Document:

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                                                                   EXHIBIT 10.23

                    GLADSTONE COMMERCIAL LIMITED PARTNERSHIP

                               PURCHASE AGREEMENT

         2101, 2109, 2201, 2215 AND 2301 FOX DRIVE, CHAMPAIGN, ILLINOIS

                            DATED: NOVEMBER 23, 2005

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                                TABLE OF CONTENTS

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ARTICLE I DEFINITIONS.......................................................     1

ARTICLE II PURCHASE PRICE AND DEPOSIT.......................................     3

ARTICLE III STUDY PERIOD; CONFIDENTIALITY; AS-IS............................     5

ARTICLE IV TITLE............................................................     8

ARTICLE V REPRESENTATIONS AND WARRANTIES....................................    11

ARTICLE VI COVENANTS AND ADDITIONAL OBLIGATIONS OF OWNER....................    16

ARTICLE VII ASSUMPTION OF THE EXISTING LOAN BY THE COMPANY..................    18

ARTICLE VIII [INTENTIONALLY OMITTED]........................................    18

ARTICLE IX CONDITIONS PRECEDENT.............................................    19

ARTICLE X CLOSING...........................................................    21

ARTICLE XI CLOSING MATTERS..................................................    22

ARTICLE XII PRORATIONS AND ADJUSTMENTS......................................    23

ARTICLE XIII DEFAULT........................................................    26

ARTICLE XIV COORDINATION BETWEEN AGREEMENT AND OTHER CONTRACT...............    27

ARTICLE XV DAMAGE, DESTRUCTION OR CONDEMNATION..............................    28

ARTICLE XVI BROKERS.........................................................    29

ARTICLE XVII MISCELLANEOUS..................................................    29

ARTICLE XVIII CONFIDENTIALITY...............................................    33
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                                    EXHIBITS

Exhibit A             Legal Description of the Land

Exhibit 1.4           Existing Loan Documents

Exhibit 1.8           Description of Leases

Exhibit 2.2           Form of Escrow Agreement

Exhibit 3.2.1         Due Diligence Previously Delivered by Owner

Exhibit 3.2.2         Due Diligence to be Delivered by Owner

Exhibit 4.1           Permitted Exceptions

Exhibit 4.2.1         Title Insurance Requirements

Exhibit 4.2.2         Form of Surveyor's Certification

Exhibit 5.1(iv)       Existing Loan Balances

Exhibit 11.1(b)       Deed

Exhibit 11.1(c)       FIRPTA Certificate

Exhibit 11.1(f)       Form of Assignment and Assumption Agreement

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                                SUMMARY OF TERMS

OWNER:                  Stonewater Dox Funding LLC

OWNER'S ADDRESS:        c/o Drawbridge Special Opportunities Fund LLP
                        1251 Avenue of the Americas
                        16th Floor
                        New York, New York  10021

PURCHASE PRICE:         Fifteen Million and No/100 Dollars
                        ($15,000,000.00)

TENANT:                 Amdocs Champaign, Inc.

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                               PURCHASE AGREEMENT

                                    PREAMBLE:

      THIS PURCHASE AGREEMENT (this "AGREEMENT") is made as of the 23rd day of
November, 2005 (the "EFFECTIVE DATE"), by and between Gladstone Commercial
Limited Partnership, a Delaware limited partnership (the "COMPANY"), as
purchaser and Stonewater Dox Funding LLC, a Delaware limited liability company
(the "OWNER"), as seller, of all of the fee simple interest of the Property.

                                    RECITALS:

      A. Owner is the owner of the property (the "PROPERTY"), which term
Property shall include the land described in Exhibit A attached hereto (the
"LAND") and all of the Improvements (as hereinafter defined) thereon, together
with all rights and appurtenances pertaining to the Land, including, without
limitation, all of Owner's rights, title and interest in and to all: (i)
minerals, oil, gas, and other hydrocarbon substances thereon; (ii) adjacent
strips, streets, roads, avenues, alleys and rights-of-way, public or private,
open or proposed, including any rights in vault space adjacent to or within the
boundaries of the Land; (iii) easements, covenants, privileges, and
hereditaments, whether or not of record, appurtenant to the Land; (iv) access,
air, water, riparian, development, utility, and solar rights; (v) signs,
appliances, security systems, fixtures, mechanical systems, landscaping and
other property owned by Owner located at the Property, but excluding items of
movable personal property attached to the Property that relate to the business
conducted on such Property and that may be readily removed without damage; (vi)
site plans, surveys, plans and specifications, and floor plans relating to the
Property in Owner's possession or control; (vii) warranties, guarantees and
bonds relating to the Property (to the extent assignable); and (viii) permits,
licenses, certificates of occupancy (if any) and other governmental approvals
which relate to the Property (to the extent assignable).

      B. The Company desires to acquire, and Owner desires to sell, the
Property, upon and subject to the terms and conditions set forth in this
Agreement.

      NOW, THEREFORE, in consideration of the mutual promises hereinafter set
forth and of other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

      For purposes of this Agreement, unless the context otherwise requires, the
following terms shall have the meanings hereinafter set forth (such meanings to
be applicable to the singular and plural forms of such terms and the masculine
and feminine forms of such terms):

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            Section 1.1 "BUSINESS DAY" shall mean any day excluding Saturday,
Sunday and any day which on which banking institutions in the Commonwealth of
Virginia are authorized by law or by other governmental actions to close.

            Section 1.2 "ENVIRONMENTAL LAW" shall mean any present and future
law and any amendments (whether common law, statute, rule, order, regulation or
otherwise), permits and other requirements or guidelines of governmental
authorities applicable to the Property and relating to the environment and
environmental conditions or to any Hazardous Material (including, without
limitation, CERCLA, 42 U.S.C. Section 9601 et seq., the Resource Conservation
and Recovery Act of 1976, 42 U.S.C. Section 6901 et seq., the Hazardous
Materials Transportation Act, 49 U.S.C. Section 1801 et seq., the Federal Water
Pollution Control Act, 33 U.S.C. Section 1251 et seq., the Clean Air Act, 33
U.S.C. Section 7401 et seq., the Toxic Substances Control Act, 15 U.S.C. Section
2601 et seq., the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq., the
Emergency Planning and Community Right-To-Know Act, 42 U.S.C. Section 1101 et
seq., the Occupational Safety and Health Act, 29 U.S.C. Section 651 et seq., and
any so-called "Super Fund" or "Super Lien" law, any law requiring the filing of
reports and notices relating to hazardous materials, environmental laws
administered by the Environmental Protection Agency, and any similar state and
local laws, all amendments thereto and all regulations, orders, decisions, and
decrees now or hereafter promulgated thereunder concerning the environment,
industrial hygiene or public health or safety).

            Section 1.3 "EXISTING LENDER" shall mean the owner and holder of the
Existing Loan.

            Section 1.4 "EXISTING LOAN" shall mean a loan made by Wells Fargo
Bank, National Association to Owner in the original principal amount of
$10,000,000.

            Section 1.5 "EXISTING LOAN DOCUMENTS" shall mean each of the loan
documents listed on Schedule 1.8 annexed hereto.

            Section 1.6 "EXISTING MORTGAGE" shall mean that certain Mortgage and
Absolute Assignment of Rents and Leases and Security Agreement made by Owner to
Wells Fargo Bank, National Association dated as of November 21, 2003 in the
amount of $10,000,000, which Existing Mortgage encumbers the Land and the
Improvements and secures the Existing Loan.

            Section 1.7 "GOVERNMENTAL AUTHORITIES" shall mean any commission,
department or body of any municipality, township, city, county, state or Federal
governmental unit having jurisdiction over any of the Property or the ownership,
management, operation, use or improvement thereof.

            Section 1.8 "IMPROVEMENTS" shall mean all buildings, improvements,
structures and fixtures located on the Land or within any easements appurtenant
thereto and owned by Owner, including, without limitation, sidewalks,
landscaping, parking lots and structures, roads, drainage and all above ground
and underground utility structures and

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conduits, equipment systems and other so-called "infrastructure" improvements
owned by Owner.

            Section 1.9 "LEASES" shall mean, collectively the Leases described
on Exhibit 1.9 attached hereto

            Section 1.10 "OTHER CONTRACT" shall mean that certain Purchase
Agreement of even date herewith between Stonewater UIS Funding LLC, as seller,
and Gladstone Commercial Limited Partnership, as purchaser, with respect to the
sale and purchase of the Other Property, as the same may be modified or amended
from time to time.

            Section 1.11 "OTHER PROPERTY" shall mean that certain property
commonly known as 2470 Highcrest Road, Roseville, Minnesota.

            Section 1.12 "OWNER'S KNOWLEDGE" means the actual knowledge of
Jeffrey Toporek and David Stade following a reasonable review of Owner's files
with respect to the Property, and other knowledge of Messrs. Toporek and Stade
obtained through their usual and customary dealings with the Property Manager
and the Property and its operation in the ordinary course (but without any
special investigation or inquiry by either of them), which review and other
knowledge did not disclose any information contrary to the accuracy or veracity
of any such representation or warranty.

            Section 1.13 "PURCHASE PRICE" means Fifteen Million and No/100
Dollars ($15,000,000.00)

            Section 1.14 "TAX YEAR" shall mean the year period commencing on
January 1 of each calendar year and ending on December 31 of such calendar year,
being the real estate tax year for the county in which the Property is located..

            Section 1.15 "TENANT" means Amdocs Champaign, Inc. a Delaware
corporation (formerly known as ITDS Intelicom Services, Inc.).

            Section 1.16 "THE COMPANY'S DUE DILIGENCE AND CONTRACT COSTS" shall
mean, collectively and in the aggregate, all reasonable costs and expenses
(including, without limitation, reasonable attorneys' and accountants' fees and
related expenses) incurred by the Company in connection with the transactions
contemplated by this Agreement, including, without limitation, costs and
expenses incurred by the Company in connection with the assumption by the
Company of the Existing Loan.

                                   ARTICLE II
                           PURCHASE PRICE AND DEPOSIT

            Section 2.1 Purchase Price. On the terms and subject to the
conditions of this Agreement, at the Closing (as hereinafter defined), Owner
shall sell, transfer, convey, assign,

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and deliver to the Company, and the Company shall purchase and accept from Owner
all the right, title, and interest of Owner in and to the Property for the
Purchase Price.

            Section 2.2 Deposit and Escrow Agreement. Simultaneously with its
execution of this Agreement, the Company shall place in escrow (by wire transfer
of immediately available federal funds) with First American Title Insurance
Company (the "TITLE COMPANY") the sum of Two Hundred Thousand and No/100 Dollars
($200,000.00), representing an initial deposit (the "INITIAL DEPOSIT"), to be
held in accordance with an Escrow Agreement (the "ESCROW AGREEMENT") in the form
attached hereto as Exhibit 2.2. Concurrently with the execution of this
Agreement, Owner, the Company and the Title Company shall enter into the Escrow
Agreement. Provided that this Agreement has not been terminated by the Company
on or before the expiration of the Study Period, then within two (2) Business
Days after the expiration of the Study Period the Company shall place in escrow
(by wire transfer of immediately available federal funds) the sum of One Hundred
Seventy-Five Thousand and No/100 Dollars ($175,000.00), representing an
additional deposit (the "ADDITIONAL DEPOSIT"; the Initial Deposit and the
Additional Deposit, together with accrued interest thereon, are herein referred
to as the "DEPOSIT"). The Deposit shall be disbursed by the Title Company in
accordance with the terms and conditions of this Agreement and the Escrow
Agreement

            Section 2.3 Payment of the Purchase Price. At the Closing, the
Purchase Price shall be paid by the Company to Owner as follows:

            (a) Three Hundred Seventy-five Thousand and No/100 Dollars
($375,000) by release of the Deposit by the Title Company to the Owner;

            (b) Nine Million Seven Hundred Sixty-One Thousand Six Hundred
Fourteen and 72/100 Dollars ($9,761,614.72) by the Company's assumption of the
Existing Mortgage pursuant to the provisions of Article VII hereof; and

            (c) Four Million Eight Hundred Sixty-Three Thousand Three Hundred
Eighty-Five and 28/100 Dollars ($4,863,385.28) by wire transfer of immediately
available federal funds to a bank account designated by Owner, subject to
adjustment pursuant to the terms hereof, and as reduced by any interest that has
accrued on the Deposit and that is released to the Owner at the Closing (said
amount, as adjusted, being herein called the "CASH BALANCE").

      If, as of the Closing, the outstanding principal balance of the Existing
Mortgage is less than the amount set forth in Section 2.3(b), then the
difference shall be both deducted from the amount set forth in Section 2.3(b)
above and added to the Cash Balance payable at Closing pursuant to Section
2.3(c) above. If, as of the Closing, the outstanding principal balance of the
Existing Mortgage is more than the amount set forth in Section 2.3(b), then the
difference shall be both added to the amount set forth in Section 2.3(b) above
and deducted from the Cash Balance payable at Closing pursuant to Section 2.3(c)
above.

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                                   ARTICLE III
                      STUDY PERIOD; CONFIDENTIALITY; AS-IS

            Section 3.1 Term of Study Period. The term "STUDY PERIOD" shall mean
the period commencing on the Effective Date and ending at 5:00 p.m. (Eastern
Standard Time) on the date that is thirty (30) days from the Effective Date (the
"STUDY PERIOD EXPIRATION DATE"). During the Study Period, and subject to the
provisions of this Article III, the Company may conduct such reasonable due
diligence activities, inspections and studies of the Property as it deems
necessary or appropriate, and may examine and investigate all facts,
circumstances and matters relating to the Property relevant to its purchase
thereof, including, without limitation, the condition of the Land and
Improvements, title, survey matters and any other matters it deems necessary or
appropriate for purposes of consummating the transaction contemplated by this
Agreement. All such due diligence activities are sometimes referred to herein as
the "DUE DILIGENCE". If, prior to the Study Period Expiration Date, the Company
has not received all of the third party reports that the Company determines are
necessary in connection with its due diligence ("THIRD PARTY REPORTS"),
including but not limited to the Commitment, Survey (as such terms are
hereinafter defined), phase I environmental assessment, appraisal, property
condition assessment/engineering report and zoning report, then the Company
shall have a one time right to extend the Study Period Expiration Date for an
additional fifteen (15) days by written notice delivered by the Company to Owner
and the Title Company on or prior to the then current Study Period Expiration
Date, provided that such notice sets forth a description of the Third Party
Reports that have not yet been received by the Company. In no event, however,
shall the Study Period Expiration Date be later than forty-five (45) days from
(and including) the Effective Date. The Company's right, during any period for
which the Study Period is so extended, to terminate this Agreement as
hereinafter provided in this Section 3.2 may only be exercised as a result of
the Company's dissatisfaction (in its sole discretion) with the Third Party
Report(s) that gave rise to the need for the extension of the Study Period
Expiration Date. If on or before the Study Period Expiration Date, the Company,
in its sole and absolute discretion, shall elect not to proceed to the Closing
for any reason or for no reason, then the Company shall have the right to
terminate this Agreement by giving written notice of termination to Owner and
the Title Company on or before the Study Period Expiration Date, as the same may
have been extended, (time being of the essence with respect to the giving of
such notice), whereupon this Agreement shall automatically terminate, the
Deposit shall be returned to the Company, and neither party shall have any
further rights or obligations under this Agreement (other than any rights and
obligations which expressly are to survive a termination of this Agreement).

            Section 3.2 Due Diligence. (a) During the Study Period, Owner shall
afford the Company and its authorized representatives access to the Property at
agreed-upon times for reasonable and customary due diligence purposes, subject
in all respects to the rights of the Tenant under the Lease. The Company shall
provide Owner or its authorized representatives with not less than one (1)
Business Days' prior written notice that the Company desires access to the
Property. Owner may have one or more representatives of Owner and/or the Tenant
accompany the Company during any such entry. The Company shall conduct the Due
Diligence in a manner which is not disruptive to the business operations
currently being

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conducted at the Property. Owner has delivered to the Company legible, true,
correct and complete copies of the documents and instruments listed in Exhibit
3.2.1 attached hereto, and Owner agrees to deliver to the Company within seven
(7) days of the Effective Date legible, true, correct and complete copies of the
documents and instruments listed in Exhibit 3.2.2 attached hereto, to the extent
the same (i) have not heretofore been delivered by Owner to the Company and (ii)
are in the possession of Owner or are within the reasonable control of Owner and
can be obtained by Owner without additional cost to Owner. In addition, Owner
agrees to make available to the Company any other documents and information
relating to the Property, Owner and/or the Existing Loan reasonably requested by
the Company, provided that such documents and information are in the possession
of Owner or are within the reasonable control of Owner and can be obtained by
Owner without additional cost to Owner. During the Study Period, Owner shall
also afford the Company and its authorized representatives access to the
property manager retained by Owner to manage the Property (the "PROPERTY
MANAGER") and all records and files relating to the Property (financial and
otherwise) in the possession and/or control of the Property Manager. The Company
shall provide Owner or its authorized representatives with not less than one (1)
Business Days' prior written notice that the Company desires access to the
Property Manager. At the request of the Company, Owner agrees to use
commercially reasonable efforts to convene a face-to-face meeting between senior
representatives of the Company and the Tenant. One or more representatives of
Owner may attend all such meetings.

            (b) The Company shall not conduct (or cause to be conducted) any
physically intrusive due diligence, such as sampling of soils, water or building
materials without the prior written consent of Owner, which consent shall not be
unreasonably withheld, conditioned and/or delayed. If the Company desires to
conduct (or to have conducted) any such physically intrusive due diligence, the
Company shall identify in writing with reasonable certainty what procedures the
Company desires to perform and request Owner's prior written consent with
respect thereto, which consent shall not be unreasonably withheld, conditioned
and/or delayed. Upon receipt of Owner's written consent, the Company shall, in
performing such due diligence, comply in all material respects (and shall cause
its consultants and representatives to comply in all material respects) with the
agreed-upon procedures and with any and all laws, ordinances, rules and
regulations applicable to the Property, and the rights of the Tenant under the
Lease, and shall not engage in any activities which would violate any permits or
Environmental Laws. Upon completion of any inspection or test, the Company shall
immediately restore the Property to the condition existing immediately prior to
such inspection or test. If the Company elects to terminate this Agreement
pursuant to Section 3.1 above, then upon request of Owner, the Company shall
provide Owner with a copy of each Third Party Report requested by Owner,
provided that Owner reimburses the Company for the reasonable costs incurred by
the Company to obtain such Third Party Reports so requested by Owner.

            Section 3.3 Liability Insurance. As a condition to Owner's
consenting to the performance of the Due Diligence, in particular but without
limitation to entering upon the Property for the purpose of performing any
physical inspections and/or tests, the Company shall carry and maintain
comprehensive general liability insurance covering Owner, the

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Property Manager and Tenant against claims for bodily injury or death or
property damage occurring in, upon or about the Property, in the amount of not
less than Two Million ($2,000,000) Dollars. Such insurance shall include blanket
contractual liability coverage insuring contractual liability under the
indemnification set forth in Section 3.4 below (but such coverage or the amount
thereof shall in no way limit such indemnification). Prior to entering the
Property to conduct the Due Diligence, the Company shall provide Owner with a
certificate of insurance evidencing that such comprehensive general liability
insurance is in effect. Owner, the Property Manager and Tenant shall each be
named as an additional named insured with respect to such comprehensive general
liability insurance. The Company shall keep such insurance in full force and
effect until the earlier of the Closing or the termination of this Agreement.

            Section 3.4 Indemnification. The Company shall indemnify Owner, the
Property Manager and Tenant, and hold Owner, the Property Manager and Tenant,
and their respective agents, representatives and employees, and the Property
harmless from and against all losses, costs, damages, claims and liabilities
(whether arising out of injury or death to persons or damage to the Property or
otherwise), including, but not limited to, mechanic's and materialmen's liens
and attorneys' fees, arising out of or relating to the Due Diligence and/or
entry upon the Property under this Article III, except to the extent any such
loss, cost, damage, claim and/or liability is caused by the negligence or
willful misconduct of Owner, the Property Manager or Tenant or their respective
employees, agents and/or representatives. This Section 3.4 shall survive the
Closing or earlier termination of this Agreement.

            Section 3.5 Confidentiality. (a) All documents, materials, leases,
instruments, reports and written information heretofore or hereafter delivered
by Owner or the Property Manager to the Company with respect to the Property
(collectively, the "DUE DILIGENCE MATERIALS") shall be kept confidential and
shall not, without Owner's prior written consent, be disclosed by the Company,
or by its employees, agents, representatives or consultants, and shall not be
used by the Company, its employees, agents, representatives or consultants,
other than in connection with the proposed acquisition of the Property.

            (b) All copies of the Due Diligence Materials will be returned to
Owner immediately upon any termination or expiration of this Agreement for any
reason. All analyses, compilations, forecasts, studies, reports or other
documents prepared by the Company, its employees, agents, representatives or
consultants (including all Third Party Reports), will be held by the Company and
kept confidential (or at the option of the Company destroyed) if for any reason
(including the Company's election to terminate this Agreement in accordance with
Section 3.1 above) the Company does not acquire the Property.

            (c) If the Company violates any of the terms of this Section 3.5,
Owner shall have the right (in addition to any other rights or remedies
available to Owner at law), to seek injunctive relief to restrain any breach or
threatened breach by the Company of the terms of this Section 3.5. If the
Company, for any reason (including the Company's election to terminate this

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Agreement in accordance with Section 3.1 above) does not acquire the Property,
then the provisions of this Section 3.5 shall survive the termination of this
Agreement.

            Section 3.6 As Is Condition of the Property. Other than the
representations and warranties of Owner specifically set forth herein, the
Company has not relied upon any oral or written information from Owner or its
employees, affiliates, agents, consultants, advisors or representatives,
including, without limitation, any appraisals, projections or evaluations of
credit quality prepared by Owner or any of its employees, affiliates, agents,
consultants, advisors or representatives. Without limiting the generality of the
foregoing, the Company acknowledges and agrees that, except as expressly set
forth herein, the Company is purchasing the Property "as is" and "where is" on
the Closing Date, and, except as expressly set forth herein, Owner is making no
representation or warranty, express or implied, and the Company has not relied
on any representation or warranty, express or implied, regarding the Property,
including, without limitation, any representation or warranty with respect to
(a) the business or financial condition of any tenant of the Property, (b) the
physical condition of any Improvement or personal property comprising all or a
part of any Property, or its fitness, merchantability or suitability for any use
or purpose, (c) the leases, rents, income or expenses of the Property, (d) the
compliance or non-compliance with any laws, codes, ordinances, rules or
regulations of any governmental authority (including, without limitation,
Environmental Laws), or (e) the current or future use of the Property,
including, but not limited to, any Property's use for commercial, retail,
industrial or other purposes. Owner is not liable or bound in any manner by any
verbal or written statements, representations, real estate brokers' "set-ups",
offering memorandum or information pertaining to any Property furnished by any
real estate broker, advisor, consultant, agent, employee, representative or
other person. The foregoing shall not be deemed to limit any of the Due
Diligence rights of the Company set forth in this Article III.

                                   ARTICLE IV
                                      TITLE

            Section 4.1 State of Title. At the Closing, Owner shall sell the
Property to the Company, and the Company shall purchase the Property from the
Owner, subject only to (a) those matters set forth on Exhibit 4.1 annexed
hereto, (b) any exceptions and matters that are approved, waived or deemed to
have been approved or waived by the Company, (c) such title exceptions as the
Title Company shall be willing to, at its regular rates, omit as exceptions to
coverage, and (d) the standard exceptions and provisions contained in the form
of insuring agreement employed by Title Company (the liens, claims,
encumbrances, exceptions and matters set forth in subclauses (a) through (d)
above being collectively referred to as the "PERMITTED EXCEPTIONS").

            Section 4.2 Title Commitment; Survey. Promptly after the Effective
Date the Company shall obtain at its expense: (i) a title commitment from the
Title Company, together with legible copies of documents referred to in such
commitment (a "COMMITMENT"), for an owner's policy of title insurance covering
the Property which shall in all material respects satisfy the requirements, and
include the endorsements, set forth in Exhibit 4.2.1 attached

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hereto, and (ii) a current plat of survey of the Property, including the
Improvements (a "SURVEY") prepared by a licensed surveyor, which shall be
certified to the Company, the Company's assignee (if any), and the Title Company
by means of a certificate substantially in the form of Exhibit 4.2.2 attached
hereto. The Company shall (i) instruct the Title Company to deliver copies of
the Commitment (and all title continuations thereof) to Owner and its attorneys
concurrently with the delivery of the Commitment to the Company, and (ii)
instruct the surveyor preparing the Survey to deliver a copy of the Survey to
each of Owner and its attorneys concurrently with its delivery thereof to the
Company.

            Section 4.3 Permitted Exceptions. The Company shall have the right
to object, in its sole and absolute discretion, to any exceptions to title, or
to any matter shown on the Survey, which is not a Permitted Exception, by giving
written notice to Owner on or before the date that is five (5) Business Days
after the Company receives the Commitment and Survey (but in no event prior to
the expiration of the initial 30-day Study Period). In addition, the Company
shall have the right to object to any exception to title contained in any title
continuations which is not a Permitted Exception and is not otherwise set forth
in the Commitment, within five (5) Business Days after the Company receives such
title continuation (any such notice given pursuant to this Section 4.3 is herein
called a "TITLE OBJECTION NOTICE"). Any title exception set forth in the
Commitment, on the Survey or in a title continuation notice, which is not timely
objected to by delivery of a Title Objection Notice shall be deemed to be a
Permitted Exception, provided, however, that in no event shall any title defect
required to be discharged by Owner pursuant to Section 4.6 below or any
Violation required to be cured by Owner pursuant to Section 4.8 below, be for
any purpose considered a "Permitted Exception", nor shall the Company have any
obligation to object to any title defect required to be discharged by Owner
pursuant to Section 4.6 below or any Violation required to be cured by Owner
pursuant to Section 4.8 below.

            Section 4.4 Owner's Rights. (a) Owner shall have the right, in its
sole discretion, upon written notice to the Company and the Title Company (the
"TITLE RESPONSE NOTICE") given within ten (10) days after Owner's receipt of any
Title Objection Notice, to elect to either (i) take such action as Owner deems
advisable to discharge those title exceptions which are not Permitted Exceptions
and are set forth in the Title Objection Notice (the "TITLE DEFECTS") or (ii)
terminate this Agreement, whereupon the Deposit (and any interest thereon) shall
be promptly refunded to the Company and thereafter neither party hereto shall
have any further obligation to the other party hereto, with the exception of
those obligations which expressly survive the termination of this Agreement. If
Owner fails timely to deliver the Title Response Notice, then Owner shall be
deemed to have elected to terminate this Agreement pursuant to clause (ii)
above. If Owner, in its Title Response Notice, elects to take action to remove,
remedy or comply with the Title Defects, Owner shall be entitled to one or more
adjournment(s) of the Closing for up to thirty (30) days in the aggregate, to
discharge the Title Defects. If Owner is unable to remove, remedy or comply with
such Title Defects at the expiration of such adjournment, then this Agreement
shall be deemed to be terminated as of the adjourned date of Closing. Upon such
termination, the Deposit (and any interest thereon) shall be promptly refunded
to the Company and neither party hereto shall have any further obligation to the
other

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party hereto, with the exception of those obligations which expressly survive
the termination of this Agreement. Except as set forth in Section 4.6 hereof,
nothing in this Agreement shall be deemed to require Owner to take or bring any
action or proceeding or any other steps to remove any defect in or objection to
title or to expend any moneys therefor, nor shall the Company have any right of
action against Owner, at law or in equity, therefor.

            (b) If, at the Closing, there are any title exceptions which are not
Permitted Exceptions and which Owner is obligated by this Agreement or elects to
pay and discharge, Owner may use any portion of the Purchase Price or any other
sum to satisfy the same, provided that Owner shall have delivered to the Title
Company at the Closing instruments in recordable form sufficient to satisfy such
title exceptions of record, together with the cost of any applicable recording
or filing fees. The existence of any such liens or encumbrances shall not be
deemed objections to title if Owner shall comply with the foregoing
requirements, and so advises the Company in writing of its intent to do so.

            Section 4.5 The Company's Right to Accept Title. The Company may,
upon written notice to Owner at any time on or before the Closing Date (as the
same may have been adjourned by Owner in accordance with the provisions of
Section 4.4 hereof), elect to accept such title as Owner can convey,
notwithstanding the existence of any Title Defects. In such event, (i) this
Agreement shall remain in force and effect, (ii) the parties shall proceed to
Closing and (iii) unless otherwise agreed by the Company and Owner, the Company
shall not be entitled to any abatement of the Purchase Price, any credit or
allowance of any kind or any claim or right of action against Owner for damages
or otherwise by reason of the Title Defects.

            Section 4.6 Owner's Obligations. Notwithstanding anything contained
in this Article IV to the contrary, Owner shall at or prior to Closing discharge
any Title Defects which are (i) knowingly and intentionally created by Owner
subsequent to the date hereof and (ii) liquidated in amount and may be
discharged solely by the payment of a sum of money, provided that in no event
shall Owner be required to expend in excess of One Hundred Thousand and No/100
Dollars ($100,000.00) in the aggregate to discharge any such liquidated Title
Defects and to cure Violations pursuant to Section 4.8 below.

            Section 4.7 Title Affidavits, Etc. (a) If requested by the Title
Company, Owner shall deliver (i) one or more reasonable and customary title
affidavits executed by Owner, certifying to factual matters concerning Owner or
the Property which are within the knowledge of Owner, (including, without
limitation, any reasonable and customary affidavit which may be required in
order to omit from title insurance coverage any exceptions for judgments,
bankruptcies or other returns against persons or entities, other than Owner,
whose names are the same as or similar to Owner's name), (ii) documents
evidencing Owner's payment of franchise or unincorporated business taxes, as
applicable, and (iii) any other documents reasonably requested by the Title
Company to issue the title insurance required pursuant to this Agreement.

                                       10
<PAGE>

            (b) If requested by the Title Company, the Company shall deliver (i)
one or more reasonable and customary title affidavits executed by the Company,
certifying to factual matters concerning the Company which are within the
knowledge of the Company (including without limitation any reasonable and
customary affidavit which may be required in order to omit from title insurance
coverage any exceptions for judgments, bankruptcies or other returns against
persons or entities, other than the Company, whose names are the same as or
similar to Company's name), (ii) documents evidencing Company's payment of
franchise or unincorporated business taxes, as applicable, and (iii) any other
documents reasonably requested by the Title Company to issue the title insurance
required pursuant to this Agreement.

            Section 4.8 Violations. Owner shall cure, or cause to be cured, any
Violations, whether the same have been noted or issued as of the date hereof or
are first noted or issued after the date hereof, provided that in no event shall
Owner be required to expend in excess of One Hundred Thousand and No/100 Dollars
($100,000.00) in the aggregate to cure Violations and remove Title Defects
pursuant to Section 4.6 above. As used herein, the term "VIOLATION(S)" shall
mean any violation of any law or municipal ordinance, order or requirement noted
or issued against the Property by any federal, state or municipal department
having jurisdiction over the Property, other than any such violation that is the
responsibility of the Tenant to cure, comply with, remove or otherwise discharge
pursuant to the terms of the Lease or applicable law.

            Section 4.9 No Limitation on Due Diligence Termination Rights.
Nothing set forth in this Article IV shall limit the Company's right to
terminate this Agreement as set forth in Article III.

                                    ARTICLE V
                         REPRESENTATIONS AND WARRANTIES

            Section 5.1. Representations and Warranties of Owner. Owner
represents and warrants to the Company that the representations and warranties
set forth below are true and correct on and as of the Effective Date:

            (a) Due Execution; Authority. (i) Owner is duly formed, validly
existing and in good standing as a limited liability company under the laws of
the State of Delaware; (ii) this Agreement is, and all the documents to be
executed and delivered by Owner pursuant to this Agreement (the "OWNER CLOSING
DOCUMENTS") will be, when executed by Owner, binding on and enforceable against
Owner in accordance with their respective terms; (iii) except for the Existing
Lender, there are no consents required from any third party to authorize Owner's
entry into and performance of this Agreement, the Owner Closing Documents and/or
the transactions contemplated hereby or thereby which have not been obtained;
(iv) this Agreement, the Owner Closing Documents and the transactions
contemplated hereby and thereby have been, or will have been prior to the
Closing, approved by all necessary action of Owner; and (v) the execution and
delivery of the Owner Closing Documents do not and will not constitute a breach

                                       11
<PAGE>

or default under any agreement by which Owner is bound, or by which any of
Owner's property is encumbered.

            (b) Contracts. There are no contracts (other than the Leases)
entered into by Owner or its agents relating to the ownership, management,
leasing, parking, operation, maintenance or repair of the Property that (i) have
a monetary obligation of more than Twenty-five Thousand and No/100 Dollars
($25,000) per year and (ii) are not cancelable without penalty by Owner upon
notice of ninety (90) days or less (any contracts affecting the Property,
together with all contracts entered into after the date hereof pursuant to
Section 6.1, are hereinafter collectively referred to as the "CONTRACTS"). To
Owner's Knowledge, Owner has performed all material obligations required to be
performed by Owner under the Contracts, and Owner has not received any written
notice of default under any of the Contracts which remains uncured. There are no
contracts for the sale, exchange or transfer of the Property or any portion
thereof other than this Agreement.

            (c) The Leases. (i) No one other than Tenant has any right to occupy
any part of the Property. The Leases are the only leases or other right or grant
of occupancy of all or any part of the Property and Tenant has no right of first
refusal, option or other right to purchase all or any portion of the Property.

                  (ii) Owner has performed or paid all material obligations
required to be performed or paid by it under the Leases and Owner has not
received any written notice of default of any of its obligations under any of
the Leases which remains uncured.

                  (iii) Tenant has no obligation to post a security deposit
pursuant to the Leases, and there are no escrow or similar accounts maintained
by Owner pursuant to the Leases.

            (d) Leasing Commissions. There are no unpaid leasing commissions
outstanding with respect to the Leases.

            (e) Condemnation. There are no pending or, to Owner's Knowledge,
threatened, condemnation proceedings affecting all or any part of the Land or
the Improvements.

            (f) Permitted Exceptions. To Owner's Knowledge, Owner has performed
all material obligations under the terms and provisions of any of the covenants,
conditions, restrictions, rights-of-way and easements constituting one or more
of the Permitted Exceptions for the Property, and Owner has not received any
written notice of default with respect to the foregoing matters which remains
uncured.

            (g) Litigation. No dispute, proceeding, suit or litigation relating
to the Leases, the Property or any part thereof is pending or, to Owner's
Knowledge, threatened in any tribunal.

                                       12
<PAGE>

            (h) FIRPTA. Owner is not a "foreign person" within the meaning of
Section 1445 of the Internal Revenue Code of 1986, as amended, and the
regulations promulgated thereunder.

            (i) Existing Loan. (i) The proceeds of the Existing Loan have been
fully advanced.

                  (ii) Owner has not received any written notice of any default,
breach, violation or event of acceleration existing under or pursuant to any of
the Existing Loan Documents, and to Owner's Knowledge no event (other than
payments due but not yet delinquent) exists which, with the passage of time or
with notice and the expiration of any grace or cure period, would constitute a
default or event of acceleration of any of the Existing Loan Documents.

                  (iii) Except as expressly set forth in the Existing Loan
Documents, no material term, covenant or condition of the Existing Loan
Documents has been waived, modified, altered, satisfied, canceled or
subordinated in any respect or rescinded.

                  (iv) As of the Effective Date, the outstanding principal
balance, accrued interest and any late fees or collection costs due and owing to
Existing Lender and the balance of any escrow and other accounts maintained by
or for the benefit of Existing Lender with respect to the Existing Loan are set
forth in Exhibit 5.1(iv).

                  (v) The Existing Loan is the only indebtedness of Owner
secured by the Property, and the only documents and instruments executed by
Owner in connection with the Existing Loan that encumber the Property are the
Existing Mortgage, a related assignment of leases and rents made by Owner in
favor of Lender and uniform commercial code financing statements naming Owner as
debtor and Lender as secured party.

