Document:

<PAGE>

                                                                   EXHIBIT 10.16

GMAC Commercial Mortgage
200 Wilmer Road
Horsham, PA 19044-8015
www.gmacom.com

March 28, 2005                                                       [GMAC LOGO]

PG (MULTI-16) L.P.
c/o W.P. Carey & Co. LLC
50 Rockefeller Plaza-2nd Floor
New York, NY 10020
Attn.: Director, Asset Management

RE: PG(MULTI-16) LP-Loan Number: 0110-46675 (the "Loan")

Ladies and Gentlemen:

You have requested that GMAC Commercial Mortgage Corporation ("GMACCM"), in its
role as the servicer of the Loan, consent to an Amended and Restated Deed of
Lease Agreement (the "Lease") by and between PG (MULTI-16) LP, a Delaware
limited partnership ("Borrower") and Ply Gem Industries, Inc., a Delaware
corporation, MWN Holding, Inc., a Delaware corporation, Great Lakes Window,
Inc., an Ohio corporation, MW Manufacturers Holding Corp., a Delaware
corporation, Napco Window Systems, Inc., a Delaware corporation, Kroy Building
Products, Inc., a Delaware corporation, Napco, Inc., a Delaware corporation,
Thermal-Gard, Inc., a Pennsylvania corporation, and Variform, Inc., a Missouri
corporation (collectively "Tenant") for property located in Kearny, Missouri;
Fair Bluff, North Carolina, York, Nebraska, Toledo, Ohio, Rocky Mount, Virginia
and Martinsburg, West Virginia (the "Property") in accordance with the
provisions of the Loan Agreement, dated October 22, 2004 between Borrower and
GMAC Commercial Mortgage Bank, a Utah Industrial Bank.

This letter is to inform you that GMACCM hereby consents to the execution of the
Lease and that the obligations of the Borrower to obtain lender's consent prior
to entering into a lease on the Property are deemed satisfied.

However, please note that this consent shall not be construed to be a
modification or waiver of any of the terms or conditions of any of the documents
executed in connection with the Loan or a subordination of the lender's lien on
the Property to the rights of the Tenant under the Lease, and shall not create
any rights or obligations between the lender and the Tenant.

Sincerely,

/s/ Gary A. Routzahn
-----------------------
Gary A. Routzahn
Vice President, Manager

<PAGE>

                                PEPE & HAZARD LLP
                                INTEROFFICE MEMO

TO:   GMAC Commercial Mortgage Corporation

FROM: Adam F. Zweifler

DATE: March 22, 2005

RE:   GMAC/ Ply Gem: Amended and Restated Deed of Lease Agreement

      You have asked me to review the draft Amended and Restated Deed of Lease
Agreement dated March 11, 2005, summarize the modifications and determine
whether the modifications will have an adverse affect on the loan secured by the
property which is subject to the lease.

      As discussed below, the modifications will have no significant effect on
the lender or the loan from a legal standpoint. The changes and my evaluation
are as follows:

1.    There were A number of clean-up changes due to the fact that the Lease has
been in effect for nearly 7 months now. Certain terms can now be set forth
specifically. such as the Commencement and Termination Dates (August 27, 2004
and August 31, 2024, respectively) and the rent due dates (25th day of
September, December, March and June). References to the Ohio and North Carolina
Agreement to Convey, transfer dates and Letters of Credit throughout the Amended
and Restated Deed of Lease Agreement have been deleted as the bonds encumbering
those properties have been repaid and the landlord's acquisition of those
properties completed. See Sections 3(a), 3(c), 4(b), 5(a), 6, and 31(a), 32 and
40(m).

2.    In the event of a casualty, the tenant no longer has the right to
terminate the Lease and repurchase the Property from the landlord (deleted
Section 20). Under the modified Lease, if there is a casualty, there will be no
abatement of rent and the tenant has an absolute obligation to restore. See
Sections 17(c), 18(a) and 20.

3.    In the event of a condemnation, if the tenant terminates the Lease (the
standard for termination is: the tenant will be unable to conduct its business
in the premises in question and will forever abandon its operations there), the
landlord will no longer be able to require the tenant to purchase the affected
Property from the landlord. Instead, the Lease will terminate as to the affected
premises and the landlord may keep that portion of the award equal to its
"Acquisition Cost" for the affected premises and the Lender will have the right
to apply the proceeds to repayment of the Loan. The Acquisition Cost is set
forth in Exhibit E to the Lease and is approximately 40% more than the allocated
loan amounts. The loan documents do not require payment of

<PAGE>

prepayment fee in the event of a paydown resulting from a condemnation, so the
allocation of the award to the landlord, will allow for repayment of the
allocable portion of the Loan. See Sections 18 and 20.

4.    With respect to renewal terms, the lease was changed to modify the method
by which rent is set at the beginning of each renewal term. In the original
lease, at the beginning of each renewal term (the Lease is for an initial term
of 20-years followed by an unlimited number of 10-year renewal terms) the rent
would be reset based upon the increase in CPI since the beginning of the term
then expiring. Under the Amended and Restated Lease, the rent will be determined
on the basis of the Fair Market Rental value of the Premises in question
determined on the basis of rents for comparable properties located within a
fifty (50) mile radius of the property in question. The loan is a 20-year fully
amortizing loan, accordingly, the rent structure during the renewal term should
not be material to the repayment of the loan. See Section 29 and Exhibit D.

5.    With respect to defaults, the original Lease gave the landlord the right
to require the tenant to repurchase the property in the event of a default. That
right has been relinquished. The right to force a repurchase, while a positive
thing to have in the lease, is not a common default right and one not likely to
be used - in that a defaulting tenant is not likely to have the resources to
purchase the premises, or if they do, the landlord can always agree to sell them
the property. Therefore, its elimination is not be significant. See Section
23(a)(iii).

6.    With respect to certain defaults which are not performance related
(breaches of representations and certain financial covenants), the landlord's
remedies are limited to collecting the discounted value of all future rent due
under the Lease at a 10.5% discount rate. The landlord's remedies for all other
default, including the failure to pay rent are unaffected. I understand that
Mitch Thurston is doing the numerical calculation to determine whether this
limitation on recovery will have any material impact on the potential for
repayment of the loan. See Section 23(c).

7.    The tenant has relinquished its right to substitute properties under the
lease. That Section, Section 37, has been deleted in its entirety. As the right
to substitute properties was an option entirely for the benefit of the tenant,
its elimination from the lease is desirable from the lender's standpoint. See
Sections 37 and Exhibit H.

8.    The landlord has given up the right to require the tenant to escrow for
taxes and insurance in the event of a tenant default or if required by a lender.
If the lender wishes to institute an escrow, it may still do so and collect from
borrower, but borrower will no longer have the right to turn around and have
this obligation flow directly through to the tenant. The tenant's ultimate
obligation to pay for taxes and insurance is not impaired. See Section 9.

                                        2

<PAGE>

      In general, the changes appear to be neutral or non-material (the
elimination of the right to substitute properties is actually favorable)
assuming that the numerical analysis of the limitation on remedies supports the
notion that there will be no material impairment of the lender's ability to be
repaid in the event of a default. I believe that they are not material in the
sense that if these changes had been requested prior to closing, they would not
have had an effect on the lender's willingness to go forward with the loan. The
proposed modifications to the lease will not require any modification of the
existing loan documents.

                                        3

<PAGE>

                                                                  EXECUTION COPY

                              AMENDED AND RESTATED
                             DEED OF LEASE AGREEMENT

                                 by and between

                                PG (MULTI-16) L.P.,
                         a Delaware limited partnership

                                 as LANDLORD

                                       and

                            PLY GEM INDUSTRIES, INC.,
                             a Delaware corporation,
                                       and
                               MWM HOLDING, INC.,
                            a Delaware corporation,
                                       and
                            GREAT LAKES WINDOW, INC.,
                              an Ohio corporation,
                                       and
                         MW MANUFACTURERS HOLDING CORP.,
                            a Delaware corporation,
                                       and
                             MW MANUFACTURERS INC.,
                             a Delaware corporation,
                                       and
                           NAPCO WINDOW SYSTEMS. INC.,
                             a Delaware corporation,
                                       and
                          KROY BUILDING PRODUCTS, INC.,
                             a Delaware corporation,
                                       and
                                  NAPCO. INC.,
                             a Delaware corporation,
                                       and
                               THERMAL-GARD, INC.,
                           a Pennsylvania corporation,
                                       and
                                 VARIFORM, INC.,
                             a Missouri corporation,

                                  as TENANT

                    Premises:   Kearney, MO
                                Fair Bluff, NC
                                York, NE
                                Toledo, OH
                                Valencia, PA
                                Rocky Mount, VA
                                Martinsburg, WV
                        Dated as of: March________, 2005
                        Effective as of: August 27, 2004

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
<S>                                                                         <C>
1.   Demise of Premises....................................................   1
2.   Certain Definitions...................................................   1
3.   Title and Condition; Single Lease Transaction.........................   8
4.   Use of Leased Premises; Quiet Enjoyment...............................  10
5.   Term..................................................................  11
6.   Basic Rent............................................................  11
7.   Additional Rent.......................................................  11
8.   Net Lease: Non-Terminability..........................................  12
9.   Payment of Impositions................................................  13
10.  Compliance with Laws and Easement Agreements; Environmental Matters...  13
11.  Liens; Recording......................................................  15
12.  Maintenance and Repair................................................  16
13.  Alterations and Improvements..........................................  16
14.  Permitted Contests....................................................  17
15.  Indemnification.......................................................  18
16.  Insurance.............................................................  19
17.  Casualty and Condemnation.............................................  21
18.  Termination Events....................................................  23
19.  Restoration...........................................................  24
20.  Intentionally Omitted.................................................  25
21.  Assignment and Subletting; Waiver of Landlord's Liens.................  25
22.  Events of Default.....................................................  27
23.  Remedies and Damages Upon Default.....................................  29
24.  NOTICES...............................................................  32
25.  Estoppel Certificate..................................................  32
26.  Surrender.............................................................  33
27.  No Merger of Title....................................................  33
28.  Books and Records.....................................................  33
29.  Determination of Value................................................  34
30.  Non-Recourse as to Landlord...........................................  35
31.  Landlord's Financing..................................................  36
32.  Subordination, Non-Disturbance and Attornment.........................  36
33.  Tax Treatment; Reporting..............................................  36
</TABLE>

                                       -i-

<PAGE>

<TABLE>
<S>                                                                          <C>
34.  Permitted Leasehold Mortgage..........................................  36
35.  Rights of Permitted Leasehold Mortgagee...............................  37
36.  Grants and Releases of Easements......................................  39
37.  Intentionally Omitted.................................................  39
39.  Intentionally Omitted.................................................  39
39.  Post-Closing Obligations..............................................  39
40.  Miscellaneous.........................................................  41
</TABLE>

EXHIBITS

Exhibit "A" - Premises
Exhibit "B" - Machinery and Equipment
Exhibit "C" - Schedule of Permitted Encumbrances
Exhibit "D" - Rent Schedule
Exhibit "E" - Acquisition Costs
Exhibit "F" - Premises Percentage Allocation of Basic Rent
Exhibit "G" - Form of Subordination, Attornment and Non-Disturbance Agreement
              and Lender Estoppel
Exhibit "H" - INTENTIONALLY OMITTED
Exhibit "I" - Post-Closing Obligations

                                      -ii-

<PAGE>

            AMENDED AN RESTATED DEED OF LEASE AGREEMENT, made as of this
_______________day of March, 2005, effective as of the 27th day of August, 2004,
between PG (MULTI-16) L.P., a Delaware limited partnership ("Landlord"), with an
address c/o W. P. Carey & Co. LLC, 50 Rockefeller Plaza, 2nd Floor, New York,
New York 10020, and PLY GEM INDUSTRIES, INC., a Delaware corporation, and MWM
HOLDING, INC., a Delaware corporation, and GREAT LAKES WINDOW, INC., an Ohio
corporation, and MW MANUFACTURERS HOLDING CORP., a Delaware corporation, and MW
MANUFACTURERS INC., a Delaware corporation, and NAPCO WINDOW SYSTEMS, INC., a
Delaware corporation, and KROY BUILDING PRODUCTS, INC., a Delaware corporation,
and NAPCO. INC., a Delaware corporation, and THERMAL-GARD, INC., a Pennsylvania
corporation, and VARIFORM, INC., a Missouri corporation (singly and
collectively, as the context may require, "Tenant") each with an address for
notice purposes in care of Ply Gem Holdings, Inc., 185 Platte Clay Way, Suite A,
Kearney, Missouri, 64060.

                                   BACKGROUND:

            1. Landlord and Tenant entered into a certain Deed of Lease
Agreement dated August 27, 2004 (the "Original Lease") for the Leased Premises
(as hereinafter defined).

            2. Landlord and Tenant desire to amend and restate the Original
Lease in its entirety as hereinafter set forth.

                                 NOW, THEREFORE,

            in consideration of the rents and provisions herein stipulated to
be paid and performed, Landlord and Tenant hereby covenant and agree as follows:

            1. Demise of Premises. Landlord hereby demises and lets to Tenant,
and Tenant hereby takes and leases from Landlord, for the term and upon the
provisions hereinafter specified, the following described property (hereinafter
referred to collectively as the "Leased Premises" and individually as the
"Kearney, MO Premises", the "Fair Bluff, NC Premises", the "York, NE Premises",
the "Toledo, OH Premises", the "Valencia, PA Premises", the "Rocky Mount, VA
Premises" and the "Martinsburg, WV Premises", each of which premises (as
hereinafter defined) shall include the following item (a) and the following
items (b) and (c) of this Paragraph 1 located thereon or therein and
appertaining thereto: (a) the real property described in Exhibit "A" hereto,
together with the Appurtenances (collectively, the "Land"); (b) the buildings,
structures and other improvements now or hereafter constructed on the Land
(collectively, the "Improvements"); and (c) the fixtures, machinery, equipment
and other property described in Exhibit "B" hereto (collectively, the
"Equipment").

            2. Certain Definitions.

                  "Acquisition Cost" of each of the Related Premises shall mean
the amount set forth opposite such premises on Exhibit "E" hereto.

                  "Additional Rent" shall mean Additional Rent as defined in
Paragraph 7.

                  "Adjoining Property" shall mean all sidewalks, driveways,
curbs, gores and vault Spaces adjoining any of the Leased Premises.

                  "Affected Premises" shall mean the Affected Premises as
defined in Paragraph 18.

                                       -1-

<PAGE>

                  "Affiliate" shall mean any Person which shall (i) control,
(ii) be under the control of, or (iii) be under common control with Tenant (the
term "control" as used herein shall be deemed to mean ownership of more than 50%
of the outstanding voting stock of a corporation or other majority equity and
control interest if such Person is not a corporation) and the power to direct or
cause the direction of the management or policies of such Person.

                  "Alterations" shall mean all changes, additions, improvements
or repairs to, all alterations, reconstructions, restorations, renewals,
replacements or removals of and all substitutions or replacements for any of the
Improvements or Equipment, both interior and exterior, structural and
non-structural, and ordinary and extraordinary.

                  "Appurtenances" shall mean all tenements, hereditaments,
easements, rights-of-way, rights, privileges in and to the Land, including (a)
easements over other lands. granted by any Easement Agreement and (b) any
streets, ways, alleys, vaults, gores or strips of land adjoining the Land.

                  "Assignment" shall mean any assignment of rents and leases
from Landlord to a Lender which (a) encumbers any of the Leased Premises and (b)
secures Landlord's obligation to repay a Loan, as the same may be amended,
supplemented or modified from time to time.

                  "Basic Rent" shall mean Basic Rent as defined in Paragraph 6.

                  "Basic Rent Payment Date" shall mean Basic Rent Payment Date
as defined in Paragraph 6.

                  "Business Days" shall mean any day other than Saturdays,
Sundays and legal holidays on which national banks in New York are required to
close for business.

                  "Business Unit Premises" shall mean any Related Premises where
the business operations conducted in such Related Premises are sold to a
Business Unit Purchaser.

                  "Business Unit Purchaser" shall mean the Person who purchases
the Business Unit Premises, but shall not include any Affiliate of Tenant or
Caxton-Iseman or any of its Affiliates.

                  "Casualty" shall mean any loss of or damage to any property
(including the Leased Premises) included within or related to the Leased
Premises as a result of any fire, earthquake or other event of casualty.

                  "Commencement Date" shall mean Commencement Date as defined in
Paragraph 5.

                  "Condemnation" shall mean (a) any taking of all or a portion
of any of the Leased Premises (i) in or by condemnation or other eminent domain
proceedings pursuant to any Law, general or special, or (ii) by reason of any
agreement with any condemnor in settlement of or under threat of any such
condemnation or other eminent domain proceeding, or (b) any conveyance in lieu
of condemnation. The Condemnation shall be considered to have taken place as of
the later of the date actual physical possession is taken by the condemnor, or
the date on which the right to compensation and damages accrues under the law
applicable to the Leased Premises.

                  "Condemnation Notice" shall mean notice or knowledge of the
institution of or intention to institute any proceeding for Condemnation.

                                       -2-

<PAGE>

                  "Costs" of a Person or associated with a specified transaction
shall mean all reasonable costs and expenses incurred by such Person or
associated with such transaction, including without limitation, attorneys' fees
and expenses, court costs, brokerage fees, escrow fees, title insurance
premiums, mortgage commitment fees, mortgage points, recording fees and transfer
taxes, but excluding the internal administrative costs (including overhead) of
such Person, as the circumstances require.

                  "CPI shall mean CPI as defined in Exhibit "D" hereto.

                  "Default Rate" shall mean the Default Rate as defined in
Paragraph 7(a)(iv).

                  "Easement Agreement" shall mean any conditions, covenants,
restrictions, easements, declarations, licenses and other agreements listed as
Permitted Encumbrances or as may hereafter affect any Related Premises.

                  "Environmental Law" shall mean (a) whenever enacted or
promulgated, any applicable federal, state, foreign and local law, statute,
ordinance, rule, regulation, license, permit, authorization, approval, consent
court order, judgment, decree, injunction, code, requirement or agreement with
any governmental entity, (i) relating to pollution (or the cleanup thereof), or
the protection of air, water vapor, surface water, groundwater, drinking water
supply, land (including land surface or subsurface), plant, aquatic and animal
life from injury caused by a Hazardous Substance or (ii) concerning exposure to,
or the use, containment, storage, recycling, reclamation, reuse, treatment,
generation, discharge, transportation, processing, handling, labeling,
production, disposal or remediation of any Hazardous Substance, Hazardous
Condition or Hazardous Activity, in each case as amended and as now or hereafter
in effect, and (b) any common law or equitable doctrine (including, without
limitation, injunctive relief and tort doctrines such as negligence, nuisance,
trespass and strict liability) that may impose liability or obligations for
injuries or damages due to or threatened as a result of the presence of,
exposure to, or ingestion of, any Hazardous Substance. The term Environmental
Law includes, without limitation, the federal Comprehensive Environmental
Response Compensation and Liability Act of 1980, the Superfund Amendments and
Reauthorization Act, the federal Water Pollution Control Act, the federal Clean
Air Act, the federal Clean Water Act, the federal Resources Conservation and
Recovery Act of 1976 (including the Hazardous and Solid Waste Amendments to
RCRA), the federal Solid Waste Disposal Act, the federal Toxic Substance Control
Act, the federal Insecticide, Fungicide and Rodenticide Act, the federal
Occupational Safety and Health Act of 1970, the federal National Environmental
Policy Act and the federal Hazardous Material Transportation Act, each as
amended and as now or hereafter in effect and any similar state or local Law.

                  "Environmental Violation" shall mean (a) any direct or
indirect discharge, disposal, spillage, emission, escape, pumping, pouring,
injection, leaching, release, seepage, filtration or transporting of any
Hazardous, Substance at, upon, under, onto or within any Related Premises, or
from any Related Premises to the environment, in violation of any Environmental
Law or in excess of any reportable quantity established under any Environmental
Law or which is likely to result in any liability to Landlord, Tenant or Lender,
any Federal, state or local government or any other Person for the costs of any
removal or remedial action or natural resources damage or for bodily injury or
property damage, (b) any deposit, storage, dumping, placement or use of any
Hazardous Substance at, upon, under or within the Leased Premises or which
extends to any Adjoining Property in violation of any Environmental Law or in
excess of any reportable quantity established under any Environmental Law or
which is likely to result in any liability to any Federal, state or local
government or to any other Person for the costs of any removal or remedial
action or natural resources damage or for bodily injury or property damage,
(c)the abandonment or discarding of any barrels, containers or other receptacles
containing any

                                       -3-
<PAGE>
Hazardous Substances in violation of any Environmental Laws, (d) any activity,
occurrence or condition which is likely to result in any liability, cost or
expense to Landlord or Lender or any other owner or occupier of the Leased
Premises, or which is likely to result in a creation of a lien on any Related
Premises under any Environmental Law or (e) any violation of or noncompliance
with any Environmental Law.

            "Equipment" shall mean the Equipment as defined in Paragraph 1.

            "Event of Default" shall mean an Event of Default as defined in
Paragraph 22(a).

            "Expiration Date" shall mean Expiration Date as defined in Paragraph
5(a).

            "Fair Market Rental Value" shall mean the fair market rental value
of the Leased Premises for the relevant Renewal Term determined in accordance
with the procedure specified in Paragraph 29.

            "Fair Market Value Date" shall mean the date when the Fair Market
Rental Value is determined in accordance with Paragraph 29.

            "Federal Funds" shall mean federal or other immediately available
funds which at the time of payment are legal tender for the payment of public
and private debts in the United States of America.

            "Guarantor" shall mean Ply Gem Holdings, Inc., a Delaware
corporation.

            "Guaranty" shall mean me Guaranty and Suretyship Agreement dated as
of the date hereof from Guarantor to Landlord guaranteeing the payment and
performance by Tenant of all of Tenant's obligations under the Lease.

            "Hazardous Activity" means any activity, process, procedure or
undertaking which directly or indirectly (a) procures, generates or creates any
Hazardous Substance; (b) causes or results in (or threatens to cause or result
in) the release, seepage, spill, leak, flow, discharge or emission of any
Hazardous Substance into the environment (including the air, ground water,
watercourses or water systems), (c) involves the containment or storage of any
Hazardous Substance; or (d) would cause any of the Leased Premises or any
portion thereof to become a hazardous waste treatment, recycling, reclamation,
processing, storage or disposal facility within the meaning of any Environmental
Law.

            "Hazardous Condition" means any condition which would support any
claim or liability under any Environmental Law, including the presence of
underground storage tanks.

              "Hazardous Substance" means (i) any substance, material product,
petroleum, petroleum product, derivative, compound or mixture, mineral
(including asbestos), chemical, gas medical waste, or other pollutant, in each
case whether naturally occurring. man-made or the by-product of any process,
that is toxic, harmful or hazardous or acutely hazardous to the environment or
public health or safety or (ii) any substance supporting a claim under any
Environmental Law, whether or not defined as hazardous as such under any
Environmental Law. Hazardous Substances include, without limitation, any toxic
or hazardous waste, pollutant, contaminant, industrial waste, petroleum or
petroleum-derived substances or waste, radon, radioactive materials, asbestos,
asbestos containing materials, microbial matter (including but not limited to
mold, mildew and other fungi or bacterial matter which reproduces through the
release

                                      -4-
<PAGE>

of spores or the splitting of cells), urea formaldehyde foam insulation, lead
and polychlorinated biphenyls.

            "Impositions" shall mean the Impositions as defined in Paragraph
9(a).

            "Improvements" shall mean the Improvements as defined in Paragraph
1.

            "Indemnitee" shall mean an Indemnitee as defined in Paragraph 15.

            "Initial Term" shall mean Initial Term as defined in Paragraph
5(a).

            "Insurance Requirements" shall mean the requirements of all
insurance policies required to be maintained in accordance with this Lease.

            "Land" shall mean the Land as defined in Paragraph 1.

            "Landlord Expenses" shall mean (i) any cost or expense that is the
express obligation of Landlord under this Lease,(ii) debt service for any
indebtedness of Landlord, (iii) any Landlord Impositions, (iv)except as
expressly set forth in Paragraph 7(a)(i) administrative expenses of Landlord,
and (v) except as expressly set forth herein with respect to any initial
financing, costs incurred by Landlord in connection with financing, or
refinancing the Leased Premises.

            "Landlord Impositions" shall mean: (a) any estate, gift or
inheritance tax of Landlord: (b) any transfer or other taxes incurred by
Landlord in connection with a conveyance of the fee interest in any Related
Premises to any Person except Tenant or its designee, or a transfer of any
direct or indirect equity interests in Landlord to any Person except Tenant or
its designee, or any mortgage recording taxes incurred in connection with a
mortgage of Landlord's fee interest in the Leased Premises except for mortgage
recording taxes payable on the initial fee Mortgage: (c) any franchise tax, net
income tax, capital gains tax, gross receipts tax or similar tax (other than any
gross receipts tax or similar tax imposed in lieu of any tax or imposition that
Tenant is obligated to pay under Paragraph 9), or tax imposed under Section 59A
of the Internal Revenue Code of 1986, as amended, or any similar state, local,
foreign or successor provision; provided, that if at any time during the term of
this Lease, the method of taxation shall be such that there shall be assessed,
levied, charged or imposed on Landlord a tax, in lieu of real estate taxes or
any other imposition payable by Tenant, upon the value of the Leased Premises or
any Related Premises, then all such levies and taxes or the part thereof so
measured or based shall be payable by Tenant, but only to the extent that such
levies or taxes would he payable if the Leased Premises were the only property
of Landlord, and Tenant shall pay and discharge the same as herein provided.

            "Law" shall mean any constitution, statute, rule of law, code,
ordinance, order, judgment, decree, injunction, rule, regulation, policy,
requirement or administrative or judicial determination, even if unforseen or
extraordinary, of every duly constituted governmental authority, court or
agency, now or hereafter enacted or in effect.

