Document:

PREPARED BY AND UPON

PREPARED BY AND UPON

RECORDATION RETURN TO:

Cadwalader, Wickersham & Taft LLP

227 West Trade Street, Suite 2400

Charlotte, NC 28202

Attention:  Jeffrey Lee, Esq.

111 EAST WACKER, LLC,

as Borrower

to

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Lender

MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT
OF RENTS

AND FIXTURE FILING

__________________________

Dated:  July 11, 2006

Location:          111 East Wacker Drive

                       
Chicago, Illinois 60601

County:            Cook

P.I.N.:              17-10-301-011-0000

THIS
INSTRUMENT IS EFFECTIVE AND SHALL REMAIN EFFECTIVE AS A FINANCING STATEMENT
FILED AS A FIXTURE FILING WITH RESPECT TO ALL GOODS WHICH ARE OR ARE TO BECOME
FIXTURES ON THE REAL ESTATE HEREIN DESCRIBED AND IS TO BE FILED FOR RECORD OR
REGISTERED IN THE REAL ESTATE RECORDS OF COOK COUNTY, ILLINOIS.  THE MAILING
ADDRESS OF LENDER AND THE ADDRESS OF BORROWER ARE SET FORTH WITHIN.  A
PHOTOGRAPHIC OR OTHER REPRODUCTION OF THIS INSTRUMENT OR ANY FINANCING
STATEMENT RELATING TO THIS INSTRUMENT SHALL BE SUFFICIENT AS A FINANCING
STATEMENT.

TABLE OF CONTENTS

                                                                                                                                
Page

ARTICLE I

DEFINITIONS

Section 1.01        Certain Definitions.................................................................................................. 5

ARTICLE II

REPRESENTATIONS, WARRANTIES

AND COVENANTS OF BORROWER

Section 2.01        Payment of Debt.................................................................................................. 29

Section 2.02        Representations, Warranties and
Covenants of Borrower...................................... 29

Section 2.03       
Further Acts,
etc...................................................................................................
39

Section 2.04        Recording of Security Instrument, etc.................................................................... 40

Section 2.05        Representations and Warranties as to
the Property................................................ 40

Section 2.06        Removal of Lien................................................................................................... 46

Section 2.07        Cost of Defending and Upholding this
Security Instrument Lien.............................. 47

Section 2.08        Use of the Property.............................................................................................. 47

Section 2.09       
Financial
Reports..................................................................................................
47

Section 2.10        Litigation.............................................................................................................. 51

Section 2.11        Updates of Representations.................................................................................. 51

ARTICLE III

INSURANCE AND CASUALTY RESTORATION

Section 3.01        Insurance Coverage.............................................................................................. 51

Section 3.02       
Policy
Terms........................................................................................................
53

Section 3.03        Assignment of Policies.......................................................................................... 55

Section 3.04        Casualty Restoration............................................................................................. 56

Section 3.05       
Compliance with Insurance
Requirements.............................................................. 59

Section 3.06        Event of Default During Restoration....................................................................... 60

Section 3.07        Application of Proceeds to Debt
Reduction........................................................... 60

ARTICLE IV

IMPOSITIONS

Section 4.01        Payment of Impositions, Utilities and
Taxes, etc..................................................... 61

Section 4.02       
Deduction from
Value...........................................................................................
61

 

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Section 4.03        No Joint Assessment............................................................................................ 62

Section 4.04       
Right to
Contest....................................................................................................
62

Section 4.05        No Credits on Account of the Debt....................................................................... 63

Section 4.06       
Documentary
Stamps............................................................................................
63

ARTICLE V

CENTRAL CASH MANAGEMENT

Section 5.01        Cash Flow............................................................................................................ 63

Section 5.02        Establishment of Accounts.................................................................................... 65

Section 5.03       
Permitted
Investments...........................................................................................
65

Section 5.04        Servicing Fees...................................................................................................... 66

Section 5.05        Monthly Funding of Sub-Accounts and
Escrow Accounts...................................... 66

Section 5.06       
Payment of Basic Carrying
Costs..........................................................................
67

Section 5.07        Intentionally Omitted............................................................................................. 68

Section 5.08       
Recurring Replacement Reserve
Sub-Account....................................................... 68

Section 5.09       
Operation and Maintenance Expense Escrow
Account.......................................... 69

Section 5.10       
Rollover Reserve Escrow
Account........................................................................
70

Section 5.11        Financial Covenant Reserve Escrow
Account........................................................ 71

Section 5.12       
Performance of Engineering
Work......................................................................... 72

Section 5.13       
Rent Abatement Reserve Escrow
Account............................................................ 72

Section 5.14       
Intentionally
Deleted............................................................................................. 

Section 5.15        Master Lease Reserve Escrow Account................................................................ 72

Section 5.16        Debt Service/Leasing Escrow Account.................................................................. 73

Section 5.17       
Loss
Proceeds......................................................................................................
73

ARTICLE VI

CONDEMNATION

Section 6.01       
Condemnation......................................................................................................
74

ARTICLE VII

LEASES AND RENTS

Section 7.01       
Assignment...........................................................................................................
76

Section 7.02        Management of Property...................................................................................... 77

ARTICLE VIII

MAINTENANCE AND REPAIR

Section 8.01       
Maintenance and Repair of the Property; Alterations; Replacement of Equipment...
80

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ARTICLE IX

TRANSFER OR ENCUMBRANCE OF THE PROPERTY

Section 9.01       
Other
Encumbrances............................................................................................
81

Section 9.02        No Transfer..........................................................................................................81

Section 9.03       
Due on
Sale..........................................................................................................83

Section 9.04       
Permitted
Transfer.................................................................................................83

Section 9.05       
Mezzanine
Debt....................................................................................................85

ARTICLE X

CERTIFICATES

Section 10.01      Estoppel Certificates............................................................................................. 85

ARTICLE XI

NOTICES

Section 11.01     
Notices................................................................................................................
86

ARTICLE XII

INDEMNIFICATION

Section 12.01      Indemnification Covering Property........................................................................ 87

ARTICLE XIII

DEFAULTS

Section 13.01     
Events of
Default..................................................................................................
88

Section 13.02      Remedies............................................................................................................. 90

Section 13.03     
Payment of Debt After
Default..............................................................................
94

Section 13.04     
Possession of the
Property....................................................................................
94

Section 13.05     
Interest After
Default............................................................................................
94

Section 13.06      Borrower's Actions After Default.......................................................................... 94

Section 13.07     
Control by Lender After
Default............................................................................
95

Section 13.08     
Right to Cure
Defaults...........................................................................................
95

Section 13.09      Late Payment Charge........................................................................................... 95

Section 13.10     
Recovery of Sums Required to Be
Paid................................................................. 96

Section 13.11     
Marshalling and Other
Matters..............................................................................
96

Section 13.12     
Tax Reduction
Proceedings...................................................................................
96

Section 13.13     
General Provisions Regarding
Remedies................................................................ 96

 

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ARTICLE XIV

COMPLIANCE WITH REQUIREMENTS

Section 14.01     
Compliance with Legal
Requirements....................................................................
97

Section 14.02     
Compliance with Recorded Documents; No Future
Grants.................................... 98

ARTICLE XV

PREPAYMENT

Section 15.01     
Prepayment..........................................................................................................
98

ARTICLE XVI

ENVIRONMENTAL COMPLIANCE

Section 16.01     
Covenants, Representations and
Warranties.......................................................... 98

Section 16.02     
Environmental
Indemnification..............................................................................100

ARTICLE XVII

ASSIGNMENTS

Section 17.01      Participations and Assignments............................................................................ 101

ARTICLE XVIII

MISCELLANEOUS

Section 18.01     
Right of
Entry.....................................................................................................
102

Section 18.02     
Cumulative
Rights...............................................................................................
102

Section 18.03     
Liability..............................................................................................................
102

Section 18.04     
Exhibits
Incorporated..........................................................................................
102

Section 18.05     
Severable
Provisions...........................................................................................
102

Section 18.06     
Duplicate
Originals..............................................................................................
102

Section 18.07     
No Oral
Change.................................................................................................
102

Section 18.08     
Waiver of Counterclaim,
Etc...............................................................................
102

Section 18.09     
Headings; Construction of Documents;
etc.......................................................... 103

Section 18.10     
Sole Discretion of
Lender...................................................................................
103

Section 18.11     
Waiver of
Notice................................................................................................
103

Section 18.12     
Covenants Run with the
Land..............................................................................
103

Section 18.13      GOVERNING LAW......................................................................................... 103

Section 18.14     
Security
Agreement............................................................................................
105

Section 18.15     
Actions and
Proceedings.....................................................................................
106

Section 18.16      Usury Laws........................................................................................................ 106

 

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Section 18.17     
Remedies of
Borrower........................................................................................
107

Section 18.18     
Offsets, Counterclaims and
Defenses................................................................... 107

Section 18.19     
No
Merger.........................................................................................................
107

Section 18.20     
Restoration of
Rights...........................................................................................
107

Section 18.21     
Waiver of Statute of
Limitations..........................................................................
107

Section 18.22     
Advances...........................................................................................................
108

Section 18.23     
Application of Default Rate Not a
Waiver........................................................... 108

Section 18.24     
Intervening
Lien..................................................................................................
108

Section 18.25     
No Joint Venture or
Partnership..........................................................................
108

Section 18.26     
Time of the
Essence............................................................................................
108

Section 18.27     
Borrower's Obligations
Absolute........................................................................
108

Section 18.28     
Publicity.............................................................................................................
109

Section 18.29     
Intentionally
Omitted...........................................................................................
109

Section 18.30     
Intentionally
Omitted...........................................................................................
109

Section 18.31     
Intentionally
Omitted...........................................................................................
109

Section 18.32     
Exculpation.........................................................................................................
109

Section 18.33     
Component
Notes..............................................................................................
111

Section 18.34     
Certain Matters Relating to Property Located in the State of
Illinois..................... 111

 

EXHIBITS

EXHIBIT A     Legal
Description of Premises

EXHIBIT B      Summary Of
Reserves

EXHIBIT C     Cash Flow
Statement

EXHIBIT D     Required
Engineering Work

EXHIBIT E      Form of
Direction Letter

EXHIBIT F      Rent
Abatement Reserve Reimbursement Schedule

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THIS MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF RENTS AND
FIXTURE FILING (the "Security Instrument") is made as of the 11th day of
July, 2006, by 111 EAST WACKER, LLC, a Delaware limited liability company,
having its chief executive office at 188 East Capitol Street, Suite 1000, One
Jackson Place, Jackson, Mississippi  39201-2195 (hereinafter referred to as "Borrower"),
to WACHOVIA BANK, NATIONAL ASSOCIATION, having an address at 8739
Research Drive URP - 4, NC 1075, Charlotte, North Carolina 28262, Attention: 
Commercial Real Estate Services, and its successors and assigns (hereinafter
referred to as "Lender").

W I T N E S S E T H:

WHEREAS, Lender has authorized a loan (hereinafter referred
to as the "Loan") to Borrower in the maximum principal sum of One
Hundred Forty-Eight Million Five Hundred Thousand and No/100 Dollars
($148,500,000.00) (hereinafter referred to as the "Loan Amount"), which
Loan is evidenced by that certain promissory note, dated the date hereof
(together with any supplements, amendments, modifications or extensions
thereof, hereinafter referred to as the "Note") given by Borrower, as
maker, to Lender, as payee;

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

WHEREAS, Borrower desires by this Security Instrument to
provide for, among other things, the issuance of the Note and for the deposit,
deed and pledge by Borrower with, and the creation of a security interest in
favor of, Lender, as security for Borrower's obligations to Lender from time to
time pursuant to the Note and the other Loan Documents; 

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

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

NOW THEREFORE, to secure
the payment of the principal of, prepayment premium (if any) and interest on
the Note and all other obligations, liabilities or sums due or to become due
under this Security Instrument, the Note or any other Loan Document, including,
without limitation, interest on said obligations, liabilities or sums (said
principal, premium, interest and other sums being hereinafter referred to as
the "Debt"), and the performance of all other covenants, obligations and
liabilities of Borrower pursuant to the Loan Documents, Borrower has executed
and delivered this Security Instrument; and Borrower has irrevocably granted,
and by these presents and by the execution and delivery hereof does hereby
irrevocably grant, bargain, sell, alien, demise, release, convey, assign,
transfer, deed, hypothecate, pledge, set over, warrant, mortgage and confirm to
Lender, with MORTGAGE COVENANTS, forever with power of sale (to the extent
permitted by law), all right, title and interest of Borrower in and to all of
the following property, rights, interests and estates:

 

(a)               
the plot(s), piece(s) or parcel(s) of real property described in Exhibit
A attached hereto and made a part hereof (individually and collectively,
hereinafter referred to as the "Premises");

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

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

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

-2-

 

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

(f)                
all leases (including, without limitation, the Master Lease (defined
below)), tenancies, licenses and other agreements affecting the use, enjoyment
or occupancy of the Premises, the Improvements, the Fixtures, or the Equipment
or any portion thereof now or hereafter entered into, whether before or after
the filing by or against Borrower of any petition for relief under the
Bankruptcy Code and all reciprocal easement agreements, license agreements and
other agreements with Pad Owners (hereinafter collectively referred to as the "Leases"),
together with all cash or security deposits, lease termination payments,
advance rentals and payments of similar nature and guarantees or other security
held by Borrower in connection therewith to the extent of Borrower's right or
interest therein and all remainders, reversions and other rights and estates
appurtenant thereto, and all base, fixed, percentage or additional rents, and
other rents, oil and gas or other mineral royalties, and bonuses, issues,
profits and rebates and refunds or other payments made by any Governmental
Authority from or relating to the Premises, the Improvements, the Fixtures or
the Equipment plus all rents, common area charges and other payments, whether
paid or accruing before or after the filing by or against Borrower of any
petition for relief under the Bankruptcy Code (the "Rents") and all
proceeds from the sale or other disposition of the Leases and the right to
receive and apply the Rents to the payment of the Debt;

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

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

-3-

 

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

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

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

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

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

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

(o)              
the right, in the name of and on behalf of Borrower, to appear in and
defend any action or proceeding brought with respect to the Premises, the
Improvements, the Fixtures or the Equipment and to commence any action or
proceeding to protect the interest of Lender in the Premises, the Improvements,
the Fixtures or the Equipment; and

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

All of the foregoing items (a) through (p), together with all
of the right, title and interest of Borrower therein, are collectively referred
to as the "Property".

TO HAVE AND TO HOLD the above granted and described Property
unto Lender, and the successors and assigns of Lender in fee simple, forever.

-4-

 

PROVIDED, ALWAYS, and these presents are upon this express
condition, if Borrower shall well and truly pay and discharge the Debt and
perform and observe the terms, covenants and conditions set forth in the Loan
Documents, then these presents and the estate hereby granted shall cease and be
void.

AND Borrower covenants with and warrants to Lender that:

ARTICLE
I

DEFINITIONS

Section 1.01         
Certain Definitions.

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

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

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

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

"Adjusted Net Cash Flow" shall mean Pro-Forma Net
Operating Income projected over the twelve (12)-month period subsequent to the
date of calculation less (i) the Recurring Replacement Reserve Monthly
Installment multiplied by twelve (12), (ii) Reletting Expenses, which are not
reimbursed or eligible for reimbursement from an Escrow Account, and (iii)
extraordinary capital improvements projected by Lender, in its reasonable
discretion, for the subsequent twelve (12) month period for which sums were not
deposited into the Recurring Replacement Reserve  Escrow Account.  The Adjusted
Net Cash Flow shall be calculated by Borrower and shall be subject to the
reasonable review and approval of Lender.

"Affiliate" of any specified Person shall mean any
other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person.  For the purposes
of this definition, "control", when used with respect to any specified Person,
means the power to direct the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract
or otherwise; and the terms "controlling" and "controlled" have the meanings
correlative to the foregoing.

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

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

-5-

 

"Appraiser" shall mean the Person who prepared the
Appraisal.

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

"Approved Manager Standard" shall mean the standard of
business operations, practices and procedures customarily employed by entities
which possess (i) the employment of a senior executive who has the
responsibility for oversight of the Property and has at least seven years of
experience in the management of first class office buildings and (ii) the
management of not less than five first class office buildings (excluding the
Property) having an aggregate leasable square footage of not less than the two
million leasable square feet.

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

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

"Bank" shall mean the bank, trust company, savings and
loan association or savings bank designated by Lender, in its reasonable discretion,
in which the Central Account shall be located.  PNC Bank, National Association
is hereby approved as the initial Bank.

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

"Basic Carrying Costs" shall mean the sum of the
following costs associated with the Property:  (a) Impositions and (b)
insurance premiums, if then applicable pursuant to the terms of this Security
Instrument.

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

"Basic Carrying Costs Monthly Installment" shall mean
Lender's estimate of one-twelfth (1/12th) of the annual amount for Basic
Carrying Costs.  "Basic Carrying Costs Monthly Installment" shall also include,
if required by Lender, a sum of money which, together with such monthly
installments, will be sufficient to make the payment of each such Basic
Carrying Cost at least fifteen (15) days prior to the date initially due. 
Should such Basic Carrying Costs not be ascertainable at the time any monthly
deposit is required to be made, the Basic Carrying Costs Monthly Installment
shall be determined by Lender in its reasonable discretion on the basis of the
aggregate Basic Carrying Costs for the prior Fiscal Year or month or the prior
payment period for such cost.  As soon as the Basic Carrying Costs are fixed
for the then current Fiscal Year, month or period, the next ensuing Basic
Carrying Costs Monthly Installment shall be adjusted to reflect any deficiency
or surplus in prior monthly payments.  If at any time during the term of the
Loan Lender determines that there will be insufficient funds in the Basic
Carrying Costs Escrow Account to make payments when they become due and
payable, Lender shall have the right to adjust the Basic Carrying Costs Monthly
Installment such that there will be sufficient funds to make such payments.

-6-

 

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

"Borrower" shall mean Borrower named herein and any
successor to the obligations of Borrower.

"Borrower's Operating Account" shall mean checking
account number 1019785981 held by Borrower at
PNC Bank, National Association.

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

"Buyer" shall have the meaning set forth in Section
9.04 of this Security Instrument.

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

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

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

"Closing Date" shall mean the date of the Note.

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

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

"Contest" shall have the meaning set forth in Section
18.32 hereof.

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

-7-

 

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

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

"Current Month" shall mean each Interest Accrual
Period.

"Debt" shall have the meaning set forth in the
Recitals hereto.

"Debt Service" shall mean the amount of interest and
principal payments due and payable in accordance with the Note during an
applicable period.

"Debt Service Coverage" shall mean the quotient
obtained by dividing Adjusted Net Cash Flow for the specified period by the sum
of the (a) aggregate payments of interest, principal and all other sums due for
such specified period under the Note (determined as of the date the calculation
of Debt Service Coverage is required or requested hereunder) and (b) aggregate
payments of interest, principal and all other sums due for such specified
period pursuant to the terms of subordinate or mezzanine financing, if any,
then secured by any interest in the Property or a direct ownership interest in
Borrower or, if Debt Service Coverage is being calculated in connection with a
request for consent to any subordinate financing, then proposed.  In
determining Debt Service Coverage, the applicable interest rate for the Loan
and for any floating rate loan referred to in clause (b) above, if any, shall
be the Interest Rate, with respect to the Loan, and the applicable margin over
the applicable index, with respect to any other loan referred to in clause (b)
above, plus the then current applicable index rate, with respect to any other
loan described in clause (b) above (but in no event more than the strike price
set forth in the Rate Cap Agreement or any similar agreement applicable to any
loan referred to in clause (b) above).

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

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

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

-8-

 

"Default Rate Interest" shall mean, to the extent the
Default Rate becomes applicable, interest in excess of the interest which would
have accrued on (a) the principal amount of the Loan which is outstanding from
time to time and (b) any accrued but unpaid interest, if the Default Rate was
not applicable.

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

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

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

"Environmental Problem"
shall mean any of the following:

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

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

-9-

 

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

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

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

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

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

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

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

-10-

 

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

"Escrow Account" shall mean
each of the Basic Carrying Costs Escrow Account, the Recurring Replacement
Reserve Escrow Account, the Rollover Reserve Escrow Account, the Debt
Service/Leasing Escrow Account, the Financial Covenant Reserve Escrow Account,
the Rent Abatement Reserve Escrow Account, and the Master Lease Escrow Account,
each of which shall be an Eligible Account or book entry sub-account of an
Eligible Account.

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

"Extraordinary Expense" shall
mean an extraordinary operating expense or capital expense not set forth in the
Approved Annual Budget or allotted for in the Recurring Replacement Reserve
Escrow Account.  Borrower shall deliver promptly to Lender a reasonably
detailed explanation of such proposed Extraordinary Expense for the approval of
Lender (such approval not to be unreasonably withheld or delayed).

"Financial Covenant Reserve
Escrow Account" shall have the meaning set forth in Section 5.11 hereof.

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

"First Interest Accrual Period"
shall mean the period commencing on the Closing Date and ending on the tenth
(10th) day of the month following the month in which the Closing Date occurs.

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

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

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

"General Partner" shall mean,
if Borrower is a partnership, each general partner of Borrower and, if Borrower
is a limited liability company, each managing member of Borrower.  In the
event that Borrower is a single member limited liability company, the term
"General Partner" shall include such single member.

-11-

 

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

"Guarantor" shall mean any Person guaranteeing, in
whole or in part, the obligations of Borrower under the Loan Documents.

"Hazardous Material" shall mean any flammable,
explosive or radioactive materials, hazardous materials or wastes, hazardous or
toxic substances, pollutants or related materials, asbestos or any material
containing asbestos, or any other substance or material as defined in or
regulated by any Environmental Statutes.

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

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

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

-12-

 

"Independent Director" shall mean a natural person who
is not at the time of initial appointment as a director or at any time while
serving as a director or manager of the Borrower and has not been at any time
during the five (5) years preceding such initial appointment, (a) a
stockholder, director (with the exception of serving as an Independent Director
of Member), officer, trustee, employee, partner, member, attorney or counsel of
Borrower or any Affiliate of Borrower; (b) a creditor, customer, supplier, or
other person who derives any of its purchases or revenues from its activities
with the Borrower or any Affiliate of either of them; (c) a Person Controlling
or under common Control with any Person excluded from serving as Independent
Director under (a) or (b); or (d) a member of the immediate family by blood or
marriage of any Person excluded from serving as Independent Director under (a)
or (b).  A natural person who satisfies the foregoing definition other than
subparagraph (b) shall not be disqualified from serving as an Independent
Director of the Borrower if such individual is an Independent Director provided
by a nationally-recognized company that provides professional independent
directors (a "Professional Independent Director") and other corporate
services in the ordinary course of its business.  A natural person who
otherwise satisfies the foregoing definition other than subparagraph (a) by
reason of being the independent director of a "special purpose entity"
affiliated with the Borrower shall not be disqualified from serving as an
Independent Director of the Borrower if such individual is either (i) a
Professional Independent Director or (ii) the fees that such individual earns
from serving as independent director of Affiliates of the Borrower constitute
in the aggregate less than five percent (5%) of such individual's annual
income.  Notwithstanding the immediately preceding sentence, an Independent
Director may not simultaneously serve as Independent Director of the Borrower
and independent director of a special purpose entity that owns a direct or
indirect equity interest in the Borrower.

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

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

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

-13-

 

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

"Intercreditor Agreement" shall have the meaning set
forth in Section 9.05(a) of this Security Instrument.

"Interest Accrual Period" shall have the meaning set
forth in the Note.

"Interest Rate" shall have the meaning set forth in
the Note.

"Interest Shortfall" shall mean any shortfall in the
amount of interest required to be paid with respect to the Loan Amount on any
Payment Date including interest through the end of the Interest Accrual Period
in which such Payment Date (or other payment such as an Unscheduled Payment)
occurs.

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

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

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

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

"Letter of Credit" shall have the meaning set forth in
Section 5.10(b) hereof.

"Loan" shall have the meaning set forth in the Recitals
hereto.

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

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

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

"Loss Proceeds" shall mean, collectively, all
Insurance Proceeds and all Condemnation Proceeds. 

-14-

 

"Major Space Lease" shall mean any Space Lease of a
tenant or Affiliate of such tenant where such tenant or such Affiliate leases,
in the aggregate, more than 75,000 square feet of space at the Property. 

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

"Manager" shall mean the Person, other than Borrower,
which manages the Property on behalf of Borrower.

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

"Master Lease" shall mean that certain Lease dated as
of July 11, 2006 between Borrower, as landlord, and Lincoln-Carlyle Illinois
Center, LLC, as tenant.

"Master Lease Reserve Escrow Account" shall have the
meaning set forth in Section 5.15 hereof.

"Master Lease Space" shall mean the space at the
Property leased pursuant to the Master Lease 

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

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

"Maturity Date" shall mean the Maturity Date set forth
in the Note.

"Member" means Parkway Chicago, LLC, a Delaware
limited liability company.

"Mezzanine Borrower" shall have the meaning set forth
in Section 9.05(a) of this Security Instrument.

"Mezzanine Lender" shall have the meaning set forth in
Section 9.05(a) of this Security Instrument.

"Mezzanine Loan" shall have the meaning set forth in
Section 9.05(a) of this Security Instrument.

"Mezzanine Loan Documents" shall have the meaning set
forth in Section 9.05 of this Security Instrument.

-15-

 

"Mezzanine Sweep Termination Notice" shall have the
meaning set forth in the Mezzanine Loan Documents.

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

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

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

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

"Non-Renewal Notice" shall have the meaning set forth
in Section 5.10(b) hereof.

"Note" shall have the meaning set forth in the
Recitals hereto.

"O&M Operative Period" shall mean the period of
time commencing upon the determination by Lender that the Debt Service Coverage
(tested quarterly except during the continuance of an O&M Operative Period,
in which event the Debt Service Coverage shall be tested monthly and shall be
calculated based upon information contained in the reports furnished to Lender
pursuant to Section 2.09 hereof) is less than 1.05:1 and terminating on the
Payment Date next succeeding the date upon which Lender determines that the
Debt Service Coverage for two (2) consecutive calendar months is 1.20:1 or
greater.

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

"Officer's Certificate" shall mean a certificate
delivered to Lender by Borrower which is signed on behalf of Borrower by the
Chief Financial Officer of Borrower which states that the items set forth in
such certificate are true, accurate and complete in all respects.

-16-

 

"Operating Expenses" shall mean, in each Fiscal Year
or portion thereof during the term hereof, all expenses directly attributable
to the operation, repair and/or maintenance of the Property including, without
limitation, (a) Impositions, (b) insurance premiums, (c) management fees,
whether or not actually paid, equal to the greater of the actual management
fees and three percent (3%) of annual "base" or "fixed" Rent due under the
Leases and (d) costs attributable to the operation, repair and maintenance of
the systems for heating, ventilating and air conditioning the Improvements and
actually paid for by Borrower.  Operating Expenses shall not include interest,
principal and premium, if any, due under the Note or otherwise in connection
with the Debt, income taxes, extraordinary capital improvement costs, any
non-cash charge or expense such as depreciation or amortization or any item of
expense otherwise includable in Operating Expense which is paid directly by any
tenant except real estate taxes paid directly to any taxing authority by any
tenant.

"Operating Income" shall mean, in each Fiscal Year or
portion thereof during the term hereof, all revenue derived by Borrower arising
from the Property including, without limitation, rental revenues (whether
denominated as basic rent, additional rent, escalation payments, electrical
payments or otherwise) and other fees and charges payable pursuant to Leases or
otherwise in connection with the Property, disbursements to Borrower from the
Escrow Accounts for amounts paid which are included as Operating Expenses and
business interruption, rent or other similar insurance proceeds.  Operating Income
shall not include (a) Insurance Proceeds (other than proceeds of rent, business
interruption or other similar insurance allocable to the applicable period) and
Condemnation Proceeds (other than Condemnation Proceeds arising from a
temporary taking or the use and occupancy of all or part of the applicable
Property allocable to the applicable period), or interest accrued on such
Condemnation Proceeds, (b) proceeds of any financing, (c) proceeds of any sale,
exchange or transfer of the Property or any part thereof or interest therein,
(d) capital contributions or loans to Borrower or an Affiliate of Borrower, (e)
any item of income otherwise includable in Operating Income but paid directly
by any tenant to a Person other than Borrower except for real estate taxes paid
directly to any taxing authority by any tenant, (f) any other extraordinary,
non-recurring revenues, (g) Rent paid by or on behalf of any lessee under a
Space Lease which is the subject of any proceeding or action relating to its
bankruptcy, reorganization or other arrangement pursuant to the Bankruptcy Code
or any similar federal or state law or which has been adjudicated a bankrupt or
insolvent unless such Space Lease has been affirmed by the trustee in such
proceeding or action, (h) Rent paid by or on behalf of any lessee under a Space
Lease the demised premises of which are not occupied either by such lessee or
by a sublessee thereof due to such tenant or tenants vacating the applicable
premises, or (i) sales tax rebates from any Governmental Authority.