                  (vi) Each of the Existing Loan Documents is the legal, valid
and binding obligation of Owner, enforceable in accordance with its terms,
except as such enforcement may be limited in the future by bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of
creditors' rights generally, and by general principles of equity (regardless of
whether such enforcement is considered in a proceeding in equity or at law).

            (j) Material Change. Owner has not received written notice from any
Governmental Authority of any pending or contemplated change in any regulation,
code, ordinance or law, or private restriction applicable to the Property, or
any natural or artificial condition upon or affecting the Property, or any part
thereof, which would result in any material change in the condition of the
Property or any part thereof, or would in any way limit or impede the operation
or development of the Property.

            (k) Accuracy of Documents. Owner has previously delivered to the
Company the documents and records listed on Exhibit 3.2.1 hereto, and shall to
the extent the

                                       13
<PAGE>

same are within the possession and/or reasonable control of Owner and have not
heretofore been delivered to Owner, deliver to the Company within seven (7) days
of the Effective Date, the documents and information listed in Exhibit 3.2.2. To
the extent prepared by Owner or its employees, such documents are true, correct
and complete, and accurately reflect the matters contained therein in every
material respect. To the extent such documents have not been prepared by Owner,
to Owner's Knowledge there are no facts or circumstances that would make any of
such documents or records and the matters contained therein, inaccurate in any
material respect.

            (l) Tax Matters. Owner has relied solely on its own counsel for
advice on any and all federal, state and local tax matters relating to this
Agreement and the transactions contemplated herein and has not relied on any
advice or representations of the Company, or its counsel with respect to any
federal, state and local tax matters relating to this Agreement or the
transactions contemplated herein.

            (m) Warranties. Owner has not released or modified any warranties of
builders, contractors, manufacturers or other trades persons that have been
given to Owner and to Owner's Knowledge all such warranties are in full force
and effect.

            (n) Bankruptcy. Owner has not: (i) made a general assignment for the
benefit of creditors; (ii) filed any voluntary petition in bankruptcy or
suffered the filing of an involuntary petition by Owner's creditors; (iii)
suffered the appointment of a receiver to take possession of all or
substantially all of Owner's assets; (iv) suffered the attachment, or other
judicial seizure of all, or substantially all, of Owner's assets; (v) admitted
in writing its inability to pay its debts as they come due; or (vi) made an
offer of settlement, extension or compromise to its creditors generally.

            (o) Permits, Etc. To Owner's Knowledge, all permits, licenses,
authorizations and certificates of occupancy required by Governmental
Authorities for the management, occupancy, leasing and operation of the Property
are in full force and effect.

            (p) Compliance with Law Under the Lease. To Owner's Knowledge, there
does not currently exist any obligation to be taken or performed by the Tenant
pursuant to the Lease that if not taken or performed, would cause the Property
to be in non-compliance with any federal, state, municipal and other
governmental laws, ordinances, requirements, rules, regulations, notices, codes
and orders, or any agreements, covenants, conditions, easements and restrictions
currently in effect and relating to the Property.

            (q) Zoning; Governmental Rules and Regulations Under the Lease and
Existing Loan Documents. To Owner's Knowledge as of the date hereof, there is no
requirement of applicable law, the Lease or Existing Loan Document that would
require Owner to sell, mortgage, pledge, hypothecate or otherwise transfer or
dispose of all or any part of the Property or any interest therein, or initiate,
consent to, approve or otherwise take any action

                                       14
<PAGE>

with respect to zoning or any other governmental rules or regulations presently
applicable to all or any part of the Property.

            (r) Not Misleading. Without limiting any of the representations and
warranties of Owner set forth in this Agreement, such representations and
warranties do not make any untrue statement of a material fact, or to Owner's
Knowledge, omit to state a material fact necessary in order to make the
statements made, in light of the circumstances under which they were made, not
misleading.

            The Company agrees that, if (i) during the Study Period, the Company
shall discover any state of facts that differs from any of the representations
set forth in Section 5.1 above or that would make such representations untrue,
or (ii) if any of the documents listed in Exhibit 3.2.1 contains any facts or
statements that differ from any of the representations set forth in Section 5.1
above or that would make such representations untrue, then the Company shall
promptly advise the Owner in writing of such different state of facts.

            Section 5.2 Representations and Warranties of The Company. The
Company represents and warrants to Owner that the representations and warranties
set forth below are true and correct on and as of the Effective Date:

            (a) Due Execution; Authority. (i) The Company is duly formed,
validly existing and in good standing as a limited partnership under the laws of
the State of Delaware; (ii) this Agreement is, and all the documents to be
delivered by the Company pursuant to the express terms of this Agreement (the
"COMPANY CLOSING DOCUMENTS") will be, when executed by the Company, binding on
and enforceable against the Company in accordance with their respective terms;
(iii) there are no consents required from any third party to authorize the
Company's entry into and performance of this Agreement, the Company Closing
Documents and/or the transactions contemplated hereby or thereby; (iv) this
Agreement has been, the Company Closing Documents and the transactions
contemplated hereby and thereby have been, or will have been prior to the
Closing, approved by all necessary action of the Company; and (v) the execution
and delivery of the Company Closing Documents do not and will not constitute a
breach or default under any agreement by which the Company is bound or by which
any of the Company's property is encumbered.

            (b) Bankruptcy. The Company has not: (i) made a general assignment
for the benefit of creditors; (ii) filed any voluntary petition in bankruptcy or
suffered the filing of an involuntary petition by the Company's creditors; (iii)
suffered the appointment of a receiver to take possession of all or
substantially all of the Company's assets; (iv) suffered the attachment, or
other judicial seizure of all, or substantially all, of the Company's assets;
(v) admitted in writing its inability to pay its debts as they come due; or (vi)
made an offer of settlement, extension or compromise to its creditors generally

            (c) Prohibited Person. The Company is not a Prohibited Person. For
purposes hereof, a "Prohibited Person" shall mean any of the following: (i) a
person or entity

                                       15
<PAGE>

that is listed in the Annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224 on Terrorist Financing (effective September 24, 2001)
(the "EXECUTIVE ORDER"); (ii) a person or entity owned or controlled by, or
acting for or on behalf of any person or entity that is listed in the Annex to,
or is otherwise subject to the provisions of, the Executive Order; (iii) a
person or entity that is named as a "specially designated national" or "blocked
person" on the most current list published by the U.S. Treasury Department's
Office of Foreign Assets Control ("OFAC") at its official website,
http://www.treas.gov/offices/enforcement/ofac; (iv) a person or entity that is
otherwise the target of any economic sanctions program currently administered by
OFAC; or (v) a person or entity that is affiliated with any person or entity
identified in any of clause(i), (ii), (iii) and/or (iv) above.

            Section 5.3 Closing Certificates of The Company and Owner. (a) The
Company, on the Closing Date, shall execute and deliver to Owner an instrument
by which the Company shall remake the representations made pursuant to Section
5.2 above as of the Closing, provided that the Company, in such instrument,
shall (i) update such representations to reflect events occurring between the
date hereof and the Closing and (ii) correct such representations and warranties
to reflect any discovered inaccuracy therein; such instrument being herein
called the "COMPANY'S REPRESENTATION CERTIFICATE".

            (b) Owner, on the Closing Date, shall execute and deliver to the
Company an instrument in which Owner shall remake the representations and
warranties made pursuant to Section 5.1 above as of the Closing, provided that
Owner, in such instrument, shall (i) update such remade representations to
reflect events occurring between the date hereof and the Closing and (ii)
correct such remade representations to reflect any discovered inaccuracy
therein; such instrument being herein called "OWNER'S REPRESENTATION
CERTIFICATE".

                                   ARTICLE VI
                  COVENANTS AND ADDITIONAL OBLIGATIONS OF OWNER

            Section 6.1 Covenants of Owner. Owner agrees that from the date of
this Agreement to the Closing, it will:

            (a) Insurance. Subject to the terms and conditions of the Leases
(and to the extent Owner is able to do so pursuant to the Leases), cause Tenant
to maintain in full force and effect all insurance required to be maintained
pursuant to the Leases.

            (b) Contracts and Business Practice. Not become a party to any new
licenses, equipment leases, contracts or agreements of any kind relating to the
Property, except for such contracts or agreements as will be terminated at or
prior to the Closing without cost or expense to the Company or contracts which
the Company agrees in its sole discretion to assume at the Closing, without
having obtained in each case the prior written consent of the Company, which
consent shall not be unreasonably withheld or delayed. The Company agrees that
any requests for consent shall be responded to within five (5) Business Days of
receipt of request therefor. Except as otherwise provided in this Article VI,
Owner shall continue, and shall cause Tenant to

                                       16
<PAGE>

continue (to the extent Owner is able to do so pursuant to the Leases), to
manage, maintain and operate the Property in the same manner that Owner (or
Tenant, as applicable) has been managing, maintaining and operating the Property
immediately prior to the Effective Date; provided, however, that Owner shall not
have any obligation to make repairs or expenditures that are capital in nature.

            (c) Compliance With Laws. Not knowingly take or fail to take any
action that will cause the Property to fail to comply with any federal, state,
municipal and other governmental laws, ordinances, requirements, rules,
regulations, notices, codes and orders, or any agreements, covenants,
conditions, easements and restrictions currently in effect relating to the
Property; provided that Owner shall not be required to take any such action, or
perform any such obligation, if and to the extent that such action is required
to be taken by the Tenant under the Leases or is otherwise the obligation of the
Tenant under the Leases.

            (d) Notices. Promptly upon receipt, provide the Company with copies
of all written notices delivered to, or received by, the Tenant in connection
with the Property or the Leases, any insurance company which carries insurance
on the Property, or from any Governmental Authorities with respect to the
Property or any portion thereof.

            (e) Conditions To The Closing. Use good faith efforts prior to the
Closing to satisfy all conditions to the Closing which are within Owner's
reasonable power to satisfy.

            (f) No Sale or Encumbrance. Owner shall not sell, mortgage, pledge,
hypothecate or otherwise transfer or dispose of all or any part of the Property
or any interest therein, or initiate, consent to, approve or otherwise take any
action with respect to zoning or any other governmental rules or regulations
presently applicable to all or any part of the Property, except if and to the
extent required by law, the terms of the Leases or the terms of the Existing
Loan Documents.

            (g) Lease. Owner shall not nor cause or permit Tenant to terminate,
modify, extend, amend or renew the Leases or enter into any new lease or other
letting arrangement without the prior written consent of the Company, which the
Company may withhold in its sole discretion.

            (h) Existing Loan. Pay and perform all of its obligations pursuant
to the Existing Loan Documents, and use good faith efforts to cause Existing
Lender to consent to the assignment to, and assumption by the Company of, the
Existing Loan.

            (i) Fulfillment of Obligation. To the extent Owner is obligated,
pursuant to any contract, agreement, covenant, lease, or other understanding
entered into prior to the Effective Date with any tenant, governmental
subdivision or any other third party, to effect any construction, make any
improvements or take any action, Owner shall cause any such construction,
improvements and/or action to be taken, completed and fully paid for by Owner,
at its expense, prior to the Closing. No such obligation shall be unfulfilled,
and no liability for or payment in respect of any obligation shall be
unsatisfied as of the Closing.

                                       17
<PAGE>

                                   ARTICLE VII
                 ASSUMPTION OF THE EXISTING LOAN BY THE COMPANY

            Section 7.1 Assumption of Existing Loan. The Company recognizes and
agrees that, in connection with the Existing Loan, the Property presently is
encumbered by the Existing Mortgage. The Loan is evidenced by that certain
promissory note dated as of November 21, 2003 in the stated principal amount of
$10,000,000 (the "EXISTING NOTE") executed by Owner and payable to the order of
Wells Fargo Bank, National Association. Owner has heretofore delivered a true,
correct and complete copy of the Existing Note and the other Existing Loan
Documents to the Company for its review. The Company agrees that, at the
Closing, the Company shall assume Owner's obligations under the Existing Note
and all of the other Existing Loan Documents and accept title to the Property
subject to the Existing Mortgage. It shall be a condition to the Owner's and the
Company's obligations hereunder that at Closing the Existing Lender shall
release Owner, as well as any guarantors and other obligated parties under the
Existing Loan Documents from all obligations under the Existing Loan Documents
(and any related guarantees or letters of credit), including, without
limitation, any obligation to make payments of principal and interest under the
Existing Note (the foregoing assumption of the Existing Loan and the release of
Owner and all guarantors thereunder being herein called the "LOAN ASSUMPTION AND
RELEASE"). The Company shall, within three (3) Business Days of the Effective
Date, submit to the Lender a completed application for the Loan Assumption and
Release (the "APPLICATION"). The Company and Owner each agree to use
commercially reasonable diligent efforts to cause the Loan Assumption and
Release to be consummated in the most timely and efficient manner. The Company
shall pay all fees and expenses imposed or charged by the Lender and its counsel
in connection with the Loan Assumption and Release, including, without
limitation, all servicing fees and charges, transfer fees, assumption fees,
title fees and endorsement fees and this obligation to pay fees and expenses
shall survive the Closing or any earlier termination of this Agreement. The
Company and Owner shall each pay their own legal fees and costs and expenses in
connection with the Loan Assumption and Release. In connection with the Loan
Assumption and Release, the Company shall form a subsidiary entity to take title
to the Property, which subsidiary entity shall be a bankruptcy remote single
purpose entity which satisfies the requirements of the Existing Loan Documents
and of the Existing Lender.

                                  ARTICLE VIII
                             [INTENTIONALLY OMITTED]

                                       18
<PAGE>

                                   ARTICLE IX
                              CONDITIONS PRECEDENT

            Section 9.1 The Company's Conditions Precedent. The Company's
obligation to accept the conveyance of the fee simple title to the Property
hereunder shall be subject to the full and timely satisfaction of the following
conditions (all or any of which may be waived, in whole or in part, by the
Company in writing in its sole discretion) at or prior to the Closing:

            (a) Title. The Company shall have received confirmation from the
Title Company that it is issuing to the Company at the Closing an owner's title
policy (bringing the title current to the date of the Closing) without
exceptions other than the Permitted Exceptions.

            (b) Representations and Warranties. Owner's Representation
Certificate shall reflect that the representations and warranties made by Owner
in this Agreement (as the same may be deemed modified by the provisions of the
last paragraph of Section 5.1) are true and correct in all material respects as
of the Closing (with such modifications as may be necessary to reflect any
changes contemplated or permitted by this Agreement, such as a change to
subsection 5.1(i)(iv) to reflect any payments on the Existing Loan made after
the Effective Date).

            (c) Performance of Obligations, etc. Owner shall have performed in
all material respects all covenants and obligations and complied with all
conditions, obligations and agreements required by this Agreement to be
performed or complied with by it at or before the Closing.

            (d) Existing Loan. All right, title and interest of Owner under and
pursuant to the Existing Loan Documents shall be assigned to and assumed by the
Company, Existing Lender shall have consented to such assignment and assumption,
and all conditions to such assignment and assumption imposed by Existing Lender
shall have been satisfied or waived by Existing Lender.

            (e) Tenant Estoppel Certificate. The Company shall have received an
executed estoppel certificate from the Tenant in the form prescribed by the
Leases.

            (f) Closing Under the Other Contract. The Closing under this
Agreement and the closing of the transactions contemplated by the Other Contract
occur simultaneously.

            (g) Construction/Improvement Work at the Property. The Company shall
have received confirmation reasonably satisfactory to it that with regard to any
construction/improvement work at the Property (the "Improvement Work"): (i) all
licenses, permits and similar authorizations required by all Governmental
Authorities relating to ongoing Improvement Work are in full force and effect;
and (ii) all applicable certificates (including, without limitation,
certificates of inspection), permits and/or licenses relating to the

                                       19
<PAGE>

inspection and completion of Improvement Work during or after the expiration of
the Study Period required by all Governmental Authorities.

            (h) Violations. All Violations shall have been cured to the
satisfaction of the applicable Governmental Authorities.

            Section 9.2 The Owner's Conditions Precedent Owner's obligation to
close on the Closing Date is subject to the satisfaction of the following
conditions precedent, any or all of which may be waived in writing by Owner:

            (a) Representations and Warranties. The Company's Representation
Certificate shall reflect that the representations and warranties made by the
Company in this Agreement are true and correct in all material respects as of
the Closing.

            (b) Performance of Obligations, etc. The Company shall have
satisfied and complied with (or at the Closing shall satisfy and comply with)
all of its obligations hereunder (including, without limitation, its obligations
to pay the Cash Balance and to execute and/or deliver each and all of the
documents to be executed and/or delivered by the Company pursuant to this
Agreement);

            (c) Existing Loan. All right, title and interest of Owner under and
pursuant to the Existing Loan Documents shall be assigned to and assumed by the
Company, Existing Lender shall have consented to such assignment and assumption,
the Company and the Existing Lender have entered into the Loan Assumption and
Release, all conditions to such assignment and assumption imposed by Existing
Lender shall have been satisfied or waived by Existing Lender, and the Existing
Lender shall have released Owner, as well as any guarantors and other obligated
parties under the Existing Loan Documents from all obligations under the
Existing Loan Documents (and any related guarantees or letters of credit),
including, without limitation, any obligation to make payments of principal and
interest under the Existing Note; and

            (d) The Closing under this Agreement and the closing of the
transactions contemplated by the Other Contract occur simultaneously.

            Section 9.3 Failure of Conditions. (a) If any condition described in
Section 9.1 is not satisfied as of the Closing Date, then Company may, at its
sole option and as its sole and exclusive remedy: (i) extend the Closing Date
for up to an additional thirty (30) days to allow for the satisfaction of such
conditions, by written notice thereof to Owner and the Title Company; (ii)
proceed to Closing without any abatement or reduction in the Purchase Price; or
(iii) terminate this Agreement by written notice thereof to Owner and the Title
Company at any time on or before the Closing. If the Company so extends the
Closing Date and any such conditions remain unsatisfied at the end of such
extended period, then the Company shall have the option, in its sole discretion,
to either: (i) terminate this Agreement by written notice thereof to Owner and
the Title Company; or (ii) proceed to the Closing without abatement or reduction
in the Purchase Price. Upon termination of this Agreement pursuant to this
Section 9.3, the

                                       20
<PAGE>

Deposit shall be returned to the Company, and neither party shall have any
further rights, obligations or liabilities under this Agreement, except for the
obligations set forth in this Agreement that expressly survive termination of
this Agreement. The conditions set forth in this Section 9.3 are for the
Company's sole benefit, and the Company may, in its sole discretion, waive
(conditionally or absolutely) the fulfillment of any one or more of the
conditions, or any part thereof. Owner shall not take or authorize, directly or
indirectly, any action that modifies or changes the circumstances upon which the
conditions set forth in Section 9.1 were deemed satisfied or waived by the
Company without the Company's prior written consent.

            (b) If any condition described in Section 9.2 is not satisfied as of
the Closing Date, then Owner may, as its sole and exclusive remedy, (i) extend
the Closing Date for up to an additional thirty (30) days to allow for the
satisfaction of such conditions, by written notice thereof to the Company; (ii)
terminate this Agreement by written notice thereof to the Company at any time on
or before the Closing; or (iii) proceed to the Closing without any abatement or
reduction in the Purchase Price. If the Owner so extends the Closing Date and
any such conditions remain unsatisfied at the end of such extended period, then
the Owner shall have the option, in its sole discretion, to either: (i)
terminate this Agreement by written notice thereof to Owner and the Title
Company; or (ii) proceed to the Closing without abatement or reduction in the
Purchase Price. Upon termination of this Agreement under this Section 9.3(b),
the Deposit shall be returned to the Owner, and thereafter neither party shall
have any further rights, obligations or liabilities under this Agreement, other
than with respect to those rights and obligations that are expressly to survive
a termination of this Agreement. The conditions set forth in this Section 9.3(b)
are for Owner's sole benefit, and Owner may, in its sole discretion, waive the
fulfillment of any one or more of the conditions, or any part thereof. Company
shall not take or authorize, directly or indirectly, any action that modifies or
changes the circumstances upon which the conditions set forth in Section 9.2
were deemed satisfied or waived by the Owner without the Owner's prior written
consent.

            (c) In addition to and without limiting the provisions of Section
9.3(a) and (b) above, Owner and the Company agree that each shall have the
unilateral right upon written notice to the other and the Title Company, to
extend the Closing Date for such period of time as may be necessary for the
Existing Lender to finally approve or disapprove the Application.

                                    ARTICLE X
                                     CLOSING

            Section 10.1 Closing. Closing of the transactions contemplated
hereby (the "CLOSING") shall be consummated by mail through the offices of First
American Title Insurance Company, 1801 K Street, N.W., Suite 200-K, Washington,
D.C. 20006, on the date that is twenty (20) days after the expiration of the
Study Period (such date, as the same may be extended pursuant to the terms of
this Agreement, being herein called the "CLOSING DATE"; if the then scheduled
Closing Date is not a Business Day, then the Closing Date shall be the next
succeeding Business Day). Time shall be of the essence with respect to the
obligations of Owner and the Company to be performed on the Closing Date.

                                       21
<PAGE>

                                   ARTICLE XI
                                 CLOSING MATTERS

            Section 11.1 Owner's Obligations. At the Closing, Owner shall:

            (a) Affidavits. Execute and deliver to the Title Company such
affidavits and indemnity agreements as required by Section 4.7(a)
above.

            (b) Deed. Execute and deliver to the Company a Deed in the form
attached hereto as Exhibit 11.1(b).

            (c) FIRPTA Certificate. Execute and deliver to the Company a FIRPTA
Certificate substantially in the form attached hereto as Exhibit 11.1(c).

            (d) Owner's Representation Certificate. Execute and deliver to the
Company the Owner's Representation Certificate as required by Section 5.3 above.

            (e) Further Assurances. Execute (as applicable) and deliver (or
cause to be delivered) to the Company the Owner Closing Documents.

            (f) Assignment and Assumption of Lease. Execute and deliver to the
Company an Assignment and Assumption of Lease in the form attached hereto as
Exhibit 11.1(f).

            (g) Assignment of Existing Loan. Execute and deliver to the Company,
Existing Lender and the Title Company the documents and instruments necessary to
effect the assignment to the Company of the Existing Loan and Existing Loan
Documents, the assumption of the Owner's obligations under the Existing Loan
Documents, and the release of Owner, as well as any guarantors and other
obligated parties, under the Existing Loan Documents from all obligations under
the Existing Loan Documents and any related guarantees.

            (h) Possession. Give full possession of the Property to the Company
(subject to the rights of the Tenant under the Leases), and in connection
therewith, turn over to the Company all keys, access codes and other equipment
and information necessary for the Company to have full and complete access to
the Property, subject only to the rights of Tenant under the Leases.

            (i) Notice Letter to Tenant. Execute and deliver a letter to the
Tenant notifying the Tenant of the sale of the Property and indicating the new
address for notices under the Leases.

            (j) Transfer Tax Forms. Execute and deliver all requisite transfer
tax forms and other documents required by law in order to consummate the
conveyance of the Property from Owner to the Company pursuant to this Agreement.

                                       22
<PAGE>

            Section 11.2 The Company's Obligations. At the Closing, the Company
shall:

            (a) Cash Balance. Deliver the Cash Balance to the Owner (as provided
in Section 2.3 above);

            (b) Affidavits Execute and deliver to the Title Company such
affidavits and indemnity agreements as required by Section 4.7(b) above .

            (c) The Company's Representation Certificate. Execute and deliver to
Owner the Company's Representation Certificate as required by Section 5.3 above.

            (d) Further Assurances. Execute (as applicable) and deliver (or
cause to be delivered) to the Owner the Company's Closing Documents.

            (e) Assignment and Assumption of Leases. Execute and deliver to the
Owner an Assignment and Assumption of Lease in the form attached hereto as
Exhibit 11.1(f).

            (f) Assumption of Existing Loan. Execute and deliver to the Owner,
Existing Lender and the Title Company the documents and instruments reasonably
necessary to effect the assumption by the Company of the Owner's obligations
under the Existing Loan and Existing Loan Documents and the release of Owner, as
well as any guarantors and other obligated parties, under the Existing Loan
Documents from all obligations under the Existing Loan Documents and any related
guarantees, and pay to the Existing Lender all assumption fees, costs and
expenses required by the Existing Loan Documents to effect such assumption by
the Company and requisite consent by the Existing Lender.

            (g) Transfer Tax Forms. Execute and deliver all requisite transfer
tax forms and other documents required by law in order to consummate the
conveyance of the Property from Owner to the Company pursuant to this Agreement.

                                   ARTICLE XII
                           PRORATIONS AND ADJUSTMENTS

            Section 12.1 Prorations and Adjustments. (a) Rents. All rents
payable by the Tenant to Owner under the Lease shall, at the Closing, be
apportioned between Owner and the Company as of 11:59 p.m. of the day
immediately prior to the Closing Date.

            (b) Existing Loan Payments. Any current payments of principal and
interest, and any reserve amounts, due pursuant to the Existing Loan for the
month in which the Closing occurs shall at the Closing, be apportioned between
Owner and the Company as of 11:59 p.m. of the day immediately prior to the
Closing Date. All other payment items with respect to the Existing Loan shall be
brought current at the Closing by Owner.

            (c) Reserves, etc. The Company shall reimburse Owner for all
reserves, impounds and other sums assigned to the Company that are then on
deposit with the Lender

                                       23
<PAGE>

and required to be maintained by the borrower under the Existing Loan Documents
in connection with the Existing Loan

            (d) Real Estate Taxes. The Company and Owner shall only prorate real
estate for the Property that are actually due and payable during the Tax Year in
which the Closing Date occurs (the "CLOSING TAX YEAR"), regardless of the year
for which such taxes are assessed. As a result, if real estate taxes for the
Property are paid in arrears (i.e., taxes paid during any Tax Year are assessed
for or otherwise attributable to the previous Tax Year), there shall be no
proration of real estate taxes assessed for or attributable to the Property for
the Closing Tax Year (which would be due and payable during the following Tax
Year). There shall be no proration of real estate taxes other than as set forth
hereinabove and, as between the Company and Owner, the Company agrees that it
shall be solely responsible for all such real estate and personal property taxes
due and payable after the Closing. The proration of the real estate taxes
actually due and payable during the Closing Tax Year shall be calculated as
follows:

                  (i) Owner shall be responsible for that portion of such taxes
equal to (i) the total such taxes due and payable during the Closing Tax Year,
multiplied by (ii) a fraction, the numerator of which shall be the number of
days in the Closing Tax Year prior to the Closing Date, and the denominator of
which shall be 365; and

                  (ii) The Company shall be responsible for that portion of such
taxes equal to (i) the total such taxes due and payable during the Closing Tax
Year, multiplied by (ii) a fraction, the numerator of which shall be the number
of days in the Closing Tax Year subsequent to and including the Closing Date,
and the denominator of which shall be 365.

            (e) Other Items. All other items which are customarily apportioned
in connection with the purchase and sale of real property similar to the
Property in the jurisdiction in which the Property is located shall, at the
Closing, be apportioned between the Owner and the Company as of 11:59 p.m. of
day immediately prior to the Closing; provided, however, that in no event shall
any item of expense be apportioned hereunder if, and to the extent that, such
expense item is the obligation of the Tenant under the Lease (it being agreed
that each of Owner and the Company shall look solely to the Tenant for the
payment of such expense during their respective periods of ownership).

            (f) Tax Refunds. Notwithstanding the foregoing, any refunds of real
property taxes for tax years beginning prior to the Closing Date shall belong to
Tenant, and if paid to the Company shall be promptly refunded by the Company to
Tenant in accordance with the provisions of the Lease.

            (g) Overage Rent.

                  (i) All reimbursements or payments in respect of operating
expenses, real estate taxes, and other charges (collectively, "OVERAGE RENT")
paid pursuant to the Lease for the accounting period in which the Closing occurs
shall when received be apportioned between Owner and the Company as of 11:59
P.M. of the day preceding the Closing Date. Owner shall

                                       24
<PAGE>

be entitled to receive the proportion of such Overage Rent (less any reasonable
costs and expenses incurred in the collection of such Overage Rent), that the
portion of such accounting period prior to the Closing Date bears to the entire
such accounting period. The Company shall be entitled to receive the proportion
of such Overage Rent (less any reasonable costs and expenses incurred in the
collection of such Overage Rent) that the portion of such accounting period from
and after the Closing Date bears to the entire such accounting period. If, prior
to the Closing, Owner shall receive any installments of Overage Rent
attributable to Overage Rent for periods from and after the Closing Date, such
sum shall be credited against the Cash Balance payable by the Company at the
Closing. As to Overage Rent in respect of an accounting period that shall have
expired prior to the Closing, but which shall be paid after the Closing, the
Company agrees that it will pay the entire amount over to Owner upon receipt
thereof, less the Company's reasonable costs of collection reasonably allocable
thereto. The Company agrees that it shall promptly render bills for any Overage
Rent in respect of an accounting period that shall have expired prior to Closing
but which shall be payable after the Closing, and use commercially reasonable
efforts in the collection of Overage Rent, provided, however, that the Company
shall have no obligation to commence any legal actions or proceedings to collect
any such Overage Rent. Owner shall furnish to the Company all information
relating to the period prior to the Closing that is reasonably necessary for the
billing of such Overage Rent. The Company shall deliver to Owner, concurrently
with the delivery to Tenant, copies of all statements relating to Overage Rent
for periods prior to the Closing.

                  (ii) To the extent that any portion of the Overage Rent is
required to be paid monthly or on another periodic basis, by Tenant on account
of estimated amounts for the current period, and at the end of each calendar
year (or, if applicable, at the end of each lease year or tax year, as the case
may be), such estimated amounts are to be recalculated based upon the actual
expenses, taxes and other relevant factors for that calendar (lease or tax)
year, with the appropriate adjustments being made with Tenant, then such portion
of the Overage Rent paid shall be prorated between Owner and the Company at the
Closing, based on such estimated payments (i.e., with Owner entitled to retain
all monthly and other periodic installments of such amounts paid with respect to
periods prior to the calendar month or other relevant period in which the
Closing Date occurs, Owner to pay to the Company at the Closing all monthly or
other relevant period installments of such amounts paid with respect to periods
following the calendar month or other relevant period in which the Closing
occurs and Owner and the Company shall apportion all monthly installments of
such amounts with respect to the calendar month in which the Closing occurs) and
at the time(s) of final calculation and collection from (or refund to) Tenant of
the amounts in reconciliation of actual Overage Rent for a period for which
estimated amounts have been prorated, there shall be a reproration between Owner
and the Company, with the net credit resulting from such reproration being
payable to the appropriate party (i.e., to Owner if the recalculated amounts
exceed the estimated amounts and to the Company if the recalculated amounts are
less than the estimated amounts).

            Section 12.2 Costs and Expenses. Except as otherwise provided in
this Agreement, the Company shall be solely responsible for the following: (a)
all costs of preparation of the Survey for the Property; (b) all costs of
conducting all environmental tests

                                       25
<PAGE>

and other Due Diligence of and with respect to the Property; and (c) all costs
and fees in connection with the assumption of the Existing Loan. Owner shall pay
all costs associated with: (i) any costs of state, county, city, local,
municipal and township recording, transfer and similar taxes and impositions
with respect to the conveyance of the Property; (ii) repaying any indebtedness
secured by the Property (other than the Existing Loan); (iii) any gains taxes,
income taxes or similar taxes owing as a result of the transactions contemplated
hereby; and (iv) all costs associated with the issuance to the Company of the
new owner's policy of title insurance, including the premium for such policy and
the cost for a zoning endorsement (ALTA 3.1) and a comprehensive endorsement
(ALTA 9). All other endorsements shall be paid for by the Company. The Company
and Owner shall share equally escrow fees and other closing costs. The Company
and Owner shall each pay their respective legal fees and expenses incurred in
connection with the negotiation of this Agreement and all related documents, and
in addressing each such party's tax and securities issues.

                                  ARTICLE XIII
                                     DEFAULT

            Section 13.1 Default By The Company. If (i) any of the
representations and warranties made by the Company in this Agreement (as updated
by the Company's Representation Certificate) are inaccurate or incorrect in any
material respect on the date made or deemed made, or (ii) if the Company fails
to perform its covenants, obligations or agreements under this Agreement and
such failure is not cured on or before the earlier of ten (10) days after
written notice by Owner to Company or the Closing Date, or (iii) the purchaser
under the Other Contract (the "OTHER PURCHASER") fails to perform its covenants,
obligations or agreements under the Other Contract and the seller under the
Other Contract (the `OTHER SELLER") terminates the Other Contract as a result of
such failure, then in any of such events, Owner's sole and exclusive remedy
shall be the right to cancel and terminate this Agreement and receive and retain
the Deposit (provided, however, that if the Company is then obligated to post
the Additional Deposit but has not done so, then Owner shall have a right to
receive the Initial Deposit and shall have a post termination damage claim
against the Company for the Additional Deposit and all expenses incurred by
owner in collecting same, including reasonable attorneys' fees). Upon such
termination, each party shall be released from all duties or obligations
contained herein except as may otherwise be expressly set forth in this
Agreement as surviving a termination of this Agreement, and the Title Company
shall immediately pay the Deposit to Owner as liquidated damages as the sole and
exclusive remedy of Owner, it being understood and agreed that Owner is hereby
releasing and/or waiving any right it might have to either specifically enforce
this Agreement or to sue for damages (other than to collect the Additional
Deposit, as aforesaid, if the same had not been delivered to the Title Company
when due). Owner has agreed to this liquidated damage provision because of the
difficulty of ascertaining Owner's actual damages given the uncertainties of the
real estate market, fluctuating property values and differences of opinion with
respect to such matters.

            Section 13.2 Default By Owner. If (i) any of the representations and
warranties made by Owner in this Agreement (as updated by Owner's Representation
Certificate) are

                                       26
<PAGE>

inaccurate or incorrect in any material respect on the date made or deemed made,
or (ii) if Owner fails to perform its covenants, obligations or agreements under
this Agreement and such failure is not cured on or before the earlier of ten
(10) days after written notice by the Company to Owner or the Closing Date, or
(iii) the Other Seller fails to perform its covenants, obligations or agreements
under the Other Contract and the Other Purchaser terminates the Other Contract
as a result of such failure, then the Company shall have the right, at its sole
option, to: (a) terminate this Agreement, whereupon the Deposit shall be
returned to the Company and neither party shall have any further right or
liability to the other under this Agreement except as may be otherwise expressly
set forth in this Agreement; (b) waive the default, misrepresentation or failure
to perform and proceed with the Closing without any adjustment or reduction in
the Purchase Price; or (c) receive the Deposit from the Title Company and pursue
an action for specific performance.

                                   ARTICLE XIV
                COORDINATION BETWEEN AGREEMENT AND OTHER CONTRACT

            Section 14.1 Coordination of the Sale of the Property and the Other
Property. Owner and the Company acknowledge and agree that (i) the Property and
the Other Property are intended to be sold together as part of a single
integrated transaction, (ii) as a matter of convenience only, the parties have
agreed sell the Property and the Other Property pursuant to the terms of two
separate agreements (consisting of this Agreement and the Other Contract),
rather than pursuant to a single agreement, and (iii) cross defaulting this
Agreement and the Other Contract pursuant to Sections 13.1 and 13.2 is intended
to further the intent of the parties to consummate the sale of the Property and
the Other Property as a single integrated transaction. If the Other Contract is
terminated by the Other Seller or Other Purchaser thereunder for any reason
pursuant to the terms of the Other Contract (including, without limitation, if
the Other Purchaser terminates the Other Contract prior to the end of the due
diligence period under the Other Contract pursuant to Article III of the Other
Contract), then (i) this Agreement shall automatically terminate on the date on
which such Other Contract is so terminated, (ii) if, as a result of such
termination of such Other Contract, the deposit thereunder is payable to the
Other Seller, then the Deposit (and all interest accrued thereon) shall be paid
to Owner, (iii) if, as a result of such termination of the Other Contract, the
deposit thereunder is payable to the Other Purchaser, then the Deposit (and all
interest accrued thereon) shall be paid to the Company and (iv) thereafter
neither Owner nor the Company shall any further rights or obligations hereunder,
other than those which expressly survive the termination of this Agreement.

