Beneficiary; (vi) shall be assigned and the originals delivered to Beneficiary;
(vii) shall contain such provisions as Beneficiary deems reasonably necessary or
desirable to protect its interest including, without limitation, endorsements
providing that neither Trustor, Beneficiary nor any other party shall be a
co-insurer under said Policies and that Beneficiary shall receive at least
thirty (30) days prior written notice of any modification, reduction or
cancellation; and (viii) shall be satisfactory in form and substance to
Beneficiary and shall be approved by Beneficiary as to amounts, form, risk
coverage, deductibles, loss payees and insureds. Trustor shall pay the premiums
for such Policies (the "INSURANCE PREMIUMS") as the same become due and payable
and shall furnish to Beneficiary evidence of the renewal of each of the Policies
with receipts for the payment of the Insurance Premiums or other evidence of
such payment reasonably satisfactory to Beneficiary (provided, however, that
Trustor is not required to furnish such evidence of payment to Beneficiary in
the event that such Insurance Premiums have been paid by Beneficiary pursuant to
Paragraph 5 hereof). If Trustor does not furnish such evidence and receipts at
least thirty (30) days prior to the expiration of any expiring Policy, then
Beneficiary may procure, but shall not be obligated to procure, such insurance
and pay the Insurance Premiums therefor, and Trustor agrees to reimburse
Beneficiary for the cost of such Insurance Premiums promptly on demand. Within
thirty (30) days after request by Beneficiary, Trustor shall obtain such
increases in the amounts of coverage required hereunder as may be reasonably
requested by Beneficiary, taking into consideration changes in the value of
money over time, changes in liability laws, changes in prudent customs and
practices.

                                      -6-
<PAGE>

         4. CASUALTY.

                  (a) If the Trust Property shall be damaged or destroyed, in
whole or in part, by fire or other casualty (an "INSURED CASUALTY"), Trustor
shall give prompt notice, thereof to Beneficiary. Following the occurrence of an
Insured Casualty, Trustor, regardless of whether insurance proceeds are
available, shall promptly proceed to restore, repair, replace or rebuild the
same to be of at least equal value and of substantially the same character as
prior to such damage or destruction, all to be effected in accordance with
applicable law. The expenses incurred by Beneficiary in the adjustment and
collection of insurance proceeds shall become part of the Debt and be secured
hereby and shall be reimbursed by Trustor to Beneficiary upon demand.

                  (b) In case of loss or damages covered by any of the Policies,
the following provisions shall apply:

                      (i) In the event of an Insured Casualty that does not
exceed the lesser of (a) $250,000.00 or (b) ten percent (10%) of the then
outstanding principal balance of the Note, Trustor may settle and adjust any
claim without the consent of Beneficiary and agree with the insurance company or
companies on the amount to be paid upon the loss; provided that such adjustment
is carried out in a competent and timely manner. In such case, Trustor is hereby
authorized to collect and receipt for any such insurance proceeds.

                      (ii) In the event an Insured Casualty shall exceed the
lesser of (a) $250,000.00 or (b) ten percent (10%) of the then outstanding
principal balance of the Note, then and in that event, Beneficiary may settle
and adjust any claim without the consent of Trustor and agree with the insurance
company or companies on the amount to be paid on the loss and the proceeds of
any such policy shall be due and payable solely to Beneficiary and held in
escrow by Beneficiary in accordance with the terms of this Deed of Trust.

                      (iii) In the event of an Insured Casualty where the loss
is in an aggregate amount less than twenty-five percent (25%) of the original
principal balance of the Note, and if, in the reasonable judgment of
Beneficiary, the Trust Property can be restored within six (6) months and prior
to the Anticipated Repayment Date (as defined in the Note) to an economic unit
not materially less valuable (including an assessment of the impact of the
termination of any Leases due to such Insured Casualty) and not less useful than
the same was prior to the Insured Casualty, and after such restoration will
adequately secure the outstanding balance of the Debt, then, if no Event of
Default (as hereinafter defined) shall have occurred and be then continuing, the
proceeds of insurance (after reimbursement of any expenses incurred by
Beneficiary) shall be applied to reimburse Trustor for the cost of restoring,
repairing, replacing or rebuilding the Trust Property or part thereof subject to
the Insured Casualty, in the manner set forth below. Trustor hereby covenants
and agrees to commence and diligently to prosecute such restoring, repairing,
replacing or rebuilding; provided always, that Trustor shall pay all costs (and
if required by Beneficiary, Trustor shall deposit the total thereof with
Beneficiary in advance) of such restoring, repairing, replacing or rebuilding in
excess of the net proceeds of insurance made available pursuant to the terms
hereof.

                                       -7-

<PAGE>

                      (iv) Except as provided above, the proceeds of insurance
collected upon any Insured Casualty shall, at the option of Beneficiary in its
sole discretion, be applied to the payment of Debt or applied to reimburse
Trustor for the cost of restoring, repairing, replacing or rebuilding the Trust
Property or part thereof subject to the Insured Casualty, in the manner set
forth below. Any such application to the Debt shall be without any prepayment
consideration except that if an Event of Default, or an event with notice and/or
the passage of time would constitute an Event of Default, has occurred, then the
Trustor shall pay to Beneficiary an additional amount equal to the Yield
Maintenance Premium (hereinafter defined), if any, that would be required under
Paragraph 57 hereof if Defeasance Collateral (hereinafter defined) was to be
purchased by Trustor. Any such application to the Debt shall be applied to those
payments of principal and interest last due under the Note but shall not
postpone or reduce any payments otherwise required pursuant to the Note other
than such last due payments.

                      (v) In the event Trustor is entitled to reimbursement out
of insurance proceeds held by Beneficiary, such proceeds shall be disbursed from
time to time upon Beneficiary being furnished with (1) evidence satisfactory to
it of the estimated cost of completion of the restoration, repair, replacement
and rebuilding, (2) funds or, at Beneficiary's option, assurances satisfactory
to Beneficiary that such funds are available, sufficient in addition to the
proceeds of insurance to complete the proposed restoration, repair, replacement
and rebuilding, and (3) such architect's certificates, waivers of lien,
contractor's sworn statements, title insurance endorsements, bonds, plats of
survey and such other reasonable evidences of cost payment and performance as
Beneficiary may reasonably require and approve. Beneficiary may, in any event,
require that all plans and specifications for such restoration, repair,
replacement and rebuilding be submitted to and approved by Beneficiary prior to
commencement of work. No payment made prior to the final completion of the
restoration, repair, replacement and rebuilding shall exceed ninety percent
(90%) of the value of the work performed from time to time; funds other than
proceeds of insurance shall be disbursed prior to disbursement of such proceeds;
and at all times, the undisbursed balance of such proceeds remaining in the
hands of Beneficiary, together with funds deposited for that purpose or
irrevocably committed to the satisfaction of Beneficiary by or on behalf of
Trustor for that purpose, shall be at least sufficient in the reasonable
judgment of Beneficiary to pay for the cost of completion of the restoration,
repair, replacement or rebuilding, free and clear of all liens or claims for
lien. Any surplus which may remain out of insurance proceeds held by Beneficiary
after payment of such costs of restoration, repair, replacement or rebuilding
shall be paid to any party entitled thereto.

                   5. PAYMENT OF TAXES, ETC. Trustor shall pay all taxes,
assessments, water rates and sewer rents, now or hereafter levied or assessed or
imposed against the Trust Property or any part thereof (the "TAXES") and all
ground rents, maintenance charges, other impositions and other charges,
including, without limitation, vault charges and license fees for the use of
vaults, chutes and similar areas adjoining the Premises, now or hereafter levied
or assessed or imposed against the Trust Property or any part thereof (the
"OTHER CHARGES") as the same become due and payable. Trustor will deliver to
Beneficiary receipts for payment or other evidence satisfactory to Beneficiary
that the Taxes and Other Charges have been so

                                       -8-

<PAGE>

paid or are not then delinquent no later than thirty (30) days prior to the date
on which the Taxes and/or Other Charges would otherwise be delinquent if not
paid. Trustor shall not suffer and shall promptly cause to be paid and
discharged any lien or charge whatsoever which may be or become a lien or charge
against the Trust Property, and shall promptly pay for all utility services
provided to the Trust Property. Trustor shall furnish to Beneficiary receipts
for the payment of the Taxes and the Other Charges prior to the date the same
shall become delinquent (provided, however, that Trustor is not required to
furnish such receipts for payment of Taxes in the event that such Taxes have
been paid for by Beneficiary pursuant to Paragraph 6 hereof).

         6. TAX AND INSURANCE IMPOUND FUND; REPLACEMENT ESCROW FUND; LEASING
ESCROW FUND.

(a) Trustor shall pay to Beneficiary on the eleventh day of each calendar month
(a) one-twelfth of the Taxes that Beneficiary estimates will be payable during
the next ensuing twelve (12) months in order to accumulate with Beneficiary
sufficient funds to pay all such Taxes at least thirty (30) days prior to their
respective due dates, and (b) one-twelfth of the Insurance Premiums that
Beneficiary estimates will be payable for the renewal of the coverage afforded
by the Policies upon the expiration thereof in order to accumulate with
Beneficiary sufficient funds to pay all such Insurance Premiums at least thirty
(30) days prior to the expiration of the Policies (said amounts in (a) and (b)
above hereinafter called the "TAX AND INSURANCE IMPOUND FUND"). The Tax and
Insurance Impound Fund and the payments of interest or principal or both,
payable pursuant to the Note, shall be added together and shall be paid as an
aggregate sum by Trustor to Beneficiary. Beneficiary will apply the Tax and
Insurance Impound Fund to payments of Taxes and Insurance Premiums required to
be made by Trustor pursuant to Paragraphs 4 and 5 hereof. In making any payment
relating to the Tax and Insurance Impound Fund, Beneficiary may do so according
to any bill, statement or estimate procured from the appropriate public office
(with respect to Taxes) or insurer or agent (with respect to Insurance
Premiums), without inquiry into the accuracy of such bill, statement or estimate
or into the validity of any tax, assessment, sale, forfeiture, tax lien or title
or claim thereof. If the amount of the Tax and Insurance Impound Fund shall
exceed the amounts due for Taxes and Insurance Premiums pursuant to Paragraphs 4
and 5 hereof, Beneficiary shall, in its sole discretion, return any excess to
Trustor or credit such excess against future payments to be made to the Tax and
Insurance Impound Fund. In allocating such excess, Beneficiary may deal with the
person shown on the records of Beneficiary to be the owner of the Trust
Property. If at any time Beneficiary determines that the Tax and Insurance
Impound Fund is not or will not be sufficient to pay the items set forth in
(a) and (b) above, Beneficiary shall notify Trustor of such determination and
Trustor shall increase its monthly payments to Beneficiary by the amount that
Beneficiary estimates is sufficient to make up the deficiency at least thirty
(30) days prior to delinquency of the Taxes and/or expiration of the Policies,
as the case may be. Until expended or applied as above provided, any amounts in
the Tax and Insurance Impound Fund shall constitute additional security for the
Debt. The Tax and Insurance impound Fund shall not constitute a trust fund and
may be commingled with other monies held by Beneficiary. No earnings or interest
on the Tax and Insurance Impound Fund shall be payable to Trustor. If
Beneficiary so elects at any time, Trustor shall provide, at

                                       -9-

<PAGE>

Trustor's expense, a tax service contract for the Term issued by a tax reporting
agency acceptable to Beneficiary. If Beneficiary does not so elect, Trustor
shall reimburse Beneficiary for the cost of making annual tax searches
throughout the Term.

         (b) Trustor shall pay to Beneficiary on the eleventh day of each
calendar month the sum of Two Thousand One Hundred Fifty-Two and 50/100 Dollars
($2,152.50) which shall be deposited with and held by Beneficiary for
replacement and repairs required to be made to the Trust Property during the
calendar year and for any other work approved by Beneficiary ("REPLACEMENT
ESCROW FUND"). Beneficiary may in its reasonable discretion reassess its
estimate of the amount necessary for the Replacement Escrow Fund from time to
time and in its discretion, and may adjust the monthly amounts required to be
deposited into the Replacement Escrow Fund by thirty (30) days notice to
Trustor. Beneficiary shall make disbursements from the Replacement Escrow Fund
as requested by Trustor, and approved by Beneficiary in its sole discretion, no
more frequently than once in any thirty (30) day period of no less than
$5,000.00 upon delivery by Trustor of Beneficiary's standard form of draw
request accompanied by copies of paid invoices for the amounts requested and, if
required by Beneficiary for requests in excess of $10,000.00, lien waivers and
releases from all parties furnishing materials and/or services in connection
with the requested payment. Beneficiary may require an inspection of the Trust
Property at Trustor's expense prior to making a monthly disbursement in order to
verify completion of replacements and repairs of items in excess of $10,000.00
for which reimbursement is sought. The Replacement Escrow Fund shall be held in
an interest bearing account in Beneficiary's name at a financial institution
selected by Beneficiary in its sole discretion. All earnings or interest on the
Replacement Escrow Fund shall be and become part of such Replacement Escrow Fund
and shall be disbursed as provided in this Paragraph 6(b). Until expended or
applied as above provided, the Replacement Escrow Fund shall constitute
additional security for the Debt. The Replacement Escrow Fund shall not
constitute a trust fund and may be commingled with other monies held by
Beneficiary.

         (c) Trustor shall pay to Beneficiary on the eleventh day of each
calendar month one-twelfth of $3,588.00, which shall be deposited with and held
by Beneficiary for tenant improvement and leasing commission obligations
incurred following the date hereof (the "LEASING ESCROW FUND"). In addition,
Trustor shall pay to Beneficiary for deposit in the Leasing Escrow Fund all
funds received by Trustor from tenants in connection with the cancellation of
any Leases, including, but not limited to, any cancellation fees, penalties,
tenant improvements, leasing commissions or other charges. Trustor hereby
pledges to Beneficiary any and all monies now or hereafter deposited in the
Leasing Escrow Fund as additional security for the payment of the Debt.
Beneficiary may reassess its estimate of the monthly amount necessary to be
deposited into the Leasing Escrow Fund and, upon notice to Trustor, Trustor
shall be required to deposit into the Leasing Escrow Fund each month such
reassessed amount. Beneficiary shall make disbursements from the Leasing Escrow
Fund for expenses reasonably incurred by Trustor for new Leases entered into by
Trustor in accordance with the provisions of Paragraph 8 below. All such
expenses shall be approved by Beneficiary in its sole discretion. Beneficiary
shall make disbursements as requested by Trustor on a quarterly basis in
increments of no less than $5,000.00 upon delivery by Trustor of

                                      -10-

<PAGE>

Beneficiary's standard form of draw request accompanied by copies of paid
invoices for the amounts requested for tenant improvements and leasing
commissions, the newly executed Lease, extension, renewal, or modification, with
terms commensurate with the expired Lease, and, if required by Beneficiary, lien
waivers and releases from all parties furnishing materials and/or services in
connection with the requested payment. Beneficiary may require an inspection of
the Trust Property at Trustor's expense prior to making a quarterly disbursement
in order to verify completion of improvements for which reimbursement is sought.
The Leasing Escrow Fund shall be held in an interest bearing account in
Beneficiary's name at a financial institution selected by Beneficiary in its
sole discretion. All earnings or interest on the Leasing Escrow Fund shall be
and become part of such Leasing Escrow Fund and shall be disbursed as provided
in this Paragraph 6(b). Until expended or applied as above provided, the Leasing
Escrow Fund shall constitute additional security for the Debt. The Leasing
Escrow Fund shall not constitute a trust fund and may be commingled with other
monies held by Beneficiary.

         (d) Trustor hereby pledges to Beneficiary and grants to Beneficiary a
security interest in any and all monies now or hereafter deposited in the Tax
and Insurance Impound Fund, the Replacement Escrow Fund and the Leasing Escrow
Fund as additional security for the payment of the Debt. Upon the occurrence of
an Event of Default, Beneficiary may apply any sums then present in the Tax and
Insurance Impound Fund, the Replacement Escrow Fund and/or the Leasing Escrow
Fund to the payment of the Debt in any order in its sole discretion.

         7. CONDEMNATION. Trustor shall promptly give Beneficiary written notice
of the actual or threatened commencement of any condemnation or eminent domain
proceeding (a "CONDEMNATION") and shall deliver to Beneficiary copies of any and
all papers served in connection with such Condemnation. Following the occurrence
of a Condemnation, Trustor, regardless of whether an Award (hereinafter defined)
is available, shall promptly proceed to restore, repair, replace or rebuild the
same to the extent practicable to be of at least equal value and of
substantially the same character as prior to such Condemnation, all to be
effected in accordance with applicable law.

            (a) Beneficiary is hereby irrevocably appointed as Trustor's
attorney-in-fact, coupled with an interest, with exclusive power to collect,
receive and retain any award or payment ("AWARD') for any taking accomplished
through a Condemnation (a "TAKING") and to make any compromise or settlement in
connection with such Condemnation, subject to the provisions of this Deed of
Trust. Notwithstanding any Taking by any public or quasi-public authority
(including, without limitation, any transfer made in lieu of or in anticipation
of such a Taking), Trustor shall continue to pay the Debt at the time and in the
manner provided for in the Note, in this Deed of Trust and the other Loan
Documents and the Debt shall not be reduced unless and until any Award shall
have been actually received and applied by Beneficiary to expenses of collecting
the Award and to discharge of the Debt. Beneficiary shall not be limited to the
interest paid on the Award by the condemning authority but shall be entitled to
receive out of the Award interest at the rate or rates provided in the Note.
Trustor shall cause any Award that is payable to Trustor to be paid directly to
Beneficiary.

                                      -11-

<PAGE>

            (b) In the event of any Condemnation where the Award is in an
aggregate amount less than the lesser of (i) $250,000.00 or (ii) ten percent
(10%) of the then outstanding original principal balance of the Note, and if,
in the reasonable judgment of Beneficiary, the Trust Property can be restored
within six (6) months and prior to the Anticipated Repayment Date to an economic
unit not less valuable (including an assessment of the impact of the termination
of any Leases due to such Condemnation) and not less useful than the same was
prior to the Condemnation, and after such restoration will adequately secure the
outstanding balance of the Debt, then, if no Event of Default shall have
occurred and be then continuing, the proceeds of the Award (after reimbursement
of any expenses incurred by Beneficiary) shall be applied to reimburse Trustor
for the cost of restoring, repairing, replacing or rebuilding the Trust Property
or part thereof subject to Condemnation, in the manner set forth below. If
insurance proceeds are made available to Trustor or are sufficient for such
purposes, Trustor hereby covenants and agrees to commence and diligently to
prosecute such restoring, repairing, replacing or rebuilding; provided always,
that Trustor shall pay all costs (and if required by Beneficiary, Trustor shall
deposit the total thereof with Beneficiary in advance) of such restoring,
repairing, replacing or rebuilding in excess of the Award made available
pursuant to the terms hereof.