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

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

"Pad Owners" shall mean any owner of any fee interest
in property contiguous to or surrounded by the Property who has entered into or
is subject to a reciprocal easement agreement or other agreement or agreements
with Borrower either (a) in connection with an existing or potential
improvement on such property or (b) relating to or affecting the Property.  

-17-

 

"Parkway" shall mean Parkway Properties LP, a Delaware
limited partnership

"Payment Date" shall have the meaning set forth in the
Note.

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

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

"Permitted Investments" shall mean any one or more of
the following obligations or securities acquired at a purchase price of not
greater than par, including those issued by Lender, a servicer of the Loan, the
trustee under any securitization of any of their respective Affiliates, payable
on demand or having a maturity date not later than the Business Day immediately
prior to the date on which the funds used to acquire such investment are
required to be used under this Agreement and meeting one of the appropriate standards
set forth below:

(a)  obligations
of, or obligations fully guaranteed as to payment of principal and interest by,
the United States or any agency or instrumentality thereof provided such
obligations are backed by the full faith and credit of the United States of
America and are one or more of the following: obligations of the U.S. Treasury
(all direct or fully guaranteed obligations, the General Services
Administration (participation certificates), the Small Business Administration
(guaranteed participation certificates and guaranteed pool certificates) and
the U.S. Department of Housing and Urban Development (local authority bonds);
provided, however, that the investments described in this clause must (i) have
a predetermined fixed dollar of principal due at maturity that cannot vary or
change, (ii) be rated "AAA" or the equivalent by each of the Rating Agencies,
(iii) if rated by S&P, must not have an "r" highlighter affixed to their
rating, (iv) if such investments have a variable rate of interest, such
interest rate must be tied to a single interest rate index plus a fixed spread
(if any) and must move proportionately with that index, and (v) such
investments must not be subject to liquidation prior to their maturity;

(b) Federal
Housing Administration debentures;

(c)  obligations
of the following United States government sponsored agencies: Federal Home Loan
Mortgage Corp. (debt obligations), the Farm Credit System (consolidated
systemwide bonds and notes), the Federal Home Loan Banks (consolidated debt
obligations) and the Federal National Mortgage Association (debt obligations); provided,
however, that the investments described in this clause must (i) have a
predetermined fixed dollar of principal due at maturity that cannot vary or
change, (ii) if rated by S&P, must not have an "r" highlighter affixed to
their rating, (iii) if such investments have a variable rate of interest, such
interest rate must be tied to a single interest rate index plus a fixed spread
(if any) and must move proportionately with that index, and (iv) such
investments must not be subject to liquidation prior to their maturity;

-18-

 

(d)  federal
funds, unsecured certificates of deposit, time deposits, bankers' acceptances
and repurchase agreements with maturities of not more than 365 days of any
bank, the short term obligations of which at all times are rated in the highest
short term rating category by each Rating Agency (or, if not rated by all
Rating Agencies, rated by at least one Rating Agency in the highest short term
rating category and otherwise acceptable to each other Rating Agency, as
confirmed in writing that such investment would not, in and of itself, result
in a downgrade, qualification or withdrawal of the initial, or, if higher, then
current ratings assigned to the Securities); provided, however, that the
investments described in this clause must (i) have a predetermined fixed dollar
of principal due at maturity that cannot vary or change, (ii) if rated by
S&P, must not have an "r" highlighter affixed to their rating, (iii) if
such investments have a variable rate of interest, such interest rate must be
tied to a single interest rate index plus a fixed spread (if any) and must move
proportionately with that index, and (iv) such investments must not be subject
to liquidation prior to their maturity;

(e)  fully
Federal Deposit Insurance Corporation-insured demand and time deposits in, or
certificates of deposit of, or bankers' acceptances issued by, any bank or
trust company, savings and loan association or savings bank, the short term
obligations of which at all times are rated in the highest short term rating
category by each Rating Agency (or, if not rated by all Rating Agencies, rated
by at least one Rating Agency in the highest short term rating category and otherwise
acceptable to each other Rating Agency, as confirmed in writing that such
investment would not, in and of itself, result in a downgrade, qualification or
withdrawal of the initial, or, if higher, then current ratings assigned to the
Securities); provided, however, that the investments described in this clause
must (i) have a predetermined fixed dollar of principal due at maturity that
cannot vary or change, (ii) if rated by S&P, must not have an "r"
highlighter affixed to their rating, (iii) if such investments have a variable
rate of interest, such interest rate must be tied to a single interest rate
index plus a fixed spread (if any) and must move proportionately with that
index, and (iv) such investments must not be subject to liquidation prior to
their maturity;

(f)  debt
obligations with maturities of not more than 365 days and at all times rated by
each Rating Agency (or, if not rated by all Rating Agencies, rated by at least
one Rating Agency and otherwise acceptable to each other Rating Agency, as
confirmed in writing that such investment would not, in and of itself, result
in a downgrade, qualification or withdrawal of the initial, or, if higher, then
current ratings assigned to the Securities) in its highest long-term unsecured
rating category; provided, however, that the investments described in this
clause must (i) have a predetermined fixed dollar of principal due at maturity
that cannot vary or change, (ii) if rated by S&P, must not have an "r"
highlighter affixed to their rating, (iii) if such investments have a variable
rate of interest, such interest rate must be tied to a single interest rate
index plus a fixed spread (if any) and must move proportionately with that
index, and (iv) such investments must not be subject to liquidation prior to
their maturity;

-19-

 

(g)  commercial
paper (including both non-interest-bearing discount obligations and
interest-bearing obligations payable on demand or on a specified date not more
than one year after the date of issuance thereof) with maturities of not more
than 365 days and that at all times is rated by each Rating Agency (or, if not
rated by all Rating Agencies, rated by at least one Rating Agency and otherwise
acceptable to each other Rating Agency, as confirmed in writing that such
investment would not, in and of itself, result in a downgrade, qualification or
withdrawal of the initial, or, if higher, then current ratings assigned to the
Securities) in its highest short-term unsecured debt rating; provided, however,
that the investments described in this clause must (i) have a predetermined
fixed dollar of principal due at maturity that cannot vary or change, (ii) if
rated by S&P, must not have an "r" highlighter affixed to their rating,
(iii) if such investments have a variable rate of interest, such interest rate
must be tied to a single interest rate index plus a fixed spread (if any) and
must move proportionately with that index, and (iv) such investments must not
be subject to liquidation prior to their maturity;

(h)  units of
taxable money market funds, which funds are regulated investment companies,
seek to maintain a constant net asset value per share and invest solely in
obligations backed by the full faith and credit of the United States, which
funds have the highest rating available from each Rating Agency (or, if not
rated by all Rating Agencies, rated by at least one Rating Agency and otherwise
acceptable to each other Rating Agency, as confirmed in writing that such
investment would not, in and of itself, result in a downgrade, qualification or
withdrawal of the initial, or, if higher, then current ratings assigned to the
Securities) for money market funds; and

(i)  any other
security, obligation or investment which has been approved as a Permitted
Investment in writing by (i) Lender and (ii) each Rating Agency, as evidenced
by a written confirmation that the designation of such security, obligation or
investment as a Permitted Investment will not, in and of itself, result in a
downgrade, qualification or withdrawal of the initial, or, if higher, then
current ratings assigned to the Securities by such Rating Agency; 

provided, however, that no obligation or security
shall be a Permitted Investment if (A) such obligation or security evidences a
right to receive only interest payments, and (B) the right to receive principal
and interest payments on such obligation or security are derived from an
underlying investment that provides a yield to maturity in excess of one
hundred twenty percent (120%) of the yield to maturity at par of such underlying
investment; and

provided, further that at any time that Borrower is not
permitted under the Loan Documents to select Permitted Investments, the term
"Permitted Investments" shall mean any one or more of the obligations or
securities included in subsections (a) through (c) above.

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

-20-

 

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

"PPI" shall mean Parkway Properties, Inc., a Maryland corporation.

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

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

"Principal Payments" shall mean all payments of
principal made pursuant to the terms of the Note.

"Pro-Forma Net Operating Income" shall mean Pro-Forma
Operating Income less Pro-Forma Operating Expenses.

"Pro-Forma Operating Expenses" shall mean projected
annualized Operating Expenses based on a trailing twelve (12)-month period
adjusted upwards (but not downwards) by CPI as reasonably adjusted by Lender to
take into account, among other things, anticipated increases in Operating
Expenses.

"Pro-Forma Operating Income" shall mean projected
annualized Operating Income based on the most recent rent roll and such other
information as is required to be delivered by Borrower pursuant to Section 2.09
hereof excluding only rent receivables (pursuant to the most recent Rent Roll)
that are more than forty-five (45) days old as reasonably adjusted by Lender to
take into account, among other things, a vacancy factor equal to anticipated
vacancies.

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

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

"Property Agreements" shall mean all agreements,
grants of easements and/or rights-of-way, reciprocal easement agreements,
permits, declarations of covenants, conditions and restrictions, disposition
and development agreements, planned unit development agreements, management or
parking agreements, party wall agreements or other instruments affecting the
Property, including, without limitation any agreements with Pad Owners, but not
including any brokerage agreements, management agreements, service contracts,
Space Leases or the Loan Documents.

-21-

 

"Qualified Financial Institution" shall mean one or
more of the following: (i) a real estate investment trust, bank, saving and
loan association, investment bank, insurance company, trust company, commercial
credit corporation, pension plan, pension fund or pension advisory firm, mutual
fund, government entity or plan, (ii) investment company, money management firm
or "qualified institutional buyer" within the meaning of Rule 144A under the
Securities Act of 1933, as amended, or an institutional "accredited investor"
within the meaning of Regulation D under the Securities Act of 1933, as
amended, which is regularly engaged in the business of making or owning loans
of similar types to the Mezzanine Loan or the Loan, (iii) a Qualified Trustee
in connection with a securitization of, the creation of collateralized debt
obligations ("CDO") secured by or financing through an "owner trust" of,
the Mezzanine Loan, so long as (I) the special servicer or manager of such
securitization, CDO or trust has the Required Special Servicer Rating, (II) the
"controlling class" of such securitization vehicle is held by the Mezzanine
Beneficiary or a Qualified Financial Institution and (III) the operative
documents of the related securitization vehicle, CDO or financing must require
that (x) the "controlling class" or "equity interest" in such securitization
vehicle or CDO are owned by the Mezzanine Beneficiary, a Qualified Financial
Institution or a Permitted Investment Fund and (y) if any of the relevant
trustee, special servicer, manager or controlling class fails to meet the
requirements of such clause, such entity must be replaced by a qualifying
entity within 30 days, (iv) an investment fund, limited liability company,
limited partnership or general partnership (a "Permitted Investment Fund")
where the Mezzanine Beneficiary or a Qualified Financial Institution or a
Permitted Fund Manager acts as the general partner, managing member or fund
manager and at least 50% of the equity interests in such Investment Fund are
owned, directly or indirectly, by one or more of the following: the Mezzanine
Beneficiary, a Qualified Financial Institution, an institutional "accredited
investor", within the meaning of Regulation D promulgated under the Securities
Act of 1933, as amended, and/or a "qualified institutional buyer" or both
within the meaning of Rule 144A promulgated under the Securities Exchange Act
of 1934 (provided each institutional "accredited investor" or "qualified
institutional buyer" meets the test set forth in clause (vi) (A) below), as
amended, (v) any other lender or entity (including any opportunity funds)
regularly engaged in the business of making mezzanine loans which has been
approved as a Qualified Financial Institution hereunder by the Rating Agencies,
or (vi) an institution substantially similar to any of the foregoing entities
described in clauses (b)(i) or (ii) of this definition, and as to each of the
entities described in clauses (b)(i), (ii) and (vi) provided such entity (A)
has total assets (in name or under management) in excess of $600,000,000 and
(except with respect to a pension advisory firm or similar fiduciary)
capital/statutory surplus or shareholder's equity of $200,000,000; and (B) is
regularly engaged in the business of making or owning commercial real estate
loans or commercial loans secured by a pledge of interests in a mortgage
borrower or (vii) any entity Controlled (as defined below) by any one or more
of the entities described in clause (b) of this definition. For purposes of
this definition only, "Control" means the ownership, directly or indirectly, in
the aggregate of more than fifty percent (50%) of the beneficial ownership
interest of an entity and the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of an entity,
whether through the ability to exercise voting power, by contract or otherwise.
As of the Closing Date, Wachovia Bank, National Association shall be deemed to
be a Qualified Financial Institution.

-22-

 

"Qualified Joint Venture Party" shall mean any person
or entity (or any entity owned and controlled by any person or entity) (i) (A)
that is regularly engaged in the business of owning or investing in commercial
real estate, (B) whose funds or assets do not constitute property of, or shall
be beneficially owned directly or indirectly, by any person subject to
sanctions or trade restrictions under United States law ("Embargoed Person" or "Embargoed
Persons") that are identified on (1) the "List of Specially Designated
Nationals and Blocked Persons" maintained by the Office of Foreign Assets
Control (OFAC), U.S. Department of the Treasury, and/or to such transferee's
best knowledge, as of the date thereof, based upon reasonable inquiry by such
transferee, on any other similar list maintained by OFAC pursuant to any
authorizing statute including, but not limited to, the International Emergency
Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with
the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Order
or regulation promulgated thereunder, with the result that the investment in
such transferee or any guarantor, as applicable (whether directly or
indirectly), is prohibited by law, or the transfer of the Property and the
related assumption of the Loan would be in violation of law, or (2) Executive
Order 13224 (September 23, 2001) issued by the President of the United States
("Executive Order Blocking Property and Prohibiting Transactions with Persons
Who Commit, Threaten to Commit, or Support Terrorism"), any related enabling
legislation or any other similar executive orders (including but not limited to
the Uniting and Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act of 2001, U.S. Public Law 107-56, and
the related regulations issued thereunder, including temporary regulations),
and no Embargoed Person shall have any direct interest, and to such
transferee's best knowledge, as of the date thereof, based upon reasonable
inquiry by such transferee, indirect interest, of any nature whatsoever in such
transferee or any guarantor, as applicable, with the result that the investment
in such transferee or any guarantor, as applicable (whether directly or
indirectly), is prohibited by law or the transfer of the Property or the Loan
is in violation of law or (ii) that is an entity which is an indirect owner of Borrower
and which is a real estate investment trust or the operating partnership of
such real estate investment trust.

"Qualified Property Manager" shall mean Manager or a
reputable and experienced professional management organization either (a) (i)
having at least five (5) years' experience in the management of commercial
properties with similar uses as the Premises and in the jurisdiction in which the
Premises are located, (ii) having, for at least five (5) years prior to its
engagement as property manager, managed at least (5) properties of the same
property type as the Premises and (iii) which manages, together with its
affiliates, at least five (5) first class office buildings totaling at least
2,000,000 square feet of gross leasable area, exclusive of the Property or (b)
is approved by Lender, which approval shall not have been unreasonably withheld
and for which Lender shall have received written confirmation from the Rating
Agencies that the employment of such manager will not result in a downgrade,
withdrawal or qualification of the initial, or if higher, then current ratings
issued in connection with a Securitization, or if a Securitization has not
occurred, any ratings to be assigned in connection with a Securitization, or if
a Securitization has not occurred, any ratings to be assigned in connection
with a Securitization.

"Qualified Trustee" shall mean (i) a corporation,
national bank, national banking association or trust company, organized and
doing business under the laws of any state or the United States of America,
authorized under such laws to exercise corporate trust powers and to accept the
trust conferred, having a combined capital and surplus of at least $100,000,000
and subject to supervision or examination by federal or state authority, (ii)
an institution insured by the Federal Deposit Insurance Corporation or (iii) an
institution whose long-term senior unsecured debt is rated either of the then
in effect top two rating categories of each Rating Agencies.

-23-

 

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

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

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

"Recurring Replacement Reserve Monthly Installment" shall
mean the lesser of (i) the amount per month set forth on Exhibit B attached
hereto and made a part hereof and (ii) the amount which would make the funds on
deposit in the Recurring Replacement Reserve Sub-Account equal to
$2,000,000.00.

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

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

"Reletting Expenses" shall mean a sum which represents
Lender's estimate of expenditures to be incurred by Borrower on an annual basis
during the term of the Loan relating to reletting of space at the Property and
in connection with any brokerage commissions due and payable in connection
therewith, or any improvements and replacements required to be made by Borrower
(or expenditures to be paid to tenants in connection with any improvements and
replacements to be made by tenants at the Property) to prepare the relevant
space for occupancy. 

"Rent Abatement Reserve Escrow Account" shall have the
meaning set forth in Section 5.13 hereof.

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

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

"Replacement Mezzanine Loan" shall have the meaning
set forth in Section 9.05(b) hereof.

-24-

 

"Replacement Mezzanine Loan Criteria" shall mean that
(i) Lender shall receive no less that thirty (30) days' prior written notice of
any such person or entity's intention to enter into the Replacement Mezzanine
Loan; (ii) the Mezzanine Loan has been, or contemporaneously with the
Replacement Mezzanine Loan shall be, repaid in full; (iii) Lender shall have
approved (a) the terms and structure of the Mezzanine Loan and (b) the
documents and instruments in connection with the Replacement Mezzanine Loan
(the "Replacement Mezzanine Loan Documents"); (iv) the lender
originating and holding the Replacement Mezzanine Loan shall be a Qualified
Financial Institution (the "Replacement Mezzanine Lender"); (v) the
Replacement Mezzanine Lender and Lender shall have entered into an
intercreditor agreement in form acceptable to Lender and any applicable Rating
Agency which provides, inter alia, that (a) Replacement Mezzanine
Lender shall have certain limited cure rights upon the occurrence of an Event
of Default under this Security Instrument, so long as such cure occurs within
the cure period for such Event of Default and so long as such cure does not
require the possession, operation or management of the Property and (b)
Replacement Mezzanine Lender shall not, prior to payment in full of the Debt,
exercise any rights or remedies it may have under the Replacement Mezzanine
Loan Documents including, without limitation, any rights to obtain title to the
limited liability company interests of Mezzanine Borrower in the Grantor except
in accordance with the applicable intercreditor agreement; (vi) the Property
has a Debt Service Coverage, after giving effect to the Loan and the
Replacement Mezzanine Loan, for the twelve (12) month period commencing on the
date Borrower requests Lender's approval of the Replacement Mezzanine Loan, of
not less than 1.10 to 1.00; (vii) the combined loan to value ratio (including
the Loan and the Replacement Mezzanine Loan), as established by a current MAI
appraisal prepared by an appraiser approved by Lender and conducted after
Borrower requests Lender's approval of the Replacement Mezzanine Loan, is no
more than 85%; (viiii) no Event of Default, nor any event which with notice or
the passage of time or both would constitute an Event of Default, shall have
occurred and be then continuing under any of the Loan Documents; (ix) Lender
shall have received evidence satisfactory to Lender that the Replacement
Mezzanine Loan shall have no adverse effect on the bankruptcy remote status of
either Member or Borrower under the requirements of any Rating Agency; (x)
delivery to Lender of all items reasonably required by Lender in connection
with Lender's evaluation and approval of the Replacement Mezzanine Loan, all of
which must be acceptable in form and substance to Lender, including, without
limitation, current rent rolls, operating statements and financial statements;
(xi) Lender shall have determined that there has been no material adverse change
in the condition, financial, physical or otherwise, of the Property, Member,
Borrower or any guarantor since the date hereof; (xii) Borrower shall cause to
be delivered to Lender written confirmation from the Rating Agencies that the
Replacement Mezzanine Loan will not result in a downgrade, withdrawal or
qualification of the ratings issued in connection with the securitization of
the Loan, or if a securitization has not occurred, any ratings to be assigned
in connection with a Securitization; (xiii) Lender shall have received an
update to the Insolvency Opinion reflecting the Replacement Mezzanine Loan or
Borrower shall deliver a new opinion relating to substantive consolidation
dated as of the date of the closing of the Replacement Mezzanine Loan; (xiv) Borrower
and Member shall provide amendments to the organizational documents of each of
Borrower and Member reflecting the existence of the Replacement Mezzanine Loan
as shall be required by Lender in accordance with the Lender's and the Rating
Agencies' requirements; and (xv) payment by Borrower of all reasonable costs
and expenses, including legal fees incurred by Lender in connection with the
Replacement Mezzanine Loan, including, without limitation, payment to Lender of
a deposit of $5,000 (the "Expense Deposit") toward such costs and
expenses at the time Borrower requests Lender's approval of the Replacement
Mezzanine Loan.  If Lender determines that the conditions set forth herein have
not been satisfied, the deposit less Lender's actual costs and expenses shall
be returned to Borrower.  If the actual costs and expenses are greater than the
Expense Deposit, Borrower shall pay the difference to Lender.

-25-

 

"Required Debt Service Coverage" shall mean a Debt
Service Coverage of not less than 1.2:1.

"Required Debt Service Payment" shall mean, as of any
Payment Date, (a) the amount of interest and principal then due and payable
pursuant to the Note, together with any other sums due thereunder, including,
without limitation, any prepayments required to be made or for which notice has
been given under this Security Instrument, Default Rate Interest and premium,
if any, paid in accordance therewith plus (b) reasonable out-of-pocket fees
incurred by Lender in connection with its administration and servicing of the
Central Account.

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

"Required Special Servicer Rating" shall mean a
special servicer rating of "CSS1" in the case of Fitch Inc. ("Fitch"), a
servicer on its approved list of special servicers in the case of S&P and,
in the case of Moody's, a special servicer that is acting as special servicer
in a commercial mortgage loan securitization that was rated by Moody's within
the six month period prior to the date of determination and Moody's has not
downgraded or withdrawn the then-current rating on any class of commercial
mortgage securities or placed any class of commercial mortgage securities on
watch citing the continuation of such special servicer as special servicer of
such commercial mortgage securities. The requirement of any agency not a Rating
Agency shall be disregarded.

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

"Rollover Reserve Escrow Account" shall have the
meaning set forth in Section 5.10 hereof.

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

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

"Securitization Cooperation Agreement" shall mean that
certain Securitization Cooperation and Indemnification Agreement of even date
herewith executed and delivered by Borrower and others to Lender in connection
with the Loan.

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

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

-26-

 

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

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

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

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

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

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

"Substantial Casualty" shall have the meaning set
forth in Section 3.04 hereof.

"Sweep Termination Notice" shall have the meaning set
forth in Section 5.01(a) hereof.

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

-27-

 

"Total GLA" shall mean the total gross leasable area
of the Property, including all Space Leases.  

"Transfer" shall mean the conveyance, assignment,
sale, mortgaging, encumbrance, pledging, hypothecation, granting of a security
interest in, granting of options with respect to, or other disposition of
(directly or indirectly, voluntarily or involuntarily, by operation of law or
otherwise, and whether or not for consideration or of record) all or any
portion of any legal or beneficial interest (a) in all or any portion of the Property;
(b) if Borrower or, if Borrower is a partnership, any General Partner, is a
corporation, in the stock of Borrower or any General Partner by which an
aggregate of 49% or more of such corporation's stock shall directly or
indirectly be vested in or pledged to a party or parties who, as of the Closing
Date, did not own, directly or indirectly, 49% or more of such corporation's
stock or results in a change in control of the management of the General
Partner from the individuals exercising such control immediately prior to the
conveyance (provided, however, that there shall be no restriction on the sale
or transfer of stock or shares that are traded on a nationally recognized stock
exchange); (c) in Borrower (or any trust of which Borrower is a trustee); or
(d) if Borrower is a limited or general partnership, joint venture, limited
liability company, trust, nominee trust, tenancy in common or other
unincorporated form of business association or form of ownership interest, in
any Person having a legal or beneficial ownership in Borrower, excluding any
legal or beneficial interest in any constituent limited partner, if Borrower is
a limited partnership, or in any non-managing member, if Borrower is a limited
liability company, unless such interest would, or together with all other
direct or indirect interests in Borrower which were previously transferred,
aggregate 49% or more of the partnership or membership, as applicable, interest
in Borrower or would result in any Person who, as of the Closing Date, did not
own, directly or indirectly, 49% or more of the partnership or membership, as
applicable, interest in Borrower, owning, directly or indirectly, 49% or more
of the partnership or membership, as applicable, interest in Borrower and
excluding any legal or beneficial interest in any General Partner unless such
interest would, or together with all other direct or indirect interest in the
General Partner which were previously transferred, aggregate 49% or more of the
partnership or membership, as applicable, interest in the General Partner (or
result in a change in control of the management of the General Partner from the
individuals exercising such control immediately prior to the conveyance or
other disposition of such legal or beneficial interest) and shall also include,
without limitation to the foregoing, the following:  an installment sales
agreement wherein Borrower agrees to sell the Property or any part thereof or
any interest therein for a price to be paid in installments; an agreement by
Borrower leasing all or substantially all of the Property to one or more
Persons pursuant to a single or related transactions, or a sale, assignment or
other transfer of, or the grant of a security interest in, Borrower's right,
title and interest in and to any Leases or any Rent; any instrument subjecting
the Property to a condominium regime or transferring ownership to a cooperative
corporation; and the dissolution or termination of Borrower or the merger or
consolidation of Borrower with any other Person.  A Transfer pursuant to the
last sentence of Section 9.02(a) shall be disregarded for purposes of
determining whether a transaction meets the definition of Transfer.

"Trigger Event" shall mean the occurrence of either of
the following events: (i) Lender sends a Sweep Termination Notice after
the occurrence of an Event of Default or during an O&M Operative Period
and/or (ii) the Mezzanine Lender sends a Mezzanine Sweep Termination Notice
pursuant to the terms of the Mezzanine Loan Documents.

-28-

 

"UCC" shall mean the Uniform Commercial Code as in
effect in the State in which the Property is located.

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

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

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

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

ARTICLE
II

REPRESENTATIONS, WARRANTIES

AND COVENANTS OF BORROWER

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

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

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

-29-

 

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

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

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

(e)               
Interest Rate.  To Borrower's actual knowledge, the rate of
interest paid under the Note and the method and manner of the calculation
thereof do not violate any usury or other law or applicable Legal Requirement.

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

-30-

 

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

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

(iii)               
Borrower and, if applicable, each General Partner have done or caused to
be done and will do all things necessary to observe organizational formalities
and preserve their existence and Borrower and, if applicable, each General
Partner will not amend, modify or otherwise change the certificate and
agreement of partnership or certificate of incorporation and by-laws or
articles of organization and operating agreement, as applicable, or other
organizational documents of Borrower and, if applicable, each General Partner if
such change would result in a downgrade, qualification or withdrawal of any
class of securities issued in connection with a Securitization or, if the Loan
is not yet part of a Securitization, would result in an increase in the
subordination levels of any class of securities anticipated to be issued in
connection with a proposed Securitization.  

(iv)               
Borrower and, if applicable, each General Partner, have at all times
accurately maintained, and will continue to accurately maintain, their
respective financial statements, accounting records and other partnership,
company or corporate documents separate from those of any other Person and
Borrower will file its own tax returns (except to the extent that it has been a tax-disregarded entity not
required to file tax returns under applicable law) or, if Borrower
and/or, if applicable, General Partner is part of a consolidated group for
purposes of filing tax returns, Borrower and, General Partner, as applicable
will be shown as separate members of such group.  Borrower and, if applicable,
each General Partner have not at any time since their formation commingled, and
will not commingle, their respective assets with those of any other Person and
will maintain their assets in such a manner such that it will not be costly or
difficult to segregate, ascertain or identify their individual assets from
those of any other Person.  Borrower and, if applicable, each General Partner
will not permit any Affiliate independent access to their bank accounts. 
Borrower and, if applicable, each General Partner have at all times since their
formation accurately maintained and utilized, and will continue to accurately
maintain and utilize, their own separate bank accounts, payroll and separate
books of account, stationery, invoices and checks.  Borrower may at times use
the logo of PPI in connection with the Property, provided that Borrower shall
keep its identity separate from such entity.