            Section 14.2 Coordination of Closing Dates for the Sale of the
Property and the Other Property. Owner and the Company acknowledge that the
intent of the parties is that the Closing under this Agreement, and the closing
under the Other Contract, are all to occur simultaneously. If, as of any date,
the then current scheduled closing date under the Other Contract is, for any
reason, later than the then current scheduled Closing Date under this Agreement,
then and in such event, the scheduled Closing Date under this Agreement shall
automatically be adjourned to (and shall be) the then current scheduled closing
date under the

                                       27
<PAGE>

Other Contract. In furtherance of the foregoing, if the Other Seller or the
Other Purchaser has any right to adjourn the closing date under the Other
Contract and exercises such right, then the scheduled Closing Date under this
Agreement shall automatically be extended to the scheduled closing date under
the Other Contract.

                                   ARTICLE XV
                       DAMAGE, DESTRUCTION OR CONDEMNATION

            Section 15.1 Casualty. (a) If, between the date hereof and the
Closing, there shall occur a fire or other casualty affecting the Improvements
which is not a Major Casualty, then the Company shall have no right to terminate
this Agreement and shall purchase the Property in its damaged condition without
reduction of or offset against the Purchase Price or any other claim against
Owner. Owner shall assign to the Company the right to receive any insurance
proceeds payable to Owner as a result of such fire or other casualty (inclusive
of any rental interruption proceeds payable with respect to any period from and
after the Closing); provided, however, that Owner shall be entitled to retain
(to the extent theretofore paid to Owner), and shall not be obligated to assign
the right to receive (to the extent not theretofore paid to Owner), an amount of
such insurance proceeds equal to Owner's reasonable expenses, if any, incurred
in collecting such proceeds and repairing the damage caused by fire or other
casualty. For purposes hereof, a "MAJOR CASUALTY" means a fire in or other
casualty to the Improvements which causes damage or injury that the repair or
replacement cost of which would exceed Two Hundred Fifty Thousand and No/100
Dollars ($250,000.00), as determined by the professional retained by the Company
to perform a structural and/or physical inspection of the Property in connection
with the Company's acquisition of the Property pursuant to this Agreement.

            (b) If, between the date hereof and the Closing, there shall occur a
fire or other casualty affecting the Improvements which is a Major Casualty,
then the Company shall have the option, to be exercised by notice given to Owner
within ten (10) days after the Company has notice of such fir or other casualty,
to terminate this Agreement. If the Company shall so elect to terminate this
Agreement, then (i) the Company shall be entitled to the return of the Deposit
(and any interest thereon) and (ii) neither party hereto shall have any further
obligations or liabilities to the other with respect to the Property (or under
this Agreement), except for those which expressly survive the termination of
this Agreement. If the Company shall not elect to terminate this Agreement as
provided in this subsection (b), then this Agreement shall remain in full force
and effect with respect and the provisions of Section 15.1(a) above shall apply
to such damage and any insurance proceeds payable in connection therewith.

            (c) Subject to the provisions of Section 15.1(a) and the applicable
provisions of the Lease, Owner shall not have any obligation to repair any
damage or destruction to the Improvements

            Section 15.2 Condemnation or Taking. If, prior to the Closing, the
Property or any part thereof shall be condemned or taken and such condemnation
or taking materially

                                       28
<PAGE>

interferes with the existing business use of the Property, the Company may (a)
terminate this Agreement, or (b) complete the transactions contemplated by this
Agreement notwithstanding such condemnation. If the Company elects to complete
the transactions contemplated hereby, the Company shall be entitled to receive
the condemnation proceeds and Owner shall, at the Closing and thereafter,
execute and deliver to the Company all required assignments of claims and other
similar items. If the Company elects to terminate this Agreement, then upon
written notice to Owner and without further action of the parties, this
Agreement shall become null and void and no party shall have any rights or
obligations under this Agreement.

                                   ARTICLE XVI
                                     BROKERS

            Section 16.1 Brokers. Owner, on the one hand, and the Company, on
the other, hereby represent and warrant each to the other that it has not
authorized any broker, agent or finder to act on its behalf in connection with
the transaction contemplated by this Agreement except CB Richard Ellis and
Transwestern Commercial Services (the "BROKERS"), who have been engaged by Owner
pursuant to separate written agreements, and shall be paid by Owner, it being
agreed that the Company shall have no liability for any commissions, fees
payments or other sums payable to the Brokers or either of them. Each party
agrees that it shall indemnify, defend and save the other harmless from and
against any cost, expense, claim, loss, liability or damages, including
reasonable attorneys' fees and court costs, resulting from a breach of the
foregoing representation and warranty. The terms and provisions of this Section
16.1 shall survive the Closing or any earlier termination of this Agreement.

                                  ARTICLE XVII
                                  MISCELLANEOUS

            Section 17.1 Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given/received: (a) on the date delivered if delivered personally; (b) on
the date sent if sent by facsimile, with a copy sent by one of the other methods
of delivery described in this Section; (c) the next Business Day after deposit
with a recognized overnight courier service when marked for delivery on the next
Business Day; or (d) five (5) days after mailing if sent by registered or
certified United States mail, properly addressed and postage pre-paid, and
addressed to the party for whom it is intended at the address hereinafter set
forth:

            If to Owner :         Stonewater Dox Funding LLC
                                  c/o Drawbridge Special Opportunities Fund LLP
                                  1251 Avenue of the Americas LLC
                                  16th Floor
                                  New York, New York  10020
                                  Attn:  Dean Dakolias
                                  Fax: (212) 202-3685

                                       29
<PAGE>

      with a copy to each of :      Stonewater Partners
                                    237 Mamaroneck Avenue
                                    Suite 406
                                    White Plains, New York 10605
                                    Attn:  Jeff Toporek
                                    Fax: (914)-470-4011

                                    And

                                    Bryan Cave LLP
                                    1290 Avenue of the Americas
                                    New York, New York 10104
                                    Attn:  Sandor A. Green
                                    Fax:  (212) 541-1449

      If to the Company:            Gladstone Commercial Limited Partnership
                                    c/o Gladstone Commercial Corporation
                                    1521 Westbranch Drive
                                    Second Floor
                                    McLean, VA  22102
                                    Attn:  Mr. Christopher Massey
                                    Fax:  (703) 287-5801

      with a copy to:               Dickstein Shapiro Morin & Oshinsky LLP
                                    2101 L Street, N.W.
                                    Washington, D.C.  20037
                                    Attn: James D. Kelly, Esq.
                                    Fax:  202-887-0689

Either party may designate a change of address by written notice to the other in
accordance with the provisions set forth above, which notice shall be given at
least ten (10) days before such change of address is to become effective. The
attorney for either party may send notices on that party's behalf.

            Section 17.2 Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the respective personal representatives, heirs,
successors and assigns of the parties. Owner shall not have any right to assign
its rights or obligations under this Agreement without the prior written consent
of the Company. The Company shall have no right to assign its rights or
obligations under this Agreement without the prior written consent of Owner.
Notwithstanding the foregoing; Company may assign its rights and obligations
under this Agreement to any person or entity that is an affiliate of the
Company, without the consent of Owner, provided that (i) the Company is not
released from its liability hereunder, (ii) such assignee assumes all of the
obligations of the Company under this Agreement, (iii) the Company delivers a
copy of the assignment and assumption agreement to the Owner at or prior

                                       30
<PAGE>

to Closing, (iv) the assignee is a single purpose bankruptcy remote entity that
meets the requirements set forth in the Existing Loan Documents for the borrower
thereunder, and (v) such assignee has been approved by the holder of the
Existing Loan as the new borrower under the Existing Loan. As used herein, an
affiliate is a person or entity controlled by, under common with, or
controlling, another person or entity. Any assignment or attempted assignment of
this Agreement or the rights and obligations hereunder other than strictly in
accordance with the provisions of this Section 17.2 shall be null and void and
of no force or effect.

            Section 17.3 1031 Exchange. Owner hereby advises the Company that
the sale of the Property may be part of a tax-free exchange under Section 1031
of the Internal Revenue Code for Owner. The Company hereby agrees to take all
reasonable steps on or before the Closing Date to facilitate such exchange if
requested by Owner, provided that (a) the Company shall not be required to
acquire any substitute property, (b) such exchange shall not affect the
representations, warranties, liabilities and obligations of the parties to each
other under this Agreement, (c) the Company shall not incur any additional cost,
expense or liability in connection with such exchange, and (d) no dates in this
Agreement will be extended as a result thereof. Notwithstanding anything to the
contrary contained in the foregoing, if Owner so elects to close the transfer of
the Property as an exchange, then (i) Owner, at its sole option, may delegate
its obligations to transfer the Property under this Agreement, and may assign
its rights to receive the Purchase Price from the Company, to a deferred
exchange intermediary (an "INTERMEDIARY") or to an exchange accommodation
titleholder, as the case may be; (ii) such delegation and assignment shall in no
way reduce, modify or otherwise affect the obligations of Owner pursuant to this
Agreement; (iii) Owner shall remain fully liable for its obligations under this
Agreement as if such delegation and assignment shall not have taken place; (iv)
Intermediary or exchange accommodation titleholder, as the case may be, shall
have no liability to the Company; and (v) the closing of the transfer of the
Property to the Company shall be undertaken by direct deed from Owner to the
Company or to exchange accommodation titleholder, as the case may be.

            Section 17.4 Governing Law. This Agreement shall be construed and
enforced in accordance with the laws of the state in which the Property is
located, excluding conflicts of laws principles.

            Section 17.5 Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed to be an original, but all of
which together shall constitute one and the same instrument; provided, however,
in no event shall this Agreement be effective unless and until signed by all
parties hereto.

            Section 17.6 Further Assurances. In addition to the obligations
required to be performed hereunder by Owner and the Company at or prior to the
Closing, each party, from and after the Closing, shall execute, acknowledge
and/or deliver such other instruments, as may reasonably be requested in order
to effectuate the purposes of this Agreement; provided, however, that the
foregoing provisions of this Section 17.6 shall not obligate either party to

                                       31
<PAGE>

execute, acknowledge or deliver any instrument which would or might impose upon
such party any additional liability or obligations (beyond that imposed upon on
it under the documents delivered by such party at the Closing and the other
provisions of this Agreement which survive the Closing).

            Section 17.7 Recitals; Exhibits. Each and all of the recitals set
forth above and the exhibits attached hereto are hereby incorporated into this
Agreement by reference.

            Section 17.8 Rules of Construction. Section captions used in this
Agreement are for convenience only and shall not affect the construction of the
Agreement. All references to "Articles" and "Sections," without reference to a
document other than this Agreement are intended to designate articles and
sections of this Agreement, and the words "herein," "hereof," "hereunder" and
other words of similar import refer to this Agreement as a whole and not to any
particular Section, unless specifically designated otherwise. The use of the
term "including" shall mean in all cases "including but not limited to," unless
specifically designated otherwise. No rules of construction against the drafter
of this Agreement shall apply in any interpretation or enforcement of this
Agreement, any documents or certificates executed pursuant hereto, or any
provisions of any of the foregoing.

            Section 17.9 Time of Essence; Force Majeure. Time is important to
all parties in the performance of this Agreement, and the parties have agreed
that strict compliance is required as to any date set out in this Agreement.
Notwithstanding the foregoing, in the event that Owner or the Company shall be
delayed, hindered in or prevented from the performance of any act or obligation
required under this Agreement by reason of acts of God, strikes, lockouts, labor
troubles or disputes, inability to procure or shortage of materials or labor,
failure of power or utilities (that are not due to the negligence or willful
misconduct of Owner, the Company or their respective agents), delay in
transportation, fire, vandalism, accident, flood, severe weather, other
casualty, requirements imposed by Governmental Authorities, riot, insurrection,
civil commotion, sabotage, explosion, war, natural or local emergency, acts or
omissions of others, including the other party, or other reasons of a similar or
dissimilar nature not solely the fault of, or under the exclusive control of
such party, then performance of such act or obligation shall be excused for the
period of the delay and the period for the performance of any such act or
obligation shall be extended for the period equivalent to the period of such
delay. Provided, however, none of the Company's monetary obligations under this
Agreement shall be so excused or abated as a result of the provisions of this
Section 17.9.

            Section 17.10 Entire Agreement. This Agreement and the exhibits
attached hereto and thereto contain the entire agreement between the parties
relating to the Property, all prior negotiations between the parties, including,
without limitation, any letter of intent, access agreement and confidentiality
agreement (including all amendments or modifications thereof), are merged in
this Agreement, and there are no promises, agreements, conditions, undertakings,
warranties or representations, oral or written, express or implied, between them
other than as herein set forth. No change or modification of this Agreement
shall be valid unless the same is in writing and signed by the parties hereto.
No waiver of any of the

                                       32
<PAGE>

provisions of this Agreement and other agreements referred to herein shall be
valid unless in writing and signed by the party against whom it is sought to be
enforced.

            Section 17.11 No Third Party Beneficiary. This Agreement and each of
the provisions hereof are solely for the benefit of Owner and the Company and
their permitted assigns. No provisions of this Agreement, or of any of the
documents and instruments executed in connection herewith shall be construed as
creating in any person or entity other than Owner and the Company and their
permitted assigns any rights of any nature whatsoever

            Section 17.12 Severability. If any provision in this Agreement is
found by a court of competent jurisdiction to be in violation of any applicable
law, and if such court should declare such provision of this Agreement to be
unlawful, void, illegal or unenforceable in any respect, the remainder of this
Agreement shall be construed as if such unlawful, void, illegal or unenforceable
provision were not contained therein, and the rights, obligations and interests
of the parties hereto under the remainder of this Agreement shall continue in
full force and effect undisturbed and unmodified in any way.

            Section 17.13 Waiver of Trial by Jury. EACH PARTY HEREBY WAIVES,
IRREVOCABLY AND UNCONDITIONALLY, TRIAL BY JURY IN ANY ACTION BROUGHT ON, UNDER
OR BY VIRTUE OF OR RELATING IN ANY WAY TO THIS AGREEMENT OR ANY OF THE DOCUMENTS
OR CERTIFICATES EXECUTED IN CONNECTION HEREWITH, THE PROPERTIES, OR ANY CLAIMS,
DEFENSES, RIGHTS OF SET-OFF OR OTHER ACTIONS PERTAINING HERETO OR TO ANY OF THE
FOREGOING.

            Section 17.14 Attorneys' Fees. In the event that there shall be a
dispute under this Agreement resulting in the institution of any action or
proceeding by Owner or the Company against the other, the prevailing party shall
be entitle to receive from the other party reasonable attorneys' fees and
disbursements and all court costs and expenses incurred in connection with such
action or proceeding.

            Section 17.15 No Recording. Neither this Agreement nor any
memorandum hereof shall be recorded. Each party hereby agrees to indemnify and
hold harmless the others for all liabilities, losses, damages, liens, suits,
claims, costs and expenses (including reasonable attorneys' fees) incurred by
the others by reason of a breach of the foregoing covenant.

            Section 17.16 Survival. All representations, warranties, covenants,
agreements and indemnities set forth in or made pursuant to this Agreement and
any indemnification related thereto shall remain operative, and shall survive
the Closing under this Agreement, only with respect to claims made in writing
not later than twelve (12) months after the Closing.

                                  ARTICLE XVIII
                                 CONFIDENTIALITY

            Section 18.1 Public Announcements. Except as provided otherwise in
this Section 18.1, Owner and the Company hereby agree that they will not, and
shall direct their

                                       33
<PAGE>

respective employees, officers, agents and representatives not to, directly or
indirectly, release or cause or permit to be released to the public prior to the
Closing any press notices, publicity (oral or written) or advertising promotion
relating to, or otherwise publicly announce or disclose or cause or permit to be
publicly announced or disclosed, in any manner whatsoever, the terms, conditions
or substance of this Agreement or the transactions contemplated herein, without
first obtaining the consent of the Company and the Owner, which consent shall
not be unreasonably withheld. It is understood that the foregoing shall not (i)
preclude any party from discussing the substance or any relevant details of the
transactions contemplated in this Agreement on a confidential basis with any of
its partners, attorneys, officers, directors, employees, accountants,
professional consultants, financial advisors, rating agencies, or potential
lenders, as the case may be (the "REPRESENTATIVES") provided that such
Representatives have been informed of the parties' obligations hereunder and the
obligations of the parties under securities laws with respect to disclosure of
information and trading in the stock of Company or its Affiliates or (ii)
prevent it from complying with applicable laws, including, without limitation,
governmental regulatory, disclosure, tax and reporting requirements. Owner and
the Company shall each have the right to seek and obtain equitable relief to
enforce the provisions of this Article XVIII.

      IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the day and year first above written.

WITNESS:                          OWNER:

                                  STONEWATER  DOX  FUNDING  LLC,  a Delaware
                                  limited  liability company

By:    ________________________   By:    ___________________________________
Name:  ________________________   Name:  ___________________________________
Title: ________________________   Title: Authorized Signatory

                                  THE COMPANY:

                                  GLADSTONE COMMERCIAL LIMITED
                                  PARTNERSHIP, a Delaware limited partnership

                                  By: Gladstone Commercial Partners, LLC

                                      By: Gladstone Commercial Corporation

By:    ________________________       By: __________________________________
Name:  ________________________       Name: Robert J. Corry
Title: ________________________       Title: Principal and Managing Director

                                       34
<PAGE>

                                    EXHIBIT A

                          LEGAL DESCRIPTION OF THE LAND

The land referred to in this policy is described as follows:

TRACT 1:

Lot 4 in Final Plat of Lot 4 of Par 3 Development Subdivision, as per Plat
recorded as Document 98R 28668, situated in Champaign County, Illinois.

TRACT 2:

Lots 5 and 6 of Final Plat of Lots 5, 6 and 7 of Par 3 Development Subdivision,
a subdivision in the City of Champaign, Champaign County, Illinois, as per plat
recorded July 10, 1996 in Plat Book "CC" at page 185 as Document 96R 17100.

TRACT 3:

Lot 7 of Final Plat of Lots 5, 6 and 7 of Par 3 Development Subdivision, a
subdivision in the City of Champaign, Champaign County, Illinois, as per plat
recorded July 10, 1996 in Plat Book "CC" at page 185 as Document 96R 17100.

TRACT 4:

Lot 3 of Final Plat of Lot 3 Par 3 Development Subdivision recorded as Document
98R 14068, situated in Champaign County, Illinois.

<PAGE>

                                   EXHIBIT 1.4

                             EXISTING LOAN DOCUMENTS

1.    Agreement regarding required insurance between Owner and Wells Fargo Bank,
      National Association

2.    Assignment of Management Contracts

3.    Cash Management Agreement

4.    Guarantor Release Agreement

5.    Lender's Instructions to Escrow Agent

6.    Letter for Guarantor Release

7.    Limited Guaranty by Drawbridge Special Opportunity Funds LP

8.    Limited Guaranty by Drawbridge Special Opportunity Funds LP, Stonewater
      Funding LLC, and Stonewater Partners, Inc.

9.    Limited Guaranty by Stonewater Funding LLC

10.   Limited Guaranty by Stonewater Partners Inc.

11.   Letter re: Loan Securitization and Sale

12.   Mortgage and Absolute Assignment of Rents and Leases and Security
      Agreement

13.   Payment direction letter to Tenant

14.   Payment method agreement made by Owner

15.   Promissory Note Secured by Mortgage

16.   Subordination Agreement and Non-Disturbance and Attornment Agreement

17.   UCC Financing Statement with respect to mortgage

18.   Estoppel Certificate

19.   Wells Fargo Letter re: Satisfaction of Contingent Terms Pursuant to
      Approved Property Expansion

<PAGE>

                                   EXHIBIT 1.8

                              DESCRIPTION OF LEASES

            Lease, dated September 19, 1996, between Stonewater Dox Funding LLC
(successor-in-interest to Par 3 Development, L.L.C.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 2101 Fox Drive,
Champaign, Illinois, as amended by that certain First Addendum to Lease, dated
February 25, 1999, and as further amended by that certain Addendum Number Two to
Lease, dated December 22, 2000.

            Lease, dated January 29, 1996, between Stonewater Dox Funding LLC
(successor-in-interest to Par 3 Development, L.L.C.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 2109 Fox Drive,
Champaign, Illinois, as amended by that certain First Addendum to Lease, dated
February 25, 1999, and as further amended by that certain Addendum Number Two to
Lease, dated December 22, 2000.

            Lease, dated September 19, 1996, between Stonewater Dox Funding LLC
(successor-in-interest to Par 3 Development, L.L.C.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 2201 Fox Drive,
Champaign, Illinois, as amended by that certain First Addendum to Lease, dated
February 25, 1999, and as further amended by that certain Addendum Number Two to
Lease, dated December 22, 2000.

            Lease, dated February 25, 1999, between Stonewater Dox Funding LLC
(successor-in-interest to Par 3 Development, L.L.C.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 2215 Fox Drive,
Champaign, Illinois, as amended by that certain Addendum Number One to Lease,
dated December 22, 2000.

            Lease, dated December 22, 2000, between Stonewater Dox Funding LLC
(successor-in-interest) to Par 3 Development, L.L.C.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 2301 Fox Drive,
Champaign, Illinois, as amended by that certain Addendum No. 1 to Lease, dated
September 18, 2001, as further amended by that certain Amendment to Lease, dated
September 14, 2004, and as further amended by that certain Addendum No. 2 to
Lease, dated February 25, 2005.

<PAGE>

                                   EXHIBIT 2.2

                            FORM OF ESCROW AGREEMENT

      This Escrow Agreement (this "AGREEMENT") is made and entered into this ___
day of November, 2005, among STONEWATER DOX FUNDING LLC, a Delaware limited
liability company ("OWNER"), and GLADSTONE COMMERCIAL LIMITED PARTNERSHIP, a
Delaware limited partnership (the "COMPANY"), and FIRST AMERICAN TITLE INSURANCE
COMPANY ("ESCROW AGENT"). Reference is made to that certain Purchase Agreement
dated as of November __, 2005 (the "CONTRACT"), between Owner and the Company.
The defined terms used in this Agreement shall have the meanings set forth in
the Contract.

      The Company and Owner have agreed to select Escrow Agent to serve as
escrow agent with respect to the Deposit to be made by the Company pursuant to
the Contract. The purpose of this Agreement is to prescribe instructions
governing the services of Escrow Agent with respect to the Deposit and the
Closing.

      1. Owner and the Company hereby engage Escrow Agent to serve as escrow
agent with respect to the Deposit made by the Company pursuant to the terms of
the Contract, a copy of which has been delivered to and received by Escrow
Agent. Escrow Agent hereby accepts such engagement.

      2. Escrow Agent acknowledges receipt of the Deposit and agrees to place
the Deposit into an interest-bearing escrow account and to notify the Company
and Owner of the location and number of such interest-bearing account. Interest
shall be maintained in the escrow account as a part of the Deposit and credited
to the Company for tax purposes. The Company's Federal Taxpayer Identification
Number is 91-2198700.

      3. Escrow Agent shall disburse the Deposit and any interest earned thereon
in accordance with the terms and conditions of the Contract, provided that
Escrow Agent shall first give each party ten (10) days written notice in
accordance with Section 17.1 of the Contract of Escrow Agent's intent to
disburse, and upon receipt of written objection to such disbursement by either
party, Escrow Agent shall act in accordance with Section 4 herein. At the time
of the Closing, if any, if the Deposit has not been disbursed previously in
accordance with the Contract, then Escrow Agent shall disburse the Deposit and
interest thereon to Owner to be credited against the Purchase Price.

      4. In the event that there is a dispute regarding the disbursement or
disposition of the Deposit or the interest earned thereon, or in the event
Escrow Agent shall receive conflicting written demands or instructions with
respect thereto, then Escrow Agent shall withhold such disbursement or
disposition until notified by both parties that such dispute is resolved or
Escrow Agent may file a suit of interpleader at the cost and expense of Owner
and the Company.

<PAGE>

      5. Escrow Agent shall not be liable for any damage, liability or loss
arising out of or in connection with the services rendered by Escrow Agent
pursuant to this Agreement unless the same results from the negligence, gross
negligence, or willful misconduct of Escrow Agent.

      6. Copies of all notices given by any party hereunder shall be delivered
in person or mailed, postage prepaid, to all other parties hereto, to the
following addresses:

         (1)  If to the Company        Gladstone Commercial Limited Partnership
                                       c/o Gladstone Commercial Corporation
                                       1521 Westbranch Drive
                                       Second Floor
                                       McLean, VA  22102
                                       Attn:  Mr. Christopher Massey
                                       Fax:  (703) (703) 287-5801

              with a copy to:          Dickstein Shapiro Morin & Oshinsky LLP
                                       2101 L Street, N.W.
                                       Washington, D.C.  20037
                                       Attn:  James D. Kelly, Esq.
                                       Fax: (202) 887-0689

         (2)  If to the Owner:         Stonewater Dox Funding LLC
                                       c/o Drawbridge Special Opportunities Fund
                                       LLP
                                       1251 Avenue of the Americas LLC
                                       16th Floor
                                       New York, New York  10020
                                       Attn:  Dean Dakolias
                                       Fax: (212) 202-3685

              with a copy to each of:  Stonewater Partners
                                       237 Mamaroneck Avenue
                                       Suite 406
                                       White Plains, New York 10605
                                       Attn:  Jeff Toporek
                                       Fax: (914)-470-4011

                                       and

                                       Bryan Cave LLP
                                       1290 Avenue of the Americas
                                       New York, New York  10104
                                       Attn: Sandor A. Green
                                       Fax: 212-541-1449

                                        2
<PAGE>

      7. The instructions contained herein may not be modified, amended or
altered in any way except by a writing (which may be in counterpart copies)
signed by Owner, the Company and Escrow Agent. Notices for Owner and the Company
may be given by the respective attorneys for each such party.

      8. The Company and Owner reserve the right, at any time and from time to
time, to jointly substitute a new escrow agent in place of Escrow Agent.

      9. This Agreement is intended solely to supplement and implement the
provisions of the Contract and is not intended to modify, amend or vary any of
the rights or obligations of the Company or Owner under the Contract.

      10. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument; provided, however, in no event shall
this Agreement be effective unless and until signed by all parties hereto.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK]
                      [SIGNATURES FOLLOW ON THE NEXT PAGE]

                                        3
<PAGE>

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

WITNESS:                         OWNER:

                                 STONEWATER DOX FUNDING LLC,
                                 a Delaware limited liability company

By:    __________________        By:    _______________________________________
Name:  __________________        Name:  _______________________________________
Title: __________________        Title: Authorized Signatory

                                 THE COMPANY:

                                 GLADSTONE COMMERCIAL LIMITED
                                 PARTNERSHIP, a Delaware limited partnership

                                 By: Gladstone Commercial Partners, LLC

                                     By: Gladstone Commercial Corporation

By:     __________________               By:    _______________________________
Name:   __________________               Name:  Robert J. Corry
Title:  __________________               Title: Principal and Managing Director

                                 ESCROW AGENT:

                                 FIRST AMERICAN TITLE INSURANCE COMPANY

                                 By:    _______________________________________
                                 Name:  Michael Hillman
                                 Title: Vice President

                                        4
<PAGE>

                                  EXHIBIT 3.2.1

                     DOCUMENTS PREVIOUSLY DELIVERED BY OWNER

<TABLE>
<CAPTION>
                                                                                        Date Sent   Format
                                                                                        ---------   ------
<S>                                                                                     <C>         <C>
Loan Documents:
Agreement  regarding required  insurance between Owner and Wells
Fargo Bank,  National Association                                                        10/17      PDF
Assignment of Management Contracts                                                       10/17      PDF
Cash Management Agreement                                                                10/17      PDF
Guarantor Release Agreement                                                              10/17      PDF
Lender's Instructions to Escrow Agent                                                    10/17      PDF
Letter for Guarantor Release                                                             10/17      PDF
Limited Guaranty by Drawbridge Special Opportunity Funds LP                              10/17      PDF
Limited Guaranty by Drawbridge Special Opportunity Funds LP, Stonewater Funding
LLC, and Stonewater Partners Inc.                                                        10/17      PDF
Limited Guaranty by Stonewater Funding LLC                                               10/17      PDF
Limited Guaranty by Stonewater Partners Inc.                                             10/17      PDF
Letter re: Loan Securitization and Sale                                                  10/17      PDF
Mortgage and Absolute Assignment of Rents and Leases and Security Agreement              10/17      PDF
Payment direction letter to Tenant                                                       10/17      PDF
Payment method agreement made by Owner                                                   10/17      PDF
Promissory Note Secured by Mortgage                                                      10/17      PDF
Subordination Agreement and Non-Disturbance and Attornment Agreement                     10/17      PDF
UCC Financing Statement with respect to mortgage                                         10/17      PDF
Estoppel Certificate                                                                     10/17      PDF
Wells Fargo Letter re:  Satisfaction of Contingent Terms Pursuant to Approved Property   10/17      PDF
Expansion

Leases:
2101 Fox Drive Lease                                                                     10/17      PDF
         First Addendum to Lease (2101 Fox Drive)                                        10/17      PDF
         Addendum Number Two to Lease (2101 Fox Drive)                                   10/17      PDF
2109 Fox Drive Lease                                                                     10/17      PDF
         First Addendum to Lease (2109 Fox Drive)                                        10/17      PDF
         Addendum Number Two to Lease (2109 Fox Drive)                                   10/17      PDF
2201 Fox Drive Lease                                                                     10/17      PDF
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                      <C>        <C>
         First Addendum to Lease (2201 Fox Drive)                                        10/17      PDF
         Addendum Number Two to Lease (2201 Fox Drive)                                   10/17      PDF
2215 Fox Drive Lease                                                                     10/17      PDF
         Addendum Number One to Lease (2215 Fox Drive)                                   10/17      PDF
2301 Fox Drive Lease                                                                     10/17      PDF
         Addendum No. 1 to Lease (2301 Fox Drive)                                        10/17      PDF
         Addendum to Lease (2301 Fox Drive)
         Addendum No. 2 to Lease (2301 Fox Drive)                                        10/17      PDF

Property:
Survey                                                                                   10/17      PDF
Final Plat                                                                               10/17      PDF
Owner's Certificate of Dedication-Addendum 1a                                            10/17      PDF
Owner's Certificate of Dedication-Addendum 1b                                            10/17      PDF
Owner's Certificate of Dedication-Addendum 1c                                            10/17      PDF
Certificates of Occupancy                                                                10/17      PDF
Insurance Certificates                                                                   10/17      PDF

Third Party Reports:
PZR Zoning Report                                                                        10/17      PDF
Phase I Environmental Site Assessment                                                    10/17      PDF
Property Condition Report                                                                10/17      PDF
Mold Checklist                                                                           10/17      PDF

Title:
UCC Financing Statement with respect to mortgage                                         10/17      PDF
Creditors' Rights Affidavit                                                              10/17      PDF
Partial Release and Termination Documents                                                10/17      PDF
Owner's Policy of Title Insurance                                                        10/17      PDF
Unanimous Writing in Lieu of Meeting of the Members of Par 3 Development, L.L.C.         10/17      PDF
Owner's Authorization Certificate for Acquisition and Loan                               10/17      PDF

Budget:
2005 Monthly Budget                                                                      10/17      XLS
2004 Monthly Budget                                                                      10/17      XLS
Amdocs 2004 Budget Reconciliation                                                        10/17      XLS
</TABLE>

                                        2
<PAGE>

                                  EXHIBIT 3.2.2

              SCHEDULE OF DOCUMENTS TO BE DELIVERED TO THE COMPANY

(1) The Lease, including without limitation, amendments, side letters, option
exercise letters and other documents, certificates or instruments applicable to
the Lease, subleases or similar instruments pursuant to which a person occupies
the Property; and copies of all pending lease proposals.

(2) A current rent roll, certified as accurate by Owner's chief financial
officer or an equivalent officer or official, together with all correspondence
between Owner and Tenant with regard to the Lease and Tenant's occupancy of the
Property.

(3) Existing studies, reports and appraisals, if any, relating to the Property
and in the possession and/or control of Owner.

(4) Financial information for Tenant.

(5) Full year 2004-2006 operating budget for and with respect to the Property,
together with financial information and records for the Property (including,
without limitation, financial statements, containing, at a minimum, statements
of profit and losses and balance sheets) for the last three (3) calendar years,
together with the books and records for the Property, including historical
property and operating statements, tax bills, capital expenditure records,
renovation budget(s) and maintenance records of the Property. Such statements
shall properly reflect the profit and loss from the management, leasing,
maintenance, repair and operation of the Property for three (3) years.

(6) Zoning reports.

(7) As-built plans and specifications for the Improvements on the Property, to
the extent reasonably available.

(8) Copies of all contracts, agreements, equipment leases, service and
maintenance agreements, and vendor contracts related to the Property.

(9) Copies of Owner's existing title policy for the Property, together with a
complete legal description and legible copies of all documents referred to in
the title reports or policies.

(10) Copies of existing "as-built" surveys of the Property, any readily
available topographical information and traffic studies in Owner's or its
property manager's possession.

(11) All environmental reports and studies in Owner's possession (including,
without limitation, all analytical data, remediation design, modeling, boring
logs, correspondence, directives, submissions and responses to or from
Governmental Authorities and environmental consultants) and notices and asbestos
reports and all reports, proposals and/or notices relating

<PAGE>

to the physical condition of the Property, including, without limitation, any
soils reports, engineering, architectural or other structural reports or studies
and similar data relating to the Property in Owner's possession.

(12) Existing fire and casualty insurance policies (or summaries thereof) and
current certificates evidencing such coverage.

(13) All information concerning any pending real estate tax assessment appeals,
protests and proceedings.

(14) All agreements relating to leasing commissions affecting the Property, and
a list of leasing commissions to be discharged by Owner.

(15) Copies of all of the Existing Loan Documents.

(16) Copies of all construction contracts or other agreements to which Owner or
its agent is a party relating to ongoing construction work, repairs or
renovations being done to any Improvements at the Property.

(17) Copies of all agreements, proffers, if any, and other non-public documents
relating to land use restrictions or other conditions limiting or otherwise
affecting development of the Property.

(18) Copies of all unexpired warranties and guaranties covering the personal
property and the roof, elevators, heating and air conditioning systems and any
other components of the Improvements, and a list and description of any material
third party bonds, warranties and guaranties which will be in effect after the
Closing with respect to the Property, including, without limitation, the
Improvements.

(19) Copies of all certificates of occupancy, approvals, licenses and permits.

(20) Copies of any and all written claims, demands or notices from any third
party which concern or otherwise affect the Property received by Owner during
the prior three (3) years, or earlier if unresolved, including, without
limitation, written notice of potential litigation, written notices from any
Governmental Authority, copies of any reports issued by the local Fire Marshal
regarding inspection of the Improvements during Owner's ownership of the
Property and a list of major repairs (excluding tenant improvements) and major
casualties occurring during Owner's ownership of the Property, together with any
internal lists of claims or anticipated litigation related to the Property
prepared by or on behalf of Owner.

(21) True and complete copies of Owner's organizational documents, as well as
any fictitious name or similar filings, including all amendments to the
foregoing, certified as true and complete.

                                        2
<PAGE>

(22) All of the records of the architects, engineers and consultants related to
the Property in Owner's possession or in the possession of such architects,
engineers and consultants.

                                        3
<PAGE>

                                   EXHIBIT 4.1

                              PERMITTED EXCEPTIONS

1.    The state of facts shown on survey dated October 31, 2003, as last revised
      November 14, 2003, made by HDC Engineering, Project #03344.