            "Lease" shall mean this Amended and Restated Deed of Lease
Agreement.

            "Leasehold Estate" shall mean Tenant's leasehold estate under this
Lease.

            "Lease Year" shall mean, with respect to the first Lease Year, the
period commencing on the Commencement Date and ending at midnight on the last
day of the twelfth (12th) full consecutive calendar month following the month
in which the Commencement Date occurred, and each succeeding twelve (12) month
period during the Term.

                                       -5-

<PAGE>

            "Leased Premises" shall mean the Leased Premises as defined in
Paragraph 1.

            "Legal Requirements" shall mean the requirements of all present and
future Laws (including but not limited to Environmental Laws and Laws relating
to accessibility to, usability by, and discrimination against, disabled
individuals) and all covenants, restrictions and conditions now or hereafter of
record which may be applicable to Tenant or to any of the Leased Premises or any
Related Premises, or to the use, manner of use, occupancy, possession,
operation, maintenance, alteration, repair or restoration of any of the Leased
Premises or any Related Premises, even if compliance therewith necessitates
structural changes or improvements or results in interference with the use or
enjoyment of any of the Leased Premises or any Related Premises or requires
Tenant to Carry insurance other than as required by this Lease.

            "Lender" shall mean any Person (and its respective successors and
assigns) which may, on or after the date hereof, make a Loan to Landlord or be
the holder of a Note.

            "Limited Remedy Default" shall mean an Event of Default specified in
the following clauses of Paragraph 22(a): clause (iii) if the misrepresentation
is with respect to the penultimate sentence of Sections 2, 3, 4, 7 and 24 of
the Lessee's Certificate, the first sentence of Section 3 or the first or last
sentence of Section 7 of the Lessee's Certificate, clause (iv), clause (v)(B),
clause (vi)(E), clause (ix) (B),clause (xi), clause (xiii) (if such Event of
Default is with respect to or arises as a result of a default under Paragraphs 6
or 9 of the Guarantor's Certificate, Sections 3.03(ii), 3.04(iv), 4.01(c) or
4.0l(d) of the Guaranty), or clause (xiv).

            "Loan" shall mean any loan (or the portion thereof allocable to the
Leased Premises, if applicable) made by one or more Lenders to Landlord, which
loan is secured by a Mortgage and an Assignment and evidenced by a Note.

            "Monetary Obligations" shall mean Rent and all other sums payable
by Tenant under this Lease to Landlord, to any third party on behalf of Landlord
or to any Indemnitee.

            "Moody's" shall mean Moody's Investor Services, Inc.

            "Mortgage" shall mean any mortgage or deed of trust from Landlord to
a Lender which (a) encumbers any of the Leased Premises and (b) secures
Landlord's obligation to repay a Loan, as the same may be amended, supplemented
or modified.

            "Net Award" shall mean (a) the entire award payable to Landlord or
Lender by reason of a Condemnation whether pursuant to a judgment or by
agreement or otherwise, or (b) the entire proceeds of any insurance required
under clauses (i), (ii) (to the extent payable to Landlord or Lender), (iv), (v)
or (vi) of Paragraph 16(a), as the case may be, less any expenses incurred by
Landlord and Lender in collecting such award or proceeds.

            "Note" shall mean any promissory note (or an allocable portion
thereof, if applicable) evidencing Landlord's obligation to repay a Loan, as the
same may be amended, supplemented or modified.

            "Partial Condemnation" shall mean any Condemnation which does not
constitute a Termination Event.

                                      -6-
<PAGE>

            "Percentage Allocation" shall mean the percentage allocated to each
Related Premises in Exhibit"F" to this Lease as the same may be adjusted in
accordance with the formula specified in Exhibit "F".

            "Permitted Encumbrances" shall mean those covenants, restrictions,
reservations, liens, conditions and easements and other encumbrances , other
than any Mortgage or Assignment, listed on Exhibit "C" hereto (but such listing
shall not be deemed to revive any such encumbrances that have expired or
terminated or are otherwise invalid or unenforceable).

            "Permitted Leasehold Mortgage" shall mean any first lien, mortgage,
deed of trust, security deed, deed to Secure debt,assignment, security Interest,
pledge, financing statement, or any other instrument(s) or agreements(s)
intended to grant security for any obligation (including a purchase-money or
other promissory note) encumbering the Leasehold Estate, as entered into,
renewed, modified, consolidated, amended, extended, or assigned from time to
time.

            "Permitted Leasehold Mortgagee" shall mean the holder of Permitted
Leasehold Mortgage, and its successors and assigns.

            "Person" shall mean an individual, partnership, association,
corporation or other entity.

            "Post-Closing Obligations" shall mean those obligations of Tenant
specified in Exhibit "I" hereto.

            "Preapproved Assignee" shall mean Preapproved Assignee as defined in
Paragraph 21(a).

            "Prepayment Premium" shall mean any payment (other than a payment of
principal and/or interest which Landlord is required to make under a Note or a
Mortgage) by reason of any prepayment by Landlord of any principal due under a
Note or Mortgage, and which may be (in lieu of such prepayment premium or
prepayment penalty) (a) a "make whole" or yield maintenance clause requiring a
prepayment premium or (b) a defeasance payment (such defeasance payment to be an
amount equal to the positive difference between (i) the total amount required to
defease a Loan and (ii) the outstanding balance of the Loan as of the date of
such defeasance, in the Case of either (a) or (b) in an amount sufficient to
compensate the Lender for the loss of the benefit of the Loan due to a
prepayment.

            "Present Value" of any amount shall mean such amount discounted by a
rate per annum which is the lower of (a) the Prime Rate plus two percent (2%) at
the time such present value is determined or (b) eight percent (8%) per annum.

            "Prime Rate" shall mean the interest rate per annum as published,
from time to time, in The Wall Street Journal as the "Prime Rate" in its column
entitled "Money Rate". The Prime Rate may not be the lowest rate of interest
charged by any "large U.S. money center commercial banks" and Landlord makes no
representations or warranties to that effect. In the event The Wall Street
Journal ceases publication or ceases to publish the "Prime Rate" as described
above, the Prime Rate shall be the average per annum discount rate (the
"Discount Rate") on ninety-one (91) day bills ("Treasury Bills") issued from
time to time by the United States Treasury at its most recent auction, plus
three hundred (300) basis points. If no such 91-day Treasury Bills are then
being issued, the Discount Rate shall be the discount rate on Treasury Bills
then being issued for the period of time closest to ninety-one (91) days.

                                      -7-
<PAGE>

            "Related Premise" shall mean any one of the Kearney, MO Premises,
the Fair Bluff, NC Premises, the York, NE Premises, the Toledo, Ohio Premises,
the Valencia, PA Premises, the Rocky Mount, VA Premises and the Martinsburg, WV
Premises.

            "Relevant Date" shall mean the date on which Fair Market Rental
Value is. determined in the event of any extension of this Lease pursuant to
Paragraph 5(b).

            "Remaining Premises" shall mean the Related Premises which are not
Affected Premises under Paragraph 18.

            "Renewal Term" shall mean Renewal Term as defined in Paragraph 5.

            "Rent" shall mean, collectively, Basic Rent and Additional Rent.

            "S&P" shall mean Standard and Poor's Rating Services.

            "Site Assessment" shall mean a Site Assessment as defined in
Paragraph 10(c).

            "Surviving Obligations" shall mean any obligations of Tenant under
this Lease, actual or contingent, which arise on or prior to the expiration or
prior termination of this Lease or which survive such expiration or termination
by their own terms.

            "Tenant's Equipment" shall mean all trade fixtures, machinery,
office, manufacturing, storage, materials handling and warehouse equipment which
are used by Tenant in the operation of its business, including any air
compressors and exhaust fans, used by Tenant in the operation of its business.

            "Term" shall mean the Initial Term and any exercised Renewal Term.

            "Third Party Purchaser" shall mean the Third Party Purchaser as
defined in Paragraph 21 (h).

            "Warranties" shall mean Warranties, as defined in Paragraph 3(d).

      3.    Title and Condition; Single Lease Transaction.

            (a) The Leased Premises are demised and let subject to (i) the
rights of any Persons in possession of the Leased Premises, (ii) the existing
state of title of any of the Leased Premises, including any Permitted
Encumbrances, (iii) any state of facts which an accurate survey or physical
inspection of the Leased Premises, might show, (iv) all Legal Requirements,
including any existing violation of any thereof and (v) the condition of the
Leased Premises as of the commencement of the Term, without representation or
warranty by Landlord.

            (b) Tenant acknowledges that the Leased Premises are in good
condition and repair at the inception of this Lease. LANDLORD LEASES AND WILL
LEASE AND TENANT TAKES AND WILL TAKE THE LEASED PREMISES AS IS. TENANT
ACKNOWLEDGES THAT LANDLORD (WHETHER ACTING AS LANDLORD HEREUNDER OR IN ANY OTHER
CAPACITY) HAS NOT MADE AND WILL NOT MAKE, NOR SHALL LANDLORD BE DEEMED TO HAVE
MADE, ANY WARRANTY OR REPRESENTATION, EXPRESS OK IMPLIED, WITH RESPECT TO ANY OF
THE LEASED PREMISES, INCLUDING ANY WARRANTY OR REPRESENTATION AS TO (i) ITS
FITNESS, DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE, (ii) THE
QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, (iii) THE

                                      -8-
<PAGE>

EXISTENCE OF ANY DEFECT, LATENT OR PATENT, (iv) LANDLORD'S TITLE THERETO, (v)
VALUE, (vi) COMPLIANCE WITH SPECIFICATIONS, (vii) LOCATION, (viii) USE, (ix)
CONDITION, (x) MERCHANTABILITY, (xi) QUALITY, (xii) DESCRIPTION, (xiii)
DURABILITY (xiv) OPERATION, (xv) THE EXISTENCE OF ANY HAZARDOUS SUBSTANCE,
HAZARDOUS CONDITION OR HAZARDOUS ACTIVITY OR (xvi) COMPLIANCE OF THE LEASED
PREMISES WITH ANY LAW OR LEGAL REQUIREMENT: AND ALL RISKS INCIDENT THERE TO ARE
TO BE BORNE BY TENANT. TENANT ACKNOWLEDGES THAT THE LEASED PREMISES ARE OF ITS
SELECTION AND TO ITS SPECIFICATIONS AND THAT THE LEASED PREMISES HAVE BEEN
INSPECTED BY TENANT AND ARE SATISFACTORY TO IT. IN THE EVENT OF ANY DEFECT OR
DEFICIENCY IN ANY OF THE LEASED PREMISES OF ANY NATURE, WHETHER LATENT OR
PATENT, LANDLORD SHALL NOT HAVE ANY RESPONSIBILITY OR LIABILITY WITH RESPECT
THERETO OR FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING STRICT
LIABILITY IN TORT). THE PROVISIONS OF THIS PARAGRAPH 3(b) HAVE BEEN NEGOTIATED,
AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY WARRANTIES BY
LANDLORD, EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF THE LEASED PREMISES,
ARISING PURSUANT TO THE UNIFORM COMMERCIAL CODE OR ANY OTHER LAW NOW OR
HEREAFTER IN EFFECT OR ARISING OTHERWISE.

            (c) Tenant represents to Landlord that Tenant has examined the title
to the Leased Premises prior to the execution and delivery of this Lease and has
found, the same to be satisfactory for the purposes contemplated hereby. Tenant
acknowledges that (i) fee simple title (both legal and equitable) to the Leased
Premises is in Landlord, as provided herein, (ii) the Improvements conform to
all material Legal Requirements and all Insurance Requirements, (iii) all
easements necessary or appropriate for the use or operation of the Leased
Premises have been obtained, (iv) all contractors and subcontractors who have
performed work on or supplied materials to the Leased Premises have been fully
paid, and all materials and supplies have been fully paid for, (v) the
Improvements have been fully completed in all material respects in a workmanlike
manner, and (vi) all Equipment necessary or appropriate for the use or operation
of the Leased Premises has been installed and is presently fully operative in
all material respects.

            (d) Landlord hereby assigns to Tenant, without recourse or warranty
whatsoever, all assignable warranties, guaranties, indemnities and similar
rights, (collectively "Warranties") which Landlord may have against any
manufacturer, seller, engineer, contractor or builder in respect of any of the
Leased Premises. Such assignment shall remain in effect until the expiration or
earlier termination of this Lease, whereupon such assignment shall cease and all
of the Warranties shall automatically revert to Landlord. In confirmation of
such reversion Tenant shall execute and deliver promptly any certificate or
other document reasonably required by Landlord. Landlord shall also retain the
right to enforce any Warranties upon the occurrence and during the continuance
of an Event of Default. Tenant shall use commercially reasonable efforts to
enforce the Warranties in accordance with their respective terms.

            (e) LANDLORD AND TENANT AGREE THAT IT IS THEIR MUTUAL INTENT TO
CREATE, AND THAT THIS LEASE CONSTITUTES, A SINGLE LEASE WITH RESPECT TO EACH AND
EVERY PARCEL OF LAND, IMPROVEMENTS INCLUDED IN ANY AND ALL OF THE LEASED
PREMISES (WHEREVER LOCATED). THAT THIS LEASE IS NOT INTENDED AND SHALL NOT BE
CONSTRUED TO BE SEPARATE LEASES AND THAT ALL THE TERMS AND CONDITIONS HEREOF
SHALL GOVERN THE RIGHTS AND OBLIGATIONS OF LANDLORD AND TENANT WITH RESPECT
THERETO.

                                      -9-
<PAGE>

            (f) TENANT, ON BEHALF OF ITSELF AND ANY TRUSTEE OR LEGAL
REPRESENTATIVE (UNDER THE FEDERAL BANKRUPTCY CODE OR ANY SIMILAR STATE
INSOLVENCY PROCEEDING) EXPRESSLY ACKNOWLEDGES AND AGREES THAT, NOTWITHSTANDING
THE PROVISIONS OF PARAGRAPH 18 HEREOF OR ANY OTHER PROVISION IN THIS LEASE TO
THE PRO CONTRARY, IT IS THE EXPRESS INTENT OF LANDLORD AND TENANT TO CREATE, AND
THAT THIS LEASE CONSTITUTES, A SINGLE LEASE WITH RESPECT TO EACH AND EVERY
PARCEL OF LAND, IMPROVEMENTS AND EQUIPMENT INCLUDED IN EACH AND ALL OF THE
RELATED PREMISES (WHEREVER LOCATED) AND SHALL NOT BE (OR BE DEEMED TO BE)
DIVISIBLE OR SEVERABLE INTO SEPARATE LEASES FOR ANY PURPOSE WHATSOEVER (EXCEPT
THAT TENANT HAS ADVISED LANDLORD THAT THE LEASE IS REQUIRED TO BE ANALYZED ON A
PROPERTY-BY-PROPERTY BASIS FOR FINANCIAL ACCOUNTING PURPOSES), AND TENANT, ON
BEHALF OF ITSELF AND ANY SUCH TRUSTEE OR LEGAL. REPRESENTATIVE, HEREBY WAIVES
ANY RIGHT TO CLAIM OR ASSERT A CONTRARY POSITION IN ANY ACTION OR PROCEEDING; IT
BEING FURTHER UNDERSTOOD AND AGREED BY TENANT THAT THE ALLOCATIONS OF
ACQUISITION COST AND PERCENTAGE ALLOCATION OF BASIC RENT AS SET FORTH ON EXHIBIT
"E" AND EXHIBIT "F" HEREOF ARE INCLUDED TO PROVIDE A FORMULA FOR RENT ADJUSTMENT
AND LEASE TERMINATION UNDER CERTAIN CIRCUMSTANCES AND AS AN ACCOMMODATION TO
TENANT. ANY EVENT OF DEFAULT HEREUNDER IN CONNECTION WITH ANY RELATED PREMISES
SHALL BE DEEMED TO BE AN EVENT OF DEFAULT WITH RESPECT TO THE ENTIRE LEASED
PREMISES (WHEREVER LOCATED). THE FOREGOING AGREEMENTS AND WAIVERS BY TENANT IN
THIS PARAGRAPH 3(f) ARE MADE AS A MATERIAL INDUCEMENT TO LANDLORD TO ENTER INTO
THE TRANSACTION CONTEMPLATED BY THIS LEASE AND THAT, BUT FOR THE FOREGOING
AGREEMENTS AND WAIVERS BY TENANT, LANDLORD WOULD NOT CONSUMMATE THIS LEASE TRANS
ACTION.

      4.    Use of Leased Premises; Quiet Enjoyment.

            (a) Tenant may occupy and use the Leased Premises for a
manufacturing and distribution facility with ancillary office, storage and
parking uses and for no other purpose without the prior written consent of
Landlord which shall not be unreasonably withheld or delayed. Tenant shall not
use or occupy or permit any of the Leased Premises to be used or occupied, nor
do or permit anything to be done in or on any of the Leased Premises, in a
manner which would or might (i) violate any Law or Legal Requirement, (ii) make
void or voidable or cause any insurer to cancel any insurance required by this
Lease, or make it difficult or impossible to obtain any such insurance at
commercially reasonable rate, (iii) make, void or voidable, cancel or cause to
be cancelled or release any of the Warranties, (iv) cause structural injury to
any of the Improvements or (v) constitute a public or private nuisance or waste.

            (b) Subject to the provisions hereof, so long as no Event of Default
has occurred and is continuing. Tenant shall quietly hold, occupy and enjoy the
Leased Premises throughout the Term, without any hindrance, ejection or
molestation by Landlord or anyone claiming through or under Landlord with
respect to matters that arise after the date hereof, provided that Landlord or
its agents may enter upon and examine any of the Leased Premises at such
reasonable times, as Landlord may select and upon reasonable notice to Tenant
(except in the cast of any emergency, in which event no notice shall be
required), but at all times accompanied by a representative designated by
Tenant, for the purpose of inspecting the Leased Premises, verifying compliance
or non-compliance by Tenant with its obligations hereunder and the existence or
non-existence of an Event of Default showing the Leased Premises to prospective
Lenders and purchasers, making any repairs and taking such other action with
respect to the Leased Premises as is permitted by any provision hereof.

                                      -10-
<PAGE>

      5.    Term.

            (a) Subject to the provisions hereof, Tenant shall have and hold the
Leased Premises for an initial term (the "Initial Term") which commenced on
August 27, 2004 (the "Commencement Date") and ends on August 31, 2024 (the
"Expiration Date").

            (b) Provided that if, on or prior to the Expiration Date or any
other Renewal Date (as here in after defined) this Lease shall not have been
terminated pursuant to any provision hereof, then on the Expiration Date and on
the tenth (10th) anniversary of the Expiration Date (the Expiration Date and
such anniversary being a "Renewal Date "), the Term shall be deemed to have been
automatically extended for an additional period of ten (10) years (each such
extension, a "Renewal Term"), unless Tenant shall notify Landlord in writing at
least eighteen (18) months prior to the next Renewal Date that Tenant is
terminating this Lease as of the next Renewal Date, At Landlord's request at any
time after the giving of a notice of termination, Tenant shall execute a notice
in recordable form confirming such termination. Any such extension of the Term
under this Paragraph 5(b) shall be subject to all of the provisions of this
Lease, as the same may be amended, supplemented or modified.

            (c) If Tenant exercises its option pursuant to Paragraph 5(b) not to
have the Term automatically extended, or if an Event of Default occurs and is
continuing, then Landlord shall have the right during the remainder of the Term
then in effect and, in any event, Landlord shall have the right during the last
year of the Term, to (i) advertise the availability of the Leased Premises for
sale or reletting and to erect upon the Leased Premises signs indicating such
availability and (ii) show the Leased Premises to prospective purchasers or
tenants or their agents subject to the conditions in Paragraph 4(b) at such
reasonable times as Landlord may select.

      6.    Basic Rent. Tenant shall pay to Landlord, as annual rent ('Basic
Rent") for the Leased Premises during the Term, the amounts determined in
accordance with Exhibits "D" hereto. Basic Rent is payable quarterly in advance
on the twenty-fifth (25th) day of each September, December, March and June
during the Term for the next three (3) calendar months as set forth in said
Exhibit "D". The date that each payment of Basic Rent is due is hereinafter
referred to as a "Basic Rent Payment Date". Basic Rent for the period from the
Commencement Date to and including September 30, 2004 was paid on the
Commencement Date and quarterly payments of Basic Rent have been made through
March 31, 2005. Each such rental payment shall be made (a) at Landlord's sole
discretion, to Landlord at its address set forth above and/or to such one or
more other Persons, at such addresses and in such proportions as Landlord may
direct by ten (10) Business Days' prior written notice to Tenant (in which event
Tenant shall give Landlord notice of each such payment concurrent with the
making thereof), and (b) at Tenant's option, by a check hand delivered at least
two (2) Business Days before or mailed at least five (5) Business Days before
the applicable Basic Rent Payment Date, or on the applicable Basic Rent Payment
Date by wire transfer of Federal Funds to an account designated by Landlord in
writing. Pro rata Basic Rent for the period from the date hereof through the
last day of the month hereof shall be paid on the date hereof.

      7.    Additional Rent.

            (a) Tenant shall pay and discharge, as additional rent
(collectively, "Additional Rent"):

                  (i) Except for Landlord's Expenses or as otherwise
specifically provided herein, all coats and expenses of Tenant, Landlord and
any other Persons specifically referenced herein which are incurred in
connection or associated with (A) the ownership, use, non-use, occupancy,
possession, operation, condition, design, construction,

                                      -11-
<PAGE>

maintenance, alteration, repair or restoration of any of the Leased Premises,
(B) the performance of any of Tenant's obligations under this Lease, (C) any
sale or other transfer of any of the Leased Premises to Tenant under this
Lease, (D) the prosecution, defense or settlement of any litigation involving or
arising from any of the Leased Premises, this Lease, or the sale of the Leased
Premises to Landlord unless such litigation arises as a result of the gross
negligence or willful misconduct of Landlord, (E) the exercise or enforcement
by Landlord, its successors and assigns, of any of its rights under this Lease
during the pendency of an Event of Default, (F) any amendment to or modification
or termination of this Lease, made at the request of Tenant, (G) Costs of
Landlord's counsel incurred in connection with any act undertaken by Landlord
(or its counsel) at the request of Tenant, or incurred in connection with any
act of Landlord performed on behalf of Tenant or incurred in connection with the
review of Post-Closing Obligations, (H) an administrative fee of $10,000 payable
to Landlord in connection with any Exchange and (I) any other items specifically
required to be paid by Tenant under this Lease:

                  (ii) after the date that is seven (7) days after all or any
portion of any installment of Basic Rent is due and not paid, a late charge in
an amount equal to three percent (3%) of the amount of such unpaid installment
or portion thereof, as liquidated damages in order to compensate Landlord for a
portion of the costs and expenses related to handling such late payment, the
amounts of which are difficult or impossible to measure;

                  (iii) in addition to the amounts payable under clauses
7(a)(ii) and (iv) a sum equal to any additional sums (including any late charge
payable on the portion of Basic Rent equal to installments of principal and
interest on the then outstanding Loan, default penalties, interest and fees of
Lender's counsel) which are payable by Landlord to any Lender under any Note by
reason of Tenant's late payment or non-payment of Basic Rent or by reason of an
Event of provided, however, that Tenant shall receive as a credit against any
late charge or default interest payable on the then outstanding Loan an amount
equal to the product of (x) the sum of the late charge paid pursuant to
Paragraph 7(a)(ii)and the amount of the default interest paid pursuant to
Paragraph 7(a)(iv) and (y) the ratio of the amount of the Loan to the
Acquisition Cost; and

                  (iv) interest at the rate (the "Default Rate") of three
percent (3%) over the Prime Rate per annum on the following sums until paid in
full (A) all overdue installments of Basic Rent from the date that is (5)
Business Days after the respective due dates thereof, (B) all overdue amounts of
Additional Rent relating to obligations which Landlord shall have paid on
behalf of Tenant and delivered notice to Tenant, and (C) all other overdue
amounts of Additional Rent, from the date that is ten (10) Business Days after
the date upon which Landlord shall have notified Tenant in writing of such
overdue amount.

            (b) Tenant shall pay and discharge (i) any Additional Rent referred
to in Paragraph 7(a)(i) when the same shall become due, provided that amounts
which are billed to Landlord or any third party, but not to Tenant, shall be
paid within ten (10) Business Days after Landlord's written request for payment
thereof, and (ii) any other Additional Rent, within ten (10) Business Days after
Landlord's written request for payment thereof.

            (c) In no event shall amounts payable under Paragraph 7(a)(ii),(iii)
and (iv) or elsewhere in this Lease exceed the maximum amount permitted by
applicable Law.

      8.    Net Lease; Non-Terminability.

            (a) This is a net lease and all Monetary Obligations shall be paid
without notice or demand (except as expressly set forth herein) and without
set-off, counterclaim, recoupment, abatement, suspension, deferment, diminution,
deduction, reduction or defense (collectively, a "Set-Off").

                                      -12-
<PAGE>

            (b) Except as expressly set forth in this Lease, this Lease and the
rights of Landlord and the obligations of Tenant hereunder shall not be affected
by any event or for any reason or cause whatsoever foreseen or unforeseen.

            (c) The obligations of Tenant hereunder shall be separate and
independent covenants and agreements, all Monetary Obligations shall continue
to be payable in all events (or, in lieu thereof, Tenant shall pay amounts equal
thereto), and the obligations of Tenant hereunder shall continue unaffected
unless the requirement to pay or perform the same shall have been terminated
pursuant to an express provision of this Lease. All Rent payable by Tenant
hereunder shall constitute "rent" for all purposes (including Section 502(b)(6)
of the Federal Bankruptcy Code).

            (d) Except as otherwise expressly provided in this Lease, Tenant
shall have no right and hereby waives all rights which it may have under any Law
(i) to quit, terminate or surrender this Lease or any of the Leased Premises, or
(ii) to any Set-Off of any Monetary Obligations.