-31-

 

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

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

            (vii)               
Borrower and, if applicable, each General Partner, have been at all
times, and will continue to be, adequately capitalized in light of the nature
of their respective businesses.

              (viii)               
Borrower and, if applicable, each General Partner, (A) have not owned,
do not own and will not own any assets or property other than the Property and
any incidental personal property necessary for the ownership, management or
operation of the Property, (B) have not engaged and will not engage in any
business other than the ownership, management and operation of the Property,
(C) have not incurred and will not incur any debt, secured or unsecured, direct
or contingent (including guaranteeing any obligation), other than (X) the Loan and
(Y) unsecured trade and operational debt which (1) is not evidenced by a note,
(2) is incurred in the ordinary course of the operation of the Property, (3)
does not exceed in the aggregate two percent (2%) of the Loan Amount and (4)
which is, unless being contested in accordance with the terms of this Security
Instrument, paid prior to the earlier to occur of the sixtieth (60th) day after
the date incurred and the date when due, (D) have not and will not pledge their
assets for the benefit of any other Person, and (E) have not made and will not
make any loans or advances to any Person (including any Affiliate).

                                       (ix)               
Neither Borrower nor, if applicable, any General Partner will change its
name or principal place of business.

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

                         (xi)               
Borrower will preserve and maintain its existence as a limited liability
company and all material rights, privileges, tradenames and franchises.

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

-32-

 

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

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

                (xv)               
Intentionally Omitted.

                (xvi)               
Borrower shall at all times cause there to be at least two duly
appointed Independent Directors of Borrower.

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

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

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

-33-

 

                              (xx)               
In the event Borrower is a single-member Delaware limited liability
company, (1) the limited liability company agreement of Borrower (the "LLC
Agreement") shall provide that (i) upon the occurrence of any event that
causes the sole member of Borrower ("Member") to cease to be the member
of Borrower (other than (A) upon an assignment by Member of all of its limited
liability company interest in Borrower and the admission of the transferee, or
(B) the resignation of Member and the admission of an additional member in
either case in accordance with the terms of the Loan Documents and the LLC
Agreement), any person acting as Independent Director of Borrower shall without
any action of any other Person and simultaneously with the Member ceasing to be
the member of Borrower, automatically be admitted to Borrower ("Special
Member") and shall continue Borrower without dissolution and (ii) Special
Member may not resign from Borrower or transfer its rights as Special Member
unless (A) a successor Special Member has been admitted to Borrower as Special
Member in accordance with requirements of Delaware law and (B) such successor
Special Member has also accepted its appointment as an Independent Director and
(2) the provisions of this subsection (g) shall not apply to General Partner. 
The LLC Agreement shall further provide that (i) Special Member shall
automatically cease to be a member of Borrower upon the admission to Borrower
of a substitute Member, (ii) Special Member shall be a member of Borrower that
has no interest in the profits, losses and capital of Borrower and has no right
to receive any distributions of Borrower assets, (iii) pursuant to Section
18-301 of the Delaware Limited Liability Company Act (the "Act"),
Special Member shall not be required to make any capital contributions to
Borrower and shall not receive a limited liability company interest in
Borrower, (iv) Special Member, in its capacity as Special Member, may not bind
Borrower, and (v) except as required by any mandatory provision of the Act,
Special Member, in its capacity as Special Member, shall have no right to vote
on, approve or otherwise consent to any action by, or matter relating to,
Borrower, including, without limitation, the merger, consolidation or
conversion of Borrower; provided, however, such prohibition shall not limit the
obligations of Special Member, in its capacity as Independent Director, to vote
on such matters required by the Loan Documents or the LLC Agreement.  In order
to implement the admission to Borrower of Special Member, Special Member shall
execute a counterpart to the LLC Agreement.  Prior to its admission to Borrower
as Special Member, Special Member shall not be a member of Borrower.

                                (xi)               
Upon the occurrence of any event that causes the Member to cease to be a
member of Borrower, to the fullest extent permitted by law, the personal representative
of Member shall, within ninety (90) days after the occurrence of the event that
terminated the continued membership of Member in Borrower, agree in writing (i)
to continue Borrower and (ii) to the admission of the personal representative
or its nominee or designee, as the case may be, as a substitute member of
Borrower, effective as of the occurrence of the event that terminated the
continued membership of Member of Borrower in Borrower.  Any action initiated
by or brought against Member or Special Member under any creditors rights laws
shall not cause Member or Special Member to cease to be a member of Borrower
and upon the occurrence of such an event, the business of Borrower shall
continue without dissolution.  The LLC Agreement shall provide that each of
Member and Special Member waives any right it might have to agree in writing to
dissolve Borrower upon the occurrence of any action initiated by or brought
against Member or Special Member under any creditors rights laws, or the
occurrence of an event that causes Member or Special Member to cease to be a
member of Borrower.

-34-

 

(h)               
No Defaults.  No Default or Event of Default has occurred and is
continuing or would occur as a result of the consummation of the transactions
contemplated by the Loan Documents.  Borrower is not in default beyond any
applicable grace period in the payment or performance of any of its Contractual
Obligations in any respect.

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

(j)                
Investment Company Act Status.  Borrower is not an "investment
company," or a company "controlled" by an "investment company," as such terms
are defined in the Investment Company Act of 1940, as amended.

(k)              
Compliance with Law.  Borrower is in compliance in all material
respects with all Legal Requirements to which it or the Property is subject,
including, without limitation, all Environmental Statutes, the Occupational
Safety and Health Act of 1970, the Americans with Disabilities Act, ERISA, Executive
Order Number 13224 dated September 24, 2001, the USA Patriot Act dated October
26, 2001, the Trading with the Enemy Act and any anti-money laundering laws. 
No portion of the Property has been or will be purchased, improved, fixtured,
equipped or furnished with proceeds of any illegal activity and, to the best of
Borrower's knowledge, no illegal activities are being conducted at or from the
Property.

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

-35-

 

(m)             
Transaction Brokerage Fees.  Borrower has not dealt with any financial
advisors, brokers, underwriters, placement agents, agents or finders in
connection with the transactions contemplated by this Security Instrument.  All
brokerage fees, commissions and other expenses payable in connection with the
transactions contemplated by the Loan Documents have been paid in full by
Borrower contemporaneously with the execution of the Loan Documents and the
funding of the Loan.  Borrower hereby agrees to indemnify and hold Lender
harmless for, from and against any and all claims, liabilities, costs and
expenses of any kind in any way relating to or arising from (i) a claim by any
Person that such Person acted on behalf of Borrower in connection with the
transactions contemplated herein or (ii) any breach of the foregoing representation. 
The provisions of this subsection (m) shall survive the repayment of the Debt.

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

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

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

(q)              
Use of Proceeds.  The proceeds of the Loan shall be applied by
Borrower to, inter alia, (i) acquire title to the Property and (ii) pay
certain transaction costs incurred by Borrower in connection with the Loan and
acquisition.  No portion of the proceeds of the Loan will be used for family,
personal, agricultural or household use, or for any purpose not permitted under
the Bankruptcy Code.

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

-36-

 

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

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

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

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

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

-37-

 

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

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

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

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

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

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

-38-

 

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

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

(w)            Compliance with Anti-Terrorism,
Embargo and Anti-Money Laundering Laws.  (i) Excluding any interest in a
publicly traded entity as to which no representation is made, none of Borrower,
General Partner, any Guarantor or any Person who owns any equity interest in or
Controls Borrower, General Partner or any Guarantor currently is identified on
the OFAC List or otherwise qualifies as a Prohibited Person, and Borrower has
implemented procedures, approved by General Partner, to ensure that no Person
who now or hereafter owns an equity interest in Borrower or General Partner is
a Prohibited Person or Controlled by a Prohibited Person, and (ii) none of
Borrower, General Partner, or any Guarantor are in violation of any Legal
Requirements relating to anti-money laundering or anti-terrorism, including,
without limitation, Legal Requirements related to transacting business with
Prohibited Persons or the requirements of the Uniting and Strengthening America
by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act
of 2001, U.S. Public Law 107-56, Executive Order Number 13224 dated September 24,
2001, the USA Patriot Act dated October 26, 2001, the Trading with the Enemy
Act and the related regulations issued thereunder, including temporary
regulations, all as amended from time to time.  To the best of Borrower's
knowledge, no tenant at the Property currently is identified on the OFAC List
or otherwise qualifies as a Prohibited Person, and, to the best of Borrower's
knowledge, no tenant at the Property is owned or Controlled by a Prohibited
Person.  Borrower has determined that Manager has implemented procedures,
approved by Borrower, to ensure that no future tenant at the Property is a
Prohibited Person or owned or Controlled by a Prohibited Person.

-39-

 

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

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

Section 2.05    
Representations and Warranties as to the Property.   Borrower, for itself, and its successors and assigns,
represents and warrants with respect to the Property as follows:

-40-

 

(a)               
Lien Priority.  This Security Instrument is a valid and
enforceable first lien on the Property, free and clear of all encumbrances and
liens having priority over the lien of this Security Instrument, except for the
items set forth as exceptions to or subordinate matters in the title insurance
policy insuring the lien of this Security Instrument that Lender has agreed to
accept and liens for taxes not yet delinquent, none of which, individually or
in the aggregate, materially interfere with the benefits of the security
intended to be provided by this Security Instrument, materially affect the
value or marketability of the Property, impair the use or operation of the
Property for the use currently being made thereof or impair Borrower's ability
to pay its obligations in a timely manner (such items being the "Permitted
Encumbrances").

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

(c)               
Taxes and Impositions.  All taxes and other Impositions and
governmental assessments due and owing in respect of, and affecting, the
Property have been paid.  Borrower has paid all Impositions which constitute
special governmental assessments in full, except for those assessments which
are permitted by applicable Legal Requirements to be paid in installments, in
which case all installments which are due and payable have been paid in full. 
There are no pending, or to Borrower's best knowledge, proposed special or
other assessments for public improvements or otherwise affecting the Property,
nor are there any contemplated improvements to the Property that may result in
such special or other assessments.

(d)              
Casualty; Flood Zone.  Except as disclosed in that certain
engineering report (the "Engineering Report") entitled Property
Condition Assessment No. 17-06-067, dated April 28, 2006 and prepared by Jones Hill McFarland & Ellis, the Realty is in
good repair and free and clear of any damage, destruction or casualty (whether
or not covered by insurance) that would materially affect the value of the
Realty or the use for which the Realty was intended, there exists no structural
or other material defects or damages in or to the Property and Borrower has not
received any written notice from any insurance company or bonding company of
any material defect or inadequacies in the Property, or any part thereof, which
would materially and adversely affect the insurability of the same or cause the
imposition of extraordinary premiums or charges thereon or of any termination
or threatened termination of any policy or insurance or bond.  No portion of
the Premises is located in an "area of special flood hazard," as that term is
defined in the regulations of the Federal Insurance Administration, Department
of Housing and Urban Development, under the National Flood Insurance Act of
1968, as amended (24 CFR § 1909.1) or Borrower has obtained the flood insurance
required by Section 3.01(a)(vi) hereof. The Premises either does not lie in a
100 year flood plain that has been identified by the Secretary of Housing and
Urban Development or any other Governmental Authority or, if it does, Borrower
has obtained the flood insurance required by Section 3.01(a)(vi) hereof.

-41-

 

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

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

(g)               
Use.  The existence of all Improvements, the present use and
operation thereof and the access of the Premises and the Improvements to all of
the utilities and other items referred to in paragraph (k) below are in
compliance in all material respects with all Leases affecting the Property and
all applicable Legal Requirements, including, without limitation, Environmental
Statutes, Development Laws and Use Requirements.  Borrower has not received any
notice from any Governmental Authority alleging any uncured violation relating
to the Property of any applicable Legal Requirements.

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

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

-42-

 

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

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

(l)                 
Mechanics' Liens.  The Property is free and clear of any
mechanics' liens or liens in the nature thereof, and no rights are outstanding
that under law could give rise to any such liens, any of which liens are or may
be prior to, or equal with, the lien of this Security Instrument, except those
which are insured against by the title insurance policy insuring the lien of
this Security Instrument.

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

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

(o)              
Space Leases.

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

                        (ii)               
Each Space Lease constitutes the legal, valid and binding obligation of
Borrower and, to the knowledge of Borrower, is enforceable against the tenant
thereof.  Except as disclosed to Lender in writing prior to the date hereof, to
the best of Borrower's knowledge, no default exists, or with the passing of
time or the giving of notice would exist, (A) under any Major Space Lease or
(B) under any other Space Leases which would, in the aggregate, have a Material
Adverse Effect.

-43-

 

                        (iii)               
No tenant under any Space Lease (except for the Master Lease) has, as of
the date hereof, paid Rent more than thirty (30) days in advance, and the Rents
under such Space Leases have not been waived, released, or otherwise discharged
or compromised.

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

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

                        (vi)               
Each tenant under a Space Lease (except the Master Lease) or such
tenant's authorized subtenant is currently occupying the space demised by such
Space Lease.

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

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

                         (ix)               
Except as disclosed in that certain tenant estoppel certificate for the
tenant known as "Pencor Mazur, LLC" delivered to Lender prior to the date
hereof, each tenant under each Space Lease is, to the best of Borrower's
knowledge, free from bankruptcy, reorganization or arrangement proceedings or a
general assignment for the benefit of creditors.

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

              (p)              
Property Agreements.

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

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

                         
(iii)               
No default exists or with the passing of time or the giving of notice or
both would exist under any Property Agreement which would, individually or in
the aggregate, have a Material Adverse Effect.

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

-44-

 

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

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

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

                      (viii)               
All work, if any, to be performed by Borrower under each of the Property
Agreements has been substantially performed, all contributions to be made by
Borrower to any party to such Property Agreements have been made, and all other
conditions to such party's obligations thereunder have been satisfied.

(q)              
Personal Property.  Borrower has delivered to Lender a true,
correct and complete schedule of all personal property, if any, owned by
Borrower and located upon the Property or used in connection with the use or
operation of the Property and Borrower represents that it has good and
marketable title to all such personal property, free and clear of any liens,
except for liens created under the Loan Documents and liens which describe the
equipment and other personal property owned by tenants.

(r)                
Leasing Brokerage and Management Fees.  Except as disclosed in
writing to Lender prior to the date hereof (all of which have been paid in full
or adequate reserves therefore have been established with Lender), as of the
date hereof, there are no brokerage fees or commissions payable by Borrower
with respect to the leasing of space at the Property and there are no
management fees payable by Borrower with respect to the management of the
Property.

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

-45-

 

(t)                
Loan to Value Ratio.  To the best knowledge of Borrower, based on
the substantial real estate expertise of Borrower, Borrower's familiarity with
the Property, and the Appraisal (which Borrower believes to contain a
reasonable assessment of the fair market value of the Property), the Loan
Amount does not exceed one hundred twenty-five percent (125%) of the fair
market value of the Property.  For the purposes of this clause (t), the term "fair
market value" shall be reduced by (i) the amount of any indebtedness secured by
a lien affecting the Property that is prior to, or on a parity with, the lien
of this Security Instrument, and (ii) the value of any property that is not "real
property" within the meaning of Treas. Reg. §§ 1.860G-2 and 1.856-3(d).

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

Section 2.06   
Removal of Lien.    (a)  Borrower shall, at its expense, maintain this Security
Instrument as a first lien on the Property and shall keep the Property free and
clear of all liens and encumbrances of any kind and nature other than the
Permitted Encumbrances.  Borrower shall, within twenty (20) days following the
filing thereof, promptly discharge of record, by bond or otherwise, any such liens and, promptly upon
request by Lender, shall deliver to Lender evidence reasonably satisfactory to
Lender of the discharge thereof. 

(b)              
Without limitation to the provisions of Section 2.06(a) hereof, Borrower
shall (i) pay, from time to time when the same shall become due, all claims and
demands of mechanics, materialmen, laborers, and others which, if unpaid, might
result in, or permit the creation of, a lien on the Property or any part
thereof, (ii) cause to be removed of record (by payment or posting of bond or
settlement or otherwise) any mechanics', materialmens', laborers' or other lien
on the Property, or any part thereof, or on the revenues, rents, issues, income
or profit arising therefrom, and (iii) in general, do or cause to be done,
without expense to Lender, everything reasonably necessary to preserve in full
the lien of this Security Instrument.  If Borrower fails to comply with the
requirements of this Section 2.06(b), then, upon five (5) Business Days' prior
notice to Borrower, Lender may, but shall not be obligated to, pay any such
lien, and Borrower shall, within ten (10) Business Days after Lender's demand
therefor, reimburse Lender for all sums so expended, together with interest
thereon at the Default Rate from the date advanced, all of which shall be
deemed part of the Debt.  Nothing contained herein shall be deemed a consent or
request of Lender, express or implied, by inference or otherwise, to the
performance of any alteration, repair or other work by any contractor,
subcontractor or laborer or the furnishing of any materials by any materialmen
in connection therewith.

-46-

 

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

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

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

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

(b)              
Borrower will furnish Lender (i) annually, within one hundred twenty (120)
days following the end of each Fiscal Year of Borrower and (ii) on a quarterly
basis, within thirty (30) days following the end of each fiscal quarter of
Borrower, with a complete copy of Borrower's financial statement consistently
applied covering (i) all of the financial affairs of Borrower and (ii) the
operation of the Property for such Fiscal Year or fiscal quarters, as
applicable, and containing a statement of revenues and expenses, a statement of
assets and liabilities and a statement of Borrower's equity.  Each annual
financial statement shall be prepared in accordance with GAAP (or such other
accounting basis reasonably acceptable to Lender) and certified by the chief
financial officer of Member.  Together with the financial statements required
to be furnished pursuant to this Section 2.09(b), Borrower shall furnish to
Lender (A) an Officer's Certificate certifying as of the date thereof (1) that
the financial statements accurately represent the results of operations and
financial condition of Borrower and the Property all in accordance with GAAP
(or such other accounting basis reasonably acceptable to Lender) consistently
applied, and (2) whether there exists a Default under the Note or any other
Loan Document executed and delivered by Borrower, and if such event or
circumstance exists, the nature thereof, the period of time it has existed and
the action then being taken to remedy such event or circumstance and (B)
together with the financial statements delivered pursuant to Section
2.09(b)(ii) above, a statement showing (1) Pro-Forma Net Operating Income for
the subsequent twelve (12) month period adjusted to reflect the Adjusted Net
Cash Flow (subject to verification by Lender in its reasonable discretion) and
(2) the calculation of the Debt Service Coverage.

(c)               
Borrower will furnish Lender monthly, within thirty (30) days following
the end of each month, with a true, complete and correct cash flow statement
with respect to the Property in the form attached hereto as Exhibit C and
made a part hereof, showing (i) all cash receipts of any kind whatsoever and
all cash payments and disbursements and (ii) year-to-date summaries of such
cash receipts, payments and disbursements, and (iii) during an O&M
Operative Period, Pro-Forma Net Operating Income for the subsequent twelve (12)
month period adjusted to reflect the Adjusted Net Cash Flow (subject to the
verification by Lender in its reasonable discretion) and a calculation of the
Debt Service Coverage, together with a certification of Manager stating that,
to the best of Manager's knowledge, such cash flow statement is true, complete
and correct and a list of all litigation and proceedings affecting Borrower or
the Property in which the amount involved is $250,000 or more, if not covered
by insurance (or $1,000,000 or more whether or not covered by insurance).

(d)              
Borrower will furnish Lender monthly, within thirty (30) days following
the end of each month, with a certification of Manager stating that all
Operating Expenses with respect to the Property which had accrued as of the
last day of the month preceding the delivery of the cash flow statement
referred to in clause (c) above have been fully paid or otherwise reserved for
by Manager (any such certification or any certification furnished by a Manager
pursuant to clause (c) above, a "Manager Certification").

-48-

 

(e)               
Borrower will furnish Lender annually, within thirty (30) days following
the end of each year and within thirty (30) days following receipt of a request
therefor, with a true, complete and correct rent roll for the Property,
including a list of which tenants are in default under their respective 
leases, dated as of the date of Lender's request, identifying each tenant, the
monthly rent and additional rent, if any, payable by such tenant, the
expiration date of such tenant's Lease, the security deposit, if any, held by
Borrower under the Lease, the space covered by the Lease, each tenant that has
filed a bankruptcy, insolvency, or reorganization proceeding since delivery of
the last such rent roll, and the arrearages for such tenant, if any, and such
rent roll shall be accompanied by an Officer's Certificate, dated as of the
date of the delivery of such rent roll, certifying that such rent roll is true,
correct and complete in all material respects as of its date.

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

(g)               
Borrower shall cause Manager to furnish to Lender, within thirty (30)
days following the end of each month, a schedule of tenant security deposits
showing any activity in the Security Deposit Account for such month, together
with a certification of Manager as to the balance in such Security Deposit
Account and that such tenant security deposits are being held in accordance
with all Legal Requirements.

(h)               
Borrower will furnish Lender annually, within one hundred twenty (120)
days after the end of each Fiscal Year, with a report setting forth (i) the Net
Operating Income for such Fiscal Year, (ii) the average occupancy rate of the
Property during such Fiscal Year, and (iii) the capital repairs, replacements
and improvements performed at the Property during such Fiscal Year and the
aggregate Recurring Replacement Expenditures made in connection therewith.

(i)                 
Intentionally Deleted.

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(j)                
During any O&M Operative Period or at any time during the
continuance of any Event of Default, Borrower shall submit to Lender for
Lender's written approval an Annual Budget not later than sixty (60) days prior
to the commencement of each Fiscal Year or, with respect to the Fiscal Year in
which the Closing Date occurs, within sixty (60) days of the Closing Date, in
form satisfactory to Lender setting forth in reasonable detail budgeted monthly
operating income and monthly operating capital and other expenses for the
Property.  Each Annual Budget shall contain, among other things, limitations on
management fees, third party service fees, and other expenses as Borrower may
reasonably determine.  Lender shall have the right to approve such Annual Budget
which approval shall not be unreasonably withheld, and in the event that Lender
objects to the proposed Annual Budget submitted by Borrower, Lender shall
advise Borrower of such objections within fifteen (15) days after receipt
thereof (and deliver to Borrower a reasonably detailed description of such
objections) and Borrower shall, within ten (10) days after receipt of notice of
any such objections, revise such Annual Budget and resubmit the same to
Lender.  Lender shall advise Borrower of any objections to such revised Annual
Budget within ten (10) days after receipt thereof (and deliver to Borrower a
reasonably detailed description of such objections) and Borrower shall revise
the same in accordance with the process described herein until Lender approves
an Annual Budget, provided, however, that if Lender shall not advise Borrower
of its objections to any proposed Annual Budget within the applicable time
period set forth in this Section, then such proposed Annual Budget shall be
deemed approved by Lender.  Until such time that Lender approves a proposed
Annual Budget, the most recently Approved Annual Budget shall apply; provided
that, such Approved Annual Budget shall be adjusted to reflect actual increases
in Basic Carrying Costs and utilities expenses.  In the event that Borrower
must incur an Extraordinary Expense, then Borrower shall promptly deliver to
Lender a reasonably detailed explanation of such proposed Extraordinary Expense
for Lender's approval, which approval may be granted or denied in Lender's sole
and absolute discretion. 

(k)              
In the event that Borrower fails to deliver any of the financial
statements, reports or other information required to be delivered to Lender
pursuant to this Section 2.09 on or prior to their due dates, if any such
failure shall continue for ten (10) days following notice thereof from Lender,
Borrower shall pay to Lender on each Payment Date for each month or portion
thereof that any such financial statement, report or other information remains
undelivered, an administrative fee in the amount of One Thousand Five Hundred Dollars
($1,500) multiplied by the number of undelivered statements, reports or other
items.  Borrower agrees that such administrative fee (i) is a fair and
reasonable fee necessary to compensate Lender for its additional administrative
costs and increased costs relating to Borrower's failure to deliver the
aforementioned statements, reports or other items as and when required
hereunder and (ii) is not a penalty.

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

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

Section
2.11         
Updates of Representations.  Borrower shall deliver to Lender within ten (10) days of
the request of Lender an Officer's Certificate updating all of the
representations and warranties contained in this Security Instrument and the
other Loan Documents and certifying that all of the representations and
warranties contained in this Security Instrument and the other Loan Documents,
as updated pursuant to such Officer's Certificate, are true, accurate and
complete as of the date of such Officer's Certificate.

ARTICLE
III

INSURANCE AND CASUALTY RESTORATION

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

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(a)               
(i)         Insurance against loss or damage by fire, casualty and other
hazards included in an "all-risk" extended coverage endorsement or its
equivalent, with such endorsements as Lender may from time to time reasonably
require and which are customarily required by Institutional Lenders of similar
properties similarly situated, including, without limitation, if the Property
constitutes a legal non-conforming use, an ordinance of law coverage
endorsement which contains "Demolition Cost", "Loss Due to Operation of Law"
and "Increased Cost of Construction" coverages, covering the Property in an
amount not less than the greater of (A) 100% of the insurable replacement value
of the Property (exclusive of the Premises and footings and foundations) in the
case of Loss Due to Operation of Law and $20,000,000 combined limit for
Demolition Costs and Increased Cost of Construction and (B) such other amount
as is necessary to prevent any reduction in such policy by reason of and to
prevent Borrower, Lender or any other insured thereunder from being deemed to
be a co-insurer.  Not less frequently than once every three (3) years,
Borrower, at its option, shall either (A) have the Appraisal updated or obtain
a new appraisal of the Property, (B) have a valuation of the Property made by
or for its insurance carrier conducted by an appraiser experienced in valuing
properties of similar type to that of the Property which are in the
geographical area in which the Property is located or (C) provide such other
evidence as will, in Lender's sole judgment, enable Lender to determine whether
there shall have been an increase in the insurable value of the Property and
Borrower shall deliver such updated Appraisal, new appraisal, insurance
valuation or other evidence acceptable to Lender, as the case may be, and, if
such updated Appraisal, new appraisal, insurance valuation, or other evidence
acceptable to Lender reflects an increase in the insurable value of the
Property, the amount of insurance required hereunder shall be increased
accordingly and Borrower shall deliver evidence satisfactory to Lender that
such policy has been so increased.

                                                
(ii)               
Commercial comprehensive general liability insurance against claims for
personal and bodily injury and/or death to one or more persons or property
damage, occurring on, in or about the Property (including the adjoining
streets, sidewalks and passageways therein) in such amounts as Lender may from
time to time reasonably require (but in no event shall Lender's requirements be
increased more frequently than once during each twelve (12) month period) and
which are customarily required by Institutional Lenders for similar properties
similarly situated, but not less than $1,000,000.00 per occurrence and
$2,000,000 general aggregate and, in addition thereto, not less than $25,000,000
excess and/or umbrella liability insurance shall be maintained for any and all
claims. 

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

                                              
(iv)               
War risk insurance when such insurance is obtainable from the United
States of America or any agency or instrumentality thereof at reasonable rates
(for the maximum amount of insurance obtainable) and if requested by Lender,
and such insurance is then customarily required by Institutional Lenders of
similar properties similarly situated.

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

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(vi)               
Flood insurance in an amount equal to $20,000,000 or the maximum amount
available, whichever is less, if the Improvements are located in an area
designated by the Secretary of Housing and Urban Development as being "an area
of special flood hazard" under the National Flood Insurance Program (i.e.,
having a one percent or greater chance of flooding), and if flood insurance is
available under the National Flood Insurance Act.

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

                                                
(viii)               
Intentionally Omitted.