2.    Taxes for the year 2005, which are a lien although not yet due & payable.

    City of Champaign Township, 45-20-24-326-020, Tax Code 60. (Tract 1).
    City of Champaign Township, 45-20-24-326-011, Tax Code 2. (part of Tract 2).
    City of Champaign Township, 45-20-24-326-012, Tax Code 2. (part of Tract 2).
    City of Champaign Township, 45-20-24-326-013, Tax Code 2. (Tract 3).
    City of Champaign Township, 45-20-24-326-016, Tax Code 60. (Tract 4).

3.    The land lies within the boundaries of Phinney Branch Mutual Drainage
      District. (Tracts 1-4).

4.    Easement in favor of Illinois Power Company, and its successors and
      assigns, and the provisions relating thereto contained in the grant
      recorded December 23, 1992 in book 1876 at page 506 as document no. 92R
      36921, affecting the North 10 feet of Lot 7 and other land. (Tract 3).

5.    Easement in favor of the City of Champaign, and its successors and
      assigns, and the provisions relating thereto contained in the grant
      recorded July 10, 1996 in book 2424 at page 500 as document no. 96R 17099.
      (Tract 1).

6.    Covenants, restrictions, easements and building setback lines contained in
      the Owner's Certificate attached to and as shown on the Final Plat of Lots
      5, 6 and 7 of Par 3 Development Subdivision recorded July 10, 1996 in book
      "CC" at page 185 as document no. 96R 17100, as amended by First Addendum
      dated November 1, 2003 and recorded November 25, 2003 as document 2003 R
      52074 which does not contain a reversionary or forfeiture clause. (Tracts
      2 and 3).

7.    Terms and provisions of an Annexation Agreement as disclosed by instrument
      recorded July 23, 1996 in book 2428 at page 782 as document no. 96R 18251.
      (Tracts 1-4).

            Amendment No. 1 recorded February 14, 1997 as document no. 97R 3279.
            Amendment No. 2 recorded January 14, 1998 as document no. 98R 1024.
            Amendment No. 3 recorded June 15, 2000 as document no. 2000R 12962.

8.    Easement in favor of Illinois Power Company, and its successors and
      assigns, and the provisions relating thereto contained in the grant
      recorded September 3, 1996 in book

<PAGE>

      2443 at page 169 as document no. 96R 22014, affecting a strip of land 10
      feet in width over Lot 5. (Tract 2, Lot 5).

9.    Covenants, restrictions, easements and building setback lines contained in
      the Owner's Certificate attached to and as shown on the Final Plat of Lot
      3 of Par 3 Development Subdivision recorded May 18, 1998 as document no.
      98R 14068, as amended by First Addendum dated November 1, 2003 and
      recorded on November 25, 2003 as document 2003 R 52075, which does not
      contain a reversionary or forfeiture clause. (Tract 4).

10.   The right of tenants, as tenants only with no right or option to purchase
      or right of first refusal.

11.   Mortgage, Absolute Assignment of Rents and Leases and Security Agreement
      (and Fixture Filing) dated November 21, 2003 and recorded November 25,
      2003 as document 2003 R 52081 made by Stonewater DOX Funding LLC to Wells
      Fargo Bank, National Association, to secure a note for $10,000,000.

12.   UCC-1 Financing Statement filed by Wells Fargo Bank N.A., as secured
      party, against Stonewater Dox Funding L.L.C., as debtor on December 30,
      2003 under filing number 200312305627857.

                                        2
<PAGE>

                                  EXHIBIT 4.2.1

                  TITLE INSURANCE REQUIREMENTS AND ENDORSEMENTS

      This Memorandum will provide you with a checklist of standard title
insurance requirements for projects being acquired by Gladstone Commercial
Corporation, or an affiliated company ("GCC"). Additional or different
requirements may be specified for your particular transaction.

      1.    GENERAL:

            (a) The maximum single risk assumed by any single title insurer may
not exceed 25% of that company's capital, surplus and statutory reserves. Excess
amounts may be covered by appropriate reinsurance arrangements with other
acceptable title insurance companies.

            (b) The title insurance policy must be written by an insurer that
has an acceptable rating from at least one of the following independent rating
agencies:

            - a "Financial Stability Rating" of "S" (Substantial) or better or a
"Statutory Accounting Rating" of "C" (Average) or better from Demotech, Inc.;

            - a "BBB" or better rating from Duff and Phelps Credit Rating
Company;

            - a "C" or better rating from LACE Financial Corporation;

            - a "Baa" or better rating from Moody's Investors Service; or

            - a "BBB" or better rating from Standard and Poor's, Inc.

            (c) Each title insurance policy must be written by an insurer
authorized to do business in the jurisdiction where the property is located.

            (d) Subject to the satisfaction of other requirements set forth
herein, GCC will accept the standard 1992 ALTA form of loan title insurance
policy or the 1990, 1987 or 1970 (amended October 17, 1970, and October 17,
1984) form of owner's policies. GCC must receive and approve a commitment and a
pro forma owner's title insurance policy. Copies of all documents and/or surveys
referred to in the legal description or in the exceptions in Schedule B-I must
be submitted with the commitment. The title insurance company must remove (by
endorsement or written waiver) any creditors' rights exception or exclusion.

            (e) If the 1990 or 1987 ALTA form of policy or a policy containing
similar arbitration provisions is used, the title insurance company must agree
that the compulsory arbitration provisions of the policy do not apply for any
claims by or on behalf of the insured.

            (f) The policy must include an Environmental Protection Lien
Endorsement (ALTA Form 8.1). Subparagraph (b) of ALTA Form 8.1 may take
exception for an entire state statute that provides for environmental protection
liens that could take priority, only if specific sections or subsections are
referenced. A reference solely to a general statute is acceptable only

<PAGE>

if approved in writing by GCC prior to closing. If no such statutes exist,
"None" should be entered in the space below subparagraph (b).

            (g) The policy must include a Comprehensive Endorsement (ALTA Form
9).

      2. SCHEDULE A - DESCRIPTION:

            (a) The amount of the title insurance policy must equal at least the
original purchase price of the property.

            (b) The effective date of the title policy must be as of the date
(and time, where available) of the recordation of the Deed.

            (c) The policy must name as the insured the entity designated by GCC
as the owner.

            (d) Schedule A must include a description of the Deed, with the
complete name of the instrument, the date of execution, recordation date and
recordation information.

            (e) The legal description of the property in the title insurance
policy must precisely conform to that shown on the survey of the property.
Alternatively, the title insurance policy may be endorsed to provide that the
legal description is the same as shown on the survey.

            (f) Any appurtenant easements (such as access or utility easements)
must be set forth in the legal description and affirmatively insured under
Schedule A as a separate insured interest in land.

            (g) The title insurance policy must include, as an informational
note, in Schedule A (i) the recorded plat number (and recording information), if
any, and (ii) the property parcel number(s) or tax identifying number(s), as
applicable, for the property, if such numbers are available in the jurisdiction
in which the property is located.

      3. SCHEDULE B-I - TITLE EXCEPTIONS:

            (a) Standard exceptions (such as for parties in possession, other
matters not shown on public records and for filed and unfiled mechanics' and
materialmen's liens) must be deleted.

            (b) The title insurance company must remove (by endorsement or
written waiver) any creditor's rights exception to or exclusion from the title
insurance policy.

            (c) If the title insurance policy includes any exception for taxes,
assessments or other lienable items, it must expressly insure that such taxes,
assessments or items are not yet due and payable.

                                        2
<PAGE>

            (d) The title insurance policy must contain no exception for any
filed or unfiled mechanics' or materialmen's liens.

            (e) The standard survey exception to the title policy, if any, must
be deleted. Exceptions to specific matters shown in a recorded plat must be
specifically described and affirmative coverage must be obtained for any matters
listed.

            (f) Any lien, encumbrance, condition, restriction or easement must
be included in the policy and must be described in sufficient detail so that its
nature, width and location, as applicable is readily discernible in the written
description. All exceptions which regard easement rights of others to the
property must be listed as an "Easement ...". The policy must affirmatively
insure that improvements do not encroach upon the listed easements or
affirmatively insure against loss or damage due to such encroachment.

            (g) All easements listed in Schedule B-I must appear on the survey
noted by deed book and page number. If Schedule B-I indicates the presence of
any easements that are not specifically located, the title policy must provide
affirmative insurance against any loss resulting from the exercise by the holder
of such easement of its right to use or maintain that easement.

      4. SCHEDULE B-II - SUBORDINATE MATTERS:

            Tenants in possession under unrecorded leases must be listed as such
on Schedule B, Part II or included as an exception in Schedule B, Part I as
"rights of tenants in possession as of the date hereof, as tenant's only, under
unrecorded leases."

      5. REQUIRED ENDORSEMENTS:

            (a) ALTA 9 Comprehensive Endorsement

            (b) Survey Endorsement

            (c) ALTA 3.1 Zoning Endorsement (with additional coverage for number
and type of parking spaces)

            (d) Doing Business Endorsement (as applicable)

            (e) Access Endorsement

            (f) Separate Tax Lot Endorsement

            (g) Environmental Protection Lien Endorsement

            (h) Subdivision Endorsement

            (i) Contiguity Endorsement

                                        3
<PAGE>

            (j) Creditor's Rights Endorsement (as applicable)

            (k) Tax Deed Endorsement (as applicable)

            (l) Mechanics' Lien Endorsements (as applicable)

            (m) Non-Imputation Endorsement (as applicable)

            (n) Fairways Endorsement (as applicable)

            (o) Condominium Endorsement (as applicable)

                                        4
<PAGE>

                                  EXHIBIT 4.2.2

                        [FORM OF SURVEYOR CERTIFICATION]

      [NAME], a registered land surveyor, License No. [NUMBER], in and for the
State of __________ and legally doing business in __________ County, does hereby
certify to Gladstone Commercial Corporation, a Delaware corporation, its
successors and assigns] and [TITLE COMPANY] and [LENDER]:

1. The accompanying survey ("SURVEY") represents a true and correct survey made
by me on ________________, 200_ of the land therein particularly described.

2. The Survey and the information, courses and distances shown thereon are
correct.

3. The title lines and lines of actual possession are the same.

4. The land described in the Survey is the same as described in the title
insurance commitment described below.

5. The area of the subject property and the size, location and type of buildings
and improvements and any other matters situated on the subject property are as
shown and all buildings and improvements are within the boundary lines and
applicable set-back lines of the property.

6. There are no violations of zoning ordinances, restrictions or other rules and
regulations with reference to the location of said buildings and improvements.

7. There are no easements or uses affecting this property appearing from a
careful physical inspection of the same, other than those shown and depicted on
the Survey.

8. There are no encroachments on the adjoining properties, streets, or alleys by
any of said buildings, structures and improvements, other than as shown on the
Survey.

9. There are no party walls or visible encroachments on said described property
by streets, alleys or buildings, structures or other improvements situated on
adjoining property, except as shown on the Survey.

10. All utility services required for the operation of the premises either enter
the premises through adjoining public streets, or the Survey shows the point of
entry and location of any utilities that pass through or are located on
adjoining land.

11. The Survey shows the location and direction of all visible storm drainage
systems for the collection and disposal of all roof and surface drainage.

12. Any discharge into streams, rivers or other conveyance system is shown on
the Survey.

<PAGE>

13. The subject property [INSERT "DOES" OR "DOES NOT"] lie within a Special
Flood Hazard Area ("SFHA") as defined by the Federal Emergency Management
Agency; the property lies within Zone(s) __________ [ONLY ZONES WITH PREFIXES OF
"A" OR "V" ARE IN SFHAS] of the Flood Insurance Rate Map identified as Community
Panel No. ____________, bearing an effective date of ________________.

14. The subject property has access to and from a duly dedicated and accepted
public street or highway [IF NOT, SO STATE].

15. [EXCEPT AS SHOWN ON THE SURVEY,] the subject property does not serve any
adjoining property for drainage, utilities or ingress or egress.

16. The record description of the subject property forms a mathematically closed
figure [IF NOT, SO STATE].

17. The undersigned has received and examined a copy of [COMPANY] Title
Company's Commitment No. [NUMBER]; and the location of any matter shown thereon,
to the extent it can be located, has been shown on this Survey with the
appropriate recording reference.

18. The parties listed above are entitled to rely on the survey and this
certificate as being true and accurate.

19. This Survey is made in accordance with the 1999 "Minimum Standard Detail
Requirements for Land Title Surveys" jointly established and adopted by American
Land Title Association ("ALTA") and American Congress on Surveying and Mapping
("ACSM") and meets the requirements of an Urban Survey, as defined in the
current accuracy standards jointly adopted by ALTA and ACSM and includes items
1, 2, 3, 4, 6, 7(a,b,&c), 8, 9, 10, 11(a), 13 (including uses), 14, 15, and 16
of Table A thereof.

20. [IF THE CERTIFICATE IS ATTACHED TO RATHER THAN TYPED OR OTHERWISE REPRODUCED
ON THE FACE OF THE SURVEY, ADD A PARAGRAPH SPECIFICALLY IDENTIFYING THE SURVEY
(SUCH AS BY DATE, PROPERTY DESCRIPTION AND SURVEY NUMBER) TO WHICH THE
CERTIFICATE RELATES.]

                                 _______________________________________________
                                 [SIGNATURE]

                                 _______________________________________________
                                 [TYPE NAME OF SURVEYOR BELOW SIGNATURE LINE]

                                 Registration No. ______________________________

Date: _______________________
[SEAL]

                                        2
<PAGE>

                                 EXHIBIT 5.1(IV)

                             EXISTING LOAN BALANCES

<TABLE>
<S>                                                   <C>
Loan Balance                                          $ 9,772,861.03
Tax Reserve                                           $    58,724.72
Insurance Reserve                                     $     8,115.45
</TABLE>

<PAGE>

                                 EXHIBIT 11.1(b)

                                  FORM OF DEED

                              SPECIAL WARRANTY DEED

      THE GRANTOR, STONEWATER DOX FUNDING LLC., a Delaware limited liability
company, for and in consideration of TEN DOLLARS ($10,00), and other good and
valuable consideration in hand paid, GRANTS, BARGAINS and SELLS to the GRANTEE,
____________________________________, a _______________________ the following
described real estate situated in the County of Champaign, in the State of
Illinois:

      See Exhibit A, attached hereto and incorporated herein by reference.

      Subject to the items listed on Exhibit B attached hereto and incorporated
herein by reference.

      The property described herein and conveyed hereby is not homestead
property pursuant to the laws of the State of Illinois.

      To have and to hold, the above granted premises unto the said Grantee
forever.

      And Grantor hereby covenants, promises and agrees to and invites Grantee,
and its successors and assigns, that (a) Grantor has not done or suffered to be
done anything whereby the property herein granted is, or may be, in any manner
encumbered to changed, except as herein recited, and (b) Grantor will warrant
and forever defend the described property against all persons lawfully claiming,
or to claim the same of acts done to encumber the property by, through and under
the Grantor.

WITNESS:                         GRANTOR:

                                 STONEWATER  DOX  FUNDING  LLC,  a Delaware
                                 limited  liability company

By:    _____________________     By:    _____________________________________
Name:  _____________________     Name:  _____________________________________
Title: _____________________     Title: Authorized Signatory

<PAGE>

STATE OF _____________              )
                                    ) ss.:
COUNTY OF ___________               )

On the _____ day of ________________, 2005 before me, the undersigned,
personally appeared ______________________, personally known to me or proved to
me on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he/she executed
the same in his/her capacity, and that by his/her signature on the instrument,
the individual, or the person upon behalf of which the individual acted,
executed the instrument.

                           _________________________
                                  Notary Public

                                        2
<PAGE>

                                    EXHIBIT A

                                Legal Description

The land referred to in this policy is described as follows:

TRACT 1:

Lot 4 in Final Plat of Lot 4 of Par 3 Development Subdivision, as per Plat
recorded as Document 98R 28668, situated in Champaign County, Illinois.

TRACT 2:

Lots 5 and 6 of Final Plat of Lots 5, 6 and 7 of Par 3 Development Subdivision,
a subdivision in the City of Champaign, Champaign County, Illinois, as per plat
recorded July 10, 1996 in Plat Book "CC" at page 185 as Document 96R 17100.

TRACT 3:

Lot 7 of Final Plat of Lots 5, 6 and 7 of Par 3 Development Subdivision, a
subdivision in the City of Champaign, Champaign County, Illinois, as per plat
recorded July 10, 1996 in Plat Book "CC" at page 185 as Document 96R 17100.

TRACT 4:

Lot 3 of Final Plat of Lot 3 Par 3 Development Subdivision recorded as Document
98R 14068, situated in Champaign County, Illinois.

                                        3
<PAGE>

                                    EXHIBIT B

                              Permitted Exceptions

1.    The state of facts shown on survey dated October 31, 2003, as last revised
      November 14, 2003, made by HDC Engineering, Project #03344.

2.    Taxes for the year 2005, which are a lien although not yet due & payable.

    City of Champaign Township, 45-20-24-326-020, Tax Code 60. (Tract 1).
    City of Champaign Township, 45-20-24-326-011, Tax Code 2. (part of Tract 2).
    City of Champaign Township, 45-20-24-326-012, Tax Code 2. (part of Tract 2).
    City of Champaign Township, 45-20-24-326-013, Tax Code 2. (Tract 3).
    City of Champaign Township, 45-20-24-326-016, Tax Code 60. (Tract 4).

3.    The land lies within the boundaries of Phinney Branch Mutual Drainage
      District. (Tracts 1-4).

4.    Easement in favor of Illinois Power Company, and its successors and
      assigns, and the provisions relating thereto contained in the grant
      recorded December 23, 1992 in book 1876 at page 506 as document no. 92R
      36921, affecting the North 10 feet of Lot 7 and other land. (Tract 3).

5.    Easement in favor of the City of Champaign, and its successors and
      assigns, and the provisions relating thereto contained in the grant
      recorded July 10, 1996 in book 2424 at page 500 as document no. 96R 17099.
      (Tract 1).

6.    Covenants, restrictions, easements and building setback lines contained in
      the Owner's Certificate attached to and as shown on the Final Plat of Lots
      5, 6 and 7 of Par 3 Development Subdivision recorded July 10, 1996 in book
      "CC" at page 185 as document no. 96R 17100, as amended by First Addendum
      dated November 1, 2003 and recorded November 25, 2003 as document 2003 R
      52074 which does not contain a reversionary or forfeiture clause. (Tracts
      2 and 3).

7.    Terms and provisions of an Annexation Agreement as disclosed by instrument
      recorded July 23, 1996 in book 2428 at page 782 as document no. 96R 18251.
      (Tracts 1-4).

           Amendment No. 1 recorded February 14, 1997 as document no. 97R 3279.
           Amendment No. 2 recorded January 14, 1998 as document no. 98R 1024.
           Amendment No. 3 recorded June 15, 2000 as document no. 2000R 12962.

8.    Easement in favor of Illinois Power Company, and its successors and
      assigns, and the provisions relating thereto contained in the grant
      recorded September 3, 1996 in book

                                        4
<PAGE>

      2443 at page 169 as document no. 96R 22014, affecting a strip of land 10
      feet in width over Lot 5. (Tract 2, Lot 5).

9.    Covenants, restrictions, easements and building setback lines contained in
      the Owner's Certificate attached to and as shown on the Final Plat of Lot
      3 of Par 3 Development Subdivision recorded May 18, 1998 as document no.
      98R 14068, as amended by First Addendum dated November 1, 2003 and
      recorded on November 25, 2003 as document 2003 R 52075, which does not
      contain a reversionary or forfeiture clause. (Tract 4).

10.   The right of tenants, as tenants only with no right or option to purchase
      or right of first refusal.

11.   Mortgage, Absolute Assignment of Rents and Leases and Security Agreement
      (and Fixture Filing) dated November 21, 2003 and recorded November 25,
      2003 as document 2003 R 52081 made by Stonewater DOX Funding LLC to Wells
      Fargo Bank, National Association, to secure a note for $10,000,000.

12.   UCC-1 Financing Statement filed by Wells Fargo Bank N.A., as secured
      party, against Stonewater Dox Funding L.L.C., as debtor on December 30,
      2003 under filing number 200312305627857.

                                        5
<PAGE>

                                 EXHIBIT 11.1(C)

                               FIRPTA CERTIFICATE

      Section 1445 of the Internal Revenue Code of 1986, as amended (the
"CODE"), provides that a transferee of a U.S. real property interest must
withhold tax if the transferor is a foreign person or entity. To inform the
transferee that withholding of tax is not required upon the disposition of a
U.S. real property interest by ____________________, _________ (the "COMPANY"),
the undersigned hereby certifies the following on behalf of the Company:

      1. The Company is not a foreign person, foreign corporation, foreign
partnership, foreign trust, or foreign estate (as those terms are defined in the
Code and the Income Tax Regulations promulgated thereunder);

      2. Transferor is not a disregarded entity as defined in
Sections 1.1445-2(b)(2)(iii);

      3. The Company's U.S. Employer identification number is ___________; and

      4. The Company's office address is:

         ___________________________
         ___________________________
         ___________________________

      The undersigned, as ______________ of the Company, understands that this
certification may be disclosed to the Internal Revenue Service by the transferee
and that any false statement contained herein could be punished by fine,
imprisonment or both.

      Under penalties of perjury, the undersigned, as _____________ of the
Company, declares that the undersigned has examined this certification and that,
to the best of the undersigned's knowledge and belief, it is true, correct and
complete, and the undersigned further declares that the undersigned has
authority to sign this document on behalf of the Company.

                                 ______________________________________________,
                                 a

                                 By:    _______________________________________
                                 Name:  _______________________________________
                                 Title: _______________________________________

<PAGE>

                                 EXHIBIT 11.1(f)

                   Form of Assignment and Assumption Agreement

      THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the "ASSIGNMENT") is made as of
the ___ day of ______________, 200_ by STONEWATER DOX FUNDING LLC, a Delaware
limited liability company, having an address at c/o Drawbridge Special
Opportunities Fund, LLC, 1251 Avenue of the Americas, New York, New York 10021
("ASSIGNOR"), in consideration of Ten ($10.00) Dollars and for other good and
valuable consideration paid by __________________, a __________________________,
having an office at ___________________________________________________
("ASSIGNEE").

      Assignor hereby assigns to Assignee all of Assignor's right, title and
interest in and to the following documents (collectively, the "LEASE"):

            Lease dated September 19, 1996, between Stonewater Dox Funding LLC
(successor-in-interest to Par 3 Development, L.L.C.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 2101 Fox Drive,
Champaign, Illinois, as amended by that certain First Addendum to Lease, dated
February 25, 1999, and as further amended by that certain Addendum Number Two to
Lease, dated December 22, 2000.

            Lease, dated January 29, 1996, between Stonewater Dox Funding LLC
(successor-in-interest to Par 3 Development, L.L.C.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 2109 Fox Drive,
Champaign, Illinois, as amended by that certain First Addendum to Lease, dated
February 25, 1999, and as further amended by that certain Addendum Number Two to
Lease, dated December 22, 2000.

            Lease, dated September 19, 1996, between Stonewater Dox Funding LLC
(successor-in-interest to Par 3 Development, L.L.C.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 2201 Fox Drive,
Champaign, Illinois, as amended by that certain First Addendum to Lease, dated
February 25, 1999, and as further amended by that certain Addendum Number Two to
Lease, dated December 22, 2000.

            Lease, dated February 25, 1999, between Stonewater Dox Funding LLC
(successor-in-interest to Par 3 Development, L.L.C.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 2215 Fox Drive,
Champaign, Illinois, as amended by that certain Addendum Number One to Lease,
dated December 22, 2000.

            Lease, dated December 22, 2000, between Stonewater Dox Funding LLC
(successor-in-interest) to Par 3 Development, L.L.C.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 2301 Fox Drive,
Champaign, Illinois, as amended by that certain Addendum No. 1 to Lease, dated
September 18, 2001, as further amended by that certain Amendment to Lease, dated
September 14, 2004, and as further amended by that certain Addendum No. 2 to
Lease, dated February 25, 2005.

<PAGE>

      TO HAVE AND TO HOLD, unto Assignee and its successors and/or assigns. This
assignment is made without any recourse and without representation or warranty
of any kind, express or implied.

      And Assignee hereby assumes all of the obligations of Assignor under the
Lease and assumes due performance of all of the terms and provisions of the
Lease on Assignor's part to be performed and observed thereunder.

            This Assignment may be signed in multiple counterparts which, when
taken together and signed by all parties and delivered to any other party
hereto, shall constitute a binding instrument between the parties.

            This instrument shall be governed by and construed in accordance
with the laws of the State of Illinois.

            IN WITNESS WHEREOF, Assignor and Assignee have duly executed this
agreement as of the date above written.

WITNESS:                         ASSIGNOR:

                                 STONEWATER  DOX  FUNDING  LLC,  a Delaware
                                 limited  liability company

By:    __________________        By:    _______________________________________
Name:  __________________        Name:  _______________________________________
Title: __________________        Title: Authorized Signatory

                                 ASSIGNEE:

By:    __________________        By:    _______________________________________
Name:  __________________        Name:  _______________________________________
Title: __________________        Title: Authorized Signatory

                                        2
<PAGE>

                         AMENDMENT TO PURCHASE AGREEMENT

THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as of December
22, 2005, and is by and between Stonewater UIS Funding LLC, a Delaware limited
liability company ("Seller") and Gladstone Commercial Limited Partnership, a
Delaware limited partnership ("Purchaser").

                                     RECITAL

Seller and Purchaser are parties to that certain Purchase Agreement dated
November 23, 2005 (the "Agreement"). Seller and Purchaser desire to amend the
Agreement upon and subject to the terms and conditions of this Amendment.
Therefore, in consideration of the premises and of the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Seller and Purchaser, intending to
be legally bound, agree to amend the Agreement as follows:

THE FIRST SENTENCE OF SECTION 3.1 IS HEREBY DELETED AND THE FOLLOWING IS
INSERTED IN LIEU THEREOF: "THE TERM "Study Period" SHALL MEAN THE PERIOD
COMMENCING ON THE EFFECTIVE DATE AND ENDING AT 5:00 P.M. (EASTERN STANDARD TIME)
ON DECEMBER 30, 2005 ("STUDY PERIOD EXPIRATION DATE)." NOTWITHSTANDING ANYTHING
CONTAINED IN THE AGREEMENT TO THE CONTRARY, PURCHASER SHALL NOT HAVE ANY RIGHT
TO EXTEND THE STUDY PERIOD EXPIRATION DATE.

EXCEPT AS EXPRESSLY MODIFIED BY THIS AMENDMENT, THE AGREEMENT SHALL BE AND
REMAIN UNCHANGED AND IN FULL FORCE AND EFFECT, AND AS MODIFIED BY THIS
AMENDMENT, THE AGREEMENT IS HEREBY RATIFIED AND CONFIRMED BY SELLER AND
PURCHASER. THIS AMENDMENT MAY BE ENTERED INTO IN COUNTERPARTS, AND ALL SUCH
COUNTERPARTS WHEN TAKEN TOGETHER SHALL CONSTITUTE A SINGLE INSTRUMENT.

                            GLADSTONE COMMERCIAL LIMITED PARTNERSHIP

                            BY: GLADSTONE COMMERCIAL PARTNERS, LLC

                                BY: GLADSTONE COMMERCIAL CORPORATION

                                    BY: _______________________
                                        NAME: ROBERT J. CORRY
                                        TITLE: PRINCIPAL AND MANAGING DIRECTOR

                            Stonewater UIS Funding LLC

                            By:    _____________________________________
                            Name:  _____________________________________
                            Title: Authorized Signatory

                                       3
<PAGE>

                         AMENDMENT TO PURCHASE AGREEMENT

THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as of December
30, 2005, and is by and between Stonewater UIS Funding LLC, a Delaware limited
liability company ("Seller") and Gladstone Commercial Limited Partnership, a
Delaware limited partnership ("Purchaser").

                                     RECITAL

Seller and Purchaser are parties to that certain Purchase Agreement dated
November 23, 2005, as the same has been modified by that certain Amendment to
Purchase Agreement dated December 22, 2005 (as so modified, the "Agreement").
Seller and Purchaser desire to further amend the Agreement upon and subject to
the terms and conditions of this Amendment. Therefore, in consideration of the
premises and of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Seller and Purchaser, intending to be legally bound, agree to
amend the Agreement as follows:

THE FIRST SENTENCE OF SECTION 3.1 IS HEREBY DELETED AND THE FOLLOWING IS
INSERTED IN LIEU THEREOF: "THE TERM "Study Period" SHALL MEAN THE PERIOD
COMMENCING ON THE EFFECTIVE DATE AND ENDING AT 5:00 P.M. (EASTERN STANDARD TIME)
ON JANUARY 6, 2006 ("STUDY PERIOD EXPIRATION DATE")." NOTWITHSTANDING ANYTHING
CONTAINED IN THE AGREEMENT TO THE CONTRARY, PURCHASER SHALL NOT HAVE ANY RIGHT
TO EXTEND THE STUDY PERIOD EXPIRATION DATE.

 EXCEPT AS EXPRESSLY MODIFIED BY THIS AMENDMENT, THE AGREEMENT SHALL BE AND
REMAIN UNCHANGED AND IN FULL FORCE AND EFFECT, AND AS MODIFIED BY THIS
AMENDMENT, THE AGREEMENT IS HEREBY RATIFIED AND CONFIRMED BY SELLER AND
PURCHASER. THIS AMENDMENT MAY BE ENTERED INTO IN COUNTERPARTS, AND ALL SUCH
COUNTERPARTS WHEN TAKEN TOGETHER SHALL CONSTITUTE A SINGLE INSTRUMENT.

                            GLADSTONE COMMERCIAL LIMITED PARTNERSHIP

                            BY: GLADSTONE COMMERCIAL PARTNERS, LLC

                                BY: GLADSTONE COMMERCIAL CORPORATION

                                    BY: _______________________

                                        NAME: ROBERT J. CORRY

                                TITLE: PRINCIPAL AND MANAGING DIRECTOR

                            Stonewater UIS Funding LLC

                            By:   _____________________________________
                            Name: _____________________________________
                            Title: Authorized Signatory

                                        4
<PAGE>

                         AMENDMENT TO PURCHASE AGREEMENT

THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as of January 6,
2006, and is by and between Stonewater UIS Funding LLC, a Delaware limited
liability company ("Seller") and Gladstone Commercial Limited Partnership, a
Delaware limited partnership ("Purchaser").

                                     RECITAL

Seller and Purchaser are parties to that certain Purchase Agreement dated
November 23, 2005 (as the same has been modified by that certain Amendment to
Purchase Agreement dated December 22, 2005 and that certain Amendment to
Purchase Agreement dated December 30, 2005, the "Agreement"). Seller and
Purchaser desire to further amend the Agreement upon and subject to the terms
and conditions of this Amendment. Therefore, in consideration of the premises
and of the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
Seller and Purchaser, intending to be legally bound, agree to amend the
Agreement as follows:

THE FIRST SENTENCE OF SECTION 3.1 IS HEREBY DELETED AND THE FOLLOWING IS
INSERTED IN LIEU THEREOF: "THE TERM "Study Period" SHALL MEAN THE PERIOD
COMMENCING ON THE EFFECTIVE DATE AND ENDING AT 5:00 P.M. (EASTERN STANDARD TIME)
ON JANUARY 13, 2006 ("STUDY PERIOD EXPIRATION DATE")." NOTWITHSTANDING ANYTHING
CONTAINED IN THE AGREEMENT TO THE CONTRARY, PURCHASER SHALL NOT HAVE ANY RIGHT
TO EXTEND THE STUDY PERIOD EXPIRATION DATE.
ARTICLE XIX NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN SECTION 3.1 OF
THE AGREEMENT, PURCHASER HEREBY WAIVES ANY RIGHT TO TERMINATE THE AGREEMENT
BASED ON THE INFORMATION DISCLOSED BY (I) THE STRUCTURAL/ENGINEERING/PROPERTY
CONDITION REPORT, ENVIRONMENTAL REPORT, APPRAISAL REPORT, TITLE
REPORT/COMMITMENT AND SURVEY RECEIVED WITH RESPECT TO THE PROPERTY (AS SUCH TERM
IS DEFINED IN THE AGREEMENT); AND (II) CREDIT UNDERWRITING OF UNISYS
CORPORATION. PURCHASER HEREBY ACCEPTS THE LEASE MORE PARTICULARLY DESCRIBED IN
EXHIBIT A.

 EXCEPT AS EXPRESSLY MODIFIED BY THIS AMENDMENT, THE AGREEMENT SHALL BE AND
REMAIN UNCHANGED AND IN FULL FORCE AND EFFECT, AND AS MODIFIED BY THIS
AMENDMENT, THE AGREEMENT IS HEREBY RATIFIED AND CONFIRMED BY SELLER AND
PURCHASER. THIS AMENDMENT MAY BE ENTERED INTO IN COUNTERPARTS, AND ALL SUCH
COUNTERPARTS WHEN TAKEN TOGETHER SHALL CONSTITUTE A SINGLE INSTRUMENT.

                                        5
<PAGE>

                                    GLADSTONE COMMERCIAL LIMITED PARTNERSHIP
Stonewater UIS Funding LLC
                                    BY: GLADSTONE COMMERCIAL PARTNERS, LLC

BY:   ___________________________
NAME: ___________________________       BY: GLADSTONE COMMERCIAL CORPORATION
      TITLE: AUTHORIZED SIGNATORY

                                            BY: _______________________

                                                NAME: ROBERT J. CORRY

                                            TITLE: PRINCIPAL/MANAGING DIRECTOR

                                    EXHIBIT A

                             [Description of Lease]

Lease - Building 3 dated August 14, 1998 and effective as of June 1, 1998
between Stonewater UIS Funding, LLC (as successor to Meritex Enterprises, Inc.,
the successor-in-interest to Space Center Enterprises, Inc.) and Unisys
Corporation, as amended by (i) that certain First Amendment to Lease effective
as of November 30, 1999, (ii) that certain Second Amendment to Lease effective
as of March 26, 2003, (iii) that certain Third Amendment to Lease effective as
of May 7, 2004, and (iv) that certain Fourth Amendment to Lease effective as of
August 10, 2004

                                        6
<PAGE>

                         AMENDMENT TO PURCHASE AGREEMENT

THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as of January
13, 2006, and is by and between Stonewater UIS Funding LLC, a Delaware limited
liability company ("Seller") and Gladstone Commercial Limited Partnership, a
Delaware limited partnership ("Purchaser").

                                     RECITAL

Seller and Purchaser are parties to that certain Purchase Agreement dated
November 23, 2005 (as the same has been modified by that certain Amendment to
Purchase Agreement dated December 22, 2005, that certain Amendment to Purchase
Agreement dated December 30, 2005 and that certain Amendment to Purchase
Agreement dated January 6, 2006, the "Agreement"). Seller and Purchaser desire
to further amend the Agreement upon and subject to the terms and conditions of
this Amendment. Therefore, in consideration of the premises and of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Seller and Purchaser,
intending to be legally bound, agree to amend the Agreement as follows:

THE FIRST SENTENCE OF SECTION 3.1 IS HEREBY DELETED AND THE FOLLOWING IS
INSERTED IN LIEU THEREOF: "THE TERM "Study Period" SHALL MEAN THE PERIOD
COMMENCING ON THE EFFECTIVE DATE AND ENDING AT 7:00 P.M. (EASTERN STANDARD TIME)
ON JANUARY 17, 2006 ("STUDY PERIOD EXPIRATION DATE")." NOTWITHSTANDING ANYTHING
CONTAINED IN THE AGREEMENT TO THE CONTRARY, PURCHASER SHALL NOT HAVE ANY RIGHT
TO EXTEND THE STUDY PERIOD EXPIRATION DATE.

EXCEPT AS EXPRESSLY MODIFIED BY THIS AMENDMENT, THE AGREEMENT SHALL BE AND
REMAIN UNCHANGED AND IN FULL FORCE AND EFFECT, AND AS MODIFIED BY THIS
AMENDMENT, THE AGREEMENT IS HEREBY RATIFIED AND CONFIRMED BY SELLER AND
PURCHASER. THIS AMENDMENT MAY BE ENTERED INTO IN COUNTERPARTS, AND ALL SUCH
COUNTERPARTS WHEN TAKEN TOGETHER SHALL CONSTITUTE A SINGLE INSTRUMENT.