            (c) Except as provided above, the Award collected upon any
Condemnation shall, at the option of Beneficiary in its sole discretion, be
applied to the payment of the Debt or applied to reimburse Trustor for the cost
of restoring, repairing, replacing or rebuilding the Trust Property or part
thereof subject to the Condemnation, in the manner set forth below. Any such
application to the Debt shall be without any prepayment consideration except
that if an Event of Default, or an event wit notice and/or the passage of time
would constitute an Event of Default, has occurred then the Trustor shall pay to
Beneficiary an additional amount equal to the Yield Maintenance Premium, if any,
that would be required under Paragraph 57 hereof if Defeasance Collateral was to
be purchased by Trustor. Any such application to the Debt shall be applied to
those payments of principal and interest last due under the Note but shall not
postpone or reduce any payments otherwise required pursuant to the Note other
than such last due payments. If the Trust Property is sold, through foreclosure
or otherwise, prior to the receipt by Beneficiary of such Award, Beneficiary
shall have the right, whether or not a deficiency judgment on the Note shall be
recoverable or shall have been sought, recovered or denied, to receive all or a
portion of said Award sufficient to pay the Debt.

            (d) In the event Trustor is entitled to reimbursement out of the
Award received by Beneficiary, such proceeds shall be disbursed from time to
time upon Beneficiary being furnished with (1) evidence satisfactory to it of
the estimated cost of completion of the restoration, repair, replacement and
rebuilding resulting from such condemnation, (2) funds or, at Beneficiary's
option, assurances satisfactory to Beneficiary that such funds are available,
sufficient in addition to the proceeds of the Award to complete the proposed
restoration, repair, replacement and rebuilding, and (3) such architect's
certificates, waivers of lien, contractor's sworn statements, title insurance
endorsements, bonds, plats of survey and such other evidences of costs, payment
and performance as Beneficiary may reasonably require and approve; and
Beneficiary may, in any event, require that all plans and

                                      -12-

<PAGE>

specifications for such restoration, repair, replacement and rebuilding be
submitted to and approved by Beneficiary prior to commencement of work. No
payment made prior to the final completion of the restoration, repair,
replacement and rebuilding shall exceed ninety percent (90%) of the value of the
work performed from time to time as such value shall be determined by
Beneficiary in its reasonable judgement; funds other than proceeds of the Award
shall be disbursed prior to disbursement of such proceeds; and at all times, the
undisbursed balance of such proceeds remaining in hands of Beneficiary, together
with funds deposited for that purpose or irrevocably committed to the
satisfaction of Beneficiary by or on behalf of Trustor for that purpose, shall
be at least sufficient in the reasonable judgment of Beneficiary to pay for the
costs of completion of the restoration, repair, replacement or rebuilding, free
and clear of all liens or claims for lien. Any surplus which may remain out of
the Award received by Beneficiary after payment of such costs of restoration,
repair, replacement or rebuilding shall, in the sole and absolute discretion of
Beneficiary, be retained by Beneficiary and applied to payment of the Debt.

         8. LEASES AND RENTS.

            (a) Trustor does hereby absolutely and unconditionally assign to
Beneficiary, all Trustor's right, title and interest in all current and future
Leases and Rents, it being intended by Trustor that this assignment constitutes
a present, absolute assignment and not an assignment for additional security
only. Such assignment to Beneficiary shall not be construed to bind Beneficiary
to the performance of any of the covenants, conditions or provisions contained
in any such Lease or otherwise impose any obligation upon Beneficiary. Trustor
agrees to execute and deliver to Beneficiary such additional instruments, in
form and substance satisfactory to Beneficiary, as may hereafter be requested by
Beneficiary to further evidence and confirm such assignment. Nevertheless,
subject to the terms of this paragraph, Beneficiary grants to Trustor a
revocable license to operate and manage the Trust Property and to collect the
Rents. Trustor shall hold the Rents, or a portion thereof, sufficient to
discharge all current sums due on the Debt, in trust for the benefit of
Beneficiary for use in the payment of such sums. Upon an Event of Default,
without the need for notice or demand, the license granted to Trustor herein
shall automatically be revoked, and Beneficiary shall immediately be entitled to
possession of all Rents, whether or not Beneficiary enters upon or takes control
of the Trust Property. Beneficiary and Trustee are hereby granted and assigned
by Trustor the right, at its option, upon revocation of the license granted
herein, to enter upon the Trust Property in person, by agent or by
court-appointed receiver to collect the Rents. Any Rents collected after the
revocation of the license may be applied toward payment of the Debt in such
priority and proportions as Beneficiary in its sole discretion shall deem
proper.

            (b) All Leases shall provide that they are subordinate to this Deed
of Trust and that the tenant agrees to attorn to Beneficiary. None of the Leases
shall contain any option to purchase, any right of first refusal to lease or
purchase or any right to terminate the lease term (except in the event of the
destruction of all or substantially all of the Trust Property). Leases executed
after the date hereof shall not contain any provisions which adversely affect
the Trust Property or which might adversely affect the rights of any holder of
the Loan without the prior written consent of Beneficiary. Each tenant shall
conduct business

                                      -13-

<PAGE>

only in that portion of the Trust Property covered by its lease. Upon request,
Trustor shall furnish Beneficiary with executed copies of all Leases.

            (c) Trustor shall not, without the prior consent of Beneficiary
(i) enter into any Lease of all or any part of the Trust Property in excess of
15,000 rentable square feet (a "Major Lease"), (ii) cancel, terminate, abridge
or otherwise modify the terms of any Major Lease, or accept a surrender thereof,
(iii) consent to any assignment of or subletting under any Major Lease not in
accordance with its terms, (iv) cancel, terminate, abridge or otherwise modify
any guaranty of any Major Lease or the terms thereof, (v) accept prepayments of
installments of Rents for a period of more than one (1) month in advance or (vi)
further assign the whole or any part of the Leases or the Rents. In addition to
the foregoing, Trustor shall not (A) lease all or any part of the Trust
Property, (B) cancel, terminate, abridge or otherwise modify the terms of any
Lease, or accept a surrender thereof, (C) consent to any assignment of or
subletting under any Lease not in accordance with its terms or (D) cancel,
terminate, abridge or otherwise modify any guaranty of any Lease or the terms
thereof unless such actions are exercised for a commercially reasonable purpose
in arms-length transactions for market rate terms.

            (d) Trustor (i) shall observe and perform all the obligations
imposed upon the lessor under the Leases and shall not do or permit to be done
anything to impair the value of the Leases as security for the Debt; (ii) shall
promptly send copies to Beneficiary of all notices of default which Trustor
shall send or receive thereunder; (iii) shall enforce all the terms, covenants
and conditions contained in the Leases upon the part of the lessee thereunder to
be observed or performed, short of termination thereof; (iv) shall not collect
any of the Rents more than one (1) month in advance; (v) shall not execute any
other assignment of the lessor's interest in the Leases or the Rents; (vi) shall
deliver to Beneficiary, upon request, tenant estoppel certificates from each
commercial tenant at the Trust Property in form and substance reasonably
satisfactory to Beneficiary, provided that Trustor shall not be required to
deliver such certificates more frequently than two (2) times in any calendar
year; and (vii) shall execute and deliver at the request of Beneficiary all such
further assurances, confirmations and assignments in connection with the Trust
Property as Beneficiary shall from time to time require.

            (e) All security deposits of tenants, whether held in cash or any
other form, shall not be commingled with any other funds of Trustor and, if
cash, shall be deposited by Trustor at such commercial or savings bank or banks,
or otherwise held in compliance with applicable law, as may be reasonably
satisfactory to Beneficiary. Any bond or other instrument which Trustor is
permitted to hold in lieu of cash security deposits under any applicable legal
requirements shall be maintained in full force and effect in the full amount of
such deposits unless replaced by cash deposits as hereinabove described, shall
be issued by an institution reasonably satisfactory to Beneficiary, shall, if
permitted pursuant to any legal requirements, name Beneficiary as payee or
mortgagee thereunder (or at Beneficiary's option, be fully assignable to
Beneficiary) and shall, in all respects, comply with any applicable legal
requirements and otherwise be reasonably satisfactory to Beneficiary. Trustor
shall, upon request, provide Beneficiary with evidence reasonably satisfactory
to Beneficiary of Trustor's

                                      -14-

<PAGE>

compliance with the foregoing. Following the occurrence and during the
continuance of any Event of Default, Trustor shall, upon Beneficiary's request,
if permitted by any applicable legal requirements, turn over to Beneficiary
the security deposits (and any interest theretofore earned thereon) with
respect to all or any portion of the Trust Property, to be held by Beneficiary
subject to the terms of the Leases.

         9. MAINTENANCE AND USE OF TRUST PROPERTY. Trustor shall cause the Trust
Property to be maintained in a good and safe condition and repair. The
Improvements and the Equipment shall not be removed, demolished or materially
altered (except for normal replacement of the Equipment) without the consent of
Beneficiary. Trustor shall promptly comply with all laws, orders and ordinances
affecting the Trust Property, or the use thereof. Trustor shall promptly repair,
replace or rebuild any part of the Trust Property that is destroyed by any
casualty, or becomes damaged, worn or dilapidated or that is affected by any
proceeding of the character referred to in Paragraph 7 hereof and shall complete
and pay for any structure at any time in the process of construction or repair
on the Premises. Trustor shall not initiate, join in, acquiesce in, or consent
to any change in any private restrictive covenant, zoning law or other public or
private restriction, limiting or defining the uses which may be made of the
Trust Property or any part thereof. If under applicable zoning provisions the
use of all or any portion of the Trust Property is or shall become a
nonconforming use, Trustor will not cause or permit such nonconforming use to be
discontinued or abandoned without the express written consent of Beneficiary.
Trustor shall not (i) change the use of the Trust Property, (ii) permit or
suffer to occur any waste on or to the Trust Property or to any portion thereof
or (iii) take any steps whatsoever to convert the Trust Property, or any portion
thereof, to a condominium or cooperative form of management. Trustor will not
install or permit to be installed on the Premises any underground storage tank.

         10. TRANSFER OR ENCUMBRANCE OF THE TRUST PROPERTY.

             (a) Trustor acknowledges that Beneficiary has examined and relied
on the creditworthiness and experience of Trustor in owning and operating
properties such as the Trust Property in agreeing to make the Loan, and that
Beneficiary will continue to rely on Trustor's ownership of the Trust Property
as a means of maintaining the value of the Trust Property as security for
repayment of the Debt. Trustor acknowledges that Beneficiary has a valid
interest in maintaining the value of the Trust Property so as to ensure that,
should Trustor default in the repayment of the Debt, Beneficiary can recover the
Debt by a sale of the Trust Property. Trustor shall not, without the prior
written consent of Beneficiary, sell, convey, alienate, mortgage, encumber,
pledge or otherwise transfer the Trust Property or any part thereof or any
interest therein, or permit the Trust Property or any part thereof or any
interest therein to be sold, conveyed, alienated, mortgaged, encumbered, pledged
or otherwise transferred.

             (b) A sale, conveyance, alienation, mortgage, encumbrance, pledge
or transfer within the meaning of this Paragraph 10 shall be deemed to include
(i) an installment sales agreement wherein Trustor agrees to sell the Trust
Property or any part thereof for a price to be paid in installments; (ii) an
agreement by Trustor leasing all or a

                                      -15-

<PAGE>
substantial part of the Trust Property for other than actual occupancy by a
space tenant thereunder or a sale, assignment or other transfer of, or the grant
of a security interest in, Trustor's right, title and interest in and to any
Leases or any Rents; (iii) if Trustor, Guarantor or any partner or managing
member of Trustor or Guarantor is a corporation, the voluntary or involuntary
sale, conveyance or transfer 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 in one or a series of
transactions by which an aggregate of more than 10% of such corporation's stock
shall be vested in a party or parties who are not now stockholders or any change
in the control of such corporation; (iv) if Trustor, any Guarantor or any
partner of Trustor or any Guarantor or any partner is a limited or general
partnership, joint venture or limited liability company, the change, removal,
resignation or addition of a general partner, managing partner or joint venturer
or the transfer, assignment or pledge of any ownership interest of any general
partner, managing partner or joint venturer in Trustor or the transfer,
assignment or pledge of any ownership interest in any general partner, managing
partner or joint venturer; or (v) if Trustor or any Guarantor or any partner is
a limited partnership or limited liability company, the voluntary or involuntary
sale, conveyance, transfer or pledge of any limited partnership interests or
membership interests or the creation or issuance of new limited partnership
interests or membership interests, by which an aggregate of more than 20% of
such limited partnership interests or membership interests are held by, or
pledged to, parties who are not currently limited partners or members.

                  (c) Beneficiary shall not be required to demonstrate any
actual impairment of its security or any increased risk of default hereunder in
order to declare the Debt immediately due and payable upon Trustor's sale,
conveyance, alienation, mortgage, encumbrance, pledge or transfer of the Trust
Property without Beneficiary's consent. This provision shall apply to every
sale, conveyance, alienation, mortgage, encumbrance, pledge or transfer of the
Trust Property regardless of whether voluntary or not, or whether or not
Beneficiary has consented to any previous sale, conveyance, alienation,
mortgage, encumbrance, pledge or transfer of the Trust Property.

                  (d) Beneficiary's consent to one sale, conveyance, alienation,
mortgage, encumbrance, pledge or transfer of the Trust Property shall not be
deemed to be a waiver of Beneficiary's right to require such consent to any
future occurrence of same. Any sale, conveyance, alienation, mortgage,
encumbrance, pledge or transfer of the Trust Property made in contravention of
this paragraph shall be null and void and of no force and effect.

                  (e) Trustor agrees to bear and shall pay or reimburse
Beneficiary on demand for all reasonable expenses (including, without
limitation, reasonable attorneys' fees and disbursements, title search costs and
title insurance endorsement premiums) incurred by Beneficiary in connection with
the review, approval and documentation of any such sale, conveyance, alienation,
mortgage, encumbrance, pledge or transfer.

                  (f) Beneficiary's consent to the sale or transfer of the Trust
Property will not be unreasonably withheld after consideration of all relevant
factors, provided that:

                                      -16-
<PAGE>

                  (i)      no Event of Default or event which with the giving of
                           notice or the passage of time would constitute an
                           Event of Default shall have occurred and remain
                           uncured;

                  (ii)     the proposed transferee ("TRANSFEREE") shall be a
                           reputable entity or person of good character,
                           creditworthy, with sufficient financial worth
                           considering the obligations assumed and undertaken,
                           as evidenced by financial statements and other
                           information reasonably requested by Beneficiary;

                  (iii)    the Transferee and its property manager shall have
                           sufficient experience in the ownership and management
                           of properties similar to the Trust Property, and
                           Beneficiary shall be provided with reasonable
                           evidence thereof (and Beneficiary reserves the right
                           to approve the Transferee without approving the
                           substitution of the property manager);

                  (iv)     Beneficiary shall have recommendations in writing
                           from the Rating Agencies to the effect that such
                           transfer will not result in a requalification,
                           reduction or withdrawal of any current securities
                           rating assigned in a Securitization. The term "RATING
                           AGENCIES" as used herein shall mean each of Standard
                           & Poor's Ratings Group, a division of the McGraw-Hill
                           Companies, Inc., Moody's Investors Service, Inc.,
                           Duff and Phelps Credit Rating Co. and Fitch Investors
                           Service, L.P., or any other nationally-recognized
                           statistical rating agency which has been approved by
                           Beneficiary;

                  (v)      the Transferee shall have executed and delivered to
                           Beneficiary an assumption agreement in form and
                           substance acceptable to Beneficiary, evidencing such
                           Transferee's agreement to abide and be bound by the
                           terms of the Note, this Deed of Trust and the other
                           Loan Documents, together with such legal opinions and
                           title insurance endorsements as may be reasonably
                           requested by Beneficiary; and

                  (vi)     Beneficiary shall have received an assumption fee
                           equal to one percent (1%) of the Debt on the date of
                           such assumption and the payment of, or reimbursement
                           for, all costs and expenses incurred by Beneficiary
                           in connection with such assumption (including
                           reasonable attorneys' fees and costs).

         11. REPRESENTATIONS AND COVENANTS CONCERNING THE TRUSTOR AND PROPERTY.
Trustor represents, warrants and covenants as follows:

                                      -17
<PAGE>

         (a)      Organization and Existence. Trustor is duly organized and
                  validly existing as a limited partnership in good standing
                  under the laws of Delaware and in all other jurisdictions in
                  which Trustor is transacting business. Trustor has the power
                  and authority to execute, deliver and perform the obligations
                  imposed on it under the Loan Documents and to consummate the
                  transactions contemplated by the Loan Documents.

         (b)      Authorization. Trustor has taken all necessary actions for the
                  authorization of the borrowing on account of the Loan and for
                  the execution and delivery of the Loan Documents, including,
                  without limitation, that those partners of Trustor whose
                  approval is required by the terms of Trustor's organizational
                  documents have duly approved the transactions contemplated by
                  the Loan Documents and have authorized execution and delivery
                  thereof by the respective signatories. To the best of
                  Trustor's knowledge, no other consent by any local, state or
                  federal agency is required in connection with the execution
                  and delivery of the Loan Documents.

         (c)      Valid Execution and Delivery. All of the Loan Documents
                  requiring execution by Trustor have been duly and validly
                  executed and delivered by Trustor.

         (d)      Enforceability. All of the Loan Documents constitute valid,
                  legal and binding obligations of Trustor and are fully
                  enforceable against Trustor in accordance with their terms by
                  Beneficiary and its successors, transferees and assigns,
                  subject only to bankruptcy laws and general principles of
                  equity.

         (e)      No Defenses. The Note, this Deed of Trust and the other Loan
                  Documents are not subject to any right of rescission, set-off,
                  counterclaim or defense, nor would the operation of any of the
                  terms of the Note, this Deed of Trust or any of the other Loan
                  Documents, or the exercise of any right thereunder, render
                  this Deed of Trust unenforceable, in whole or in part, or
                  subject to any right of rescission, set-off, counterclaim or
                  defense, including the defense of usury.

         (f)      Defense of Usury. Trustor knows of no facts that would support
                  a claim of usury to defeat or avoid its obligation to repay
                  the principal of, interest on, and other sums or amounts due
                  and payable under, the Loan Documents.

         (g)      No Conflict/Violation of Law. The execution, delivery and
                  performance of the Loan Documents by the Trustor will not
                  cause or constitute a default under or conflict with the
                  organizational documents of Trustor, any Guarantor or any
                  general partner or managing member of Trustor or any
                  Guarantor. The execution, delivery and performance of the

                                      -18-
<PAGE>

                  obligations imposed on Trustor under the Loan Documents will
                  not cause Trustor to be in default, including after due notice
                  or lapse of time or both, under the provisions of any
                  agreement, judgment or order to which Trustor is a party or
                  by which Trustor is bound.

         (h)      Compliance with Applicable Laws and Regulations. All of the
                  Improvements and the use of the Trust Property comply with,
                  and shall remain in compliance with, all applicable statutes,
                  rules, regulations and private covenants now or hereafter
                  relating to the ownership, construction, use or operation of
                  the Trust Property, including all applicable statutes, rules
                  and regulations pertaining to requirements for equal
                  opportunity, anti-discrimination, fair housing, environmental
                  protection, zoning and land use. The Improvements comply with,
                  and shall remain in compliance with, applicable health, fire
                  and building codes. There is no evidence of any illegal
                  activities relating to controlled substances on the Trust
                  Property. All certifications, permits, licenses and approvals,
                  including, without limitation, certificates of completion and
                  occupancy permits required for the legal use, occupancy and
                  operation of the Trust Property as an office and commercial
                  facility have been obtained and are in full force and effect.
                  All of the Improvements comply with all material requirements
                  of any applicable zoning and subdivision laws and ordinances.

         (i)      Consents Obtained. All consents, approvals, authorizations,
                  orders or filings with any court or governmental agency or
                  body, if any, required for the execution, delivery and
                  performance of the Loan Documents by Trustor have been
                  obtained or made.