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

                                               (x)               
Such other insurance as may from time to time be required by Lender and
which is then customarily required by Institutional Lenders for similar
properties similarly situated, against other insurable hazards, including, but
not limited to, malicious mischief, vandalism, acts of terrorism, windstorm
and/or earthquake, (not to exceed $20,000,000), due regard to be given to the
size and type of the Premises, Improvements, Fixtures and Equipment and their
location, construction and use.  Additionally, Borrower shall carry such
insurance coverage as Lender may from time to time require if the failure to
carry such insurance may result in a downgrade, qualification or withdrawal of
any class of securities issued in connection with a Securitization or, if the
Loan is not yet part of a Securitization, would result in an increase in the
subordination levels of any class of securities anticipated to be issued in
connection with a proposed Securitization.

(b)            Borrower shall cause any Manager
of the Property to maintain fidelity insurance in an amount equal to or greater
than the Operating Income of the Property for the six (6) month period
immediately preceding the date on which the premium for such insurance is due
and payable or such lesser amount as Lender shall approve. 

-53-

 

Section 3.02    Policy Terms.  (a)  All insurance required by this Article III shall be in
the form (other than with respect to earthquake and windstorm insurance and Sections
3.01(a)(vi) and (vii) above when such insurance is placed with a governmental
agency or instrumentality on such agency's forms) and amount and with
deductibles as, from time to time, shall be reasonably acceptable to Lender
(provided, however, that Lender shall permit an insurance deductible of $50,000
for all policies other than earthquake, flood and windstorm insurance, which
may be a percentage of the value of the Property not to exceed 5%  and
crime/fidelity coverage which may have a deductible of $250,000) under valid
and enforceable policies issued by financially responsible insurers authorized
to do business in the State where the Property is located, with a general
policyholder's service rating of not less than "A-" and a financial rating of
not less than X as rated in the most currently available Best's Insurance
Reports (or the equivalent, if such rating system shall hereafter be altered or
replaced) and shall have a "S-" paying ability rating and/or financial strength
rating, as applicable, of not less than "A-" or better by A.M. Best (or its
equivalent from a Rating Agency, one of which after a Securitization in which
Standard & Poor's rates any securities issued in connection with such
Securitization, shall be Standard & Poor's).  Originals or certified copies
of all insurance policies shall be delivered to and held by Lender.  All such
policies (except policies for worker's compensation) shall name Lender as an
additional named insured, shall provide for loss payable to Lender and shall
contain (or have attached):  (i) standard "non-contributory mortgagee"
endorsement or its equivalent relating, inter alia, to recovery
by Lender notwithstanding the negligent or willful acts or omissions of
Borrower; (ii) a waiver of subrogation endorsement as to Lender; (iii) an
endorsement indicating that neither Lender nor Borrower shall be or be deemed
to be a co-insurer with respect to any casualty risk insured by such policies
and shall provide for a deductible per loss of an amount not more than that
which is customarily maintained by owners of similar properties similarly
situated, and (iv) a provision that such policies shall not be canceled,
terminated, denied renewal or amended, including, without limitation, any amendment reducing the scope or
limits of coverage, without at least thirty (30) days' prior written notice to
Lender in each instance.  Not less than thirty (30) days prior to the
expiration dates of the insurance policies obtained pursuant to this Security
Instrument, originals or certified copies of renewals of such policies (or
certificates evidencing such renewals) bearing notations evidencing the payment
of premiums or accompanied by other reasonable evidence of such payment (which
premiums shall not be paid by Borrower through or by any financing arrangement
which would entitle an insurer to terminate a policy) shall be delivered by
Borrower to Lender.  Borrower shall not carry separate insurance, concurrent in
kind or form or contributing in the event of loss, with any insurance required
under this Article III.

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

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

-54-

 

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

Section
3.02         
Assignment of Policies.  (a)  Borrower hereby assigns to Lender the proceeds of all
insurance (other than worker's compensation and liability insurance) obtained
pursuant to this Security Instrument, all of which proceeds shall be payable to
Lender as collateral and further security for the payment of the Debt and the
performance of Borrower's obligations hereunder and under the other Loan
Documents, and Borrower hereby authorizes and directs the issuer of any such insurance to make payment of
such proceeds directly to Lender.  Except as otherwise expressly provided in
Section 3.04 or elsewhere in this Article III, Lender shall have the option, in
its discretion, and without regard to the adequacy of its security, to apply
all or any part of the proceeds it may receive pursuant to this Article in such
manner as Lender may elect to any one or more of the following:  (i) the
payment of the Debt, whether or not then due, in any proportion or priority as
Lender, in its discretion, may elect, (ii) the repair or restoration of the
Property, (iii) the cure of any Default or (iv) the reimbursement of the costs
and expenses of Lender incurred pursuant to the terms hereof in connection with
the recovery of the Insurance Proceeds.  Nothing herein contained shall be
deemed to excuse Borrower from repairing or maintaining the Property as
provided in this Security Instrument or restoring all damage or destruction to
the Property, regardless of the sufficiency of the Insurance Proceeds, and the
application or release by Lender of any Insurance Proceeds shall not cure or
waive any Default or notice of Default.

-55-

 

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

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

                                                
(ii)               
Borrower shall not adjust, compromise or settle any claim for Insurance
Proceeds without the prior written consent of Lender, which shall not be
unreasonably withheld, conditioned or delayed; provided, however, that, except
during the continuance of an Event of Default, Lender's consent shall not be
required with respect to the adjustment, compromising or settlement of any
claim for Insurance Proceeds in an amount less than $5,000,000.00. 

                                              
(iii)               
Subject to Section 3.04(a)(iv), Lender shall apply any Insurance
Proceeds which it may receive towards the Work in accordance with Section
3.04(b) and the other applicable sections of this Article III; provided,
however, if the amount of Insurance Proceeds is less than $5,000,000.00, the
Insurance Proceeds shall be promptly delivered to Borrower.

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

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

                                              
(vi)               
In the event Lender elects or is obligated hereunder to allow Insurance
Proceeds to be used for the Work, Borrower hereby agrees to use reasonable
diligence to complete such Work within twelve (12) months of the damage to or
destruction of the Property.

(b)              
If any Condemnation Proceeds in accordance with Section 6.01(a), or any
Insurance Proceeds in accordance with Section 3.04(a), are to be applied to the
repair, restoration or rebuilding of the Property, then such proceeds shall be
deposited into a segregated interest-bearing bank account at the Bank, which
shall be an Eligible Account, held by Lender and shall be paid out from time to
time to Borrower as the Work progresses (less any cost to Lender of recovering and
paying out such proceeds, including, without limitation, reasonable attorneys'
fees and costs allocable to inspecting the Work and the plans and
specifications therefor) subject to Section 5.17 hereof and to all of the
following conditions:

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

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

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

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

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

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

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(vii)               
Until such time as the Work has been substantially completed, Lender
shall not be obligated to disburse up to ten percent (10%) of the cost of the
Work (the "Retention Amount") to Borrower.  Upon substantial completion
of the Work, Borrower shall send notice thereof to Lender and, subject to the
conditions of Section 3.04(b)(i)-(iv), Lender shall disburse one-half of the
Retention Amount to Borrower; provided, however, that the remaining one-half of
the Retention Amount shall be disbursed to Borrower when Lender shall have
received copies of any and all final certificates of occupancy or other
certificates, licenses and permits required for the ownership, occupancy and
operation of the Property in accordance with all Legal Requirements.  Borrower
hereby covenants to diligently seek to obtain any such certificates, licenses
and permits.

                                           
(viii)               
Upon failure on the part of Borrower promptly to commence the Work or to
proceed diligently and continuously to completion of the Work, which failure
shall continue after notice for thirty (30) days, Lender may apply any
Insurance Proceeds or Condemnation Proceeds it then or thereafter holds to the
payment of the Debt in accordance with the provisions of the Note; provided,
however, that Lender shall be entitled to apply at any time all or any portion
of the Insurance Proceeds or Condemnation Proceeds it then holds to the extent
necessary to cure any Event of Default under this Security Instrument, the Note
or any other Loan Document.

(c)               
If Borrower (i) within ninety (90) days after the occurrence of any
damage to the Property or any portion thereof (or such shorter period as may be
required under any Major Space Lease) shall fail to submit to Lender for
approval plans and specifications (if required pursuant to Section 3.04(b)(ii)
hereof) for the Work (approved by the Architect and by all Governmental
Authorities whose approval is required), (ii) after any such plans and
specifications are approved by all Governmental Authorities, the Architect and
Lender, shall fail to promptly commence such Work or (iii) shall fail to
diligently prosecute such Work to completion, then, in addition to all other
rights available hereunder, at law or in equity, Lender, or any receiver of the
Property or any portion thereof, upon fifteen (15) days' prior notice to
Borrower (except in the event of emergency in which case no notice shall be
required), may (but shall have no obligation to) perform or cause to be
performed such Work, and may take such other steps as it reasonably deems
advisable.  Borrower hereby waives, for Borrower, any claim, other than for
gross negligence or willful misconduct, against Lender and any receiver arising
out of any act or omission of Lender or such receiver pursuant hereto, and
Lender may apply all or any portion of the Insurance Proceeds (without the need
to fulfill any other requirements of this Section 3.04) to reimburse Lender and
such receiver, for all costs not reimbursed to Lender or such receiver upon
demand together with interest thereon at the Default Rate from the date such
amounts are advanced until the same are paid to Lender or the receiver.

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

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

Section
3.06         
Event of Default During Restoration.  Notwithstanding anything to the contrary contained in this
Security Instrument including, without limitation, the provisions of this
Article 3, if, at the time of any casualty affecting the Property or any part
thereof, or at any time during any Work, or at any time that Lender is holding
or is entitled to receive any Insurance Proceeds pursuant to this Security
Instrument, a Default exists and is continuing (whether or not it constitutes
an Event of Default), Lender shall then have no obligation to make such
proceeds available for Work and Lender shall, upon the maturation of such
Default into an Event of Default, have the right and option, to be exercised in
its sole and absolute discretion and election, with respect to the Insurance
Proceeds, either to retain and apply such proceeds in reimbursement for the
actual costs, fees and expenses incurred by Lender in accordance with the terms
hereof in connection with the adjustment of the loss and any balance toward
payment of the Debt in such priority and proportions as Lender, in its sole
discretion, shall deem proper, or towards the Work, upon such terms and
conditions as Lender shall determine, or to cure such Default, or to any one or
more of the foregoing as Lender, in its sole and absolute discretion, may
determine.  If Lender shall receive and retain such Insurance Proceeds, the
lien of this Security Instrument shall be reduced only by the amount thereof
received, after reimbursement to Lender of expenses of collection, and actually
applied by Lender in reduction of the principal sum payable under the Note in
accordance with the Note.

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

-60-

 

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

ARTICLE
IV

IMPOSITIONS

Section
4.01         
Payment of Impositions, Utilities and Taxes, etc.  (a)  Borrower shall pay or cause to be paid all Impositions
at least five (5) days prior to the date upon which any fine, penalty, interest
or cost for nonpayment is imposed, and furnish to Lender, upon request,
receipted bills of the appropriate taxing authority or other documentation
reasonably satisfactory to
Lender evidencing the payment thereof.  If Borrower shall fail to pay any
Imposition in accordance with this Section and is not contesting or causing a
contesting of such Imposition in accordance with Section 4.04 hereof, or if
there are insufficient funds in the Basic Carrying Costs  Escrow Account to pay
any Imposition, Lender shall have the right, but shall not be obligated, to pay
that Imposition, and Borrower shall repay to Lender, on demand, any amount paid
by Lender, with interest thereon at the Default Rate from the date of the
advance thereof to the date of repayment, and such amount shall constitute a
portion of the Debt secured by this Security Instrument.

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

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

-61-

 

Section 4.02   
Deduction from Value.  In the event of the passage after the date of this Security
Instrument of any Legal Requirement deducting from the value of the Property
for the purpose of taxation, any lien thereon or changing in any way the Legal
Requirements now in force for the taxation of this Security Instrument and/or
the Debt for federal, state or local purposes, or the manner of the operation
of any such taxes so as to adversely affect the interest of Lender, or impose
any tax or other charge on any Loan Document, then Borrower will pay such tax,
with interest and penalties thereon, if any, within the statutory period.  In
the event the payment of such tax or interest and penalties by Borrower would
be unlawful, or taxable to Lender or unenforceable or provide the basis for a
defense of usury, then in any such event, Lender shall have the option, by
written notice of not less than thirty (30) days, to declare the Debt
immediately due and payable, with no prepayment fee or charge of any kind.

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

Section 4.4    
Right to Contest.  Borrower shall have the right, after prior notice to
Lender, at its sole expense, to contest by appropriate legal proceedings
diligently conducted in good faith, without cost or expense to Lender or any of
its agents, employees, officers or directors, the validity, amount or
application of any Imposition or any charge described in Section 4.01(b),
provided that (a) no Default or Event of Default shall exist during such
proceedings and such contest shall not (unless Borrower shall comply with
clause (d) of this Section 4.04) subject the Property or any portion thereof to
any lien or affect the priority of the lien of this Security Instrument, (b)
failure to pay such Imposition or charge will not subject Lender or any of its
agents, employees, officers or directors to any civil or criminal liability,
(c) the contest suspends enforcement of the Imposition or charge (unless
Borrower first pays the Imposition or charge), (d) prior to and during such
contest, Borrower shall furnish to Lender security satisfactory to Lender, in
its reasonable discretion, against loss or injury by reason of such contest or
the non-payment of such Imposition or charge (and if such security is cash,
Lender may deposit the same in an interest-bearing account and interest accrued
thereon, if any, shall be deemed to constitute a part of such security for
purposes of this Security Instrument, but Lender (i) makes no representation or
warranty as to the rate or amount of interest, if any, which may accrue thereon
and shall have no liability in connection therewith and (ii) shall not be
deemed to be a trustee or fiduciary with respect to its receipt of any such
security and any such security may be commingled with other monies of Lender),
(e) such contest shall not affect the ownership, use or occupancy of the
Property, (f) the Property or any part thereof or any interest therein shall
not be in any danger of being sold, forfeited or lost by reason of such contest
by Borrower, (g) Borrower has given Lender notice of the commencement of such
contest and upon request by Lender, from time to time, notice of the status of
such contest by Borrower and/or confirmation of the continuing satisfaction of
clauses (a) through (f) of this Section 4.04, and (h) upon a final
determination of such contest, Borrower shall promptly comply with the
requirements thereof.  Upon completion of any contest, Borrower shall
immediately pay the amount due, if any, and deliver to Lender proof of the
completion of the contest and payment of the amount due, if any, following
which Lender shall return the security, if any, deposited with Lender pursuant
to clause (d) of this Section 4.04.  Borrower shall not pay any Imposition in
installments unless permitted by applicable Legal Requirements, and shall, upon
the request of Lender, deliver copies of all notices and bills relating to any
Imposition or other charge covered by this Article IV to Lender.

-62-

 

Section
4.05   
No Credits on Account of the Debt.  Borrower will not claim or demand or be entitled to any
credit or credits on account of the Debt for any part of the Impositions
assessed against the Property or any part thereof and no deduction shall
otherwise be made or claimed from the taxable value of the Property, or any
part thereof, by reason of this Security Instrument or the Debt.  In the event
such claim, credit or deduction shall be required by Legal Requirements, Lender
shall have the option, by written notice of not less than thirty (30) days, to
declare the Debt immediately due and payable, and Borrower hereby agrees to pay
such amounts not later than thirty (30) days after such notice.

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

ARTICLE
V

CENTRAL CASH MANAGEMENT

Section 5.01         
Cash Flow.  

(a)               
Borrower has entered into that certain Central Account Agreement dated
as of even date herewith by and among Borrower, Mezzanine Borrower, Bank,
Lender and Mezzanine Lender (the "Central Account Agreement").  From and
after the date hereof, all Rents (which for the purposes of this Section 5.01
shall not include security deposits from tenants under Leases held by Borrower
and not applied towards Rent), shall be deposited by tenants under Leases into
the Central Account maintained by Bank.  Prior to the occurrence of an Event of
Default, amounts on deposit in the Central Account shall be regularly
transferred by Bank to the Borrower's Operating Account, as more specifically
described in the Central Account Agreement.  From and after Bank's receipt of
written notice of an Event of Default or the existence of an O&M Operative
Period from Lender (a "Sweep Termination Notice") (which notice may be
delivered by Lender in its sole and absolute discretion following the
occurrence of an Event of Default, a copy of which shall be simultaneously sent
to Mezzanine Lender and Borrower), or receipt of a Mezzanine Sweep Termination
Notice from Mezzanine Lender, Bank shall cease making any transfers to Borrower
from the Central Account and shall thereafter, transfer amounts on deposit in
the Central Account to the Sub-Accounts pursuant to the disbursement
instructions of Lender (consistent with the requirements of this Article V), as
more specifically described in the Central Account Agreement.  Funds deposited
in the Sub-Accounts shall be applied to pursuant to Section 5.05 of this
Security Agreement.  Upon termination of the O&M Operative Period, provided
that no Event of Default then exists and provided further that no Mezzanine
Sweep Termination Notice has been sent and not rescinded, Lender shall send
Bank notice that amounts on deposit in the Central Account (including, without
limitation, the balance in any Sub Account) shall, again, be regularly
transferred by Bank to the Borrower's Operating Account, as more specifically
described in the Central Account Agreement.  

-63-

 

(b)              
On or before each Payment Date, Borrower shall pay or cause to be paid
to Lender (i) the Basic Carrying Costs Monthly Installment to be deposited into
the Basic Carrying Costs Escrow Account, (ii) the Required Debt Service Payment
for application pursuant to the terms of the Note, and (iii) the Recurring
Replacement Reserve Monthly Installment to be deposited into the Recurring
Replacement Reserve Escrow Account.

(c)               
Borrower hereby acknowledges and agrees that, from and after and during
the continuance of a Trigger Event, the Rents (which for the purposes of this
Section 5.01 shall not include security deposits from tenants under Leases held
by Borrower and not applied towards Rent) derived from the Property, shall be
utilized (a) to fund the Basic Carrying Costs Sub-Account, (b) to pay all
amounts to become due and payable under the Note by funding the Debt Service
Payment Sub-Account, (c) to fund the Recurring Replacement Reserve Sub-Account,
(d) to fund the Operation and Maintenance Expense Sub-Account to the extent
required and (e) to fund the Financial Covenant Reserve Escrow Account. 
Borrower shall cause Manager to collect all security deposits from tenants under
valid Leases, which shall be held by Manager, as agent for Borrower, in
accordance with applicable law and in a segregated demand deposit bank account
at PNC Bank, National Association or such other commercial or savings bank or
banks as may be reasonably satisfactory to Lender (the "Security Deposit
Account").  Borrower shall notify Lender of any security deposits held as
letters of credit and, upon Lender's request after an Event of Default, such
letters of credit shall be promptly delivered to Lender.  Borrower shall have
no right to withdraw funds from the Security Deposit Account; provided
that, prior to the occurrence of an Event of Default, Borrower may withdraw
funds from the Security Deposit Account to refund or apply security deposits as
permitted by the Leases or by applicable Legal Requirements.  After the
occurrence of an Event of Default, unless the same has been waived by Lender or
cured by Borrower, and such cure accepted by Lender, all withdrawals from the
Security Deposit Account must be approved by Lender.  Borrower shall cause all
Rent which is due and payable to Borrower pursuant to the terms of the Leases
(other than security deposits under valid Leases which are held in the Security
Deposit Account) to be paid through automated clearing house funds ("ACH")
or by Federal wire directly to the Central Account, or by check sent directly
to the lockbox associated with the Central Account.  Borrower shall give each
tenant under a Lease an irrevocable direction in the form of Exhibit E
attached hereto and made a part hereof to deliver all rent payments made by
tenants and other payments constituting Rent directly to the Central Account
and shall deliver copies of such letters to Lender, together with an Officer's
Certificate certifying that such letters were delivered to each tenant under
the Leases on or prior to the Closing Date.  Notwithstanding the foregoing, if
any Rent is received by Borrower or Manager, then (a) such amounts shall be
held in trust for the benefit, and as the property, of Lender, (b) such amounts
shall not be commingled with any other funds or property of Borrower or Manager
and (c) Borrower or Manager shall deposit such amounts in the Central Account
within two (2) Business Days of receipt.  Upon execution of any Space Lease
after the Closing Date, Borrower shall deliver to Lender a copy of the
irrevocable direction letter referred to above, the receipt of which has been
acknowledged by the tenant under such Space Lease.  Lender may, if required in
connection with a Securitization or for other reasonable cause, in Lender's
reasonable discretion, elect to change the financial institution in which the
Central Account shall be maintained; however, Lender shall give Borrower
not fewer than ten (10) Business Days' prior notice of such change.  All fees
and charges of the bank(s) in which the Central Account is located shall be
paid by Borrower.  Lender will not unreasonably withhold its consent to a
request by Borrower (which request may not be made more than once in any twelve
(12) month period) to change the financial institution in which the Central
Account shall be maintained to a new financial institution acceptable to
Lender; provided, however, Borrower shall give Lender not fewer
than fifteen (15) Business Days' prior notice of such change and Borrower shall
pay all costs and expenses associated with such change (including, without
limitation, all reasonable legal fees).

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Section
5.02         
Establishment of Accounts.  Lender has established the
Escrow Accounts and the Central Account in the name of Lender as secured
party.  The Escrow Accounts and the Central Account shall be under the sole
dominion and control of Lender and funds held therein shall not constitute
trust funds.  Borrower hereby irrevocably directs and authorizes Lender to withdraw
funds from the Central Account (from and after the occurrence of a Trigger
Event) and the Escrow Accounts, all in accordance with the terms and conditions
of this Security Instrument.  Borrower shall have no right of withdrawal in
respect of the Central Account or the Escrow Accounts.  Each transfer of funds
to be made hereunder shall be made only to the extent that funds are on deposit
in the Central Account or the affected Sub-Account or Escrow Account, and
Lender shall have no responsibility to make additional funds available in the
event that funds on deposit are insufficient.  The Central Account shall
contain the Basic Carrying Costs Sub-Account, the Debt Service Payment
Sub-Account, the Recurring Replacement Reserve Sub-Account, the Operation and Maintenance
Expense Sub-Account and the Financial Covenant Sub-Account, each of which
accounts shall be Eligible Accounts or book-entry sub-accounts of an Eligible
Account (each a "Sub-Account" and collectively, the "Sub-Accounts")
to which certain funds shall be allocated and from which disbursements shall be
made pursuant to the terms of this Security Instrument, provided, however, that
the Sub-Accounts shall only be required after the occurrence and during the
continuance of any Trigger Event.  Sums held in the Escrow Accounts may be
commingled with other monies held by Lender as long as the funds therein and
the returns thereon are reflected in the Lender's records.

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

Section
5.04     
Servicing Fees.  At the option of Lender, the Loan may be serviced by a
servicer (the "Servicer") selected by Lender and Lender may delegate all
or any portion of its responsibilities under this Security Instrument to the
Servicer.  Borrower shall pay all reasonable servicing fees of Servicer, if
any, charged in connection with any disbursement of funds from the Escrow
Accounts pursuant to the Servicer's then standard conditions and rates.

Section
5.05         
Monthly Funding of Sub-Accounts and Escrow Accounts.  (a) From and after the occurrence a Trigger Event (until
such time as Lender has determined that such Trigger Event no longer exists),
on or before each Payment Date, Borrower shall pay, or cause to be paid to the
Central Account the Basic Carrying Costs Monthly Installment, the Required Debt
Service Payment, the Recurring Replacement Reserve Monthly Installment and all
sums required to be deposited in the Operation and Maintenance Expense
Sub-Account pursuant to clauses (i) through (vii) of this Section 5.05(a) and
all funds transferred or deposited into the Central Account shall be allocated
among the Sub-Accounts as follows and in the following priority:  

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

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

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

                                              
(iv)               
fourth, but only during an O&M Operative Period, to the Operation
and Maintenance Expense Sub-Account until an amount equal to the Cash Expenses,
other than management fees payable to Affiliates of Borrower, for such Current
Month has been allocated to the Operation and Maintenance Expense Sub-Account pursuant
to the related Approved Annual Budget;

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

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

                                            
(vii)               
seventh, but only during an O&M Operative Period, the balance, if
any, to the Financial Covenant Reserve Sub-Account.

From and after the occurrence of a Trigger Event, provided
that no Event of Default then exists, Lender agrees that in each Current Month
any amounts deposited into or remaining in the Central Account after the
Sub-Accounts have been funded in accordance with clauses (i) through (vii)
above with respect to the Current Month and any periods prior thereto, shall,
at Lender's direction, be disbursed to either (i) in the case that any portion
of the Mezzanine Loan remains outstanding and a Mezzanine Sweep Termination
Notice has been sent, to such account as may be designated by Mezzanine Lender,
or (ii) in the case that no portion of the Mezzanine Loan remains outstanding
or if no Mezzanine Sweep Termination Notice has been sent, to Borrower's
Operating Account (which Borrower shall maintain as the primary operating
account of the Property), on the Payment Date in such Current Month.  The
balance of the funds distributed to, or withdrawn by, Borrower after payment of
all Operating Expenses by or on behalf of Borrower may be retained by
Borrower.  After the occurrence, and during the continuance, of an Event of
Default, no funds held in the Central Account shall be distributed to, or
withdrawn by, Borrower, and Lender shall have the right to apply all or any
portion of the funds held in the Central Account or any Sub-Account or any
Escrow Account to the Debt in Lender's sole discretion.

(b)        From and after the occurrence and
during the continuance of a Trigger Event, on each Payment Date, (i) sums held
in the Basic Carrying Costs Sub-Account shall be transferred to the Basic
Carrying Costs Escrow Account, (ii) sums held in the Debt Service Payment
Sub-Account, together with any amounts deposited into the Central Account that
are either (x) Loss Proceeds that Lender has elected to apply to reduce the
Debt in accordance with the terms of Article III hereof or (y) excess Loss
Proceeds remaining after the completion of any restoration required hereunder
which are permitted to be retained by Lender pursuant to the terms of this
Security Instrument, shall be transferred to Lender to be applied towards the
Required Debt Service Payment, (iii) sums held in the Recurring Replacement
Reserve Sub-Account shall be transferred to the Recurring Replacement Escrow
Account, (iv) sums held in Operation and Maintenance Sub-Account shall be
transferred to the Operation and Maintenance Escrow Account and (v) sums held
in Financial Covenant Reserve Sub-Account shall be transferred to the Financial
Covenant Reserve Escrow Account.

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Section 5.06   
Payment of Basic Carrying Costs.  Borrower hereby agrees to pay all Basic Carrying Costs
(without regard to the amount of money in the Basic Carry Costs Sub-Account or
the Basic Carrying Costs Escrow Account).  At least ten (10) Business Days
prior to the due date of any Basic Carrying Costs, and not more frequently than
once each month, Borrower may notify Lender in writing and request that Lender
pay such Basic Carrying Costs on behalf of Borrower on or prior to the due date
thereof, and, provided that no Event of Default has occurred (unless the same
has been waived by Lender or cured by Borrower, and such cure accepted by
Lender) Lender shall make such payments to the extent of funds available in the
Basic Carrying Costs Escrow Account and Financial Covenant Reserve Escrow
Account before same shall be delinquent.  Together with each such request, Borrower
shall furnish Lender with bills and all other documents necessary, as
reasonably determined by Lender, for the payment of the Basic Carrying Costs
which are the subject of such request. Borrower's obligation to pay (or cause
Lender to pay) Basic Carrying Costs pursuant to this Security Instrument shall
include, to the extent permitted by applicable law, Impositions resulting from
future changes in law which impose upon Lender an obligation to pay any
property taxes or other Impositions or which otherwise adversely affect
Lender's interests, provided, however, that nothing in this Section 5.05 shall
reduce or affect Borrower's obligations to make the payments required under
Section 5.01(b).

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

Notwithstanding anything to the contrary set forth in this
Security Instrument, Lender shall initially not require Borrower to make
monthly deposits into the Basic Carrying Costs Escrow Account for insurance
premiums, and Lender shall not make any disbursements from the Basic Carrying
Costs Escrow Account for the payment of insurance premiums, provided that: (i)
no Event of Default has occurred and (ii) at least thirty (30) days prior to
the due date thereof, Borrower delivers to Lender evidence that insurance
premiums relating to the Property have been paid for the corresponding period. 
Upon a violation of any of the requirements in the preceding sentence, Lender,
at its option, may thereafter require that Borrower make deposits into the
Basic Carrying Costs Escrow Account as otherwise contemplated in this Security
Agreement, after which this paragraph shall have no further force or effect.