                                    GLADSTONE COMMERCIAL LIMITED PARTNERSHIP
Stonewater UIS Funding LLC
                                    BY: GLADSTONE COMMERCIAL PARTNERS, LLC

BY:   ___________________________
NAME: ___________________________       BY: GLADSTONE COMMERCIAL CORPORATION
      TITLE: AUTHORIZED SIGNATORY

                                            BY: _______________________

                                                NAME: ROBERT J. CORRY

                                            TITLE: PRINCIPAL/MANAGING DIRECTOR

                                        7
<PAGE>

                         AMENDMENT TO PURCHASE AGREEMENT

THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as of January
17, 2006, and is by and between Stonewater UIS Funding LLC, a Delaware limited
liability company ("Seller") and Gladstone Commercial Limited Partnership, a
Delaware limited partnership ("Purchaser").

                                     RECITAL

Seller and Purchaser are parties to that certain Purchase Agreement dated
November 23, 2005 (as the same has been modified by that certain Amendment to
Purchase Agreement dated December 22, 2005, that certain Amendment to Purchase
Agreement dated December 30, 2005, that certain Amendment to Purchase Agreement
dated January 6, 2006 and that certain Amendment to Purchase Agreement dated
January 13, 2006, the "Agreement"). Seller and Purchaser desire to further amend
the Agreement upon and subject to the terms and conditions of this Amendment.
Therefore, in consideration of the premises and of the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Seller and Purchaser, intending to
be legally bound, agree to amend the Agreement as follows:

THE FIRST SENTENCE OF SECTION 3.1 IS HEREBY DELETED AND THE FOLLOWING IS
INSERTED IN LIEU THEREOF: "THE TERM "Study Period" SHALL MEAN THE PERIOD
COMMENCING ON THE EFFECTIVE DATE AND ENDING AT 7:00 P.M. (EASTERN STANDARD TIME)
ON JANUARY 20, 2006 ("STUDY PERIOD EXPIRATION DATE")." NOTWITHSTANDING ANYTHING
CONTAINED IN THE AGREEMENT TO THE CONTRARY, PURCHASER SHALL NOT HAVE ANY RIGHT
TO EXTEND THE STUDY PERIOD EXPIRATION DATE.

EXCEPT AS EXPRESSLY MODIFIED BY THIS AMENDMENT, THE AGREEMENT SHALL BE AND
REMAIN UNCHANGED AND IN FULL FORCE AND EFFECT, AND AS MODIFIED BY THIS
AMENDMENT, THE AGREEMENT IS HEREBY RATIFIED AND CONFIRMED BY SELLER AND
PURCHASER. THIS AMENDMENT MAY BE ENTERED INTO IN COUNTERPARTS, AND ALL SUCH
COUNTERPARTS WHEN TAKEN TOGETHER SHALL CONSTITUTE A SINGLE INSTRUMENT.

                                    GLADSTONE COMMERCIAL LIMITED PARTNERSHIP
Stonewater UIS Funding LLC
                                    BY: GLADSTONE COMMERCIAL PARTNERS, LLC

BY:    ______________________
NAME:  ______________________           BY: GLADSTONE COMMERCIAL CORPORATION
TITLE: AUTHORIZED SIGNATORY

                                            BY: _______________________

                                                NAME: CHRISTOPHER MASSEY

                                            TITLE: PRINCIPAL/MANAGING DIRECTOR

                                        8
<PAGE>

                         AMENDMENT TO PURCHASE AGREEMENT

THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as of January
20, 2006 by and between Stonewater UIS Funding LLC, a Delaware limited liability
company ("Seller") and Gladstone Commercial Limited Partnership, a Delaware
limited partnership ("Purchaser").

                                     RECITAL

            Seller and Purchaser are parties to that certain Purchase Agreement
dated November 23, 2005 (as the same has been modified by that certain Amendment
to Purchase Agreement dated December 22, 2005, that certain Amendment to
Purchase Agreement dated December 30, 2005, that certain Amendment to Purchase
Agreement dated January 6, 2006, that certain Amendment to Purchase Agreement
dated January 13, 2006 and that certain Amendment to Purchase Agreement dated
January 17, 2006 (collectively the "Agreement"). Seller and Purchaser desire to
further amend the Agreement upon and subject to the terms and conditions of this
Amendment. All capitalized terms used herein and not otherwise defined herein
shall have the meaning ascribed thereto in the Agreement.

            Now, therefore, in consideration of the premises and of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficient of which is hereby acknowledged, Seller and Purchaser
intending to be legally bound, agree to further amend the Agreement as follows:

            1. Purchaser hereby acknowledges and agrees that the Study Period
has expired and that Purchaser has no further right to terminate the Agreement
pursuant to Section 3.1 thereof.

            2. The following is hereby added to Article II of the Agreement:

                  Section 2.4 Amendment to Lease. Notwithstanding anything
      contained herein to the contrary, unless on or prior to the Closing Date
      the Seller, as landlord, and the Tenant, shall have executed and delivered
      an amendment to the Lease which has been approved by the Existing Lender
      and (i) modifies section 12.5 of the Lease to provide that the Landlord
      shall provide all of the insurance (including, without limitation the
      specified coverage limits and specified deductibles) required by Section 5
      of the Existing Mortgage, (ii) provides that Tenant shall reimburse
      Landlord, as additional rent, for all of the insurance premiums payable by
      Landlord from time to time to obtain such insurance, (iii) modifies
      section 10.1 of the Lease to reinstate in its entirety the provisions of
      section 10.1 of the original lease dated August 14, 1998 (effective as of
      June 1, 1998) between Space Center Enterprises, Inc., as Landlord, and
      Tenant, with respect to the Property (without giving any further effect to
      Section 2 and Section 3 of the Forth Amendment to Lease dated as of August
      10, 2004 between Seller, as landlord, and Tenant), (iv) reduces the annual
      minimum rent by $10,000, and (v) otherwise is in a form reasonably
      satisfactory to Purchaser, then at the Closing the Purchase Price shall be
      reduced by two hundred thirty-five thousand ($235,000) dollars (and
      accordingly, the Cash Balance payable by the Company shall be reduced by
      $235,000).

            3. Subsection 9.1(e) of the Agreement is hereby deleted and the
following is hereby substituted in lieu thereof:

                  (e) Tenant Estoppel Certificate. The Company shall have
received an executed estoppel certificate from the Tenant in substantially the
form annexed hereto as Exhibit 9.1(e), with no material changes.

                                        9
<PAGE>

            4. Except as expressly modified by this Amendment, the Agreement
shall be and remain unchanged and in full force and effect, and as modified by
this Amendment, the Agreement is hereby ratified and confirmed by Seller and
Purchaser. This Amendment may be entered into in counterparts, and all such
counterparts when taken together shall constitute a single instrument.

                  IN WITNESS WHEREOF, the parties hereto have executed and
delivered this Amendment as of the day and year first above written.

                  SELLER:          STONEWATER UIS FUNDING LLC

                                   By: ___________________________
                                   Name:
                                   Title

               PURCHASER: GLADSTONE COMMERCIAL LIMITED PARTNERSHIP

                                   By: Gladstone Commercial Partners, LLC

                                       By: Gladstone Commercial Corporation

                                           By:  _________________________
                                                Christopher Massey
                                                Principal/Managing Director

                                       10
<PAGE>

                         AMENDMENT TO PURCHASE AGREEMENT

            THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as
of February ___, 2006 by and between Stonewater UIS Funding LLC, a Delaware
limited liability company ("Seller") and Gladstone Commercial Limited
Partnership, a Delaware limited partnership ("Purchaser").

                                     RECITAL

            Seller and Purchaser are parties to that certain Purchase Agreement
dated November 23, 2005, as the same has been modified by that certain Amendment
to Purchase Agreement dated December 22, 2005, that certain Amendment to
Purchase Agreement dated December 30, 2005, that certain Amendment to Purchase
Agreement dated January 6, 2006, that certain Amendment to Purchase Agreement
dated January 13, 2006, that certain Amendment to Purchase Agreement dated
January 17, 2006 and that certain Amendment to Purchase Agreement dated January
20, 2006 (collectively the "Agreement"). Capitalized terms used herein and not
defined shall have the meanings ascribed to them in the Agreement.

                                    AGREEMENT

            Now, therefore, in consideration of the promises and of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Seller and Purchaser
agree that the Closing Date, as set forth in Section 10.1 of the Agreement,
shall be February 17, 2006. Nothing contained herein shall be deemed to modify
or limit the rights of Seller or Purchaser to extend the Closing Date pursuant
to the express terms of the Agreement.

            This Amendment may be executed in any number of counterparts, each
of which shall constitute an original but all of which, taken together, shall
constitute but one and the same instrument.

            IN WITNESS WHEREOF, the parties hereto have executed and delivered
this Amendment as of the day and year first above written.

            SELLER:              STONEWATER UIS FUNDING LLC

                                 By: ___________________________
                                 Name:
                                 Title

               PURCHASER: GLADSTONE COMMERCIAL LIMITED PARTNERSHIP
                     By: Gladstone Commercial Partners, LLC
                         By: Gladstone Commercial Corporation

                                             By:  _________________________
                                                  Robert J. Corry
                                                  Principal/Managing Director

                                       11<PAGE>
                                                                   EXHIBIT 10.24

                    SPACE ABOVE THIS LINE FOR RECORDER'S USE

THE MAXIMUM INDEBTEDNESS SECURED BY THIS MORTGAGE IS $20,860,000.00.

THIS DOCUMENT DRAFTED BY
AND WHEN RECORDED MAIL TO:

Katten Muchin Zavis Rosenman
525 West Monroe Street, Suite 1600
Chicago, Illinois 60661
Joseph A. Venzon, Esq.

              MORTGAGE, ASSIGNMENT OF RENTS AND SECURITY AGREEMENT
                  This instrument constitutes a Fixture Filing

     THIS MORTGAGE, ASSIGNMENT OF RENTS AND SECURITY AGREEMENT (this
"Instrument") is made as of May 12, 2004, and is given by the Mortgagor, STONE
WATER UIS FUNDING LLC, a Delaware limited liability company whose address is c/o
Drawbridge Special Opportunity Fund LLP, 1251 Avenue of the Americas, 16th
Floor, New York, New York 10020 (herein "Borrower"), to the Mortgagee, GREENWICH
CAPITAL FINANCIAL PRODUCTS, INC, a corporation organized and existing under the
laws of the state of Delaware, whose address is 600 Steamboat Road, Greenwich,
Connecticut 06830 (collectively with its successors, assigns and transferees
hereinafter referred to as "Lender").

     BORROWER, in consideration of the indebtedness herein recited, irrevocably
grants, conveys, mortgages, warrants and assigns to Lender, with power of sale,
the following described property located in the County of Ramsey, State of
Minnesota, and more particularly described on Exhibit "A" attached hereto and
incorporated herein by reference for all purposes.

     TOGETHER with all right, title and interest in and to all buildings,
improvements and tenements now or hereafter erected on the property, and all
heretofore or hereafter vacated alleys and streets abutting the property, and
all easements, rights, appurtenances, rents (subject however to the assignment
of rents to Lender herein), royalties, mineral, oil and gas rights and profits,

<PAGE>

water, water rights, and water stock appurtenant to the property, and all
fixtures, machinery, equipment, engines, boilers, incinerators, building
materials, appliances and goods of every nature whatsoever now or hereafter
located in, or on, or used, or intended to be used in connection with the
property, including, but not limited to, those for the purposes of supplying or
distributing heating, cooling, electricity, gas, water, air and light; and all
elevators, and related machinery and equipment, fire prevention and
extinguishing apparatus, security and access control apparatus, plumbing, bath
tubs, water heaters, water closets, sinks, ranges, stoves, refrigerators,
dishwashers, disposals, washers, dryers, awnings, storm windows, storm doors,
screens, blinds, shades, curtains and curtain rods, mirrors, cabinets, paneling,
rugs, attached floor coverings, furniture, pictures, antennas, trees and plants,
tax refunds, trade names, licenses, permits, Borrower's rights to insurance
proceeds, unearned insurance premiums and choses in action; all of which,
including any and all renewals, replacements and additions thereto and
substitutions therefor, shall be deemed to be and remain a part of the real
property covered by this Instrument; and all of the foregoing, together with
said real property (or the leasehold estate in the event this Instrument is on a
leasehold) are herein referred to as the "Property";

     TOGETHER with all right, title and interest in, to and under any and all
leases now or hereinafter in existence (as amended or supplemented from time to
time) and covering space in or applicable to the Property (hereinafter referred
to collectively as the "Leases" and singularly as a "Lease"), together with all
rents, earnings, income, profits, deposits, reserves, benefits and advantages
arising from the Property and from said Leases and all other sums due or to
become due under and pursuant thereto, it being intended and agreed that
whenever and however generated, whether now or hereafter, Lender shall have a
continuing security interest in, and/or lien upon, pursuant to 11 U.S.C. Section
552(b), on all of the foregoing, including the immediate and continuing right to
collect all rents, earnings, income, profits, deposits, reserves, fees, charges
and accounts for the use and occupancy of the Property, and together with any
and all guarantees of or under any of said Leases, and together with all rights,
powers, privileges, options and other benefits of Borrower as lessor under the
Leases, including, without limitation, the immediate and continuing right to
receive and collect all rents, income, revenues, issues, profits, condemnation
awards, insurance proceeds, moneys and security payable or receivable under the
Leases or pursuant to any of the provisions thereof, whether as rent or
otherwise, the right to accept or reject any offer made by any tenant pursuant
to its Lease to purchase the Property and any other property subject to the
Lease as therein provided and to perform all other necessary or appropriate acts
with respect to such Leases as agent and attorney-in-fact for Borrower, and the
right to make all waivers and agreements, to give and receive all notices,
consents and releases, to take such action upon the happening of a default under
any Lease, including the commencement, conduct and consummation of proceedings
at law or in equity as shall be permitted under any provision of any Lease or by
any law, and to do any and all other things whatsoever which Borrower is or may
become entitled to do under any such Lease together with all accounts
receivable, contract rights, franchises, interests, estates or other claims,
both at law and in equity, relating to the Property, to the extent not included
in rent earnings and income under any of the Leases;

     TOGETHER with all right, title and interest in, to and under any and all
reserve, deposit or escrow accounts (the "Accounts") made pursuant to any Loan
Document (as hereinafter defined) made between Borrower and Lender with respect
to the Property, together with all income, profits, benefits and advantages
arising therefrom, and together with all rights, powers,

                                        2

<PAGE>

privileges, options and other benefits of Borrower under the Accounts, and
together with the right to do any and all other things whatsoever which Borrower
is or may become entitled to do under the Accounts;

     TOGETHER with all agreements, contracts, certificates, guaranties,
warranties, instruments, franchises, permits, licenses, plans, specifications
and other documents, now or hereafter entered into, and all rights therein and
thereto, pertaining to the use, occupancy, construction, management or operation
of the Property and any part thereof and any improvements or respecting any
business or activity conducted on the Property and any part thereof and all
right, title and interest of Borrower therein, including the right to receive
and collect any sums payable to Borrower thereunder and all deposits or other
security or advance payments made by Borrower with respect to any of the
services related to the Property or the operation thereof;

     TOGETHER with all servicemarks, logos, copyrights, goodwill, books and
records and all other general intangibles relating to or used in connection with
the operation of the Property;

     TOGETHER with all trademarks, tradenames, trade styles, assumed names,
telephone numbers and listing rights, and all other rights and interests in and
to the names and marks used by Borrower in connection with the Property, and all
books and records, accounting systems and all other general intangibles relating
to the operation of the Property; and

     TOGETHER with any and all proceeds resulting or arising from any of the
foregoing (the Property, the Leases, the Accounts, and all other property,
whether real, personal, tangible, or intangible, described above, and all
proceeds thereof, may be referred to collectively as the "Collateral").

     THIS INSTRUMENT SECURES TO LENDER (a) the repayment of the indebtedness
evidenced by Borrower's Promissory Note dated of even date herewith (together
with any amendments, extensions, modifications, renewals, supplements or
restatements thereof, and any substitutions or replacements therefor, the
"Note") in the principal sum of Twenty Million Eight Hundred Sixty Thousand and
No/100 Dollars ($20,860,000.00), with interest thereon, with the balance of the
indebtedness, if not sooner paid, due and payable on the Maturity Date (as
defined in the Note); (b) the performance of the covenants and agreements of
Borrower contained in an Environmental Indemnity Agreement (herein so-called) by
Borrower and Stonewater Funding LLC, a Delaware limited liability company
("Indemnitor"), in favor of Lender dated of even date herewith; (c) the payment
of all other sums, with interest thereon, advanced by Lender in accordance
herewith to protect the security of this Instrument; and (d) the performance of
the covenants and agreements of Borrower herein contained, or contained in any
other Loan Document, INCLUDING BORROWER'S COVENANT TO REPAY ALL FUTURE ADVANCES
(the Note, this Instrument, and all other documents or instruments given by
Borrower or others and accepted by Lender for purposes of evidencing, securing,
perfecting, or guaranteeing the indebtedness evidenced by the Note, together
with any and all amendments, modifications, renewals, restatements and
substitutions thereof from time to time may be referred to collectively as the
"Loan Documents"). At no time shall the principal amount of the indebtedness,
not including sums advanced in accord herewith to protect the security of this
Instrument, exceed two hundred percent (200%) of the original amount of the
Note. Without

                                        3

<PAGE>

limitation of the foregoing, the following documents and instruments of even
date herewith are Loan Documents: Assignment of Leases and Rents, Certificate of
Borrower, Environmental Indemnity Agreement, Exceptions to Non-Recourse
Guaranty, Completion/Repair and Security Agreement (if any), Replacement Reserve
and Security Agreement (if any), Tenant Improvement and Leasing Commission
Reserve and Security Agreement (if any), and Conditional Assignment of
Management Agreement (if any).

     Borrower covenants that Borrower is lawfully seized of the estate hereby
conveyed and has the right to mortgage, grant, convey and assign the Property
(and, if this Instrument is on a leasehold, that the ground lease is in full
force and effect without modification except as noted above and without default
on the part of either lessor or lessee thereunder), that the Property is
unencumbered, and that Borrower will warrant and defend generally the title to
the Property against all claims and demands, subject to any easements and
restrictions listed in a schedule of exceptions to coverage in any title
insurance policy insuring Lender's interest in the Property.

     Borrower represents, warrants, covenants and agrees in favor of Lender as
follows:

SECTION 1. PAYMENT OF PRINCIPAL AND INTEREST. Borrower shall promptly pay when
due the principal of and interest on the indebtedness evidenced by the Note, any
prepayment and late charges provided in the Note and all other sums secured by
this Instrument.

SECTION 2. FUNDS FOR TAXES, INSURANCE AND OTHER CHARGES. Subject to applicable
law or to a written waiver by Lender, Borrower shall pay to Lender on the day
monthly installments of principal or interest are payable under the Note (or on
another day designated in writing by Lender), until the Note is paid in full, a
sum (herein "Funds") equal to one-twelfth of (a) the yearly taxes and
assessments which may be levied on the Property, (b) the yearly premium
installments for fire and other hazard insurance, rent loss insurance and such
other insurance covering the Property as Lender may require pursuant to this
Instrument, (c) the yearly premium installments for mortgage insurance, if any,
and (d) if this Instrument is on a leasehold, the yearly fixed rents, if any,
under the ground lease, all as reasonably estimated initially and from time to
time by Lender on the basis of assessments and bills and reasonable estimates
thereof. Notwithstanding anything in clause (b) of this Section 2 to the
contrary, so long as the Unisys Lease is in full force and effect and the
insurance required to be maintained by Unisys under the Unisys Lease is in full
force and effect, Borrower shall only be required to pay to Lender with each
monthly installment of principal or interest payable under the Note one-twelfth
of the yearly premiums for the insurance maintained by Borrower pursuant to this
Instrument (and Borrower shall not be required to pay installments of the
premiums for the insurance maintained by Unisys). Any waiver by Lender of a
requirement that Borrower pay such Funds may be revoked by Lender, in Lender's
sole discretion, at any time upon notice in writing to Borrower. Lender may
require Borrower to pay to Lender, in advance, such other Funds for other taxes,
charges, premiums, assessments and impositions in connection with Borrower or
the Property which Lender shall reasonably deem necessary to protect Lender's
interests (herein "Other Impositions"). Unless otherwise provided by applicable
law, Lender may require Funds for Other Impositions to be paid by Borrower in a
lump sum or in periodic installments, at Lender's option. In addition, Borrower
shall reimburse Lender for the reasonable actual costs of an annual search of
the taxes and other liens affecting the Property or for a service which provides
such information (to the extent performed), and the cost of the same shall be

                                        4

<PAGE>

included in Other Impositions. Lender agrees that, to the extent the tenant
under the Unisys Lease (as defined herein) delivers funds to Lender expressly
indicated by such tenant as being a payment on account of taxes or insurance
premiums, Lender shall credit such amounts against the applicable obligations of
Borrower under this Section 2 (but in the event funds received from the tenant
are insufficient to pay all of Borrower's obligations under this Section 2,
Borrower shall remain liable for the payment in full of all such obligations).
"Unisys Lease" shall mean that certain Lease Agreement entered into as of August
14, 1998 but effective as of June 1, 1998 between Space Center Enterprises, Inc.
(n/k/a Meritex Enterprises Inc.), predecessor in interest to Borrower, as
landlord, and UNISYS Corporation ("Unisys"), as tenant, as amended from time to
time.

     Lender shall apply the Funds to pay said rents, taxes, assessments,
insurance premiums and Other Impositions so long as no Event of Default exists.
The Funds shall be held in an interest bearing account, and any interest or
earnings or profits on the Funds shall be added to and become part of the Funds.
Borrower shall be responsible for payment of any federal, state or local income
or other tax applicable to such interest, earnings or profits from investment of
the Funds. Lender shall give to Borrower, without charge, an annual accounting
of the Funds in Lender's normal format showing credits and debits to the Funds
and the purpose for which each debit to the Funds was made. The Funds are
pledged as additional security for the sums secured by this Instrument.

     If at any time the amount of the Funds held by Lender shall be less than
the amount deemed necessary by Lender in its reasonable estimation to pay taxes,
assessments, insurance premiums, rents and Other Impositions, as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency
within thirty days after notice from Lender to Borrower requesting payment
thereof.

     Upon the occurrence of an Event of Default and during the continuance
thereof, Lender may apply, in any amount and in any order as Lender shall
determine in Lender's sole discretion, any Funds held by Lender at the time of
application (i) to pay rents, taxes, assessments, insurance premiums and Other
Impositions which are now or will hereafter become due, or (ii) as a credit
against sums secured by this Instrument. Upon payment in full of all sums
secured by this Instrument, Lender shall promptly refund to Borrower any Funds
held by Lender. It is intended and agreed by Borrower that whenever and however
generated, as to any and all Funds now or hereafter held by Lender, Lender shall
have a continuing security interest in and/or lien thereon, pursuant to 11
U.S.C. Section 552(b) until application or disposition thereof pursuant to the
terms and provisions of the Loan Documents.

     At or prior to the closing of the loan secured by this Instrument, Borrower
shall deposit with Lender a sum of money (the "Borrower Tax Deposit") sufficient
to cover the amount by which the second installment of 2004 real estate taxes
levied on the Property (the "Second Tax Installment") is estimated to exceed the
aggregate monthly deposits of tax installments anticipated to be made pursuant
to clause (a) of this Section 2 prior to the date such Second Tax Installment is
due and payable. The Borrower Tax Deposit shall constitute "Funds" hereunder. At
such time that Borrower delivers to Lender evidence satisfactory to Lender of
the payment in full of the Second Tax Installment, Lender shall return to
Borrower the Borrower Tax Deposit

                                        5

<PAGE>

(or in the event all or any portion of the Borrower Tax Deposit is required to
be utilized to pay the Second Tax Installment, such portion thereof not utilized
to pay the Second Tax Installment).

SECTION 3. APPLICATION OF PAYMENTS. Upon the occurrence of an Event of Default
and during the continuance thereof, Lender may apply any payments received from
or on behalf of Borrower to any of the obligations of Borrower then due under
the Loan Documents, in any order determined by Lender.

SECTION 4. CHARGES; LIENS. Borrower shall pay all rents, taxes, assessments,
premiums, and Other Impositions attributable to the Property in the manner
provided under Section 2 hereof or, if Lender elects not to collect such rents,
taxes, assessments, premiums and Other Impositions as provided in Section 2, by
Borrower making payment, when due, directly to the payee thereof, or in such
other manner as Lender may designate in writing. Borrower shall promptly furnish
to Lender all notices of amounts due under this Section, and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender
receipts evidencing such payments. Except only for the liens and security
interests in favor of Lender under this Instrument and the other Loan Documents,
which Borrower shall pay and discharge in accordance with the Loan Documents,
Borrower shall discharge or bond over any lien encumbering all or any portion of
or interest in the Property within sixty (60) days after Borrower receives
notice of such lien, irrespective of the priority of the same. Borrower shall
pay, when due, the claims of all persons supplying labor or materials to or in
connection with the Property.

SECTION 5. HAZARD INSURANCE. Borrower shall at all times keep (or cause to be
kept) the improvements now existing or hereafter erected on the Property insured
against all losses, hazards, casualties, liabilities and contingencies as Lender
(and, if this Instrument is on a leasehold, the ground lease) shall reasonably
require and in such amounts and for such periods as Lender shall reasonably
require. Borrower shall purchase and maintain (or cause to be purchased and
maintained) policies of insurance with respect to the Property in such amounts
and covering such risks as shall be reasonably satisfactory to Lender,
including, but not limited to, the following:

     (a) Property damage insurance covering loss or damage to the Property
caused by fire, lightning, hail, windstorm, explosion, hurricane (to the extent
available), vandalism, o malicious mischief, acts of terrorism, and such losses,
hazards, casualties, liabilities and contingencies as are normally and usually
covered by fire policies in effect where the Property is located endorsed to
include all of the extended coverage perils and other broad form perils,
including the standard "all risks" clauses. Such policy shall be in an amount
not less than that necessary to comply with any coinsurance percentage
stipulated in the policy, but not less than 100% of the full replacement cost of
the improvements on the Property (without any deduction for depreciation), and
shall contain a replacement cost endorsement. The deductible under such policy,
if any, shall not exceed the lesser of ten percent (10%) of the amount of the
loan secured hereby or $10,000. Further, if any of the improvements or the use
of the Property shall at any time constitute legal nonconforming structures or
uses under current zoning ordinances, such policy shall contain an "Ordinance or
Law Coverage" or "Enforcement" endorsement providing coverage for demolition,
increased cost of construction and inability to rebuild.

                                        6

<PAGE>

     (b) Broad form boiler and machinery insurance in an amount equal to the
lesser of 100% of the full replacement cost of the building (without any
deduction for depreciation) in which the boiler or similar vessel is located, or
$2,000,000. In addition, Lender may require a rider to such policy to extend
such coverage to electrical machinery and equipment, air conditioning,
refrigeration, and mechanical objects.

     (c) If the Property is in an area prone to geological phenomena, including,
but not limited to, sinkholes, mine subsidence or earthquakes, insurance
covering such risks in an amount equal to 100% of the full replacement cost of
the improvements on the Property (without any deduction for depreciation), and
with a maximum permissible deductible equal to the lesser of $25,000 or 10% of
the face value of the policy.

     (d) Flood insurance if the Property is in an area now or hereafter
designated by the Federal Emergency Management Agency as a Zone "A" & "V"
Special Hazard Area, or such other Special Hazard Area if Lender so requires in
its sole discretion. Such policy shall be in an amount equal to 100% of the full
replacement cost of the improvements on the Property (without any deduction for
depreciation), and shall have a maximum permissible deductible of $3,000.

     (e) Business interruption or rent loss insurance in an amount equal to the
gross income or rentals from the Property for an indemnity period of eighteen
months, such amount being adjusted annually.

     (f) During any period of reconstruction, renovation or alteration of the
Property in excess of 10% of the Note, a complete value, "All Risks" Builders
Risk form or "Course of Construction" insurance policy in non-reporting form and
in an amount satisfactory to Lender in Lender's reasonable discretion.

     (g) Commercial General Liability insurance covering bodily injury and death
in an amount not less than $1,000,000 per occurrence, $2,000,000 in the
aggregate and umbrella coverage of $25,000,000, with no deductible. If Lender
permits such liability coverage to be written on a blanket basis, then such
policy shall provide that the aggregate limit of insurance applies separately to
the Property.

     (h) If required by applicable state laws, worker's compensation or
employer's liability insurance in accordance with such laws.

     (i) Such other insurance and endorsements, if any, as Lender may reasonably
require from time to time, or which are required by the Loan Documents

     Each carrier providing any insurance, or portion thereof, required by this
Section shall be licensed to do business in the jurisdiction or jurisdictions in
which the Property is located, and shall have a claims paying ability rating of
"A" by "S&P", or such equivalent rating by a major rating agency. Borrower shall
cause all insurance (except general public liability insurance) carried in
accordance with this Section to be payable to Lender as a mortgagee and loss
payee and not as a coinsured, and, in the case of all policies of insurance
carried by each lessee for the benefit of Borrower, if any, to cause all such
policies to be payable to Lender as Lender's interest may appear. All premiums
on insurance policies shall be paid, in the manner provided under Section 2
hereof, or in such other manner as Lender may reasonably designate in writing.

                                        7

<PAGE>

     All insurance policies and renewals thereof (i) shall be in a form
reasonably acceptable to Lender, (ii) shall provide for a term of not less than
one year, (iii) shall provide by way of endorsement, rider or otherwise that
such insurance policy shall not be canceled, endorsed, altered, or reissued to
effect a change in coverage unless such insurer shall have first given Lender 30
days prior written notice thereof, (iv) shall include a standard mortgagee
clause in favor of Lender and its successors and assigns, and otherwise in form
reasonably acceptable to Lender, (v) shall provide for claims to be made on an
occurrence basis, except that boiler and machinery coverage may be made on an
accident basis, and (vi) shall contain an agreed value clause updated annually
(if the amount of coverage under such policy is based upon the replacement cost
of the Property). All property damage insurance policies (except for flood and
earthquake policies) must automatically reinstate after each loss.

     Lender shall have the right to receive a certified copy of the policy and
certificates of insurance, and Borrower shall promptly furnish to Lender all
renewal notices and all receipts of paid premiums. At least 30 days prior to the
expiration date of a policy, Borrower shall deliver to Lender a renewal policy
in form satisfactory to Lender, together with evidence reasonably satisfactory
to Lender of payment in full of the annual premium therefor (provided Borrower
shall not be required to deliver evidence of payment if Lender has paid such
premium directly pursuant to Section 2 hereof). If this Instrument is on a
leasehold, Borrower shall furnish Lender a duplicate of all policies, renewal
notices, renewal policies and receipts of paid premiums if, by virtue of the
ground lease, the originals thereof may not be supplied by Borrower to Lender.

     In the event of loss, Borrower shall give immediate written notice to the
insurance carrier and to Lender. After the occurrence of an Event of Default,
Borrower hereby authorizes and empowers Lender as attorney-in-fact for Borrower
to make proof of loss, to adjust and compromise any claim under insurance
policies, to appear in and prosecute any action arising from such insurance
policies, to collect and receive insurance proceeds, and to deduct therefrom
Lender's actual expenses incurred in the collection of such proceeds; provided
however, that nothing contained in this Section shall require Lender to incur
any expense or take any action hereunder. Borrower further authorizes Lender, at
Lender's option, (a) to hold the balance of such proceeds to be used to
reimburse Borrower for the cost of reconstruction or repair of the Property or
(b) subject to the immediately following paragraph, to apply such proceeds to
the payment of the sums secured by this Instrument whether or not then due, in
any order (subject, however, to the rights of the lessor under the ground lease
if this Instrument is on a leasehold).

     Lender shall not exercise Lender's option to apply insurance proceeds to
the payment of the sums secured by this Instrument if all of the following
conditions are met: (i) Borrower is not in breach or default of any covenant or
agreement of this Instrument, the Note or any other Loan Document (provided
Lender will not apply insurance proceeds until all applicable cure periods, if
any, have lapsed); (ii) Lender reasonably determines that there will be
sufficient funds to restore and repair the Property to the Pre-existing
Condition (as hereinafter defined); (iii) Lender agrees in writing that the
rental income of the Property, after restoration and repair of the Property to
the Pre-existing Condition, will be sufficient to meet all operating costs and
other expenses, payments for reserves and loan repayment obligations (including
any obligations under any permitted subordinate financing) relating to the
Property and maintain a debt service coverage ratio of at least 1.3 to 1.0; (iv)
Lender determines that restoration and repair of the Property to the
Pre-existing Condition will be completed within one year of the date of the loss

                                        8

<PAGE>

or casualty to the Property, but in no event later than six months prior to the
Maturity Date; (v) less than 50 percent of the total floor area of the
improvements has been damaged, destroyed or rendered unusable as a result of
such condemnation or taking; (vi) tenant leases demising in the aggregate at
least 50 percent of the total rentable space in the Property and in effect as of
the date of the occurrence of such condemnation or taking remain in full force
and effect during and after the completion of the restoration and repair of the
Property and Borrower furnishes to Lender evidence satisfactory to Lender that
Unisys shall continue to operate its business at the Property after completion
of such restoration or repair, notwithstanding the occurrence of any such
condemnation or taking; and (vii) Lender is reasonably satisfied that the
Property can be restored and repaired as nearly as possible to the condition it
was in immediately prior to such casualty and in compliance with all applicable
zoning, building and other laws and codes (the "Pre-existing Condition"). If
Lender elects to make the insurance proceeds available for the restoration and
repair of the Property, Borrower agrees that, if at any time during the
restoration and repair, the cost of completing such restoration and repair, as
determined by Lender, exceeds the undisbursed insurance proceeds, Borrower
shall, immediately upon demand by Lender, deposit the amount of such excess with
Lender, and Lender shall first disburse such deposit to pay for the costs of
such restoration and repair on the same terms and conditions as the insurance
proceeds are disbursed.

     If the insurance proceeds are held by Lender to reimburse Borrower for the
cost of restoration and repair of the Property, then Borrower shall restore the
Property to the equivalent of its original condition or such other condition as
Lender may approve in writing (such approval not to be unreasonably withheld),
and Borrower shall promptly begin such restoration and at all times thereafter
diligently prosecute such restoration to completion. Lender may, at Lender's
option, condition disbursement of said proceeds on Lender's approval of such
plans and specifications (such approval not to be unreasonably withheld or
delayed) of an architect satisfactory to Lender, contractor's cost estimates,
architect's certificates, waivers of liens, sworn statements of mechanics and
materialmen and such other evidence of costs, percentage completion of
construction, application of payments; and satisfaction of liens as Lender may
reasonably require. If the insurance proceeds are applied to the payment of the
sums secured by this Instrument, any such application of proceeds to principal
shall not extend or postpone the due dates of the monthly installments due under
the Note, under Section 2 hereof, or otherwise under the Loan Documents, or
change the amounts of such installments. If the Property is sold at foreclosure
or pursuant to power of sale or if Lender acquires title to the Property, Lender
shall have all of the right, title and interest of Borrower in and to any
insurance policies and unearned premiums thereon and in and to the proceeds
resulting from any damage to the Property prior to such sale or acquisition.