         (j)      No Litigation. There are no pending actions, suits or
                  proceedings, arbitrations or governmental investigations
                  against the Trust Property, an adverse outcome of which would
                  materially affect the Trustor's performance under the Note,
                  the Deed of Trust or the other Loan Documents.

         (k)      Title. The Trustor has good and marketable fee simple title to
                  the Trust Property, and good title to the Equipment, subject
                  to no liens, charges or encumbrances other than the Permitted
                  Exceptions. The possession of the Trust Property has been
                  peaceful and undisturbed and title thereto has not been
                  disputed or questioned to the best of Trustor's knowledge.

         (l)      Permitted Exceptions. The Permitted Exceptions do not and will
                  not materially and adversely affect (1) the ability of the
                  Trustor to pay in full the principal and interest on the Note
                  in a timely manner or (2) the use of the Trust Property for
                  the use currently being made thereof, the

                                      -19-
<PAGE>

                  operation of the Trust Property as currently being operated or
                  the value of the Trust Property

         (m)      First Lien. Upon the execution by the Trustor and the
                  recording of this Deed of Trust, and upon the execution and
                  filing of UCC-1 financing statements or amendments thereto,
                  the Beneficiary will have a valid first lien on the Trust
                  Property and a valid security interest in the Equipment
                  subject to no liens, charges or encumbrances other than the
                  Permitted Exceptions.

         (n)      ERISA. The Trustor has made and shall continue to make all
                  required contributions to all employee benefit plans, if any,
                  and the Trustor has no knowledge of any material liability
                  which has been incurred by the Trustor which remains
                  unsatisfied for any taxes or penalties with respect to any
                  employee benefit plan or any multi-employer plan, and each
                  such plan has been administered in compliance with its terms
                  and the applicable provisions of the Employee Retirement
                  Income Security Act of 1974, as amended ("ERISA") and any
                  other federal or state law.

         (o)      Contingent Liabilities. The Trustor has no known material
                  contingent liabilities.

         (p)      No Other Obligations. The Trustor has no material financial
                  obligation under any indenture, mortgage, deed of trust, loan
                  agreement or other agreement or instrument to which the
                  Trustor is a party or by which the Trustor or the Trust
                  Property is otherwise bound, other than obligations incurred
                  in the ordinary course of the operation of the Trust Property
                  and other than obligations under this mortgage and the other
                  Loan Documents.

         (q)      No Other Debt. The Trustor has not borrowed or received other
                  debt financing that has not been heretofore repaid in full.

         (r)      Fraudulent Conveyance. The Trustor (1) has not entered into
                  the Loan or any Loan Document with the actual intent to
                  hinder, delay, or defraud any creditor and (2) received
                  reasonably equivalent value in exchange for its obligations
                  under the Loan Documents. Giving effect to the Loans
                  contemplated by the Loan Documents, the fair saleable value of
                  the Trustor's assets exceed and will, immediately following
                  the execution and delivery of the Loan Documents, exceed the
                  Trustor's total liabilities, including, without limitation,
                  subordinated, unliquidated, disputed or contingent
                  liabilities. The fair saleable value of the Trustor's assets
                  is and will, immediately following the execution and delivery
                  of the Loan Documents, be greater than the Trustor's probable
                  liabilities, including the maximum amount of its contingent
                  liabilities or

                                      -20-
<PAGE>

                  its debts as such debts become absolute and matured. The
                  Trustor's assets do not and, immediately following the
                  execution and delivery of the Loan Documents will not,
                  constitute unreasonably small capital to carry out its
                  business as conducted or as proposed to be conducted. The
                  Trustor does not intend to, and does not believe that it will,
                  incur debts and liabilities (including, without limitation,
                  contingent liabilities and other commitments) beyond its
                  ability to pay such debts as they mature (taking into account
                  the timing and amounts to be payable on or in respect of
                  obligations of the Trustor).

         (s)      Investment Company Act. The Trustor is not (1) an "investment
                  company" or a company "controlled" by an "investment company,"
                  within the meaning of the Investment Company Act of 1940, as
                  amended; (2) a "holding company" or a "subsidiary company" of
                  a "holding company" or an "affiliate" of either a "holding
                  company" or a "subsidiary company" within the meaning of the
                  Public Utility Holding Company Act of 1935, as amended; or (3)
                  subject to any other federal or state law or regulation which
                  purports to restrict or regulate its ability to borrow money.

         (t)      Access/Utilities. The Trust Property has adequate rights of
                  access to public ways and is served by adequate water, sewer,
                  sanitary sewer and storm drain facilities. All public
                  utilities necessary to the continued use and enjoyment of the
                  mortgaged property as presently used and enjoyed are located
                  in the public right-of-way abutting the mortgaged property,
                  and all such utilities are connected so as to serve the
                  mortgaged property without passing over other property. All
                  roads necessary for the full utilization of the mortgaged
                  property for its current purpose have been completed and
                  dedicated to public use and accepted by all governmental
                  authorities or are the subject of access easements for the
                  benefit of the mortgaged property.

         (u)      Taxes Paid. Trustor has filed all federal, state, county and
                  municipal tax returns required to have been filed by Trustor,
                  and has paid all taxes which have become due pursuant to such
                  returns or to any notice of assessment received by Trustor,
                  and Trustor has no knowledge of any basis for additional
                  assessment with respect to such taxes.

         (v)      Single Tax Lot. The Premises consists of a single lot or
                  multiple tax lots; no portion of said tax lot(s) covers
                  property other than the Premises or a portion of the Premises
                  and no portion of the Premises lies in any other tax lot.

         (w)      Special Assessments. Except as disclosed in the title
                  insurance policy, there are no pending or, to the knowledge of
                  the Trustor, proposed

                                      -21-

<PAGE>

                  special or other assessments for public improvements or
                  otherwise affecting the Trust Property, nor, to the knowledge
                  of the Trustor, are there any contemplated improvements to the
                  Trust Property that may result in such special or other
                  assessments.

         (x)      Flood Zone. The Trust Property is not located in a flood
                  hazard area as defined by the Federal Insurance
                  Administration.

         (y)      Seismic Exposure. The Premises are not located Zone 3 or Zone
                  4 of the "Seismic Zone Map of the U.S.".

         (z)      Misstatements of Fact. No statement of fact made in the Loan
                  Documents contains any untrue statement of a material fact or
                  omits to state any material fact necessary to make statements
                  contained herein or therein not misleading. There is no fact
                  presently known to the Trustor which has not been disclosed
                  which adversely affects, nor as far as the Trustor can
                  foresee, might adversely affect the business, operations or
                  condition (financial or otherwise) of the representing party.

         (aa)     Condition of Improvements. The Trust Property has not been
                  damaged by fire, water, wind or other cause of loss or any
                  previous damage to the Trust Property has been fully restored.

         (bb)     No Insolvency or Judgment. Trustor's general partner is not
                  currently (a) the subject of or a party to any completed or
                  pending bankruptcy, reorganization or insolvency proceeding;
                  or (b) the subject of any judgment unsatisfied of record or
                  docketed in any court of the state in which the Trust Property
                  is located or in any other court located in the United States.
                  The purposed Loan will not render the Trustor nor its general
                  partner insolvent. As used in this Certificate, the term
                  "insolvent" means that the sum total of all of an entity's
                  liabilities (whether secured or unsecured, contingent or
                  fixed, or liquidated or unliquidated) is in excess of the
                  value of all such entity's non-exempt assets, i.e., all of the
                  assets of the entity that are available to satisfy claims of
                  creditors.

         (cc)     No Condemnation. No part of any property subject to the Deed
                  of Trust has been taken in condemnation or other like
                  proceeding to an extent which would impair the value of the
                  Trust Property, the Deed of Trust or the Loan or the
                  usefulness of such property for the purposes contemplated by
                  the loan application relating to the Loan (the "Loan
                  Application"), nor is any proceeding pending, threatened or
                  known to be contemplated for the partial or total condemnation
                  or taking of the Trust Property.

                                      -22-
<PAGE>

         (dd)     No Subordinate Financing. Except as otherwise expressly
                  approved by Beneficiary in writing, no part of any property
                  subject to the Deed of Trust is, or will become, subject to a
                  second mortgage, deed of trust or other type of subordinate
                  lien.

         (ee)     No Labor or Materialmen Claims. All parties furnishing labor
                  and materials have been paid in full and, except for such
                  liens or claims insured against by the policy of title
                  insurance to be issued in connection with the Loan, there are
                  no mechanics', laborers' or materialmens' liens or claims
                  outstanding for work, labor or materials affecting the Trust
                  Property, whether prior to, equal with or subordinate to the
                  lien of the Deed of Trust.

         (ff)     No Purchase Options. No tenant, person, party, firm,
                  corporation or other entity has an option to purchase the
                  Trust Property, any portion thereof or any interest therein.

         (gg)     Leases. The Trust Property is not subject to any Leases other
                  than the Leases described in the rent roll delivered to
                  Beneficiary in connection with this Deed of Trust. No person
                  has any possessory interest in the Trust Property or right to
                  occupy the same except under and pursuant to the provisions
                  of the Leases. As of the date hereof, (i) the Trustor is the
                  owner and holder of the landlord's interest under each Lease;
                  (ii) there are no prior assignments of any Lease or any
                  portion of Rents which are presently outstanding and have
                  priority over the Assignment of Leases and Rents (the
                  "ASSIGNMENT OF LEASES AND RENTS"), dated the date hereof,
                  given by Trustor to Beneficiary and intended to be duly
                  recorded; (iii) the Leases are on the standard form of lease
                  approved by Beneficiary and have not been modified or amended,
                  except as disclosed to Beneficiary in writing on the date
                  hereof; (iv) each Lease is in full force and effect; (v)
                  neither Trustor nor any tenant under any Lease is in default
                  under any of the terms, covenants or provisions of the Lease,
                  and Trustor knows of no event which, but for the passage of
                  time or the giving of notice or both, would constitute an
                  event of default under any Lease; (vi) there are no offsets or
                  defenses to the payment of any portion of the Rents; and (vii)
                  all Rents due and payable under each Lease have been paid in
                  full and no said Rents have been paid more than one (1) month
                  in advance of the due dates thereof.

         (hh)     Appraisal. All, requirements and conditions of the appraisal
                  of the Property submitted to Beneficiary as part of the Loan
                  Application, upon which the value of the Trust Property was
                  conditioned, have been fully satisfied.

                                      -23-
<PAGE>

         (ii)     Boundary Lines. All of the Improvements which were included in
                  determining the appraised value of the Trust Property lie
                  wholly within the boundaries and building restriction lines
                  of the Trust Property, and no improvements on adjoining
                  properties encroach upon the Trust Property, and no easements
                  or other encumbrances upon the Premises encroach upon any of
                  the Improvements, so as to affect the value or marketability
                  of the Trust Property except those which are insured against
                  by title insurance.

         (jj)     Survey. The survey of the Trust Property delivered to
                  Beneficiary in connection with this Deed of Trust, has been
                  performed by a duly licensed surveyor or registered
                  professional engineer in the jurisdiction in which the Trust
                  Property is situated, is certified to the Beneficiary, its
                  successors and assigns, and the title insurance company, and
                  is in accordance with the most current minimum standards for
                  title surveys as determined by the American Land Title
                  Association, with the signature and seal of a licensed
                  engineer or surveyor affixed thereto, and does not fail to
                  reflect any material matter affecting the Trust Property or
                  the title thereto.

         (kk)     Forfeiture. There has not been and shall never be committed by
                  Trustor or any other person in occupancy of or involved with
                  the operation or use of the Trust Property any act or omission
                  affording the federal government or any state or local
                  government the right of forfeiture as against the Trust
                  Property or any part thereof or any monies paid in performance
                  of Trustor's obligations under any of the Loan Documents.

         (ll)     Management Agreement. The Management Agreement dated December
                  23, 1997 (the "MANAGEMENT AGREEMENT") between Trustor and
                  First Potomac Management, Inc. ("MANAGER") pursuant to which
                  Manager operates the Trust Property is in full force and
                  effect and there is no default or violation by any party
                  thereunder. The fee due under the Management Agreement, and
                  the terms and provisions of the Management Agreement, are
                  subordinate to this Deed of Trust and Manager shall attorn to
                  Beneficiary. Trustor shall not terminate, cancel, modify,
                  renew or extend the Management Agreement, or enter into any
                  agreement relating to the management or operation of the Trust
                  Property with Manager or any other party without the express
                  written consent of Beneficiary, which consent shall not be
                  unreasonably withheld. If at any time Beneficiary consents to
                  the appointment of a new Manager, such new Manager and Trustor
                  shall, as a condition of Beneficiary's consent, execute a
                  Consent and Agreement of Manager in the form then used by
                  Beneficiary.

                                      -24-

<PAGE>

         (mm)     No Broker. No financial advisors, brokers, underwriters,
                  placement agents, agents or finders have been dealt with by
                  the Trustor in connection with the Loan.

         12. SINGLE PURPOSE ENTITY/SEPARATENESS. Trustor represents, warrants
and covenants as follows:

                  (a) Trustor does not own and will not own any asset or
property other than (i) the Trust Property, and (ii) incidental personal
property necessary for the ownership or operation of the Trust Property.

                  (b) Trustor will not engage in any business other than the
ownership, management and operation of the Trust Property and Trustor will
conduct and operate its business as presently conducted and operated.

                  (c) Trustor will not enter into any contract or agreement with
any affiliate of the Trustor, any constituent party of Trustor, any guarantor (a
"GUARANTOR" of the Debt or any part thereof or any affiliate of any constituent
parry or Guarantor, 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 panics other than any such party.

                  (d) Trustor has not incurred and will not incur any
indebtedness, secured or unsecured, direct or indirect, absolute or contingent
(including guaranteeing any obligation), other than (i) the Debt, (ii) trade and
operational debt incurred in the ordinary course of business with trade
creditors and in amounts as are normal and reasonable under the circumstances,
and (iii) debt incurred in the financing of equipment and other personal
property used on the Premises. No indebtedness other than the Debt may be
secured (subordinate or pari passu) by the Trust Property.

                  (e) Trustor has not made and will not make any loans or
advances to any third party (including any affiliate or constituent party, any
Guarantor or any affiliate of any constituent party or Guarantor), and shall not
acquire obligations or securities of its affiliates.

                  (f) Trustor is and will remain solvent and Trustor will pay
its debts and liabilities (including, as applicable, shared personnel and
overhead expenses) from its assets as the same shall become due.

                  (g) Trustor has done or caused to be done and will do all
things necessary to observe organizational formalities and preserve its
existence, and Trustor will not, nor will Trustor permit any constituent party
or Guarantor to amend, modify or otherwise change the partnership certificate,
partnership agreement, articles of incorporation and bylaws, operating
agreement, certificate of organization, trust or other organizational documents
of Trustor or such constituent party or Guarantor without the prior written
consent of Beneficiary.

                                      -25-
<PAGE>

                  (h) Trustor will maintain all of its books, records, financial
statements and bank accounts separate from those of its affiliates and any
constituent party and Trustor will file its own tax returns unless required
otherwise by applicable law. Trustor shall maintain its books, records,
resolutions and agreements as official records.

                  (i) Trustor will be, and at all times will hold itself out to
the public as, a legal entity separate and distinct from any other entity
(including any affiliate of Trustor, any constituent party of Trustor, any
Guarantor or any affiliate of any constituent party or Guarantor), shall correct
any known misunderstanding regarding its status as a separate entity, shall
conduct business in its own name, shall not identify itself or any of its
affiliates as a division or part of the other and shall maintain and utilize a
separate telephone number and separate stationery, invoices and checks.

                  (j) Trustor is adequately capitalized and will 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.

                  (k) Neither Trustor nor any constituent party will seek the
dissolution, winding up, liquidation, consolidation or merger in whole or in
part, of the Trustor.

                  (1) Trustor will not commingle the funds and other assets of
Trustor with those of any affiliate or constituent party, any Guarantor, or any
affiliate of any constituent party of Guarantor, or any other person.

                  (m) Trustor has and will maintain its assets in such a manner
that it will not be costly or difficult to segregate, ascertain or identify its
individual assets from those of any affiliate or constituent party, any
Guarantor, or any affiliate of any constituent party or Guarantor, or any other
person.

                  (n) Trustor does not and will not guarantee, become obligated
for, or hold itself out to be responsible for the debts or obligations of any
other person or entity or the decisions or actions respecting the daily business
or affairs of any other person or entity.

                  (o) If Trustor is a limited partnership or a limited liability
company, the general partner or managing member (the "SPC ENTITY") shall be a
corporation whose sole asset is its interest in Trustor and the SPC Entity will
at all times comply, and will cause Trustor to comply, with each of the
representations, warranties, and covenants contained in this Paragraph 12 as if
such representation, warranty or covenant was made directly by such general
partner or managing member.

                  (p) Trustor shall at all times cause there to be at least one
duly appointed member of the board of directors (an "INDEPENDENT DIRECTOR") of
the SPC Entity reasonably satisfactory to Beneficiary who shall not have been at
the time of such individual's appointment, and may not have been at any time
during the preceding five years (i) a shareholder of, or an officer, director,
attorney, counsel, partner or employee of, Trustor or

                                      -26-

<PAGE>
any of its shareholders, subsidiaries or affiliates, (ii) a customer of, or
supplier to, Trustor or any of its shareholders, subsidiaries or affiliates,
(iii) a person or other entity controlling or under common control with any such
shareholder, partner, supplier or customer, or (iv) a member of the immediate
family of any such shareholder, officer, director, partner, employee, supplier
or customer of any other director of Trustor. As used herein, the term "control"
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a person or entity, whether
through ownership of voting securities, by contract or otherwise.

                  (q) Trustor shall not cause or permit the board of directors
of the SPC Entity to take any action which, under the terms of any certificate
of incorporation, bylaws or any voting trust agreement with respect to any
common stock, requires a vote of the board of directors of the SPC Entity unless
at the time of such action there shall be at least one member who is an
Independent Director.

                  (r) Trustor will not permit any affiliate or constituent party
independent access to its bank accounts.

                  (s) Trustor shall pay the salaries of its own employees and
maintain a sufficient number of employees in light of its contemplated business
operations.

                  (t) Trustor shall conduct its business so that the assumptions
made with respect to Trustor in that certain opinion letter dated the date
hereof (the "INSOLVENCY OPINION") delivered by Arnold & Porter in connection
with the Loan shall be true and correct in all respects.

         13. ESTOPPEL CERTIFICATES AND NO DEFAULT AFFIDAVITS.

                  (a) After request by Beneficiary, Trustor shall within ten
(10) days furnish Beneficiary with a statement, duly acknowledged and certified,
setting forth (i) the amount of the original principal amount of the Note, (ii)
the unpaid principal amount of the Note, (iii) the rate of interest of the Note,
(iv) the date installments of interest and/or principal were last paid, (v) any
offsets or defenses to the payment of the Debt, if any, (vi) that the Note, this
Deed of Trust and the other Loan Documents are valid, legal and binding
obligations and have not been modified or if modified, giving particulars of
such modification; and (vii) reaffirming all representations and warranties of
Trustor set forth herein and in the other Loan Documents as of the date
requested by Beneficiary or, to the extent of any changes to any such
representations and warranties, so stating such changes.