9.    Payment of Impositions. Tenant shall, before interest or penalties are due
thereon, pay and discharge all taxes (including real and personal property,
franchise, sales, gross receipts and; rent taxes), all charges for any easement
or agreement maintained for the benefit of any of the Leased Premises, all
assessments and levies, all permit, inspection and license fees, all rents and
charges for water, sewer, utility and communication services relating to any of
the Leased Premises, all ground rents and all other public charges whether of a
like or different nature, even if unforeseen or extraordinary, imposed upon or
assessed against (i) Tenant,(ii) Tenant's leasehold interest in the Leased
Premises, (iii) any of the Leased Premises, (iv) Landlord as a result of or
arising in respect of the acquisition, ownership, occupancy, leasing, use,
possession of any of the leased Premises or the sale of any of the Leased
Premises or any part thereof to Tenant or its designee or any activity conducted
on any of the Leased Premises, or imputed to or payable by Landlord as the
result of its ownership of the Leased Premises or the Rent, or (v) any Lender by
reason of any Note, Mortgage Assignment or other document evidencing or securing
a Loan and which (as to this clause (v)) Tenant has agreed to pay (collectively,
the "Impositions"); provided, that nothing herein shall obligate Tenant to pay
Landlord Expenses. Landlord shall have the right to require Tenant to pay,
together with scheduled installments of Basic Rent, the amount of the gross
receipts or rent tax, if any, payable with respect to the amount of such
installment of Basic Rent. If any Imposition may be paid in installments without
penalty. Tenant shall have the option to pay such Imposition in installments. In
any event, Tenant shall be liable only for those Impositions which accrue or
become due and payable during the Term, and Landlord shall reimburse Tenant as
of the expiration of the Term for any Impositions paid by Tenant that accrue on
account of the period from and after the expiration of the Term. Tenant shall
prepare and file all tax reports required by governmental authorities which
relate to the Impositions. Tenant shall deliver to Landlord (1) copies of all
settlements and notices pertaining to the Impositions which may be issued by any
governmental authority within ten (10) Business Days after Tenant's receipt
tnereof, (2) receipts for payment of all taxes required to be paid by Tenant
hereunder within thirty (30) Business Days after the due date thereof and (3)
receipts for payment of all other Impositions within ten (10) Business Days
after Landlord's request therefor.

      10.   Compliance with laws and Easement Agreements; Environmental Matters.

            (a) Tenant Shall, at its expense, comply with and conform to, and
cause the Leased Premises and any other Person occupying any part of the Leased
Premises to comply with and conform to, all Insurance Requirements and Legal
Requirements (including all applicable Environmental Laws). Tenant shall not at
any time (i) cause, permit or suffer to occur

                                      -13-
<PAGE>

any Environmental Violation or (ii) permit any sublessee, assignee or other
Person occupying the Leased Premises under through Tenant to cause, permit or
suffer to occur any Environmental Violation and, at the request of Landlord or
Lender, Tenant shall promptly remediate or undertake any other appropriate
response action to correct any existing Environmental Violation, however
immaterial, and (iii) without the prior written consent of Landlord and Lender,
permit any drilling or exploration for or extraction, removal, or production of
any minerals from the surface or the subsurface of the Land, regardless of the
depth thereof or the method of mining or extraction thereof. Any and all reports
prepared for or by Landlord with respect to the Leased Premises shall be for the
sole benefit of Landlord and Lender and no other Person shall have the right to
rely on any such reports.

            (b) Tenant, at its sole cost and expense, will at all times promptly
and faithfully abide by, discharge and perform all of the covenants, conditions
and agreements contained in any Easement Agreement on the part of Landlord or
the occupant of the Leased Premises to be kept and performed thereunder. Tenant
will not after, modify, amend or terminate any Easement Agreement, give any
consent or approval thereunder, or enter into any new Easement Agreement, in
each case in any manner that would have an adverse effect on the value of
Landlord's residual interest in the Leased Premises, without the prior written
consent of Landlord which consent shall not be unreasonably withheld or delayed.
Landlord shall not alter, modify, amend or terminate any Easement Agreement,
give any consent or approval thereunder, or enter into any new Easement
Agreement without the prior written consent of Tenant, which may be withheld in
Tenant's a sole discretion, unless such modification or amendment to an existing
Easement Agreement or a new Easement Agreement is necessary in the reasonable
opinion of Landlord for the continued operation of the Leased Premises after the
expiration of this Lease, in which event Tenant's consent shall not be
unreasonably withheld or delayed.

            (c) Upon reasonable prior written notice from Landlord, Tenant shall
permit such person as Landlord may designate ("Site Reviewers") to visit the
Leased Premises at reasonable times and, in each event, accompanied by a
representative designated by Tenant perform environmental site investigations
and assessments ("Site Assessments") on the Leased Premises (i) in connection
with any sale, financing or refinancing of the Leased Premises, (ii) within the
six month period prior to the expiration of the Term, (iii) if reasonably
required by Lender or the terms of any credit facility to which Landlord is
bound, (iv) if an Event of Default exists, or (v) at any other time that, in the
opinion of Landlord or Lender, a reasonable basis exists to believe that an
Environmental Violation exists. Such Site Assessments may include both above and
below the ground testing for Environmental Violations and such other tests as
may be necessary, in the opinion of the Site Reviewers, to conduct the Site
Assessments. Tenant shall supply to the Site Reviewers such historical and
operational information in its possession regarding the Leased Premises as may
be reasonably requested by the Site Reviewers to facilitate the Site
Assessments, and shall make available for meeting with the Site Reviewers
appropriate personnel having knowledge of such matters. The cost of performing
and reporting any Site Assessments (i) reasonably required by the Lender that
makes the initial Loan or (ii) if an Environmental Violation is found to exist
shall be paid by Landlord. The cost of performing and reporting any other Site
Assessments shall be paid by Landlord. All such Site Assessments shall be
conducted in a manner that shall not interfere in any material respect with the
conduct by Tenant of its business in the Leased Premises.

            (d) If an Environmental Violation occurs or is found to exist and,
in Landlord's reasonable judgment, the cost of remediation of, or other response
action with respect to, the same is likely to exceed ten percent (10%) of the
Acquisition Cost for the applicable Related Premises. Tenant shall provide to
Landlord, within ten (10) Business Days after Landlord's request therefor,
adequate assurances that Tenant has the financial resources to effect such
remediation in accordance with applicable Environmental Laws.

                                      -14-
<PAGE>

            (e) Notwithstanding any other provision of this Lease, if an
Environmental Violation occurs or is found to exist at any Related Premises, and
the Term would otherwise terminate or expire, and Landlord after good-faith
efforts to relet such Related Premises through a third-party broker at market
rate is unable to do so solely as a result of such Environmental Violation,
then, at the option of Landlord, the Term shall be automatically extended beyond
the date of termination or expiration with respect to such Related Premises and
this Lease shall remain in full force and effect with respect to such Related
Premises beyond such date until the earlier to occur of (i) the completion of
all remedial action in accordance with applicable Environmental Laws or (ii) the
date specified in a written notice from Landlord to Tenant terminating this
Lease.

            (f) If Tenant fails to commence to correct any Environmental
Violation which occurs or is discovered to exist, within ninety (90) days
following such occurrence or discovery Landlord shall have the right (but no
obligation) to take any and all actions as Landlord shall deem necessary or
advisable in order to cure such Environmental Violation.

            (g) Tenant shall notify Landlord immediately after becoming aware of
any Environmental Violation (or alleged Environmental Violation) or
noncompliance with any of the covenants contained in this Paragraph 10 and shall
forward to Landlord immediately upon receipt thereof copies of all orders,
reports, notices, permits, applications or other communications relating to any
such violation or noncompliance.

            (h) All future leases, subleases or concession agreements relating
to the Leased Premises entered into by Tenant shall contain covenants of the
other party not to at any time (i) cause any Environmental Violation to occur or
(ii) permit any Person occupying the Leased Premises through said subtenant or
concessionaire to cause any Environmental Violation to occur.

      11. Liens: Recording

            (a) Tenant shall not, directly or indirectly, create or permit to be
created or to remain and shall promptly discharge or remove any lien, levy or
encumbrance on Landlord's fee interest in any of the Leased Premises or on any
Rent or any other sums payable by Tenant under this Lease, other than any
Mortgage or Assignment, the Permitted Encumbrances and any mortgage, lien,
encumbrance or other charge created by or resulting solely from any act Or
omission Of Landlord. NOTICE IS HEREBY GIVEN THAT LANDLORD SHALL NOT BE LIABLE
FOR ANY LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO TENANT OR
TO ANYONE HOLDING OR OCCUPYING ANY OF THE LEASED PREMISES THROUGH OR UNDER
TENANT, AND THAT NO MECHANICS' OR OTHER LIENS FOR ANY SUCH LABOR, SERVICES OR
MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF LANDLORD IN AND TO ANY OF
THE LEASED PREMISES.

            (b) Landlord and Tenant shall execute, deliver and record, file or
register (collectively, "record") all such instruments as may be required or
permitted by any present or future Law in order to evidence the respective
interests of Landlord and Tenant in the Leased Premises, and shall cause a
memorandum of this Lease (or, if such a memorandum cannot be recorded, this
Lease), and any supplement hereto or thereto, to be recorded in such manner and
in such places as may be required or permitted by any present or future Law in
order to protect the validity and priority of this Lease.

                                -15-

<PAGE>

      12. Maintenance and Repair.

            (a) Subject to Tenant's rights to make Alterations in accordance
with paragraph 13, Tenant shall at all times maintain each Related Premises and,
to the extent that Landlord or Tenant have any obligations, the Adjoining
Property in as good repair and condition as they are in on the date hereof, fit
to be used as a manufacturing and/or distribution facility (or as otherwise
permitted under the Section 4 of this Lease, in safe condition and in compliance
with applicable Laws and, in the case of the Equipment, in as good mechanical
condition as it was on the later of the date hereof or the date of its
installation, except in each instance for ordinary wear and tear. Tenant shall
promptly make all Alterations of every kind and nature, whether foreseen or
unforeseen, which may be required to comply with the foregoing requirements of
this Paragraph 12(a). Landlord shall not be required to make any Alteration,
whether foreseen or unforeseen, or to maintain any of the Related Premises or
Adjoining Property in any way, and Tenant hereby expressly waives any right
which may be provided for in any Law now or hereafter in effect to make
Alterations at the expense of Landlord or to require Landlord to make
Alterations. Any Alteration made by Tenant pursuant to this Paragraph 12 shall
be made in conformity with the provisions of Paragraph 13.

            (b) If any Improvement hereafter constructed shall (i) encroach upon
any setback or any property, street or right-of-way adjoining any Related
Premises, (ii) violate the provisions of any restrictive covenant affecting any
Related Premises, (iii) hinder or obstruct any easement or right-of-way to which
any of any Related Premises is subject or (iv) impair the rights of others in,
to or under any of the foregoing. Tenant shall, promptly after receiving notice
from an interested party, either (A) obtain from all necessary parties waivers
or settlements of all claims, liabilities and damages resulting from each such
encroachment, violation, hindrance, obstruction or impairment, whether the same
shall affect Landlord, Tenant or both, or (B) take such action as shall be
necessary to remove all such encroachments, hindrances or obstructions and to
end all such violations or impairments, including, if necessary, making
Alterations.

      13. Alterations and, Improvements.

            (a) Tenant shall have the right, without having obtained the prior
written consent of Landlord and Lender, to (i) make non-structural Alterations
to the interior of the Improvements (including, without limitation,
construction, removal or relocation of partition walls, but excluding interior
stairways), without limitation as to amount so long as the primary use of the
Improvements is manufacturing and distribution and to install, remove and/or
relocate Tenant's Equipment, (ii) make any other non-structural Alterations or a
series of related non-structural Alterations that, as to any such other
Alterations or series of related Alterations, do not cost in excess of ten
percent (10%) of the Acquisition Cost of the applicable Related Premises, and
(iii) install Equipment in the Improvements or accessions to the Equipment that,
as to such Equipment or accessions, do not cost in excess of ten percent (10%)
of the Acquisition Cost of the applicable Related Premises, so long as at the
time of construction of installation of any such Equipment, Alterations or
expansion no Event of Default exists and the value and utility of the applicable
Related Premises is not diminished thereby in any material respect. If Tenant
desires to make any Alterations not permitted above, the prior written approval
of Landlord and Lender shall be required, which shall not be unreasonably
withheld or delayed. Except as provided in this Paragraph 13(a) Tenant shall not
construct upon the Land any additional buildings without having first obtained
the prior written consent of Landlord and Lender, which shall not be
unreasonably withheld or delayed. Landlord shall have the right to require
Tenant to remove and/or restore any Alterations, other than Alterations (w)
required by Law or by this Lease (including Paragraph 12(a)), (x) permitted
pursuant to clause (iv) above or constituting additional buildings constructed
upon the Land with the consent of Landlord and Lender, or (y) with respect to
which Landlord has agreed in writing, as provided below, are not required to be
removed or restored. Tenant shall have the right, with respect to any Alteration
that Tenant

                                      -16-

<PAGE>

would otherwise be required to remove or restore pursuant to the preceding
sentence, to give notice to Landlord describing such Alteration and requesting
that Landlord determine whether or not such Alteration will be required to be
removed or restored at the end of the Term. Within ten (10) Business Days after
receipt of Tenant's notice, Landlord shall give notice to Tenant informing
Tenant whether Landlord will require removal or restoration of such Alteration
at the expiration of the Term; provided, that Landlord shall act reasonably in
determining whether or not to require such restoration or removal.

              (b) If Tenant makes any Alterations pursuant to this Paragraph 13
or as required by Paragraph 12 or 17, whether or not Landlord's consent is
required, then (i) the market value of the applicable Related Premises shall not
be lessened by any such Alterations in any material respect or its usefulness
impaired in any material respect, (ii) all such Alterations shall be performed
by Tenant in a good and workmanlike manner, (iii) all such Alterations shall be
expeditiously completed in compliance with all Legal Requirements, (iv)all such
Alterations shall comply with the Insurance Requirement, (v) if any such
Alterations involve the replacement of Equipment or parts thereto, all
replacement Equipment or parts shall be in good repair and condition and fit for
its intended use and shall have a value and useful life equal to or greater
than the value and useful life of the Equipment being replaced immediately prior
to occurrence of the event which required its replacement (assuming such
replaced Equipment was then in the condition required by this Lease), (vi)
Tenant shall promptly discharge or remove all liens filed against any of the
Leased Premises arising out of such Alterations, (vii) Tenant shall procure and
pay for all permits and licenses required in connection with any such
Alterations, (viii) all such Alterations shall be the property of Landlord and
shall be subject to this Lease, and Tenant shall execute and deliver to Landlord
any document reasonably requested by Landlord evidencing the assignment to
Landlord of all estate, right, title and interest (other than the leasehold
estate created hereby) of Tenant or any other Person thereto or therein, and
(ix) Tenant shall comply, to the extent requested by Landlord or required by
this Lease, with the provisions of Paragraphs 12(a) and the applicable
provisions of Paragraph 19(a), whether or not such Alterations involve
restoration of any of the Leased Premises.

      14. Permitted Contests. Notwithstanding any other provision of this Lease,
Tenant shall not be required to (a) pay any Imposition, (b) discharge or remove
any lien referred to in Paragraph 11 or 13, (c) take any action with respect to
any encroachment, violation, hindrance, obstruction or impairment referred to in
Paragraph 12(b), or (d) comply with any Law or Legal Requirement including
Environmental Laws (such non-compliance with the terms hereof being hereinafter
referred to collectively as "Permitted Violations"), so long as at the time of
such contest no Event of Default exists and so long as Tenant shall contest, in
good faith and in accordance with all applicable Laws, the existence, amount or
validity thereof, the amount of the damages caused thereby, or the extent of its
or Landlord's liability therefor by appropriate proceedings which shall operate
during the pendency thereof to prevent or stay (i) the collection from, or other
realization upon any Related Premises or the Rent as a result of, the Permitted
Violation so contested, (ii) the imminent sale, forfeiture or loss of any of the
Leased Premises or any Rent to satisfy or to pay any damages caused by any
Permitted Violation, (iii) any interference with the payment of any Rent, or
(iv) the cancellation of any insurance policy affecting any of the Leased
Premises or a statement by the carrier that coverage will be denied. Tenant
shall provide Landlord security which is satisfactory, in Landlord's reasonable
judgment, to assure that such Permitted Violation is corrected, including all
Costs, interest and penalties that may be incurred or become due in connection
therewith. While any proceedings which comply with the requirements of this
Paragraph 14 are pending and the required security is held by Landlord, Landlord
shall not have the right to correct any Permitted Violation thereby being
contested unless Landlord is required by law to correct such Permitted Violation
and Tenant's contest does not prevent or stay such requirement as to Landlord.
Each such contest shall be promptly and diligently prosecuted by Tenant to a
final conclusion, except that Tenant, so long as the conditions of this
Paragraph 14 are at all times complied with, has the right to attempt to

                                      -17-

<PAGE>

settle or compromise such contest through negotiations. Tenant shall pay any and
all losses, judgments, decrees and Costs in connection with any such contest and
shall, promptly after the final determination of such contest, fully pay and
discharge the amounts which shall be levied, assessed, charged or imposed or be
determined to be payable therein or in connection therewith, together with all
penalties, fines, interest and Costs thereof or in connection therewith, and
perform all acts the performance of which shall be ordered or decreed as a
result thereof. No such contest shall subject Landlord to the risk of any
criminal liability or, unless paid by Tenant, civil liability.

      15. Indemnification.

            (a) Tenant shall pay, protect, indemnify, defend, save and hold
harmless Landlord, Lender and all other Persons described in Paragraph 30 (each
an "Indemnitee") from and against any and all liabilities, losses, damages
(including punitive damages), penalties, Costs (including reasonable attorneys'
fees and costs), causes of action, suits, claims, demands or judgments of any
nature whatsoever, howsoever caused, without regard to the form of action and
whether based on strict liability, negligence or any other theory of recovery at
law or in equity (but excluding Landlord Expenses and any matter caused by the
gross negligence Or willful misconduct of the Indemnitee seeking indemnification
or an agent of such Indemnitee) arising from (i) any matter pertaining to the
acquisition (or the negotiations leading thereto) ownership, use, non-use,
occupancy, operation, condition, design, construction, maintenance, repair or
restoration of any of the Leased Premises or, to the extent that Landlord or
Tenant has any obligations thereto, the Adjoining Property, or any liability
imputed to such party as the result of Landlord's ownership of the Leased
Premises, (ii) any casualty in any manner arising from any of the Leased
Premises or Adjoining Property, whether or not Indemnitee has or should have
knowledge or notice of any defect or condition causing or contributing to said
casualty, (iii) any violation by Tenant of any provision of this Lease, any
contract or agreement to which Tenant is a party, any Legal Requirement or any
Permitted Encumbrance or any encumbrance Tenant consented to (other than the
Mortgage or the Assignment) or (iv) any alleged, threatened or actual
Environmental Violation (unless caused by the Indemnitee seeking indemnification
or an agent of such Indemnitee), including (A) liability for response costs and
for costs of removal and remedial action incurred by the United States
Government, any state or local governmental unit or any other Person, or damages
from injury to or destruction or loss of natural resources, including the
reasonable costs of assessing such injury, destruction or loss, incurred
pursuant to Section 107 of CERCLA, or any successor section or act or provision
of any similar state or local Law, (B) liability for costs and expenses of
abatement, correction or clean-up, fines, damages, response costs or penalties
which arise from the provisions of any of the other Environmental Laws and (C)
liability for personal injury or property damage arising under any statutory or
common-law tort theory, including damages assessed for the maintenance of a
public or private nuisance or for carrying on of a dangerous activity.

            (b) In case any action or proceeding is brought against any
Indemnitee by reason of any such claim, (i) Tenant may, except in the event of a
conflict of interest or a dispute between Tenant and any such Indemnitee (a
"Conflict") or during the continuance of an Event of Default, retain its own
counsel and defend such action (it being understood that Landlord may employ
counsel of its choice to monitor the defense of any such action, the cost of
which shall be paid by Landlord except in the case of a Conflict) and (ii) such
Indemnitee shall notify Tenant to resist or defend such action or proceeding by
retaining counsel reasonably satisfactory to such Indemnitee, and such
Indemnitee will cooperate and assist in the defense of such action or proceeding
if reasonably requested so to do by Tenant. In the event of a Conflict Or
during the continuance of an Event of Default, Landlord shall have the right to
select counsel, and the cost of such counsel shall be paid by Tenant.

                                      -18-

<PAGE>

            (c) The obligations of Tenant under this Paragraph 15 shall survive
any termination, expiration or rejection in bankruptcy of this Lease with
respect to any matter than occurred or existed prior to such termination,
expiration or rejection.

      16. Insurance.

            (a) Tenant shall maintain the following insurance on or in
connection with the Leased Premises:

                  (i) Insurance against all risk of physical loss Or damage to
the Improvements and Equipment as provided under "Special Causes of Loss" form
coverage, and including customarily excluded perils of hail, windstorm, flood
coverage, earthquake and, to the extent required by Lender, terrorism insurance
in amounts not less than the actual replacement cost of the Improvements and
Equipment; provided that, if Tenant's insurance company is unable or unwilling
to include any of all or such excluded perils, Tenant shall have the, option of
purchasing coverage against such perils from another insurer on a "Difference in
Conditions" form or through a stand-alone policy. Such policies shall contain
Replacement Cost and Agreed Amount Endorsements and "Law and Ordinance" coverage
(at full replacement cost). Such policies and endorsements shall contain
deductibles not more than $100,000 per occurance.

                  (ii) Commercial General Liability Insurance (including but not
limited to Incidental Medical Malpractice and Host Liquor Liability) and
Business Automobile Liability Insurance (including Non-Owned and Hired
Automobile Liability) against claims for personal and bodily injury, death or
property damage occurring on, in or as a result of the use of any of the Leased
Premises, in an amount not Less than $15,000,000 per occurrence/annual aggregate
on a claims occurrence basis and all other coverage extensions that are usual
and customary for properties of this size and type provided, however, that the
Landlord shall have the right to require such higher limits as may be reasonable
and customary for properties of this size and type.

                  (iii) Workers' compensation insurance covering all persons
employed by Tenant in connection with any work done on or about any of the
leased Premises for which claims for death, disease or bodily injury may be
asserted against Landlord, Tenant or any of the Leased Premises or, in lieu of
such workers' Compensation Insurance, a program of self-insurance complying with
the rules, regulations and requirements of the appropriate agency of the State.

                  (iv) Comprehensive Boiler and Machinery Insurance on any of
the Equipment or any other equipment on or in the Leased Premises, in an amount
not less than $5,000,000 per accident for damage to property. Either such Boiler
and Machinery policy or the All-Risk policy required in (i) above may contain a
deductible not to exceed $100,000 and shall include at least $3,000,000 per
incidence for Off-Premises Service Interruption, and at least $100,000 per
incidence for Expediting Expenses, Ammonia Contamination and Hazardous Materials
Clean-Up Expense.

                  (v) Business Income/Extra Expense Insurance at limits
sufficient to cover 100% of the period of indemnity not less than one year From
time of loss plus a six month extended period of indemnity. Such insurance shall
name Landlord as loss payee solely with inspect to Rent payable to or for the
benefit of Landlord as its interest appears under this lease.

                  (vi) During any period in which substantial Alterations at any
Related Premises are being undertaken, builder's risk insurance covering the
total completed value including any "soft costs" with respect to the
Improvements being altered or repaired (on a

                                      -19-

<PAGE>

completed value, non-reporting basis), replacement cost of work performed and
equipment, supplies and materials furnished in connection with such construction
or repair of Improvements or Equipment, together with such "soft cost"
endorsements and such other endorsements as Landlord may reasonably require and
general liability, worker's compensation and automobile liability insurance with
respect to the Improvements being constructed, altered or repaired.

                  (vii) Such other insurance (or other terms with respect to any
insurance required pursuant to this Paragraph 16, including without limitation
amounts of coverage, deductibles, form of mortgagee clause) on or in connection
with any of the Leased Premises as Landlord or Lender may reasonably require,
which at the time is usual and commonly obtained in connection with properties
similar in type of building, size, use and to the Leased Premises.

              (b) The insurance required by Paragraph 16(a) shall be written, by
companies which have a Best's rating of A:X or above and a claims paying ability
rating of A or better by S&P or equivalent rating agency approved by Landlord
and Lender and are admitted in, and approved to write insurance policies by, the
State Insurance Department for the State. Notwithstanding the foregoing,
Landlord and Lender shall, with respect to the insurance, required pursuant to
Paragraph 16(a)(i), accept policies written by Factory Mutual Insurance Company
("F.M. Global") during any period while F.M. Global does not have an A or better
S&P claims paying ability rating so long as F.M. Global has a Best's rating of
A:X or above. The insurance policies (i) shall be for such terms as Landlord may
reasonably approve and (ii) shall be in amounts sufficient at all times to
satisfy any coinsurance requirements thereof. The insurance referred to in
Paragraphs 16(a)(i), 16(a)(iv) and 16(a)(vi) shall name Landlord as Owner and
Lender as loss payee, as its interest may appear, and Tenant as its interest may
appear. The insurance referred to in Paragraph 16(a)(ii) shall name Landlord and
Lender as additional insureds, and the insurance referred to in Paragraph
16(a)(v) shall name Landlord as insured and Lender and Landlord as loss payees,
as their respective interests may appear. If said insurance or any part thereof
shall empire, be withdrawn, become void, voidable, unreliable or unsafe for any
reason, including a breach of any condition thereof by Tenant or the failure or
impairment of the capital of any insurer, or if for any other reason whatsoever
said insurance shall become reasonably unsatisfactory to Landlord, Tenant shall
immediately obtain new or additional insurance reasonably satisfactory to
Landlord.