SECTION 6. PRESERVATION AND MAINTENANCE OF PROPERTY; LEASEHOLDS. Borrower (a)
shall not intentionally commit waste or permit any material impairment or
deterioration of the Property, (b) shall not abandon the Property, (c) shall
restore or repair (or cause to be restored or repaired pursuant to and in
accordance with the terms of the Unisys Lease) promptly and in a good and
workmanlike manner all or any part of the Property to the equivalent of its
original condition, or such other condition as Lender may reasonably approve in
writing, in the event of any damage, injury or loss thereto, whether or not
insurance proceeds are available to cover in whole or in part the costs of such
restoration or repair, (d) shall keep (or cause to be kept pursuant to and in
accordance with the terms of the Unisys Lease) the Property,

                                        9

<PAGE>

including improvements, fixtures, equipment, machinery and appliances thereon in
good repair and shall replace fixtures, equipment, machinery and appliances on
the Property when necessary to keep such items in good repair, (e) shall comply
with all laws, ordinances, regulations and requirements of any governmental body
applicable to the Property, (f) shall provide for management of the Property by
a property manager approved by Lender, and (g) shall give notice in writing to
Lender of and, unless otherwise directed in writing by Lender, appear in and
defend any action or proceeding purporting to affect the Property, the security
of this Instrument or the rights or powers of Lender. Neither Borrower nor any
tenant or other person shall remove, demolish or alter any improvement now
existing or hereafter erected on the Property or any fixture, equipment,
machinery or appliance in or on the Property except when incident to the
replacement of fixtures, equipment, machinery and appliances with items of like
kind or unless permitted pursuant to the Unisys Lease or a lease approved by
Lender.

SECTION 7. USE OF PROPERTY. Unless required by applicable law or unless Lender
has otherwise agreed in writing, Borrower shall not allow changes in the use for
which all or any part of the Property was intended at the time this Instrument
was executed. Borrower shall not subdivide the Property or initiate or acquiesce
in a change in the zoning classification of the Property without Lender's prior
written consent.

SECTION 8. PROTECTION OF LENDER'S SECURITY. After the occurrence of an Event of
Default, or if any action or proceeding is commenced which affects the Property
or title thereto or the interest of Lender therein, including, but not limited
to, eminent domain, insolvency, code enforcement, or arrangements or proceedings
involving a bankrupt or decedent, Lender at Lender's option may make such
appearances, disburse such sums and take such action as Lender deems reasonably
necessary to protect Lender's interest (subject to the terms of the Unisys
Lease), including, but not limited to, (i) disbursement of reasonable attorney's
fees, (ii) entry upon the Property to make material repairs, (iii) procurement
of satisfactory insurance as provided herein, (iv) the payment of any taxes
and/or assessments levied against the Property and then due and payable, and (v)
payment of any other amounts contemplated in any of the Loan Documents. Any
amounts disbursed by Lender pursuant to this Section, with interest thereon,
shall become additional indebtedness of Borrower secured by this Instrument.
Unless Borrower and Lender agree to other terms of payment, such amounts shall
be immediately due and payable upon demand and shall bear interest from the date
of disbursement at the rate then applicable to principal under the Note unless
collection from Borrower of interest at such rate would be contrary to
applicable law, in which event such amounts shall bear interest at the highest
rate which may be collected from Borrower under applicable law. Nothing
contained in this Section or elsewhere in any of the Loan Documents shall
require Lender to incur any expense or take any action hereunder.

SECTION 9. INSPECTION. Upon notice to Borrower, Lender may make or cause to be
made reasonable entries upon and inspections of the Property, including, but not
limited to phase I and/or phase II environmental audits and inspections;
provided Lender shall only conduct invasive testing, such as soil borings, if
(x) Lender has been advised by a third-party consultant that the Property may
not be in compliance with environmental laws or laws relating to hazardous
material or (y) an environmental audit deems further testing necessary.

                                       10

<PAGE>

SECTION 10. BOOKS AND RECORDS. Borrower shall keep and maintain at all times at
Borrower's address stated herein, or such other place as Lender may reasonably
approve in writing, complete and accurate books of accounts and records adequate
to reflect correctly the results of the operation of the Property and copies of
all written contracts, leases and other instruments which affect the Property.
Such books, records, contracts, leases and other instruments shall be subject to
examination and inspection at any reasonable time by Lender.

     Upon request from Lender from time to time, Borrower shall promptly (and in
any event within ten (10) business days of Lender's request) deliver to Lender
financial statements as of the end of the then-prior month for (i) such
then-prior month, (ii) the year to date, and (iii) the 12 month period ending
with such then-prior month, provided Borrower's obligation to provide such
reports shall cease on the later to occur of the date when Lender sells its
entire interest in the Loan Documents, or the 13th full calendar month following
the date hereof. Thereafter, on or before the 30th day after the end of each
three-month fiscal quarter of Borrower (which may include months for which
reports shall have been submitted as required above), Borrower shall deliver to
Lender financial statements for such quarter. Each set of such financial
statements (i) shall consist of not less than a balance sheet for Borrower, a
statement of income and expenses of the Property and a statement of changes in
financial position, (ii) shall be in detail reasonably satisfactory to Lender
and (iii) shall bear a certification in form and substance satisfactory to
Lender to the effect that the applicable statements are true, complete, and
accurate and do not omit to state any material information, and such
certification shall be duly signed by a principal of Borrower. In addition,
Borrower shall deliver to Lender audited Financial Statements for each year end,
on or before the 90th day after the end of each year. All of such financial
statements shall provide information for the applicable month or quarter and on
a year-to-date basis (and at the end of the fourth quarter, for the year).

     Borrower shall furnish, together with the foregoing financial statements
and at any other time upon Lender's reasonable request, a rent schedule for the
Property, certified by Borrower, showing the name of each tenant, and for each
tenant, the space occupied, the lease expiration date, the rent payable and the
rent paid.

     Borrower shall prepare and submit to Lender, no later than forty-five (45)
days prior to the end of each calendar year, a proposed pro forma budget for the
Property for the succeeding calendar year (the "Annual Budget") for approval by
Lender (such approval not to be unreasonably withheld or delayed), and, promptly
after preparation thereof, any revisions to such Annual Budget. Lender shall
approve such Annual Budget no later than fifteen (15) days prior to the
commencement of the subject calendar year (each Annual Budget approved by Lender
is referred to herein as the "Approved Annual Budget"). The Annual Budget shall
consist of (i) an operating expense budget showing, on a month-by-month basis,
in reasonable detail, each line item of Borrower's anticipated operating income
and operating expenses (on an accrual basis), including amounts required to
establish, maintain and/or increase any monthly payments required hereunder, and
(ii) a capital expense budget showing, on a month-by-month basis, in reasonable
detail, each line item of anticipated capital expenses. Until such time that any
Annual Budget has been approved by Lender, the prior Approved Annual Budget
shall apply for all purposes hereunder (with such adjustments as reasonably
determined by Lender (including increases for any non-discretionary expenses)).

                                       11

<PAGE>

     In addition to the above delivery of financial statements and rent
schedule, Borrower shall deliver to Lender updated versions of such financial
statements at any other time upon Lender's request, including monthly balance
sheets and monthly statements of income and expenses of the Property. Further,
Borrower shall provide to Lender, as soon as the same are available to Borrower,
all financial statements and sales reports received from any tenant at the
Property.

SECTION 11. CONDEMNATION. Borrower shall promptly notify Lender of any action or
proceeding relating to any condemnation or other taking, whether direct or
indirect, of the Property, or part thereof, and Borrower shall appear in and
prosecute any such action or proceeding unless otherwise directed by Lender in
writing. Borrower authorizes Lender, at Lender's option, as attorney-in-fact for
Borrower, to commence, appear in and prosecute, in Lender's or Borrower's name,
any action or proceeding relating to any condemnation or other taking of the
Property, whether direct or indirect, and to settle or compromise any claim in
connection with such condemnation or other taking. The proceeds of any award,
payment or claim for damages, direct or consequential, in connection with any
condemnation or other taking, whether direct or indirect, of the Property, or
part thereof, or for conveyances in lieu of condemnation, are hereby assigned to
and shall be paid to Lender subject, if this Instrument is on a leasehold, to
the rights of lessor under the ground lease.

     Borrower authorizes Lender to apply such awards, payments, proceeds or
damages, after the deduction of Lender's expenses incurred in the collection of
such amounts, at Lender's option, to restoration or repair of the Property or to
payment of the sums secured by tins Instrument, whether or not then due, in the
order determined by Lender, with the balance, if any, to Borrower. Unless
Borrower and Lender otherwise agree in writing, any application of proceeds to
principal shall not extend or postpone the due date of the monthly installments
due hereunder or under any of the Loan Documents or change the amount of such
installments. Borrower agrees to execute such further evidence of assignment of
any awards, proceeds, damages or claims arising in connection with such
condemnation or taking as Lender may require.

     Lender shall not exercise Lender's option to apply condemnation proceeds to
the payment of the sums secured by this Instrument if all of the following
conditions are met: (i) the cost of restoration will not exceed fifteen percent
(15%) of the amount of the Loan; (ii) Borrower is not in breach or default of
any covenant or agreement of this Instrument, the Note or any other Loan
Document; (iii) Lender reasonably determines that there will be sufficient funds
to restore and repair the Property to the Pre-existing Condition; (iv) Lender
agrees in writing that the rental income of the Property, after restoration and
repair of the Property to the Pre-existing Condition, will be sufficient to meet
all operating costs and other expenses, payments for reserves and loan repayment
obligations (including any obligations under any permitted subordinate financing
actually in place) relating to the Property and maintain a debt service coverage
ratio of at least 1.3 to 1.0; (v) Lender determines that restoration and repair
of the Property to the Pre-existing Condition will be completed within one year
of the date of the loss or casualty to the Property, but in no event later than
six months prior to the Maturity Date; (vi) less than 50 percent of the total
floor area of the improvements has been damaged, destroyed or rendered unusable
as a result of such condemnation or taking; (vii) tenant leases demising in the
aggregate at least 50 percent of the total rentable space in the Property and in
effect as of the date of the occurrence of

                                       12

<PAGE>

such condemnation or taking remain in full force and effect during and after the
completion of the restoration and repair of the Property and Borrower furnishes
to Lender evidence satisfactory to Lender that Unisys shall continue to operate
its business at the Property after completion of such restoration or repair,
notwithstanding the occurrence of any such condemnation or taking; and (viii)
Lender is reasonably satisfied that the Property can be restored and repaired to
the Pre-existing Condition. If Lender elects to make the condemnation proceeds
available for the restoration and repair of the Property, Borrower agrees that,
if at any time during the restoration and repair, the cost of completing such
restoration and repair, as determined by Lender, exceeds the undisbursed
condemnation proceeds, Borrower shall, immediately upon demand by Lender,
deposit the amount of such excess with Lender, and Lender shall first disburse
such deposit to pay for the costs of such restoration and repair on the same
terms and conditions as the condemnation proceeds are disbursed.

     If the condemnation proceeds are held by Lender to reimburse Borrower for
the cost of restoration and repair of the Property, then Borrower shall restore
the Property to the equivalent of its original condition or such other condition
as Lender may approve in writing, and Borrower shall promptly begin such
restoration and at all times thereafter diligently prosecute such restoration to
completion. Lender may, at Lender's option, condition disbursement of said
proceeds on Lender's approval of such plans and specifications (such approval
not to be unreasonably withheld or delayed) of an architect satisfactory to
Lender, contractor's cost estimates, architect's certificates, waivers of liens
(which may be conditioned upon payment), sworn statements of mechanics and
materialmen and such other evidence of costs, percentage completion of
construction, application of payments; and satisfaction of liens as Lender may
reasonably require. If the condemnation proceeds are applied to the payment of
the sums secured by this Instrument, any such application of proceeds to
principal shall not extend or postpone the due dates of the monthly installments
due under the Note, under Section 2 hereof, or otherwise under the Loan
Documents, or change the amounts of such installments. If the Property is sold
at foreclosure or pursuant to power of sale or if Lender acquires title to the
Property, Lender shall have all of the right, title and interest of Borrower in
and to any awards and proceeds resulting from any condemnation or taking of the
Property prior to such sale or acquisition.

SECTION 12. BORROWER AND LIEN NOT RELEASED. From time to time, Lender may, at
Lender's option, without giving notice to or obtaining the consent of Borrower,
Borrower's successors or assigns or of any junior lienholder or guarantors,
without liability on Lender's part and notwithstanding Borrower's breach of any
covenant or agreement of Borrower in this Instrument, extend the time for
payment of said indebtedness or any part thereof, reduce the payments thereon,
release anyone liable on any of said indebtedness, accept a renewal note or
notes therefor, modify the terms and time of payment of said indebtedness,
release from the lien of this Instrument any part of the Property, take or
release other or additional security, reconvey any part of the Property, consent
to any map or plan of the Property, consent to the granting of any easement,
join in any extension or subordination agreement, and agree in writing with
Borrower to modify the rate of interest or period of amortization of the Note or
change the amount of the monthly installments payable thereunder. Except for the
specific provision being modified, and only to the extent of such modification,
any actions taken by Lender pursuant to the terms of this Section shall not
affect the obligation of Borrower or Borrower's successors or assigns to pay the
sums secured by this Instrument and to observe the covenants of Borrower

                                       13

<PAGE>

contained herein, shall not affect the guaranty of any person, corporation,
partnership or other entity for payment of the indebtedness secured hereby, and
shall not affect the lien or priority of lien hereof on the Property. Borrower
shall pay Lender the actual out of pocket costs together with such title
insurance premiums, if any, and reasonable attorney's fees as may be incurred at
Lender's option, for any such action if taken at Borrower's request.

SECTION 13. UNIFORM COMMERCIAL CODE SECURITY AGREEMENT. This Instrument is
intended to be a security agreement pursuant to the Uniform Commercial Code for
any of the items specified above as part of the Collateral which, under
applicable law, may be subject to a security interest pursuant to the Uniform
Commercial Code, and Borrower hereby grants Lender a security interest in said
items. Borrower agrees that Lender may file this Instrument, or a reproduction
thereof, in the real estate records or other appropriate index, as a financing
statement for any of the items specified above as part of the Collateral. For
use of the Instrument as a financing statement under the Uniform Commercial
Code, the Borrower shall be the "Debtor" and Lender shall be the "Secured
Party", and each shall use those addresses set forth in the introduction to this
Instrument. Any reproduction of this Instrument or of any other security
agreement or financing statement shall be sufficient as a financing statement.
In addition, Borrower agrees to execute and deliver to Lender, upon Lender's
request, any financing statements, as well as extensions, renewals and
amendments thereof, and reproductions of this Instrument in such form as Lender
may require to perfect a security interest with respect to said items. Borrower
shall pay all costs of filing such financing statements and any extensions,
renewals, amendments and releases thereof, and shall pay all reasonable actual
costs and expenses of any record searches for financing statements Lender may
reasonably require. Without the prior written consent of Lender, Borrower shall
not create or suffer to be created pursuant to the Uniform Commercial Code any
other security interest in said items, including replacements and additions
thereto. Upon Borrower's breach of any covenant or agreement of Borrower
contained in this Instrument, including the covenants to pay when due all sums
secured by this Instrument, Lender shall have the remedies of a secured party
under the Uniform Commercial Code and, at Lender's option, may also invoke the
remedies provided herein or in any of the Loan Documents, or pursuant to any
applicable law as to such items. In exercising any of said remedies, Lender may
proceed against the items of real property and any items of personal property
specified above as part of the Collateral separately or together and in any
order whatsoever, without in any way affecting the availability of Lender's
remedies under the Uniform Commercial Code or of the remedies provided herein or
in any of the Loan Documents.

SECTION 14. LEASES OF THE PROPERTY. As used herein, "lease" shall mean
"sublease" if this Instrument is on a leasehold. Borrower shall comply with and
observe Borrower's obligations as landlord under all leases of the Property or
any part thereof. Borrower will not lease any portion of the Property for any
use contrary to the existing character of the Property except with the prior
written approval of Lender. In the event that Unisys vacates all or a portion of
the Property at the end of the term of the Unisys Lease, Borrower may execute or
modify, without Lender's prior written consent, any new lease of such space at
the Property vacated by Unisys at the end of the term of the Unisys Lease which
affects less than 20,000 square feet (an "Exempt Lease") provided such lease:

                                       14

<PAGE>

          (i) has a term which commences no earlier than the day following the
     day on which the term of the Unisys Lease expires (with respect to the
     space demised by such lease);

          (ii) is on a standard lease form pre-approved by Lender;

          (iii) is at a net effective rent (after taking into account any free
     rent, construction allowances or other concessions granted by landlord) no
     less than the fair market rent then prevailing for similar properties and
     leases in the market area;

          (iv) contains rent or other concessions which are customary and
     reasonable for similar properties and leases in the market area;

          (v) represents a bona fide arm's length transaction;

          (vi) does not permit any use which would violate any provision of any
     existing lease or is otherwise inconsistent with the uses and quality of
     existing tenants;

          (vii) is provided to Lender within ten days after execution;

          (viii) as modified or amended does not become a lease which fails to
     satisfy the criteria for an Exempt Lease pursuant to this Section;

          (ix) as modified or amended does not materially modify the financial
     terms of Borrower's standard form of lease or materially reduce the rights
     and remedies of Borrower or Lender under said standard lease;

          (x) is subordinate by its terms to this Instrument (or is made
     subordinate by the terms of Lender's standard form of Subordination,
     Non-Disturbance and Attornment Agreement, which form will be provided to
     Borrower ("Approved SNDA"); provides that the tenant thereunder is required
     to attorn to Lender, such attornment to be effective upon Lender's
     acquisition of title to the Property; that the tenant agrees to execute
     such further evidences of attornment as Lender may from time to time
     request; that the attornment of the tenant shall not be terminated by
     foreclosure; that in no event shall Lender, as holder of this Instrument or
     as successor landlord, be liable to the tenant for any act or omission of
     any prior landlord or for any liability or obligation of any prior landlord
     occurring prior to the date that Lender or any subsequent owner acquire
     title to the Property; and that, if tenant does not sign an Approved SNDA,
     Lender may, at Lender's option, accept or reject such attornment.

     Borrower shall be required to obtain Lender's consent, which shall not be
unreasonably withheld, for the creation of any lease and subleases at the
Property other than an Exempt Lease. The request for approval of each proposed
lease shall be made to Lender in writing and Borrower shall furnish to Lender
(and any loan servicer specified from time to time by Lender): (i) such
biographical and financial information about the proposed tenant as Lender may
require in conjunction with its review, (ii) a copy of the proposed form of
lease, and (iii) a summary of the material terms of such proposed lease
(including, without limitation, rental terms and the term of the proposed lease
and any options). Notwithstanding the foregoing, Borrower may, without the

                                       15

<PAGE>

consent of Lender, enter into an extension of the Unisys Lease on terms no less
favorable to the landlord thereunder than the existing terms, provided (a) the
term of the Unisys Lease is extended to a date at least three (3) years after
the Maturity Date (as defined in the Note) and (b) at least ten (10) business
days prior to execution of such extension Borrower furnishes to Lender a copy of
the proposed extension agreement and a summary of the material terms of such
proposed extension (including, without limitation, rental terms and the term of
the proposed extension and any options). Within fifteen (15) days of Lender's
receipt from Borrower of a request for approval for a proposed lease together
with all other information required to be delivered therewith, Lender shall
inform Borrower whether Lender has approved or rejected such proposed lease. If
Lender fails to respond within such 15-day period and such failure continues for
five (5) days after Borrower delivers to Lender a reminder notice (which
reminder notice may not be delivered by Borrower until such 15-day period has
lapsed) which states in bold, capitalized type on the first page thereof that
"IF LENDER FAILS TO RESPOND WITHIN FIVE (5) DAYS, LENDER SHALL BE DEEMED TO HAVE
APPROVED THE PROPOSED LEASE DESCRIBED HEREIN", then Lender shall be deemed to
have approved such proposed lease.

     As to all leases other than Exempt Leases, Borrower shall not without the
prior written consent of Lender, (i) cancel, amend or modify any such lease,
(ii) approve any assignment, sublease or underlease of any such lease, or (iii)
cancel or modify any guaranty, or release any security deposit or letter of
credit constituting security pertaining to any such lease.

     Borrower shall promptly send Lender copies of any notices of default
received from the tenant under any lease; and will enforce (short of terminating
such lease) the performance by the tenant of the tenant's obligations under any
lease.

     Except for security deposits, whether an Exempt Lease or otherwise, no
lease shall provide for payment of rent more than one month in advance, and
Borrower shall not under any circumstances collect any such rent more than one
month in advance.

     Borrower, at Lender's request, shall furnish Lender with executed copies of
all leases hereafter made of all or any part of the Property, and all leases
hereafter entered into will be in form and substance subject to the approval of
Lender (such approval not to be unreasonably withheld or delayed). All leases of
the Property entered into after the date hereof, or with respect to such leases
a separate agreement in recordable form and substance reasonably satisfactory to
Lender, shall specifically provide that such leases are subordinate to this
Instrument; that the tenant attorns to Lender, such attainment to be effective
upon Lender's acquisition of title to the Property; that the tenant agrees to
execute such further evidences of attornment as Lender may from time to time
reasonably request; that the attornment of the tenant shall not be terminated by
foreclosure; that in no event shall Lender, as holder of this Instrument or as
successor landlord, be liable to the tenant for any act or omission of any prior
landlord or for any liability or obligation of any prior landlord occurring
prior to the date that Lender or any subsequent owner acquire title to the
Property; and that Lender may, at Lender's option, accept or reject such
attornment. Except as otherwise provided in this Section, Borrower shall not,
without Lender's written consent, execute, modify, surrender or terminate,
either orally or in writing, any lease now existing or hereafter made of all or
any part of the Property, permit an assignment or

                                       16

<PAGE>

sublease of a lease without Lender's written consent, or request or consent to
the subordination of any lease of all or any part of the Property to any lien
subordinate to this Instrument.

     Upon Lender's request, Borrower shall absolutely assign to Lender, by
written instrument satisfactory to Lender, all leases now existing or hereafter
made of all or any part of the Property and all security deposits made by
tenants in connection with such leases of the Property. Notwithstanding the
foregoing, so long as no Event of Default has occurred and is continuing,
Borrower shall have the revocable right and revocable license to occupy the
Property as landlord or otherwise and to collect, use and enjoy the rents,
issues and profits and other sums payable under and by virtue of any lease (but
only as the same become due under the provisions of such lease) and to enforce
the covenants of the leases; provided that after any such Event of Default, any
amounts collected by Borrower shall be held by Borrower in trust for the benefit
of Lender for use in the payment of all sums due under the Loan Documents.

SECTION 15. TRANSFERS OF THE PROPERTY OR BENEFICIAL INTERESTS IN BORROWER.

     (a) Except as provided in paragraph (c) of this Section or in Section 32 of
this Instrument, Borrower shall not cause or suffer to occur any sale or
transfer of (i) all or any part of the Property, or any interest therein, or
(ii) beneficial interests in Borrower (if Borrower is not a natural person or
persons but is a corporation, partnership, trust or other legal entity).

     (b) For purposes of this Section, a sale or transfer of a beneficial
interest in Borrower shall be deemed to include, but is not limited to:

          (i) if Borrower or any general partner of Borrower is a corporation,
     the voluntary or involuntary sale, conveyance, transfer or pledge of a
     majority of such corporation's stock (or the stock of any corporation
     directly or indirectly controlling such corporation) by operation of law or
     otherwise, or the creation or issuance of new stock by which an aggregate
     of more than 49% of such corporation's stock shall be vested in a party or
     parties who are not now stockholders;

          (ii) if Borrower or any general partner is a limited liability
     company, (a) the change, removal or resignation of a managing member, or
     (b) the voluntary or involuntary sale, conveyance, transfer or pledge
     (whether by operation of law or otherwise) of a majority of such limited
     liability company's membership interests (whether in number or voting
     power) or the stock of any corporation directly or indirectly controlling
     such limited liability company, or (c) the creation or issuance of new
     membership interests by which an aggregate of more than 49% of such limited
     liability company's interests (whether in number or voting power) shall be
     vested in a party or parties who are not now members;

          (iii) if Borrower, or any general partner of Borrower, is a limited or
     general partnership, the change, removal or resignation of a general
     partner or managing partner or the transfer or pledge of the partnership
     interest of any general partner or managing partner or any profits or
     proceeds relating to such partnership interest;

                                       17

<PAGE>

          (iv) if Borrower is a limited partnership, the transfer or pledge of a
     majority of the limited partnership interests which in the aggregate
     constitute more than a 49% interest in Borrower, or any profits or proceeds
     relating to such limited partnership interests.

     (c) Notwithstanding the foregoing, the following shall not be deemed a
violation of this Section:

          (i) a transfer of less than a 49% interest in Borrower, or any
     partner, shareholder or member of Borrower, by devise, descent or by
     operation of law upon the death of a partner, member or stockholder of
     Borrower;

          (ii) a transfer of a limited partner, shareholder or non-managing
     member interest in Borrower for estate planning purposes to an immediate
     family member of such limited partner, shareholder or member, or a trust
     for the benefit of an immediate family member;

          (iii) a transfer of a general partner or managing member interest in
     Borrower for estate planning purposes to an immediate family member of such
     partner or member, or a trust for the benefit of an immediate family
     member, subject to obtaining Lender's prior written consent, which consent
     shall not be unreasonably withheld subject to the criteria set forth in
     Subsection (b) of Section 32 of this Instrument; or

          (iv) a transfer of all or any part of the Property, or any interest
     therein, or beneficial interests in Borrower to any "Fortress Affiliate"
     (as defined herein), provided Borrower shall comply with the provisions of
     Section 32 in connection with a transfer of all or any part of the
     Property. As used herein, a "Fortress Affiliate" means an entity (a) in
     which at least 51% of the ownership interests of such entity are owned,
     directly or indirectly, by Fortress Investment Group, (b) which is
     controlled by Fortress Investment Group and (c) of which the day-to-day
     business affairs are managed, directly or indirectly, by Fortress
     Investment Group.

SECTION 16. FURTHER ENCUMBRANCES. Except only for the liens and security
interests in favor of Lender under this Instrument and the other Loan Documents,
without Lender's prior written consent, which Lender may withhold in its sole
discretion, Borrower shall not execute, cause, allow or suffer any mortgage,
deed of trust, deed to secure debt, assignment of leases or rents, statutory
lien or other lien (unless Borrower is, in good faith, contesting any such lien,
in which case Borrower shall, in accordance with Section 4 hereof, discharge or
bond over any such lien within sixty (60) days after Borrower receives notice of
such lien), irrespective of its priority, to encumber all or any portion of the
Property or the leases, rents or profits thereof, or any interest in any of the
foregoing.

SECTION 17. GENERAL INDEMNITY. In addition to any other indemnification
obligation set forth elsewhere in the Loan Documents, Borrower shall, at its
sole cost and expense, protect, defend, indemnify, release and hold harmless the
Lender and its shareholders, directors, officers, agents, employees,
contractors, attorneys, servicers, and successors and assigns (the "Indemnified
Parties") from and against any and all claims, suits, liabilities (including,
without

                                       18

<PAGE>

limitation, strict liabilities), actions, proceedings, obligations, debts,
damages, losses, costs, expenses, diminutions in value (provided that, with
respect to diminutions in value, Borrower shall not be liable to Lender for an
amount in excess of the sum of (i) the principal amount of the Note, plus (ii)
interest on the indebtedness evidenced by the Note plus (iii) all other sums
payable to Lender under the Loan Documents), punitive damages incurred by Lender
payable to third parties (other than punitive damages arising as a direct result
of Lender's actions), fines, penalties, charges, fees, expenses, judgments,
awards or amounts paid in settlement, of whatever kind or nature (including, but
not limited to reasonable attorneys' fees and other costs of defense) (the
"Losses") imposed upon or incurred by or asserted against any Indemnified
Parties and directly or indirectly arising out of or in any way relating to any
one or more of the following (but excluding Losses arising out of the
Indemnified Parties' gross negligence or willful misconduct): (a) ownership of
this Instrument or any of the Loan Documents, or ownership of the Property or
any interest therein, or demand for or receipt of any Rents; (b) any amendment
to, or restructuring of, any of the Loan Documents or the obligations evidenced
or secured thereby; (c) any and all lawful action that may be taken by Lender in
connection with the enforcement of the provisions of any of the Loan Documents,
whether or not suit is filed in connection with same, or in connection with
Borrower, any guarantor or indemnitor and/or any member, partner, joint venturer
or shareholder thereof becoming a party to a voluntary or involuntary federal or
state bankruptcy, insolvency or similar proceeding; (d) any accident, injury to
or death of persons or loss of or damage to property occurring in, on or about
the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent
property or adjacent parking areas, streets or ways; (e) any use, nonuse or
condition in, on or about the Property or any part thereof or on the adjoining
sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways;
(f) any failure on the part of Borrower to perform or be in compliance with any
of the terms of any of the Loan Documents; (g) performance of any labor or
services or the furnishing of any materials or other property in respect of the
Property or any part thereof; (h) the failure of any person to file timely with
the Internal Revenue Service an accurate Form 1099-B, Statement for Recipients
of Proceeds from Real Estate, Broker and Barter Exchange Transactions, which may
be required in connection with this Instrument, or to supply a copy thereof in a
timely fashion to the recipient of the proceeds of the transaction in connection
with which this Instrument is made; (i) any failure of the Property to be in
compliance with any applicable laws; (j) the enforcement by any Indemnified
Party of the provisions of this Section; (k) any and all claims and demands
whatsoever which may be asserted against Lender by reason of any alleged
obligations or undertakings on its part to perform or discharge any of the
terms, covenants, or agreements contained in any Lease; (l) the payment of any
commission, charge or brokerage fee to anyone which may be payable in connection
with the funding of the loan evidenced by the Note; or (m) any misrepresentation
made by Borrower in any of the Loan Documents. Any amounts payable to any of the
Indemnified Parties by reason of the application of this Section shall become
immediately due and payable upon demand and shall bear interest at rate then
applicable to principal outstanding under the Note.

SECTION 18. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION.
As part of the consideration for the indebtedness evidenced by the Note,
Borrower hereby presently, absolutely and unconditionally assigns and transfers
to Lender all the rents and revenues of the Property, including those now due,
past due, or to become due by virtue of any lease or other agreement for the
occupancy or use of all or any part of the Property, regardless of to whom the
rents and revenues of the Property are payable. Borrower hereby

                                       19

<PAGE>

authorizes Lender or Lender's agents to collect the aforesaid rents and revenues
and hereby directs each tenant of the Property to pay such rents to Lender or
Lender's agents; provided, however, that prior to written notice given by Lender
to Borrower of an Event of Default, Borrower shall collect and receive all rents
and revenues of the Property as trustee for the benefit of Lender and Borrower,
to apply the rents and revenues so collected to the sums secured by this
Instrument as required by this Instrument, so long as no such Event of Default
has occurred and is continuing, to the account of Borrower, it being intended by
Borrower and Lender that this assignment of rents constitutes an absolute
assignment and not an assignment for additional security only. Upon delivery of
written notice by Lender to Borrower of an Event of Default, and without the
necessity of Lender entering upon and taking and maintaining full control of the
Property in person, by agent or by a court-appointed receiver, Borrower's
license to collect the rents and revenues shall immediately cease and terminate,
and Lender shall immediately be entitled to possession of all rents and revenues
of the Property as specified in this Section as the same become due and payable,
including, but not limited to, rents then due and unpaid, and all such rents
shall immediately upon delivery of such notice be held by Borrower as trustee
for the benefit of Lender only; provided, however, that the written notice by
Lender to Borrower of the breach by Borrower shall contain a statement that
Lender exercises its rights to such rents. Borrower agrees that commencing upon
delivery of such written notice of Borrower's Event of Default by Lender to
Borrower, each tenant of the Property shall make such rents payable to and pay
such rents to Lender or Lender's agents on Lender's written demand to any tenant
therefor, delivered to such tenant personally, by mail or by delivering such
demand to the tenant at its location in the Property, without any liability on
the part of said tenant to inquire further as to the existence of a default by
Borrower. At such time, if any, that such Event of Default is waived by Lender,
Borrower's license to collect rents shall be reinstated.

     Borrower hereby covenants that Borrower has not executed any prior
assignment of said rents, that Borrower has not performed, and will not perform,
any acts or has not executed, and will not execute, any instrument which would
prevent Lender from exercising its rights under this Section, and that at the
time of execution of this Instrument there has been no prepayment of any of the
rents of the Property for more than one month prior to the due dates of such
rents. Borrower covenants that Borrower will not hereafter collect or accept
payment of any rents of the Property more than one month prior to the due dates
of such rents. Borrower further covenants that Borrower will execute and deliver
to Lender such further assignments of rents and revenues of the Property as
Lender may from time to time reasonably request.

     Borrower agrees that upon or at any time after (i) the occurrence of an
Event of Default hereunder, under the Note or any other Loan Document and during
the continuation thereof, or (ii) the first publication of notice of sale for
the foreclosure of this Instrument pursuant to Minnesota Statutes, Chapter 580,
or (iii) the commencement of an action to foreclose this Instrument pursuant to
Minnesota Statutes, Chapter 581, or (iv) the commencement of any period of
redemption after foreclosure of this Instrument, Lender shall, in any such
event, and at any such time, upon application to the District Court in the
county where the Property or any part thereof is located, by an action separate
from the foreclosure under Chapter 580, in the foreclosure action under Chapter
581 or by independent action (it being understood and agreed that the existence
of a foreclosure under Chapter 580 or a foreclosure action under Chapter 581 is
not a prerequisite to any action for a receiver hereunder), be entitled to the
appointment of a receiver for the rents, issues, profits and all other income of
every kind which shall accrue and be

                                       20

<PAGE>

owing for the use or occupation of the Property or any part thereof, whether
before or after foreclosure, or during the full statutory period of redemption,
if any, upon a showing that Borrower has breached any covenant contained in this
Instrument, the Note or the Loan Agreement, including, without limitation, any
covenant relating to any of the following:

     (1)  Repayment of tenant security deposits, with interest thereon, as
          required by Minnesota Statutes, Section 504B.178, if applicable;

     (2)  Payment when due of prior or current real estate taxes or special
          assessments with respect to the Property, or the periodic escrow for
          payment of the same;

     (3)  Payment when due of premiums for insurance of the types required
          hereby, or the periodic escrow for payment of the same; or

     (4)  Keeping of the covenants required of a lessor or licensor pursuant to
          Minnesota Statutes, Section 504B.161, Subdivision 1, if applicable.

Lender shall be entitled to the appointment of a receiver without regard to
waste, adequacy of the security or solvency of Borrower. The court shall
determine the amount of the bond to be posted by the receiver. The Lender or the
receiver, who shall be an experienced property manager, shall collect (until the
indebtedness secured hereby is paid in full and, in the case of a foreclosure
sale, during the entire redemption period, if any) the rents, issues, profits
and all other income of any kind from the Property, manage the Property so as to
prevent waste, execute leases within or beyond the period of the receivership,
if approved by the court, and apply all rents, issues, profits and other income
collected by him in the following order:

     (a)  to payment of all reasonable fees of the receiver, if any, approved by
          the court;

     (b)  to the items listed in clauses (1) through (4) above (to the extent
          applicable) in the priority as numbered;

     (c)  to expenses for normal maintenance, operation and management of the
          Property, including but not limited to Lender's out-of-pocket costs
          and all other costs and expenses which Lender is entitled to pay or
          incur pursuant to the Assignment; and

     (d)  the balance to Lender to be credited, prior to commencement of
          foreclosure, against the indebtedness secured hereby, in such order as
          Lender may elect, or to be credited, after commencement of
          foreclosure, to the amount required to be paid to effect a
          reinstatement prior to foreclosure sale, or to be credited, after a
          foreclosure sale, at the option of Lender, at its sole discretion, to
          any deficiency or to the amount required to be paid to effect a
          redemption, pursuant to Minnesota Statutes, Sections 580.30, 580.23,
          581.10, 582.032, 582.32, or their successors, as the case may be, with
          any excess to be paid to Borrower; provided, however, that if this
          Instrument is not reinstated nor the Property redeemed, as and during
          the times provided by said Sections 580.30, 580.23, 581.10, 582.032 or
          582.32 or their successors, the entire amount received pursuant
          hereto, after deducting therefrom the amounts applied by Lender to any
          deficiency, shall be the property

                                       21

<PAGE>

          of the purchaser of the Property at the foreclosure sale, together
          with all or any part of the Property acquired through foreclosure.