                  (b) Trustor shall deliver to Beneficiary upon request, tenant
estoppel certificates from each commercial tenant at the Trust Property in form
and substance reasonably satisfactory to Beneficiary provided that Trustor shall
not be required to deliver such certificates more frequently than two (2) times
in any calendar year.

         14. CONTROLLING AGREEMENT. It is expressly stipulated and agreed to be
the intent of Trustor, and Beneficiary at all times to comply with applicable
state law or applicable

                                      -27-

<PAGE>

United States federal law (to the extent that it permits Beneficiary to contract
for, charge, take, reserve, or receive a greater amount of interest than under
state law) and that this Paragraph 14 (and the similar paragraph contained in
the Note) shall control every other covenant and agreement in this Deed of Trust
and the other Loan Documents. If the applicable law (state or federal) is ever
judicially interpreted so as to render usurious any amount called for under the
Note or under any of the other Loan Documents, or contracted for, charged,
taken, reserved, or received with respect to the Debt, or if Beneficiary's
exercise of the option to accelerate the maturity of the Note, or if any
prepayment by Trustor results in Trustor having paid any interest in excess of
that permitted by applicable law, then it is Trustor's and Beneficiary's express
intent that all excess amounts theretofore collected by Beneficiary shall be
credited on the principal balance of the Note and all other Debt (or, if the
Note and all other Debt have been or would thereby be paid in full, refunded to
Trustor), and the provisions of the Note and the other Loan Documents
immediately be deemed reformed and the amounts thereafter collectible hereunder
and thereunder reduced, without the necessity of the execution of any new
documents, so as to comply with the applicable law, but so as to permit the
recovery of the fullest amount otherwise called for hereunder or thereunder. All
sums paid or agreed to be paid to Beneficiary for the use, forbearance, or
detention of the Debt shall, to the extent permitted by applicable law, be
amortized, prorated, allocated, and spread throughout the full stated term of
the Debt until payment in full so that the rate or amount of interest on account
of the Debt does not exceed the maximum lawful rate from time to time in effect
and applicable to the Debt for so long as the Debt is outstanding.
Notwithstanding anything to the contrary contained herein or in any of the other
Loan Documents, it is not the intention of Beneficiary to accelerate the
maturity of any interest that has not accrued at the time of such acceleration
or to collect unearned interest at the time of such acceleration.

         15. CHANGES IN LAWS REGARDING TAXATION. If any law is enacted or
adopted or amended after the date of this Deed of Trust which deducts the Debt
from the value of the Trust Property for the purpose of taxation or which
imposes a tax, either directly or indirectly, on the Debt or Beneficiary's
interest in the Trust Property, Trustor will pay such tax, with interest and
penalties thereon, if any. In the event Beneficiary is advised by counsel chosen
by it that the payment of such tax or interest and penalties by Trustor would be
unlawful or taxable to Beneficiary or unenforceable or provide the basis for a
defense of usury, then in any such event, Beneficiary shall have the option, by
written notice of not less than one hundred twenty (120) days, to declare the
Debt immediately due and payable.

         16. NO CREDITS ON ACCOUNT OF THE DEBT. Trustor will not claim or demand
or be entitled to any credit or credits on account of the Debt for any part of
the Taxes or Other Charges assessed against the Trust Property, or any part
thereof, and no deduction shall otherwise be made or claimed from the assessed
value of the Trust Property, or any part thereof, for real estate tax purposes
by reason of this Deed of Trust or the Debt. In the event such claim, credit or
deduction shall be required by law, Beneficiary shall have the option, by
written notice of not less than one hundred twenty (120) days, to declare the
Debt immediately due and payable.

                                      -28-

<PAGE>

         17. DOCUMENTARY STAMPS. If at any time the United States of America,
any State thereof or any subdivision of any such State shall require revenue or
other stamps to be affixed to the Note or this Deed of Trust, or impose any
other tax or charge on the same, Trustor will pay for the same, with interest
and penalties thereon, if any.

         18. BOOKS AND RECORDS.

                  (a) The financial statements heretofore furnished to
Beneficiary are, as of the dates specified therein, complete and correct and
fairly present the financial condition of the Trustor and any other persons or
entities that are the subject of such financial statements, and are prepared in
accordance with generally accepted accounting principles. Trustor does not have
any contingent liabilities, liabilities for taxes, unusual forward or long-term
commitments or unrealized or anticipated losses from any unfavorable commitments
that are known to Trustor and reasonably likely to have a materially adverse
effect on the Trust Property or the operation thereof as a
commercial/office/industrial property, except as referred to or reflected in
said financial statements. Since the date of such financial statements, there
has been no materially adverse change in the financial condition, operation or
business of Trustor from that set forth in said financial statements.

                  (b) Trustor will maintain full and accurate books of accounts
and other records reflecting the results of the operations of the Trust Property
and will furnish to Beneficiary on or before forty-five (45) days after the end
of each calendar quarter the following items, each certified by Trustor as being
true and correct: (i) a written statement (rent roll) dated as of the last day
of each such calendar quarter identifying each of the Leases by the term, space
occupied, rental required to be paid, security deposit paid, any rental
concessions, and identifying any defaults or payment delinquencies thereunder;
(ii) monthly and year to date operating statements prepared for each calendar
month during each such calendar quarter, noting Net Operating Income (as
hereinafter defined), Gross Income from Operations (as hereinafter defined), and
Operating Expenses (as hereinafter defined), and including an itemization of
actual (not pro forma) capital and other information necessary and sufficient
under generally accepted accounting practices to fairly represent the financial
position and results of operation of the Trust Property during such calendar
month, all in form satisfactory to Beneficiary; (iii) a property balance sheet
for each such calendar quarter; (iv) a comparison of the budgeted income and
expenses and the actual income and expenses for each calendar quarter and year
to date together with a detailed explanation of any variances of five percent
(5%) or more between budgeted and actual amounts for such quarterly periods and
year to date; and (v) a calculation reflecting the Debt Service Coverage Ratio
(as hereinafter defined) as of the last day of each such calendar quarter. Until
a Securitization has occurred, the Trustor shall furnish monthly each of the
items listed in the immediately preceding sentence within twenty (20) days after
the end of such month. Within one hundred twenty (120) days following the end of
each calendar year, Trustor shall furnish statements of its financial affairs
and condition including a balance sheet and a statement of profit and loss for
the Trustor in such detail as Beneficiary may request, and setting forth the
financial condition and the income and expenses for the Trust Property for the
immediately preceding calendar year, which statements shall be prepared by
Trustor. Trustor's annual financial statements

                                      -29-

<PAGE>

shall include (i) a list of the tenants, if any, occupying more than twenty
(20%) percent of the total floor area of the Improvements, and (ii) a breakdown
showing the year in which each Lease then in effect expires and the percentage
of total floor area of the Improvements and the percentage of base rent with
respect to which Leases shall expire in each such year, each such percentage to
be expressed on both a per year and a cumulative basis. Trustor's annual
financial statements shall be accompanied by a certificate executed by the chief
financial officer of Trustor or the general partner of Trustor, as applicable,
stating that each such annual financial statement presents fairly the financial
condition of the Trust Property being reported upon and shall be audited by a
"Big Six" accounting firm or other independent certified public account
acceptable to Beneficiary.] Each such annual financial statement shall be
prepared in accordance with generally accepted accounting principles
consistently applied. At any time and from time to time Trustor shall deliver to
Beneficiary or its agents such other financial data as Beneficiary or its agents
shall reasonably request with respect to the ownership, maintenance, use and
operation of the Trust Property.

                  (c) For the purposes of this Deed of Trust, the following
terms shall have the following meanings:

                      (i) The term "NET OPERATING INCOME" shall mean the amount
obtained by subtracting Operating Expenses from Gross Income from Operations.

                      (ii) The term "OPERATING EXPENSES" shall mean the total of
all expenditures, computed in accordance with generally accepted accounting
principles, of whatever kind relating to the operation, maintenance and
management of the Trust Property that are incurred on a regular monthly or other
periodic basis, including without limitation, utilities, ordinary repairs and
maintenance, insurance, license fees, property taxes and assessments,
advertising expenses, management fees, payroll and related taxes, computer
processing charges, operational equipment or other lease payments as approved by
Beneficiary, and other similar costs, but excluding depreciation, debt service,
capital expenditures, and contributions to the Replacement Escrow Fund, the Tax
and Insurance Impound Fund, and any other reserves required under the Loan
Documents.

                      (iii) The term "GROSS INCOME FROM OPERATIONS" shall mean
all income, computed in accordance with generally accepted accounting
principles, derived from the ownership and operation of the Trust Property from
whatever source, including, but not limited to, Rents, utility charges,
escalations, forfeited security deposits, interest on credit accounts, service
fees or charges, license fees, parking fees, rent concessions or credits, and
other pass-through or reimbursements paid by tenants under the Leases of any
nature but excluding sales, use and occupancy or other taxes on receipts
required to be accounted for by Trustor to any government or governmental
agency, refunds and uncollectible accounts, sales of furniture, fixtures and
equipment, proceeds of casualty insurance and condemnation awards (other than
business interruption or other loss of income insurance), and any disbursements
to the Trustor from the Tax and Insurance Impound Fund, the Replacement Escrow
Fund, the Rollover Escrow Fund, or any other escrow fund established by the Loan
Documents.

                                      -30-

<PAGE>

                      (iv) The term "DEBT SERVICE COVERAGE RATIO" shall mean a
ratio for the applicable period in which: (A) the numerator is the Net Operating
Income (excluding interest on credit accounts) for such period as set forth in
the statements required hereunder; and (B) the denominator is the aggregate
amount of principal and interest due and payable on the Note.

         19. PERFORMANCE OF OTHER AGREEMENTS. Trustor shall observe and perform
each and every term to be observed or performed by Trustor pursuant to the
terms of any agreement or recorded instrument affecting or pertaining to the
Trust Property.

         20. FURTHER ACTS, ETC. Trustor will, at the cost of Trustor, and
without expense to Beneficiary, do, execute, acknowledge and deliver all and
every such further acts, deeds, conveyances, mortgages, assignments, notices of
assignment, Uniform Commercial Code financing statements or continuation
statements, transfers and assurances as Beneficiary shall, from time to time,
require, for the better assuring, conveying, assigning, transferring, and
confirming unto Beneficiary the property and rights hereby deeded, mortgaged,
given, granted bargained, sold, alienated, enfeoffed, conveyed, confirmed,
pledged, assigned and hypothecated or intended now or hereafter so to be, or
which Trustor may be or may hereafter become bound to convey or assign to
Beneficiary, or for 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 or for facilitating the sale of the Loan and the Loan Documents as
described in Paragraph 20(b) below. Trustor, on demand, will execute and deliver
and hereby authorizes Beneficiary to execute in the name of Trustor or without
the signature of Trustor to the extent Beneficiary may lawfully do so, one or
more financing statements, chattel mortgages or other instruments, to evidence
more effectively the security interest of Beneficiary in the Trust Property.
Upon foreclosure, the appointment of a receiver or any other relevant action,
Trustor will, at the cost of Trustor and without expense to Beneficiary,
cooperate fully and completely to effect the assignment or transfer of any
license, permit, agreement or any other right necessary or useful to the
operation of or the Trust Property. Trustor grants to Beneficiary and Trustee an
irrevocable power of attorney coupled with an interest for the purpose of
exercising and perfecting any and all rights and remedies available to
Beneficiary and Trustee at law and in equity, including, without limitation,
such rights and remedies available to Beneficiary and Trustee pursuant to this
paragraph.

         21. RECORDING OF DEED OF TRUST, ETC. Trustor forthwith upon the
execution and delivery of this Deed of Trust and thereafter, from time to time,
will cause this Deed of Trust, and any security instrument creating a lien or
security interest or evidencing the lien hereof upon the Trust Property and each
instrument of further assurance to be filed, registered or recorded in such
manner and in such places as may be required by any present or future law in
order to publish notice of and fully to protect the lien or security interest
hereof upon, and the interest of Beneficiary in, the Trust Property. Trustor
will pay all filing, registration or recording fees, and all expenses incident
to the preparation, execution and acknowledgment of this Deed of Trust, any
deed of trust supplemental hereto, any security instrument with respect to the
Trust Property and any instrument of further assurance, and all federal, state,
county and municipal, taxes, duties, imposts, assessments and charges arising
out of or in connection

                                      -31-

<PAGE>

with the execution and delivery of this Deed of Trust, any deed of trust
supplemental hereto, any security instrument with respect to The Trust Property
or any instrument of further assurance, except where prohibited by law so to
do. Trustor shall hold harmless and indemnify Beneficiary, its successors and
assigns, against any liability incurred by reason of the imposition of any tax
on the making and recording of this Deed of Trust.

         22. REPORTING REQUIREMENTS. Trustor agrees to give prompt notice to
Beneficiary of the insolvency or bankruptcy filing of Trustor or the death,
insolvency or bankruptcy filing of any Guarantor.

         23. EVENTS OF DEFAULT. The Debt shall become immediately due and
payable at the option of Beneficiary upon the happening of any one or more of
the following events of default (each an "EVENT OF DEFAULT"):

             (a) if any portion of the Debt is not paid on or before the related
Payment Date or, for any payment other than a Monthly Payment Amount, the date
on which such payment is due;

             (b) subject to Trustor's right to contest as provided herein, if
any of the Taxes or Other Charges are not paid when the same are due and payable
(unless sums equaling the amount of Taxes and Other Charges then due and payable
have been delivered to Beneficiary in accordance with Paragraph 6 hereof);

             (c) if the Policies are not kept in full force and effect, or if
the Policies are not delivered to Beneficiary upon request;

             (d) if Trustor transfers or encumbers any portion of the Trust
Property without Beneficiary's prior written consent;

             (e) if any representation or warranty of Trustor, or of any
Guarantor, made herein or in any other Loan Document or in any certificate,
report, financial statement or other instrument or document furnished to
Beneficiary shall have been false or misleading in any material respect when
made;

             (f) if Trustor or any Guarantor shall make an assignment for the
benefit of creditors or if Trustor shall generally not be paying its debts as
they become due;

             (g) if a receiver, liquidator or trustee of Trustor or of any
Guarantor shall be appointed or if Trustor or any Guarantor shall be adjudicated
a bankrupt or insolvent, or if any petition for bankruptcy, reorganization or
arrangement pursuant to federal bankruptcy law, or any similar federal or state
law, shall be filed by or against, consented to, or acquiesced in by, Trustor or
any Guarantor or if any proceeding for the dissolution or liquidation of Trustor
or of any Guarantor shall be instituted; however, if such appointment,
adjudication, petition or proceeding was involuntary and not consented to by
Trustor or such Guarantor, upon the same not being discharged, stayed or
dismissed within sixty (60) days;

                                      -32-

<PAGE>

             (h) if Trustor shall be in default under any other deed of trust
or security agreement covering any part of the Trust Property whether it be
superior or junior in lien to this Deed of Trust;

             (i) subject to Trustor's right to contest as provided herein, if
the Trust Property becomes subject to any mechanic's, materialman's or other
lien and such lien is not removed of record within thirty (30) days of the
filing or recording of such lien (except a lien for local real estate taxes and
assessments not then due and payable);

             (j) if Trustor fails to cure properly any violations of laws or
ordinances affecting or which may be interpreted to affect the Trust Property
within thirty (30) days after Trustor first receives notice of any such
violations;

             (k) except as permitted in this Deed of Trust, the material
alteration, improvement, demolition or removal of any of the Improvements
without the prior consent of Beneficiary;

             (l) if Trustor shall continue to be in default under any term,
covenant, or provision of the Note or any of the other Loan Documents, beyond
applicable cure periods contained in those documents;

             (m) if Trustor fails to cure a default under any other term,
covenant or provision of this Deed of Trust within thirty (30) days after
Trustor first receives notice of any such default; provided, however, if such
default is reasonably susceptible of cure, but not within such thirty (30) day
period, then Trustor may be permitted up to an additional sixty (60) days to
cure such default provided that Trustor diligently and continuously pursues such
cure;

             (n) if without Beneficiary's prior written consent, (i) the
Management Agreement is terminated, (ii) the ownership, management or control of
Manager is transferred, (iii) there is a material change in the Management
Agreement, or (iv) if there shall be a material default by Trustor under the
Management Agreement; or

             (o) if Trustor ceases to continuously operate the Trust Property or
any material portion thereof as a shopping center for any reason whatsoever
(other than temporary cessation in connection with any repair or renovation
thereof undertaken with the consent of Beneficiary).

         24. LATE PAYMENT CHARGE. If any portion of the Debt is not paid on or
before the date on which such payment is due, Trustor shall pay to Beneficiary
upon demand an amount equal to the lesser of three percent (3%) of such unpaid
portion of the Debt or the maximum amount permitted by applicable law in order
to defray a portion of the expenses incurred by Beneficiary in handling and
processing such delinquent payment and to compensate Beneficiary for the loss of
the use of such delinquent payment, and such amount shall be secured by this
Deed of Trust.

                                      -33-

<PAGE>

         25. RIGHT TO CURE DEFAULTS. Upon the occurrence of any Event of Default
or if Trustor fails to make any payment (including, without limitation, any
required payments for taxes, insurance or to discharge any liens with respect to
the Property) or to do any act as herein provided, Beneficiary may, but
without any obligation to do so and without notice to or demand on Trustor and
without releasing Trustor from any obligation hereunder, make or do the same in
such manner and to such extent as Beneficiary may deem necessary to protect the
security hereof. Beneficiary is authorized to enter upon the Trust Property for
such purposes or appear in, defend, or bring any action or proceeding to protect
its interest in the Trust Property or to foreclose this Deed of Trust or collect
the Debt, and the cost and expense thereof (including reasonable attorneys' fees
and disbursements to the extent permitted by law), with interest at the Default
Rate (as defined in the Note) for the period after notice from Beneficiary that
such cost or expense was incurred to the date of payment to Beneficiary, shall
constitute a portion of the Debt, shall be secured by this Deed of Trust and the
other Loan Documents and shall be due and payable to Beneficiary upon demand.