            (c) Each insurance policy referred to in clauses (i), (iv), (v) and
(vi) of Paragraph 16(a) shall contain standard non-contributory mortgagee
clauses in favor of and acceptable to Lender. Each policy required by any
provision of Paragraph 16(a), except clause (iii) thereof, shall provide that
it may not be cancelled, substantially modified or allowed to lapse on any
renewal date except after thirty (30) days' prior notice to Landlord and Lender.
Each such policy shall also provide that any loss otherwise payable thereunder
shall be payable notwithstanding (i) any act or omission of Landlord or Tenant
which might, absent such provision result in a forfeiture of all or a part of
such insurance payment, (ii) the occupation or use of any of the Leased Premises
for purposes more hazardous than those permitted by the provisions of such
policy, (iii) any foreclosure or other action or proceeding taken by Lender
pursuant to any provision of the Mortgage, Note, Assignment or other document
evidencing or securing the Loan upon the happening of an event of default
therein or (iv) any change in title to or ownership of any of the Leased
Premises.

            (d) Tenant shall pay as they become due all premiums for the
insurance required by Paragraph 16(a), shall renew or replace each policy and
deliver to Landlord evidence of the payment of the full premium therefor or
installment then due at least thirty (30) days prior to the expiration date of
such policy, and shall promptly deliver to Landlord all original certificates of
insurance or, if required by Lender, original or certified policies.

                                      -20-

<PAGE>

            (e) Anything in this Paragraph 16 to the contrary notwithstanding,
any insurance which Tenant is required to obtain pursuant to Paragraph l6(a) may
be carried under a "blanket" or umbrella policy or policies covering other
properties or liabilities of Tenant, provided that such "blanket" or umbrella
policy or policies otherwise comply with the provisions of this Paragraph 16 and
provided Further that Tenant shall provide to Landlord a Statement of Values
which shall be reviewed annually and amended as necessary based on Replacement
Cost Valuations. The original or a certified copy of each such "blanket" or
umbrella policy shall promptly be delivered to Landlord.

            (f) Tenant shall promptly comply with and conform to (i) all
provisions of each insurance policy required by this Paragraph 16 and (ii) all
requirements of the insurers thereunder applicable to Landlord Tenant or any of
the Leased Premises or to the use, manner of use, occupancy, possession,
operation, maintenance, alteration or repair of any of the Leased Premises,
even if such compliance necessitates Alterations or results in interference
with the use or enjoyment of any of the Leased Premises.

            (g) Tenant shall not carry separate insurance concurrent in form or
contributing in the event of a Casualty with that required in this Paragraph 16
unless (i) Landlord and Lender are included therein as named insureds, with loss
payable as provided herein, and (ii) such separate insurance complies with the
other provisions of this Paragraph 16. Tenant shall immediately notify Landlord
of such separate insurance and shall deliver to Landlord the original policies
or certified copies thereof.

            (h) All policies shall contain effective waivers by the carrier
against all claims for insurance premiums against Landlord and shall contain
full waivers of subrogation against the Landlord.

            (i) All proceeds of any insurance required under Paragraph 16(a)
shall be payable as follows:

                  (i) Proceeds payable under clauses (ii), (iii) and (iv) of
Paragraph 16(a) and proceeds attributable to the general liability coverage of
Builder's Risk insurance under clause (vi) of Paragraph 16(a) shall be payable
to the Person entitled to receive such proceeds.

                  (ii) Proceeds of insurance required under clause (i) of
Paragraph 16(a) and proceeds attributable to Builder's Risk insurance (other
than its general liability coverage provisions) under clause (vi) of Paragraph
16(a) shall be payable to Landlord or Lender and applied as set forth in
Paragraph 17 or, if applicable, Paragraph 18. Tenant shall apply the Net Award
to restoration of the applicable Related Premises in accordance with the
applicable provisions of this Lease unless a Termination Event shall have
occurred and Tenant has given a Termination Notice.

      17. Casualty and Condemnation.

            (a) if any Casualty to any Related Premises occurs the insurance
proceeds of which are reasonably likely to be in excess of One Hundred Thousand
Dollars ($100,000), Tenant shall give Landlord and Lender immediate notice
thereof. So long as no Event of Default then exists Tenant is hereby authorized
to adjust, collect and compromise all claims under any of the insurance policies
required by Paragraph 16(a) (except public liability insurance claims payable to
a Person other than Tenant, Landlord or Lender) and to execute and deliver on
behalf of Landlord all necessary proofs of loss, receipts, vouchers and
releases required by the insurers and Landlord shall have the right to join with
Tenant therein. Any final adjustment, settlement or compromise of any such claim
in excess of $250,000 shall be subject

                                      -21-

<PAGE>

to the prior written approval of Landlord, which approval shall not be
unreasonably withheld or delayed, and Landlord shall have the right to require
Tenant to prosecute or contest any such claim, adjustment, settlement or
compromise. If an Event of Default then exists, (i) Tenant shall not be entitled
to adjust, collect or compromise any such claim or to participate with Landlord
in any adjustment, collection and compromise of the Net Award payable in
connection with a Casualty, (ii) Tenant agrees to sign, upon the request of
Landlord, all such proofs of loss, receipts, vouchers and releases, (iii) each
insurer is hereby authorized and directed to make payment under said policies,
including return of unearned premiums, directly to Landlord or, if required by
the Mortgage, to Lender instead of to Landlord and Tenant jointly, and Tenant
hereby appoints each of Landlord and Lender as Tenant's attorneys-in-fact to
endorse any draft therefor. The rights of Landlord under this Paragraph 17(a)
shall be extended to Lender if and to the extent that any Mortgage so provides.

            (b) Tenant, immediately upon receiving a Condemnation Notice, shall
notify Landlord and Lender thereof. So long as no Event of Default exists,
Tenant is authorized to collect, settle and compromise the amount of any Net
Award and Landlord shall have the right to join with Tenant herein. If an Event
of Default exists, Landlord shall be authorized to collect, settle and
compromise the amount of any Net Award and Tenant shall not be entitled to
participate with Landlord in any Condemnation proceeding or negotiations under
threat thereof or to contest the Condemnation or the amount of the Net Award
therefor. No agreement with any condemnor in settlement or under threat of any
Condemnation shall be made by Landlord or Tenant without the written consent of
the other party, not to be unreasonably withheld or delayed. Upon receipt, any
Net Award shall be distributed first, to Landlord, up to an amount equal to the
sum of the Acquisition Cost for the applicable Related Premises and the
applicable Prepayment Premium which Landlord will be required to pay in
prepaying any Loan with the proceeds of the Net Award, then to Tenant up to an
amount equal to the value of Tenant's leasehold estate hereunder and the value
of any expansion or addition or any additional buildings constructed by Tenant
during the Term, and, any balance of such Net Award to Landlord. Moreover,
nothing in this Lease (i) shall impair Tenant's right to any award or payment
on account of Tenant's trade fixtures, equipment or other tangible property
which is not part of the Equipment, moving expenses or loss of business, if
available, to the extent that and so long as (A) Tenant shall have the right to
make, and does make, a separate claim therefor against the condemnor and (B)
such claim does not in any way reduce the amount of the Net Award or, if Tenant
gives a Termination Notice to Landlord, affect the obligations of Tenant under
Paragraph 18 hereof to pay the Termination Amount. The rights of Landlord under
this Paragraph 17(b) shall also be extended to Lender if and to the extent that
any Mortgage so provides.

            (c) If any Casualty (whether or not insured against) or Partial
Condemnation shall occur to any Related Premises, this Lease shall continue,
notwithstanding such event, and there shall be no abatement or reduction of any
Monetary Obligations, except as provided in Paragraph 19(c). Promptly after such
Casualty or Partial Condemnation, Tenant, as required in Paragraph 12(a), shall
commence and diligently continue to restore such Related Premises as nearly as
possible to their value, condition and character immediately prior to such event
(assuming the Leased Premises to have been in condition required by this Lease)
So long as no Event of Default exists, any Net Award up to and including
$250,000 shall be paid by Landlord to Tenant and Tenant shall restore the Leased
Premises in accordance with the requirements of Paragraph 13(b) of this Lease.
Any Net Award in excess of $250,000 shall (unless such Condemnation resulting in
the Net Award is a Termination Event) be made available by Landlord (or Lender,
if required by the terms of any Mortgage) to Tenant for the restoration of any
of the Leased Premises pursuant to and in accordance with the provisions of
Paragraph 19 hereof and any balance shall be refunded to Landlord. If any
Condemnation which is not a Partial Condemnation shall occur, Tenant shall
comply with the terms and conditions of Paragraph 18.

                                      -22-

<PAGE>

      18. Termination Events.

            (a) If either (i) an entire Related Premises shall be taken by a
Condemnation or (ii) any substantial portion of any Related Premises shall be
taken by a Condemnation and, in the case of clause (ii), Tenant certifies and
covenants to Landlord that it will be unable to continue to conduct its business
in such Related Premises and that it will forever abandon operations at the
Related Premises (any Related Premises described In the above clauses (i), (ii)
and (iii) being hereinafter referred to as the "Affected Premises" and each of
the events described in the above clauses (i) and (ii) shall hereinafter be
referred to as a "Termination Event") then Tenant shall have the option, within
sixty (60) days after Tenant receives a Condemnation Notice to give to Landlord
written notice in the form described in Paragraph 18(b) of the Tenant's election
to terminate this Lease as to the Affected Premises (a "Termination Notice"). If
Tenant elects under clause (ii) above not to give Landlord a Termination Notice,
then Tenant shall rebuild or repair the Affected Premises in accordance with
Paragraphs 17 and 19.

            (b) A Termination Notice shall contain (i) notice of Tenant's
intention to terminate this Lease as to the Affected Premises on the first Basic
Rent Payment Date which occurs at least sixty (60) days after the date of the
Termination Notice (the "Termination Date") (ii) if the Termination Event is an
event described in Paragraph 18(a)(ii), the certification and covenants
described therein and a certified resolution of the Board of Directors of Tenant
authorizing the same.

            (c) This Lease shall terminate as to the Affected Premises on the
Termination Date; provided that, if Tenant has not satisfied all Monetary
Obligations and all other obligations and liabilities under this Lease which
have arisen as to the Affected Premises on or prior to the Termination Date
(collectively, "Remaining Obligations") on the Termination Date, then Landlord
may, at its option, extend the date on which this Lease may terminate to a date
which is no later than the first Basic Rent Payment Date after the Termination
Date on which Tenant has satisfied all Remaining Obligations. Upon such
termination (i) all obligations of Tenant hereunder as to the Affected Premises
shall terminate except for any Surviving Obligations, (ii) Tenant shall
immediately vacate and shall have no further right, title or interest in or to
the Affected Premises and (iii) the portion of any Net Award payable to Landlord
in the event of a Condemnation shall be retained by Landlord. Notwithstanding
anything to the contrary hereinabove contained, if on the Termination Date
Landlord shall not have received the full amount of the Net Award payable to
Landlord by reason of the applicable Termination Event, then the date on which
this Lease is to terminate with respect to the Affected Premises shall be
automatically extended to the first Basic Rent Payment Date after the receipt by
Landlord of the full amount of the Net Award payable to Landlord provided that,
if Tenant has not satisfied all Remaining Obligations on such date, then
Landlord may, at its option, extend the date on which this Lease may terminate
as to the Affected Premises to a date which is no later than the first Basic
Rent Payment Date after such date on which Tenant has satisfied all such
Remaining Obligations.

            (d) In the event of the termination of this Lease as to the Affected
Premises as hereinabove provided, this Lease shall remain in full force and
effect as to the Remaining Premises; provided, that the Basic Rent for the
Remaining Premises to be paid after such termination shall be the Basic Rent
otherwise payable hereunder with respect to the Leased Premises multiplied by a
percentage equal to the sum of the percentages set forth on Exhibit "F" for the
Remaining Premises.

                                      -23-

<PAGE>

      19. Restoration.

            (a) So long as no Event of Default has occurred and is continuing
any Net Award up to the amount of Two Hundred Fifty Thousand Dollars $250,000
shall be paid by Landlord to Tenant and applied by Tenant to restoration of the
Leased Premises in accordance with this Lease. Landlord (or Lender if required
by any Mortgage) shall hold any Net Award in excess of Two Hundred Fifty
Thousand Dollars ($250,000) in a fund (the "Restoration Fund" and disburse
amounts from the Restoration Fund only in accordance with the following
conditions:

                  (i) prior to commencement of restoration, (A) the architects,
contracts, contractors, plans and specifications for the restoration shall have
been reasonably approved by Landlord, and (B) Landlord and Lender shall be
provided with mechanics' lien insurance (if available) and reasonably
acceptable performance and payment bonds which insure satisfactory completion of
and payment for the restoration, are in an amount and form and have a surety
acceptable to Landlord, and name Landlord and Lender as additional dual
obligees;

                  (ii) at the time of any disbursement, no Event of Default
shall exist and no mechanics' or materialmen's liens shall have been filed
against any of the Leased Premises and remain undischarged unless the same are
being contested pursuant to the terms of Paragraph 14 hereof;

                  (iii) disbursements shall be made from time to time in an
amount not exceeding the amount due on the work completed up until the time of
such disbursement together with any soft costs related thereto, upon receipt of
(A) satisfactory evidence, including architects' certificates, of the stage of
completion, the estimated total cost of completion and performance of the work
to date in a good and workmanlike manner in accordance with the contract, plans
and specifications, (B) waivers of liens, (C) contractors' and subcontractors'
sworn statements as to completed work and the cost thereof far which payment is
requested, (D) a satisfactory bringdown of title insurance and (E) other
evidence of cost and payment so that Landlord can verify that the amounts
disbursed from time to time are represented by work that is completed, in place
and free and clear of mechanics' and materialmen's lien claims and related soft
costs;

                  (iv) each request for disbursement shall be accompanied by a
certificate of Tenant, signed by a duly authorized officer of Tenant, describing
the work for which payment is requested, stating the cost incurred in connection
therewith, stating that Tenant has not previously received payment for such work
and, upon completion of the work, also stating that the work has been fully
completed and complies with the applicable requirements of this Lease;

                  (v) Landlord may retain ten percent (10%) of the Restoration
Fund, which shall be released on a contract-by-contract basis as the restoration
is completed;

                  (vi) if the Restoration Fund is held by Landlord, the
Restoration Fund shall not be commingled with Landlord's other funds and shall
be invested in an interest-bearing investment permitted pursuant to the Loan,
and the interest therefrom shall become part of the Restoration Fund; and

                  (vii) such other reasonable conditions as Landlord or Lender
may impose.

            (b) Prior to commencement of restoration and at any time during
restoration, if the estimated cost of completing the restoration work free and
clear of all liens, as

                                      -24-

<PAGE>

reasonably determined by Landlord, exceeds the amount of the Net Award available
for such restoration, the amount of such excess shall, upon demand by Landlord,
be paid by Tenant to Landlord to be added to the Restoration Fund. Any sum so
added by Tenant which remains in the Restoration Fund upon completion of
restoration shall be refunded to Tenant. For purposes of determining the source
of funds with respect to the disposition of funds remaining after the completion
of restoration, the Net Award shall be deemed to be disbursed prior to any
amount added by Tenant.

            (c) If any sum remains in the Restoration Fund after completion of
the restoration and any refund to Tenant pursuant to Paragraph 19(b), such sum
shall be retained by Landlord or, if required by a Note Or Mortgage, paid by
Landlord to a Lender.

      20. INTENTIONALLY OMITTED.

      21. Assignment and Subletting; Waiver of Landlord's Liens.

            (a)   (i) Tenant shall have the right, upon thirty (30) days prior
written notice to Landlord and Lender, with no consent of Landlord or Lender
being required or necessary ("Preapproved Assignment") to assign this Lease by
operation of law or otherwise to any Person ("Preapproved Assignee") that (A)
immediately following such assignment and having given effect thereto will have
a publicly traded unsecured senior debt rating of "Bal" or better from Moody's
or a rating of "BB+" or better from S&P (and in the event both of such rating
agencies cease to furnish such ratings, then a comparable rating by any rating
agency reasonably acceptable to Landlord and Lender) or (B) is and shall
continue to be for the balance of the Term to be a wholly-owned subsidiary of
any Tenant.

                    (ii) If Tenant desires to assign this Leas, whether by
operation of law or otherwise, to a Person ("Non-Preapproved Assignee") who
would not be a Preapproved Assignee ("Non-Preapproved Assignment") then Tenant
shall, not less than thirty (30) days prior to the date on which it desires to
make a Non-Preapproved Assignment submit to Landlord and Lender financial and
background information and other information reasonably required by Landlord and
Lender with respect to the Non-Preapproved Assignee (collectively, the "Review
Criteria"). Landlord and Lender shall review such information and shall approve
or disapprove the Non-Preapproved Assignee, which approval shall not be
unreasanably withheld or delayed, no later than the tenth (10th) Business Day
following receipt of all such information, and Landlord and Lender shall be
deemed to have acted reasonably in granting or withholding consent if such grant
or disapproval is based on their review of the Review Criteria applying prudent
business judgment, taking into account the value of the Leased Premises and the
creditworthiness of Tenant and the proposed assignee, in both cases on a
proforma basis after such assignment and having given effect thereto. In the
event that Landlord and/or Lender shall have not responded to Tenant's request
for approval within such ten (10) Business Day period, Tenant may deliver to
Landlord a second written request for approval and Landlord will be deemed to
have consented to such assignment if it does not notify Tenant that it is
withholding its consent within ten (10) Business Days after its receipt of the
second written request.

            (b) Tenant shall have the right, upon thirty (30) days prior written
notice to Landlord and Lender, and with no consent or approval of Landlord or
Lender being required or necessary, to enter into (i) one or more subleases for
all or any portion of any three, but not more than three (3) Related Premises,
or (ii) one or more subleases for all or any portion of one or more on the
Related Premises with any Affiliate (each, a "Preapproved Sublet") or (iii) a
sublease with any Business Unit Purchaser for the applicable Business Unit
Premises (any such sublease a "Business Unit Premises Subleased".
Notwithstanding anything to the contrary herein, (A) if Tenant exercises its
right to enter into any sublease pursuant clause (iii) above, then, the number
of subleases that Tenant shall be entitled to enter into or permit to exist
without

                                      -25-

<PAGE>

the approval of Landlord or Lender pursuant to clause (i) above shall be
automatically reduced to one or more subleases for all or any portion of any one
Related Premises, and (B) if Tenant exercises its right to enter into a sublease
of more than one Related Premises pursuant clause (i) above, then, Tenant shall
have no night to enter into or permit to exist any subleases pursuant to clause
(iii) above without the approval of Landlord or Lender: Other than pursuant to
Preapproved Sublets, at no time during the Term shall any Related Premises be
subject to subleases without the prior written consent of Landlord and, to the
extent required under any Mortgage or other documents with respect to any Loan,
Lender, which consent shall not be unresonably withheld or delayed, and which
shall be granted or withheld based on a review of the Review Criteria as they
relate to the proposed sublessee. Landlord and Lender shall be deemed to have
acted reasonably in granting or withholding consent if such grant or disapproval
is based on their review of the Review Criteria, applying prudent business
judgment, taking into account the value of the Leased Premises and the
creditworthiness of Tenant and the proposed sublessee.

            (c) If Tenant assigns all its rights and interest under this Lease,
the assignee under such assignment shall expressly assume all the obligations of
Tenant hereunder, actual or contingent, including obligation of Tenant which may
have arisen on or prior to the date of such assignment, by a written instrument
delivered to Landlord at the time of such assignment. Each sublease of any of
the Leased Premises shall be subject and subordinate to the provisions of this
Lease. No assignment or sublease shall affect or reduce any of the obligations
of Tenant hereunder, and all such obligations shall continue in full force and
effect as obligations of a principal and not as obligations of a guarantor, as
if no assignment or sublease had been made. No assignment or sublease shall
impose any additional obligations on Landlord under this Lease.

            (d) Notwithstanding any provision in this Paragraph 21 or elsewhere
in this Lease to the contrary, including any right or option Tenant may have to
assign this Lease or sublease all or any portion of the Leased Premises without
Landlord's consent, Tenant shall, upon the request of Landlord, provide and
cause such assignee or sublessee to provide, such information (including,
without limitation, any certification) as to any proposed assignee or sublessee
and its principals as may be required for Landlord and Tenant to comply with
regulations administered by the Office of Foreign Asset Control "OFAC") of the
Department of the Treasury, codified at 31 C.F.R. Part 500 (including those
named on OFAC's Specially Designated and Blocked Persons list) or under any
statute, executive order (including the September 24, 2001, Executive Order
Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten
to Commit, or Support Terrorism), or other governmental action regarding persons
or entities with whom U.S. persons or entities are restricted from doing
business.

            (e) With respect in any Preapproved Assignment or Preapproved
Sublet, Tenant shall provide to Landlord information reasonably required by
Landlord to establish that any proposed Preapproved Assignment or Preapproved
Sublet satisfies the criteria set forth above.

            (f) Tenant shall, within ten (10) Business Days after the execution
and delivery of any assignment or sublease, deliver a duplicate original copy
thereof to Landlord which, in the event of an assignment, shall be in recordable
form.

            (g) As security for performance of its obligations under this Lease,
Tenant hereby grants, conveys and assigns to Landlord all right, title and
interest of Tenant in and to all subleases now in existence or hereafter entered
into for any or all of the Leased Premises, any and all extensions,
modifications and renewals thereof and all rents, issues and profits therefrom.
Landlord hereby grants to Tenant a license to collect and enjoy all rents and
other sums of money payable under any sublease of any of the Leased Premises,
provided,

                                      -26-

<PAGE>

however, that Landlord shall have the absolute right at any time upon notice to
Tenant and any subtenants to revoke said license and to collect such rent and
sums of money and to retain the same. Tenant shall apply the same to amounts
then due to Landlord hereunder, with any balance paid to Tenant. Tenant shall
not accept any rents more than thirty (30) days in advance of the accrual
thereof.

            (h) Landlord hereby waives (i) any right to distrain trade fixtures,
inventory and other personal property of Tenant and (ii) any Landlord's lien or
similar lien upon Tenant's Equipment, inventory and any other personal property
of Tenant regardless of whether such lien is created by statute or otherwise. At
the request of Tenant, Landlord shall execute a waiver of any Landlord's or
similar lien for the benefit of any holder of a security interest in or lessor
of any of Tenant's Equipment, inventory or any other personal property of Tenant
and shall agree in writing to grant reasonable access to such holder for the
purpose of removing any such property, including without limitation, Tenant's
Equipment. Landlord agrees to acknowledge (in a written form reasonably
satisfactory to Landlord) to such persons and entities at such times and for
such purposes as Tenant may reasonably request that Tenant's Equipment owned by
Tenant and Tenant's property and not part of the Leased Premises (regardless of
whether or to what extent Tenant's Equipment and/or other personal property are
affixed to the Leased Premises) or otherwise subject to the terms of this
Lease.

            (i) Landlord may sell or transfer the Leased Premises at any time
without Tenant's consent to any third party (each a "Third Party Purchaser").
In the event of any such transfer, Tenant shall attorn to any Third Party
Purchaser as Landlord so long as such Third Party Purchaser and Landlord notify
Tenant in writing of such transfer and the Third Party Purchaser expressly
assumes Landlord's obligations under this Lease. At the request of Landlord,
Tenant will execute such documents confirming the agreement referred to above
and such other agreements as Landlord may reasonably request, provided that such
agreements do not increase the liabilities and obligations of Tenant hereunder.

      22. Events of Default.

            (a) The occurrence of any one or more of the following (after
expiration of any applicable cure period as provided in Paragraph 22(b)) shall,
at the sole option of Landlord, constitute an "Event of Default" under this
Lease:

                  (i) a failure by Tenant to make any payment of any Monetary
Obligation, regardless of the reason for such failure;

                  (ii) a failure by Tenant duly to perform and observe, or a
violation or breach of, any other provision hereof not otherwise specifically
mentioned in this Paragraph 22(a);

                  (iii) any representation or warranty made by Tenant herein or
in any certificate, demand or request made pursuant hereto proves to be
incorrect, now or hereafter, in any material respect;

                  (iv) a default beyond any applicable cure period or at
maturity by Tenant in any payment of principal or interest on any obligations
for borrowed money having an original principal balance of $5,000,000 or more in
the aggregate, or in the performance of any other provision contained in any
instrument under which any such obligation is created or secured (including the
breach or any covenant thereunder), (x) if such payment is a payment at maturity
or a final payment unless the lender shall have extended such maturity date in
writing, or (y) if an effect of such default is to cause such obligation to be
accelerated prior to its stated maturity;

                                      -27-
<PAGE>

                  (v) (A) a final, non-appealable, uninsured judgment or
judgments for the payment of money in excess of $30,000,000 in the aggregate
shall be rendered against any Tenant or Guarantor and the same shall remain
undischarged for a period of sixty (60) consecutive days; or

                      (B) any Tenant shall default beyond any applicable cure
period in the payment of rent under, or in the performance of any other material
provision of, any other lease or leases that have, in the aggregate, rental
obligations over the terms thereof of $3,000,000 or more.