     The receiver shall file periodic accountings as the court determines are
necessary and a final accounting at the time of his discharge. Lender shall have
the right, at any time and without limitation, as provided in Minnesota
Statutes, Section 582.03, to advance money to the receiver to pay any part or
all of the expenses which the receiver should otherwise pay, if cash were
available from the Property, and all sums so advanced, with interest at a rate
per annum of five percent (5.00%) in excess of the rate provided in the first
paragraph of the Note (the "Default Rate"), shall be a part of the sum required
to be paid to redeem from any foreclosure sale. Said sums shall be proved by the
affidavit of Lender, its agent or attorney, describing the expenses for which
the same were advanced and describing the Property, which must be filed for
record in the office where this Instrument is recorded, and a copy thereof shall
be furnished to the sheriff and the receiver at least ten (10) days before the
expiration of any period of redemption. Until fully paid, the amounts required
to be paid to effect a redemption shall continue to accrue interest at the
Default Rate.

     The costs and expenses (including any receiver's fees and attorney's fees)
incurred by Lender pursuant to the powers herein contained shall be immediately
reimbursed by Borrower to Lender on demand, shall be secured hereby and shall
bear interest from the date incurred at the Default Rate. Lender shall not be
liable to account to Borrower for any action taken pursuant hereto, other than
to account for any rents actually received by Lender.

     Lender shall not be liable to Borrower, anyone claiming under or through
Borrower or anyone having an interest in the Property by reason of anything done
or left undone by Lender under this Section unless such liability arises as a
direct result of the gross negligence or willful misconduct of Lender.

     If the rents of the Property are not sufficient to meet the actual costs,
if any, of taking control of and managing the Property and collecting the rents,
any actual funds expended by Lender for such purposes shall become indebtedness
of Borrower to Lender secured by this Instrument pursuant to Section 8 hereof.
Unless Lender and Borrower agree in writing to other terms of payment, such
amounts shall be payable upon notice from Lender to Borrower requesting payment
thereof and shall bear interest from the date of disbursement at the rate stated
in the Note unless payment of interest at such rate would be contrary to
applicable law, in which event such amounts shall bear interest at the highest
rate which may be collected from Borrower under applicable law.

     Any entering upon and taking and maintaining of control of the Property by
Lender or the receiver and any application of rents as provided herein shall not
cure or waive any default hereunder or invalidate any other right or remedy of
Lender under applicable law or provided herein. This assignment of rents of the
Property shall terminate at such time as this Instrument ceases to secure
indebtedness held by Lender.

SECTION 19. DEFAULTS; ACCELERATION; REMEDIES.

Each of the following shall constitute an "Event of Default" under this
Instrument:

                                       22

<PAGE>

     (a) Any failure of Borrower to pay any money as and when due under the Note
or under any of the other Loan Documents;

     (b) Any breach of Sections 5, 15, 16, or 29 of this Instrument, or the
Environmental Indemnity Agreement;

     (c) Other than as specified in items (a) or (b) above, any breach of any
covenant, representation, warranty, or other obligation of Borrower or any
guarantor or indemnitor under the Note, this Instrument, or any of the other
Loan Documents, which breach is not completely cured on or before the 30th day
after notice of the same from Lender to Borrower; provided however that if the
default is capable of cure but with diligence cannot be cured within such period
of 30 days, and if Borrower shall have given Lender evidence satisfactory to
Lender that Borrower has commenced the cure within such 30-day period and at all
times after such commencement has pursued such cure diligently, then such period
shall be extended for so long as is reasonably necessary, but in no event beyond
the 90th day after the original notice of default.

     If Lender shall have the right to exercise any of its remedies by reason of
any default as to which there is no grace period or by reason of expiration of
any grace period without cure of any applicable default, then there shall be no
requirement of notice and time to cure for any other or subsequent default.

     Upon the occurrence and during the continuance of any Event of Default,
Lender may, at Lender's option, declare all of the sums secured by this
Instrument to be immediately due and payable without further demand, and may
exercise any and all remedies permitted hereunder, under any of the Loan
Documents, or pursuant to applicable law. Without limitation of the foregoing,
Lender is hereby granted a power of sale and may invoke the power of sale
granted herein. Borrower acknowledges that the power of sale herein granted may
be exercised by Lender without prior judicial hearing. Borrower has the right to
bring an action to assert the non-existence of a breach or any other defense of
Borrower to acceleration and sale. Lender shall be entitled to collect from
Borrower all actual costs and expenses incurred in pursuing such remedies,
including, but not limited to, reasonable attorney's fees and costs of
environmental reports, appraisals, documentary evidence, abstracts, and title
reports.

     Without limiting the generality of the foregoing, Lender may, upon
compliance by Lender of any requirements of applicable law:

          (i) enter and take possession of the Property or any part thereof,
     exclude Borrower and all persons claiming under Borrower wholly or partly
     therefrom, and operate, use, manage and control the same, or cause the same
     to be operated by a person selected by Lender, and upon such entry, from
     time to time, at the expense of Borrower and of the Property, make all such
     repairs, replacements, alterations, additions or improvements thereto as
     Lender may deem proper, and collect and receive the rents, revenues,
     issues, profits, royalties, income and be authorized to incur under the
     provisions of this Instrument and applicable law, the remainder to be
     applied to the

                                       23

<PAGE>

     payment, performance and discharge of the obligations secured by this
     Instrument in such order as Lender may determine until the same have been
     paid in full;

          (ii) institute an action for the foreclosure of this Instrument and
     the sale of the Property pursuant to the judgment or decree of a court of
     competent jurisdiction;

          (iii) foreclose this Instrument by action or advertisement, pursuant
     to the statutes of the State of Minnesota in which case made and provided,
     power being expressly granted to sell the Property at public auction and
     convey the same to the purchaser in fee simple and, out of the proceeds
     arising from such sale, to pay all indebtedness secured hereby with
     interest, and all legal costs and charges of such foreclosure and the
     maximum attorneys fees permitted by law, which costs, charges and fees the
     Borrower agrees to pay;

          (iv) take all steps to protect and enforce the rights of Lender under
     this Instrument by suit for specific performance of any covenant herein
     contained, or in aid of the execution of any power herein granted or for
     the enforcement of any other rights; and/or

          (v) exercise any or all of the rights and remedies available to a
     secured party under the Uniform Commercial Code, including the right to (A)
     enter the Property and take possession of the Collateral without demand or
     notice and without prior judicial hearing or legal proceedings, which
     Borrower hereby expressly waives, (B) require Borrower to assemble the
     Collateral, or any portion thereof, and make it available to Lender at a
     place or places designated by Lender and reasonably convenient to both
     parties and (C) sell all or any portion of the Collateral at public or
     private sale, without prior notice to Borrower except as otherwise required
     by law (and if notice is required by law, after ten days' prior written
     notice), at such place or places and at such time or times and in such
     manner and upon such terms, whether for cash or on credit, as Lender in its
     sole discretion may determine. As to any property subject to Article 9 of
     the Uniform Commercial Code included in the Property, Lender may proceed
     under the Uniform Commercial Code or proceed as to both the real property
     and personal property in accordance with the provisions of this Instrument
     and the rights and remedies that Lender may have at law or in equity, in
     respect of the Property, and treat both the real property and personal
     property included in the Property as one parcel or package of security.
     Borrower shall have the burden of proving that any sale pursuant to this
     Section or pursuant to the Uniform Commercial Code was conducted in a
     commercially unreasonable manner.

     Any deed delivered to the purchaser at any sale pursuant hereto may be
without any covenant or warranty, expressed or implied. The recitals in the deed
shall be prima facie evidence of the truth of the statements made therein. The
proceeds of any sale made either under the power of sale hereby given or under a
judgment, order or decree made in any action to foreclose or to enforce this
Instrument shall be applied in the following order: (a) to all actual costs and
expenses of the sale, including, but not limited to, fees for any foreclosure
services, reasonable attorney's fees and costs of title evidence; (b) to all
sums secured by this Instrument

                                       24

<PAGE>

in such order as Lender, in Lender's sole discretion, directs; and (c) the
excess, if any, to the person or persons legally entitled thereto.

     Borrower shall not at any time (a) insist upon, plead or in any manner
whatever claim or take any benefit or advantage of any applicable present or
future stay, extension or moratorium law or (b) claim, take or insist upon any
benefit or advantage of any present or future law providing for the valuation or
appraisal of the Property prior to any sale or sales thereof which may be made
under or by virtue of the provisions of this Instrument; and Borrower hereby
waives all benefit or advantage of any such law or laws. Borrower hereby waives
any and all rights and equities of redemption from sale under any judgment of
foreclosure of this Instrument and all notice or notices of seizure, and all
right to have the Property marshaled upon any foreclosure hereof. Lender shall
not be obligated to pursue or exhaust its rights or remedies as against any part
of the Property before proceeding against any other part thereof and Borrower
hereby waives any right or claim of right to have Lender proceed in any
particular order. Borrower hereby waives and releases all errors, defects and
imperfections in any proceedings instituted by Lender under this Instrument.

     Anything to the contrary herein or elsewhere notwithstanding, Lender may
cease or suspend any and all performance required of Lender under the Loan
Documents upon and during the continuance of any Event of Default.

SECTION 20. ACCELERATION IN CASE OF BORROWER'S INSOLVENCY. If Borrower shall
voluntarily file a petition under Title 11 of the U.S. Code (the "Act"), as such
Act may from time to time be amended, or under any similar or successor Federal
statute relating to bankruptcy, insolvency, arrangements or reorganizations, or
under any state bankruptcy or insolvency act, or file an answer in any
involuntary proceeding admitting insolvency or inability to pay debts, or if
Borrower shall fail to obtain a vacation of involuntary proceedings brought for
the reorganization, dissolution or liquidation of Borrower, within 120 days of
the filing of such involuntary proceeding, or if Borrower shall be adjudged a
bankrupt, or if a trustee or receiver shall be appointed for Borrower or
Borrower's property, or if the Property shall become subject to the jurisdiction
of a Federal bankruptcy court or similar state court, or if Borrower shall make
an assignment for the benefit of Borrower's creditors, or if there is an
attachment, execution or other judicial seizure of any portion of Borrower's
assets and such seizure is not discharged within 60 days, then Lender may, at
Lender's option, declare all of the sums secured by this Instrument to be
immediately due and payable without prior notice to Borrower, and Lender may
invoke any remedies permitted or provided for herein or in any of the Loan
Documents or pursuant to applicable law. Any reasonable attorney's fees and
other actual expenses incurred by Lender in connection with Borrower's
bankruptcy or any of the other aforesaid events shall be additional indebtedness
of Borrower secured by this Instrument pursuant to Section 8 hereof.

SECTION 21. REMEDIES CUMULATIVE. Each remedy provided in this Instrument is
distinct and cumulative to all other rights or remedies under this Instrument or
afforded by law or equity, and may be exercised concurrently, independently, or
successively, in any order whatsoever.

                                       25

<PAGE>

SECTION 22. WAIVER OF STATUTE OF LIMITATIONS. Borrower hereby waives the right
to assert any statute of limitations as a bar to the enforcement of the lien of
this Instrument or to any action brought to enforce the Note or any other
obligation secured by this Instrument.

SECTION 23. WAIVER OF MARSHALLING. Notwithstanding the existence of any other
security interest in the Property held by Lender or by any other party, Lender
shall have the right to determine the order in which any or all of the Property
shall be subjected to the remedies provided herein. Lender shall have the right
to determine the order in which any or all portions of the indebtedness secured
hereby are satisfied from the proceeds realized upon the exercise of the
remedies provided herein. Borrower, any party who consents to this Instrument
and any party who now or hereafter acquires a security interest in the Property
and who has actual or constructive notice hereof hereby waives any and all right
to require the marshalling of assets in connection with the exercise of any of
the remedies permitted by applicable law or provided herein.

SECTION 24. RELEASE. Upon payment of all sums secured by this Instrument, Lender
shall release this Instrument. Borrower shall pay all reasonable actual costs
incurred by Lender in connection with the release of this Instrument.

SECTION 25. ADDITIONAL BORROWER COVENANTS.

     (a) Borrower shall perform and complete (or cause to be performed and
completed) the following work at the Property in a workmanlike and lien-free
manner by June 30, 2004: exterior painting; scrape, prime and paint rooftop
cooling tower support structures, steel stairs at south end of building,
exterior stair and dock area handrails and rusted exterior service doors and
frames.

     (b) Borrower has entered into a certain Escrow and Disbursement Agreement
(the "Escrow Agreement") dated as of May 12, 2004, by and between Meritex
Enterprises, Inc. ("Meritex"), Borrower and First American Title Insurance
Company. Borrower shall cause Meritex to perform and complete all "Remaining
Landlord Improvements" (as such term is defined in the Escrow Agreement) in
accordance with and as required under the Unisys Lease. If at any time pursuant
to Section 10 of the Escrow Agreement Borrower becomes entitled to utilize the
funds in the Improvement Escrow Account (as such term is defined in the Escrow
Agreement), Borrower shall promptly thereafter perform and complete (or cause to
be performed and completed) the Remaining Landlord Improvements in accordance
with and as required under the Unisys Lease. If at any time pursuant to Section
10 of the Escrow Agreement Borrower becomes entitled to receive the funds in the
Improvement Escrow Account prior to the performance and completion of the
Remaining Landlord Improvements (other than reimbursements for work performed by
Borrower), Borrower shall deposit or cause to be deposited such funds with
Lender for deposit into the Replacement Reserve established pursuant to the
Replacement Reserve and Security Agreement, and such funds shall be disbursed in
accordance with the terms and provisions of the Replacement Reserve and Security
Agreement upon Borrower's performance and completion of the Remaining Landlord
Improvements in accordance with and as required under the Unisys Lease.

                                       26

<PAGE>

SECTION 26. NONRECOURSE LOAN. Subject to the provisions of this Section, and
notwithstanding any provision of the Loan Documents other than this Section, the
personal liability of Borrower, and of Indemnitor and any general partner of
Borrower, to pay the principal of and interest on the debt evidenced by the Note
and any other agreement evidencing Borrower's obligations under the Note shall
be limited to (a) the Collateral, (b) the personal property described in and
pledged under any Loan Document other that this Instrument, and (c) the rents,
profits, issues, products and income of the Property, including any received or
collected by or on behalf of Borrower after an Event of Default. Notwithstanding
the foregoing, Borrower, Indemnitor and any general partner of Borrower shall be
folly and personally, jointly and severally, liable for payment and performance
of all obligations set forth in the Loan Documents, including the payment of all
principal, interest, and other amounts under the Note, in the event of (i) the
occurrence of an Event of Default under Sections 15 or 16 (unless the Event of
Default under Section 16 is the existence of a mechanics' lien against the
Property) of this Instrument, or (ii) the occurrence of any condition or event
described in Section 20 (other than any involuntary bankruptcy proceedings, so
long as neither Borrower nor any affiliate of Borrower has arranged, solicited,
induced, financed or colluded with others in the filing of such involuntary
petition, case or proceeding).

     Further, Borrower, Indemnitor and any general partner of Borrower shall be
personally liable in the amount of any loss, damage or cost resulting from (a)
fraud or intentional misrepresentation by Borrower or Indemnitor in connection
with obtaining the loan evidenced by the Note, (b) any intentional physical
waste of any portion of the Property or any other collateral securing the loan
evidenced by the Note by Borrower, (c) misappropriation of insurance proceeds,
condemnation awards, or other sums or payments attributable to the Property not
applied in accordance with the provisions of the Loan Documents, (d) all rents,
profits, issues, products and income of the Property received or collected by or
on behalf of Borrower after an Event of Default and not applied to payment of
principal and interest due under the Note, and to the payment of actual and
reasonable operating expenses of the Property, as they become due or payable
(except to the extent that such application of such funds is prevented by
bankruptcy, receivership, or similar judicial proceeding in which Borrower is
legally prevented from directing the disbursement of such sums), (e)
misappropriation (including failure to turn over to Lender on demand following
an Event of Default) of tenant security deposits and rents collected in advance,
or of funds held by Borrower for the benefit of another party, (f) failure to
pay transfer fees and charges due Lender in connection with any subordinate
financing, or in connection with any transfer of all or any part of the
Property, or any interest therein, or transfer of any beneficial interest in
Borrower (if Borrower is not a natural person or persons but is a corporation,
partnership, limited liability company, trust or other legal entity), (g)
failure by Borrower, Indemnitor, any general partner of Borrower, or any other
indemnitor or guarantor to comply with the covenants, obligations, liabilities,
warranties and representations contained in the Environmental Indemnity
Agreement or otherwise pertaining to environmental matters, (h) in the event
Lender has waived (or Borrower has failed to pay) the monthly collection for
real and personal property taxes, assessments, insurance premiums, or ground
rents, then failure by Borrower to pay any or all such taxes, assessments,
premiums and rents, to the extent of any rents, issues, profits and/or income
collected by Borrower in excess of normal and verifiable operating expenses of
the Property, (i) any management fee taken by Borrower or any principal or
affiliate of Borrower after an Event of Default, (j) termination of the Unisys
Lease as a result of a landlord default thereunder, (k) the occurrence of an
Event of Default under Section 29, to

                                       27

<PAGE>

the extent such breach is reasonably likely to result in substantive
consolidation or (1) the occurrence of an Event of Default under Section 16 as a
result of the existence of a mechanics' lien against the Property.

     No provision of this Section shall (i) affect the enforcement of the
Environmental Indemnity Agreement or any guaranty or similar agreement executed
in connection with the debt evidenced by the Note, (ii) release or reduce the
debt evidenced by the Note, (iii) impair the lien of this Instrument, (iv)
impair the rights of Lender to enforce any provisions of this Instrument, (v)
limit Lender's ability to obtain a deficiency judgment or judgment on the Note
or otherwise against Borrower to the extent necessary to obtain any amount for
which Borrower may be liable in accordance with this Section.

SECTION 27. REPRESENTATIONS OF BORROWER. Borrower hereby represents and warrants
to Lender the following:

     (a) Organization. Borrower is a limited liability company duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
formation, and is qualified to do business as a limited liability company in the
state where the Property is located. There are no proceedings or actions
pending, threatened in writing or contemplated for the liquidation, termination
or dissolution of Borrower.

     (b) Rent Roll. Borrower has delivered to Lender a certified Rent Roll (the
"Rent Roll"), which constitutes a true, correct, and complete list of each and
every lease affecting the Property, together with all extensions and amendments
thereof (the "Existing Leases"); Borrower has delivered to Lender a true,
correct, and complete copy of each of the Existing Leases; and there are no
other leases, assignments, modifications, extensions, renewals, or other
agreements of any kind whatsoever (written or oral) outstanding with respect to
the leases or the Property.

     (c) Leases. Unless otherwise specified in the Rent Roll:

          (i) the Existing Leases are in full force and effect;

          (ii) Borrower has not given any notice of default to any tenant under
     an Existing Lease (an "Existing Tenant") which remains uncured;

          (iii) to the best of Borrower's knowledge, no Existing Tenant has any
     set off, claim or defense to the enforcement of any Existing Lease;

          (iv) no Existing Tenant is in arrears in the payment of rent,
     additional rent or any other charges whatsoever due under any Existing
     Lease; or, to the knowledge of Borrower, is materially in default in the
     performance of any other obligations of such Existing Tenant under the
     applicable Existing Lease; and

          (v) Borrower has completed all work or alterations required of the
     landlord or lessor under each Existing Lease; and all of the other
     obligations of landlord or lessor under the Existing Leases have been
     performed.

                                       28

<PAGE>

     (d) Rents. The Rent Roll truly and completely discloses all annual and
monthly rents payable by all Existing Tenants, including, to the best of
Borrower's knowledge, all percentage rents, if any, expiration dates of the
Existing Leases, and the amount of security deposit being held by Borrower under
each Existing Lease, if any; and Borrower has not granted any Existing Tenant
any rent concessions (whether in form of cash contributions, work agreements,
assumption of an Existing Tenant's other obligations, or otherwise) or
extensions of time whatsoever not reflected in such Rent Roll.

     (e) Lease Issues. There are no legal proceedings commenced (or, to the best
of the knowledge of Borrower, threatened) against Borrower by any Existing
Tenant; no rental in excess of one month's rent has been prepaid under any of
the Existing Leases; each of the Leases is valid and binding on Borrower and, to
the best of Borrower's knowledge, the other parties thereto in accordance with
its terms; and the execution of this Instrument and the other Loan Documents
will not constitute an event of default under any of the Existing Leases.

     (f) Security Deposits. Except as set forth on the Rent Roll, Borrower
currently holds the security deposits (if any) specified in the Existing Leases
and has not given any credit, refund, or set off against such security deposits
to any person.

     (g) No Residential Units. There are no residential units in the Property,
and no portion of the Property is an apartment or other unit subject to any form
or rent control, stabilization or regulation; and no person presently occupies
any part of the Property for dwelling purposes.

     (h) No Undisclosed Tenants. Except for Borrower, there are no persons or
entities legally occupying space in the Property as tenants other than the
persons or entities specifically named in the Existing Leases.

     (i) Title. Except as specifically listed in the schedule of exceptions to
coverage in the title policy insuring Lender's interest in the Property,
Borrower is now in possession of the Property; Borrower's possession of the
Property is peaceable and undisturbed; Borrower does not know any facts by
reason of which any claim to the Property, or any part thereof, might arise or
be set up adverse to Borrower; and the Property is free and clear of (i) any
lien for taxes (except real property taxes not yet due and payable for the
calendar year in which this Instrument is being executed), and (ii) any
easements, rights-of-way, restrictions, encumbrances, liens or other exceptions
to title by mortgage, decree, judgment, agreement, instrument, or, to the
knowledge of Borrower, proceeding in any court.

     (j) Liens. All charges for labor, materials or other work of any kind
furnished in connection with the construction, improvement, renovation or
rehabilitation of the Property at Borrower's request or any portion thereof have
been, or concurrently with the closing of the loan secured by this Instrument
will be, paid in full, and, to the best of Borrower's knowledge, no unreleased
affidavit claiming a lien against the Property, or any portion thereof, for the
supplying of labor, materials or services for the construction of improvements
on the Property has been executed or recorded in the mechanic's lien or other
appropriate records in the county in which the Property is located.

                                       29

<PAGE>

     (k) Compliance with Law. To the best of Borrower's knowledge, the Property
and the current and contemplated uses of the Property are in compliance with all
applicable federal, state and municipal laws, rules, regulations and ordinances,
applicable restrictions, zoning ordinances, building codes and regulations,
building lines and easements, including, without limitation, federal and state
environmental protection law and the Americans with Disabilities Act of 1990,
the Fair Housing Amendments Act of 1988, all state and local laws or ordinances
related to handicapped access, and any statute, rule, regulation, ordinance, or
order of governmental bodies or regulatory agencies, or any order or decree of
any court adopted or enacted with respect thereto; no governmental authority
having jurisdiction over any aspect of the Property has made a claim or
determination that there is any such violation; the Property is not included in
any area identified by the Secretary of Housing and Urban Development pursuant
to the Flood Disaster Protection Act of 1973, as amended, as an area having
special flood hazards; and all permits, licenses and the like which are
necessary for the operation of the Property have been issued and are in full
force and effect.

     (l) Adverse Changes. There have been no material adverse changes, financial
or otherwise, in the condition of Borrower from that disclosed to Lender in the
loan application submitted to Lender by Borrower, or in any supporting data
submitted in connection with the Loan, and all of the information contained
therein was true and correct when submitted and is now substantially and
materially true and correct on the date hereof.

     (m) Claims, Litigation. There is no claim, litigation or condemnation
proceeding pending, or, to the knowledge of Borrower, threatened in writing,
against the Property or Borrower, which would affect the Property or Borrower's
ability to perform its obligations in the connection with the Loan.

     (n) Single Purpose. Borrower does not own any real property or assets other
than the Property and does not operate any business other than the management
and operation of the Property.

     (o) Bankruptcy. No proceeding in bankruptcy or insolvency has ever been
instituted by or against Borrower, Indemnitor, Drawbridge Special Opportunities
Fund LP ("Drawbridge") or the general partner in Drawbridge, and no such
proceeding is now pending or, to the best of Borrower's knowledge, contemplated.

     (p) Solvency. Borrower is, and if there are any general partners or members
of Borrower, such partners or members are, solvent pursuant to the laws of the
United States, as reflected by the entries in Borrower's books and records and
as reflected by the actual facts.

     (q) Enforceability of Loan Documents. The Loan Documents have been duly
authorized, executed and delivered by Borrower and constitute valid and binding
obligations of Borrower, enforceable against Borrower in accordance with their
respective terms. No approval, consent, order or authorization of any
governmental authority and no designation, registration, declaration or filing
with any governmental authority is required in connection with the execution and
delivery of the Note, this Instrument or any other Loan Document. Neither
Borrower nor any guarantor or indemnitor has any defense or offset to the
enforcement of any Loan Document, or any claim against Lender. Neither Borrower
nor any guarantor or

                                       30

<PAGE>

indemnitor has any right whatsoever against Lender other than the express
contractual obligations of Lender set forth in the Loan Documents. Any rights or
claims contrary to this provision, whether known or unknown, are hereby
expressly waived.

     (r) Non-contravention. The execution and delivery of the Loan Documents
will not violate or contravene in any way the articles of incorporation or
bylaws or partnership agreement, articles of organization or operating agreement
as the case may be, of Borrower or any indenture, agreement or instrument to
which Borrower is a party or by which it or its property may be bound, or be in
conflict with, result in a breach of or constitute a default under any such
indenture, agreement or other instrument, result in the creation or imposition
of any lien, charge or encumbrance of any nature whatsoever upon any of the
property or assets of Borrower, except as contemplated by the provisions of such
Loan Documents, and no action or approval with respect thereto by any third
person is required.

     (s) Homestead. No part of the Property is all or a part of Borrower's
homestead or the homestead of anyone.

     (t) Utilities. The Property is served by all utilities required for the
current or contemplated use thereof. All utility service is provided by public
utilities and the Property has accepted or is equipped to accept such utility
service.

     (u) Public Roads. To the best of Borrower's knowledge, all public roads and
streets necessary for service of and access to the Property for the current or
contemplated use thereof have been completed, are serviceable and all-weather
and are physically and legally open for use by the public.

     (v) Water and Sewers. The Property is serviced by public water and sewer
systems,

     (w) Damage. The Property is free from damage caused by fire or other
casualty.

     (x) Waste Disposal. To the best of Borrower's knowledge, except as
disclosed in any environmental report obtained by Lender in connection with the
loan secured by this Instrument, all liquid and solid waste disposal, septic and
sewer systems located on the Property are in a good and safe condition and
repair and in compliance with all applicable laws.

     (y) Embargoed Person. At all times throughout the term of the Loan,
including after giving effect to any transfers permitted pursuant to the Loan
Documents, (a) none of the funds or other assets of Borrower, general partner of
Borrower and Indemnitor constitute property of, or are beneficially owned,
directly or indirectly, by any person, entity or government subject to trade
restrictions under U.S. law, including, but not limited to, the International
Emergency Economic Powers Act, 50 U.S.C. Sections 1701 et seq., The Trading with
the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations
promulgated thereunder with the result that the investment in Borrower, general
partner of Borrower or Indemnitor, as applicable (whether directly or
indirectly), is prohibited by law or the Loan made by the Lender is in violation
of law ("Embargoed Person"); (b) no Embargoed Person has any interest of any
nature whatsoever in Borrower, general partner of Borrower or Indemnitor, as
applicable, with the result that the investment in Borrower, general partner of
Borrower or Indemnitor (as applicable (whether directly or indirectly), is
prohibited by law or the Loan is in violation of the law; and

                                       31

<PAGE>

(c) none of the funds of Borrower, general partner of Borrower or Indemnitor, as
applicable, have been derived from any unlawful activity with the result that
the investment in Borrower, general partner of Borrower or Indemnitor, as
applicable (whether directly or indirectly), is prohibited by law or the Loan is
in violation of the law.

SECTION 28. BORROWER'S ADDITIONAL COVENANTS. Borrower hereby covenants, agrees
and undertakes as follows:

     (a) Alterations of Property. Except as permitted under the Unisys Lease,
Borrower shall not undertake or commence any alterations of any improvements on
the Property the cost of which is in excess of five percent of the then original
principal amount of the Note, without the prior written consent of Lender (such
consent not to be unreasonably withheld, conditioned or delayed).

     (b) Further Assurances. Borrower shall from time to time, at the reasonable
request of Lender, (i) promptly correct any defect, error or omission which may
be discovered in the contents of this Instrument or in any other Loan Document
or in the execution or acknowledgment thereof; (ii) execute, acknowledge,
deliver and record and/or file such further documents or instruments (including,
without limitation, further mortgages, security agreements, financing
statements, continuation statements, assignments of rents or leases and
environmental indemnity agreements) and perform such further acts and provide
such further assurances as may be reasonably necessary, desirable or proper, in
Lender's opinion, to carry out more effectively the purposes of this Instrument
and such other instruments and to subject to the liens and security interests
hereof and thereof any property intended by the terms hereof or thereof to be
covered hereby or thereby, including specifically, but without limitation, any
renewals, additions, substitutions, replacements, or appurtenances to the
Property; provided that such documents or instruments do not materially increase
Borrower's liability under the Loan Documents; and (iii) execute, acknowledge,
deliver, procure, and file and/or record any document or instrument (including
specifically, but without limitation, any financing statement) deemed advisable
by Lender to protect the liens and the security interests herein granted against
the rights or interests of third persons; provided that such documents or
instruments do not materially increase Borrower's liability under the Loan
Documents. Borrower shall not be required to pay any costs of Lender connected
with any of the foregoing in this paragraph.

     (c) Mortgage Taxes. Borrower shall at any time any law shall be enacted
imposing or authorizing the imposition of any tax upon this Instrument, or upon
any rights, titles, liens or security interests created hereby, or upon the
obligations secured hereby or any part thereof, promptly pay all such taxes;
provided that, if such law as enacted makes it unlawful for Borrower to pay such
tax, Borrower shall not pay nor be obligated to pay such tax, and in the
alternative, Borrower may, in the event of the enactment of such a law, and
must, if it is unlawful for Borrower to pay such taxes, prepay the obligations
secured hereby in full within 60 days after demand therefor by Lender.

     (d) Minerals. Borrower shall not permit any drilling or exploration for or
extraction, removal or production of any mineral, natural element, compound or
substance from the surface or subsurface of the Property regardless of the depth
thereof or the method of mining or extraction thereof.

                                       32

<PAGE>

     (e) Maintenance of Borrower Name, Structure. Borrower shall not change its
name, identity, structure or employer identification number during the term of
the Loan without the prior written consent of Lender not to be unreasonably
withheld.

     (f) Costs and Expenses. Borrower shall pay within ten (10) business days of
demand all reasonable and bona fide out-of-pocket costs, fees and expenses and
other expenditures, including, but not limited to, reasonable attorneys' fees
and expenses, paid or incurred by Lender to third parties incident to this
Instrument or any other Loan Document (including, but not limited to, reasonable
attorneys' fees and expenses in connection with the negotiation, preparation and
execution hereof and of any other Loan Document and any amendment hereto or
thereto, any release hereof, any consent, approval or waiver hereunder or under
any other Loan Document, the making of any advance under the Note, and any suit
to which Lender is a party involving this Instrument or the Property) or
incident to the enforcement of the obligations secured hereby or the exercise of
any right or remedy of Lender under any Loan Document. In the event of any
dispute, action or lawsuit regarding the terms hereof or the terms of any other
Loan Document, the prevailing party will have the right to recover from the
other party all court costs and reasonable attorneys' fees and disbursements
incurred with respect thereto, in addition to all other applicable damages and
costs.

     (g) Compliance with Laws. Borrower shall maintain and keep the Property in
compliance with all applicable laws.

SECTION 29. COVENANTS WITH RESPECT TO SINGLE PURPOSE, INDEBTEDNESS, OPERATIONS,
FUNDAMENTAL CHANGES OF BORROWER. Borrower represents, warrants and covenants as
of the date of hereof, and until such time as the indebtedness secured hereby is
paid in full, that Borrower:

          (i) does not own and will not own any assets other than the Property
     (including incidental personal property necessary for the operation thereof
     and proceeds therefrom);

          (ii) is not engaged and will not engage in any business, directly or
     indirectly, other than the ownership, management and operation of the
     Property;

          (iii) will not enter into any contract or agreement with any partner,
     member, shareholder, trustee, beneficiary, principal or affiliate of
     Borrower except upon terms and conditions that are intrinsically fair and
     substantially similar to those that would be available on an arms-length
     basis with third parties other than such affiliate;

          (iv) has not incurred and will not incur any debt, secured or
     unsecured, direct or contingent (including guaranteeing any obligation),
     other than (i) the obligations secured by this Instrument, and (ii) trade
     payables or accrued expenses incurred in the ordinary course of business of
     operating the Property;

          (v) has not made and will not make any loan or advances to any person
     or entity;

                                       33

<PAGE>

          (vi) is and reasonably expects to remain solvent and pay its own
     liabilities, indebtedness, and obligations of any kind from its own
     separate assets as the same shall become due [this representation is made
     only as of the date hereof);

          (vii) has done or caused to be done and will do all things necessary
     to preserve its existence, and will not, nor will any partner, member,
     shareholder, trustee, beneficiary, or principal amend, modify or otherwise
     change its partnership certificate, partnership agreement, articles of
     incorporation, by-laws, articles of organization, operating agreement, or
     other organizational documents in any manner;

          (viii) shall continuously maintain its existence and be qualified to
     do business in all states necessary to carry on its business, specifically
     including in the case of Borrower, the state where the Property is located;

          (ix) will conduct and operate its business as presently conducted and
     operated;

          (x) will maintain books and records and bank accounts separate from
     those of its partners, members, shareholders, trustees, beneficiaries,
     principals, affiliates, and any other person or entity;

          (xi) will be, and at all times will hold itself out to the public as,
     a legal entity separate and distinct from any other (including any of its
     partners, members, shareholders, trustees, beneficiaries, principals and
     affiliates), and not as a department or division of any entity;

          (xii) will file its own tax returns or consolidated returns but will
     note that its assets are not available to creditors of affiliates;

          (xiii) has and reasonably expects to maintain adequate capital for the
     normal obligations reasonably foreseeable in a business of its size and
     character and in light of its contemplated business operations [this
     representation is made only as of the date hereof);

          (xiv) will not seek, acquiesce in, or suffer or permit its
     liquidation, dissolution or winding up, in whole or in part;

          (xv) will not enter into any transaction of merger or consolidation,
     or acquire by purchase or otherwise all or substantially all of the
     business or assets of, or any stock of beneficial ownership of, any person
     or entity;

          (xvi) will not commingle or permit to be commingled its funds or other
     assets with those of any other person or entity;

          (xvii) 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 other person or entity;

                                       34

<PAGE>

          (xviii) except as expressly provided for in the Loan Documents, does
     not and will not hold itself out to be responsible for the debts or
     obligations of any other person or entity;

          (xix) except as expressly provided for in the Loan Documents, has not
     and will not guarantee or otherwise become liable on or in connection with
     any obligation of any other person or entity;

          (xx) shall not do any act which would make it impossible to carry on
     its ordinary business;

          (xxi) will not possess or assign the Property for other than a
     business or company purpose;

          (xxii) shall not hold title to its assets other than in its name;

          (xxiv) shall comply with all (and shall not suffer to be inaccurate
     any) of the assumptions, statements, certifications, representations,
     warranties and covenants regarding or made by Borrower contained in or
     appended to any opinion of Borrower's legal counsel delivered in connection
     with the transaction in which the Loan Documents are executed;

          (xxv) shall not, without the unanimous consent of its board of
     directors (including the Outside Director), institute proceedings for
     itself to be adjudicated bankrupt or insolvent; consent to the institution
     of a bankruptcy or insolvency proceedings against it; file a petition
     seeking, or consent to, reorganization or relief under any applicable
     federal or state law relating to bankruptcy; consent to the appointment of
     a receiver, liquidator, assignee, trustee, sequestrator (or other similar
     official) for itself or a substantial part of its property; make any
     assignment for the benefit of creditors; or admit in writing its inability
     to pay its debts generally as they become due;

          (xxvi) shall not, without the unanimous consent of its board of
     directors (including the Outside Director), (A) liquidate or dissolve, in
     whole or in part; (B) consolidate, merge or enter into any form of
     consolidation with or into any other person or entity, nor convey, transfer
     or lease its assets substantially as an entirety to any person or entity
     nor permit any person or entity to consolidate, merge or enter into any
     form of consolidation with or into itself; or (C) amend any provisions of
     its organizational documents containing provisions similar to those
     contained in this Section 29; and

          (xxvii) shall at all times maintain on its board of directors at least
     one independent director (an "Outside Director"), who shall be reasonably
     satisfactory to Lender and shall not have been at the time of such
     individual's appointment as Outside Director, and may not have been at any
     time during the preceding five years, (1) a shareholder, member, officer,
     director, partner or employee of Borrower or any of its shareholders,
     members, partners, subsidiaries or affiliates, (2) a customer of, or
     supplier to, Borrower or any of its shareholders, members, partners,
     subsidiaries or affiliates, (3) a person controlling or under common
     control with any such shareholder, director, partner, member, supplier or

                                       35

<PAGE>

     customer, or (4) a member of the immediate family of any such shareholder,
     member, officer, director, partner, employee, supplier or customer.