Section 5.07    
Intentionally Omitted. 

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Section 5.08    Recurring Replacement Reserve
Sub-Account.  Borrower hereby agrees to pay all Recurring Replacement
Expenditures with respect to the Property (without regard to the amount of
money then available in the Recurring Replacement Reserve Sub-Account or the Recurring
Replacement Reserve Escrow Account).  Provided that Lender has received written
notice from Borrower at least five (5) Business Days prior to the due date of
any payment, or requested reimbursement, relating to Recurring Replacement
Expenditures and not more frequently than once each month and for not less than
$50,000.00, and further, provided that no Event of Default has occurred (unless
the same has been waived by Lender or cured by Borrower, and such cure accepted
by Lender), that there are sufficient funds available in the Recurring
Replacement Reserve Escrow Account and Borrower shall have theretofore
furnished Lender with lien waivers, copies of bills, invoices and other
reasonable documentation as may be required by Lender to establish that the
Recurring Replacement Expenditures which are the subject of such request
represent amounts due for completed or partially completed capital work and
improvements performed at the Property, Lender shall make such payments out of
the Recurring Replacement Reserve Escrow Account. 

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

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

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Section 5.10    Rollover Reserve Escrow Account. 
Contemporaneously with the execution hereof, Borrower has
established with Lender a reserve in the amount of $12,748,562.00 (the "Rollover
Reserve Escrow Account").  In addition, contemporaneously with the
execution hereof, Borrower has delivered to Lender a Letter of Credit in the
face amount of $4,300,000.00 and a Letter of Credit in the face amount of
$2,900,000.00 (collectively, the "Rollover Reserve Letter of Credit"). 
Borrower shall, on or before the Payment Date occurring in June, 2007, provide
Lender with (a) funds equal to the outstanding amount of the Rollover Reserve
Letter of Credit, (b) (i) a replacement Letter of Credit equal to a portion of
the outstanding Rollover Reserve Letter of Credit satisfactory to Lender and
(ii) funds equal to a portion of the outstanding Rollover Reserve Letter of
Credit satisfactory to Lender, the aggregate amount of such replacement Letter
of Credit and such funds being equal to the outstanding amount of the Rollover
Reserve Letter of Credit or (c) a replacement Letter of Credit or replacement
Letters of Credit, satisfactory to Lender, in the outstanding amount of the
Rollover Reserve Letter of Credit, at which time the Rollover Reserve Letter of
Credit shall be returned to Borrower.  If Borrower fails to provide such funds
and/or replacement Letter of Credit, as applicable, on or before such date,
Lender shall draw the full amount of the Rollover Reserve Letter of Credit.  In
each case, such funds shall be deposited by Lender into the Rollover Reserve
Escrow Account.  Borrower shall also pay to Lender for transfer into the
Rollover Reserve all payments received from tenants in connection with the
early termination or cancellation of any Leases, including fees, penalties and
commissions unless such space has been relet on arms length market terms.  If
Lender determines in its reasonable judgment that the funds in the Rollover
Reserve will be insufficient to pay (or in excess of) the amounts due or to
become due for Approved Leasing Expenses (as hereinafter defined), Lender may
increase (or decrease) the monthly contribution required to be made by Borrower
to the Rollover Reserve.  Provided that no Event of Default has occurred and is
continuing, Lender shall disburse funds held in the Rollover Reserve to
Borrower, within five (5) business days after the delivery by Borrower to
Lender of a request therefor (but not more often than once per month), in
increments of at least $50,000, provided (i) such disbursement is for an
Approved Leasing Expense; (ii) Lender shall have (if it desires) verified (by
an inspection conducted at Borrower's expense) performance of any construction
work associated with such Approved Leasing Expense; and (iii) the request for
disbursement is accompanied by (A) an officer's certificate from an authorized
officer of the Borrower certifying (v) that such funds will be used only to pay
(or reimburse Borrower for) Approved Leasing Expenses and a description
thereof, (w) that all outstanding trade payables (other than those to be paid
from the requested disbursement) have been paid in full, (x) that the same has
not been the subject of a previous disbursement, (y) that all previous
disbursements have been used only to pay (or reimburse Borrower for) the
previously identified Approved Leasing Expenses and (z) that any construction
work associated with such Approved Leasing Expenses has been completed in a
good and workmanlike manner and in accordance with all applicable legal
requirements, (B) reasonably detailed supporting documentation as to the
amount, necessity and purpose therefor, (C) copies of appropriate lien waivers
or other evidence of payment satisfactory to Lender in connection with any construction
work associated with such Approved Leasing Expenses and (D) at Lender's option,
for disbursements of more than $200,000, a title search for the Property
indicating that it is free from all liens not previously approved by Lender. 
Any such disbursement of more than $100,000 to pay (rather than reimburse)
Approved Leasing Expenses may, at Lender's option, be made by joint check
payable to Borrower and the payee of such Approved Leasing Expenses.  For the
purposes hereof an "Approved Leasing Expense" shall mean the actual
out-of-pocket expenses incurred by Borrower and payable to third parties that
are not affiliates of Borrower or any Guarantor (or parties that are affiliates
provided that such expenses are no less favorable to Borrower than would be
obtained in a comparable arm's length transaction with an unrelated third
party) in leasing space at the Premises pursuant to Leases entered into in
accordance with the Loan Documents, including brokerage commissions and tenant
improvements, which expenses (i) are (A) approved (or deemed approved pursuant
to the terms hereof) by Lender in connection with approving the applicable
Lease, (B) incurred in the ordinary course of business and on market terms and
conditions in connection with Leases which do not require Lender's approval
under the Loan Documents, or (C) otherwise approved by Lender, which approval
shall not be unreasonably withheld or delayed, and (ii) are substantiated by
executed Lease documents and brokerage agreements.
The term "Letter of Credit" shall mean a "clean,"
unconditional, irrevocable and transferable evergreen letter of credit for the
benefit of Lender issued by a bank approved by Lender, payable at sight and
having an expiry date of not less than three hundred and sixty (360) calendar
days following the issue date thereof, and otherwise acceptable in form and
substance to Lender.  Any Letter of Credit shall provide that it shall be
deemed automatically renewed, without amendment, for consecutive periods of not
less than 360 calendar days from the expiry date, unless the issuing financial
institution notifies Lender in writing (the "Non-Renewal Notice") by
certified mail, return receipt requested, not less than sixty (60) days next
preceding the expiry date of the Letter of Credit, stating that such issuing
financial institution has elected not to renew the Letter of Credit.  In the
event that Borrower shall not cause the issuance of a replacement Letter of
Credit within twenty (20) days of Borrower's receiving the Non-Renewal Notice from
Lender, Lender shall have the right to draw the full amount of the applicable
Letter of Credit or any replacement thereof and shall thereafter hold or apply
the proceeds thereof in accordance with the terms of this Security Instrument. 
Borrower shall hold harmless, indemnify and defend Lender from and against any
and all liabilities, obligations, claims, demands, damages, penalties, causes
of action, losses, fines, costs and expenses (including without limitation
reasonable attorneys' fees and expenses) imposed upon or incurred by Lender
arising from, or in connection with, directly or indirectly, its acceptance of
any Letter of Credit. This indemnity is in addition to any other indemnity
agreements made by Borrower to Lender in this Security Instrument, the Note or
in any of the other Loan Documents.  Financial
Covenant Reserve Escrow Account. Funds deposited into the
Financial Covenant Reserve Escrow Account shall be held by Lender in the
Financial Covenant Reserve Escrow Account as additional security for the Loan
until the Loan has been paid in full.  Provided that no Event of Default
has occurred and is continuing, and no O&M Operative Period has existed for two
(2) consecutive calendar quarters, Lender shall, upon written request from
Borrower, release all sums contained in the Financial Covenant Reserve Escrow
Account to Borrower.  Should an Event of Default occur (unless the same is
waived by Lender or cured by Borrower and such cure accepted by Lender), the
sums on deposit in the Financial Covenant Reserve Sub-Account and the Financial
Covenant Reserve Escrow Account may be applied by Lender to the payment of the
Debt or other charges affecting all or any portion of the Property, as Lender,
in its sole discretion, may determine; provided, however, that no such
application shall be deemed to have been made by operation of law or otherwise
until actually made by Lender as herein provided.

Section
5.12         
Performance of Engineering Work.    (a)  Borrower shall promptly commence and diligently
thereafter pursue to completion the Required Engineering Work, if any, prior to
the twelve (12) month anniversary of the Closing Date.  

(b)              
Intentionally Deleted.

Section 5.13         
Rent Abatement Reserve Escrow Account. Contemporaneously
with the execution hereof, Borrower has established with Lender a reserve in
the amount of $2,796,354.00 (the "Rent Abatement
Escrow Account").  In addition, contemporaneously with the execution
hereof, Borrower has delivered to Lender a Letter of Credit in the face amount
of $1,000,000.00 (the "Rent Abatement Escrow Letter of Credit"). 
Borrower shall, on or before the Payment Date occurring in June, 2007, provide
Lender with funds equal to the outstanding amount of the Rent Abatement Escrow
Letter of Credit, at which time such Letter of Credit shall

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 be returned to Borrower.  If Borrower fails to provide such
funds on or before such date, Lender shall draw the full amount of the Rent
Abatement Escrow Letter of Credit.  In each case, such funds shall be deposited
by Lender into the Rent Abatement Escrow Account.  Provided that no Event of
Default has occurred and is continuing, on the first Business Day of each month
commencing on August, 2006 and continuing through November, 2008, Lender shall
disburse the applicable amount set forth on Exhibit F hereto to Borrower from
the Rent Abatement Escrow Account (to the extent such funds are then on deposit
therein).  Should an Event of Default occur (unless the same is waived by
Lender or cured by Borrower and such cure accepted by Lender), the sums on
deposit in the Rent Abatement Escrow Account may
be applied by Lender to the payment of the Debt or other charges affecting all
or any portion of the Property, as Lender, in its sole discretion, may
determine; provided, however, that no such application shall be deemed to have
been made by operation of law or otherwise until actually made by Lender as
herein provided.

Section 5.14         
Intentionally Deleted.

Section
5.15         
Master Lease Reserve Escrow Account. Contemporaneously with the execution hereof, Borrower has
established with Lender a reserve in the amount of $1,365,000.00 (the "Master
Lease Escrow Account").  Provided that no Event of Default has occurred and
is continuing, on the first Business Day of each month commencing on August,
2006 and continuing through and including July, 2007, Lender shall disburse the
amount of $113,750.00 to Borrower from the Master Lease Escrow Account (to the
extent such funds are then on deposit therein).  Should an Event of Default
occur (unless the same is waived by Lender or cured by Borrower and such cure
accepted by Lender), the sums on deposit in the Master
Lease Escrow Account may be applied by Lender to the payment of the Debt
or other charges affecting all or any portion of the Property, as Lender, in
its sole discretion, may determine; provided, however, that no such application
shall be deemed to have been made by operation of law or otherwise until
actually made by Lender as herein provided.

 

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Section 5.16   
Debt Service/Leasing Escrow Account. Contemporaneously with the
execution hereof, Borrower has delivered to Lender a Letter of Credit in the
face amount of $3,100,000.00 (the "Debt Service/Leasing Escrow Account
Letter of Credit").  Borrower has established with Lender a reserve into
which no funds have been deposited on the date hereof (the "Debt
Service/Leasing Escrow Account").  Borrower shall, on or before the Payment
Date occurring in June, 2007, provide Lender with funds equal to the
outstanding amount of the Debt Service/Leasing Escrow Account Letter of Credit,
at which time such Letter of Credit shall be returned to Borrower.  If Borrower
fails to provide such funds on or before such date, Lender shall draw the full
amount of the Rollover Reserve Letter of Credit.  Provided that no Event of
Default has occurred and is continuing, on the first Business Day of each month
commencing on August, 2007 and continuing through July, 2009, Lender shall
disburse the amount of $129,166.66 to Borrower from the Debt Service/Leasing
Escrow Account (to the extent such funds are then on deposit therein).  In
addition, upon Lender's receipt of satisfactory evidence that (i) a portion of
the Master Lease Space has been leased to a new tenant, which new tenant is in
occupancy of such leased space and paying rent pursuant to a Lease satisfactory
to Lender and (ii) the occupancy rate of the Property (excluding any space then
leased pursuant to the Master Lease) is equal to or greater than ninety-three
percent (93%), Lender shall disburse an amount equal to one year's rent under
such new tenant's Lease to Borrower from the Debt Service/Leasing Escrow
Account (to the extent such funds are then on deposit therein).  Should an
Event of Default occur (unless the same is waived by Lender or cured by
Borrower and such cure accepted by Lender), the sums on deposit in the Debt Service/Leasing Escrow Account may be applied by
Lender to the payment of the Debt or other charges affecting all or any portion
of the Property, as Lender, in its sole discretion, may determine; provided,
however, that no such application shall be deemed to have been made by
operation of law or otherwise until actually made by Lender as herein provided.

Section 5.17    Loss Proceeds.  In the event of a casualty to the Property, unless Lender
elects, or is required pursuant to Article III hereof to make all or a portion of
the Insurance Proceeds available to Borrower for restoration, Lender and
Borrower shall cause all such Insurance Proceeds to be paid by the insurer
directly to the Central Account, whereupon Lender shall, after deducting
Lender's costs of recovering and paying out such Insurance Proceeds, including
without limitation, reasonable attorneys' fees, apply same to reduce the Debt without
penalty in accordance with and except as specifically required pursuant to the
terms of the Note; provided, that if Lender elects, or is deemed to have
elected, to make the Insurance Proceeds available for restoration, all
Insurance Proceeds in respect of rent loss, business interruption or similar
coverage shall be maintained in the Central Account, to be applied by Lender in
the same manner as Rent received with respect to the operation of the Property;
provided, further, however, that in the event that the
Insurance Proceeds with respect to such rent loss, business interruption or
similar insurance policy are paid in a lump sum in advance, Lender shall hold
such Insurance Proceeds in a segregated interest-bearing escrow account, which
shall be an Eligible Account, shall estimate, in Lender's reasonable
discretion, the number of months required for Borrower to restore the damage
caused by the casualty, shall divide the aggregate rent loss, business
interruption or similar Insurance Proceeds by such number of months, and shall disburse 

 

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 from such bank account
into the Central Account each month during the performance of such restoration
such monthly installment of said Insurance Proceeds.  In the event that
Insurance Proceeds are to be applied toward restoration, Lender shall hold such
funds in a segregated bank account at the Bank, which shall be an Eligible
Account, and shall disburse same in accordance with the provisions of Section
3.04 hereof.  Unless Lender elects, or is required pursuant to Section 6.01
hereof to make all of the Condemnation Proceeds available to Borrower for
restoration, Lender and Borrower shall cause all such Condemnation Proceeds to
be paid to the Central Account, whereupon Lender shall, after deducting
Lender's costs of recovering and paying out such Condemnation Proceeds,
including without limitation, reasonable attorneys' fees, apply same, by
transferring such amounts to the Collection Account, to reduce the Debt in
accordance with the terms of the Note; provided, however, that
any Condemnation Proceeds received in connection with a temporary Taking shall
be maintained in the Central Account, to be applied by Lender in the same
manner as Rent received with respect to the operation of the Property; provided,
further, however, that in the event that the Condemnation
Proceeds of any such temporary Taking are paid in a lump sum in advance, Lender
shall hold such Condemnation Proceeds in a segregated interest-bearing bank
account, which shall be an Eligible Account, shall estimate, in Lender's
reasonable discretion, the number of months that the Property shall be affected
by such temporary Taking, shall divide the aggregate Condemnation Proceeds in
connection with such temporary Taking by such number of months, and shall
disburse from such bank account into the Central Account each month during the
pendency of such temporary Taking such monthly installment of said Condemnation
Proceeds.  In the event that Condemnation Proceeds are to be applied toward
restoration, Lender shall hold such funds in a segregated bank account at the
Bank, which shall be an Eligible Account, and shall disburse same in accordance
with the provisions of Section 3.04 hereof.  If any Loss Proceeds are received
by Borrower, such Loss Proceeds shall be received in trust for Lender, shall be
segregated from other funds of Borrower, and shall be forthwith paid into the
Central Account, or paid to Lender to hold in a segregated bank account at the
Bank, in each case to be applied or disbursed in accordance with the
foregoing.  Any Loss Proceeds made available to Borrower for restoration in
accordance herewith, to the extent not used by Borrower in connection with, or
to the extent they exceed the cost of, such restoration, shall be deposited
into the Central Account, whereupon Lender shall apply the same to reduce the
Debt in accordance with the terms of the Note without premium or penalty.

ARTICLE VI

CONDEMNATION

Section 6.01    Condemnation.  (a)  Borrower shall notify Lender promptly of the
commencement or threat of any Taking of the Property or any portion thereof. 
Lender is hereby irrevocably appointed as Borrower's attorney-in-fact, coupled
with an interest, with exclusive power to collect, receive and retain the
proceeds of any such Taking and to make any compromise or settlement in
connection with such proceedings, subject to the provisions of this Security
Instrument; provided, however, that Borrower may participate in any such
proceedings and shall be authorized and entitled to compromise or settle any
such proceeding with respect to Condemnation Proceeds in an amount less than five percent
(5%) of the Loan Amount.  Borrower shall execute and deliver to Lender any and
all instruments reasonably required in connection with any such proceeding
promptly after request therefor by Lender.  Except as set forth above, Borrower
shall not adjust, compromise, settle or enter into any agreement with respect
to such proceedings without the prior consent of Lender.  All Condemnation
Proceeds are hereby assigned to and shall be paid to Lender.  With respect to
Condemnation Proceeds in an amount in excess of five percent (5%) of the Loan
Amount, Borrower hereby authorizes Lender to compromise, settle, collect and
receive such Condemnation Proceeds, and to give proper receipts and acquittance
therefor.  In the event that less than fifteen percent (15%) of the
Improvements located on the Premises have been taken, then if and so long as:
(1) no Default or 

 

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Event of Default has occurred hereunder or under any of the
other Loan Documents and has not been waived, (2) the Property can, in Lender's
judgment, with diligent restoration or repair, be returned to a condition at
least equal to the condition thereof that existed prior to the partial taking
causing the loss or damage within the earlier to occur of (i) nine (9) months
after the receipt of Condemnation Proceeds by either Borrower or Lender, and
(ii) six (6) months prior to the stated maturity date of the Note, (3) all
necessary governmental approvals can be obtained to allow the rebuilding and
re-occupancy of the Property as described in subsection (2) above, (4)
there are sufficient sums available (through Condemnation Proceeds and
contributions by Borrower, the full amount of which shall, at Lender's option,
have been deposited with Lender) for such restoration or repair (including,
without limitation, for any costs and expenses of Lender to be incurred in
administering said restoration or repair) and for payment of principal and
interest to become due and payable under the Note during such restoration or
repair, (5) the economic feasibility of the Improvements after such restoration
or repair will be such that income from their operation is reasonably
anticipated to be sufficient to pay operating expenses of the Property and debt
service on the Debt in full with the same coverage ratio considered by Lender
in its determination to make the loan secured hereby, (6) in the event that the
Condemnation Proceeds received as a result of such partial taking exceed the
lesser of (i) five percent (5%) of the then outstanding principal balance of
the Note and (ii) $1,000,000, Borrower shall have delivered to Lender, at
Borrower's sole cost and expense, an appraisal report from an appraiser
satisfactory to Lender in form and substance satisfactory to Lender appraising
the value of the Property as proposed to be restored or repaired to be not less
than the appraised value of the Property considered by Lender in its
determination to make the loan secured hereby, and (7) Borrower so elects by
written notice delivered to Lender within five (5) days after settlement of the
aforesaid condemnation claim, then, Lender shall, solely for the purposes of such
restoration or repair, advance so much of the remainder of such sums as may be
required for such restoration or repair, and any funds deposited by Borrower
therefor, to Borrower in the manner and upon such terms and conditions as would
be required by a prudent interim construction lender, including, but not
limited to, the prior approval by Lender of plans and specifications,
contractors and form of construction contracts and the furnishing to Lender of
permits, bonds, lien waivers, invoices, receipts and affidavits from
contractors and subcontractors, in form and substance satisfactory to Lender in
its discretion, with any remainder being applied by Lender for payment of the
Debt in whatever order Lender directs in its absolute discretion.  In all other
cases, namely, in the event that more than fifteen percent (15%) of the
Improvements located on the Premises have been taken or Borrower does not elect
to restore or repair the Property pursuant to the above provisions or otherwise
fails to meet the requirements of the above provisions, then, in any of such
events, Lender shall have the option, in Lender's sole discretion, to apply
such Condemnation Proceeds (less any cost to Lender of recovering and paying
out such proceeds, including, without limitation, reasonable attorneys' fees
and disbursements and costs allocable to inspecting any repair, restoration or
rebuilding work and the plans and specifications therefor) toward the payment of
the Debt or to require Borrower to complete the Work and make such proceeds
available to be used for the Work.  In the event Lender elects to make
Condemnation Proceeds available to be used toward the restoration or 

 

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rebuilding of the Property to a usable whole, such
Condemnation Proceeds shall be disbursed in the manner and subject to the
conditions set forth in Section 3.04(b) hereof; provided, however, that if the
Condemnation Proceeds equal less than five percent (5%) of the Loan Amount, the
Condemnation Proceeds shall be paid over to Borrower.  Any excess proceeds
remaining after completion of such restoration or rebuilding shall be applied to
the repayment of the Debt.  If the Condemnation Proceeds are used to reduce
the Debt, they shall be applied in accordance with the provisions of the Note
with no prepayment fee or charge of any kind.  Borrower shall promptly
execute and deliver all instruments requested by Lender for the purpose of
confirming the assignment of the Condemnation Proceeds to Lender.

(b)              
Application of all or any part of the Condemnation Proceeds to the Debt shall
be made in accordance with the provisions of Sections 3.06 and 3.07 hereof.  No
application of the Condemnation Proceeds to the reduction of the Debt shall
have the effect of releasing the lien of this Security Instrument until the
remainder of the Debt has been paid in full.  In the case of any Taking,
Lender, to the extent that Lender has not been reimbursed by Borrower, shall be
entitled, as a first priority out of any Condemnation Proceeds, to
reimbursement for all costs, fees and expenses reasonably incurred in the
determination and collection of any Condemnation Proceeds.  All Condemnation
Proceeds deposited with Lender pursuant to this Section, until expended or
applied as provided herein, shall be held in accordance with Section 3.04(b)
hereof and shall constitute additional security for the payment of the Debt and
the payment and performance of Borrower's obligations, but Lender shall not be
deemed a trustee or other fiduciary with respect to its receipt of such
Condemnation Proceeds or any part thereof.  All awards so deposited with Lender
shall be held by Lender in an Eligible Account which shall bear interest for
the benefit of Borrower, but Lender makes no representation or warranty as to
the rate or amount of interest, if any, which may accrue on any such deposit
and shall have no liability in connection therewith.  For purposes hereof, any
reference to the award shall be deemed to include interest, if any, which has
accrued thereon.

ARTICLE
VI

LEASES AND RENTS

 

Section
7.01         
Assignment.  (a)  Borrower does hereby bargain, sell, assign and set
over unto Lender, all of Borrower's interest in the Leases and Rents.  The
assignment of Leases and
Rents in this Section 7.01 is an absolute, unconditional and present assignment
from Borrower to Lender and not an assignment for security and the existence or
exercise of Borrower's revocable license to collect Rent shall not operate to
subordinate this assignment to any subsequent assignment.  The exercise by
Lender of any of its rights or remedies pursuant to this Section 7.01 shall not
be deemed to make Lender a mortgagee-in-possession.  In addition to the
provisions of this Article VII, Borrower shall comply with all terms,
provisions and conditions of the Assignment.

(b)   
So long no Event of Default shall have occurred (unless the same has been waived
by Lender or cured by Borrower and such cure accepted by Lender), Borrower shall
havea revocable license to take all actions with respect to all Leases and
Rents, present and future, including the right to collect and use the Rents,
subject to the terms of this Security Instrument and the Assignment.

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

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

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

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

Section 7.02    Management of Property.  (a)  Borrower shall manage the Property or cause the
Property to be managed in a manner which is consistent with first-class
management practices of properties similar to the Property in both type and
location.  All Space Leases shall provide for rental rates comparable to then
existing local market rates and terms and conditions which constitute good and
prudent business practice and are consistent with prevailing market terms and
conditions, and shall be arms-length transactions.  All Leases shall be on a form previously approved by Lender
subject to standard, tenant specific negotiated changes which do not,
individually or in the aggregate, cause a material adverse effect with respect
to the Property or Borrower and shall provide that they are subordinate to this
Security Instrument.  Borrower shall deliver copies of all Leases, amendments,
modifications and renewals thereof to Lender. All proposed Leases for the
Property shall be subject to the prior written approval of Lender, which shall
not be unreasonably withheld or conditioned; provided, however that Borrower
may enter into new leases with unrelated third parties without obtaining the
prior consent of Lender provided that: (i) the proposed leases conform with the
requirements of this Section 7.02; and (ii) the space to be leased pursuant to
such proposed lease does not exceed 75,000 square feet.  In the event
that Lender's consent 

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for a Space Lease is required hereunder and Lender shall not
advise Borrower of its objections to any proposed Space Lease, Lender's consent
to any Space Lease shall be deemed given, if (A) the first correspondence from
Borrower to Lender requesting such approval is in an envelope marked "PRIORITY"
and contains a bold-faced, conspicuous legend at the top of the first page
thereof stating that "IF YOU FAIL TO RESPOND TO OR TO EXPRESSLY DENY THIS
REQUEST FOR APPROVAL IN WRITING WITHIN TEN (10) BUSINESS DAYS, YOUR APPROVAL MAY
BE DEEMED GIVEN", and is accompanied by the information and documents required
above and any other information reasonably requested by Lender in writing prior
to the expiration of such ten (10) Business Day period in order to adequately
review the same has been delivered and, (B) if Lender fails to respond or to
expressly deny such request for approval in writing within the ten (10) Business
Day period, a second notice is delivered to Lender from Borrower in an envelope
marked "PRIORITY" requesting approval containing a bold-faced, conspicuous
legend at the top of the first page thereof stating that "IF YOU FAIL TO RESPOND
TO OR EXPRESSLY DENY THIS REQUEST FOR APPROVAL IN WRITING WITHIN FIVE (5)
BUSINESS DAYS, YOUR APPROVAL SHALL BE DEEMED GIVEN" and Lender fails to respond
or to expressly deny such request for approval within the five (5) Business Day
period.

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

(c)               
All security deposits of lessees, whether held in cash or any other
form, shall be treated by Borrower as trust funds.  Any bond or other
instrument which Borrower is permitted to hold in lieu of cash security
deposits under applicable Legal Requirements shall be maintained in full force
and effect unless replaced by cash deposits as hereinabove described, shall, if
permitted pursuant to Legal Requirements, be fully assignable to Lender and
shall, in all respects, comply with applicable Legal Requirements.  Borrower
shall, upon request, provide Lender with evidence reasonably satisfactory to
Lender of Borrower's compliance with the foregoing.  Following the occurrence
and during the continuance of any Event of Default, Borrower shall, upon
Lender's request, if permitted by applicable Legal Requirements, turn over the
security deposits to Lender to be held by Lender in accordance with the terms
of this Security Instrument, the Leases and all Legal Requirements.