                  (vi) any Tenant shall (A) voluntarily be adjudicated a
bankrupt or insolvent, (B) seek or consent to the appointment of a receiver or
trustee for itself or for the Leased Premises, (C) file a petition seeking
relief under the bankruptcy or other similar laws of the United States, any
state or any jurisdiction, (D) make a general assignment for the benefit of its
creditors, or (E) be unable to pay its debts as they mature;

                  (vii) a court shall enter an order, judgment or decree
appointing, without the consent of Tenant, a receiver or trustee for it or for
any of the Leased Premises or approving a petition filed against any Tenant
which seeks relief under the bankruptcy or other similar laws of the United
States, any state or any jurisdiction, and such order, judgment or decree shall
remain undischarged or unstayed ninety (90) days after it is entered;

                  (viii) any Related Premises shall have been vacated in its
entirety or shall have been abandoned, provided that up to two (2) Related
Premises may be vacated for up to three hundred sixty-five (365) consecutive
days;

                  (ix) (A) any Tenant shall be liquidated or dissolved or (B)
any Tenant shall begin proceedings towards its liquidation or dissolution;

                  (x) the estate or interest of any Tenant in any of the Leased
Premises shall be levied upon or attached in any proceeding and such estate or
interest is about to be sold or transferred or such process shall not be vacated
or discharged within ninety (90) days after it is made;

                  (xi) a failure by any Tenant to perform or observe, or a
violation or breach of, or a misrepresentation by any Tenant under, any
provision of any Assignment to which such Tenant is a party or any other
document between such Tenant and Lender, if such failure, violation, breach or
misrepresentation gives rise to a default beyond any applicable cure period with
respect to any Loan; provided that Landlord has promptly given Tenant a copy of
any notice Landlord shall have received regarding such default;

                  (xii) any Tenant shall sell or transfer or enter into an
agreement to sell or transfer all or more than 75% of the fair market value of
its assets unless such Tenant's leasehold interest in this Lease is sold or
transferred as part of such transaction and the buyer or transferee assumes all
of the obligations of such Tenant under the terms of Paragraph 21(c) of the
Lease;

                  (xiii) an Event of Default (as defined in the Guaranty) beyond
any applicable cure period shall occur under the Guaranty;

                  (xiv) any Tenant shall fail to comply with (A) the provisions
of Paragraph 25 or (B) the provisions of Paragraph 32 of this Lease; or

                                      -28-
<PAGE>
          (xv)  Tenant's failure to timely comply with any of Tenant's Post
Closing Obligations and such failure continues for ten (10) Business Days after
written notice from Landlord;

       (b) No notice or cure period shall be required in any one or more of the
following events: the occurrence of an Event of Default under clause (iv), (v),
(vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii) or (xv) of Paragraph 22(a).
If the default consists of the failure to pay Basic Rent, the applicable cure
period shall be five (5) Business Days from the date on which notice of such
default is given, provided, that Landlord shall not be obligated to give notice
of any such default more than one time during any Lease Year, provided, further
that even where Landlord is not required to give notice of any such default by
operation of the immediately preceding proviso, Tenant nevertheless shall be
entitled to a grace period of five (5) Business Days. If the default consists of
the failure to pay any other Monetary Obligation or a default under clause (xiv)
of Paragraph 22(a) the applicable cure period shall be five (5) Business Days
after notice from Landlord. If the default consists of a default under clause
(ii) or clause (iii) of Paragraph 22(a)(and provided that any default under
Paragraph 22(a)(iii) is reasonably susceptible of cure), the applicable cure
period shall be thirty (30) days from the date on which notice is given or, if
the default cannot be cured within such thirty (30) day period and delay in the
exercise of a remedy would not (in Landlord's reasonable judgment) cause any
material adverse harm to Landlord or any of the Leased Premises, the cure period
shall be extended for the period required to cure the default (but such cure
period, including any extension, shall not in the aggregate exceed ninety (90)
days), provided that Tenant shall commence to cure the default within the said
thirty-day period and shall actively, diligently and in good faith proceed with
and continue the curing of the default until it shall be fully cured.

     23.  Remedies and Damages Upon Default.
          ---------------------------------

       (a)  If an Event of Default shall have occurred and is continuing,
Landlord shall have the right, at its sole option and to the extent permitted by
applicable Law, to exercise its remedies and to collect damages from Tenant in
accordance with this Paragraph 23, subject in all events to applicable Law,
without demand upon or notice to Tenant except as otherwise provided in
Paragraph 22(b) and this Paragraph 23.

          (i)  Landlord may give Tenant notice of Landlord's intention to
terminate this Lease on a date specified in such notice. Upon such date, this
Lease, the estate hereby granted and all rights of Tenant hereunder shall expire
and terminate. Upon such termination, Tenant shall immediately surrender and
deliver possession of the Leased Premises to Landlord in accordance with
Paragraph 26. If Tenant does not so surrender and deliver possession of the
Leased Premises, Landlord may re-enter and repossess the Leased Premises, by
means of legal process, summary proceedings, ejectment or any other lawful means
or procedure. Upon or at any time after taking possession of the Leased
Premises, Landlord may, by peaceable means or legal process, remove any Persons
or property therefrom. Landlord shall be under no liability for or by reason of
any such entry, repossession or removal. Notwithstanding such entry or
repossession, Landlord may (A) exercise the remedy set forth in and collect the
damages permitted by Paragraph 23(a)(iii) or (B) collect the damages set forth
in Paragraph 23(b)(i) or 23(b)(ii).

          (ii)  After repossession of the Leased Premises pursuant to clause (i)
above, Landlord shall have the right to relet any of the Leased Premises to such
tenant or tenants, for such term or terms, for such rent, on such conditions and
for such uses as Landlord in its sole discretion may determine, and collect and
receive any rents payable by reason of such reletting. Landlord may make such
Alterations in connection with such reletting as it may deem advisable in its
sole discretion. Notwithstanding any such reletting, Landlord may collect the
damages set forth in Paragraph 23(b)(ii).

                                      -29-

<PAGE>

                  (iii) Landlord may declare by notice to Tenant the entire
Basic Rent (in the amount of Basic Rent then in effect) for the remainder of the
then current Term to be immediately due and payable. Tenant shall immediately
pay to Landlord all such Basic Rent discounted to its Present Value, all accrued
Rent then due and unpaid, all other Monetary Obligations which are then due and
unpaid and all Monetary Obligations which arise or become due by reason of such
Event of Default (including any Costs of Landlord). Upon receipt by Landlord of
all such accelerated Basic Rent and Monetary Obligations, this Lease shall
remain in full force and effect and Tenant shall have the right to possession of
the Leased Premises from the date of such receipt by Landlord to the end of the
Term, and subject to all the provisions of this Lease, including the obligation
to pay all increases in Basic Rent and all Monetary Obligations that
subsequently become due, except that (A) no Basic Rent which has been prepaid
hereunder shall be due thereafter during the said Term, and (B) Tenant shall
have no option to extend or renew the Term.

            (b) The following constitute damages to which Landlord shall be
entitled if Landlord exercises its remedies under Paragraph 23(a)(i) or
23(a)(ii):

                  (i) If Landlord exercises its remedy under Paragraph 23(a)(i)
but not its remedy under Paragraph 23(a)(ii) (or attempts to exercise such
remedy and is unsuccessful in reletting the Leased Premises) then, upon written
demand from Landlord, Tenant shall pay to Landlord, as liquidated and agreed
final damages for Tenant's default and in lieu of all current damages beyond the
date of such demand (it being agreed that it would be impracticable or extremely
difficult to fix the actual damages), an amount equal to the Present Value of
the excess, if any, of (A) all Basic Rent from the date of such demand to the
date on which the Term is scheduled to expire hereunder in the absence of any
earlier termination, re-entry or repossession over (B) the then fair market
rental value of the Leased Premises for the same period. Tenant shall also pay
to Landlord all of Landlord's Costs in connection with the repossession of the
Leased Premises and any attempted reletting thereof, including all brokerage
commissions, legal expenses attorneys' fees, employees' expenses, costs of
Alterations and expenses and preparation for reletting.

                  (ii) If Landlord exercises to remedy under Paragraph 23(a)(i)
or its remedies under Paragraph 23(a)(i) and 23(a)(ii), then Tenant shall, until
the end of what would have been the Term in the absence of the termination of
the Lease, and whether or not any of the Leased Premises shall have been relet,
be liable to Landlord for, and shall pay to Landlord, as liquidated and agreed
current damages all Monetary Obligations which would be payable under this Lease
by Tenant in the absence of such termination less the net proceeds, if any, of
any reletting pursuant to Paragraph 23(a)(ii), after deducting from such
proceeds all of Landlord's Costs (including the items listed in the last
sentence of Paragraph 23(b)(i) hereof) incurred in connection with such
repossessing and reletting; provided, that if Landlord has not relet the Leased
Premises, such Costs of Landlord shall be considered to be Monetary Obligations
payable by Tenant. Tenant shall be and remain liable for all sums aforesaid, and
Landlord may recover such damages from Tenant and institute and maintain
successive actions or legal proceedings against Tenant for the recovery of such
damages. Nothing herein contained shall be deemed to require Landlord to wait to
begin such action or other legal proceedings until the date when the Term would
have expired by its own terms had there been no such Event of Default.

            (c) Notwithstanding anything to the contrary herein contained, in
lieu of or in addition to any of the foregoing remedies and damages, Landlord
may exercise any remedies and collect any damages available to it at law or in
equity; provided, however, if a Limited Remedy Default exists, the aggregate
maximum amount Tenant shall be required to pay to Landlord as a result of such
Limited Remedy Default from and after the date of the occurrence of such Limited
Remedy Default (the "Occurrence Date") shall be limited to the sum of (i) the

                                      -30-
<PAGE>

present value as of the Occurrence Date, discounted at the annual rate of ten
and one-half percent (10.5%) (taking into account that Basic Rent payments are
required to be made quarterly), of all Basic Rent reserved hereunder for the
unexpired portion of the Term after the Occurrence Date as if this Lease had not
expired or been terminated, (ii) any amounts of Additional Rent which are due
and payable or have accrued under this Lease through the Occurrence Date, and
(iii) any amounts of Additional Rent which are due and payable or have accrued
under this Lease after the Occurrence Date while the Tenant remains in
possession of the Leased Premises or any Related Premises after any Limited
Remedy Default that relates to Impositions, insurance, utilities, repairs,
maintenance, environmental maintenance, remediation and compliance and other
routine and customary costs and expenses of operating and maintaining the Leased
Premises or the Related Premises which remain occupied by Tenant. Nothing
contained in this Paragraph 23(c) shall limit any amounts payable by Tenant with
respect to Basic Rent or Additional Rent or indemnification obligation if any
Event of Default that is not a Limited Remedy Default has occurred.

            (d) In any action of ejectment and/or for Rent, Landlord shall first
cause to be filed in such action an affidavit made by it or someone acting for
it, setting forth the facts necessary to authorize the entry of judgment, and,
if a true copy of this Lease (and of the truth of the copy such affidavit shall
be sufficient evidence) be filed in such action, it shall not be necessary to
file the original as a warrant of attorney, any rule of court, custom or
practice to the contrary notwithstanding. Tenant hereby releases to Landlord and
to any and all attorneys who may appear for Tenant all errors in said
proceedings and all liability thereof. If proceedings shall be commenced by
Landlord to recover possession under the Acts of Assembly and Rules of Civil
Procedure, either at the end of the term or upon the earlier termination of this
Lease, or for non-payment of Rent or any other reason, Tenant specifically
waives the right to the three (3) months' notice and to the fifteen (15) or
thirty (30) days' notice required by the Landlord and Tenant Act of 1951, as the
same may be amended, and agrees that five (5) days' notice shall be sufficient
in either or any such case.

            (e) Notwithstanding anything to the contrary herein contained, in
lieu of or in addition to any of the foregoing remedies and damages, Landlord
may exercise any remedies and collect any damages available to it at law or in
equity. If Landlord is unable to obtain full satisfaction pursuant to the
exercise of any remedy, it may pursue any other remedy which it has hereunder or
at law or in equity.

            (f) Except for retaining a third-party broker to relet the Leased
Premises upon commercially reasonable terms, if this Lease is terminated and
Tenant vacates the Leased Premises pursuant to Paragraph 23(a)(i),Landlord shall
not be required to mitigate any of its damages hereunder unless required to by
applicable Law. If any Law shall validly limit the amount of any damages
provided for herein to an amount which is less than the amount agreed to herein,
Landlord shall be entitled to the maximum amount available under such Law.

            (g) No termination of this Lease, repossession or reletting of the
Leased Premises, exercise of any remedy or collection of any damages pursuant to
this Paragraph 23 shall relieve Tenant of any Surviving Obligations.

            (h) WITH RESPECT TO ANY REMEDY OR PROCEEDING OF LANDLORD OR TENANT
HEREUNDER, LANDLORD AND TENANT HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY.

            (i) Upon the occurrence and during the continuance of any Event of
Default, Landlord shall have the right (but no obligation) to perform any act
required of Tenant hereunder and, if performance of such act requires that
Landlord enter the Leased Premises.

                                      -31-
<PAGE>

Landlord may enter the Leased Premises at reasonable times and upon reasonable
notice for such purpose.

            (j) No failure of Landlord (i) to insist at any time upon the strict
performance of any provision of this Lease or (ii) to exercise any option,
right, power or remedy contained in this Lease shall be construed as a waiver,
modification or relinquishment thereof. A receipt by Landlord of any sum in
satisfaction of any Monetary Obligation with knowledge of the breach of any
provision hereof shall not be deemed a waiver of such breach, and no waiver by
Landlord of any provision hereof shall be deemed to have been made unless
expressed in a writing signed by Landlord.

            (k) Tenant hereby waives and surrenders, for itself and all those
claiming under it, including creditors of all kinds, (i) any right and privilege
which it or any of them may have under any present or future Law to redeem any
of the Leased Premises or to have a continuance of this Lease after termination
of this Lease or of Tenant's right of occupancy or possession pursuant to any
court order or any provision hereof, and (ii) the benefits of any present or
future Law which exempts property from liability for debt or for distress for
rent.

            (l) Except as otherwise provided herein, all remedies are cumulative
and concurrent and no remedy is exclusive of any other remedy. Each remedy may
be exercised at any time an Event of Default has occurred and is continuing and
may be exercised from time to time. No remedy shall be exhausted by any exercise
thereof.

      24. Notices. All notices, demands, requests, consents, approvals, offers,
statements and other instruments or communications required or permitted to be
given pursuant to the provisions of this Lease shall be in writing and shall be
deemed to have been given and received for all purposes when delivered in person
or by Federal Express or other reliable 24-hour delivery service or five (5)
Business Days after being deposited in the United States mail, by registered or
certified mail, return receipt requested, postage prepaid, addressed to the
other party at its address stated above or when delivery is refused. A copy of
any notice given by Tenant to Landlord shall simultaneously be given by Tenant
to Reed Smith LLP, 2500 One Liberty Place, Philadelphia, PA 19103, Attention:
Chairman, Real Estate Department. A copy of any notice given by Landlord to
Tenant shall simultaneously be given by Landlord to Paul, Weiss, Rifkind Wharton
& Garrison LLP, 1285 Avenue of the Americas, New York, New York 10019-6064,
Attention: Carl L. Reisner. For the purposes of this Paragraph, any party may
substitute another address stated above (or substituted by a previous notice)
for its address by giving fifteen (15) Business Days' notice of the new address
to the other party, in the manner provided above.

      25. Estoppel Certificate. At any time upon not less than fifteen (15)
days' prior written request by either Landlord or Tenant (the "Requesting
Party") to the other party (the "Responding Party"), the Responding Party shall
deliver to the Requesting Party a statement in writing, executed by an
authorized officer of the Responding Party, certifying (a) that, except as
otherwise specified, this Lease is unmodified and in full force and effect,
except (b) the dates to which Basic Rent, Additional Rent and all other Monetary
Obligations have been paid, (c) that, to the knowledge of the signer of such
certificate and except as otherwise specified, no default by either Landlord or
Tenant exists hereunder, (d) such other matters as the Requesting Party may
reasonably request, including the matters set forth in "Exhibit G-2" and (e) if
Tenant is the Responding Party that, except as otherwise specified, there are no
proceedings pending or, to the knowledge of the signer, threatened, against
Tenant before or by any court or administrative agency which, if adversely
decided, would materially and adversely affect the financial condition and
operations of Tenant. Any such statements by the Responding Party may be relied
upon by the Requesting Party, any Person whom the Requesting Party notifies the
Responding Party in its request for the Certificate is an intended recipient or
beneficiary of the Certificate, any Lender,

                                      -32-
<PAGE>

any Permitted Leasehold Mortgagee or their assignees and by any prospective
purchaser or mortgagee of any interest in the Leased Premises. Any certificate
required under this Paragraph 75 and delivered by Tenant shall state that, in
the opinion of each person signing the same, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to
the subject matter of such certificate, and shall briefly state the nature of
such examination or investigation.

            26. Surrender. Except if Tenant purchases the Leased Premises, or,
pursuant to Paragraph 18 or 38, any Related Premises, upon the expiration or
earlier termination of this Lease, Tenant shall peaceably leave and surrender
the Leased Premises to Landlord in the same condition in which the Leased
Premises were at the commencement of this Lease, except as repaired, rebuilt,
restored, altered, replaced or added to as permitted or required by any
provision of this Lease, and except for ordinary wear and tear. Upon such
surrender, Tenant shall (a) remove from the Leased Premises all property which
is owned by Tenant or third parties other than Landlord and (b) repair any
damage to the structural elements of the Improvements or the building systems
caused by such removal. Property not so removed shall become the property of
Landlord, and Landlord may thereafter cause such property to be removed from the
Leased Premises. The cost of removing and disposing of such property and
repairing any damage to any of the Leased Premises caused by such removal shall
be paid by Tenant to Landlord upon demand. Landlord shall not in any manner or
to any extent be obligated to reimburse Tenant for any such property which
becomes the property of Landlord pursuant to this Paragraph 26.

            27. No Merger of Title. There shall be no merger of the leasehold
estate created by this Lease with the fee estate in any of the Leased Premises
by reason of the fact that the same Person may acquire or hold or own, directly
or indirectly, (a) the leasehold estate created hereby or any part thereof or
interest therein and (b) the fee estate in any of the Leased Premises or any
part thereof or interest therein, unless and until Landlord, Tenant, Lender and
any Permitted Leasehold Mortgagee shall join in a written instrument effecting
such merger and shall duly record the same.

            28. Books and Records.

                  (a) Each Tenant shall keep adequate records and books of
account with respect to the finances and business of such Tenant generally and
with respect to the Leased Premises, in accordance with generally accepted
accounting principles ("GAAP") consistently applied, and shall permit Landlord
and Lender by their respective agents, accountants and attorneys, upon
reasonable notice to Tenant, to visit and inspect the Leased Premises and
examine (and make copies of) the records and books of account and to discuss the
finances and business with the officers of Tenant, at such reasonable times as
may be requested by Landlord. Upon the request of Lender or Landlord (either
telephonically or in writing). Tenant shall provide the requesting party with
copies of any information to which such party would be entitled in the course of
a personal visit.

                  (b) If all any time during the Term, a Tenant shall not be
part of the Guarantor's group for the purpose of reporting financial positions
and results on a consolidated basis, such Tenant shall deliver to Landlord and
to Lender within ninety (90) days of the close of each fiscal year, annual
audited financial statements of Tenant prepared by a nationally recognized firm
of independent certified public accountants. Such Tenant shall also furnish to
Landlord within forty-five (45) days after the end of each of the three
remaining quarters unaudited financial statements and all other quarterly
reports of Tenant, certified by Tenant's chief financial officer, and all
filings if any, of Form 10-K, Form 10-Q and other required filings with the
Securities and Exchange Commission pursuant to the provisions of the Securities
Exchange Act of 1934, as amended, or any other Law. All financial statements
shall be prepared

                                      -33-
<PAGE>

in accordance with GAAP consistently applied. All annual financial statements
shall be accompanied (i) by an opinion of said accountants stating that there
are no qualifications as to the scope of the audit and the audit was performed
in accordance with GAAP. All financial statements shall be accompanied by the
affidavit of the president or a vice president of each Tenant, dated within five
(5) Business Days of the delivery of such statement, stating that (C) the
affiant knows of no Event of Default, or event which, upon notice or the passage
of time or both, would become an Event of Default which has occurred and is
continuing hereunder or, if any such event has occurred and is continuing,
specifying the nature and period of existence thereof and what action Tenant has
taken or proposes to take with respect thereto and (D) except as otherwise
specified in such affidavit, that Tenant has fulfilled all of its obligations
under this Lease which are required to be fulfilled on or prior to the date of
such affidavit.

      29.   Determination of Value.

            (a)   Whenever a determination of Fair Market Rental Value is
required pursuant to any provision of this Lease, such Fair Market Rental Value
shall be determined in accordance with the following procedure:

                  (i) Landlord and Tenant shall endeavor to agree on Fair Market
Rental Value on the date (the "Applicable Initial Date") which is six (6)
calendar months prior to the expiration of the then current Term unless Tenant
has previously exercised its option pursuant to Paragraph 5(b) not to have the
Term automatically extended. Upon reaching such agreement, the parties shall
execute an agreement setting forth the amount of such Fair Market Rental Value.

                  (ii) If the parties shall not have signed such agreement
within thirty (30) days after the Applicable Initial Date, Tenant shall within
fifty (50) days after the Applicable Initial Date select an appraiser and notify
Landlord in writing of the name, address and qualifications of such appraiser.
Within twenty (20) days following Landlord's receipt of such notice, Landlord
shall select an appraiser and notify Tenant of the name, address and
qualifications of such appraiser. If Landlord shall fail to select an appraiser
and notify Tenant as aforesaid within said twenty-day period, then provided that
such failure shall continue for five (5) additional Business Days after notice
thereof from Tenant to Landlord, the determination of Tenant's appraiser shall
govern. Otherwise, such two appraisers shall endeavor to agree upon Fair Market
Rental Value based on a written appraisal made by each of them (and given to
both parties) as of the Relevant Date. If such two appraisers shall agree upon a
Fair Market Rental Value, the amount of such Fair Market Rental Value as so
agreed shall be binding and conclusive upon Landlord and Tenant.

                  (iii) If such two appraisers shall be unable to agree upon
Fair Market Rental Value within twenty (20) days after the selection of an
appraiser by Landlord, then such appraisers shall advise Landlord and Tenant of
their respective determinations of Fair Market Rental Value and shall select a
third appraiser to make the determination of Fair Market Rental Value. The
selection of the third appraiser shall be binding and conclusive upon Landlord
and Tenant.

                  (iv) If such two appraisers shall be unable to agree upon
the designation of a third appraiser within ten (10) Business Days after the
expiration of the twenty (20) day period referred to in clause (iii) above, or
if such third appraiser does not make a determination of Fair Market Rental
Value within twenty (20) days after his selection, then such third appraiser or
a substituted third appraiser, as applicable, shall, at the request of either
party hereto, be appointed by the President or Chairman of the American
Arbitration Association in New York, New York. The determination of Fair Market
Rental Value made by the third

                                      -34-
<PAGE>

appraiser appointed pursuant hereto shall be made within twenty (20) days after
such appointment.

                  (v) If a third appraiser is selected, Fair Market Rental Value
shall be the average of the determination of Fair Market Rental Value made by
the third appraiser and the determination of Fair Market Rental Value made by
the appraiser (selected pursuant to Paragraph 29(a)(ii) hereof) whose
determination of Fair Market Rental Value is nearer to that of the third
appraiser. Such average shall be binding and conclusive upon Landlord and
Tenant.

                  (vi) All appraisers selected or appointed pursuant to this
Paragraph 29(a) shall (A) be independent qualified MAI appraisers (B) have no
right, power or authority to alter or modify the provisions of this Lease, (C)
utilize the definition of Fair Market Rental Value set forth herein, and (D) be
registered in the state where the Leased Premises or applicable Related Premises
are located if the state requires such registration. The Cost of the procedure
described in this Paragraph 29(a) (i) clauses (A) through (C) above shall be
shared equally between Landlord and Tenant and the cost of the procedure
described in this Paragraph 29(a)(i)(D) shall be paid by Tenant.

            (b)   If, by virtue of any delay, Fair Market Rental Value is not
determined by the expiration or termination of the then current Term, then until
Fair Market Rental Value is determined, Tenant shall continue to pay Basic Rent
during the succeeding Renewal Term in the same amount which it was obligated
under this Lease to pay prior to the commencement of the Renewal Term. When Fair
Market Rental Value is determined, the appropriate Basic Rent shall be
calculated retroactive to the commencement of the Renewal Term and Tenant shall
either receive a refund from Landlord (in the case of an overpayment) or shall
pay any deficiency to Landlord (in the case of an underpayment).

            (c)   In determining Fair Market Rental Value, the appraisers shall
determine with respect to each Related Premises the amount that a willing tenant
would pay, and a willing landlord of a comparable building located in a radius
of fifty (50) miles of each Related Premises would accept, at arm's length, to
rent a building of comparable size and quality as the Improvements, taking into
account: (i) the age, quality and condition (as required by the Lease) of the
Improvements and that the Improvements are being leased on an "as-is" basis
without any improvement allowance or free rent; (ii) that the Related Premises
will be leased as a whole or substantially as a whole to a single user for the
uses permitted under this Lease, (iii) a lease term of ten (10) years, with
annual CPI-based increases; (iv) an absolute triple net lease; and (v) such
other items that professional real estate appraisers customarily consider.

      30.   Non-Recourse as to Landlord. ANYTHING CONTAINED HEREIN TO THE
CONTRARY NOTWITHSTANDING, ANY CLAIM BASED ON OR IN RESPECT OF ANY LIABILITY OF
LANDLORD UNDER THIS LEASE SHALL BE ENFORCED ONLY AGAINST THE LEASED PREMISES AND
NOT AGAINST ANY OTHER ASSETS, PROPERTIES OR FUNDS OF (I) LANDLORD, (II) ANY
DIRECTOR, OFFICER, MEMBER, GENERAL PARTNER, SHAREHOLDER, LIMITED PARTNER,
BENEFICIARY, EMPLOYEE OR AGENT OF LANDLORD OR ANY GENERAL PARTNER OF LANDLORD
OR ANY OF ITS MEMBERS OR GENERAL PARTNERS (OR ANY LEGAL REPRESENTATIVE, HEIR,
ESTATE, SUCCESSOR OR ASSIGN OF ANY THEREOF), (III) ANY PREDECESSOR OR SUCCESSOR
PARTNERSHIP OR CORPORATION (OR OTHER ENTITY) OF LANDLORD OR ANY OF ITS GENERAL
PARTNERS, SHAREHOLDERS, OFFICERS, DIRECTORS, MEMBERS, EMPLOYEES OR AGENTS,
EITHER DIRECTLY OR THROUGH LANDLORD OR ITS GENERAL PARTNERS, SHAREHOLDERS,
OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS OR ANY PREDECESSOR OR SUCCESSOR
PARTNERSHIP OR CORPORATION (OR OTHER

                                      -35-
<PAGE>
ENTITY), OR (IV) ANY PERSON AFFILIATED WITH ANY OF THE FOREGOING, OR ANY
DIRECTOR, OFFICER, EMPLOYEE OR AGENT OF ANY THEREOF.