SECTION 30. NOTICE. All notices given under this Agreement shall be in writing,
and sent to the other party at its address set forth below or at such other
address as such party may designate by notice to the other party and shall be
deemed given on the earliest of (i) actual receipt, duly evidenced by any
commercially reasonable means, (ii) three Business Days after mailing, by
certified or registered U.S. Mail, return receipt requested, postage prepaid,
(iii) one Business Day after timely delivery, fee prepaid, to a national
overnight delivery service (such as FedEx, Purolater Courier, U.P.S. Next Day
Air), (iv) the date of transmission of notice sent by telecopier or facsimile
machine (with a copy thereof sent in accordance with clause (ii) above) provided
notice was transmitted on a Business Day, otherwise notice shall be deemed given
on the next Business Day. The applicable addresses are as follows:

To Borrower:

Stonewater UIS Funding LLC
c/o Drawbridge Special Opportunities Fund LLP
1251 Avenue of the Americas, 16th Floor
New York, New York 10021
Attn: Kevin Treacy
Facsimile No.: (212)798-6099

With a Copy to:

Stonewater Partners
22 Deer Creek Lane
Mt. Kisco, New York 10549
Attn: Jeffrey Toporek
Facsimile No.: (914) 470-4011

With a Copy to:

Solomon and Weinberg LLP
685 Third Avenue, 30th Floor
New York, New York 10017
Attn: Howard R. Shapiro, Esq.
Telephone No.: (212)605-1000
Facsimile No.: (212) 605-0999

To Lender:

Greenwich Capital Financial Products, Inc.
600 Steamboat Road

                                       36

<PAGE>

Greenwich, Connecticut 06830
Attn: Commercial Mortgage Loan Department
Telephone No.: (203)618 2373
Facsimile No.: (203)629 8363

With a Copy to:

Greenwich Capital Financial Products, Inc.
600 Steamboat Road
Greenwich, Connecticut 06830
Attn: Legal Department
Telephone No.: (203) 625 6065
Facsimile No.: (203) 629 5718

And to:

Katten Muchin Zavis Rosenman
525 W. Monroe Street, Suite 1600
Chicago, Illinois 60661
Attn: Daniel J. Perlman, Esq.
Telephone No.: (312) 902-5200
Facsimile No.: (312) 902-1061

A "Business Day" is any day other than a Saturday or Sunday on which the Lender
is open for business. Borrower hereby requests that any notice of default or
notice of sale in any judicial or nonjudicial foreclosure proceeding be mailed
to Borrower at its address as specified herein.

SECTION 31. UNIFORM INSTRUMENT; GOVERNING LAW; SEVERABILITY. This form of
instrument combines uniform covenants for national use and non-uniform covenants
with limited variations by jurisdiction to constitute a uniform security
instrument covering real property and related fixtures and personal property.
This Instrument shall be governed by the law of the jurisdiction in which the
Property is located, In the event that any provision of this Instrument or the
Note conflicts with applicable law, such conflict shall not affect other
provisions of this Instrument or the Note which can be given effect without the
conflicting provisions, and to this end the provisions of this Instrument and
the Note are declared to be severable. In the event that any applicable law
limiting the amount of interest or other charges permitted to be collected from
Borrower is interpreted so that any charge provided for in this Instrument or in
the Note, whether considered separately or together with other charges levied in
connection with this Instrument and the Note, violates such law, and Borrower is
entitled to the benefit of such law, such charge is hereby reduced to the extent
necessary to eliminate such violation. The amounts, if any, previously paid to
Lender in excess of the amounts payable to Lender pursuant to such charges as
reduced shall be applied by Lender to reduce the principal of the indebtedness
evidenced by the Note. For the purposes of determining whether any applicable
law limiting the amount of interest or other charges permitted to be collected
from Borrower has been violated, all indebtedness which is secured by this
Instrument or evidenced by the Note and which constitutes interest, as well as
all other charges levied in connection with such

                                       37

<PAGE>

indebtedness which constitute interest, shall be deemed to be allocated and
spread over the stated term of the Note. Unless otherwise required by applicable
law, such allocation and spreading shall be effected in such a manner that the
rate of interest computed thereby is uniform throughout the stated term of the
Note.

SECTION 32. ASSUMABILITY.

     (a) So long as no Event of Default exists under the Note, this Instrument
or any other Loan Document, in the event Borrower desires to transfer all of the
Property to another party (the "Transferee"), including without limitation, a
Fortress Affiliate, and have the Transferee assume all of Borrower's obligations
under the Note, this Instrument and all of the other Loan Documents, and
replacement guarantors and indemnitors assume all of the obligations of the
indemnitors and guarantors of the Loan Documents (collectively, the "Transfer
and Assumption"), Borrower, subject to the terms of this Section, may make a
written application to Lender for Lender's consent to the Transfer and
Assumption, subject to the conditions set forth in this Section. Together with
such written application (and afterwards if requested by Lender), Borrower will
submit to Lender true, correct and complete copies of any and all information
and documents of any kind requested by Lender concerning the Property,
Transferee and/or Borrower, together with any review fee required by Lender, in
Lender's sole discretion (or in the event the proposed Transferee is a Qualified
Institutional Transferee (as defined below) or a Fortress Affiliate, in Lender's
reasonable discretion).

     (b) Lender may grant or withhold its consent to a Transfer and Assumption
in Lender's sole and absolute discretion (or in the event the proposed
Transferee is a Qualified Institutional Transferee, in Lender's reasonable
discretion), and may require, inter alia, that:

          (i) Lender receives an opinion from counsel acceptable to Lender that
     (x) such Transfer and Assumption shall not affect, in any way, the
     enforceability of the Loan Documents or the lien status, and (y) that the
     Transferee complies in all respects with the provisions of Section 29 of
     this Instrument and such other conditions concerning the organizational
     structure of the Transferee as were required by Lender at the time of the
     making of the Loan;

          (ii) Borrower has submitted to Lender true, correct and complete
     copies of any and all information and documents of any kind requested by
     Lender concerning the Property, Transferee and/or Borrower;

          (iii) the Transferee, in Lender's sole judgment (or in the event the
     proposed Transferee is a Qualified Institutional Transferee, in Lender's
     reasonable judgment), has sufficient experience in managing assets similar
     in size and type to the Property;

          (iv) in Lender's sole judgment (or in the event the proposed
     Transferee is a Qualified Institutional Transferee, in Lender's reasonable
     judgment), the Transferee and the partners, members or shareholders of the
     Transferee are financially sound or have sufficient financial resources to
     manage the Property for the term of the Loan;

          (v) if the Loan has been placed, or Lender plans to place the Loan, in
     an offering of Securities (as defined herein), Lender receives written
     confirmation from the

                                       38

<PAGE>

     rating agencies that the Transfer and Assumption will not result in any
     downgrade, qualification or withdrawal of the ratings assigned to the pool
     and assets in which the Loan has been placed;

          (vi) the replacement guarantors and indemnitors shall be satisfactory
     to Lender in Lender's sole discretion (or in the event the proposed
     Transferee is a Qualified Institutional Transferee, in Lender's reasonable
     discretion); and

          (vii) Borrower has paid any review fee required by Lender.

There shall not be a limit on the number of Transfers and Assumptions Lender
will consent to, provided the requirements of this Section 32(b) are satisfied
with respect to each such Transfer and Assumption. Notwithstanding anything in
this Section 32(b) to the contrary, Lender shall not withhold its consent to a
transfer to a Fortress Affiliate, provided Borrower shall comply with the
requirements of clauses (i), (ii), (v), (vii) and, to the extent there will be a
replacement guarantor or indemnitor in connection with the Transfer and
Assumption, (vi) of this Section 32(b) in connection with any such transfer to a
Fortress Affiliate.

     (c) If Lender consents to the Transfer and Assumption, the Transferee
and/or Borrower as the case may be, shall immediately deliver the following to
Lender:

          (i) Borrower shall deliver to Lender an assumption fee in the amount
     of one percent (1%) of the then unpaid principal balance of the Loan;

          (ii) Borrower, Transferee, and the original and replacement guarantors
     and indemnitors shall execute and deliver to Lender any and all documents
     required by Lender, in form and substance required by Lender, in Lender's
     sole discretion (the "Assumption Documents") and the original guarantors
     shall be released with respect to any obligations under the Loan Documents
     arising on or after the date of the closing of the Transfer and Assumption;
     and

          (iii) Borrower shall cause to be delivered to Lender, an endorsement
     to the mortgagee policy of title insurance then insuring the lien created
     by this Instrument in form and substance reasonably acceptable to Lender
     (the "Endorsement").

     (d) Borrower shall pay to Lender on demand all reasonable actual costs and
expenses incurred by Lender in connection with any proposed or actual Transfer
and Assumption (irrespective of whether or not the same is consented to or
occurs), including without limitation recording costs, title insurance
endorsement premiums, and the reasonable fees and expenses of attorneys,
accountants and rating agencies. At Lender's option, payment of such costs and
expenses shall be a condition to Lender's consent.

     (e) Notwithstanding anything contained in this Section to the contrary,
except based on Lender's written agreement to the Transfer and Assumption and
Borrower's and Transferee's compliance with all of the terms and provisions of
this Section, the terms and provisions of this Section shall in no way amend or
modify the terms and provisions contained in Section 15 of this Instrument.

                                       39

<PAGE>

     (f) Notwithstanding anything to the contrary in clause (i) of Section 32(c)
above, Lender shall waive the assumption fee in connection with the first
Transfer and Assumption provided the Transferee under such first Transfer and
Assumption is a Qualified Institutional Transferee (as defined herein) or a
Fortress Affiliate. As used herein, a "Qualified Institutional Transferee" shall
mean (1) a real estate investment trust, real estate opportunity fund, hedge
fund, investment bank, insurance company, trust company, commercial credit
corporation, pension plan, pension fund or pension advisory firm, mutual fund,
government entity or plan or an institution substantially similar to any of the
foregoing (each an "Institution") that (A) together with all entities controlled
by or under common control with such Institution, owns or has under management
in excess of 2,000,000 square feet of office or industrial space (not including
the Property), (B) has a Net Worth (as defined herein) of at least
$200,000,000.00 and (C) has at least ten (10) years' experience, and is
regularly engaged in, owning and operating commercial office properties
similar to the Property or (2) an entity wholly owned and controlled by an
entity satisfying the requirements of clause (1) above. "Net Worth" shall mean
the fair market value of an Institution's total assets including all interests
in properties owned directly or indirectly by such Institution (excluding the
Property), less all liabilities, as determined by Lender in its reasonable
discretion based on the financial statements delivered to Lender in connection
with the proposed Transfer and Assumption. The term "liabilities" shall include,
without limitation, (i) indebtedness secured by liens on assets with respect to
which Net Worth is being computed, (ii) deferred liabilities, and (iii)
obligations under leases which have been capitalized. The waiver described in
this Section 32(f) shall only be available in connection with the first Transfer
and Assumption and shall not be available (and the provisions contained in this
Section 32(f) shall be null and void) with respect to any subsequent Transfer
and Assumption, regardless of whether or not the assumption fee was waived by
Lender in connection with the first Transfer and Assumption.

SECTION 33. RESTRUCTURING LOAN, SECONDARY MARKET TRANSACTIONS.

     (a) SECONDARY MARKET TRANSACTIONS GENERALLY. Lender shall have the right to
engage in one or more Secondary Market Transactions, and to structure and
restructure all or any part of the Loan, including without limitation in
multiple tranches, as a wraparound loan, or for inclusion in a REMIC or other
Securitization. Without limitation, Lender shall have the right to cause the
Note and this Instrument to be split into a first and a second mortgage loan in
whatever proportion Lender determines, and thereafter to engage in Secondary
Market Transactions with respect to all or any part of the indebtedness and loan
documentation. Borrower acknowledges that it is the intention of the parties
that all or a portion of the Loan will be securitized and that all or a portion
of the Loan (either itself, or in combination with other loans) will be rated by
one or more Rating Agencies. Borrower further acknowledges that additional
structural modifications may be required to satisfy issues raised by any Rating
Agencies.

     (b) COOPERATION; LIMITATIONS. Borrower shall use all reasonable efforts and
cooperate reasonably and in good faith with Lender in effecting any such
restructuring or Secondary Market Transaction. Such cooperation shall include
without limitation, executing and delivering such reasonable amendments to the
Loan Documents as Lender may request, provided however that no such amendment
shall on an over-all basis modify (i) the interest rate payable under the Note;
(ii) the stated maturity date of the Note, (iii) the amortization of the
principal

                                       40

<PAGE>

amount of the Note, (iv) any other economic terms of the Loan, or (v) the
non-recourse provisions of the Loan. Such cooperation also shall include using
commercially reasonable efforts to obtain such certificates and assurances from
governmental entities and others as Lender may request. Borrower shall not be
required to provide additional collateral that was not initially contemplated by
the parties to effect any such restructuring or Secondary Market Transaction.
All reasonable actual costs and expenses of Borrower's cooperation as described
herein shall be at the expense of Lender.

     (c) INFORMATION. Borrower shall provide such information and documents
relating to Borrower and its principals, the manager of the Property, the
Property and the business and operations of all of the foregoing as Lender may
reasonably request in connection with any such Secondary Market Transaction.
Lender shall be permitted to share all such information with the investment
banking firms, Rating Agencies, accounting firms, law firms, other third party
advisory firms, potential investors, and other parties involved in any proposed
Secondary Market Transaction. Any such information may be incorporated into
offering documents for the Secondary Market Transactions. Lender and all of the
aforesaid third-party advisors and professional firms and investors shall be
entitled to rely upon such information, and Borrower shall indemnify, defend,
and hold harmless Lender from and against any losses, claims, damages and
liabilities that arise out of or are based upon any actual untrue or misleading
statement of material fact contained in such information or the actual omission
of any material fact without which such information is materially misleading and
which Borrower should have reasonably determined was necessary to be included.
Lender may publicize the existence of the Loan in connection with Lender's
Secondary Market Transaction activities or otherwise.

     (d) ADDITIONAL PROVISIONS. In any Secondary Market Transaction, Lender may
transfer its obligations under the Loan Documents (or may transfer the portion
thereof corresponding to the transferred portion of the obligations of
Borrower), and thereafter Lender shall be relieved of any obligations under the
Loan Documents arising after the date of said transfer with respect to the
transferred interest. Each transferee investor shall be deemed to be a "Lender"
under the applicable Loan Documents.

     (e) CERTAIN DEFINITIONS. As used herein, the following terms have the
meanings indicated:

          "Loan" means all obligations of Borrower under the Loan Documents.

          "Rating Agency" shall mean any of Standard & Poor's Rating Services, a
     division of The McGraw-Hill Companies, Inc., Moody's Investors Service,
     Duff & Phelps Credit Rating Co., Fitch, Inc., or any other
     nationally-recognized statistical rating organization designated by Lender
     in its sole discretion.

          "Secondary Market Transaction" means any of (i) the sale, assignment,
     or other transfer of all or any portion of the Loan or the Loan Documents
     or any interest therein to one or more investors, (ii) the sale,
     assignment, or other transfer of one or more participation interests in the
     Loan or Loan Documents to one or more investors, or (iii) the transfer or
     deposit of all or any portion of the Loan or Loan Documents to or with one
     or more trusts or other entities which may sell certificates or other
     instruments to

                                       41

<PAGE>

     investors evidencing an ownership interest in the assets of such trust or
     the right to receive income or proceeds therefrom.

          "Securitization" shall mean a rated offering of securities
     representing direct or indirect interests in one or more mortgage loans or
     the right to receive income therefrom.

SECTION 34. SUCCESSORS AND ASSIGNS BOUND. This Instrument and the other Loan
Documents shall be binding upon and inure to the benefit of Borrower and Lender
and their respective successors and assigns forever, subject to Section 15
hereof.. Notwithstanding the foregoing, Lender shall have no liability under any
of the Loan Documents for any matter arising after Lender transfers its interest
in the Note to any successor. However, Lender shall continue to have the benefit
of all rights having accrued under the Loan Documents theretofore, and all
rights under all obligations of indemnification set forth in the Loan Documents
for matters arising theretofore, then, and thereafter.

SECTION 35. FORBEARANCE BY LENDER NOT A WAIVER. Any forbearance by Lender in
exercising any right or remedy hereunder, or otherwise afforded by applicable
law, shall not be a waiver of or preclude the exercise of any right or remedy.
The acceptance by Lender of payment of any sum secured by this Instrument after
the due date of such payment shall not be a waiver of Lender's right to either
require prompt payment when due of all other sums so secured or to declare a
default for failure to make prompt payment. The procurement of insurance or the
payment of taxes or other liens or charges by Lender shall not be a waiver of
Lender's right to accelerate the maturity of the indebtedness secured by this
Instrument, nor shall Lender's receipt of any awards, proceeds or damages,
whether as proceeds of insurance or condemnation awards or otherwise, operate to
cure or waive Borrower's default in payment of sums secured by this Instrument.

SECTION 36. ESTOPPEL CERTIFICATE. Borrower and Lender each shall within fifteen
days of a written request from Lender furnish Lender with a written statement,
duly acknowledged, setting forth the sums secured by this Instrument and any
right of set-off, counterclaim or other defense which exists against such sums
and the obligations of this Instrument and attaching true, correct and complete
copies of the Note, this Instrument and any other Loan Documents and any and all
modifications, amendments and substitutions thereof.

SECTION 37. WAIVER OF JURY TRIAL. EACH OF BORROWER AND LENDER HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY
JURY IN RESPECT TO ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN
CONJUNCTION WITH THE NOTE, THIS INSTRUMENT, ANY OTHER LOAN DOCUMENT, ANY OTHER
AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF
EITHER PARTY.

SECTION 38. MISCELLANEOUS.

     (a) No Oral Change. No provision of this Instrument or any of the other
Loan Documents may be modified, amended, waived, extended, changed, discharged
or terminated

                                       42

<PAGE>

orally or by any act or failure to act on the part of Borrower or Lender, except
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.

     (b) 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.

     (c) Captions. The captions and headings of the Sections, paragraphs, and
other provisions of this Instrument are for convenience only and are not to be
used to interpret or define the provisions hereof.

     (d) Duplicate Originals; Counterparts. This Instrument and any of the Loan
Documents may be executed in any number of duplicate originals and each
duplicate original shall be deemed to be an original. This Instrument and any of
the Loan Documents may be executed in multiple counterparts.

     (e) Number and Gender. Whenever the context may require, any pronouns used
herein or in any of the Loan Documents shall include the corresponding
masculine, feminine or neuter forms, and the singular form of nouns and pronouns
shall include the plural and vice versa.

     (f) Subrogation. If any or all of the proceeds of the Note have been used
to extinguish, extend or renew any indebtedness heretofore existing against the
Property, then, to the extent of the funds so used, Lender shall be subrogated
to all of the rights, claims, liens, titles, and interests existing against the
Property heretofore held by, or in favor of, the holder of such indebtedness and
such former rights, claims, liens, titles, and interests, if any, are not waived
but rather are continued in full force and effect in favor of Lender and are
merged with the lien and security interest created herein as cumulative security
for the performance and repayment of the obligations secured hereby.

     (g) Entire Agreement. The Note, this Instrument and the other Loan
Documents constitute the entire understanding and agreement between Borrower and
Lender pertaining to the subject matter hereof and thereof, and supersede all
prior written or oral understandings and agreements between Borrower and Lender
with respect thereto, including the prior agreements evidenced by any
application or commitment issued in connection with this transaction. Borrower
hereby acknowledges that, except as incorporated in writing in the Loan
Documents, there are not, and were not, and no persons are or were authorized by
Lender to make, any representations, understandings, stipulations, agreements or
promises, oral or written, with respect to the transaction which is the subject
of the Loan Documents, except only to the extent expressly set forth in the Loan
Documents.

     (h) Action through Agents. In exercising any rights hereunder or under any
of the Loan Documents or taking any actions provided for herein or therein,
Lender may act through its employees, agents or independent contractors as
authorized by Lender.

     (i) Maturity Date. The maturity date of the indebtedness secured by this
Instrument is June 1, 2014; provided that if the "Payment Date" (as defined in
the Note) is changed pursuant

                                       43

<PAGE>

to the Note, the maturity date shall be the "New Payment Date" (as defined in
the Note) occurring in June 2014.

SECTION 39. WAIVER OF CONSTITUTIONAL RIGHTS. BORROWER UNDERSTANDS AND AGREES
THAT IF AN EVENT OF DEFAULT SHALL OCCUR, LENDER HAS THE RIGHT, INTER ALIA, TO
FORECLOSE THIS INSTRUMENT BY ADVERTISEMENT PURSUANT TO MINNESOTA STATUTES,
CHAPTER 580, AS HEREAFTER AMENDED, OR PURSUANT TO ANY SIMILAR OR REPLACEMENT
STATUTE HEREAFTER ENACTED; THAT IF LENDER ELECTS TO FORECLOSE BY ADVERTISEMENT,
IT MAY CAUSE THE PROPERTY, OR ANY PART THEREOF, TO BE SOLD AT PUBLIC AUCTION;
THAT NOTICE OF SUCH SALE MUST BE PUBLISHED AND GIVEN PERSONALLY TO THE PERSONS
IN POSSESSION OF THE PROPERTY AS PROVIDED BY STATUTE; THAT BORROWER WILL HAVE
SUCH PERIOD AS IS PROVIDED BY MINNESOTA STATUTES, SECTION 580.23 OR 582.032, AS
APPLICABLE, OR ANY AMENDMENT THERETO, OR ANY SIMILAR OR REPLACEMENT STATUTE
HEREAFTER ENACTED, TO REDEEM THE PROPERTY SO SOLD BY PAYING THE SALE PRICE, ANY
TAXES, ASSESSMENTS AND INSURANCE PREMIUMS PAID BY THE PURCHASER AT SUCH SALE,
AND OTHER SUMS PERMITTED BY LAW, TOGETHER WITH INTEREST THEREON FROM THE DATE OF
SALE OR PAYMENT AT THE HIGHEST RATE PERMITTED BY LAW.

     BORROWER FURTHER UNDERSTANDS THAT IN THE EVENT OF SUCH EVENT OF DEFAULT
LENDER MAY TAKE POSSESSION OF THE PROPERTY WHICH IS SUBJECT TO THE SECURITY
INTEREST HEREINBEFORE GRANTED AND DISPOSE OF THE SAME BY SALE OR OTHERWISE IN
ONE OR MORE PARCELS, PROVIDED THAT AT LEAST TEN (10) DAYS' PRIOR NOTICE OF SUCH
DISPOSITION MUST BE GIVEN TO BORROWER, ALL AS PROVIDED FOR BY THE MINNESOTA
UNIFORM COMMERCIAL CODE, AS HEREAFTER AMENDED, OR BY ANY SIMILAR OR REPLACEMENT
STATUTE HEREAFTER ENACTED.

     BORROWER FURTHER UNDERSTANDS THAT UNDER THE CONSTITUTION OF THE UNITED
STATES IT MAY HAVE THE RIGHT TO NOTICE AND HEARING BEFORE THE PROPERTY MAY BE
SOLD AND THAT THE PROCEDURE FOR FORECLOSURE BY ADVERTISEMENT DESCRIBED ABOVE
DOES NOT INSURE THAT NOTICE WILL BE GIVEN TO BORROWER, AND NEITHER SAID
PROCEDURE FOR FORECLOSURE BY ADVERTISEMENT NOR THE MINNESOTA UNIFORM COMMERCIAL
CODE REQUIRES ANY HEARING OR OTHER JUDICIAL PROCEEDING.

     BORROWER HEREBY RELINQUISHES, WAIVES AND GIVES UP ANY CONSTITUTIONAL RIGHTS
TO NOTICE AND HEARING BEFORE SALE OF THE PROPERTY AND EXPRESSLY CONSENTS AND
AGREES THAT THE PROPERTY MAY BE FORECLOSED BY ADVERTISEMENT AND THAT THE PORTION
THEREOF WHICH IS SUBJECT TO THE SECURITY INTEREST HEREINBEFORE GRANTED MAY BE
DISPOSED OF PURSUANT TO THE UNIFORM COMMERCIAL CODE, ALL AS DESCRIBED ABOVE.

                                       44

<PAGE>

     BORROWER ACKNOWLEDGES THAT IT IS REPRESENTED BY LEGAL COUNSEL; THAT BEFORE
SIGNING THIS DOCUMENT THIS SECTION 39 AND ITS CONSTITUTIONAL RIGHTS WERE FULLY
EXPLAINED BY SUCH COUNSEL AND THAT IT UNDERSTANDS THE NATURE AND EXTENT OF THE
RIGHTS WAIVED HEREBY AND THE EFFECT OF SUCH WAIVER.

SECTION 40. FIXTURE FINANCING STATEMENT. The filing of this Instrument shall
constitute a filing of a financing statement in the office wherein it is filed
and a carbon, photographic or other reproduction of this document may also be
filed as a financing statement.

<TABLE>
<S>                           <C>
Name and Address of Debtor:   Stonewater UIS Funding LLC 1251 Avenue of the
                              Americas, 16th Floor New York, New York 10021

Name and Address of Secured
Party:                        Greenwich Capital Financial Products, Inc. 600
                              Steamboat Road Greenwich, Connecticut 06830

Description of the types
(or items) of property
covered by this financing
statement:                    All fixtures, machinery, equipment, engines,
                              boilers, incinerators, building materials,
                              appliances and goods of every nature whatsoever
                              now or hereafter located in, or on, or used, or
                              intended to be used in connection with the
                              property, including, but not limited to, those for
                              the purposes of supplying or distributing heating,
                              cooling, electricity, gas, water, air and light;
                              and all elevators, and related machinery and
                              equipment, fire prevention and extinguishing
                              apparatus, security and access control apparatus,
                              plumbing, bath tubs, water heaters, water closets,
                              sinks, ranges, stoves, refrigerators, dishwashers,
                              disposals, washers, dryers, awnings, storm
                              windows, storm doors, screens, blinds, shades,
                              curtains and curtain rods, mirrors, cabinets,
                              paneling, rugs, attached floor coverings,
                              furniture, pictures, antennas, trees and plants
                              now or hereafter located on and used in connection
                              with the operation of the Property of whatsoever
                              type or nature whether now owned or hereafter
                              acquired by Borrower, including all replacements,
                              repairs and substitutions thereto and proceeds
                              thereof.

Description of real estate
to which all or part of the
collateral
</TABLE>

                                       45

<PAGE>

is attached or upon
which it is located:             See attached Exhibit A.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       46

<PAGE>

     IN WITNESS WHEREOF, Borrower has executed this Instrument or has caused the
same to be executed by its representatives thereunto duly authorized.

                                        BORROWER:

                                        STONEWATER UIS FUNDING LLC, a
                                        Delaware limited liability company

                                        By: /s/ CONSTANTINE DAKOLIAS
                                            ------------------------------------
                                        Name: CONSTANTINE DAKOLIAS
                                        Its: AUTHORIZED SIGNATORY

<PAGE>

                                 ACKNOWLEDGMENTS

STATE OF NEW YORK   )
                    )   SS.
COUNTY OF NASSALL   )

     BEFORE ME, a Notary Public in and for said County and State, personally
appeared Constantine M. Dakolias, by me known to be the Authorized Signatory of
Stonewater UIS Funding, LLC, a Delaware limited liability company ("Borrower"),
who is personally known to me to be the same person whose name is subscribed to
the foregoing instrument as such ______________________ of Borrower
_______________________ and who, being duly sworn, stated that she, being
authorized so to do, signed and delivered the foregoing Instrument as such
____________________ of Borrower as his/her own free and voluntary act and as
the free and voluntary act of Borrower, for the uses and purposes therein set
forth.

          WITNESS my hand and Notary Seal this 10th day of May, 2004.

                                        /s/ JASMEEN BLOCKER
                                        ----------------------------------------
                                        Notary Public

                                                     JASMEEN BLOCKER
                                             Notary Public, State of New York
                                                     No. 01BL6047869
                                               Qualified in Nassall Country
                                          Commission Expires September 11.20.06

<PAGE>

                                    Exhibit A

                               Legal Description

Parcel 1:

The South 1024 feet of the West 700 feet of the Northwest Quarter of Section 8,
Township 29, Range 23, Ramsey County, Minnesota.

Parcel 2:

Non-exclusive easement for pedestrian and vehicular access, ingress and egress,
as contained in Declaration of Roadway Easement dated _________________, 2004,
recorded ________________, 2004, as Document No._________________.

<PAGE>

                                  May 12, 2004

Greenwich Capital Financial Products, Inc.
600 Steamboat Road
Greenwich, Connecticut 06830

Re: $20,860,000.00 loan (the "Loan") from Greenwich Capital Financial Products,
    Inc. ("Lender") to Stonewater UIS Funding LLC ("Borrower")

Ladies and Gentlemen:

In connection with the closing of the referenced transaction, as a condition
precedent to the closing of the Loan, Borrower was obligated to develop an
operations and maintenance program with respect to the presence of asbestos and
lead-based paint at the Project (the "O&M Program"). All capitalized words used
but not otherwise defined herein shall have the meanings set forth in the
Operations and Maintenance Agreement between Borrower and Lender dated of even
date herewith.

As of the date hereof, Borrower has not yet developed an O&M Program. As an
accommodation to Borrower, Lender has agreed that this condition precedent to
the making of the Loan may be satisfied by Borrower following the closing and
funding of the Loan. In order to induce Lender to make the Loan, Borrower agrees
to deliver or cause to be delivered to Lender within sixty (60) days after the
date hereof an O&M Program reasonably satisfactory in form and substance to
Lender.

This letter agreement may not be modified, amended, changed or terminated
orally, but only by a written agreement signed by the party against whom the
enforcement thereof is sought. This letter agreement shall be binding upon and
inure to the benefit of the Lender and Borrower, the indemnitors and their
respective permitted successors and assigns.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

Greenwich Capital Financial Products, Inc.
May 12, 2004
Page 2

This letter agreement shall be governed by and construed in accordance with the
laws of the State of Minnesota.

                                        Very truly yours,

                                        BORROWER:

                                        STONEWATER UIS FUNDING LLC, a
                                        Delaware limited liability company

                                        By: /s/ Illegible
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

ACCEPTED AND AGREED TO
THIS ______ DAY OF MAY, 2004.

GREENWICH CAPITAL FINANCIAL PRODUCTS,
INC., a Delaware corporation

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

<PAGE>

Greenwich Capital Financial Products, Inc.
May 12, 2004
Page 2

This letter agreement shall be governed by and construed in accordance with the
laws of the State of Minnesota.

                                        Very truly yours,

                                        BORROWER:

                                        STONEWATER UIS FUNDING LLC, a
                                        Delaware limited liability company

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

ACCEPTED AND AGREED TO
THIS 12th DAY OF MAY, 2004.

GREENWICH CAPITAL FINANCIAL PRODUCTS,
INC., a Delaware corporation

By: /s/ DAVID M. MURDOON
    ---------------------------------
Name: DAVID M. MURDOON
Title: MANAGING DIRECTOR

<PAGE>

                      OPERATIONS AND MAINTENANCE AGREEMENT

          THIS OPERATIONS AND MAINTENANCE AGREEMENT ("Agreement") is made as of
the 12th day of May, 2004, by STONEWATER UIS FUNDING LLC, a Delaware limited
liability company ("Borrower") in favor of GREENWICH CAPITAL FINANCIAL PRODUCTS,
INC., a Delaware corporation, its successors, transferees and assign ("Lender").

                                    RECITALS:

          This Agreement is being executed in connection with Lender's making a
mortgage loan to Borrower in the original principal amount of $20,860,000.00
(the "Loan").

          The Loan is evidenced by a Promissory Note of even date herewith, made
by Borrower and is secured by, among other things, a Mortgage, Assignment of
Rents and Security Agreement ("Instrument") of the same date, which encumbers
certain real property and improvements more particularly described therein (the
"Project").

          As a condition of making the Loan, Lender has required Borrower to
develop an operations and maintenance program for the Project with respect to
the presence of asbestos and lead-based paint (the "O & M Program"). The O & M
Program developed by Borrower, and approved by Lender, is attached hereto as
Exhibit A and is by this reference made a part of this Agreement.

          NOW, THEREFORE, in consideration of the above and the mutual promises
contained in this Agreement, the receipt and sufficiency of which are
acknowledged, Borrower and Lender agree as follows:

     1. Compliance with O & M Program. Borrower hereby covenants and agrees
that, during the term of the Loan, including any extension or renewal thereof,
Borrower shall comply in all respects with the terms and conditions of the O & M
Program. Notwithstanding anything foregoing in this Section 1 to the contrary,
for so long as the Unisys Lease (as defined in the Instrument) is in full force
and effect, (a) the obligations of Borrower under this Agreement shall be
subject to the terms and provisions of the Unisys Lease, and (b) Borrower shall
be required to comply with the terms and conditions of the O & M Program only to
the extent Borrower takes any action permitted to be taken by Borrower under the
Lease.

     2. Default Under Note and Security Instrument. Borrower hereby acknowledges
and agrees that if Borrower fails to comply in all respects with the terms and
conditions of the O & M Program, Borrower will be in default under the Note and
Security Instrument, in which event the entire unpaid principal balance of the
Note, accrued interest and any other sums due Lender under the Note will become
immediately due and payable at Lender's option, all in accordance with the terms
and conditions of the Note and the Security Instrument.

     3. Successors and Assigns Bound. This Agreement shall be binding upon
Borrower and Lender and their respective successors and assigns, and shall inure
to the benefit of and may be enforced by Lender and its successors, transferees
and assigns. Borrower shall not assign any of its rights and obligations under
this Agreement without the prior written consent of Lender.

<PAGE>

     4. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Minnesota, and applicable federal law.

     5. No Waiver. Lender's requirement that the Borrower develop and comply
with the O & M Program shall not be deemed to constitute a waiver or a
modification of any of the Borrower's covenants and agreements with respect to
Hazardous Materials or Hazardous Materials Law as set forth in the Environmental
Indemnity Agreement or the Instrument.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

          IN WITNESS WHEREOF, Borrower has executed this Agreement on the date
and year first written above.

                                        BORROWER:

                                        STONEWATER UIS FUNDING LLC, a
                                        Delaware limited liability company

                                        By: /s/ CONSTANTINE DAKOLIAS
                                            ------------------------------------
                                        Name: CONSTANTINE DAKOLIAS
                                        Title: AUTHORIZED SIGNATORY
<PAGE>
                                    EXHIBIT A
                                   O&M PROGRAM

                                (to be attached)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}]]