         26. ADDITIONAL REMEDIES.

             (a) Upon the occurrence of any Event of Default, Beneficiary or
Trustee may take such action, without notice or demand, as it deems advisable to
protect and enforce its rights against Trustor and in and to the Trust Property
by Beneficiary itself or through Trustee or otherwise, including, without
limitation, the following actions, each of which may be pursued concurrently or
otherwise, at such time and in such order as Beneficiary may determine, in its
sole discretion, without impairing or otherwise affecting the other rights and
remedies of Beneficiary:

                 (i) declare the entire Debt to be immediately due and payable;

                 (ii) institute a proceeding or proceedings, judicial or
nonjudicial, by advertisement or otherwise, for the complete foreclosure of this
Deed of Trust in which case the Trust Property or any interest therein may be
sold for cash or upon credit in one or more parcels or in several interests or
portions and in any order or manner;

                 (iii) with or without entry, to the extent permitted and
pursuant to the procedures provided by applicable law, institute proceedings for
the partial foreclosure of this Deed of Trust for the portion of the Debt then
due and payable, subject to the continuing lien of this Deed of Trust for the
balance of the Debt not then due;

                 (iv) sell for cash or upon credit the Trust Property or any
part thereof and all estate, claim, demand, right, title and interest of Trustor
therein and rights of redemption thereof, pursuant to the power of sale
contained herein or otherwise, at one or more sales, as an entirety or in
parcels, at such time and place, upon such terms and after such notice thereof
as may be required or permitted by law;

                                      -34-
<PAGE>
                           (v) institute an action, suite or proceeding in
equity for the specific performance of any covenant, condition or agreement
contained herein, or in any of the other Loan Documents;

                           (vi) recover judgment on the Note either before,
during of after any proceedings for the enforcement of this Deed of Trust;

                           (vii) apply for the appointment of a trustee,
receiver, liquidator or conservator of the Trust Property, without notice and
without regard for the adequacy of the security for the Debt and without regard
for the solvency of the Trustor, any Guarantor or of any person, firm or other
entity liable for the payment of the Debt;

                           (viii) enforce Beneficiary's interest in the Leases
and Rents and enter into or upon the Trust Property, either personally or by its
agents, nominees or attorneys and dispossess Trustor and its agents and servants
therefrom, and thereupon Beneficiary may (A) use, operate, manager, control,
insure, maintain, repair, restore and otherwise deal with all and every part of
the Trust Property and conduct the business thereat; (B) complete any
construction on the Trust Property in such manner and form as Beneficiary deems
advisable; (C) make alterations, additions, renewals, replacements and
improvements to or on the Trust Property; (D) exercise all rights and powers of
Trustor with respect to the Trust Property, whether in the name of Trustor or
otherwise, including, without limitation, the right to make, cancel, enforce or
modify Leases, obtain and evict tenants, and demand, sue for, collect and
receive all Rents; and (E) apply the receipts from the Trust Property to the
payment of Debt, after deducting therefrom all expenses (including reasonable
attorneys' fees and disbursements) incurred in connection with the aforesaid
operations and all amounts necessary to pay the taxes, assessments insurance and
other charges in connection with the Trust Property, as well as just and
reasonable compensation for the services of Beneficiary, its counsel, agents and
employees;

                           (ix) require Trustor to pay monthly in advance to
Beneficiary, or any receiver appointed to collect the Rents, the fair and
reasonable rental value for the use and occupation of any portion of the Trust
Property occupied by Trustor and require Trustor to vacate and surrender
possession to Beneficiary of the Trust Property or to such receiver and, in
default thereof, evict Trustor by summary proceedings or otherwise; or

                           (x) pursue such other rights and remedies as may be
available at law or in equity or under the Uniform Commercial Code including
without limitation the right to receive and/or establish a lock box for all
Rents proceeds from the Intangibles and any other receivables or rights to
payments of Trustor relating to the Trust Property.

In the event of a sale, by foreclosure or otherwise, of less than all of the
Trust Property, this Deed of Trust shall continue as a lien on the remaining
portion of the Trust Property.

                  (b) The proceeds of any sale made under or by virtue of this
paragraph, together with any other sums which then may be held by Beneficiary
under this Deed of Trust, whether under the provisions of this paragraph or
otherwise, shall be applied

                                      -35-

<PAGE>

by Beneficiary to the payment of the Debt in such priority and proportion as
Beneficiary in its sole discretion shall deem proper.

                  (c) Beneficiary or Trustee may adjourn from time to time any
sale by it to be made under or by virtue of this Deed of Trust by announcement
at the time and place appointed for such sale or for such adjourned sale or
sales; and, except as otherwise provided by any applicable provision of law,
Beneficiary or Trustee, without further notice or publication, may make such
sale at the time and place to which the same shall be so adjourned.

                  (d) Upon the completion of any sale or sales pursuant hereto,
Beneficiary, or an officer of any court empowered to do so, shall execute and
deliver to the accepted purchaser or purchasers a good and sufficient
instrument, or good and sufficient instruments, conveying, assigning and
transferring all estate, right, title and interest in and to the property and
rights sold. Beneficiary and Trustee are hereby irrevocably appointed the true
and lawful attorney of Trustor, in its name and stead, to make all necessary
conveyances, assignments, transfers and deliveries of the Trust Property and
rights so sold and for that purpose Beneficiary and Trustee may execute all
necessary instruments of conveyance, assignment and transfer, and may substitute
one or more persons with like power, Trustor hereby ratifying and confirming all
that its said attorney or such substitute or substitutes shall lawfully do by
virtue hereof. Any sale or sales made under or by virtue of this paragraph,
whether made under the power of sale herein granted or under or by virtue of
judicial proceedings or of a judgment or decree of foreclosure and sale, shall
operate to divest all the estate, right, title, interest, claim and demand
whatsoever, whether at law or in equity, of Trustor in and to the properties and
rights so sold, and shall be a perpetual bar both at law and in equity against
Trustor and against any and all persons claiming or who may claim the same, or
any part thereof from, through or under Trustor.

                  (e) Upon any sale made under or by virtue of this paragraph,
whether made under the power of sale herein granted or under or by virtue of
judicial proceedings or of a judgment or decree of foreclosure and sale,
Beneficiary may bid for and acquire the Trust Property or any part thereof and
in lieu of paying cash therefor may make settlement for the purchase price by
crediting upon the Debt the net sales price after deducting therefrom the
expenses of the sale and costs of the action and any other sums which
Beneficiary is authorized to deduct under this Deed of Trust.

                  (f) No recovery of any judgment by Beneficiary and no levy of
an execution under any judgment upon the Trust Property or upon any other
property of Trustor shall affect in any manner or to any extent the lien of this
Deed of Trust upon the Trust Property or any part thereof, or any liens, rights,
powers or remedies of Beneficiary hereunder, but such liens, rights, powers and
remedies of Beneficiary shall continue unimpaired as before.

                  (g) Beneficiary may terminate or rescind any proceeding or
other action brought in connection with its exercise of the remedies provided in
this paragraph at any

                                      -36-
<PAGE>
time before the conclusion thereof, as determined in Beneficiary's sole
discretion and without prejudice to Beneficiary.

                  (h) Beneficiary or Trustee may resort to any remedies and the
security given by the Note, this Deed of Trust or the Loan Documents in whole or
in part, and in such portions and in such order as determined by Beneficiary's
sole discretion. No such action shall in any way be considered a waiver of any
rights, benefits or remedies evidenced or provided by the Note, this Deed of
Trust or any of the other Loan Documents. The failure of Beneficiary or Trustee
to exercise any right, remedy or option provided in the Note, this Deed of Trust
or any of the other Loan Documents shall not be deemed a waiver of such right,
remedy or option or of any covenant or obligation secured by the Note, this Deed
of Trust or the other Loan Documents. No acceptance by Beneficiary of any
payment after the occurrence of any Event of Default and no payment by
Beneficiary of any obligation for which Trustor is liable hereunder shall be
deemed to waive or cure any Event of Default with respect to Trustor, or
Trustor's liability to pay such obligation. No sale of all or any portion of the
Trust Property, no forbearance on the pan of Beneficiary or Trustee, and no
extension of time for the payment of the whole or any portion of the Debt or any
other indulgence given by Beneficiary or Trustee to Trustor, shall operate to
release or in any manner affect the interest of Beneficiary in the remaining
Trust Property or the liability of Trustor to pay the Debt. No waiver by
Beneficiary or Trustee shall be effective unless it is in writing and then only
to the extent specifically stated. All costs and expenses of Beneficiary and
Trustee in exercising the rights and remedies under this Paragraph 26 (including
reasonable attorneys' fees and disbursements to the extent permitted by law),
shall be paid by Trustor immediately upon notice from Beneficiary or Trustee,
with interest at the Default Rate for the period after notice from Beneficiary
or Trustee and such casts and expenses shall constitute a portion of the Debt
and shall be secured by this Deed of Trust.

                  (i) The interests and rights of Beneficiary under the Note,
this Deed of Trust or in any of the other Loan Documents shall not be impaired
by any indulgence, including (i) any renewal, extension or modification which
Beneficiary may grunt with respect to any of the Debt, (ii) any surrender,
compromise, release, renewal, extension, exchange or substitution which
Beneficiary may grant with respect to the Trust Property or any portion thereof;
or (iii) any release or indulgence granted to any maker, endorser, Guarantor or
surety of any of the Debt.

         27. RIGHT OF ENTRY. In addition to any other rights or remedies granted
under this Deed of Trust, Beneficiary, Trustee and their agents, during the
Term, shall have the right to enter and inspect the Trust Property during normal
business hours. The cost of such inspections or audits shall be borne by Trustor
should Beneficiary determine that an Event of Default exists, including the cost
of all follow up or additional investigations or inquiries deemed reasonably
necessary by Beneficiary. The cost of such inspections, if not paid for by
Trustor following demand, may be added to the principal balance of the sums due
under the Note and this Deed of Trust and shall bear interest thereafter until
paid at the Default Rate.

                                      -37-
<PAGE>

         28. SECURITY AGREEMENT

                  (a) This Deed of Trust is both a real property deed of trust
and a "security agreement" within the meaning of the Uniform Commercial Code.
The Trust Property includes both real and personal property and all other rights
and interests, whether tangible or intangible in nature, of Trustor in the Trust
Property. Trustor by executing and delivering this Deed of Trust has granted and
hereby grants to Beneficiary and Trustee, as security for the Debt, a security
interest in the Trust Property to the full extent that the Trust Property may be
subject to the Uniform Commercial Code (said portion of the Trust Property so
subject to the Uniform Commercial Code being called in this paragraph the
"COLLATERAL"). Trustor hereby agrees with Beneficiary to execute and deliver to
Beneficiary, in form and substance satisfactory to Beneficiary, such financing
statements and such further assurances as Beneficiary may from time to time,
reasonably consider necessary to create, perfect, and preserve Beneficiary's
security interest herein granted. This Deed of Trust shall also constitute a
"fixture filing" for the purposes of the Uniform Commercial Code. As such, this
Deed of Trust covers all items of the Collateral that are or are to become
fixtures. Information concerning the security interest herein granted may be
obtained from the parties at the addresses of the parties set forth in the first
paragraph of this Deed of Trust.

                  (b) If an Event of Default shall occur, Beneficiary and
Trustee, in addition to any other rights and remedies which it may have, shall
have and may exercise immediately and without demand, any and all rights and
remedies granted to a secured party upon default under the Uniform Commercial
Code, including, without limiting the generality of the foregoing, the right to
take possession of the Collateral or any part thereof, and to take such other
measures as Beneficiary or Trustee may deem necessary for the care, protection
and preservation of the Collateral. Upon request or demand of Beneficiary or
Trustee, Trustor shall at its expense assemble the Collateral and make it
available to Beneficiary and Trustee at a convenient place acceptable to
Beneficiary. Trustor shall pay to Beneficiary and Trustee on demand any and all
expenses, including attorneys' fees and disbursements, incurred or paid by
Beneficiary and Trustee in protecting the interest in the Collateral and in
enforcing the rights hereunder with respect to the Collateral. Any notice of
sale, disposition or other intended action by Beneficiary and Trustee with
respect to the Collateral sent to Trustor in accordance with the provisions
hereof at least five (5) days prior to such action, shall constitute
commercially reasonable notice to Trustor. The proceeds of any disposition of
the Collateral, or any part thereof, may be applied by Beneficiary to the
payment of the Debt in such priority and proportions as Beneficiary in its sole
discretion shall deem proper. In the event of any change in name, identity or
structure of any Trustor, such Trustor shall notify Beneficiary and Trustee
thereof and promptly after request shall execute, file and record such Uniform
Commercial Code forms as are necessary to maintain the priority of Beneficiary's
lien upon and security interest in the Collateral, and shall pay all expenses
and fees in connection with the filing and recording thereof. If Beneficiary
shall require the filing or recording of additional Uniform Commercial Code
forms or continuation statements, Trustor shall, promptly after request,
execute, file and record such Uniform Commercial Code forms or continuation
statements as Beneficiary shall deem necessary, and shall pay all expenses and
fees in connection with the filing and recording thereof, it being understood
and agreed,

                                      -38-
<PAGE>

however, that no such additional documents shall increase Trustor's obligations
under the Note, this Deed of Trust and any of the other Loan Documents. Trustor
hereby irrevocably appoints Beneficiary as its attorney-in-fact, coupled with
an interest, to file with the appropriate public office on its behalf any
financing or other statements signed only by Beneficiary, as secured party, in
connection with the Collateral covered by this Deed of Trust.

         29. ACTIONS AND PROCEEDINGS. Beneficiary or Trustee has the right to
appear in and defend any action or proceeding brought with respect to the Trust
Property and to bring any action or proceeding, in the name and on behalf of
Trustor, which Beneficiary, in its sole discretion, decides should be brought to
protect its interest in the Trust Property. Beneficiary shall, at its option, be
subrogated to the lien of any deed of trust or other security instrument
discharged in whole or in part by the Debt, and any such subrogation rights
shall constitute additional security for the payment of the Debt.

         30. WAIVER OF SETOFF AND COUNTERCLAIM. All amounts due under this Deed
of Trust, the Note and the other Loan Documents shall be payable without setoff,
counterclaim or any deduction whatsoever. Trustor hereby waives the right to
assert a setoff, counterclaim (other than a mandatory or compulsory
counterclaim) or deduction in any action or proceeding in which Beneficiary or
Trustee is a participant, or arising out of or in any way connected with this
Deed of Trust, the Note, any of the other Loan Documents, or the Debt.

         31. CONTEST OF CERTAIN CLAIMS. Notwithstanding the provisions of
Paragraphs 5 and 23 hereof, Trustor shall not be in default for failure to pay
or discharge Taxes, Other Charges or mechanic's or materialman's lien asserted
against the Trust Property if, and so long as, (a) Trustor shall have notified
Beneficiary of same within five (5) days of obtaining knowledge thereof; (b)
Trustor shall diligently and in good faith contest the same by appropriate legal
proceedings which shall operate to prevent the enforcement or collection of the
same and the sale of the Trust Property or any part thereof, to satisfy the
same; (c) Trustor shall have furnished to Beneficiary a cash deposit, or an
indemnity bond satisfactory to Beneficiary with a surety reasonably satisfactory
to Beneficiary, in an amount equal to 125% of the amount of the Taxes, Other
Charges or mechanic's or materialman's lien claim, plus a reasonable additional
sum to pay all costs, interest and penalties that may be imposed or incurred in
connection therewith, to assure payment of the matters under contest and to
prevent any sale or forfeiture of the Trust Property or any part thereof; (d)
Trustor shall promptly upon final determination thereof pay the amount of any
such Taxes, Other Charges or claim so determined, together with all costs,
interest and penalties which may be payable in connection therewith; (e) the
failure to pay the Taxes, Other Charges or mechanic's or materialman's lien
claim does not constitute a default under any other deed of trust, mortgage or
security interest covering or affecting any part of the Trust Property; and (f)
notwithstanding the foregoing, Trustor shall immediately upon request of
Beneficiary pay (and if Trustor shall fail so to do, Beneficiary may, but shall
not be required to, pay or cause to be discharged or bonded against) any such
Taxes, Other Charges or claim notwithstanding such contest, if in the opinion of
Beneficiary, the Trust Property or any part thereof or interest therein may be
in danger of being sold, forfeited, foreclosed, terminated, cancelled or lost.
Beneficiary may pay over any such cash deposit or part thereof to the claimant
entitled thereto

                                      -39-
<PAGE>

at any time when, in the judgment of Beneficiary, the entitlement of such
claimant is established.

         32. RECOVERY OF SUMS REQUIRED TO BE PAID. Beneficiary shall have the
right from time to time to take action to recover any sum or sums which
constitute a part of the Debt as the same become due, without regard to whether
or not the balance of the Debt shall be due, and without prejudice to the right
of Beneficiary or Trustee thereafter to bring an action of foreclosure, or any
other action, for a default or defaults by Trustor existing at the time such
earlier action was commenced.

         33. MARSHALLING AND OTHER MATTERS. Trustor hereby waives, to the extent
permitted by law, the benefit of all appraisement, valuation, stay, extension,
reinstatement and redemption laws now or hereafter in force and all rights of
marshalling in the event of any sale hereunder of the Trust Property or any part
thereof or any interest therein. Further, Trustor hereby expressly waives any
and all rights of redemption from sale under any order or decree of foreclosure
of this Deed of Trust on behalf of Trustor, and on behalf of each and every
person acquiring any interest in or title to the Trust Property subsequent to
the date of this Deed of Trust and on behalf of all persons to the extent
permitted by applicable law.

         34. HAZARDOUS SUBSTANCES. Trustor hereby represents and warrants to
Beneficiary that, to the best of Trustor's knowledge, after due inquiry and
investigation except as disclosed in the report dated December 19, 1997,
prepared by KTR Environmental Services, Inc. (the "PHASE I REPORT") and
delivered to Beneficiary in connection with the Loan: (a) the Trust Property is
not in direct or indirect violation of any local, state, federal or other
governmental authority, statute, ordinance, code, order, decree, law, rule or
regulation pertaining to or imposing liability or standards of conduct
concerning environmental regulation, contamination or clean-up including,
without limitation, the Comprehensive Environmental Response, Compensation and
Liability Act, as amended ("CERCLA"), the Resource Conservation and Recovery
Act, as amended ("RCRA"), the Emergency Planning and Community Right-to-Know Act
of 1986, as amended, the Hazardous Substances Transportation Act, as amended,
the Solid Waste Disposal Act, as amended, the Clean Water Act, as amended, the
Clean Air Act, as amended, the Toxic Substance Control Act, as amended, the Safe
Drinking Water Act, as amended, the Occupational Safety and Health Act, as
amended, any state super-lien and environmental clean-up statutes and all rules
and regulations adopted in respect to the foregoing laws whether presently in
force or coming into being and/or effectiveness hereafter (collectively,
"ENVIRONMENTAL LAWS"); (b) the Trust Property is not subject to any private or
governmental lien or judicial or administrative notice or action or inquiry,
investigation or claim relating to hazardous and/or toxic, dangerous and/or
regulated, substances, wastes, materials, raw materials which include hazardous
constituents, pollutants or contaminants including without limitation,
petroleum, tremolite, anthlophylie, actinolite or polychlorinated biphenyls and
any other substances or materials which are included under or regulated by
Environmental Laws or which are considered by scientific opinion to be otherwise
dangerous in terms of the health, safety and welfare of humans (collectively,
"HAZARDOUS SUBSTANCES"); (c) no Hazardous Substances are or have been (including
the period prior to Trustor's acquisition of the Trust Property) discharged,

                                      -40-
<PAGE>

generated, treated, disposed of or stored on, incorporated in, or removed or
transported from the Trust Property other than in compliance with all
Environmental Laws; (d) no Hazardous Substances are present in, on or under any
nearby real property which could migrate to or otherwise affect the Trust
Property; and (e) no underground storage tanks exist on any of the Trust
Property. So long as Trustor owns or is in possession of the Trust Property,
Trustor (i) shall keep or cause the Trust Property to be kept free from
Hazardous Substances and in compliance with all Environmental Laws, (ii) shall
promptly notify Beneficiary if Trustor shall become aware of any Hazardous
Substances on or near the Trust Property and/or if Trustor shall become aware
that the Trust Property is in direct or indirect violation of any Environmental
Laws and/or if Trustor shall become aware of any condition on or near the Trust
Property which shall pose a threat to the health, safety or welfare of humans,
and (iii) Trustor shall remove such Hazardous Substances and/or cure such
violations and/or remove such threats, as applicable, as required by law (or as
shall be required by Beneficiary in the case of removal which is not required by
law, but in response to the opinion of a licensed hydrogeologist, licensed
environmental engineer or other qualified consultant engaged by Beneficiary
("BENEFICIARY'S CONSULTANT")), promptly after Trustor becomes aware of same, at
Trustor's sole expense. Notwithstanding anything to the contrary in this
paragraph, the Trustor may use and store immaterial amounts of Hazardous
Substances at the Trust Property if such use or storage is in connection with
the ordinary cleaning and maintenance of the Trust Property so long as such use
and storage (A) does not violate any applicable Environmental Laws and (B) is
not the subject of any specific recommendations in the Phase I Report. Nothing
herein shall prevent Trustor from recovering such expenses from any other party
that may be liable for such removal or cure. The obligations and liabilities of
Trustor under this Paragraph 34 shall survive any termination, satisfaction, or
assignment of this Deed of Trust and the exercise by Beneficiary of any of its
rights or remedies hereunder, including, without limitation, the acquisition of
the Trust Property by foreclosure or a conveyance in lieu of foreclosure.