      31.   Landlord's Financing.

            (a) Tenant agrees to pay directly to Lender, if required by a
Lender, any cost, charge or expense for which Tenant has agreed to reimburse or
indemnify Landlord hereunder.

            (b) IF Landlord desires to obtain or refinance any Loan, Tenant
shall negotiate in good faith with Landlord concerning any request made by any
Lender or proposed Lender for changes or modifications in this Lease; provided,
that Landlord shall reimburse Tenant for its out-of-pocket costs relating
thereto and provided further that no such change or modification shall increase
Tenants' obligations or decrease Tenant's rights under the Lease in any material
respect. In particular, Tenant shall agree, upon request of Landlord, to supply
any such Lender with such notices and information as Tenant is required to give
to Landlord hereunder and to extend the rights of Landlord hereunder to any such
Lender and to consent to such financing if such consent is requested by such
Lender. Tenant shall provide any other consent or statement and shall execute
any and all other documents that such Lender reasonably requires in connection
with such financing, including any environmental indemnity agreement, so long as
the same do not adversely affect any right, benefit or privilege of Tenant under
this Lease or increase Tenant's obligations under this Lease in any material
respect.

      32.   Subordination, Non-Disturbance and Attornment. This Lease and
Tenant's interest hereunder shall be subordinate to any Mortgage or other
security instrument hereafter placed upon the Leased Premises by Landlord
provided that the Lender shall have delivered to Tenant an agreement (an "SNDA
Agreement") in a form substantially identical to Exhibit "G-1" annexed hereto
and acknowledged by Lender and such Landlord. Tenant covenants and agrees that
Tenant shall enter into such SNDA Agreement within five (5) Business days
following Landlord's written request and with such modifications as the Lender
shall reasonably request; provided that Paragraph 1 (Subordination) of
Exhibit"G-1" shall not be subject to any modifications, and, provided further
that, if Lender requests substantive modifications to the SNDA Agreement, Tenant
shall have such additional time to negotiate such modifications as is reasonably
required based on the nature and scope of the requested modifications.

      33.   Tax Treatment: Reporting. Landlord and Tenant each acknowledge that
each shall treat this transaction as a true lease for state law purposes and
shall report this transaction as a Lease for Federal income tax purposes. For
Federal income tax purposes each shall report this Lease as a true lease with
Landlord as the owner of the Leased Premises and Equipment and Tenant as the
lessee of such Leased Premises and Equipment including: (1) treating Landlord
as the owner of the property eligible to claim depreciation deductions under
Section 167 or 168 of the Internal Revenue Code of 1986 (the "Code") with
respect to the Leased Premises and Equipment but only as the same exist on the
date hereof or are hereafter paid for by Landlord, (2) treating Tenant as the
owner of the property eligible to claim depreciation deductions by Tenant with
respect to the Equipment and Alterations paid for by Tenant and incorporated
into the Leased Premises after the date hereof, (3) Tenant reporting its Rent
payments as rent expense under Section 162 of the Code, and (4) Landlord
reporting the Rent payments as rental income.

      34.   Permitted Leasehold Mortgage. Tenant shall not encumber its
Leasehold estate in the Leased Premises, by means of a leasehold mortgage, deed
of trust, pledge or similar security device, except by means of a Permitted
Leasehold Mortgage. The Leased Premises shall not be encumbered by more than one
Permitted Leasehold Mortgage at any one time. Tenant

                                      -36-
<PAGE>

shall deliver to Landlord an executed counterpart of any Permitted Leasehold
Mortgage within ten (10) days after its execution thereof.

      35.   Rights of Permitted Leasehold Mortgagee. Landlord hereby agrees
that, so long as any Permitted Leasehold Mortgage shall remain unsatisfied of
record, the following provisions shall apply:

            (a)   Landlord, upon giving Tenant any notice of a default or an
Event of Default hereunder, shall also give such notice to any Permitted
Leasehold Mortgagee from whom it had received an address in writing.

            (b)   Upon the occurrence of an Event of Default hereunder, the
Permitted Leasehold Mortgagee shall, within the period provided for in Paragraph
22 hereof, as extended as hereinafter provided, have the right to remedy such
default, or cause the same to be remedied, and Landlord shall accept such
performance by or at the instance of the Permitted Leasehold Mortgagee as if the
same had been made by Tenant.

            (c)   Upon the occurrence of an Event of Default hereunder, Landlord
shall not terminate this Lease without first giving the Permitted Leasehold
Mortgagee ninety (90) days after notice thereof within which either (i) to
obtain possession of the Leased Premises (including possession by a receiver) or
(ii) to institute foreclosure proceedings or (iii) otherwise act to acquire
Tenant's interest under this Lease with diligence. The preceding sentence shall
not apply and Landlord may terminate this Lease if:

            (d)   (A) an Event of Default shall have occurred that is then
susceptible of being cured by the Permitted Leasehold Mortgagee without
obtaining possession of the Leased Premises and the Permitted Leasehold
Mortgagee (1) shall not have cured any Event of Default consisting of a failure
to pay Basic Rent or Additional Rent within five (5) Business Days after notice
from Landlord of such Event of Default, or (2) shall not, within the applicable
cure period specified in Paragraph 22(b) after notice from Landlord of such
Event of Default, have cured any Event of Default (other than a failure to pay
Basic Rent or Additional Rent);

                  (B) an Event of Default (other than any Event of Default
described in subparagraph (A)(i) above) shall have occurred and either (1) the
Permitted Leasehold Mortgagee, within fifteen (15) days after the giving by
Landlord of notice of such Event of Default, shall not have given written notice
to Landlord that such Event of Default cannot be remedied without obtaining
possession of the Leased Premises; or (2) the Permitted Leasehold Mortgagee
shall not have paid or caused to be paid all Rent and other sums payable under
this Lease; or (3) the Permitted Leasehold Mortgagee shall, within fifteen (15)
days after notice from Landlord of such Event of Default, fail to give Landlord
a written notice that it shall, after obtaining possession, and within the
applicable cure period provided in Paragraph 22(b), cure any such Event of
Default which is susceptible of cure only upon taking possession; (D) the
Permitted Leasehold Mortgagee shall fail to pursue with diligence the activities
specified in (i), (ii) or (iii) of the first sentence of this Paragraph 35(c);
or (5) the Permitted Leasehold Mortgagee within thirty (30) days after the
giving by Landlord of notice of such Event or Default shall not have given
written notice to Landlord that such Event of Default is not reasonably
susceptible of being cured by the Permitted Leasehold Mortgagee.

            (e)   It is expressly understood, without limiting the generality of
the foregoing language, that any failure of Tenant to perform any of its
obligations under Paragraph 18, Paragraph 23(b)(iii)or Paragraph 29 is
susceptible of cure by the Permitted Leasehold Mortgagee without taking
possession, and Tenant hereby authorizes the Permitted

                                      -37-
<PAGE>

Leasehold Mortgagee, on behalf of Tenant, to send any notice, make any offer,
pay any amount, select an appraiser, and perform any other obligation of Tenant
provided in said Paragraphs.

            (f)   In addition to curing any Event of Default which is
susceptible of being cured without taking possession, the Permitted Leasehold
Mortgagee shall, during the period it is taking the action in clauses (i), (ii)
or (iii) of the first sentence of Paragraph 35(c) above, pay Basic Rent and
Additional Rent as the same shall become due and payable and, upon obtaining
possession or acquiring Tenant's interest under this Lease, shall be required to
commence to cure within thirty (30) days of such acquisition or possession all
Events of Default then outstanding and reasonably susceptible of being cured by
the Permitted Leasehold Mortgage, and thereafter diligently prosecute such cure
to completion; provided, that: (i) the Permitted Leasehold Mortgagee shall not
be obligated to continue such possession or to continue such foreclosure
proceedings after such Events of Default shall have been cured, and (ii) the
Permitted Leasehold Mortgagee shall agree with Landlord in writing to comply
during the period of such forbearance with such of the terms, conditions and
covenants of this Lease as are reasonably susceptible of being complied with by
the Permitted Leasehold Mortgagee.

            (g)   It is understood and agreed that the Permitted Leasehold
Mortgagee or its designees or any purchaser in foreclosure proceedings
(including a corporation formed by any Permitted Leasehold Mortgagee or the
holder or holders of the obligations secured by the Permitted Leasehold
Mortgage) may become the legal owner and holder of this Lease through such
foreclosure proceedings or by assignment of this Lease in lieu of foreclosure
provided, however, that the Permitted Leasehold Mortgagee shall guaranty all of
the obligations and liabilities of Tenant hereunder (except those which are
personal to Tenant, e.g., the obligations of Tenant under Paragraph 28) except
that the Permitted Leasehold Mortgagee shall be released from liability under
this Lease if the substitute tenant is approved by Landlord in its reasonable
discretion applying prudent business judgment or if the substitute tenant is a
Preapproved Assignee.

            (h)   If a termination of this Lease occurs prior to the expiration
of the Term by reason of the rejection of this Lease or other action by a
trustee, court or debtor in possession pursuant to the Federal Bankruptcy Code,
as amended, or any other Federal, state or local insolvency laws, Landlord shall
give the Permitted leasehold Mortgagee written notice that this Lease has been
terminated, together with a statement of any and all sums which would at that
time be due under this Lease but for such termination, and of all other Events
of Default, if any, under this Lease then known to Landlord. The Permitted
Leasehold Mortgagee shall thereupon have the option to obtain a new lease in
accordance with and upon the following terms and conditions: (i) such new lease
shall be effective as of the date of termination of this Lease and shall be for
the remainder of the full original term and at the rent and upon all the
agreements, terms, covenants and conditions hereof; (ii) such new tease shall
require the tenant to perform any unfulfilled obligations of Tenant under this
Lease which are reasonably susceptible of being performed by such tenant; (iii)
if the Permitted Leasehold Mortgagee designates an entity to enter into such new
lease, the Permitted Leasehold Mortgagee shall guaranty all of the obligations
and liabilities of such designee hereunder ( except those which are personal to
such designee, e.g., the obligations of such designee to permit Landlord to
inspect its books and records or to supply financial statements to Landlord
except that no such guaranty shall be required if such designee is approved by
Landlord in its sole discretion; (iv) upon the execution of such new lease, the
tenant named therein shall pay any and all Rent which would at the time of the
execution thereof be due under this Lease but for such termination, less the net
proceeds, if any, of any reletting or other occupancy, after deducting from such
proceeds all of Landlord's expenses in connection with such reletting (including
all repossession costs, brokerage commissions, legal expenses, attorneys' fees,
employees' expenses, costs of alterations and expenses or preparation for
reletting).

                                      -38-

<PAGE>

            (i)   Any notice or other communication which Landlord shall desire
or is required to give to or serve upon any Permitted Leasehold Mortgagee shall
be addressed to such Permitted Leasehold Mortgagee by notice in writing given to
Landlord in accordance with Paragraph 24 hereof. Any notice or other
communication which any Permitted Leasehold Mortgagee shall desire or is
required to give to or serve upon Landlord shall be deemed to have been duly
given or served if sent in accordance with Paragraph 24 hereof.

            (j)   The provisions of this Paragraph 35 shall be self-operative
and shall benefit any Permitted Leasehold Mortgagee of which Landlord has actual
notice. Notwithstanding the foregoing, Landlord shall, at the request of Tenant
or the Permitted Leasehold Mortgagee, and at the sole cost and expense of Tenant
or the Permitted Leasehold Mortgagee, enter into an agreement directly with the
Permitted Leasehold Mortgagee having terms and provisions identical to the
provisions of this Paragraph 35.

            (k)   A Permitted Leasehold Mortgagee shall have the right but not
the duty to attempt to remedy a default or an Event of Default.

      36.   Grants and Releases of Easements. So long as no Event of Default has
occurred and is continuing Landlord hereby agrees to reasonably cooperate with,
the following actions by Tenant, in the name and stead of Landlord and cause
Lender to cooperate with, but at Tenant's sole cost and expense; (a) the
granting of easements, licenses, rights-of-way and other rights and privileges
in the nature of easements reasonably necessary or desirable for the
construction, operation, restoration, use, repair, renovation or maintenance of
the Leased Premises as herein provided; (b) the execution of petitions to have
any Related Premises annexed to any municipal corporation or utility district;
(c) the execution of amendments to any covenants and restrictions affecting the
Leased Premises; (d) Tenant's obtaining all necessary government or third-party
actions, consents or agreements necessary for the performance and completion of
any Alteration provided, that in each case Tenant shall have delivered to
Landlord a certificate staling that: (i) such grant, release, dedication,
transfer, amendment or government action, or other action or agreement (any of
the foregoing, a "Property Action") does not impair the value, utility and
remaining useful life of the applicable Related Premises, (ii) such Property
Action is reasonably necessary in connection with the use, maintenance,
alteration, renovation, construction, operation, restoration, repair or
improvement of the applicable Related Premises, (iii) Tenant shall remain
obligated under this Lease and under any instrument executed by Tenant
consenting to the assignment of Landlord's interest in this Lease as security
for indebtedness, in each such case in accordance with their terms, as though
such Property Action had not been effected and (iv) Tenant shall pay any Costs
of Landlord under such Property Action, Without limiting the effectiveness of
the foregoing, Landlord shall, within thirty (30) days of receipt of the written
request of Tenant, and at Tenant's sole cost and expense (including reasonable
fees and disbursements of counsel to Landlord and Lender to review such
Property Action), review and either approve or disapprove in writing the
proposed Property Action, and, if approved, execute and deliver any instruments
and take any other action reasonably necessary or appropriate to confirm any
such Property Action, to any person permitted under this Paragraph 36 or to
implement any such Properly Action.

      37.   Intentionally Omitted.

      38.   Intentionally Omitted.

      39.   Post-Closing Obligations.

            (a)   Pursuant to those certain Property Condition Reports,
Environmental Audit Reports and Zoning Reports received by Landlord with respect
to the Leased Premises Tenant shall complete, remediate or obtain or caused to
be completed,

                                      -39-

<PAGE>

remediated or obtained the Post-Closing Obligations within the time periods
specified in Exhibit "T".

            (b)   (i) On the date hereof, Tenant has deposited with Landlord (A)
a letter of credit (the "Rocky Mount Environmental Letter of Credit") in the
amount of $l,500,000 (the "Rocky Mount Environmental Escrow") which shall secure
the obligation of Tenant to complete the Post-Closing Obligation listed in
Paragraph 2 A. of Exhibit "I" (the "Rocky Mount Post-Closing Environmental
Obligations") and (B) a letter of credit ( the "General Environmental Letter of
Credit" in the amount of $100,000 (the '"General Environmental Escrow") which
shall secure the obligation of Tenant to complete the Post-Closing Obligations
listed in Paragraphs 1, 2B, 2C and 3 of Exhibit "I" (the "General Post-Closing
Environmental Obligations"). The Rocky Mount Environmental Letter of Credit and
the General Environmental Letter of Credit are referred to as a "Post-Closing
Environmental Letter of Credit" and the Rocky Mount Environmental Escrow and
General Environmental Escrow are referred to as an "Post-Closing Environmental
Escrow".

                  (ii) Each Environmental Letter of Credit shall be issued by a
bank acceptable to Landlord and having a long-term unsecured debt rating of not
less than "A" from S&P and in form and substance satisfactory to Landlord. Each
Environmental Letter of Credit shall be renewed at least thirty (30) days prior
to any expiration thereof. If Tenant fails to renew either Environmental Letter
of Credit by such date, time being of the essence, Landlord shall have the right
at any time after the thirtieth (30th) day before such expiration date to draw
on such Environmental Letter of Credit and to hold proceeds thereof as a cash
Environmental Escrow.

                  (iii) Each Environmental Letter of Credit shall remain in full
force and effect until Tenant is entitled to the return or reduction of the
applicable Environmental Escrow as provided for herein. The Rocky Mount
Environmental Letter of Credit shall be returned to Tenant within thirty
(30) days following the earlier to occur of (A) written consent of Lender to
release the Rocky Mount Environmental Letter of Credit or (B) remediation of the
environmental contamination specified in Paragraph 2 A. of Exhibit "I" in
accordance with Paragraph 2 A. of Exhibit "I" and evidence of payment in full of
all remediation costs in connection with such remediation. The General Letter of
Credit shall be returned to Tenant within thirty (30) days following completion
of the items specified in Paragraphs 1, 2B., 2C., and 3 of Exhibit "I" as
evidenced by written and photographic evidence reasonably satisfactory to
Landlord that the applicable Environmental Obligations have been completed and
evidence of payment in full of all remediation costs.

                  (iv) So long as no Event of Default has occurred and is
continuing if the amount Landlord's Lender requires to be deposited in
connection with the initial Loan with respect to environmental matters is less
than the amount of the applicable Environmental Escrow set forth above, then,
Tenant shall have the right to substitute new Environmental Letter of Credit
in such reduced amounts and upon receipt by Landlord of such new Environmental
Letters of Credit, Landlord shall promptly return the applicable original
Environmental Letter of Credit to Tenant.

            (c)   On the date hereof, Tenant has deposited with Landlord the
amount of $70,437.50 (the "Post-Closing Compliance Escrow") in the form of cash
which shall secure the obligation of Tenant to complete the Post-Closing
Obligations listed in Paragraph 4 of Exhibit "I" (the "Post-Closing Compliance
Obligations"), and shall be held and disbursed as set forth in this Paragraph
39. The Post-Closing Compliance Escrow shall be released to Tenant within thirty
(30) days following the date on which Landlord receives written and photographic
evidence reasonably satisfactory to Landlord that all Post-Closing Compliance
Obligations have

                                      -40-

<PAGE>

been completed (which shall include written and photographic evidence and
evidence of payment in full).

            (d)   If, at any time prior to the release of each Post-Closing
Environmental Escrow or the Post-Closing Compliance Escrow, an Event, of Default
shall have occurred and be continuing. Landlord shall be entitled to draw upon
the Post-Closing Environmental Letter of Credit, any cash Post-Closing
Environmental Escrow or the Post-Closing Compliance Escrow (collectively, the
"Post-Closing Escrow") and shall use the proceeds of the Post-Closing Escrow to
the extent required to satisfy the Rocky Mount Post-Closing Environmental
Obligations, the General Post Closing Environmental Obligations or Post-Closing
Compliance Obligations, as applicable, and be entitled, at its sole discretion,
to apply any remaining balance In payment of any Rent or other charges which
have not been made pursuant to this Lease and any other sums due to Landlord in
connection with any default or the curing thereof, including, without
limitation, any damages incurred by Landlord by reason of such default. Tenant
acknowledges and agrees that such proceeds shall not constitute assets or funds
of Tenant or its estate, or be deemed to be held in trust for Tenant, but shall
be, for all purposes, the property of Landlord (or Lender, to the extent
assigned). Tenant further acknowledges and agrees that Landlord's application of
the proceeds of any Post-Closing Escrow towards the payment of Basic Rent,
Additional Rent or the reduction of any damages due Landlord in accordance with
Paragraph 23 of this Lease, constitute a fair and reasonable use of such
proceeds and the application of such proceeds by Landlord towards, the payment
of Basic Rent. Additional Rent or any other sums due under this Lease shall not
constitute a cure by Tenant of the applicable default, provided that an Event
of Default shall not exist if Tenant restores the applicable Post-Closing Escrow
to its full amount within three (3) days and in accordance with the requirements
of this Paragraph 39, so that the applicable amount of the each Post-Closing
Escrow shall be again on deposit with Landlord.

            (e)   Landlord shall have the right to designate Lender or any other
holder of a Mortgage as the holder of the Post-Closing Escrow (including
assigning to Lender each Post-Closing Environmental Letter of Credit at Tenant's
sole cost or expense) during the term of the applicable Loan who shall have all
of the rights of Landlord under this Paragraph 39. Tenant covenants and agrees
to execute such agreements, consents and acknowledgments as may be requested by
Landlord from time to time to change the holder of each Post-Closing Escrow as
hereinabove provided.

      40.   Miscellaneous.

            (a)   The paragraph headings in this Lease are used only for
convenience in finding the subject matters and are not part of this Lease or to
be used in determining the intent of the parties or otherwise interpreting this
Lease.

            (b)   As used in this Lease, the singular shall include the plural
and any gender shall include all genders as the context requires and the
following words and phrases shall have the following meanings: (i) "including"
shall mean "including without limitation", (ii) "provisions" shall mean
"provisions, terms, agreements, covenants and/or conditions"; (iii) "lien" shall
mean "lien, charge, encumbrance, title retention agreements, pledge, security
interest, mortgage and/or deed of trust"; (iv) "obligation" shall mean
"obligations, duty, agreement, liability, covenant and/or condition"; (v) "any
of the Leased Premises" shall mean "the Leased Premises or any part thereof or
interest therein, including any one or more Related Premises"; (vi) "any of the
Land" shall mean "the Land or any part thereof or interest therein"; (vii) "any
of the Improvements" shall mean "the Improvements or any part thereof or
interest therein"; (viii) "any of the Equipment" shall mean "the Equipment or
any part thereof or interest therein"; and (ix) "any of the Adjoining Property"
shall mean "the Adjoining Property or any part thereof or interest therein".

                                      -41-
<PAGE>

                  (c) Any act which Landlord is permitted to perform under this
Lease may be performed at any time and from time to time by Landlord or any
person or entity designated by Landlord. Each appointment of Landlord as
attorney-in-fact for Tenant hereunder is irrevocable and coupled with an
interest. Landlord shall not unreasonably withhold or delay its consent,
approval or other determination, whenever such consent, approval or other
determination, is required under this Lease. Time is of the essence with respect
to the performance by the parties of their obligations under this Lease.

                  (d) Landlord shall in no event be construed for any purpose
to be a partner, joint venturer or associate of Tenant to any subtenant,
operator, concessionaire or licensee of Tenant with respect to any of the Leased
Premises or otherwise in the conduct of their respective businesses.

                  (e) This Lease and any documents, which may be executed by
Tenant on or about the effective date hereof at Landlord's request constitute
the entire agreement between the Parties and supersede all prior understandings
and agreements, whether written or oral, between the parties hereto relating to
the Leased Premises and the transactions provided for herein. Landlord and
Tenant are business entities having substantial experience with the subject
matter of this Lease and have each fully participated in the negotiation and
drafting of this Lease. Accordingly, this Lease shall be construed without
regard to the rule that ambiguities in a document are to be construed against
the drafter.

                  (f) This Lease may be modified amended, discharged or waived
only by an agreement in writing signed by the party against whom enforcement of
any such modification, amendment, discharge or waiver is sought.

                  (g) The covenants of this Lease shall run with the land and
bind Tenant, its successors and assigns and all present and subsequent
encumbrancers and subtenants of any of the Leased Premises, and shall inure to
the benefit of Landlord, its successors and assigns. If there is more than one
Tenant, the obligations of each shall be joint and several.

                  (h) If any one or more of the provisions contained in this
Lease shall for any reason be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Lease, but this Lease shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.

                  (i) All exhibits attached hereto are incorporated herein as
if fully set forth.

                  (j) Tenant is not, nor will Tenant become, a Person with whom
U.S. persons or entities are restricted from doing business under regulations of
the Office of Foreign Asset Control ("OFAC") of the Department of the Treasury
(including those named on OFAC's Specially Designated and Blocked Persons list)
or under any statute, executive order (including the September 24, 2001,
Executive Order Blocking Property and Prohibiting Transactions with Persons Who
Commit, Threaten to Commit, or Support Terrorism), or other governmental action
and Tenant not will engage in any dealings or transactions or be otherwise
associated with such persons or entities.

                  (k) Each of Landlord and Tenant hereby agree that the State of
New York 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 Lease and the obligations arising hereunder shall be governed
by, and construed in accordance with, the laws of the State of New York
applicable to

                                      -42-
<PAGE>

contracts made and performed therein and all applicable law of the United
States of America; except that, at all times, the provisions for the creation of
the leasehold estate,enforcement of Landlord's rights and remedies with respect
to right of re-entry and repossession, surrender, delivery, ejectment,
dispossession, eviction or other in-rem proceeding or action regarding any
Related Premises pursuant to Paragraph 23 hereof shall be governed by and
construed according to the Laws of the State in which the applicable Related
Premises is located, it being understood that, to the fullest extent permitted
by law of such State, the Law of the State of New York shall govern the validity
and the enforceability of the Lease, and the obligations arising hereunder. To
the fullest extent permitted by law, Tenant hereby unconditionally and
irrevocably waives any claim to assert that the law of any other jurisdiction
governs this Lease. Any legal suit, action or proceeding against Tenant arising
out of or relating to this Lease may be instituted in any federal or state court
sitting in the County of New York. State of New York, and Tenant waives any
objection which it may now or hereafter have to the laying of venue of any such
suit, action or proceeding in such County and State, and Tenant hereby expressly
and irrevocably submits to the jurisdiction of any such court in any suit action
or proceeding. Notwithstanding the foregoing, nothing herein shall prevent or
prohibit Landlord from instituting any suit, action or proceeding in any other
proper venue or jurisdiction in which Tenant is located or where service of
process can be effectuated.

                  (j) This Lease may be executed in a number of counterparts and
by different parties hereto in separate counterparts each of which, when so
executed, shall be deemed to be an original and all of which taken together
shall constitute but one and the same agreement.

                                      -43-
<PAGE>

      IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly
executed under seal as of the day and year first above written.