(d)                 
Borrower covenants and agrees with Lender that (i) the Property will be
managed at all times by a Qualified Property Manager pursuant to a management
agreement approved by Lender (the "Management Agreement"), (ii) after
Borrower has knowledge of a fifty percent (50%) or more change in control of
the ownership of Manager, Borrower will promptly give Lender notice thereof (a "Manager
Control Notice") and (iii) the Management Agreement may be terminated by
Lender at any time for cause (including, but not limited to, Manager's gross
negligence, misappropriation of funds, willful misconduct or fraud) or at any
time following (A) during the continuance of an Event of Default or (B) the
receipt of a Manager Control Notice, and a substitute managing agent shall be
appointed by Borrower, subject to Lender's prior written approval, which may be
given or withheld in Lender's sole discretion and which may be conditioned on,
inter alia, a letter from the Rating Agency confirming that any rating issued
by the Rating Agency in connection with a Securitization will not, as a result
of the proposed change of Manager, be downgraded from the then current ratings
thereof, qualified or withdrawn.  Borrower may from time to time appoint a
successor manager to manage the Property with Lender's prior written consent
which consent shall not be unreasonably withheld or delayed, provided that any
such successor manager shall be a Qualified Property Manager.  In each case
with respect to any new manager affiliated with Borrower and/or Guarantor,
Borrower shall, if requested by Lender, also deliver a revised substantive
non-consolidation opinion in form and substance satisfactory to Lender and any
applicable Rating Agency.  Borrower further covenants and agrees that Borrower
shall require Manager (or any successor managers) to maintain at all times
during the term of the Loan worker's compensation insurance as required by
Governmental Authorities.  

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

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ARTICLE VII

MAINTENANCE AND REPAIR

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

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

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

(c)               
Borrower shall not demolish, remove, construct, or, except as otherwise
expressly provided herein, restore, or alter the Property or any portion
thereof; nor consent to or permit any such demolition, removal, construction,
restoration, addition or alteration which would diminish the value of the
Property without Lender's prior written consent in each instance, which consent
shall not be unreasonably withheld, conditioned or delayed.

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(d)              
Borrower represents and warrants to Lender that (i) there are no fixtures,
machinery, apparatus, tools, equipment or articles of personal property attached
or appurtenant to, or located on, or used in connection with the management,
operation or maintenance of the Property, except for the Equipment and equipment
leased by Borrower for the management, operation or maintenance of the Property
in accordance with the Loan Documents; (ii) the Equipment and the leased
equipment constitute all of the fixtures, machinery, apparatus, tools, equipment
and articles of personal property necessary to the proper operation and
maintenance of the Property, except management software owned by the Manager;
and (iii) all of the Equipment is free and clear of all liens, except for the
lien of this Security Instrument and the Permitted Encumbrances.  All
right, title and interest of Borrower in and to all extensions, improvements,
betterments, renewals and appurtenances to the Property hereafter 

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acquired by, or released to, Borrower or constructed, assembled or placed by
Borrower in the Property, and all changes and substitutions of the security
constituted thereby, shall be and, in each such case, without any further
mortgage, encumbrance, conveyance, assignment or other act by Lender or
Borrower, shall become subject to the lien and security interest of this
Security Instrument as fully and completely, and with the same effect, as though
now owned by Borrower and specifically described in this Security Instrument,
but at any and all times Borrower shall execute and deliver to Lender any
documents Lender may reasonably deem necessary or appropriate for the purpose of
specifically subjecting the same to the lien and security interest of this
Security Instrument.

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

ARTICLE
VIII

TRANSFER OR ENCUMBRANCE OF THE PROPERTY

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

 

Section 9.02    No Transfer.  (a)  Borrower acknowledges that Lender has examined and
relied on the expertise of Borrower and, if applicable, each General Partner,
in owning and operating properties such as the Property in agreeing to make the
Loan and will continue to rely on Borrower's ownership of the Property as a
means of maintaining the value of the Property as security for repayment of the
Debt and Borrower acknowledges that Lender has a valid interest in  maintaining
the value of the Property.  Borrower shall not Transfer, nor permit any
Transfer, without the prior written consent of Lender, which consent Lender may
withhold in its sole and absolute discretion, provided, however, that Lender
shall not unreasonably withhold its consent to a transfer of the direct or
indirect ownership interest in Borrower if Borrower delivers to Lender (i) a
written confirmation from each Rating Agency that any rating issued by such
Rating Agency in connection with the Securitization will not, as a result of
the Transfer, be downgraded from the then current ratings thereof, qualified or
withdrawn and (ii) an updated non-consolidation opinion relating to such

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Transfer which opinion is in form and substance acceptable to Lender.  Lender
shall not be required to demonstrate any actual impairment of its security or
any increased risk of default hereunder in order to declare the Debt
immediately due and payable upon a Transfer without Lender's consent.  This
provision shall apply to every Transfer regardless of whether voluntary or not,
or whether or not Lender has consented to any previous Transfer.  Notwithstanding
the foregoing, the one-time Transfer of the direct or indirect ownership of
Borrower to a third-party investor shall not be an Event of Default hereunder and
the requirements of Section 9.04 hereof shall not apply (and no fee for
the resulting Transfer shall be due hereunder) provided that (i) the party
receiving such direct or indirect ownership interest is a Qualified Joint
Venture Party, (ii) Borrower delivers to Lender a written confirmation from
each Rating Agency that any rating issued by such Rating Agency in connection
with the Securitization will not, as a result of the transfer, be downgraded
from the then current ratings thereof, qualified or withdrawn and (iii)
Borrower delivers to Lender an updated non-consolidation opinion relating to
such Transfer which opinion is in form and substance acceptable to Lender.

                        (b)        Notwithstanding
anything to the contrary contained herein, pledges of the ownership interest of
Parkway by PPI and/or pledges of the ownership interest of Member shall not be
an Event of Default under this Security Instrument provided that: (i) no Event
of Default shall have occurred (unless the same has been waived by Lender or
cured and such cure accepted by Lender), (ii) such pledge shall be made to an
Institutional Lender or Qualified Financial Institution to secure a loan being
made in the ordinary course of business to Parkway by such institution, secured
by all or substantially all of the assets of Parkway and/or PPI, as applicable,
(iii) the Property shall continue to be managed by a Qualified Property Manager
and (iv) in the event that such pledge results in a change of control of
Borrower or a direct or indirect change of more than forty-nine percent (49%)
of the ownership interests in Borrower, (a) Borrower shall provide an updated
non-consolidation opinion satisfactory to Lender and any applicable rating
agency and (b) Borrower shall provide confirmation in writing from the
applicable rating agencies that rate the securities issued with respect to a
securitization of the Loan to the effect that the transfer will not result in a
qualification, downgrade or withdrawal of any rating initially assigned or to
be assigned to the securities so issued. 

                        (c)        Lender's
consent shall not be required with respect to (w) the sale, transfer or
issuance of stock in PPI provided such stock is listed on the New York Stock
Exchange or other nationally recognized stock exchange, (x) the sale, transfer
or issuance of stock in an entity sponsored by PPI provided such stock is
listed on the New York Stock Exchange or other nationally recognized stock
exchange, or (y) the sale, transfer or issuance of stock in any operating
partnership owned and controlled by PPI or any entity created pursuant to
clause (x) above provided the stock of such entity created pursuant to clause
(x) above is listed on the New York Stock Exchange or other nationally
recognized stock exchange; provided each of the following conditions are
satisfied: 

                        (i)
        no Event of Default has occurred and is continuing; 

                       (ii)       
Lender shall have received written notice of the terms of such prospective
transfer not less than thirty (30) days before the date on which such transfer
is scheduled to close; 

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                        (iii)
      Borrower shall have paid to Lender, concurrently with the closing of such
transfer all out-of-pocket costs and expenses, including reasonable attorneys'
fees, incurred by Lender in connection with the transfer; 

                        (iv)
      Borrower, without any cost to Lender, shall furnish any information
requested by Lender for the preparation of, and shall authorize Lender to file,
new financing statements and financing statement amendments and other documents
to the fullest extent permitted by applicable law, and shall execute any
additional documents reasonably requested by Lender; 

                        (v)
       any entity created in connection with such transfer shall have furnished
to Lender, all appropriate papers evidencing such entity's organization and
good standing; and

(vi) the contract pursuant to which the transfer is proposed
to occur shall expressly be subject to the satisfaction of the terms and
conditions of this Section 9.2.

Section
9.03         
Due on Sale.  Lender may declare the Debt immediately due and payable
upon any Transfer not specifically permitted hereunder or further encumbrance or
any violation of Section 9.02 without Lender's consent without regard to
whether any impairment of its security or any increased risk of default
hereunder can be demonstrated.  This provision shall apply to every Transfer or
further encumbrance of the Property or any part thereof or interest in the
Property or direct or indirect, legal or beneficial, interest in Borrower
regardless of whether voluntary or not, or whether or not Lender has consented
to any previous Transfer or further encumbrance of the Property or interest in
Borrower.

Section
9.04         
Permitted Transfer.  Notwithstanding the foregoing provisions of this Article
IX, Lender shall consent to a sale, conveyance or transfer of the Property in
its entirety or all of the membership interest in Borrower or Member (hereinafter,
a "Sale") to any person or entity provided that, for each Sale, each of
the following terms and conditions are satisfied:

(a)               
No Default and no Event of Default is then continuing hereunder or under
any of the other Loan Documents;

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

(c)               
Borrower gives Lender written notice of the terms of the proposed Sale
not less than sixty (60) days before the date on which such Sale is scheduled
to close and, concurrently therewith, gives Lender (i) all such information
concerning the proposed transferee of the Property (hereinafter, "Buyer")
as Lender would require in evaluating an initial extension of credit to a
borrower and (ii) a non-refundable application fee equal to $7,500, which fee
shall be deducted from the costs payable pursuant to subsection (d) below upon
the consummation of such Sale;

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(d)              
Lender shall have the right to approve or disapprove the proposed
transfer and the proposed Buyer based on its then current underwriting and
credit requirements for similar loans secured by similar properties which loans
are sold in the secondary market, such approval not to be unreasonably
withheld.  In determining whether to give or withhold its approval of the
proposed transfer, Lender may consider the experience and track record of Buyer
and its principals in owning and operating facilities similar to the Property,
the financial strength of Buyer and its principals, the general business
standing of Buyer and its principals and Buyer's and its principals'
relationships and experience with contractors, vendors, tenants, lenders and
other business entities; provided, however, that, notwithstanding Lender's
agreement to consider the foregoing factors in determining whether to give or
withhold such approval, such approval shall be given or withheld based on what
Lender determines to be commercially reasonable and, if given, may be given
subject to such conditions as Lender may deem reasonably appropriate;

(e)               
Borrower pays Lender, concurrently with the closing of such Sale, a
non-refundable assumption fee in an amount equal to one percent (1%) of the
then outstanding Loan Amount, together with all out-of-pocket costs and
expenses, including, without limitation, reasonable attorneys' fees, incurred
by Lender in connection with the Sale;

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

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

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

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

(j)                
subject to the provisions of Section 18.32 hereof, such Sale is not
construed so as to relieve Borrower of any personal liability under the Note or
any of the other Loan Documents for any acts or events occurring or obligations
arising prior to or simultaneously with the closing of such Sale, and Borrower
executes, without any cost or expense to Lender, such documents and agreements
as Lender shall reasonably require to evidence and effectuate the ratification
of said personal liability; 

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

(l)                 
in the case of a Sale of the Property, Buyer is a Single Purpose Entity;
and 

(m)             
Lender receives a non-consolidation opinion relating to Buyer from
Buyer's counsel, which opinion is in form and substance acceptable to Lender.

Section
9.05         
Mezzanine Debt.

(a)               
On the date hereof, Wachovia Bank, National Association, in its capacity
as mezzanine lender (the "Mezzanine Lender"), has made a loan in the principal
amount of $33,700,000.00 (the "Mezzanine Loan") to Member (the "Mezzanine
Borrower").  Notwithstanding anything to the contrary contained herein, the
pledge of the Mezzanine Borrower's interest in Borrower pursuant to the
Mezzanine Loan Documents (as defined in the Intercreditor Agreement dated as of
the date hereof by and between Mortgagee and Mezzanine Lender (the "Intercreditor
Agreement")) and the exercise of Mezzanine Lender's rights thereunder
(subject to the terms and conditions of the Intercreditor Agreement) shall not
be a Default or Event of Default hereunder and the requirements of Section 9.04
hereof shall not apply (and no fee for the resulting Transfer shall be due
hereunder) in connection with any foreclosure by the Mezzanine Lender under the
Mezzanine Loan Documents made pursuant to the terms of the Intercreditor
Agreement.

(b)              
In addition, subject to satisfaction of the Replacement Mezzanine Loan
Criteria, Member shall have the right to pledge all or any portion of Member's
limited liability company interests in Borrower to secure a loan to the
Mezzanine Borrower (the "Replacement Mezzanine Loan").

ARTICLE X

CERTIFICATES

 

Section 10.01    Estoppel Certificates.  (a)  After request by Lender, Borrower, within fifteen (15)
days and at its expense, will furnish Lender with a statement, duly
acknowledged and certified, setting forth (i) the amount of the original
principal amount of the Note, and the unpaid principal amount of the Note, (ii)
the rate of interest of the Note, (iii) the date payments of interest and/or
principal were last paid, (iv) any offsets or defenses to the payment of the 

 

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Debt, and if any are alleged, the
nature thereof, (v) that the Note and this Security Instrument have not been
modified or if modified, giving particulars of such modification and (vi) that
there has occurred and is then continuing no Default or if such Default exists,
the nature thereof, the period of time it has existed, and the action being
taken to remedy such Default.

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

(c)               
Borrower shall use all reasonable efforts to obtain estoppel
certificates from tenants in form and substance reasonably acceptable to
Lender.

ARTICLE
IX

NOTICES

Section
9.01         
Notices.  Any notice, demand, statement, request or consent made
hereunder shall be in writing and delivered personally or sent to the party to
whom the notice, demand or request is being made by Federal Express or other
nationally recognized overnight delivery service, as follows and shall be
deemed given when delivered personally or one (1) Business Day after being
deposited with Federal Express or such other nationally recognized delivery
service:

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

with a copy to:

Cadwalader, Wickersham & Taft LLP

227 West Trade Street, Suite 2400

Charlotte, NC 28202

Attention:  Jeffrey Lee, Esq.

If to Borrower:       To
Borrower, at the address first written above Attention: CFO,

with a copy to:

Forman Perry Watkins Krutz & Tardy LLP

Attention: Robert C. Hutchison, Esq.

200 South Lamar, Suite 100

Jackson, MS  39201

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

 

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ARTICLE XII

INDEMNIFICATION

Section
12.01    Indemnification Covering
Property.  In addition, and without limitation, to any other provision
of this Security Instrument or any other Loan Document, Borrower shall protect,
indemnify and save harmless Lender and its successors and assigns, and each of
their agents, employees, officers, directors, stockholders, partners and
members (collectively, "Indemnified Parties") for, from and against any
claims, demands, penalties, fines, liabilities, settlements, damages, costs and
expenses of whatever kind or nature, known or unknown, contingent or otherwise,
whether incurred or imposed within or outside the judicial process, including,
without limitation, reasonable attorneys' fees and disbursements imposed upon
or incurred by or asserted against any of the Indemnified Parties by reason of
(a) ownership of this Security Instrument, the Assignment, the Property or any
part thereof or any interest therein or receipt of any Rents; (b) any accident,
injury to or death of any person or loss of or damage to property occurring in, on or about the Property
or any part thereof or on the adjoining sidewalks, curbs, parking areas,
streets or ways; (c) any use, nonuse or condition in, on or about, or
possession, alteration, repair, operation, maintenance or management of, the
Property or any part thereof or on the adjoining sidewalks, curbs, parking
areas, streets or ways; (d) any failure on the part of Borrower to perform or
comply with any of the terms of this Security Instrument or the Assignment; (e)
performance of any labor or services or the furnishing of any materials or
other property in respect of the Property or any part thereof; (f) any claim by
brokers, finders or similar Persons claiming to be entitled to a commission in
connection with any Lease or other transaction involving the Property or any
part thereof; (g) any Imposition including, without limitation, any Imposition
attributable to the execution, delivery, filing, or recording of any Loan
Document, Lease or memorandum thereof; (h) any lien or claim arising on or
against the Property or any part thereof under any Legal Requirement or any
liability asserted against any of the Indemnified Parties with respect thereto;
(i) any claim arising out of or in any way relating to any tax or other
imposition on the making and/or recording of this Security Instrument, the Note
or any of the other Loan Documents; (j) a Default under Sections 2.02(f),
2.02(g), 2.02 (t), or 2.02(w) hereof, (k) the failure of any Person to file
timely with the Internal Revenue Service an accurate Form 1099-B, Statement for
Recipients of Proceeds from Real Estate, Broker and Barter Exchange
Transactions, which may be required in connection with the Loan, or to supply a
copy thereof in a timely fashion to the recipient of the proceeds of the Loan;
or (l) the claims of any lessee or any Person acting through or under any lessee
or otherwise arising under or as a consequence of any Lease. 
Notwithstanding the foregoing provisions of this Section 12.01 to the contrary,
Borrower shall have no obligation to 

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indemnify the Indemnified Parties pursuant to this Section
12.01 for liabilities, obligations, claims, damages, penalties, causes of
action, costs and expenses relative to the foregoing which (1) result from
Lender's, and its successors' or assigns', willful misconduct or gross
negligence or (2) occur both (x) subsequent to the date that Lender or its
designees takes possession of the Property through foreclosure, deed in lieu of
foreclosure, or other means and (y) through no act or omission of Borrower or
any of its agents.  Any amounts payable to Lender by reason of the
application of this Section 12.01 shall constitute a part of the Debt secured by
this Security Instrument and the other Loan Documents and shall become
immediately due and payable and shall bear interest at the Default Rate from the
date the liability, obligation, claim, cost or expense is sustained by Lender,
as applicable, until paid.  The provisions of this Section 12.01 shall
survive the termination of this Security Instrument whether by repayment of the
Debt, foreclosure or delivery of a deed in lieu thereof, assignment or
otherwise.  In case any action, suit or proceeding is brought against any
of the Indemnified Parties by reason of any occurrence of the type set forth in
(a) through (l) above, Borrower shall, at Borrower's expense, resist and defend
such action, suit or proceeding or will cause the same to be resisted and
defended by counsel at Borrower's expense for the insurer of the liability or by
counsel designated by Borrower (unless reasonably disapproved by Lender promptly
after Lender has been notified of such counsel); provided, however, that nothing
herein shall compromise the right of Lender (or any other Indemnified Party) to
appoint its own counsel at Borrower's expense for its defense with respect to
any action which, in the reasonable opinion of Lender or such other Indemnified
Party, as applicable, presents a conflict or potential conflict between Lender
or such other Indemnified Party that would make such separate representation
advisable.  Any Indemnified Party will give Borrower prompt notice after
such Indemnified Party obtains actual knowledge of any potential claim by such
Indemnified Party for indemnification hereunder.  The Indemnified Parties
shall not settle or compromise any action, proceeding or claim as to which it is
indemnified hereunder without notice to Borrower.

ARTICLE
X

DEFAULTS

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

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

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

(c)               
if payment of any amount into any reserve account required to be paid
pursuant to this Security Instrument or any other Loan Document shall not be
paid within five (5) days after Lender delivers written notice to Borrower that
same is due and payable thereunder or hereunder;

(d)              
if payment of any sum (other than the sums described in (a) above, (b)
above or (c) above) required to be paid pursuant to the Note, this Security
Instrument or any other Loan Document shall not be paid within ten (10) days
after Lender delivers written notice to Borrower that same is due and payable
thereunder or hereunder;

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

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

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

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

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

(j)                
if a receiver, liquidator or trustee of Borrower, Guarantor or any
general partner of Borrower or Guarantor shall be appointed or if Borrower,
Guarantor or their respective general partners shall be adjudicated a bankrupt
or insolvent, or if any petition for bankruptcy, reorganization or arrangement
pursuant to federal bankruptcy law, or any similar federal or state law, shall
be filed by or against, consented to, or acquiesced in by, Borrower, Guarantor
or their respective general partners or if any proceeding for the dissolution
or liquidation of Borrower, Guarantor or their respective general partners
shall be instituted; however, if such appointment, adjudication, petition or
proceeding was involuntary and not consented to by Borrower, Guarantor or their
respective general partners, as applicable, upon the same not being discharged,
stayed or dismissed within ninety (90) days or if Borrower, Guarantor or their
respective general partners shall generally not be paying its debts as they
become due;

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

(l)                 
if the Property becomes subject (i) to any lien which is superior to the
lien of this Security Instrument, other than a lien for real estate taxes and
assessments not due and payable, or (ii) to any mechanic's, materialman's or
other lien which is or is asserted to be superior to the lien of this Security
Instrument, and such lien shall remain undischarged (by payment, bonding, or
otherwise) for thirty (30) days unless contested in accordance with the terms
hereof; 

(m)             
if Borrower discontinues the operation of the Property or any part
thereof for reasons other than repair or restoration arising from a casualty or
condemnation for thirty (30) days or more; 

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(n)               
except as permitted in this Security Instrument, any material
alteration, demolition or removal of any of the Improvements without the prior
consent of Lender;

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

(p)              
if there shall be any material amendment, modification or termination of
the Master Lease without the written consent of Lender other than modifications
by Borrower expressly provided in the Master Lease; or

(q)                if a default shall occur under any
of the other terms, covenants or conditions of the Note, this Security
Instrument or any other Loan Document, other than as set forth in (a) through
(o) above, for fifteen (15) days after notice from Lender in the case of any
default which can be cured by the payment of a sum of money, or for thirty (30)
days after notice from Lender in the case of any other default or an additional
thirty (30) days if Borrower is diligently and continuously effectuating a cure
of a curable non-monetary default, other than as set forth in (a) through (o)
above. 

Section 13.02   
Remedies.    (a)  Upon the occurrence and during the continuance of any
Event of Default, Lender may, in addition to any other rights or remedies available
to it hereunder or under any other Loan Document, at law or in equity, take
such action, without notice or demand, as it reasonably deems advisable to
protect and enforce its rights against Borrower and in and to the Property
including, but not limited to, the following actions, each of which may be
pursued singly, concurrently or otherwise, at such time and in such order as
Lender may determine, in its sole discretion, without impairing or otherwise
affecting any other rights and remedies of Lender hereunder, at law or in
equity:  (i) declare all or any portion of the unpaid Debt to be immediately
due and payable; provided, however, that upon the occurrence of any of the events specified in
Section 13.01(j), the entire Debt will be immediately due and payable without
notice or demand or any other declaration of the amounts due and payable; or
(ii) bring an action to foreclose this Security Instrument and without applying
for a receiver for the Rents, but subject to the rights of the tenants under the
Leases, enter into or upon the Property or any part thereof, either personally
or by its agents, nominees or attorneys, and dispossess Borrower and its agents
and servants therefrom, and thereupon Lender may (A) use, operate, manage,
control, insure, maintain, repair, restore and otherwise deal with all and
every part of the Property and conduct the business thereat, (B) make
alterations, additions, renewals, replacements and improvements to or on the
Property or any part thereof which are reasonably necessary to protect Lender's
interest, (C) exercise all rights and powers of Borrower with respect to the
Property or any part thereof, whether in the name of Borrower or otherwise,
including, without limitation, the right to make, cancel, enforce or modify Leases,
obtain and evict tenants, and demand, sue for, collect and receive all
earnings, revenues, rents, issues, profits and other income of the Property and
every part thereof, and (D) apply the receipts from the Property or any part
thereof to the payment of the Debt, after deducting therefrom all expenses
(including, without limitation, reasonable attorneys' fees and disbursements)
reasonably incurred in connection with the aforesaid operations and all amounts
necessary to pay the Impositions, insurance and other charges in connection with
the Property or any part thereof, as well as just and reasonable compensation
for the services of Lender's third-party agents; or (iii) have an appraisal or
other valuation of the Property or any part thereof performed by an appraiser
approved by Lender (and Borrower covenants and agrees it shall 

-90-

 cooperate in causing any such valuation or appraisal to be performed) and any
cost or expense incurred by Lender in connection therewith shall constitute a
portion of the Debt and be secured by this Security Instrument and shall be
immediately due and payable to Lender with interest, at the Default Rate, until
the date of receipt by Lender; or (iv) sell the Property or institute
proceedings for the complete foreclosure of this Security Instrument, or take
such other action as may be allowed pursuant to Legal Requirements, at law or
in equity, for the enforcement of this Security Instrument in which case the
Property or any part thereof may be sold for cash or credit in one or more parcels;
or (v) with or without entry, and to the extent permitted and pursuant to the
procedures provided by applicable Legal Requirements, institute proceedings for
the partial foreclosure of this Security Instrument, or take such other action
as may be allowed pursuant to Legal Requirements, at law or in equity, for the
enforcement of this Security Instrument for the portion of the Debt then due
and payable, subject to the lien of this Security Instrument continuing
unimpaired and without loss of priority so as to secure the balance of the Debt
not then due; or (vi) sell the Property or any part thereof and any or all
estate, claim, demand, right, title and interest of Borrower therein and rights
of redemption thereof, pursuant to power of sale or otherwise, at one or more
sales, in whole or in parcels, in any order or manner, at such time and place,
upon such terms and after such notice thereof as may be required or permitted
by law, at the discretion of Lender, and in the event of a sale, by foreclosure
or otherwise, of less than all of the Property, this Security Instrument shall
continue as a lien on the remaining portion of the Property; or (vii) institute
an action, suit or proceeding in equity for the specific performance of any
covenant, condition or agreement contained in the Loan Documents, or any of
them; or (viii) recover judgment on the Note or any guaranty either before,
during or after (or in lieu of) any proceedings for the enforcement of this
Security Instrument; or (ix) apply, ex parte, for the appointment of a
custodian, trustee, receiver, keeper, liquidator or conservator of the Property
or any part thereof, irrespective of the adequacy of the security for the Debt
and without regard to the solvency of Borrower or of any Person liable for the
payment of the Debt, to which appointment Borrower does hereby consent and such receiver
or other official shall have all rights and powers permitted by applicable law
and such other rights and powers as the court making such appointment may
confer, but the appointment of such receiver or other official shall not impair
or in any manner prejudice the rights of Lender to receive the Rent with
respect to any of the Property pursuant to this Security Instrument or the
Assignment; or (x) require, at Lender's option, Borrower to pay monthly in
advance to Lender, or any receiver appointed to collect the Rents, the fair and
reasonable rental value for the use and occupation of any portion of the
Property occupied by Borrower and may require Borrower to vacate and surrender
possession to Lender of the Property or to such receiver and Borrower may be
evicted by summary proceedings or otherwise; or (xi) without notice to Borrower
(A) apply all or any portion of the cash collateral in any Sub-Account and
Escrow Account, including any interest and/or earnings therein, to carry out
the obligations of Borrower under this Security Instrument and the other Loan
Documents, to protect and preserve the Property and for any other purpose
permitted under this Security Instrument and the other Loan Documents and/or
(B) have all or any portion of such cash collateral immediately paid to Lender
to be applied against the Debt in the order and priority set forth in the Note;
or (xii) pursue any or all such other rights or remedies as Lender may have
under applicable law or in equity; provided, however, that the provisions of
this Section 13.02(a) shall not be construed to extend or modify any of the
notice requirements or grace periods provided for hereunder or under any of the
other Loan Documents.  Borrower hereby waives, to the fullest extent permitted
by Legal Requirements, any defense Borrower might otherwise raise or have by
the failure to make any tenants parties defendant to a foreclosure proceeding
and to foreclose their rights in any proceeding instituted by Lender.

 

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

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

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

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

Fourth:  The surplus, if any, to Borrower unless otherwise
required by Legal Requirements.

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

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

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

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

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

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

(h)               
Upon the exercise by Lender of any power, right, privilege, or remedy pursuant
to this Security Instrument which requires any consent, approval, registration,
qualification, or authorization of any Governmental Authority, Borrower agrees
to execute and deliver, or will cause the execution and delivery of, all
applications, certificates, instruments, assignments and other documents and
papers that Lender or any purchaser of the 

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Property may be
required to obtain for such governmental consent, approval, registration,
qualification, or authorization and Lender is hereby irrevocably appointed the
true and lawful attorney-in-fact of Borrower (coupled with an interest), in its
name and stead, to execute all such applications, certificates, instruments,
assignments and other documents and papers.