         35. ASBESTOS. Trustor represents and warrants that, to the best of
Trustor's knowledge, after due inquiry and investigation, no asbestos or any
substance or material containing asbestos ("ASBESTOS") is located on the Trust
Property except as may have been disclosed in the Phase I Report delivered to
Beneficiary in connection with the Loan. Trustor shall not install in the Trust
Property, nor permit to be installed in the Trust Property, Asbestos and shall
remove any Asbestos promptly upon discovery to the satisfaction of Beneficiary,
at Trustor's sole expense. Trustor shall in all instances comply with, and
ensure compliance by all occupants of the Trust Property with, all applicable
federal, state and local laws, ordinances, rules and regulations with respect
to Asbestos, and shall keep the Trust Property free and clear of any liens
imposed pursuant to such laws, ordinances, rules or regulations. In the event
that Trustor receives any notice or advice from any governmental agency or any
source whatsoever with respect to Asbestos on, affecting or installed on the
Trust Property, Trustor shall immediately notify Beneficiary. The obligations
and liabilities of Trustor under this Paragraph 35 shall survive any
termination, satisfaction, or assignment of this Deed of Trust and the exercise
by Beneficiary of any of its rights or remedies hereunder, including but not
limited to, the acquisition of the Trust Property by foreclosure or a conveyance
in lieu of foreclosure.

                                      -41-
<PAGE>

         36. ENVIRONMENTAL MONITORING. Trustor shall give prompt written notices
to Beneficiary of: (a) any proceeding or inquiry by any party with respect to
the presence of any Hazardous Substance or Asbestos on, under, from or about the
Trust Property, (b) all claims made or threatened by any third party against
Trustor or the Trust Property relating to any loss or injury resulting from any
Hazardous Substance or Asbestos, and (c) Trustor's discovery of any occurrence
or condition on any real property adjoining or in the vicinity of the Trust
Property that could cause the Trust Property to be subject to any investigation
or cleanup pursuant to any Environmental Law. Trustor shall permit Beneficiary
to join and participate in, as a party if it so elects, any legal proceedings or
actions initiated with respect to the Trust Property in connection with any
Environmental Law or Hazardous Substance, and Trustor shall pay all attorneys'
fees and disbursements incurred by Beneficiary in connection therewith. Upon
Beneficiary's request, at any time and from time to time while this Deed of
Trust is in effect but not more frequently than once per calendar year, unless
Beneficiary has determined (in the exercise of its good faith judgment) that
reasonable cause exists for the performance of an environmental inspection or
audit of the Trust Property, Trustor shall provide at Trustor's sole expense,
(i) an inspection or audit of the Trust Property prepared by a licensed
hydrogeologist or licensed environmental engineer approved by Beneficiary
indicating the presence or absence of Hazardous Substances on, in or near the
Trust Property, and (ii) an inspection or audit of the Trust Property prepared
by a duly qualified engineering or consulting firm approved by Beneficiary,
indicating the presence or absence of Asbestos on the Trust Property; provided,
however, any such inspection or audit requested by Beneficiary, during the Term,
in excess of one (1) inspection during each five (5) year period commencing upon
the date hereof, shall be performed at Beneficiary's expense unless an Event of
Default exists or Beneficiary has determined (in the exercise of its good faith
and judgment) that reasonable cause exists for the performance of an
environmental inspection or audit. If Trustor fails to provide such inspection
or audit within thirty (30) days after such request Beneficiary may order same,
and Trustor hereby grants to Beneficiary and its employees and agents access to
the Trust Property and a license to undertake such inspection or audit. The cost
of such inspection or audit may be added to the Debt and shall bear interest
thereafter until paid at the Default Rate. In the event that any environmental
site assessment report prepared in connection with such inspection or audit
recommends that an operations and maintenance plan be implemented for Asbestos
or any Hazardous Substance, Trustor shall cause such operations and maintenance
plan to be prepared and implemented at Trustor's expense upon request of
Beneficiary. In the event that any investigation, site monitoring, containment
cleanup, removal, restoration, or other work of any kind is reasonably necessary
or desirable under an applicable Environmental Law (the "REMEDIAL WORK"),
Trustor shall commence and thereafter diligently prosecute to completion all
such Remedial Work within thirty (30) days after written demand by Beneficiary
for performance thereof (or any such shorter period of time as may be required
under applicable law.) All Remedial Work shall be performed by contractors
approved in advance by Beneficiary, and under the supervision of a consulting
engineer approved by Beneficiary. All costs and expenses of such Remedial Work
shall be paid by Trustor including, without limitation, Beneficiary's reasonable
attorneys' fees and disbursements incurred in connection with monitoring or
review of such Remedial Work. In the event Trustor shall fail to timely
commence, or cause to be commenced, or fail to

                                      -42-
<PAGE>

diligently prosecute to completion, such Remedial Work, Beneficiary may, but
shall not be required to, cause such Remedial Work to be performed, and all
costs and expenses thereof, or incurred in connection therewith, may be added to
the Debt and shall bear interest thereafter until paid at the Default Rate.

         37. HANDICAPPED ACCESS.

                  (a) Trustor agrees that the Trust Property shall at all times
strictly comply to the extent applicable with the requirements of the Americans
with Disabilities Act of 1990, the Fair Housing Amendments Act of 1988 (if
applicable), all state and local laws and ordinances related to handicapped
access and all rules, regulations, and orders issued pursuant thereto including,
without limitation, the Americans with Disabilities Act Accessibility Guidelines
for Buildings and Facilities (collectively "ACCESS LAWS").

                  (b) Notwithstanding any provisions set forth herein or in any
other document regarding Beneficiary's approval of alterations of the Trust
Property, Trustor shall not alter the Trust Property in any manner which would
increase Trustor's responsibilities for compliance with the applicable Access
Laws without the prior written approval of Beneficiary. The foregoing shall
apply to tenant improvements constructed by Trustor or by any of its tenants.
Beneficiary may condition any such approval upon receipt of a certificate of
Access Law compliance from an architect, engineer, or other person acceptable to
Beneficiary.

                  (c) Trustor agrees to give prompt notice to Beneficiary of the
receipt by Trustor of any complaints related to violation of any Access Laws and
of the commencement of any proceedings or investigations which relate to
compliance with applicable Access Laws.

         38. INDEMNIFICATION. In addition to any other indemnifications
provided herein or in the other Loan Documents, Trustor shall protect, defend,
indemnify and save harmless Beneficiary and Trustee from and against all
liabilities, obligations, claims, demands, damages, penalties, causes of action,
losses, fines, costs and expenses (including, without limitation, reasonable
attorneys' fees and disbursements), imposed upon or incurred by or asserted
against Beneficiary or Trustee by reason of (a) ownership of this Deed of
Trust, the Trust Property or any interest therein or receipt of any Rents; (b)
any accident, injury to or death of persons or loss of or damage to property
occurring in, on or about the Trust Property or any part thereof or on the
adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets
or ways; (c) any use, nonuse or condition in, on or about the Trust Property or
any part thereof or on adjoining sidewalks, curbs, adjacent property or adjacent
parking areas, streets or ways; (d) any failure on the part of Trustor or
Trustee to perform or comply with any of the terms of this Deed of Trust; (e)
performance of any labor or services or the furnishing of any materials or other
property in respect of the Trust Property or any part thereof; (f) the presence,
disposal, escape, seepage, leakage, spillage, discharge, emission, release, or
threatened release of any Hazardous Substance or Asbestos on, from, or affecting
the Trust Property; (g) any personal injury (including wrongful death) or
property damage (real or personal) arising out of or related to such Hazardous
Substance or Asbestos; (h) any

                                      -43-
<PAGE>

lawsuit brought or threatened, settlement reached, or government order relating
to such Hazardous Substance or Asbestos; (i) any violation of the Environmental
Laws, which are based upon or in any way related to such Hazardous Substance or
Asbestos including, without limitation, the costs and expenses of any Remedial
Work, attorney and consultant fees and disbursements, investigation and
laboratory fees, court costs, and litigation expenses; (j) any failure of the
Trust Property to comply with any Access Laws; (k) any representation or
warranty made in the Note, this Deed of Trust or any of the other Loan Documents
being false or misleading in any material respect as of the date such
representation or warranty was made; (l) any claim by brokers, finders or
similar persons claiming to be entitled to a commission in connection with the
Loan, any Lease or other transaction involving the Trust Property or any part
thereof under any legal requirement or any liability asserted against
Beneficiary with respect thereto; and (m) the claims of any lessee of any or any
portion of the Trust Property or any person acting through or under any lessee
or otherwise arising under or as a consequence of any Lease. Any amounts payable
to Beneficiary or Trustee by reason of the application of this paragraph shall
be secured by this Deed of Trust and shall become immediately due and payable
and shall bear interest at the Default Rate from the date loss or damage is
sustained by Beneficiary or Trustee until paid. The obligations and liabilities
of Trustor under this Paragraph 38 shall survive and termination, satisfaction,
or assignment of this Deed of Trust and the exercise by Beneficiary of any of
its rights or remedies hereunder, including, but not limited to, the acquisition
of the Trust Property by foreclosure or a conveyance in lieu of foreclosure.

         39. NOTICES. Any notice, demand, statement, request or consent made
hereunder shall be in writing, addressed to the address, as set forth above, of
the party to whom such notice is to be given, or to such other address as
Trustor, Beneficiary or Trustee, as the case may be, shall designate in writing,
and shall be deemed to be received by the addressee on (i) the day such notice
is personally delivered to such addressee, (ii) the third (3rd) day following
the day such notice is deposited with the United States postal service first
class certified mail, return receipt requested, (iii) the day following the day
on which such notice is delivered to a nationally recognized overnight courier
delivery service, or (iv) the day facsimile transmission is confirmed after
transmission of such notice by telecopy to such telecopier number as Trustor,
Trustee or Beneficiary, as the case may be, shall have previously designated in
writing.

         40. AUTHORITY.

                  (a) Trustor (and the undersigned representative of Trustor, if
any) represent and warrant that it (or they, as the case may be) has full power,
authority and right to execute, deliver and perform its obligations pursuant to
this Deed of Trust, and to deed, mortgage, give, grant, bargain, sell, alien,
enfeoff, convey, confirm, warrant, pledge, hypothecate and assign the Trust
Property pursuant to the terms hereof and to keep and observe all of the terms
of this Deed of Trust on Trustor's part to be performed.

                                      -44-
<PAGE>
                  (b) Trustor represents and warrants that Trustor is not a
"foreign person" within the meaning of Section 1445(f)(3) of the Internal
Revenue Code of 1986, as amended and the related Treasury Department
regulations, including temporary regulations.

         41. WAIVER OF NOTICE. Trustor shall not be entitled to any notices of
any nature whatsoever from Beneficiary or Trustee except with respect to matters
for which this Deed of Trust specifically and expressly provides for the giving
of notice by Beneficiary or Trustee to Trustor and except with respect to
matters for which Beneficiary or Trustee is required by applicable law to give
notice, and Trustor hereby expressly waives the right to receive any notice from
Beneficiary or Trustee with respect to any matter for which this Deed of Trust
does not specifically and expressly provide for the giving of notice by
Beneficiary or Trustee to Trustor.

         42. REMEDIES OF TRUSTOR. In the event that a claim or adjudication is
made that Beneficiary has acted unreasonably or unreasonably delayed acting in
any case where by law or under the Note, this Deed of Trust or any of the other
Loan Documents, it has an obligation to act reasonably or promptly, neither
Beneficiary nor Trustee shall be liable for any monetary damages, and Trustor's
remedies shall be limited to injunctive relief or declaratory judgment.

         43. SOLE DISCRETION OF BENEFICIARY. Wherever pursuant to this Deed of
Trust, Beneficiary exercises any right given to it to consent or not consent or
approve or disapprove, or any arrangement or term is to be satisfactory to
Beneficiary, the decision of Beneficiary to consent or not consent, to approve
or disapprove or to decide that arrangements or terms are satisfactory or not
satisfactory shall be in the sole discretion of Beneficiary and shall be final
and conclusive, except as may be otherwise expressly and specifically provided
herein.

         44. NON-WAIVER. The failure of Beneficiary or Trustee to insist upon
strict performance of any term hereof shall not be deemed to be a waiver of any
term of this Deed of Trust. Trustor shall not be relieved of Trustor's
obligations hereunder by reason of (a) the failure of Beneficiary or Trustee to
comply with any request of Trustor or Guarantor to take any action to foreclose
this Deed of Trust or otherwise enforce any of the provisions hereof or of the
Note, or the other Loan Documents, (b) the release, regardless of consideration,
of the whole or any part of the Trust Property, or of any person liable for the
Debt or any portion thereof, or (c) any agreement or stipulation by Beneficiary
extending the time of payment or otherwise modifying or supplementing the terms
of the Note, this Deed of Trust or any of the other Loan Documents. Beneficiary
may resort for the payment of the Debt to any other security held by Beneficiary
in such order and manner as Beneficiary, in its sole discretion, may elect.
Beneficiary or Trustee may take action to recover the Debt, or any portion
thereof, or to enforce any covenant hereof without prejudice to the right of
Beneficiary or Trustee thereafter to foreclosure this Deed of Trust. The rights
and remedies of Beneficiary or Trustee under this Deed of Trust shall be
separate, distinct and cumulative and none shall be given effect to the
exclusion of the others. No act of Beneficiary or Trustee shall be construed as
an election to proceed under any one provision herein to the exclusion of any
other provision.

                                      -45-

<PAGE>
Beneficiary and Trustee shall not be limited exclusively to the rights and
remedies herein stated but shall be entitled to every right and remedy now or
hereafter afforded at law or in equity.

         45. NO ORAL CHANGE. This Deed of Trust, and any provisions hereof, may
not be modified, amended, waived, extended, changed, discharged or terminated
orally or by any act or failure to act on the part of Trustor or Beneficiary,
but only by an agreement in writing signed by the party against whom enforcement
of any modification, amendment, waiver, extension, change, discharge or
termination is sought.

         46. LIABILITY. If Trustor consists of more than one person, the
obligations and liabilities of each such person hereunder shall be joint and
several. Subject to the provisions hereof requiring Beneficiary's consent to any
transfer of the Trust Property, this Deed of Trust shall be binding upon and
inure to the benefit of Trustor and Beneficiary and their respective successors
and assigns forever.

         47. INAPPLICABLE PROVISIONS. If any term, covenant or condition of the
Note or this Deed of Trust is held to be invalid, illegal or unenforceable in
any respect, the Note and this Deed of Trust shall be construed without such
provision.

         48. HEADINGS, ETC. The headings and captions of various paragraphs of
this Deed of Trust are for convenience of reference only and are not to be
construed as defining or limiting, in any way, the scope or intent of the
provisions hereof.

         49. DUPLICATE ORIGINALS. This Deed of Trust may be executed in any
number of duplicate originals and each such duplicate original shall be deemed
to be an original.

         50. DEFINITIONS. Unless the context clearly indicates a contrary intent
or unless otherwise specifically provided herein, words used in this Deed of
Trust may be used interchangeably in singular or plural form and the word
"TRUSTOR" shall mean "each Trustor and any subsequent owner or owners of the
Trust Property or any part thereof or any interest therein," the ward
"BENEFICIARY" shall mean "Beneficiary and any subsequent holder of the Note,"
the word "TRUSTEE" shall mean "Trustee and any subsequent holder of this Deed of
Trust," the word "NOTE" shall mean "the Note and any other evidence of
indebtedness secured by this Deed of Trust," the word "PERSON" shall include an
individual, corporation, partnership, trust, unincorporated association,
government, governmental authority, and any other entity, and the words "TRUST
PROPERTY" shall include any portion of the Trust Property and any interest
therein and the words "ATTORNEYS' FEES" shall include any and all attorneys'
fees, paralegal and law clerk fees, including, without limitation, fees at the
pre-trial, trial and appellate levels incurred or paid by Beneficiary in
protecting its interest in the Trust Property and Collateral and enforcing its
rights hereunder. Whenever the context may require, any pronouns used herein
shall include the corresponding masculine, feminine or neuter forms, and the
singular form of nouns and pronouns shall include the plural and vice versa.

                                      -46-

<PAGE>

         51. HOMESTEAD. Trustor hereby waives and renounces all homestead and
exemption rights provided by the Constitution and the laws of the United States
and of any state, in and to the Trust Property as against the collection of the
Debt, or any part hereof.

         52. ASSIGNMENTS. Beneficiary shall have the right to assign or transfer
its rights under this Deed of Trust without limitation. Any assignee or
transferee shall be entitled to all the benefits afforded Beneficiary under this
Deed of Trust.

         53. WAIVER OF JURY TRIAL. TRUSTOR HEREBY AGREES NOT TO ELECT A TRIAL BY
JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY
JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH
REGARD TO THE NOTE, THIS DEED OF TRUST, OR THE OTHER LOAN DOCUMENTS, OR ANY
CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER
OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY TRUSTOR, AND IS
INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE
RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. BENEFICIARY IS HEREBY
AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE
EVIDENCE OF THIS WAIVER BY TRUSTOR.

         54. TRUSTEE'S FEES; SUBSTITUTE TRUSTEE.

                  (a) Trustor shall pay all costs, fees and expenses incurred by
Trustee and Trustee's agents and counsel in connection with the performance by
Trustee of Trustee's duties hereunder and all such costs, fees and expenses
shall be secured by this Deed of Trust.

                  (b) Trustee shall be under no duty to take any action
hereunder except as expressly required hereunder or by law, or to perform any
act which would involve Trustee in any expense or liability or to institute or
defend any suit in respect hereof, unless properly indemnified to Trustee's
reasonable satisfaction. Trustee, by acceptance of this Deed of Trust, covenants
to perform and fulfill the trusts herein created, being liable, however, only
for willful negligence or misconduct, and hereby waives any statutory fee and
agrees to accept reasonable compensation, in lieu thereof, for any services
rendered by Trustee in accordance with the terms hereof. Trustee may resign at
any time upon giving thirty (30) days' notice to Trustor and to Beneficiary.
Beneficiary may remove Trustee at any time or from time to time and select a
successor trustee. In the event of the death, removal, resignation, refusal to
act, or inability to act of Trustee, or in its sole discretion for any reason
whatsoever, Beneficiary may, without notice and without specifying any reason
therefor and without applying to any court, select and appoint a successor
trustee, by an instrument recorded wherever this Deed of Trust is recorded and
all powers, rights, duties and authority of Trustee, as aforesaid, shall
thereupon become vested in such successor. Such substitute trustee shall not be
required to give bond for the faithful performance of the duties of Trustee
hereunder unless required by Beneficiary. The procedure provided for in this
paragraph for substitution of Trustee shall be

                                      -47-
<PAGE>
in addition to and not in exclusion of any other provisions for substitution, by
law or otherwise.