                               LANDLORD:

                               PG(MULTI-16)L.P.,
                               a Delaware limited Partnership

                               By: PG (MULTI)QRS 16-7, Inc., its general
                               partner

                               By: /s/ Peter E. Kaplan
                                   ------------------------------------------
                               Name: Peter E. Kaplan
                               Title: Director

                               TENANT:

                               PLY GEM INDUSTRIES,INC.,
                               a Delaware corporation,

                               By: /s/ Shawn K. Poe
                                   ------------------------------------------
                               Name: Shawn K. Poe
                               Title: VICE PRESIDENT

                               GREAT LAKES WINDOW, INC.,
                               an Ohio corporation,

                               By: /s/ Shawn K. Poe
                                   ------------------------------------------
                               Name: Shawn K. Poe
                               Title: Vice President

                               MWM HOLDING, INC.,
                               a Delaware corporation,

                               By: /s/ Shawn K. Poe
                                   ------------------------------------------
                               Name: Shawn K. Poe
                               Title: Vice President

          SIGNATURE PAGE TO PLY GEM AMENDED & RESTATED LEASE AGREEMENT

<PAGE>

                               MW MANUFACTURERS HOLDING
                               CORP.,
                               a Delaware Corporation,

                               By: /s/ Shawn K. Poe
                                   ------------------------------------------
                               Name: Shawn K. Poe
                               Title: Vice President

                               MW MANUFACTURERS INC.,
                               a Delaware corporation,

                               By: /s/ Shawn K. Poe
                                   ------------------------------------------
                               Name: Shawn K. Poe
                               Title: Vice President

                               NAPCO WINDOW SYSTEMS, INC.,
                               a Delaware corporation,

                               By: /s/ Shawn K. Poe
                                   ------------------------------------------
                               Name: Shawn K. Poe
                               Title: Vice President

                               KROY BUILDING PRODUCTS, INC.,
                               a Delaware Corporation,

                               By: /s/ Shawn K. Poe
                                   ------------------------------------------
                               Name: Shawn K. Poe
                               Title: Vice President

                               NAPCO, INC.,
                               a Delaware corporation,

                               By: /s/ Shawn K. Poe
                                   ------------------------------------------
                               Name: Shawn K. Poe
                               Title: Vice President

         SIGNATURE PAGE TO PLY GEM AMENDED &. RESTATED LEASE AGREEMENT
<PAGE>

                                                THERMAL-GARD, INC.,
                                                a Pennsylvania corporation

                                                By: /s/ Shawn K. Poe
                                                    ----------------------------
                                                Name: Shawn K. Poe
                                                Title: Vice President

                                                VARIFORM, INC.,
                                                a Missouri corporation

                                                By: /s/ Shawn K. Poe
                                                    ----------------------------
                                                Name: Shawn K. Poe
                                                Title: Vice President

          SIGNATURE PAGE TO PLY GEM AMENDED & RESTATED LEASE AGREEMENT

<PAGE>

State of New York       )
                        )ss.
County of New York      )

            On March 28, 2005, before me, Victoria J. Reed personally appeared
Peter E. Kaplan personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument, and acknowledged to me that he/she executed the same in his/her
authorized capacity, and that by his/her signature on the instrument the
persons, or the entity, upon behalf of which the person acted, executed the
instrument.

      Witness my hand and official seal.

                                           /s/ Victoria Joann Reed
                                               --------------------------------
                                               Signature of Notary

State of Missouri      )

                       )ss.                  VICTORIA JOANN REED
                                             NOTARY PUBLIC, STATE OF NEW YORK
County of Clay         )                     No. 01RE6095491
                                             QUALIFIED IN NEW YORK COUNTY
                                             MY COMMISSION EXPIRES JULY 14, 2007

            On March 28, 2005, before me, Monica Dunivent, personally appeared
Shawn K. Poe, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument, and acknowledged to me that he/she executed the same in his/her
authorized capacity, and that by his/her signature on the instrumental the
persons, or the entity upon behalf of which the person acted, executed the
instrument.

      Witness my hand and official seal,

       MONICA A. DUNIVENT                  /s/ Monica A. Dunivent
       Notary Public - Notary Seal             ------------------------------
       STATE OF MISSOURI                       Signature of Notary
       Clay County
       My Commission Expires: Dec. 17, 2007

          SIGNATURE PAGE TO PLY GEM AMENDED & RESTATED LEASE AGREEMENT

<PAGE>

State of Missouri      )

                       )ss.

County of Clay         )

            On March 28, 2005, before me, Monica Dunivent, personally appeared
Shown K. Poe, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument, and acknowledged to me that he/she executed the same in his/her
authorized capacity, and that by his/her signature on the instrument the
persons, or the entity upon behalf of which the person acted, executed the
instrument.

      Witness my hand and official seal.

         MONICA A. DUNIVENT                      /s/ Monica A. Dunivent
    NOTARY PUBLIC -- NOTARY SEAL                 ------------------------------
         STATE OF MISSOURI                           Signature of Notary
            Clay County
My Commission Expires: Dec. 17, 2007

State of Missouri      )

                       )ss.

County of Clay         )

            On March 28, 2005, before me, Monica Dunivent, personally appeared
Shawn K. Poe, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument, and acknowledged to me that he/she executed the same in his/her
Authorized capacity, and that by his/her signature on the instrument the
persons, or the entity upon behalf of which the person acted, executed the
instrument.

      Witness my hand and official seal,

         MONICA A. DUNIVENT                       /s/ Monica A. Dunivent
    NOTARY PUBLIC -- NOTARY SEAL                      --------------------------
         STATE OF MISSOURI                            Signature of Notary
            Clay County
My Commission Expires: Dec. 17, 2007

          SIGNATURE PAGE TO PLY GEM AMENDED & RESTATED LEASE AGREEMENT

<PAGE>

State of Missouri      )

                       )ss.

County of Clay         )

            On March 28, 2005, before me, Monica Dunivent, personally appeared
Shown K. Poe, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument, and acknowledged to me that he/she executed the same in his/her
authorized capacity, and that by his/her signature on the instrument the
persons, or the entity upon behalf of which the person acted, executed the
instrument.

      Witness my hand and official seal.

         MONICA A. DUNIVENT                /s/ Monica A. Dunivent
    NOTARY PUBLIC -- NOTARY SEAL           ------------------------------------
         STATE OF MISSOURI                     Signature of Notary
            Clay County
My Commission Expires: Dec. 17, 2007

State of Missouri      )

                       )ss.

County of Clay         )

            On March 28, 2005, before me, Monica Dunivent, personally appeared
Shawn K. Poe, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument, and acknowledged to me that he/she executed the same in his/her
Authorized capacity, and that by his/her signature on the instrument the
persons, or the entity upon behalf of which the person acted, executed the
instrument.

      Witness my hand and official seal,

         MONICA A. DUNIVENT                  /s/ Monica A. Dunivent
    NOTARY PUBLIC -- NOTARY SEAL             -----------------------------------
         STATE OF MISSOURI                                   Signature of Notary
            Clay County
My Commission Expires: Dec. 17, 2007

          SIGNATURE PAGE TO PLY GEM AMENDED & RESTATED LEASE AGREEMENT

<PAGE>

State of Missouri      )

                       )ss.

County of Clay         )

            On March 28, 2005, before me, Monica Dunivent, personally appeared
Shawn K. Poe, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument, and acknowledged to me that he/she executed the same in his/her
authorized capacity, and that by his/her signature on the instrument the
persons, or the entity upon behalf of which the person acted, executed the
instrument.

      Witness my hand and official seal.

         MONICA A. DUNIVENT                /s/ Monica A. Dunivent
    NOTARY PUBLIC -- NOTARY SEAL           ------------------------------------
         STATE OF MISSOURI                     Signature of Notary
            Clay County
My Commission Expires: Dec. 17, 2007

State of Missouri      )

                       )ss.

County of Clay         )

            On March 28, 2005, before me, Monica Dunivent, personally appeared
Shawn K. Poe, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument, and acknowledged to me that he/she executed the same in his/her
authorized capacity, and that by his/her signature on the instrument the
persons, or the entity upon behalf of which the person acted, executed the
instrument.

      Witness my hand and official seal.

         MONICA A. DUNIVENT                /s/ Monica A. Dunivent
    NOTARY PUBLIC -- NOTARY SEAL           -----------------------------------
         STATE OF MISSOURI
            Clay County                                    Signature of Notary
My Commission Expires: Dec. 17, 2007

          SIGNATURE PAGE TO PLY GEM AMENDED & RESTATED LEASE AGREEMENT

<PAGE>
Exhibit 10.16

State of Missouri      )

                       )ss.

County of Clay         )

            On March 28, 2005, before me, Monica Dunivent, personally appeared
Shawn K. Poe, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument, and acknowledged to me that he/she executed the same in his/her
authorized capacity, and that by his/her signature On the instrument the
persons,or the entity upon behalf of which the person acted, executed the
instrument.

      Witness my hand and official seal.

         MONICA A. DUNIVENT                /s/ Monica A. Dunivent
    NOTARY PUBLIC -- NOTARY SEAL           ----------------------------------
         STATE OF MISSOURI                     Signature of Notary
            Clay County
My Commission Expires: Dec. 17, 2007

State of Missouri      )

                       )ss.

County of Clay         )

            On March 28, 2005, before me, Monica Dunivent personally appeared
Shawn K. Poe personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument, and acknowledge to me that he/she executed the same in his/her
authorized capacity, and that by his/her signature on the instrument the
persons, or the entity upon behalf of which the person acted, executed the
instrument.

      Witness my hand and official seal.

         MONICA A. DUNIVENT                 /s/ Monica A. Dunivent
    NOTARY PUBLIC -- NOTARY SEAL            -----------------------------------
         STATE OF MISSOURI                                   Signature of Notary
            Clay County
My Commission Expires: Dec. 17, 2007

          SIGNATURE PAGE TO PLY GEM AMENDED & RESTATED LEASE AGREEMENT

<PAGE>

State of Missouri      )

                       )ss.

County of Clay         )

            On March 28, 2005, before me, Monica Dunivent, personally appeared
Shawn K. Poe, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument, and acknowledged to me that he/she executed the same in his/her
authorized capacity, and that by his/her signature on the instrument the
persons,or the entity upon behalf of which the person acted, executed the
instrument.

      Witness my hand and official seal.

      MONICA A. DUNIVENT                   /s/ Monica A. Dunivent
      Notary Public - Notary Seal          ------------------------------------
      STATE OF MISSOURI                        Signature of Notary
      Clay County
      My Commission Expires: Dec. 17, 2007

          SIGNATURE PAGE TO PLY GEM AMENDED & RESTATED LEASE AGREEMENT
<PAGE>

                                                                       EXHIBIT A
                                    PREMISES

VIRGINIA

PARCEL 1:

ALL THAT certain real estate, wholly situate in the Town of Rocky Mount,
Franklin County, Virginia, and described as follows:

BEGINNING at Corner 1 on the southwesterly side of U.S. Highway Route 220 (50
ft. wide) at the north most corner of the Weaver Mirror Company, Inc., property
as shown on plat of survey of 37.84 acres, property of Vaughn Wood Products,
Inc., to be conveyed to U.S. Industries, Inc., by C.B. Malcolm and Son,
Engineers, dated March 17, 1969, said plat recorded in the Clerk's Office of the
Circuit Court of Franklin County in Deed Book 254, page 82: thence leaving
Corner 1 and with westerly lines of Weaver Minor Company Inc. property, S 46
degrees 50' W 67.00 feet to Corner 2, thence S 53 degrees 25' E 95.40 feet to
Corner 3: thence S 22 degrees 15' W 41.71 ft. to Corner 4; thence S 11 degrees
40' W 37.0 ft. to Corner 5; thence S 1 degree 00'E 145.50 feet to Corner 6;
thence S 87 degrees 50' E 14.00 feet to Corner 7 which is S 17 degrees W 7.3
feet from the southeast building corner of Weaver Mirror Company Inc., thence
with the southwest end of a roadway, S 55 degrees 00' E 18.0 ft. to Corner 8 on
the northwest side of the Norfolk and Western Railway Company right of way:
thence with the same S 35 degrees 51' W 168.68 ft. to an angle in said right of
way at Corner 9; thence with the northwesterly right of way of the Norfolk and
Western Railway Company (50 ft. northwesterly from and parallel with the
centerline of same, S 73 degrees 27' W passing the south side of a building on
the right of way line at 370.6 ft. and continuing northerly from the
southwesterly corner of same at 376.7 ft. and passing the west side of the
building on the right of way line at 376. ft. in all a total distance of 1732.32
to Corner 10; thence with a curved line to the left, whose radius is 1482.5 ft.,
and whose chord is S 67 degrees 09' W 325.36 ft. in all the are length of 326.02
ft. to Corner 11; thence continuing with the northwest side of the Norfolk and
Western Railway Company right of way (50 ft. northerly from and parallel with
the centerline of same) S 60 degrees 51' W passing the approximate center of an
8" sanitary sewer main at 333 ft. and passing the westerly end of concrete head
will at 338.88 ft., in all a total distance of 449.78 ft. to Corner 12; thence
leaving the Railway right of way and with outside lines of the 2.4 acre more or
less parcel described in Deed Book 250, page 209; N 3 degrees 41' E passing the
stream which flows from the culvert under the aforementioned concrete head wall
at approximately 85 ft. and passing the centerline of the sanitary sewer at
approximately 83 ft. and recrossing another stream at approximately 260 ft., in
all a total distance of 313.30 ft. to Corner 13 (which is slightly southwest of
the sanitary sewer main); thence N 85 degrees 19' E recrossing the last
mentioned stream at about 40 ft., in all a total distance of 289.49 ft. to
Corner 14; thence with the westerly line of the original 10.84 acre tract, N 19
degrees 05' W and continuing with a total distance of 556.04 ft. to Corner 15;
it being the northwest corner of the lot conveyed to Vaughn Wood Products, Inc.,
by General J. D. Rakes, et ux ., by Deed dated March 17,1969, of record in Deed
Book 254, page 51; thence with the southerly line of the lots conveyed to
General J.D. Rakes, by deeds of record in Deed Book 147, page 237, and Deed Book
254, page 53, N 69 degrees 11'E 150.00 ft. to Corner 16; thence N 19 degrees 05'
W 125.00 ft. to an old iron pin at Corner 17; thence with the southeasterly
lines of the 0.99 acre parcel of record in Deed Book 154, page 514, N 69 degrees
11'E 37.36 ft. to Corner 18; thence continuing with the same, N 62 degrees 50' E
242.5 ft. to Corner 19; thence with the J.B. Haley and O.R. Prillaman lot of
record in Deed Book 143, page 212 N 64 degrees 06' E 194.29 ft. to Corner 20;
thence with the westerly line of Block B. Clarke Addition Map of record in Map
Book 1, page 164, S 5 degrees 07' E, and crossing the westerly terminus of
Smithers Street (40 ft. wide), in all a total distance of 113.00 ft. to Corner
21; thence with the southerly side of Smithers Street; N 79 degrees 39' E
1040.18 ft. to an angle at Corner 22; thence

                EXHIBIT A TO PLY GEM AMENDED & RESTATED LEASE - 1

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continuing with the southeasterly side of Smithers Street, N 51 degrees 43' E
187.04 ft. to Corner 23; thence with the northeasterly lines of the 0.65 acre
portion of vacated Clark Addition, S 50 degrees 18' 20' E 103.33 ft. to an iron
pipe at Corner 24; thence N 51 degrees 44' 40" E 49.70 ft. to Corner 25; thence
S 39 degrees 48' 20' E 169.02 ft. to an old iron pipe at Corner 26; thence with
the northwest line of the 6.17 acre tract described in Deed Book 118, at page
589, N 50 degrees 46 "/z E 225.58 ft. to Corner 27; thence with the southwest
line of U.S. Highway Route 220, S 61 degrees 15' E 208.70 ft. the place of
BEGINNING.

VIRGINIA

PARCEL 2:

ALL that certain tract or pared of land lying and being in the Town of Rocky
Mount, Frankin County, Virginia, fronting on U.S. Highway No. 220. and on the
west side thereof, and between the roadway along the Franklin and Pittsylvania
right-of-way (now Norfolk and Western right-of-way) and the Norfolk and Western
siding, together with all buildings and equipment thereto belonging, and bounded
as follows:

BEGINNING at an iron stake on the West side of U.S. Highway No. 311 (now No.
220) and with the right of way of said Highway N 61 degrees 15' W 214.4 feet to
an iron; thence leaving the highway a new line with Balk Knob Furniture
Company's property (now the property of MW Manufactures, Inc.) S 46 degrees 50'
W 67 feet to an iron; thence S. 63 degrees 25' E 95.4 Feet to an iron; thence
running parallel or nearly so, with the Norfolk and Western siding S 14 degrees
15' W 42 feet to a point S 10 degrees 15' W 37 feet S 2 degrees 35' E 145.5 feet
to an iron on the roadways; thence with the roadway S 87 degrees 50' E 14 feet
to an iron (this point being 7.3 feet from the southwest comer of a building on
the property herein conveyed as it existed in July 1940); thence N 36 degrees E
272.6 feet to the point of BEGINNING.

Together with all the rights of Grantor to the use of a roadway and portions of
the Norfolk and Western right-of-way on the southeast side of said property, and
together with all appurtenances thereunto belonging.

                 EXHIBIT A TO PLY GEM AMENDED & RESTATED LEASE-2

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NEBRASKA

PARCEL 1:

Lot Two (2) in Replat of Block 1, in Alcan Subdivision to the City of York' York
County, Nebraska.

Parcel 2: Lot One (1), Block Two (2), in Alcan Subdivision to the City of York,
York County, Nebraska EXCEPT that portion taken by the State of Nebraska for
highway purposes as recorded in Book 36, Page 528 of York County Miscellaneous
records and more particularly described as follows:

Beginning at the Southeast corner of said Quarter section; thence Westerly along
the South line of said Quarter Section, a distance of 921.06 feet to the West
line of said Lot; thence Northerly along said line deflecting 89 degrees 59
minutes 52 seconds right a distance of 87.55 feet; thence Easterly deflecting 87
degrees 45 minutes 12 seconds right a distance of 921.63 feet to the East line
of said Quarter Section; thence Southerly along said line deflecting 92 degrees,
11 minutes, 02 seconds right a distance of 123.72 feet to the point of
beginning.

                EXHIBIT A TO PLY GEM AMENDED & RESTATED LEASE - 3
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WEST VIRGINIA

That certain tract or parcel of real estate, located about 546' southwest of W.
Va. Rte. 9 about 713' southeast of the intersection of W. Va. Sec, Rte, 9/13 and
W. Va. Sec. Rte. 9, situate, lying and being in Arden District, Berkeley County,
West Virginia, and described as follows:

Beginning at (264) a point in the southwesterly R/W line of Tract No. 7 and in
the line of the now or formerly Continental Clay Products Company tract; thence
with the Continental Clay tract the following courses: S 41 degrees 13' 05" W
402.106' to (166) a dinky rail S 26 degrees 17' 20" W 817.268' to (167) a dinky
rail S 31 degrees 39' 31" W 438.589' to (168) a dinky rail S 26 degrees 50'
07" W 347.776' to (169) a dinky rail S 26 degrees 50' 07" W 12.755' to (198) 4
point in the middle of Evans Run corner to the above mentioned Continental Clay
Company tract and in the line of the now or formerly Roscoe Rauch tract; thence
with the Rauch tract the following courses: N 69 degrees 45' 53" W 305.103' to
(200) a point in the middle of Evans Run; thence N 89 degrees 05' 12" W
464.456' to (201) an 8" diameter oak tree S 44 degrees 58' 21" W 486.051' to
(137) a wood fence post; thence S 42 degrees 35' 22" W 21.443' to (246) a point
in the eastern R/W line of W. Va. Sec. Rte. 9/13; thence with the R/W of W. Va.
Sec. Rte. 9/13 the following courses: N 19 degrees 40' 09" E 79.478' to (245) a
point S 70 degrees 19' 51" E 15.000' to (244) a point; thence with the R/W on a
curve to the right having a radius of 2009.430' and a chord of N 26 degrees 46'
00" E 496.558' to (241) a point; thence N 32 degrees 34' 56" E 200.00' to (235)
a point on the RAN and corner to the Asphalt Products Company Tract; thence with
the Asphalt Products Company tract the following course: S 57 degrees 16' 45" E
171.436' to (66) a point corner to the above mentioned Asphalt Products Company
tract and in the line of the Baltimore and Ohio Railroad Company R/W; thence
with the above mentioned R/W and Asphalt Products Company tract on a curve to
the left having a radius of 1507.948' and a chord of N 35 degrees 15'18" E
668.875' to (222) a point N 20 degrees 03' 22" E 146. 819' to (219) a point;
thence on a curve to the right having a radius of 2261.515' and a chord of N
34 degrees 46' 51" E 725.518' to (217) a point; thence, with the Baltimore &
Ohio Railroad, Asphalt Products Company in part and in part with the Beallair
Orchards, Inc. tract N 46 degrees 58' 29" E 987.020' to (271) a point in the
Baltimore and Ohio Railroad Company R/W; thence crossing the above mentioned R/W
the following course: S 43 degrees 01' 31" E 50.000' to (257) a point in the
westerly R/W of Tract No. 7 of the Baltimore and Ohio Railroad; thence with the
above said R/W the following courses: on a curve to the left having a radius of
328.289' and a chord of S 10 degrees 04' 21" W 201.634' to (265) a point;
thence S 12 degrees 13' 38" E 181.874' to (266) a point; thence on a curve to
the right having a radius of 373:481' and a chord of S 01 degrees 05' 31" E
152.728' to (264) the point of beginning containing 33.0408 acres and being
subject to easements of record and in existence, as shown on a plat of survey
dated November 4, 1985, of record in the office of the Clerk of the County
Commission of Berkeley County, West Virginia, in Plat Cabinet 2, Slide 119.

Together with the following described easements and rights of way:

(1)   A non-exclusive, right of way and easement for purposes of ingress and
egress and extension of utilities to the above described property over, under
and upon the hereinafter described parcel of real estate:

      That certain parcel of real estate, located on W. Va. Rte. 9 about 713'
southeast of the intersection of W. Va. Sec. Rte. 9/13 and W. Va. Rte. 9
situate, lying and being in Arden District, Berkeley County, West Virginia and
described as follows:

Beginning at (231) a point in the southwesterly R/W line of W. Va. Rte. 9 and
corner to the now or formerly Continental Clay Products Company tract; thence
with the Continental Clay tract the following course: S 41 degrees 13' 05" W
363.509' to (255) a point corner to the above mentioned Continental Clay
Products Company tract and Tract No. 7 of the Baltimore and Ohio Railroad
Company; thence with Tract No. 7 the following course: on a curve to the right
having a radius of 288.289' and a chord of N 49 degrees 26' 07" W 60.783' to
(261) a point corner to the above

                EXHIBIT A TO PLY GEM AMENDED & RESTATED LEASE - 4

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mentioned Tract No. 7 and in the line of the Continental Clay Products Company
tract; thence with the Continental Clay Products Company tract in part and in
part with the above mentioned Tract No. 7 the following course: N 31 degrees
02' 54" W 186.825' to (209) a point in the center line of Tract No. 7 and corner
to the Continental Clay Products Company tract; thence leaving the said
Continental Clay Products Company tract and crossing the Tract No. 7 of the
Baltimore and Ohio Railroad Company on a curve to the left and having a radius
of 65.769' and a chord of N 44 degrees 48' 01" W 31.270' to (291) a point in
the westerly R/W line of the above mentioned Tract No. 7; thence with the
westerly R/W line of Tract No. 7 the following course: on a curve to the right
having a radius of 328.289' and a chord of N 00 degrees 09' 01" E 33.269' to
(290) a point; thence crossing Tract No. 7 on a curve to the right having a
radius of 95.769' and chord of S 49 degrees 59' 55" E 62.202' to (288) a point
corner to the Jeff Petrucci tract; thence with the Petrucci tract the following
courses: S 32 degrees 05' 15" E 107.518' to (284) a point; thence on a curve to
the left having a radius of 76.762' and a chord of S 86 degrees 17' 33" E
121.782' to (283) a point; thence N 41 degrees 13' 05" E 248.148' to (277) a
point corner to Jeff Petrucci and in the southwesterly R/W line of W. Va. Rte.
9; thence with the southwesterly R/W line of Rte. 9 the following course: S
25 degrees 50' 55" E 32.575' to (231) the point of beginning containing 0.4982
acre and being subject to easements of record and in existence.

(2)   A construction right-of-way and construction easement (the "Construction
Easement") for the purpose of constructing and maintaining a water line in,
through, over, upon, under and across the following described real estate shown
on Drawing No. 3318-1 surveyed by P. C. DiMagno, Engineers & Surveyors, dated
November 4, 1985, recorded in the office of the Clerk of the County Commission
of Berkeley County, West Virginia, in Plat Cabinet 2, Slide 119, located on W.
Va. Rte. 9/13 about 600' southwest of the intersection of W. Va. Sec. Rte. 9/13
and W. Va. Rte. 9 situated in Arden District, Berkelet County, West Virginia,
bounded and described as follows:

Beginning at (55) a point corner to Beallair Orchards, Inc. tract, Asphalt
Products Company tract, and in the centerline of W. Va. Sec. Rte. 9/13; thence
with the above mentioned Beallair Orchard tract and the Asphalt Products Company
tract the following course: S 50 degrees 10' 49" E 248.000' to (54) a point
corner to the above mentioned Beallair Orchard tract, Asphalt Products Company
tract, and in the line of the Baltimore and Ohio Railroad R/W; thence with the
Baltimore and Ohio Railroad R/W and the Asphalt Products Company tract the
following courses: S 47 degrees 03' 11" W 20.160' to (275) a point in the above
mentioned railroad R/W and Asphalt Products Company; thence with the Asphalt
Products Company making a new line the following course: N 50 degrees 10' 49" W
246.143' to (273) a point in the centerline of W. Va. Sec. Rte. 9/13 and the
above mentioned Asphalt Products Company; thence with the Asphalt Products
Company and the centerline of W. Va. Sec. Rte. 9/13 the following course: N
41 degrees 46' 11" E 20.112' to (55) the point of beginning, containing 0.1134
acres.