Section
13.03      Payment
of Debt After Default.  If, following the occurrence of any Event of Default,
Borrower shall tender payment of an amount sufficient to satisfy the Debt in
whole or in part at any time prior to a foreclosure sale of the Property, and
if at the time of such tender prepayment of the principal balance of the Note
is not permitted by the Note or this Security Instrument, Borrower shall, in
addition to the entire Debt, also pay to Lender a prepayment penalty calculated
pursuant to the terms of Section 2.3(b) of the Note. If at the time of such
tender, prepayment of the principal balance of the Note is permitted, such
tender by Borrower shall be deemed to be a voluntary prepayment of the
principal balance of the Note, and Borrower shall, in addition to the entire
Debt, also pay to Lender the applicable prepayment consideration specified in Section
2.3(b) of the Note and this Security Instrument.

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

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

Section 13.06    Borrower's Actions After
Default.  After the happening of any Event of Default and immediately upon
the commencement of any action, suit or other legal proceedings by Lender to
obtain judgment for the Debt, or of any other nature in aid of the enforcement
of the Loan Documents, Borrower will (a) after receipt of notice of the
institution of any such action, waive the issuance and service of 

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process
and enter its voluntary appearance in such action, suit or proceeding, and (b)
if required by Lender, consent to the appointment of a receiver or receivers of
the Property or any part thereof and of all the earnings, revenues, rents,
issues, profits and income thereof. 

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

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

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

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Section 13.09    Late Payment Charge.  If any portion of the Debt is not paid in full on or before
the day on which it is due and payable hereunder, Borrower shall pay to Lender
an amount equal to five percent (5%) of such unpaid portion of the Debt ("Late
Charge") to defray the expense incurred by Lender in handling and
processing such delinquent payment, and such amount shall constitute a part of
the Debt.  

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

Section
13.11      Marshalling
and Other Matters.  Borrower hereby waives, to the fullest extent permitted by
law, the benefit of all appraisement, valuation, stay, extension,
reinstatement, redemption (both equitable and statutory) and homestead laws now
or hereafter in force and all rights of marshalling in the event of any sale
hereunder of the Property or any part thereof or any interest therein. 
Further, Borrower hereby expressly waives any and all rights of redemption from
sale under any order or decree of foreclosure of this Security Instrument on
behalf of Borrower, whether equitable or statutory and on behalf of each and
every Person acquiring any interest in or title to the Property or any part
thereof subsequent to the date of this Security Instrument and on behalf of all
Persons to the fullest extent permitted by applicable law.

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

Section
13.12      General
Provisions Regarding Remedies.

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

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

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

ARTICLE
XI

COMPLIANCE WITH REQUIREMENTS

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

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

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

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

ARTICLE
XII

PREPAYMENT

Section 15.01     
Prepayment. Borrower shall not be permitted to prepay the Debt in whole
or in part except in strict accordance with the Note and Sections 3.07(b) and
(c) and Section 6.01(b) hereof.

ARTICLE
XIII

ENVIRONMENTAL COMPLIANCE

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

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(b)              
To the best of Borrower's knowledge there is, and has been, no seepage,
leak, escape, leach, discharge, injection, release, emission, spill, pumping,
pouring, emptying or dumping of Hazardous Materials into waters on, under or
adjacent to the Property or any part thereof or any other real property owned
and/or occupied by Borrower, or onto lands from which such Hazardous Materials
might seep, flow or drain into such waters, except as disclosed in the
Environmental Report.

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

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

(e)               
Except as may be expressly set forth in the Space Leases, Borrower has
not waived any Person's liability with regard to the Hazardous Materials in,
on, under or around the Property, nor has Borrower retained or assumed,
contractually or by operation of law, any other Person's liability relative to
Hazardous Materials or any claim, action or proceeding relating thereto.

(f)                
In the event that there shall be filed a lien against the Property or
any part thereof pursuant to any Environmental Statute pertaining to Hazardous
Materials, Borrower shall, within ninety (90) days or, in the event that the
applicable Governmental Authority has commenced steps to cause the Premises or
any part thereof to be sold pursuant to the lien, within fifteen (15) days,
from the date that Borrower receives notice of such lien, either (i) pay the
claim and remove the lien from the Property, or (ii) furnish (A) a bond
satisfactory to Lender in the amount of the claim out of which the lien arises,
(B) a cash deposit in the amount of the claim out of which the lien arises, or
(C) other security reasonably satisfactory to Lender in an amount sufficient to
discharge the claim out of which the lien arises.

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

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

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

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

-100-

 

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

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

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

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

Notwithstanding the foregoing provisions of this Section
16.02 to the contrary, Borrower shall have no obligation to indemnify Lender
for liabilities, claims, damages, penalties, causes of action, costs and
expenses relative to the foregoing which (1) result directly from Lender's or
any Indemnified Parties' willful misconduct or gross negligence or (2) occur
both (x) subsequent to the date that Lender or its designees takes possession
of the Property through foreclosure, deed in lieu of foreclosure, or other
means and (y) through no act or omission of Borrower or any of its agents.  Any
amounts payable to Lender by reason of the application of this Section 16.02
shall be secured by this Security Instrument and shall, upon demand by Lender,
become immediately due and payable and shall bear interest at the Default Rate
from the date so demanded by Lender until paid.

This indemnification shall survive the termination of this
Security Instrument whether by repayment of the Debt, foreclosure or deed in
lieu thereof, assignment, or otherwise.  The indemnity provided for in this
Section 16.02 shall not be included in any exculpation of Borrower or its
principals from personal liability provided for in this Security Instrument or
in any of the other Loan Documents.  Nothing in this Section 16.02 shall be deemed
to deprive Lender of any rights or remedies otherwise available to Lender,
including, without limitation, those rights and remedies provided elsewhere in
this Security Instrument or the other Loan Documents.

ARTICLE XVII

ASSIGNMENTS

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

 

-101-

 

ARTICLE XVIII

MISCELLANEOUS

Section
18.01      Right
of Entry.  Lender and its agents shall have the right to enter and
inspect the Property or any part thereof at all reasonable times, and, except
in the event of an emergency, upon reasonable notice and to inspect Borrower's
books and records and to make abstracts and reproductions thereof.

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

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

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

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

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

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

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

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

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

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

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

Section 18.13    GOVERNING LAW     (A)  THIS SECURITY INSTRUMENT WAS NEGOTIATED IN THE
STATE OF NEW YORK, AND MADE BY BORROWER AND ACCEPTED BY LENDER IN THE STATE OF
NEW YORK, AND THE PROCEEDS OF THE NOTE SECURED HEREBY WERE DISBURSED FROM THE
STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP
TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL
RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS
OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS SECURITY INSTRUMENT AND THE
OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS) AND
ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES (I)
THE PROVISIONS FOR THE CREATION, PERFECTION, PRIORITY AND ENFORCEMENT OF THE
LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER
LOAN DOCUMENTS WITH RESPECT TO THE PROPERTY (OTHER THAN THAT DESCRIBED IN
SUBPARAGRAPH II BELOW) SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW
OF THE STATE OF ILLINOIS AND 

 

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(II) WITH RESPECT TO THE PERFECTION, PRIORITY AND
ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED BY THIS SECURITY
INSTRUMENT AND THE OTHER LOAN DOCUMENTS IN PROPERTY WHOSE PERFECTION AND
PRIORITY IS COVERED BY ARTICLE 9 OF THE UCC (INCLUDING, WITHOUT LIMITATION, THE
ACCOUNTS), THE LAW OF THE JURISDICTION APPLICABLE IN ACCORDANCE WITH SECTIONS
9-301 THROUGH 9-307 OF THE UCC AS IN EFFECT IN THE STATE OF NEW YORK SHALL
GOVERN.  TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY
UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY
OTHER JURISDICTION GOVERNS THIS SECURITY INSTRUMENT AND THE NOTE, AND THIS
SECURITY INSTRUMENT AND THE NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF
THE NEW YORK GENERAL OBLIGATIONS LAW EXCEPT AS SPECIFICALLY SET FORTH ABOVE.

(B)       BORROWER DOES HEREBY
DESIGNATE AND APPOINT

            111
EAST WACKER, LLC

            C/O
NATIONAL REGISTERED AGENTS, INC. 

            160
GREENTREE DRIVE, SUITE 101

            DOVER,
DELAWARE 19904

AS ITS AUTHORIZED AGENT TO
ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY
BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING, AND AGREES THAT SERVICE OF
PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE
MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED
IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT,
ACTION OR PROCEEDING.  BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY
CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND
FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT (WHICH SUBSTITUTE
AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF
PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS
AUTHORIZED AGENT IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.  

-104-

 

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

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

-105-

 

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

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

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

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

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

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

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

-106-

 

 

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

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

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

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

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

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

-107-

 

 

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

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

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

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

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

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

 

-108-

 

 

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

Section
18.29      Intentionally
Omitted.

Section
18.30      Intentionally
Omitted.

Section
18.31      Intentionally
Omitted.

Section 18.32    
Exculpation.    Notwithstanding anything herein or in any other Loan
Document to the contrary, except as otherwise set forth in this Section 18.32
to the contrary, Lender shall not enforce the liability and obligation of Borrower
or (a) if Borrower is a partnership, its constituent partners or any of their
respective partners, (b) if Borrower is a trust, its beneficiaries or any of
their respective Partners (as hereinafter defined), (c) if Borrower is a
corporation, any of its shareholders, directors, principals, officers or
employees, or (d) if Borrower is a limited liability company, any of its
members, directors, principals, officers or employees (the Persons described in
the foregoing clauses (a) - (d), as the case may be, are hereinafter referred
to as the "Partners") to perform and observe the obligations contained in this
Security Instrument or any of the other Loan Documents by any action or
proceeding wherein a money judgment shall be sought against Borrower or the Partners,
except that Lender may bring a foreclosure action, action for specific
performance, or other appropriate action or proceeding (including, without
limitation, an action to obtain a deficiency judgment) solely for the purpose
of enabling Lender to realize upon (i) Borrower's interest in the Property,
(ii) the Rent to the extent (x) received by Borrower (or received by its
Partners) after the occurrence of an Event of Default and not paid to Lender or
applied to Operating Expenses or to the ordinary and necessary expenses of
owning and operating the Property, or (y) distributed to Borrower (or its
Partners, but only to the extent received by its Partners) during or with
respect to any period for which Lender did not receive a Manager Certification
accurate in all material respects confirming and certifying that all Operating
Expenses with respect to the Property which had accrued as of the applicable
date of  

-109-

such Manager Certification had been paid (or if same had not been paid,
that Manager had taken adequate reserves therefor) (all Rent covered by clauses
(x) and (y) being hereinafter referred to as the "Recourse Distributions")
and (iii) any other collateral given to Lender under the Loan Documents (the
collateral described in the foregoing clauses (i) - (iii) is hereinafter
referred to as the "Default Collateral"); provided, however, that any
judgment in any such action or proceeding shall be enforceable against Borrower
and the Partners only to the extent of any such Default Collateral.  The
provisions of this Section shall not, however, (a) impair the validity of the
Debt evidenced by the Note or in any way affect or impair the lien of this
Security Instrument or any of the other Loan Documents or the right of Lender
to foreclose this Security Instrument following the occurrence of an Event of
Default; (b) impair the right of Lender to name Borrower as a party defendant
in any action or suit for judicial foreclosure and sale under this Security
Instrument; (c) affect the validity or enforceability of the Note, this
Security Instrument, or any of the other Loan Documents, or impair the right of
Lender to seek a personal judgment against the Guarantor; (d) impair the right
of Lender to obtain the appointment of a receiver; (e) impair the enforcement of
the Assignment; (f) impair the right of Lender to bring suit for a monetary
judgment with respect to fraud or intentional misrepresentation by Borrower, or
any other Person in connection with this Security Instrument, the Note or the
other Loan Documents, and the foregoing provisions shall not modify, diminish
or discharge the liability of Borrower or the Partners with respect to same;
(g) impair the right of Lender to bring suit for a monetary judgment to obtain
the Recourse Distributions received by Borrower including, without limitation,
the right to bring suit for a monetary judgment to proceed against any Partner,
to the extent of any such Recourse Distributions theretofore distributed to and
received by such Partner, and the foregoing provisions shall not modify,
diminish or discharge the liability of Borrower or the Partners with respect to
same; (h) impair the right of Lender to bring suit for a monetary judgment with
respect to Borrower's misappropriation of tenant security deposits or Rent
collected more than one (1) month in advance, and the foregoing provisions
shall not modify, diminish or discharge the liability of Borrower or the
Partners with respect to same; (i) impair the right of Lender to obtain Loss
Proceeds due to Lender pursuant to this Security Instrument; (j) impair the
right of Lender to enforce the provisions of Sections 2.02(g), 12.01, 16.01 or
16.02, inclusive of this Security Instrument, even after repayment in full by
Borrower of the Debt or to bring suit for a monetary judgment against Borrower
or the Partners with respect to any obligation set forth in said Sections; (k)
prevent or in any way hinder Lender from exercising, or constitute a defense,
or counterclaim, or other basis for relief in respect of the exercise of, any
other remedy against any or all of the collateral securing the Note as provided
in the Loan Documents; (l) impair the right of Lender to bring suit for a
monetary judgment with respect to any misapplication or conversion of Loss
Proceeds, and the foregoing provisions shall not modify, diminish or discharge
the liability of Borrower or the Partners with respect to same; (m) impair the
right of Lender to sue for, seek or demand a deficiency judgment against
Borrower solely for the purpose of foreclosing the Property or any part
thereof, or realizing upon the Default Collateral; provided, however, that any
such deficiency judgment referred to in this clause (m) shall be enforceable
against Borrower and the Partners (but only to the extent distributed to and
actually received by such Partner) only to the extent of any of the Default
Collateral; (n) impair the ability of Lender to bring suit for a monetary
judgment with respect to intentional damage, arson or waste to or of the
Property; (o) impair the right of Lender to bring a suit for a monetary
judgment in the event of the exercise of any right or remedy under any federal,
state or local forfeiture laws resulting in the loss of the lien of this
Security Instrument, or the priority thereof, against the Property; (p) be
deemed a waiver of any right which Lender may have under Sections 5.06(a),
5.06(b), 1111(b) or any other provision of the Bankruptcy Code to file a claim
for the full amount of the Debt or to require that all collateral shall
continue to secure all of the Debt; (q) impair the right of Lender to bring
suit for monetary judgment with respect to any losses resulting  

-110-

 

from any
claims, actions or proceedings initiated by Borrower (or any Affiliate of
Borrower) alleging that the relationship of Borrower and Lender is that of
joint venturers, partners, tenants in common, joint tenants or any relationship
other than that of debtor and creditor; or (r) impair the right of Lender to
bring suit for a monetary judgment in the event of a Transfer in violation of
the provisions of Article IX hereof.  The provisions of this Section 18.32
shall be inapplicable to Borrower and the Debt shall be fully recourse to
Borrower if (a) any proceeding, action, petition or filing under the Bankruptcy
Code, or any similar state or federal law now or hereafter in effect relating
to bankruptcy, reorganization or insolvency, or the arrangement or adjustment
of debts, shall be filed by, consented to or acquiesced in by or with respect
to Borrower, or if Borrower shall institute any proceeding for its dissolution
or liquidation, or shall make an assignment for the benefit of creditors or (b)
Borrower or any Affiliate contests or in any material way interferes with,
directly or indirectly (collectively, a "Contest") any foreclosure
action, UCC sale or other material remedy exercised by Lender upon the
occurrence of any Event of Default whether by making any motion, bringing any
counterclaim, claiming any defense, seeking any injunction or other restraint,
commencing any action, or otherwise (provided that if any such Person obtains a
non-appealable order successfully asserting a Contest, Borrower shall have no
liability under this clause (b)), in which event Lender shall have recourse
against all of the assets of Borrower including, without limitation, any right,
title and interest of Borrower in and to the Property, any partnership
interests in Borrower and any Recourse Distributions received by the Partners
of Borrower (but excluding the other assets of such Partners to the extent
Lender would not have had recourse thereto other than in accordance with the
provisions of this Section 18.32).

Section 18.33     
Component Notes.    Lender, without in any way limiting Lender's other rights
hereunder, in its sole and absolute discretion, shall have the right at any time
to require Borrower to execute and deliver "component" notes (including senior
and junior notes) in substitution for the Note, which notes may be paid in such
order of priority as may be designated by Lender, provided that the same is
done in accordance with the terms of the Securitization Cooperation Agreement.

Section 18.34     
Certain Matters Relating to Property Located in the State of
Illinois.    With respect to the
Property which is located in the State of Illinois, notwithstanding anything
contained herein to the contrary: -109-

 

(a)               
The Note provides, among other things,
for final payment of principal and interest under the Note, if not sooner paid
or payable as provided therein, to be due on August 11, 2016.

(b)              
The Debt secured hereby shall in no
event exceed an amount equal to two hundred percent (200%) of the face amount
of the Note.

(c)               
Illinois Foreclosure Law.

                                                 
(i)               
Borrower hereby waives, to the extent now or hereafter permitted by law,
all rights of redemption and reinstatement of this Security Instrument pursuant
to the Illinois Mortgage Foreclosure Law, 735 ILCS 5/15-1101 et seq. ("IMFL"),
including without limitation Section 15-1601(b) of IMFL, on behalf of itself
and all those taking by, through or under Borrower.  Borrower acknowledges that
the Property does not constitute "agricultural real estate," as such term is
defined in Section 15-1201 of IMFL or "residential real estate," as such term
is defined in Section 15-1219 of IMFL.

-111-

 

                                                
(ii)               
In the event that any provision of this Security Instrument shall be
inconsistent with any provision of IMFL, the provisions of IMFL shall take
precedence over the provisions of this Security Instrument, but shall not
invalidate or render unenforceable any other provision of this Security
Instrument that can be construed in a manner consistent with IMFL.  If any
provision of this Security Instrument shall grant to Lender any rights or
remedies upon any Event of Default by Borrower which are more limited than the
rights that would otherwise be vested in Lender under IMFL in the absence of
said provision, Lender shall be vested with the rights granted in IMFL to the
full extent permitted by law.  Without limiting the generality of the
foregoing, all expenses incurred by Lender to the extent reimbursable under
IMFL, whether incurred before or after any decree or judgment of foreclosure,
and whether or not enumerated in this Security Instrument, shall be added to
the Debt secured by this Security Instrument or by the judgment of foreclosure.

(d)              
Borrower shall include a "no lien"
provision in any property management agreement hereafter entered into by
Borrower with a property manager for the Property, whereby the property manager
waives and releases any and all mechanics' lien rights that the property
manager, or anyone claiming through or under the property manager, may have
pursuant to 770 ILCS 60/1.  Such property management agreement containing such
"no lien" provision or a short form thereof shall, at Lender's request, be
recorded with the Recorder of Deeds of Cook County, Illinois, as appropriate.

(e)               
Financing Statement.

                                                 
(i)               
This Security Instrument also constitutes a financing statement for the
purpose of Section 9-502 of the Illinois Uniform Commercial Code, 810 ILCS
5/9-502, and shall constitute a "fixture filing" under such statute and shall
be filed in the real estate records of Cook County, Illinois.

-112-

 

Name of Debtor:                      111 East Wacker, LLC

Debtor's Mailing Address:        188
East Capitol Street, Suite 1000

                                                One Jackson Place

                                                Jackson, Mississippi 
39201-2195

                                                Attn: Chief Financial Officer

Address of
Property:                111 East Wacker Drive, Chicago, Illinois 60601

Name of Secured Party:            Wachovia Bank, National
Association.

Address of
Secured Party:      8739 Research Drive URP - 4, NC 1075, Charlotte, North
Carolina 28262, Attention:  Commercial Real Estate Services.

                                                
(ii)               
This financing statement covers the following types or items of
property: the Property described in this instrument, and all other items of
personal property now or at any time hereafter owned by Borrower and used in
connection with the Property.

                                              
(iii)               
Some of the above goods are or are to become fixtures on the Land
described herein.  Borrower is the record owner of the Land described herein
upon which the foregoing fixtures and other items and types of property are
located.

(f)                
Borrower covenants and agrees that all
of the proceeds of the Loan secured by this Security Instrument will be used
solely for business purposes and in furtherance of the regular business affairs
of Borrower, and the entire principal obligation secured hereby constitutes: 
(i) a "business loan," as that term is used in, and for all purposes of, the
Illinois Interest Act, 815 ILCS 205/0.01 et seq., including Section 4(1)(c)
thereof; and (ii) a "loan secured by a mortgage on real estate" within the
purview and operation of Section 205/4(1)(l) thereof.

(g)               
All agreements between Borrower and
Lender (including, without limitation, those contained in this Security
Instrument, the Note and any other Loan Documents) are expressly limited so
that in no event whatsoever shall the amount paid or agreed to be paid to Lender
exceed the highest lawful rate of interest permissible under the laws of the
State of Illinois.  If, from any circumstances whatsoever, fulfillment of any
provision hereof or of the Note or any other documents securing the Debt, at
the time performance of such provision shall be due, shall involve the payment
of interest exceeding the highest rate of interest permitted by law which a
court of competent jurisdiction may deem applicable hereto, then, ipso facto,
the obligation to be fulfilled shall be reduced to the highest lawful rate of
interest permissible under the laws of the State of Illinois; and if for any
reason whatsoever, Lender shall ever receive as interest an amount which would
be deemed unlawful, such interest shall be applied to the payment of the last
maturing installment or installments of the Debt secured hereby (whether or not
then due and payable) and not to the payment of interest.

 

(h)               
Wherever provision is made in this
Security Instrument for insurance policies to bear mortgage clauses or other
loss payable clauses or endorsements in favor of Lender, or to confer authority
upon Lender to settle or participate in the settlement of losses under policies
of insurance or to hold and disburse or otherwise control use of insurance
proceeds, from and after the entry of judgment of foreclosure all such rights
and powers of Lender shall continue in Lender as judgment creditor or mortgagee
until confirmation of sale.

(i)                 
Foreclosure.

                                               
(i)              
All advances, disbursements and expenditures made by Lender before and
during a foreclosure of this Security Instrument, and before and after judgment
of foreclosure therein, and at any time prior to sale of the Property, and,
where applicable, after sale of the Property, and during the pendency of any
related proceedings, for the following purposes, in addition to those otherwise
authorized by this Security Instrument or by IMFL (collectively "Protective
Advances") shall have the benefit of all applicable provisions of IMFL,
including those provisions of IMFL hereinbelow referred to:

(A)             
all advances by Lender in accordance with the terms of this Security
Instrument to: (1) preserve or maintain, repair, restore or rebuild the
Improvements upon the Land; (2) preserve the lien of this Security Instrument
or the priority thereof; or (3) enforce this Security Instrument, as referred
to in Subsection (b)(5) of Section 15-1302 of IMFL;

(B)             
payments by Lender of: (1) when due installments of principal, interest
or other obligations in accordance with the terms of any prior lien or
encumbrance; (2) when due installments of real estate taxes and assessments,
general and special and all other taxes and assessments of any kind or nature
whatsoever which are assessed or imposed upon the Property or any part thereof;
(3) other obligations authorized by Lender; or (4) with court approval, any
other amounts in connection with other liens, encumbrances or interests
reasonably necessary to preserve the status of title, as referred to in Section
15-1505 of IMFL;

(C)             
advances by Lender in settlement or compromise of any claims asserted by
claimants under any prior liens;

(D)             
attorneys' fees and other costs incurred: (1) in connection with the
foreclosure of this Security Instrument as referred to in Sections
15-1504(d)(2) and 15-1510 of IMFL; (2) in connection with any action, suit or
proceeding brought by or against Lender for the enforcement of this Security
Instrument or arising from the interest of Lender hereunder; or (3) in the
preparation for the commencement or defense of any such foreclosure or other action
related to this Security Instrument or the Property;

(E)              
Lender's fees and costs, including attorneys' fees, arising between the
entry of judgment of foreclosure and the confirmation hearing as referred to in
Subsection (b)(1) of Section 15-1508 of IMFL;

(F)              
expenses deductible from proceeds of sale as referred to in subsections
(a) and (b) of Section 15-1512 of IMFL;

-2-

 

(G)             
expenses incurred and expenditures made by Lender for any one or more of
the following:  (1) if the Property or any portion thereof constitutes one or
more units under a condominium declaration, assessments imposed upon the unit
owner thereof which are required to be paid; (2) if Lender's interest in the
Property is a leasehold estate under a lease or sublease, rentals or other
payments required to be made by the lessee under the terms of the lease or
sublease; (3) premiums for casualty and liability insurance paid by Lender
whether or not Lender or a receiver is in possession, if reasonably required,
in reasonable amounts, and all renewals thereof, without regard to the
limitation to maintaining of existing insurance in effect at the time any
receiver or Lender takes possession of the Property imposed by Subsection
(c)(1) of Section 15-1704 of IMFL; (4) repair or restoration of damage or
destruction in excess of available insurance proceeds or condemnation awards;
(5) payments required or deemed by Lender to be for the benefit of the Property
or required to be made by the owner of the Property under any grant or
declaration of easement, easement agreement, agreement with any adjoining land
owners or instruments creating covenants or restrictions for the benefit of or
affecting the Property; (6) shared or common expense assessments payable to any
association or corporation in which the owner of the Property is a member in
any way affecting the Property; (7) if the loan secured hereby is a
construction loan, costs incurred by Lender for demolition, preparation for and
completion of construction, as may be authorized by the applicable commitment,
this Security Agreement or other agreement; (8) pursuant to any lease or other
agreement for occupancy of the Improvements for amounts required to be paid by
Borrower; and (9) if this Security Instrument is insured, payments of FHA or
private mortgage insurance required to keep insurance in force.

                                                
(ii)               
All Protective Advances shall be so much additional Debt secured by this
Security Instrument, and shall become immediately due and payable without
notice and with interest thereon from the date of the advance thereof until
paid at the rate due and payable after an Event of Default under the terms of
the Note and this Security Instrument.

                                              
(iii)               
This Security Instrument shall be a lien for all Protective Advances as
to subsequent purchasers and judgment creditors from the time this Security
Instrument is recorded pursuant to Subsection (b) of Section 15-1302 of IMFL.

                                              
(iv)               
 All Protective Advances shall, except to the extent, if any, that any
of the same is clearly contrary to or inconsistent with the provisions of IMFL,
apply to and be included in:

(A)             
determination of the amount of Debt secured by this Security Instrument
at any time;

-3-

 

(B)             
the Debt found due and owing pursuant to this Security Instrument in the
judgment of foreclosure and any subsequent supplemental judgments, orders,
adjudications or findings by the court of any additional Debt becoming due
after such entry of judgment, it being agreed that in any foreclosure judgment,
the court may reserve jurisdiction for such purpose;

(C)             
if right of redemption has not been waived by Borrower in this Security
Instrument, computation of amount required to redeem, pursuant to Subsections
(d)(2) and (e) of Section 15-1603 of IMFL;

(D)             
determination of the amount deductible from sale proceeds pursuant to
Section 15-1512 of IMFL;

(E)              
application of income in the hands of any receiver or mortgagee in
possession; and

(F)              
computation of any deficiency judgment pursuant to Subsections (b)(2)
and (e) of Section 15-1508 and Section 15-1511 of IMFL.

(j)                
In addition to any provision of this Security
Agreement authorizing Lender to take or be placed in possession of the
Property, or for the appointment of a receiver, Lender shall have the right, in
accordance with Sections 15-1701 and 15-1702 of IMFL, to be placed in
possession of the Property or at its request to have a receiver appointed, and
such receiver, or Lender, if and when placed in possession, shall have, in
addition to any other powers provided in this Security Instrument, all powers,
immunities, and duties as provided for in Sections 15-1701 and 15-1703 of IMFL.

[SIGNATURE PAGE
IMMEDIATELY FOLLOWS]

-4-

 

IN WITNESS WHEREOF, Borrower has duly executed this Security
Instrument the day and year first above written.

Borrower's Organizational Identification

Number: 4173735

111 EAST WACKER,
LLC, a Delaware limited liability company

By:_ Parkway
Chicago, LLC, a Delaware  limited liability company, its sole member

By:________________________________ 

Name:

Title:

By: ________________________________ 

Name:

Title:PROMISSORY NOTE

PROMISSORY NOTE

Note Amount:  $148,500,000.00

Maturity Date:  July 11, 2016 

THIS PROMISSORY NOTE (this "Note"), is made as of July
11, 2006 by the undersigned, as maker ("Maker"), in favor of WACHOVIA
BANK, NATIONAL ASSOCIATION and its successors or assigns, as payee
(collectively, "Payee").