         55. POWER OF SALE.

                  (a) Upon the occurrence of an Event of Default, Trustee, or
the agent or successor of Trustee, at the request of Beneficiary, shall sell or
offer for sale the Trust Property in such portions, order and parcels as
Beneficiary may determine with or without having first taken possession of same,
to the highest bidder for cash at one or more public auctions in accordance with
the terms and provisions of the law of the State in which the Trust Property is
located. Such sale shall be made at the area within the courthouse of the county
in which the Trust Property (or any portion thereof to be sold) is situated
(whether the parts or parcels thereof, if any, in different counties are
contiguous or not, and without the necessity of having any personal property
hereby secured present at such sale) which is designated by the applicable court
of such County as the area in which public sales are to take place, or, if no
such area is designated, at the area at the courthouse designated in the notice
of sale as the area in which the sale will take place, on such day and at such
times as permitted under applicable law of the State where the Trust Property is
located, after advertising the time, place and terms of sale and that portion of
the Trust Property in accordance with such law, and after having served written
or printed notice of the proposed sale by certified mail on each Trustor
obligated to pay the Note and other secured indebtedness secured by this Deed of
Trust according to the records of Beneficiary in accordance with applicable law.
The affidavit of any person having knowledge of the facts to the effect that
such service was completed shall be prima facie evidence of the fact of service.

                  At any such public sale, Trustee may execute and deliver in
the name of Trustor to the purchaser a conveyance of the Trust Property or any
part of the Trust Property in fee simple. In the event of any sale under this
Deed of Trust by virtue of the exercise of the powers herein granted, or
pursuant to any order in any judicial proceeding or otherwise, the Trust
Property may be sold in its entirety or in separate parcels and in such manner
or order as Beneficiary in its sole discretion may elect, and if Beneficiary so
elects, Trustee may sell the personal property covered by this Deed of Trust at
one or more separate sales in any manner permitted by the Uniform Commercial
Code of the State in which the Trust Property is located, and one or more
exercises of the powers herein granted shall not extinguish or exhaust such
powers, until all the Trust Property is sold or the Note and other secured
indebtedness is paid in full. If the Note and other secured indebtedness is now
or hereafter further secured by any chattel Deed of Trusts, pledges, contracts
or guaranty, assignments of lease, or other security instruments, Beneficiary at
its option may exhaust the remedies granted under any of said security
instruments either concurrently or independently, and in such order as
Beneficiary may determine.

                  (b) Upon any foreclosure sale or sales of all or any portion
of the Trust Property under the power herein granted, Beneficiary may bid for
and purchase the Trust Property and shall be entitled to apply all or any part
of the Debt as a credit to the purchase price.

                                      -48-

<PAGE>

                  (c) In the event of a foreclosure or a sale of all or any
portion of the Trust Property under the power herein granted, the proceeds of
said sale shall be applied, in whatever order Beneficiary in its sole discretion
may decide, to the expenses of such sale and of all proceedings in connection
therewith (including, without limitation, attorneys' fees and expenses), to fees
and expenses of Trustee (including, without limitation, Trustee's attorneys'
fees and expenses), to insurance premiums, liens, assessments, taxes and charges
(including, without limitation, utility charges advanced by Beneficiary), to
payment of the outstanding principal balance of the Debt, and to the accrued
interest on all of the foregoing; and the remainder, if any, shall be paid to
Trustor, or to the person or entity lawfully entitled thereto.

         56. RECOURSE PROVISIONS. Subject to the qualifications below,
Beneficiary shall not enforce the liability and obligation of Trustor, to
perform and observe the obligations contained in this Deed of Trust, the Note or
any of the other Loan Documents by any action or proceeding wherein a money
judgment shall be sought against Trustor, except that Beneficiary may bring a
foreclosure action, an action for specific performance or any other appropriate
action or proceeding to enable Beneficiary to enforce and realize upon its
interests under the Note, this Deed of Trust or the other Loan Documents or in
the Trust Property, the Rents or any other collateral given to Beneficiary
pursuant to this Deed of Trust and the other Loan Documents; provided, however,
that, except as specifically provided herein, any judgment in any such action or
proceeding shall be enforceable against Trustor only to the extent of Trustor's
interest in the Trust Property, the Rents and in any other collateral given to
Beneficiary, and Beneficiary, by accepting this Deed of Trust, the Note and the
other Loan Documents, agrees that it shall not sue for, seek or demand any
deficiency judgment against Trustor in any such action or proceeding under or by
reason of or in connection with this Deed of Trust, the Note or any of the other
Loan Documents. The provisions of this paragraph shall not, however, (i)
constitute a waiver, release or impairment of any obligation evidenced or
secured by this Deed of Trust, the Note or any of the other Loan Documents; (ii)
impair the right of Beneficiary to name Trustor, as a party defendant in any
action or suit for foreclosure and sale under this Deed of Trust; (iii) affect
the validity or enforceability of any guaranty made in connection with the Loan
or any rights and remedies of Beneficiary thereunder; (iv) impair the right of
Beneficiary to obtain the appointment of a receiver; (v) impair the enforcement
of the Assignment of Leases and Rents executed in connection herewith; or (vi)
constitute a waiver of the right of Beneficiary to enforce the liability and
obligation of Trustor, by money judgment or otherwise, to the extent of any
loss, damage, cost, expense, liability, claim or other obligation incurred by
Beneficiary (including attorneys' fees and costs reasonably incurred) arising
out of or in connection with the following:

                  (a) fraud or intentional misrepresentation by Trustor or any
Guarantor in connection with the Loan;

                  (b) the gross negligence or willful misconduct of Trustor;

                  (c) physical waste of the Trust Property;

                                      -49-
<PAGE>
                  (d) the breach of any representation, warranty, covenant or
indemnification provision in that certain Environmental and Hazardous Substance
Indemnification Agreement of even date herewith given by Trustor to Beneficiary
or in this Deed of Trust concerning Environmental Laws, Hazardous Substances and
Asbestos;

                  (e) the removal or disposal of any portion of the Trust
Property after an Event of Default;

                  (f) the misapplication or conversion by Trustor of (i) any
insurance proceeds paid by reason of any loss, damage or destruction to the
Trust Property, (ii) any awards or other amounts received in connection with the
condemnation of all or a portion of the Trust Property, (iii) any Rents
following an Event of Default or (iv) any Rents paid more than one month in
advance;

                  (g) failure to pay charges for labor or materials or taxes or
other charges that can create liens on any portion of the Trust Property; and

                  (h) any security deposits collected with respect to the Trust
Property which are not delivered to Beneficiary upon a foreclosure of the Trust
Property or action in lieu thereof, except to the extent any such security
deposits were applied in accordance with the terms and conditions of any of the
Leases prior to the occurrence of the Event of Default that gave rise to such
foreclosure or action in lieu thereof.

         Notwithstanding anything to the contrary in any of the Loan Documents
(i) Beneficiary shall not be deemed to have waived any right which Beneficiary
may have under Section 506(a), 506(b), 1111(b) or any other provisions of the
U.S. Bankruptcy Code to file a claim for the full amount of the Debt secured by
this Deed of Trust or to require that all collateral shall continue to secure
all of the Debt owing to Beneficiary in accordance with the Loan Documents, and
(ii) the Debt shall become fully recourse to Trustor in the event that: (A) the
first full monthly payment of principal and interest under the Note is not paid
when due; (B) Trustor fails to maintain its status as a single purpose entity in
accordance with the provisions of this Deed of Trust; (C) Trustor fails to
obtain Beneficiary's prior written consent to any subordinate financing or other
voluntary lien encumbering the Trust Property; (D) Trustor fails to obtain
Beneficiary's prior written consent to any assignment, transfer, or conveyance
of the Trust Property or any interest therein as required by this Deed of Trust;
(E) a receiver, liquidator or trustee of Trustor or the Guarantor shall be
appointed or if Trustor or the Guarantor shall be adjudicated a bankrupt or
insolvent, or if any petition for bankruptcy, reorganization or arrangement
pursuant to federal bankruptcy, reorganization or arrangement pursuant to
federal bankruptcy law, or any similar federal or state law, shall be filed by,
consented to, or acquiesced in by, Trustor or the Guarantor or if any proceeding
for the dissolution or liquidation of Trustor or the Guarantor shall be
instituted; or (F) Trustor, any guarantor or any of their respective affiliates
or agents hinders, delays or interferes with the exercise by Trustee or
Beneficiary of any of its rights or remedies under the Loan Documents after the
occurrence and continuance of an Event of Default.

                                      -50-

<PAGE>

         57. DEFEASANCE.

                  (a) Provided no Event of Default has occurred and is
continuing, at any time after the date which (i) is two years after the "startup
day," within the meaning of Section 860G(a)(9) of the Internal Revenue Code of
1986, as amended from time to time or any successor statute (the "Code"), of a
"real estate mortgage investment conduit," within the meaning of Section 860D
of the Code, that holds the Note or (ii) is four years after the date hereof,
whichever shall first occur, and before the Anticipated Repayment Date, Trustor
may cause the release of the Trust Property from the lien of this Deed of Trust
and the other Loan Documents upon the satisfaction of the following conditions:

                  (i) not less than thirty (30) days prior written notice shall
         be given to Trustee and Beneficiary specifying a date (the "RELEASE
         DATE") on which the Defeasance Collateral (as hereinafter defined) is
         to be delivered, such Release Date only to occur on a Payment Date (as
         defined in the Note);

                  (ii) all accrued and unpaid interest and all other sums due
         under the Note and under the other Loan Documents up to the Release
         Date, including, without limitation, all costs and expenses incurred by
         Beneficiary or its agents in connection with such release (including,
         without limitation, the fees and expenses incurred by attorneys and
         accountants in connection with the review of the proposed Defeasance
         Collateral and the preparation of the Defeasance Security Agreement (as
         hereinafter defined) and related documentation), shall be paid in full
         on or prior to the Release Date; and

                  (iii) Trustor shall deliver to Beneficiary on or prior to the
         Release Date:

                  (A)      an amount equal to the remaining principal amount of
                           the Note and the Yield Maintenance Premium
                           (hereinafter defined), if any, sufficient to purchase
                           direct, non-callable obligations of the United States
                           of America that provide for payments prior, but as
                           close as possible, to all successive monthly Payment
                           Dates occurring after the Release Date and assuming
                           the Loan is paid in full on the Anticipated Repayment
                           Date, with each such payment being equal to or
                           greater than the amount of the corresponding
                           installment of principal, interest and, if
                           applicable, the fee of the Servicer required to be
                           paid hereunder and/or under the Note (the "DEFEASANCE
                           COLLATERAL"), each of which shall be duly endorsed by
                           the holder thereof as directed by Beneficiary or
                           accompanied by a written instrument of transfer in
                           form and substance wholly satisfactory to Beneficiary
                           (including, without limitation, such instruments as
                           may be required by the depository institution holding
                           such securities to effectuate book-entry transfers
                           and pledges through the book-entry facilities of such
                           institution) in order to create a first priority
                           security interest therein in favor of the Beneficiary
                           in conformity with all applicable state and federal
                           laws governing granting of such security interests;

                                      -51-

<PAGE>
                  (B)      a pledge and security agreement, in form and
                           substance satisfactory to Beneficiary in its sole
                           discretion, creating a first priority security
                           interest in favor of Beneficiary in the Defeasance
                           Collateral (the "DEFEASANCE SECURITY AGREEMENT"),
                           which shall provide, among other things, that any
                           excess received by Beneficiary from the Defeasance
                           Collateral over the amounts payable by Trustor
                           hereunder shall be refunded to Trustor promptly after
                           each Payment Date;

                  (C)      a certificate of Trustor certifying that all of the
                           requirements set forth in this Paragraph 57 have been
                           satisfied;

                  (D)      an opinion of counsel for Trustor in form and
                           substance and delivered by counsel satisfactory to
                           Beneficiary in its sole discretion stating, among
                           other things, that (1) Beneficiary has a perfected
                           first priority security interest in the Defeasance
                           Collateral and that the Defeasance Security Agreement
                           is enforceable against Trustor in accordance with its
                           terms; and (2) that any REMIC Trust formed pursuant
                           to a securitization will not fail to maintain its
                           status as a "real estate mortgage investment conduit"
                           within the meaning of Section 860D of the Code as a
                           result of such defeasance;

                  (E)      Trustor shall deliver evidence in writing from the
                           applicable Rating Agencies to the effect that the
                           collateral substitution will not result in a
                           downgrading, withdrawal or qualification of the
                           respective ratings in effect immediately prior to
                           such defeasance event for any securities issued in
                           connection with the securitization which are then
                           outstanding;

                  (F)      a certificate from a firm of independent public
                           accountants acceptable to Beneficiary certifying that
                           the Defeasance Collateral is sufficient to satisfy
                           the provisions of paragraph A above; and

                  (G)      such other certificates, documents or instruments as
                           Beneficiary may reasonably require.

                  (b) Upon compliance with the requirements of this paragraph,
the Trust Property shall be released from the lien of the this Deed of Trust and
the other Loan Documents, and the Defeasance Collateral shall constitute the
only collateral which shall secure the Note and all other obligations under the
Loan Documents. Beneficiary will, at Trustor's expense, execute and deliver any
agreements reasonably requested by Trustor to release the lien of the Deed of
Trust from the Trust Property. Trustor, pursuant to the Defeasance Security

                                      -52-

<PAGE>

Agreement, shall authorize and direct that the payments received from Defeasance
Collateral be made directly to Beneficiary and applied to satisfy the
obligations of the Trustor under the Note.

                  (c) Upon the release of the Trust Property in accordance with
this paragraph, Trustor may (or at the option of Beneficiary, shall) assign all
its obligations under the Note, together with the pledged Defeasance Collateral,
to a successor entity designated by Trustor and approved by Beneficiary in its
sole discretion. Such successor entity shall execute an assumption agreement in
form and substance satisfactory to Beneficiary in its sole discretion pursuant
to which it shall assume Trustor's obligations under the Note and the Defeasance
Security Agreement. As conditions to such assignment and assumption, Trustor
shall (i) deliver to Beneficiary an opinion of counsel in form and substance and
delivered by counsel satisfactory to Beneficiary in its sole discretion stating,
among other things, that such assumption agreement is enforceable against
Trustor and such successor entity in accordance with its terms and that the
Note, the Defeasance Security Agreement and the other Loan Documents, as so
assumed, are enforceable against such successor entity in accordance with their
respective terms, and (ii) pay all costs and expenses incurred by Beneficiary or
its agents in connection with such assignment and assumption (including, without
limitation, the review of the proposed transferee and the preparation of the
assumption agreement and related documentation). Upon such assumption, Trustor
shall be relieved of its obligations hereunder, under the other Loan Documents
and under the Defeasance Security Agreement other than those obligations which
are specifically intended to survive the termination; satisfaction or assignment
of this Deed of Trust or the exercise of Beneficiary's rights and remedies
hereunder.

                  (d) Upon the release of the Trust Property in accordance with
this paragraph, Trustor shall have no further right to prepay the Note pursuant
to the other provisions of this paragraph or otherwise. In connection with the
conditions set forth in subparagraph (a)(iii)(A) above, Trustor hereby appoints
Beneficiary as its agent and attorney-in-fact for the purpose of purchasing the
Defeasance Collateral with funds provided by the Trustor. Trustor shall pay any
and all expenses incurred in the purchase of the Defeasance Collateral and any
revenue, documentary stamp or intangible taxes or any other tax or charge due in
connection with the transfer of the Note or otherwise required to accomplish the
agreements of this paragraph.

                  (e) For purposes of this Deed of Trust the Note and the other
Loan Documents, the term "YIELD MAINTENANCE PREMIUM" shall mean the amount, if
any, which, when added to the remaining principal amount of the Note, will be
sufficient to purchase the Defeasance Collateral.

         58. CASH MANAGEMENT AGREEMENT. On or before the date hereof Trustor
covenants and agrees to enter into one or more servicing account agreements and
lockbox servicing agreements acceptable to Beneficiary between Trustor, Manager,
Beneficiary and one or more certain financial institutions (together with any
modification, amendment, substitution or replacement thereof, hereinafter
collectively referred to as the "CASH MANAGEMENT AGREEMENT"). During any Sweep
Period, all Rents shall be applied as set forth in the Cash Management Agreement
and the escrows and reserves required hereunder shall be

                                      -53-
<PAGE>

funded as provided therein. The Trustor shall pay all costs and expenses
required under the Cash Management Agreement. Upon the occurrence of an Event of
Default, Beneficiary may apply any sums then held pursuant to the Cash
Management Agreement to the payment of the Debt in any order in its sole
discretion. Until expended or applied, amounts held pursuant to the Cash
Management Agreement shall constitute additional security for the Debt.

         59. MISCELLANEOUS.

                  (a) Any consent or approval by Beneficiary in any single
instance shall not be deemed or construed to be Beneficiary's consent or
approval in any like matter arising at a subsequent date, and the failure of
Beneficiary to promptly exercise any right, power, remedy, consent or approval
provided herein or at law or in equity shall not constitute or be construed as a
waiver of the same nor shall Beneficiary be estopped from exercising such right,
power, remedy, consent or approval at a later date. Any consent or approval
requested of and granted by Beneficiary pursuant hereto shall be narrowly
construed to be applicable only to Trustor and the matter identified in such
consent or approval and no third parry shall claim any benefit by reason
thereof, and any such consent or approval shall not be deemed to constitute
Beneficiary a venturer or partner with Trustor nor shall privity, of contract be
presumed to have been established with any such third party. If Beneficiary
deems it to be in its best interest to retain assistance of persons, firms or
corporations (including, without limitation, attorneys, title insurance
companies, appraisers, engineers and surveyors) with respect to a request for
consent or approval, Trustor shall reimburse Beneficiary for all costs
reasonably incurred in connection with the employment of such persons, firms or
corporations.

                  (b) Trustor covenants and agrees that during the Term, unless
Beneficiary shall have previously consented in writing, (a) Trustor will take no
action that would cause it to become an "EMPLOYEE BENEFIT PLAN" as defined in 29
C.F.R. Section 2510.3-101, or "ASSETS OF A GOVERNMENTAL PLAN" subject to
regulation under the state statutes, and (b) Trustor will not sell, assign or
transfer the Trust Property, or any portion thereof or interest therein, to any
transferee that does not execute and deliver to Beneficiary its written
assumption of the obligations of this covenant. Trustor further covenants and
agrees to protect, defend, indemnify and hold Beneficiary harmless from and
against all loss, cost, damage and expense (including without limitation, all
attorneys' fees and excise taxes, costs of correcting any prohibited transaction
or obtaining an appropriate exemption) that Beneficiary may incur as a result of
Trustor's breach of this covenant. This covenant and indemnity shall survive the
extinguishment of the lien of this Deed of Trust by foreclosure or action in
lieu thereof; furthermore, the foregoing indemnity shall supersede any
limitations on Trustor's liability under any of the Loan Documents.

                  (c) If there is more than one party comprising Trustor then
the obligations and liabilities of each party under this Deed of Trust shall be
joint and several.

                  (d) The Loan Documents contain the entire agreement between
Trustor and Beneficiary relating to or connected with the Loan. Any other
agreements relating

                                      -54-

<PAGE>
to or connected with the Loan not expressly set forth in the Loan Documents are
null and void and superseded in their entirety by the provisions of the Loan
Documents.

                  (e) Trustor hereby covenants and agrees not to commit, permit
or suffer to exist any act, omission or circumstance affording such right of
forfeiture. In furtherance thereof, Trustor hereby indemnifies Beneficiary and
agrees to defend and hold Beneficiary harmless from and against any loss, damage
or injury by reason of the breach of the covenants and agreements or the
representations and warranties set forth in this paragraph. Without limiting the
generality of the foregoing, the filing of formal charges or the commencement of
proceedings against Trustor or all or any part of the Trust Property under any
federal or state law for which forfeiture of the Trust Property or any part
thereof or of any monies paid in performance of Trustor's obligations under the
Loan Documents is a potential result, shall, at the election of Beneficiary,
constitute an Event of Default hereunder without notice or opportunity to cure.

                  (f) Trustor acknowledges that, with respect to the Loan,
Trustor is relying solely on its own judgment and advisors in entering into the
Loan without relying in any manner on any statements, representations or
recommendations of Beneficiary or any parent, subsidiary or affiliate of
Beneficiary. Trustor acknowledges that Beneficiary engages in the business of
real estate financings and other real estate transactions and investments which
may be viewed as adverse to or competitive with the business of the Trustor or
its affiliates. Trustor acknowledges that it is represented by competent counsel
and has consulted counsel before executing the Loan Documents.

                  (g) Trustor covenants and agrees to pay Beneficiary upon
receipt of written notice from Beneficiary, all reasonable costs and expenses
(including reasonable attorneys' fees and disbursements) incurred by Beneficiary
in connection with (i) the preparation, negotiation, execution and delivery of
this Deed of Trust and the other Loan Documents; (ii) Trustor's performance of
and compliance with Trustor's respective agreements and covenants contained in
this Deed of Trust and the other Loan Documents on its part to be performed or
complied with after the date hereof; (iii) Beneficiary's performance and
compliance with all agreements and conditions contained in this Deed of Trust
and the other Loan Documents on its part to be performed or complied with after
the date hereof; (iv) the negotiation, preparation, execution, delivery and
administration of any consents, amendments, waivers or other modifications to
this Deed of Trust and the other Loan Documents; and (v) the filing and
recording fees and expenses, title insurance fees and expenses, and other
similar expenses incurred in creating and perfecting the lien in favor of
Beneficiary pursuant to this Deed of Trust and the other Loan Documents.

                  (h) This Deed of Trust shall be governed by and construed in
accordance with the laws of the State in which the Premises are located and the
applicable laws of the United States of America.

                                      -55-

<PAGE>

             60. MANAGEMENT OF THE TRUST PROPERTY.

                 Trustor shall maintain the Management Agreement for the
operation of the Trust Property in full force and effect and timely perform all
of Trustor's obligations thereunder and enforce performance of all obligations
of the Manager thereunder, and not permit the termination or amendment of such
Management Agreement unless the prior written consent of Beneficiary is first
obtained. Trustor will enter into and cause the Manager to enter into an
assignment and subordination of such Management Agreement in form satisfactory
to Beneficiary, assigning and subordinating the Manager's interest in the Trust
Property and all fees and other rights of the manager pursuant to such
Management Agreement to the rights of Beneficiary. Upon an Event of Default,
Trustor at Beneficiary's request made at any time while such Event of Default
continues, shall terminate the Management Agreement and replace the Manager with
a Manager approved by Beneficiary. In addition, if within forty-five (45) days
before the end of each calendar quarter the Trustor does not provide evidence of
the achievement of a Debt Service Coverage Ratio of not less than 1.15 to 1 (the
"REQUIRED DSCR") Trustor, at Beneficiary's request made at any time such
Required DSCR is not maintained, shall terminate the Management Agreement and
replace the Manager with Manager approved by Beneficiary.

             61. SALE OF NOTES AND SECURITIZATION.

                 Trustor acknowledges that Beneficiary and its successors and
assigns may (i) sell this Deed of Trust, the Note and other Loan Documents to
one or more investors as a whole loan, (ii) participate the Loan secured by this
Deed of Trust to one or more investors, (iii) deposit this Deed of Trust, the
Note and other Loan Documents with a trust, which trust may sell certificates to
investors evidencing an ownership interest in the trust assets, or (iv)
otherwise sell the Loan or interest therein to investors (the transactions
referred to in clauses (i) through (iv) are hereinafter each referred to as
"SECONDARY MARKET TRANSACTION"). Trustor shall cooperate with Beneficiary in
effecting any such Secondary Market Transaction and shall cooperate to implement
all requirements imposed by any Rating Agency involved in any Secondary Market
Transaction. Trustor, however, shall not be required to modify any documents
evidencing or securing the Loan which would modify (A) the interest rate payable
under the Note, (B) the stated maturity of the Note, (C) the amortization of
principal of the Note, (D) the non-recourse provisions of the Loan or (E) any
other material economic term of the Loan. Trustor shall provide such
information, legal opinions and documents relating to Trustor, Guarantor, if
any, the Trust Property and any tenants of the Improvements as Beneficiary may
reasonably request in connection with such Secondary Market Transaction. In
addition, Trustor shall make available to Beneficiary all information
concerning its business and operations that Beneficiary may reasonably request.
Beneficiary shall be permitted to share all such information with the investment
banking firms, Rating Agencies, accounting firms, law firms and other
third-party advisory firms involved with the Loan and the Loan Documents or the
applicable Secondary Market Transaction. It is understood that the information
provided by Trustor to Beneficiary may ultimately be incorporated into the
offering documents for the Secondary Market Transaction and thus various
investors may also see some or all of the information. Beneficiary and all of
the

                                      -56-

<PAGE>

aforesaid third-party advisors and professional firms shall be entitled to rely
on the information supplied by, or on behalf of, Trustor and Trustor indemnifies
Beneficiary as to any losses, claims, damages or liabilities that arise out of
or are based upon any untrue statement or alleged untrue statement of any
material fact contained in such information or arise out of or are based upon
the omission or alleged omission to state therein a material fact required to be
stated in such information or necessary in order to make the statements in such
information, or in light of the circumstances under which they were made, not
misleading. Beneficiary may publicize the existence of the Loan in connection
with its marketing for a Secondary Market Transaction or otherwise as part of
its business development.

             62. SERVICER. At the option of Beneficiary, the Loan may be
serviced by a servicer/trustee (the "SERVICER") selected by Beneficiary and
Beneficiary may delegate all or any portion of its responsibilities under this
Deed of Trust and the other Loan Documents to the Servicer pursuant to a
servicing agreement (the "SERVICING AGREEMENT") between Beneficiary and
Servicer. Trustor shall be responsible for any reasonable set-up fees or any
other initial costs relating to or arising under the Servicing Agreement and
shall be responsible for payment of the set-up costs and monthly servicing fee
due to the Servicer under the Servicing Agreement, not to exceed 10 basis points
per annum on the outstanding principal balance of the Loan.

                                      -57-

<PAGE>

                                     PART II

                          MARYLAND SPECIFIC PROVISIONS

             63. PRINCIPLES OF CONSTRUCTION. In the event of any inconsistencies
between the terms and provisions of Part I and Part II of this Deed of Trust,
the terms and provisions of Part II shall govern and control.

             64. MARYLAND.

                 (a) Financing Statement. This Deed of Trust shall also be
effective as a financing statement covering minerals or the like (including oil
and gas) and accounts subject to Subsection (3) of Section 9-103 of the Maryland
Uniform Commercial Code, as amended, and similar provisions (if any) of the
Uniform Commercial Code as enacted in any other state where the Trust Estate is
situated which will be financed at the wellhead or minehead of the wells or
mines located on the Trust Estate and is to be filed for record in the real
estate records of each county where any part of the Trust Estate is situated.
This Deed of Trust shall also be effective as a financing statement covering any
other property and may be filed in any other appropriate filing or recording
office.

                 (b) Release. If and when Grantor has paid all of the
Obligations, as the same becomes due and payable, and all of the covenants,
warranties, undertakings and agreements in this Deed of Trust are kept and
performed, and all obligations, if any, of Beneficiary for future advances have
been terminated, then, and in that event only, all rights under this Deed of
Trust shall terminate (except to the extent expressly provided herein with
respect to indemnifications, representations and warranties and other rights
which are to continue following the release hereof), and the Trustee, upon
request by Beneficiary, will provide a release of this Deed of Trust to Grantor.
Grantor shall be responsible for the recordation of such release and payment of
any recording costs associated therewith.

                 (c) Rights and Remedies of Trustee.

                 (i) In addition to any other rights available at law or in
         equity, following an Event of Default hereunder, Trustee may take
         possession of and sell the Trust Estate, or any part thereof requested
         by Beneficiary to be sold, and in connection therewith Grantor hereby
         (A) assents to the passage of a decree for the sale of the Trust Estate
         by the equity court having jurisdiction, and (B) authorizes and
         empowers Trustee to take possession of and sell (or in case of the
         default of any purchaser to resell) the Trust Estate, or any part
         thereof, all in accordance with the laws or rules of court of the State
         of Maryland relating to deeds of trust, including any amendments
         thereof, or additions thereto, which do not materially change or impair
         the remedy. In connection with any foreclosure, Beneficiary and/or
         Trustee may (y) procure such title reports, surveys, tax histories and
         appraisals as they deem necessary, and (z) make such repairs and
         additions to the Trust Estate as they deem advisable, subject to the
         terms and provisions contained in the Lease, all of which shall
         constitute Expenses (hereinafter defined). In the case of any sale
         under this Deed of Trust, by virtue of judicial

                                      -58-

<PAGE>

         proceedings or otherwise, the Trust Estate may be sold as an entirety
         or in parcels, by one sale or by several sales, and any fixtures or
         collateral encumbered by this Deed of Trust may be sold at the same
         sale as the Trust Estate or in one or more sales, as may be deemed by
         Trustee to be appropriate and without regard to any right of Grantor
         any other person to the marshalling of assets, for cash, on credit or
         for other property, for immediate or future delivery, and for such
         price or prices and on such terms having first given such notice prior
         to the sale of such time, place and terms by publication in at least
         one newspaper published or having general circulation in the county or
         counties in which the Trust Estate is located or at such time or times
         as may be required by the laws of the State of Maryland or rule of
         court of the State of Maryland, and such other times and by such other
         methods, if any, as Trustee, in its sole discretion, shall deem
         advantageous and proper. "Expenses" means all costs and expenses of any
         nature whatsoever incurred at any time and from time to time (whether
         before or after an Event of Default) by Beneficiary or Trustee in
         exercising or enforcing any rights, powers and remedies provided in
         this Deed of Trust or any of the other Loan Documents, including,
         without limitation, attorneys' fees, court costs, receivers' fees,
         management fees and costs incurred in the repair, maintenance and
         operation of, or taking possession of the Trust Estate, subject to the
         terms and provisions contained in the Lease as to the costs for
         maintenance and repair, or selling, the Trust Estate.

                 (ii) Any sale hereunder may be made at public auction, at such
         time or times, at such place or places, and upon such terms and
         conditions and after such previous public notice as Trustee shall deem
         appropriate and advantageous and as required by the laws of the State
         of Maryland.

                 (iii) Upon the terms of such sale being complied with, Trustee
         shall convey to, and at the cost of, the purchaser or purchasers the
         interest of Grantor in the Trust Estate so sold, free and discharged of
         and from all estate, title or interest of Grantor, at law or in equity,
         such purchaser or purchasers being hereby discharged from all liability
         to see to the application of the purchase money.

                 (iv) Beneficiary and any affiliate thereof may be a purchaser
         of the Trust Estate or of any part thereof or of any interest therein
         at any public sale thereof, whether pursuant to foreclosure or power of
         sale or otherwise hereunder, without forfeiting its right to collect
         any deficiency from Grantor; and Beneficiary may apply upon the
         purchase price the Obligations secured hereby owing to Beneficiary.
         Beneficiary, upon any such purchase, shall acquire good title to the
         properties so purchased, free of the lien of this Deed of Trust and
         free of all rights of redemption in Grantor and free of all liens and
         encumbrances subordinate to this Deed of Trust.

             (d) Application of Foreclosure Sale Proceeds. The proceeds of such
sale or sales under this Deed of Trust, whether under the assent to a decree,
the power of sale, or by equitable foreclosure, shall be held by Trustee and
applied as follows: FIRST (A) all Expenses incurred in connection with such sale
or in preparing the Trust Estate for such sale and of obtaining possession
including, among other things, counsel fees reasonably incurred

                                      -59-

<PAGE>

         shall be allowed and paid out of the proceeds of such sale or sales as
         the court having jurisdiction may deem proper, (B) the Trustee's
         Commission (hereinafter defined) and expenses and (C) all taxes levies,
         assessments or other charges relating to the Trust Estate which have or
         in the opinion of Trustee may have, priority over the lien of this Deed
         of Trust, including the pro rata portion thereof applicable to the
         taxable period during which any payment is made pursuant to this
         subsection; SECOND, to pay all of the Obligations and all interest then
         due and accrued thereon, which shall include interest through the date
         of ratification of the auditor's account; THIRD, to pay the amount of
         any liens of record inferior to this Deed of Trust, together with
         lawful interest, and lawful claims of third parties against the
         proceeds of any sale; and LASTLY, to pay the surplus, if any, to
         Grantor or any person or entity entitled thereto unless otherwise
         required by law or directed by a court of competent jurisdiction. In
         the event that the proceeds of any such sale or sales, together with
         all other monies at the time held by Trustee under this Deed of Trust,
         are insufficient to pay the foregoing costs and expenses, Beneficiary
         may, at its sole option, advance such sums as Beneficiary in its sole
         and absolute discretion shall determine for the purpose of paying all
         or any part of such costs and expenses, and all such sums so advanced
         shall be (A) a lien against the Trust Estate, (B) added to the amount
         due under the Note and secured by this Deed of Trust, and (C) payable
         on demand with interest at the rate of interest applicable to the
         principal balance of the Note, from and including the date each such
         advance is made. In any event, Grantor shall be liable to Beneficiary
         for any deficiency if the proceeds of any such sale or sales are
         insufficient to pay, in full, all amounts to be distributed pursuant to
         the FIRST clause above. Grantor shall pay to Trustee a commission in
         the amount of two and one half percent (2.5%) of the then-outstanding
         debt secured hereby if the Trust Estate is advertised for sale under
         the provisions of this Deed of Trust and is not sold, and the Grantor
         shall also pay or reimburse Trustee for all of Trustee's expenses and
         disbursements hereunder regardless of whether the Trust Estate is sold
         (the "Trustee's Commission").

             65. CROSS-DEFAULT; CROSS-COLLATERALIZATION; WAIVER OF MARSHALING OF
ASSETS.

             (a) Trustor acknowledges that Beneficiary has made the Loan to
Trustor upon the security of its collective interest in the Trust Property and
in various other "Trust Properties" described in the three other Deeds of Trust
(collectively the "Deeds of Trust" and all of the Trust Property described in
the Deeds of Trust is hereinafter the "Properties") simultaneously delivered by
Trustor to or for the benefit of Beneficiary and in reliance upon the aggregate
of the Properties taken together being of greater value as collateral security
than the sum of such Properties taken separately. Trustor agrees that the Deeds
of Trust are and will be cross-collateralized and cross-defaulted with each
other so that (i) an Event of Default under any of the Deeds of Trust shall
constitute an Event of Default under each of the other Deeds of Trust which
together secure the Note; (ii) an Event of Default under the Note shall
constitute an Event of Default under each Deed of Trust; and (iii) each Deed of
Trust shall constitute security for the Note as if a single blanket lien were
placed on all of the Properties as security for the Note.

                                      -60-

<PAGE>

             (b) To the fullest extent permitted by law, Trustor, for itself and
its successors and assigns, waives all rights to a marshaling of the assets of
Trustor, Trustor's partners and others with interests in Trustor, and of the
Properties, or to a sale in inverse order of alienation in the event of
foreclosure of all or any of the Deeds of Trust, and agrees not to assert any
right under any laws pertaining to the marshaling of assets, the sale in inverse
order of alienation, homestead exemption, the administration of estates of
decedents, or any other matters whatsoever to defeat, reduce or affect the
right of Beneficiary under the Loan Documents to a sale of the Properties for
the collection of the Indebtedness without any prior or different resort for
collection or of the right of Beneficiary to the payment of the Indebtedness out
of the net proceeds of the Properties in preference to every other claimant
whatsoever. In addition, Trustor, for itself and its successors and assigns,
waives (to the extent permitted by law) in the event of foreclosure of any or
all of the Deeds of Trust, any equitable right otherwise available to Trustor
which would require the separate sale of the Properties or require Beneficiary
to exhaust its remedies against any individual Property or any combination of
the Properties before proceeding against any other individual Property or
combination of Properties; and further in the event of such foreclosure Trustor
does hereby expressly consent to and authorize, at the option of the
Beneficiary, the foreclosure and sale either separately or together of any
combination of the Properties.

                                      -61-

<PAGE>

             IN WITNESS WHEREOF, Trustor has executed this instrument the day
and year first above written.

                          TRUSTOR:

                               FPR HOLDINGS LIMITED PARTNERSHIP,
                                    a Delaware limited partnership

                               By:  FPR-GP HOLDINGS. Inc.,
                                    a Delaware corporation,
                                    General Partner

                                    By: /s/ DOUGLAS J. DONATELLI
                                        ----------------------------------------
                                        Name:  Douglas J. Donatelli
                                        Title: President

<PAGE>

                                 ACKNOWLEDGMENT

STATE OF NEW YORK         )
                          )    TO WIT:
COUNTY OF NEW YORK        )

         I, Frank S. Caiazzo, a Notary Public in and for the State and County
aforesaid, do hereby certify that Douglas J. Donatelli, the President of
FPR-GP HOLDINGS, INC., a Delaware corporation, the general partner of
FPR HOLDINGS LIMITED PARTNERSHIP, a Delaware limited partnership, being
authorized to do so, has executed the foregoing and annexed document on behalf
of the limited partnership as the act and deed of said general partnership for
the purposes therein contained by signing the name of said corporation as the
authorized general partner thereof.

GIVEN UNDER MY HAND AND OFFICIAL SEAL this 22nd day of December, 1997.

                                        /s/ FRANK S. CAIAZZO
                                -------------------------------------
                                           Notary Public

                                          Frank S. Caiazzo
                                 Notary Public, State of New York
                                          No. 43-4777178
                                    Qualified in Richmond County
                                 Certificate filed New York County
                                Commission Expires March 30, 1998

<PAGE>

                                    EXHIBIT A

All that certain lot or parcel of land situate and lying in Howard County,
Maryland, and more particularly described as follows:

Parcel M-1 as shown on plat entitled "Revision Plat Meadowridge Business Park,
Parcels K-1 and M-1; A Resubdivision of Parcels K, M and O Meadowridge Business
Park Sheet 4 of 7 record plat 9044" which Plat is recorded among the Land
Records of Howard County as Plat No. 9179.

Tax ID. No.: 01-233645

<PAGE>

                             ATTORNEY'S CERTIFICATE

         I HEREBY CERTIFY that the within instrument was prepared by or under
the supervision of the undersigned, an attorney duly admitted to practice before
the Court of Appeals of Maryland.

/s/ RICHARD W. KLEIN, JR.
-------------------------------------
Name: Richard W. Klein, Jr.

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