R E C I T A L S:

WHEREAS, this Note evidences a loan (the "Loan") made
by Payee to Maker in the original principal amount of ONE HUNDRED FORTY EIGHT
MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($148,500,000.00) (the "Loan
Amount") and secured by, inter alia, that certain Mortgage, Security
Agreement, Assignment of Rents and Fixture Filing of even date herewith (as
same may hereafter be amended, modified or supplemented, the "Security
Instrument") from Maker, as mortgagor in favor of and for the benefit of
Payee as mortgagee, as security for the Loan and the other Loan Documents; and

WHEREAS, Maker and Payee intend these Recitals to be a
material part of this Note.

NOW, THEREFORE, FOR VALUE RECEIVED, Maker does hereby
covenant and promise to pay to the order of Payee, without any counterclaim,
setoff or deduction whatsoever, on the Maturity Date (as hereinafter defined),
in immediately available funds, at Commercial Real Estate Services, 8739
Research Drive URP - 4, NC 1075, Charlotte, North Carolina 28262, or at such
other place as Payee may designate to Maker in writing from time to time, in
legal tender of the United States of America, the Loan Amount and all other
amounts due or becoming due hereunder, to the extent not previously paid in
accordance herewith, together with all interest accrued thereon through the
date the Loan is repaid in full, at the rate of 6.290% per annum (the "Interest
Rate").  Interest shall be computed hereunder based on a 360-day year and based
on the actual number of days elapsed for any period in which interest is being
calculated, including, without limitation, the Interest Only Period
(hereinafter defined).  Interest shall accrue from the date on which funds are
advanced hereunder (regardless of the time of day) through and including the
day on which funds are credited pursuant to Section 2.1 hereof.

SECTION 1.   DEFINITIONS

Defined terms in this Note shall include in the singular
number the plural and in the plural number the singular.  All capitalized terms
not otherwise defined herein shall have the meaning ascribed to them in the
Security Instrument.

SECTION 2.   PAYMENTS AND LOAN TERMS

Section 2.1             
Interest and Principal Payments.

(a)               
Interest only shall be payable in sixty (60) monthly installments, each
in an amount calculated for the applicable Interest Accrual Period pursuant to
the terms of this Note, beginning on August 11, 2006 (the "First Payment
Date"), and continuing on the eleventh (11th) day of each and
every calendar month thereafter through and including July 11, 2011 (the "Interest
Only Period") and, thereafter, principal (based on a thirty (30) year
amortization schedule) and interest shall be payable in equal consecutive
monthly installments of $918,206.81 each, beginning on August 11, 2011 and
continuing on the eleventh (11th) day of each and every calendar
month thereafter through and including June 11, 2016 (each, a "Payment Date"). 
On July 11, 2016 (the "Maturity Date"), the entire outstanding principal
balance hereof, together with all accrued but unpaid interest thereon and all
other amounts due and payable to Payee under the Loan Documents, shall be due
and payable in full.

(b)              
Intentionally Omitted.

(c)               
To the extent any Interest Shortfall on the Loan Amount shall occur and
be payable to Payee, such Interest Shortfall shall accrue additional interest
at the Interest Rate.

(d)              
To the extent Payments (as hereinafter defined) are or become due and
payable under this Note or under any of the other Loan Documents on a day (the
"Due Date") which is not a Business Day, such Payments are and shall be
due and payable on the first Business Day immediately preceding the Due Date
for such Payments.  In the event that any Payment is received after 2:00 p.m. Eastern Time on any day, it shall be deemed received and paid on the subsequent
Business Day.

(e)               
"Interest Accrual Period" shall mean the First Interest Accrual
Period, and, each one (1) month period, which shall commence on the eleventh
(11th) day of each calendar month and end on and include the tenth (10th) day
of the next occurring calendar month.

Section 2.2             
Application of Payments.

(a)               
Each and every payment (a "Payment") made by Maker to Payee in
accordance with the terms of this Note and/or the terms of any one or more of
the other Loan Documents and all other proceeds received by Payee with respect
to the Debt, shall be applied as follows:

-2-

                                                                             
(i)           
Payments other than Unscheduled Payments shall be applied (A)
first, to all Late Charges, Default Rate Interest or other sums due and payable
hereunder or under the other Loan Documents (other than those sums included in
clause (B) of this Section 2.2(a)(i)) in such order and priority as determined
by Payee in its sole discretion, (B) second, to all interest (other than
Default Rate Interest) which shall be due and payable with respect to the Loan
Amount pursuant to the terms hereof as of the date the Payment is received
(including any Interest Shortfalls and interest thereon to the extent permitted
by applicable law), (C) third, after the Interest Only Period, to the Loan
Amount as required by Section 2.1 above, and (D) fourth, on the Maturity Date,
to the Loan Amount until the Loan Amount and all other amounts due and owing to
Payee have been paid in full.

                                                                           
(ii)           
Unscheduled Payments shall be applied at the end of the Interest
Accrual Period in which such Unscheduled Payments are received as a principal
prepayment of the Loan Amount to amortize the Loan Amount.

(b)              
To the extent that Maker makes a Payment or Payee receives any Payment
or proceeds for Maker's benefit, which are subsequently invalidated, declared
to be fraudulent or preferential, set aside or required to be repaid to a
trustee, debtor in possession, receiver, custodian or any other party under any
bankruptcy law, common law or equitable cause, then, to such extent, the
obligations of Maker hereunder intended to be satisfied shall be revived and
continue as if such Payment or proceeds had not been received by Payee.

Section 2.3             
Prepayments; Defeasance.

(a)               
This Note may not be prepaid, in whole or in part (except as otherwise
specifically provided herein), at any time prior to the Payment Date occurring
three (3) Payment Dates immediately prior to the Maturity Date (the "Lockout
Expiration Date").  In the event that Maker wishes to have the Property (as
hereinafter defined) released from the lien of the Security Instrument prior to
the Lockout Expiration Date, Maker's sole option, except as otherwise
specifically provided herein, shall be a Defeasance (as hereinafter defined)
upon satisfaction of the terms and conditions set forth in Section 2.3(d)
hereof.  This Note may be prepaid in whole but not in part without premium or
penalty on any Payment Date occurring on or after the Lockout Expiration Date
or on any Business Day after the Payment Date that is two (2) Payment Dates
immediately preceding the Maturity Date provided (i) written notice of such
prepayment is received by Payee not more than one hundred twenty (120) days and
not less than thirty (30) days prior to the date of such prepayment, and (ii)
such prepayment is accompanied by all interest accrued hereunder through and
including the date of such prepayment, all Interest Shortfall if the payment is
not made on a Payment Date and all other sums due hereunder or under the other
Loan Documents.  If, upon any such permitted prepayment on any Payment Date
occurring on or after the Lockout Expiration Date, the aforesaid prior written
notice has not been timely received by Payee, there shall be due a prepayment
fee equal to the lesser of (i) thirty (30) days' interest computed at the Note
Rate on the outstanding principal balance of this Note so prepaid and (ii)
interest computed at the Note Rate on the outstanding principal balance of this
Note so prepaid that would have been payable for the period from, and
including, the date of prepayment through the Maturity Date, as though such
prepayment had not occurred.

-3-

(b)              
If, prior to the Lockout Expiration Date, the indebtedness evidenced by
this Note shall have been declared due and payable by Payee pursuant to Article
 III hereof or the provisions of any other Loan Document due to the occurrence
of an Event of Default, then, in addition to the indebtedness evidenced by this
Note being immediately due and payable, there shall also then be immediately
due and payable a prepayment fee in an amount equal to the Yield Maintenance
Premium (as hereinafter defined) based on the entire indebtedness on the date
of such acceleration.  The term "Yield Maintenance Premium" shall mean
an amount equal to the greater of (A) one percent (1.0%) of the principal
amount being prepaid, and (B) the present value of a series of payments each
equal to the Payment Differential (as hereinafter defined) and payable on each
Payment Date over the remaining original term of this Note and on the Maturity
Date, discounted at the Reinvestment Yield (as hereinafter defined) for the
number of months remaining as of the date of such prepayment to each such
Payment Date and the Maturity Date.  The term "Payment Differential"
shall mean an amount equal to (i) the Note Rate less the Reinvestment Yield,
divided by (ii) twelve (12) and multiplied by (iii) the principal sum
outstanding under this Note after application of the constant monthly payment
due under this Note on the date of such prepayment, provided that the Payment
Differential shall in no event be less than zero.  The term "Reinvestment
Yield" shall mean an amount equal to the lesser of (i) the yield on the
U.S. Treasury issue (primary issue) with a maturity date closest to the
Maturity Date, or (ii) if applicable, the yield on the U.S. Treasury issue
(primary issue) with a term equal to the remaining average life of the
indebtedness evidenced by this Note, with each such yield being based on the
bid price for such issue as published in the Wall Street Journal on the date
that is fourteen (14) days prior to the date of such prepayment (or, if such
bid price is not published on that date, the next preceding date on which such
bid price is so published) and converted to a monthly compounded nominal
yield.  In the event that any prepayment fee is due hereunder, Payee shall deliver
to Maker a statement setting forth the amount and determination of the
prepayment fee, and, provided that Payee shall have in good faith applied the
formula described above, Maker shall not have the right to challenge the
calculations or the method of calculation set forth in any such statement in
the absence of manifest error, which calculation may be made by Payee on any
day during the fifteen (15) day period preceding the date of such prepayment. 
Payee shall not be obligated or required to have actually reinvested the
prepaid principal balance at the Reinvestment Yield or otherwise as a condition
to receiving the prepayment fee.

-4-

(c)               
Partial prepayments of this Note shall not be permitted, except for
partial prepayments resulting from Payee's election to apply insurance or
condemnation proceeds to reduce the outstanding principal balance of this Note
as specifically provided in the Security Instrument, in which event no
prepayment fee or premium shall be due unless, at the time of either Payee's
receipt of such proceeds or the application of such proceeds to the outstanding
principal balance of this Note, an Event of Default shall have occurred (unless
the same has been waived by Payee or cured and such cure accepted by Payee),
which Event of Default is unrelated to the applicable casualty or condemnation,
in which event the applicable prepayment fee or premium shall be due and
payable based upon the amount of the prepayment (as such prepayment fee is
calculated pursuant to clause (b) above).  No notice of prepayment shall be
required under the circumstances specified in the preceding sentence.  No
principal amount repaid may be reborrowed.  Any such partial prepayments of
principal shall be applied to the unpaid principal balance evidenced hereby but
such application shall not reduce the amount of the fixed monthly installments
required to be paid pursuant to Section 2.1(a) above.  Except as otherwise
expressly provided in this Section, the prepayment fees provided above shall be
due, to the extent permitted by applicable law, under any and all circumstances
where all or any portion of this Note is paid prior to the Maturity Date,
whether such prepayment is voluntary or involuntary, including, without
limitation, if such prepayment results from Payee's exercise of its rights upon
the occurrence of an Event of Default, or an event which, with notice or the
passage of time, or both, would constitute an Event of Default, and
acceleration of the Maturity Date of this Note (irrespective of whether
foreclosure proceedings have been commenced), and shall be in addition to any
other sums due hereunder or under any of the other Loan Documents.  No tender
of a prepayment of this Note with respect to which a prepayment fee is due
shall be effective unless such prepayment is accompanied by the applicable
prepayment fee.

(d)              
  (i)  On any Payment Date on or after the earlier to occur of (x) three
(3) years after the date hereof, and (y) the day immediately following the date
which is two (2) years after the "startup day," within the meaning of Section
860G(a) (9) of the Internal Revenue Code of 1986, as amended from time to time
or any successor statute (the "Code"), of a
"real estate mortgage investment conduit," within the meaning of Section 860D
of the Code (a "REMIC Trust"), that holds
this Note, and provided no Event of Default has occurred (unless the same has
been waived by Payee or cured and such cure accepted by Payee) hereunder or
under any of the other Loan Documents, at Maker's option, Payee shall cause the
release of the Property from the lien of the Security Instrument and the other
Loan Documents (a "Defeasance") upon the
satisfaction of the following conditions:

(A)             
Maker shall give not more than ninety (90) days' or less than thirty
(30) days' prior written notice to Payee specifying the date Maker intends for
the Defeasance to be consummated (the "Release Date"),
which date shall be a Payment Date.

(B)             
All accrued and unpaid interest and all other sums due under this
Note and under the other Loan Documents up to and including the Release Date
shall be paid in full on or prior to the Release Date.

(C)             
Maker shall deliver to Payee on or prior to the Release Date:

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(1)              
a sum of money in immediately available funds (the "Defeasance Deposit"), which shall be sufficient
to enable Payee to purchase, through means and sources customarily employed and
available to Lender for the account of Maker, (x) direct, non-callable, fixed
rate obligations of the United States of America or (y) non-callable, fixed
rate obligations, other than U.S. Treasury Obligations, that are "government
securities" within the meaning of Section 2(a)(16) of the Investment Company
Act of 1940, as amended, that provide for payments prior, but as close as
possible, to all successive monthly Payment Dates occurring after the Release
Date and to the Maturity Date, with each such payment being equal to or greater
than the amount of the corresponding installment of principal and/or interest
required to be paid under this Note (including, but not limited to, all amounts
due on the Maturity Date) for the balance of the term hereof (the "Defeasance Collateral"), each of which shall be
duly endorsed by the holder thereof as directed by Payee or accompanied by a
written instrument of transfer in form and substance satisfactory to Payee in
its sole discretion (including, without limitation, such instruments as may be
required by the depository institution holding such securities or the issuer
thereof, as the case may be, to effectuate book-entry transfers and pledges
through the book-entry facilities of such institution) in order to perfect upon
the delivery of the Defeasance Security Agreement (as hereinafter defined) the
first priority security interest in the Defeasance Collateral in favor of Payee
in conformity with all applicable state and federal laws governing granting of
such security interests.

(2)              
a pledge and security agreement, in form and substance reasonably
satisfactory to Payee, creating a first priority security interest in favor of
Payee in the Defeasance Collateral (the "Defeasance
Security Agreement");

(3)              
a certificate of Maker certifying that all of the requirements set forth
in this subsection 2.3(d)(i) have been satisfied;

(4)              
one or more opinions of counsel for Maker (including without limitation
a non-consolidation opinion, if requested) in form and substance and delivered
by counsel which would be reasonably satisfactory to Payee stating, among other
things, that (i) Payee has a perfected first priority security interest in the
Defeasance Collateral and that the Defeasance Security Agreement is enforceable
against Maker, in accordance with its terms, (ii) in the event of a bankruptcy
proceeding or similar occurrence with respect to Maker, none of the Defeasance
Collateral nor any proceeds thereof will be property of Maker's estate under
Section 541 of the U.S. Bankruptcy Code, as amended, or any similar statute and
the grant of security interest therein to Payee shall not constitute an
avoidable preference under Section 547 of the U.S. Bankruptcy Code, as amended,
or applicable state law, (iii) the release of the lien of the Security
Instrument and the pledge of Defeasance Collateral will not directly or
indirectly result in or cause any REMIC Trust that then holds this Note to fail
to maintain its status as a REMIC Trust and (iv) the defeasance will not cause
any REMIC Trust to be an "investment company" under the Investment Company Act
of 1940;

(5)              
evidence in writing from any applicable Rating Agency to the effect that
the Defeasance will not result in a downgrading, withdrawal or qualification of
the respective ratings in effect immediately prior to such Defeasance for any
Securities (as hereinafter defined) issued in connection with the
securitization which are then outstanding; provided, however, no
evidence from a Rating Agency shall be required if this Note does not meet the
then-current review requirements of such Rating Agency.

(6)              
a certificate in form and scope acceptable to Payee in its sole
discretion from an acceptable independent accountant certifying that the Defeasance
Collateral will generate amounts sufficient to make all payments of principal
and interest due under this Note (including the scheduled outstanding principal
balance of the Loan due on the Maturity Date);

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(7)              
Maker and any guarantor or indemnitor of Maker's obligations under the
Loan Documents for which Maker has personal liability executes and delivers to
Payee such documents and agreements as Payee shall reasonably require to
evidence and effectuate the ratification of such personal liability and guaranty
or indemnity, respectively;

(8)              
such other certificates, documents or instruments as Payee may
reasonably require; and

(9)              
payment of all fees, costs, expenses and charges incurred by Payee in
connection with the Defeasance of the Property and the purchase of the
Defeasance Collateral, including, without limitation, all legal fees and costs
and expenses incurred by Payee or its agents in connection with release of the
Property, review of the proposed Defeasance Collateral and preparation of the
Defeasance Security Agreement and related documentation, any revenue,
documentary, stamp, intangible or other taxes, charges or fees due in
connection with transfer of the Note, assumption of the Note, or substitution
of collateral for the Property shall be paid on or before the Release Date. 
Without limiting Maker's obligations with respect thereto, Payee shall be
entitled to deduct all such fees, costs, expenses and charges from the
Defeasance Deposit to the extent of any portion of the Defeasance Deposit which
exceeds the amount necessary to purchase the Defeasance Collateral.

(D)             
In connection with the Defeasance Deposit, Maker hereby
authorizes and directs Payee using means and sources customarily employed and
available to Payee to use the Defeasance Deposit to purchase for the account of
Maker the Defeasance Collateral.  Furthermore, the Defeasance Collateral shall
be arranged such that payments received from such Defeasance Collateral shall
be paid directly to Payee to be applied on account of the indebtedness of this
Note.  Any part of the Defeasance Deposit in excess of the amount necessary to
purchase the Defeasance Collateral and to pay the other and related costs Maker
is obligated to pay under this Section 2.3 shall be refunded to Maker.

                                       
(ii)           
Upon compliance with the requirements of subsection 2.3(d)(i),
the Property shall be released from the lien of the Security Instrument and the
other Loan Documents, and the Defeasance Collateral shall constitute collateral
which shall secure this Note and all other obligations under the Loan
Documents.  Payee will, at Maker's expense, execute and deliver any agreements
reasonably requested by Maker to release the lien of the Security Instrument
from the Property.

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(iii)           
Upon the release of the Property in accordance with this Section
2.3(d), Maker shall assign all its obligations and rights under this Note,
together with the pledged Defeasance Collateral, to a newly created successor
entity which complies with the terms of Section 2.02(g) of the Security
Instrument designated by Maker and approved by Payee in its sole discretion. 
Such successor entity shall execute an assumption agreement in form and
substance satisfactory to Payee in its sole discretion pursuant to which it
shall assume Maker's obligations under this Note and the Defeasance Security
Agreement.  As conditions to such assignment and assumption, Maker shall (x)
deliver to Payee an opinion of counsel in form and substance reasonably
satisfactory to a prudent lender and delivered by counsel reasonably
satisfactory to a prudent lender stating, among other things, that such
assumption agreement is enforceable against Maker and such successor entity in
accordance with its terms and that this Note and the Defeasance Security
Agreement as so assumed, are enforceable against such successor entity in
accordance with their respective terms, and (y) pay all costs and expenses
(including, but not limited to, legal fees) incurred by Payee or its agents in
connection with such assignment and assumption (including, without limitation,
the review of the proposed transferee and the preparation of the assumption
agreement and related documentation).  Upon such assumption, Maker shall be
relieved of its obligations hereunder, under the other Loan Documents other
than as specified in Section 2.3(d)(i)(C)(7) above and under the
Defeasance Security Agreement (or other Defeasance document).

SECTION 3.      
DEFAULTS

Section 3.1             
Events of Default.

This Note is secured by, among other things, the Security
Instrument.  It is hereby expressly agreed that should any default occur in the
payment of principal or interest as stipulated above and such payment is not
made on the date such payment is due, or should any other default not be cured
within any applicable grace or notice period occur under any other Loan
Document, then an event of default (each, an "Event
of Default") shall exist hereunder, and in such event the
indebtedness evidenced hereby, including all sums advanced or accrued hereunder
or under any other Loan Document, and all unpaid interest accrued thereon,
shall, at the option of Payee and without notice to Maker, at once become due
and payable and may be collected forthwith, whether or not there has been a
prior demand for payment and regardless of the stipulated date of maturity.

Section 3.2             
Remedies.

If an Event of Default shall occur hereunder or under any
other Loan Document, interest on the Principal Amount and, to the extent
permitted by applicable law, all accrued but unpaid interest on the Principal
Amount shall, commencing on the date of the occurrence of such Event of Default,
at the option of Payee, immediately and without notice to Maker, accrue
interest at the Default Rate until such Event of Default is cured or if not
cured or such cure is not accepted by Payee, until the repayment of the Debt. 
The foregoing provision shall not be construed as a waiver by Payee of its
right to pursue any other remedies available to it under the Security
Instrument, or any other Loan Document, nor shall it be construed to limit in
any way the application of the Default Rate.  If there is more than one Maker
of this Note, then subject to the provisions of Section 4 hereof, the
undersigned parties shall each be jointly and severally liable to pay the
entire Loan Amount and all other sums becoming due hereunder or under the other
Loan Documents.

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SECTION 4.      
EXCULPATION

Section 4.1             
Exculpation.

Notwithstanding anything to the contrary contained in this
Note or the other Loan Documents, the obligations of Maker hereunder shall be
non-recourse except with respect to the Property and as otherwise provided in
Section 18.32 of the Security Instrument, the terms of which are incorporated
herein.

SECTION 5.      
MISCELLANEOUS

Section 5.1             
Further Assurances.

Maker shall execute and acknowledge (or cause to be executed
and acknowledged) and deliver to Payee all documents, and take all actions,
reasonably required by Payee from time to time to confirm the rights created or
now or hereafter intended to be created under this Note and the other Loan
Documents, to protect and further the validity, priority and enforceability of
this Note and the other Loan Documents, to subject to the Loan Documents any
property of Maker intended by the terms of any one or more of the Loan
Documents to be encumbered by the Loan Documents, or otherwise carry out the
purposes of the Loan Documents and the transactions contemplated thereunder;
provided, however, that no such further actions, assurances and confirmations
shall increase Maker's obligations under this Note or any Loan Documents.

Section 5.2             
Modification, Waiver in Writing.

No modification, amendment, extension, discharge, termination
or waiver (a "Modification") of any provision of this Note, the Security
Instrument or any one or more of the other Loan Documents, nor consent to any
departure by Maker therefrom, shall in any event be effective unless the same
shall be in a writing signed by the party against whom enforcement is sought,
and then such waiver or consent shall be effective only in the specific
instance, and for the purpose, for which given.  Except as otherwise expressly
provided herein, no notice to, or demand on, Maker shall entitle Maker to any
other or future notice or demand in the same, similar or other circumstances. 
Payee does not hereby agree to, nor does Payee hereby commit itself to, enter
into any Modification.  However, in the event Payee does ever agree to a Modification,
such Modification shall only be upon the terms and conditions set forth in the
Security Instrument.

Section 5.3             
Costs of Collection.

-9-

Maker agrees to pay all costs and expenses of collection
incurred by Payee, in addition to principal, interest and late or delinquency
charges (including, without limitation, reasonable attorneys' fees and
disbursements) and including all costs and expenses incurred in connection with
the pursuit by Payee of any of its rights or remedies referred to in Section 3
hereof or its rights or remedies referred to in any of the Loan Documents or
the protection of or realization of collateral or in connection with any of
Payee's collection efforts, whether or not suit on this Note, on any of the
other Loan Documents or any foreclosure proceeding is filed, and all such costs
and expenses shall be payable on demand, together with interest at the Default
Rate thereon, and also shall be secured by the Security Instrument and all
other collateral at any time held by Payee as security for Maker's obligations
to Payee.

Section 5.4             
Maximum Amount.

(a)               
It is the intention of Maker and Payee to conform strictly to the usury
and similar laws relating to interest from time to time in force, and all
agreements between Maker and Payee, whether now existing or hereafter arising
and whether oral or written, are hereby expressly limited so that in no
contingency or event whatsoever, whether by acceleration of maturity hereof or
otherwise, shall the amount paid or agreed to be paid in the aggregate to Payee
as interest hereunder or under the other Loan Documents or in any other
security agreement given to secure the Debt, or in any other document
evidencing, securing or pertaining to the Debt, exceed the maximum amount
permissible under applicable usury or such other laws (the "Maximum Amount"). 
If under any circumstances whatsoever fulfillment of any provision hereof, or
any of the other Loan Documents, at the time performance of such provision
shall be due, shall involve transcending the Maximum Amount, then ipso facto, the
obligation to be fulfilled shall be reduced to the Maximum Amount.  For the
purposes of calculating the actual amount of interest paid and/or payable
hereunder, in respect of laws pertaining to usury or such other laws, all sums
paid or agreed to be paid to the holder hereof for the use, forbearance or
detention of the Debt, outstanding from time to time shall, to the extent
permitted by applicable law, be amortized, prorated, allocated and spread from
the date of disbursement of the proceeds of this Note until payment in full of
all of the Debt, so that the actual rate of interest on account of the Debt is
uniform through the term hereof.  The terms and provisions of this Section 5.4
shall control and supersede every other provision of all agreements between
Maker or any endorser and Payee.

(b)              
If under any circumstances Payee shall ever receive an amount which
would exceed the Maximum Amount, such amount shall be deemed a payment in
reduction of the Loan Amount owing hereunder and any other obligation of Maker
in favor of Payee, and shall be so applied in accordance with Section 2.2
hereof, or if such excessive interest exceeds the unpaid balance of the Loan
Amount and any other obligation of Maker in favor of Payee, the excess shall be
deemed to have been a payment made by mistake and shall be refunded to Maker.

Section 5.5             
Waivers.

Maker hereby expressly and unconditionally waives
presentment, demand, protest, notice of protest or notice of any kind,
including, without limitation, any notice of intention to accelerate and notice
of acceleration, except as expressly provided herein or in the other Loan
Documents, and in connection with any suit, action or proceeding brought by
Payee on this Note, any and every right it may have to (a) interpose any
counterclaim in any action  (other than a counterclaim which can only be
asserted in the suit, action or proceeding brought by Payee on this Note and
cannot be maintained in a separate action) and (b) have the same consolidated
with any other or separate suit, action or proceeding.

-10-

Section 5.6             
Governing Law.

THIS NOTE WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE
BY MAKER AND ACCEPTED BY PAYEE IN THE STATE OF NEW YORK, AND THE PROCEEDS OF
THIS NOTE WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES
AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING
TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING
THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, THIS NOTE AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO
PRINCIPLES OF CONFLICT LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF
AMERICA.  TO THE FULLEST EXTENT PERMITTED BY LAW, MAKER HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION
GOVERNS THIS NOTE AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF
THE NEW YORK GENERAL OBLIGATIONS LAW.

Section 5.7             
Waiver of Jury Trial.  MAKER, TO THE FULL EXTENT
PERMITTED BY LAW, HEREBY KNOWINGLY, INTENTIONALLY AND
VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL,
WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY
JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY
RELATING TO THE MAKER'S OBLIGATIONS HEREUNDER OR ANY CONDUCT, ACT OR OMISSION
OF PAYEE OR MAKER, OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, PARTNERS,
MEMBERS, EMPLOYEES, AGENTS OR ATTORNEYS, OR ANY OTHER PERSONS AFFILIATED WITH PAYEE
OR MAKER, IN EACH OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE.

Section 5.8             
Headings.

The Section headings in this Note are included herein for
convenience of reference only and shall not constitute a part of this Note for
any other purpose.

Section 5.9             
Assignment.

Payee shall have the right to transfer, sell and assign this
Note, the Security Instrument and/or any of the other Loan Documents, and the
obligations hereunder, to any Person.  All references to "Payee" hereunder
shall be deemed to include the assigns of the Payee.

Section 5.10         
Severability.

-11-

Wherever possible, each provision of this Note shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Note shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Note.

Section 5.11         
Joint and Several.

If Maker consists of more than one Person or party, the
obligations and liabilities of each such Person or party hereunder shall be
joint and several.

[SIGNATURE PAGE
IMMEDIATELY FOLLOWS]

-12-

IN WITNESS WHEREOF, this Note has been duly executed by the
Maker as of the day and year first written above.

                                                                                MAKER:  111 East Wacker LLC

  

  By:____________________________________ 

Name:

Title:

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