                EXHIBIT A TO PLY GEM AMENDED & RESTATED LEASE - 5

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NORTH CAROLINA

ALL those certain tracts or parcels of land lying and being in the Town of Fair
Bluff, Fair Bluff Township, Columbus County, North Carolina, and being known as
the Glastron, Inc. tracts and being described in Deed Book 385 at Page 747, and
plat Book 40 at Page 18, records of Columbus County, North Carolina, and being
more particularly described as follows:

BEGINNING on an existing iron pipe on the East right of way of U.S. 76, said
pipe being the Southwest corner of the Ernest Strickland Lot, said pipe being
the Beginning corner of the second tract as described in Deed Book 385 at Page
747, records of Columbus County, North Carolina, said pipe being further located
South 2 degrees 26 minutes East 240.21 feet from a PK nail in the centerline of
the Croft Metals Access Road where said centerline intersects with the East
right of way of U.S. 76, said PK nail being the Southwest corner of the N.C.
National Guard Armory Lot as described in Deed Book 211 at Page 272, records of
Columbus County, North Carolina, proceed from said Beginning Point with the
South line of the aforesaid Earnest Strickland Lot South 86 degrees 27 minutes
45 seconds East 209.37 feet to an existing pipe, the Southeast corner of said
lot; thence North 2 degrees 17 minutes West 209.85 feet to an iron the Northeast
corner of said lot; thence with the South right of way of the aforesaid Croft
Metals Access Road on Street South 86 degrees 30 minutes 46 seconds East 762.54
feet to an existing pipe; thence South 4 degrees 7 minutes 33 seconds East
210.70 feet to an existing pipe; thence South 86 degrees 28 minutes 22 seconds
East 886.50 feet to an existing pipe; thence South 2 degrees 35 minutes East
735.23 feet to an iron in the centerline of an old road known as the New Cut
Road or Old Bay Road; thence with the centerline of said road South 33 degrees
00 minutes 30 second West 112.63 feet to an existing pipe in the centerline of
said road; thence North 86 degrees 29 minutes 26 seconds West 1074.34 feet to an
existing pipe; thence North 86 degrees 57 minutes 38 seconds West 435.64 feet to
an existing iron thence North 2 degrees 26 minutes 35 seconds West 150.45 feet
to an existing iron; thence North 86 degrees 51 minutes 35 seconds West 290.09
feet to an iron on the East right of way of U.S. 76; thence with the East right
of way of U.S. 76 North 2 degrees 30 minutes 08 seconds West 688.84 feet to the
Point of Beginning and containing 38.17 acres.

Also a perpetual easement with right of ingress and egress over the 30 foot
strip lying North of the tract above described and being more particularly
described as follows:

BEGINNING on a PK nail in the centerline of the Croft Metals Access Road, said
PK nail being the Southwest corner of the N.C. National Guard Armory Lot as
recorded in Deed Book 211 at Page 272, records of Columbus County, North
Carolina, proceed from said Beginning Point with the centerline of the aforesaid
Croft Metals Access Road South 86 degrees 29 minutes East 971.72 feet to an
existing pipe; thence South 3 degrees 55 minutes 44 seconds East 30.07 feet to
an existing pipe the Northeast corner of the above described tract; thence with
the North line of said tract North 86 degrees 30 minutes 46 seconds West 762.54
feet to an iron, the Northwest corner of the aforesaid above described tract;
thence North 86 degrees 23 minutes West 209.97 feet to an existing pipe on the
East right of way of U.S. 76; thence with the East right of way of U.S. 76 North
2 degrees 26 minutes West 30 feet to the Point of Beginning. See copy of map
entitled, "Plat for Amerimark Building Products, Inc. including General Electric
Capital Corporation as agent, and Commonwealth Land Title Insurance Company,"
prepared by Billy M. Duncan, Registered Land Surveyor, bearing date of December
2, 1993 of which this is a part of and is incorporated by reference for more
clarity and particularity of description.

                EXHIBIT A TO PLY GEM AMENDED & RESTATED LEASE - 6

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OHIO

PARCEL I:

Part of the South 1/2 of the southeast 1/4 of Section 24, Town 3, United States
Reserve, Perrysburg Township, Wood County, Ohio, bounded and described as
follows:

Commencing at the northeast corner of the southeast 1/4 of said section 24;
thence 00 degrees, 56 minutes, 21 seconds east along the east line of the
southeast 1/4 of said Section 24, a distance of 2017.90 feet to the point of
beginning; said point also being the intersection of the centerline of
Reuthinger Road and the east line of the southeast 1/4 of said Section 24;
thence south 89 degrees, 31 minutes, 17 seconds west along the centerline of
Reuthinger Road, a distance of 675.63 feet to a point; thence south 00 degrees,
56 minutes, 21 seconds east a distance of 643.40 feet to a point on the
northerly right of way line of the Toledo Terminal Railroad; thence north 89
degrees, 45 minutes, 00 seconds east along the northerly line of the Toledo
Terminal Railroad, a distance of 675.66 feet to a point on the east line of the
Southeast 1/4 of said section 24; thence north 00 degrees, 56 minutes, 21
seconds west along the east line of the southeast 1/4 of said section 24, a
distance of 646.10 feet to the point of beginning; containing ten and zero
hundredths (10.00) acres of land, more or less. Subject to legal highways.

OHIO

PARCEL II:

A parcel of land being part of the south 1/2 of the southeast 1/4 of Section 24,
Town 3, United States Reserve, Perrysburg Township, Wood County, Ohio, and being
more particularly described as follows:

Commencing at the northeast corner of the southeast 1/4 of said Section 24;
thence South 00 degrees, 56 minutes, 21 seconds east along the east line of the
Southeast 1/4 of said Section 24, said line also being the center line of Tracy
Road, a distance of 2017.90 feet to the intersection of the center line of
Reuthinger Road and the east line of the Southeast 1/4 of said section 24;
thence South 89 degrees, 31 minutes, 17 seconds west along the center line of
Reuthinger Road, a distance of 675.63 feet to a point; thence south 00 degrees,
56 minutes, 21 seconds east a distance of 209.00 feet to the True Point of
Beginning thence south 89 degrees, 45 minutes, 00 seconds west a distance of
150.00 feet to a point; thence south 00 degrees, 56 minutes, 21 seconds east a
distance of 434.40 feet to point on the northerly right of way line of the
Toledo Terminal Railroad; thence North 89 degrees, 45 minutes, 00 seconds east
along the northerly line of the Toledo Terminal Railroad, a distance of 150.00
feet to a point; thence North 00 degrees, 56 minutes, 21 seconds west a distance
of 434.40 feet to the True Point of Beginning.

Containing 65,159 square feet, which is equal to one and four hundred ninety-six
thousandths (1.496) acres of land, more or less. Subject, however, to all legal
highways and easements of record.

                EXHIBIT A TO PLY GEM AMENDED & RESTATED LEASE - 7

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MISSOURI

ALL THAT PART OF THE SOUTHEAST QUARTER OF SECTION 27, TOWNSHIP 53, RANGE 31,
CLAY COUNTY, MISSOURI DESCRIBED AS FOLLOWS: BEGINNING AT THE POINT OF
INTERSECTION OF THE NORTH LINE OF SAID QUARTER SECTION AND THE WEST LINE OF THE
RIGHT-OF-WAY OF THE CHICAGO, BURLINGTON AND QUINCY RAILROAD, SAID POINT BEING
NORTH 89 DEGREES 24 MINUTES 49 SECONDS WEST A DISTANCE OF 1394.76 FEET FROM THE
NORTHEAST CORNER OF SAID QUARTER SECTION; THENCE SOUTH 0 DEGREES 27 MINUTES 07
SECONDS EAST ALONG SAID RIGHT-OF-WAY LINE, A DISTANCE OF 657.77 FEET; THENCE
NORTH 89 DEGREES 24 MINUTES 49 SECONDS WEST AND PARALLEL TO THE NORTH LINE OF
SAID QUARTER SECTION, A DISTANCE OF 802.47 FEET TO A POINT 60.0 FEET, MEASURED
AT RIGHT ANGLES FROM THE EASTERLY LINE OF THE RIGHT-OF-WAY OF INTERSTATE ROUTE

35; THENCE NORTH 22 DEGREES 47 MINUTES 00 SECONDS EAST AND PARALLEL TO THE
RIGHT-OF-WAY OF SAID INTERSTATE ROUTE 35, A DISTANCE OF 710.30 FEET TO A POINT
ON THE NORTH LINE OF SAID QUARTER SECTION; THENCE SOUTH 89 DEGREES 24 MINUTES 49
SECONDS EAST ALONG THE NORTH LINE OF SAID QUARTER SECTION A DISTANCE OF 522.21
FEET TO THE POINT OF BEGINNING.

               EXHIBIT A TO PLY GEM AMENDED & RESTATED LEASE - 8

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PENNSYLVANIA

PREMISES A:

All that certain lot or piece of ground situate in the Township of Middlesex,
County of Butler and Commonwealth of Pennsylvania, bounded and described as
follows:

Beginning at a point, which point is the Southeast corner of the tract herein
described and which said beginning point is determined as follows: Beginning at
the center line of Pennsylvania Traffic Route No. 8, at its intersection with
McFann Road (T-485); thence by the center line of McFann Road North
80 degrees 24' West, a distance of 221.05 feet; thence continuing by the center
line of McFann Road, North 81 degrees 11'20" West a distance of 465 feet to a
point; thence continuing by the center line of said road North 81 degrees 28'
West, a distance of 266 feet to a point; thence North 08 degrees 32' East a
distance, of 16.50 feet to a point on the North right of way line of McFann Road
(T-485), being the place of beginning and being the Southeast corner of the
tract herein described; thence by the North right of way line of McFann Road
North 81 degrees 28' West, a distance of 800.0 feet to a point on line of lands
of Sarah J. Ferree and Roy E. Ferree, her husband; thence continuing by the same
the following courses and distances; North 8 degrees 32' East, a distance of 550
feet to a point: South 81 degrees 28' East a distance of 800 feet to a point
South 8 degrees 32' West, a distance of 550 feet to a point on the North right
of way line of McFann Road, the place of beginning. And containing 10.10 acres
as per plot and survey of Lucas Engineering Company under date of January, 1966.

Being designated as Tax Parcel No. 230-2F92-14G in the Tax Assessment Office of
Butler County. Pennsylvania.

PENNSYLVANIA

PREMISES B:

All that certain lot or piece of ground situate in the Township of Middlesex,
County of Butler and Commonwealth of Pennsylvania, bounded and described as
follows:

Beginning at a point, which point is the Southeast corner of the tract herein
described and which said beginning point is determined as follows: Beginning at
the center line of Pennsylvania Traffic Route No. 8, at its intersection with
McFann Road (T-485); thence by the center line of McFann Road, North 80 degrees
24' West a distance of 221.05 feet; thence continuing by the center line of
McFann Road, North 81 degrees 11' 20" West a distance of 325 feet to a point;
thence continuing by the centerline of McFann Road North 80 degrees 43' 37" West
a distance of 138.48 feet to a point; thence continuing by the center line of
said road, North 81 degrees 28' West a distance of 50.22 feet to a point; thence
North 3 degrees 13' East a distance of 16.57 feet to a point on the North right
of way line of McFann Road (T-485), being the place of beginning and being the
Southeast corner of the tract herein described; thence by the North right of way
line of McFann Road, North 81 degrees 28' West a distance of 214.24 feet to a
point on line of other lands of the party of the second part herein; thence
continuing by the same and by other lands of the parties of the first part
herein the following courses and distances: North 8 degrees 32' East a distance
of 550 feet to a point; South 81 degrees 28' East a distance of 163.06 feet to a
point; South 3 degrees 13' West 552.38 feet to a point on the North right of way
line of McFann Road, the place of beginning. Containing 2.38 acres more or less.

Being designated as Tax Parcel No. 230-2F92-14K in the Tax Assessment Office of
Butler County, Pennsylvania.

                EXHIBIT A TO PLY GEM AMENDED & RESTATED LEASE - 9

<PAGE>

PENNSYLVANIA

PREMISES C:

All that certain lot or piece of ground situate in the Township of Middlesex,
County of Butler and Commonwealth of Pennsylvania, bounded and described as
follows:

Beginning at a point, said point being the Southwest corner of property conveyed
to Napco. Inc, in Deed Book Volume 879, page 6, dated July 13, 1967; thence
along line of Napco, Inc. North 8 degrees 32' East 550.00 feet to a point on
lands of R. Ferree; thence along lands of R. Ferree North 81 degrees 28' West
15.00 feet to a point: thence along lands of R. Ferree South 8 degrees 32' West
556.07 feet to a point on the North right of way line of Township Road, T-485,
McFann Road; thence along North right of way line of T-485, McFann Road North
76 degrees 30' East 16.18 feet to a point the place of beginning. Containing .19
of an acre as per survey of Lucas Engineering Co. & Associates, dated September
22, 1972.

Being designated as Tax Parcel No. 230-2F92-14M in the Tax Assessment Office of
Butler County, Pennsylvania.

BEING as to Premises "A", the same premises which John M, Wolf and Gene G, Wolf,
husband and wife by Deed dated 7/13/1967 and recorded 7/17/1967 in Butler County
in Deed Book 879 page 6 granted and conveyed unto National Aluminum Products
Company, a Pennsylvania corporation, in fee, and the said National Aluminum
Parls Co. and National Amodizing Products Company and Napco Inc., by merger into
National Aluminum Products Co., which name is changed to Napco, Incorporated, a
Pennsylvania corporation.

BEING as to Premises "B", the same premises which Sarah J. Ferree and Roy E.
Ferree, wife and husband by Deed dated 8/6/1970 and recorded 8/30/1970 in Butler
County in Record Book 922 page 663 granted and conveyed unto National Aluminum
Products Co., a Pennsylvania corporation, and the said National Aluminum Parts
Co. and National Amodizing Products Company and Napco Inc., by merger into
National Aluminum Products Co., which name is changed to Napco, Incorporated, a
Pennsylvania a corporation.

BEING as to Premises "C". the same premises which Sarah J. Ferree and Roy E.
Ferree, wife and husband by Deed dated 10/6/1972 and recorded 10/19/1972 in
Record Book 958 page 363 granted and conveyed unto Napco, Incorporated, a
Pennsylvania corporation.

               EXHIBIT A TO PLY GEM AMENDED & RESTATED LEASE - 10

<PAGE>

                                                                       EXHIBIT B

                             MACHINERY AND EQUIPMENT

All fixtures, machinery, apparatus, equipment, fittings and appliances of every
kind and nature whatsoever now or hereafter affixed or attached to or installed
in any of the Leased Premises (except as hereafter provided), including all
electrical, anti-pollution, heating lighting (including hanging fluorescent
lighting), incinerating, power, air cooling, air conditioning, humidification,
sprinkling, plumbing, lifting, cleaning, fire prevention, fire extinguishing and
ventilating systems devices and machinery and all engines, pipes, pumps, tanks
(including exchange tanks and fuel storage tanks), motors, conduits, ducts,
steam circulation coils, blowers, steam lines, compressors, oil burners,
boilers, doors, windows, loading platforms, lavatory facilities, stairwells,
fencing (including cyclone fencing), passenger and freight elevators, overhead
cranes and garage units, together with all additions thereto, substitutions
therefor and replacements thereof required or permitted by this Lease, but
excluding all Tenant's Equipment.

                EXHIBIT B TO PLY GEM AMENDED & RESTATED LEASE - 1

<PAGE>
                                                                       EXHIBIT C

                             PERMITTED ENCUMBRANCES

ROCKY MOUNT, VIRGINIA
---------------------

1. Real estate taxes and assessments for the year 2004 and subsequent years, a
lien not yet due and payable.

2. Easement granted to Appalachian Electric Power Company dated March 28, 1945
recorded in Deed Book 103, page 366.

3. Easement granted to Appalachian Electric Power Company dated February 9,
1954 recorded in Deed Book 127, page 442.

4. Easement granted to the Town of Rocky Mount, Virginia dated November 15,
1966 recorded in Deed Book 234, Page 186.

5. Easement granted to the Commonwealth of Virginia dated February 6, 1969
recorded in Deed Book 253, Page 58.

6. Easement granted to the Town of Rocky Mount dated August 22, 1973
recorded in Deed Book 291, Page 362.

7. Easement granted to Appalachian Power Company dated November 26, 1979
recorded in Deed Book 356, page 936.

8. Easement granted to Appalachian Power Company dated October 21, 1987 in Deed
Book 424, Page 785.

9. Easement granted to Appalachian Power Company dated March 30, 1990 recorded
in Deed Book 467, Page 1294.

10. Easement granted to Appalachian Power Company dated July 20, 1989 recorded
in Deed Book 463, Page 143.

11. Easement granted to Appalachian Power Company dated March 21, 1995 recorded
in Deed Book 569, Page 528.

12. Notice of Use Limitations made by MW Manufacturers, Inc. dated April 19,
2002 in Deed Book 739, Page 1765.

<PAGE>
                                                                       EXHIBIT C

YORK, NEBRASKA
--------------

1. Real Estate taxes and assessments for the year 2004 and subsequent years, a
lien not yet due and payable.

2. Easement to Electric Lines to Consumers Public Power District recorded
September 18, 1953 in Book 144, Page 321.

3. Easements and restrictions reserved and shown in the Plat and Dedication of
Alcan Subdivision recorded August 29, 1990 in Book 165, Page 585; and Replat of
Block 1, Alcan Subdivision recorded September 24, 1998 in Book 179, Page 200.

4. Limitations to Ingress and Egress as set forth in Return of Appraisers
recorded November 1, 1995 in Book 36, Page 528.

5. Rights, if any, of the railroad company servicing the railroad spur tract #25
located on the subject premises, in and to the ties, rails and other properties
constituting said railroad spur tract #25 or in and to the use thereof, and also
rights of others thereto entitled in and to the use thereof.

6. Subject property chain link fence encroachment onto City right of way,
highway right of way and adjoining property as shown on ALTA/ACSM Survey
prepared by Bock and Clark's National Surveyors Network dated January 23, 2004,
Project 20040011-4 (the "Survey").

7. Encroachment of shed onto building setback as shown on the Survey.

8. Encroachment of adjoining property drive onto subject premises as shown on
the Survey.

<PAGE>
                                                                     EXHIBIT C
MARTINSBURG, WEST VIRGINIA

1. Real estate taxes and assessments for the year 2005 and subsequent years, a
lien not yet due and payable.

2. Easement granted to Shenandoah Gas Co. by instrument dated February 24, 1955
recorded in Deed Book 199, Page 202.

3. Terms and conditions contained in deed dated February 17, 1987 from The
Baltimore and Ohio Railroad Company to Variform, Inc. recorded in Deed Book
413, Page 424.

4. Gas lines as shown on plat by P.C. DiMagno, Engineers-Surveyors, dated
November 4, 1985 and set forth in Surveyor's Report P.C. DiMagno dated November
4, 1985 (the "DiMagno Survey").

5. Easement granted to Potomac Edison Company by instrument dated October 20,
1986 recorded in Deed Book 408, Page 27.

6. Gas lines, water lines and power lines as shown on DiMagno Survey.

7. Easement granted to Shenandoah Gas Co. by instrument dated February 22, 1989
recorded in Deed Book 445, Page 611.

8. Easements granted to Shenandoah Gas Co. by instruments dated June 15, 1995
and June 5, 1995 recorded in Deed Book 554, Page 66 and 69.

9. Easements granted to Shenandoah Gas Co. by instruments dated July 21, 1994
recorded respectively in Deed Book 558, Page 291 and 293.

10. Easement granted to E.D. Rauch by instrument dated December 10, 1909
recorded in Deed Book 121, Page 303.

11. Easement granted to Shenandoah Gas Co. by instrument dated July 8, 1957
recorded in Deed Book 207, page 461.

12. Easement granted to Continental Clay Products Company, a corporation by
instrument dated February 21, 1967 recorded in Deed Book 232, Page 484.

13. Rights of others thereto entitled in and to the continued uninterrupted
flow of Evans Runs, as shown on DiMagno Survey.

APPLICABLE TO WATER LINE EASEMENT ONLY:

14. Terms and conditions of right of way and easement agreement between John J.
    Skelly et al t/d/b/a Asphalt Products Company and spouses, and Variform,
    Inc. dated July 8, 1986 and recorded in Deed Book 404, Page 183.

15. Waiver and release of damages set forth in deed dated March 31, 1969 from
Martin Marietta Corporation to John J. Skelly et al recorded in Deed Book 240,
Page 559.
<PAGE>

                                                                       EXHIBIT C

FAIR BLUFF, NORTH CAROLINA

1. Real estate taxes and assessments for the year 2004 and subsequent years, a
lien not yet due and payable.

2. The effect of a map recorded in Plat Book 40 at Page 18.

                EXHIBIT C TO PLY GEM AMENDED & RESTATED LEASE - 4

<PAGE>
                                                                   EXHIBIT C
PERRYSBURG, OHIO

1. Real estate taxes and assessments for the year 2004 and subsequent, a
lien not yet due and payable.

2. Easement granted to The Ohio Fuel Company by instrument recorded in Volume
310 of Deeds, page 55; assigned of record to Columbia Gas of Ohio, Inc. by
instrument recorded in Volume 426 of Deeds, page 162.

3. Easement Agreement by instrument recorded in Volume 508 of Deeds, page 34;
assigned of record to The Wood County Regional Water and Sewer District by
instrument recorded in Volume 683 of Deeds, page 935. (affects Parcel I)

4. Easement granted to the Board of Wood County Commissioners, Wood County,
Ohio, by instrument recorded in Volume 509 of Deeds, Page 443; assigned of
record to The Wood County Regional Water and Sewer District by
instrument recorded in Volume 683 of Deeds, page 935. (affects Parcel I)

5. Right of Way granted to Columbia Gas of Ohio, Inc. by instrument recorded
in Volume 597 of Deeds, page 613. (affects Parcel I)

6. Easement granted to The Toledo Edison Company by instrument recorded in
Volume 597 of Deeds, page 740. (affects Parcel I)

7. Easement granted to The Toledo Edison Company by instrument recorded in
Volume 600 of Deeds, page 236. (affects Parcel II)

8. Restriction in Deed to PlyGem Industries recorded in Volume 711 of Deeds,
Page 111 as follows: The above described property cannot be sold separately and
independently of property, Wood County Recorder's Office, Volume 616, Page 256,
without prior Wood County Planning Commission approval. (affects Parcel II)

9. Encroachment of building into 40 foot building setback at southerly property
line, and encroachment of building into 60 foot building setback at
southeasterly property line as shown on survey by Bock & Clark Corporation,
Project No. 1200400042, dated January 22, 2004. (affects Parcel I)

<PAGE>
                                                                       EXHIBIT C

KEARNEY, MISSOURI
-----------------

1. Real Estate taxes and assessments for the year 2004 and subsequent years, a
lien not yet due and payable.

2. An easement for sewer recorded as Document No. F2158 in Book 1602 at Page 630
of Official Records.

3. An easement for water line in document recorded as Document No. L48178 in
Book 2162 at Page 900 of Official Records.

4. An easement for right of way granted to Platte-Clay Electric Cooperative,
Inc. in document recorded as Document No. P42772 in Book 2984 at Page 343 of
Official Records.

5. Rights, if any, claimed by owner of property adjoining on the southeast to
that part of subject premises enclosed within a chain link fence as shown on
Survey dated January 23, 2004, last revised February 2, 2004 by Whitehead
Consultants, Inc. and Bock & Clark Corporation as Network Project No.
20040011-8 (the "Survey").

6. Encroachment by the building, refrigeration machine and pad over a portion
of the premises adjoining on the east as shown on the Survey.

<PAGE>

                                                                       EXHIBIT C

VALENCIA, PENNSYLVANIA

1. Real estate taxes and assessments for the year 2005 and subsequent years, a
lien not yet due and payable.

2. Right of way granted to T.W. Phillips Gas and Oil Company dated February 18,
1987 and recorded in Record Book 1359, page 834.

3. Matters disclosed on ALTA/ACSM Land Title Survey dated January 19, 2004,
revised February 11, 2004 prepared by Book & Clark Corporation:

      a. Gap between Premises A and Premises B of variable distances

      b. Subject property's building violates current building line requirement
      by 43.93' and 25.33'

      c. side and rear setback lines

      d. Discrepancies of an overlap in boundaries of subject property and
      adjoiner's property along eastern, western and southern portions of
      Property

      e. stream traverses subject property and adjoiner's property at southwest
      Corner

      f. fence traverses subject property and adjoiner's property at southwest
      corner; and

      g. utility poles shown.

                EXHIBIT C TO PLY GEM AMENDED & RESTATED LEASE - 7

<PAGE>

                                                                       EXHIBIT D
                               BASIC RENT PAYMENTS

      1. Basic Rent. (a) Initial Term. Subject to the adjustments provided for
in Paragraphs 2, 3 and 4 below, Basic Rent payable in respect of the Initial
Term shall be $2,980,575 per annum, payable quarterly in advance on each Basic
Rent Payment Date, in equal installments of $745,143.75.

            (b) Renewal Term. Annual Basic Rent for the first year of each
Renewal Term shall be an amount equal to the Fair Market Rental Value as of the
first day of the applicable Renewal Term, as determined in accordance with
Paragraph 29 of this Lease, shall be payable in equal quarterly installments and
shall be subject to the adjustments provided for in Paragraphs 2, 3 and 4 below.

      2. CPI Adjustments to Basic Rent. The Basic Rent shall be subject to
adjustment, in the manner hereinafter set forth for increases in the index known
as United States Department of Labor, Bureau of Labor Statistics, Consumer Price
Index. All Urban Consumers. United States City Average. All Items, (1982-84=100)
("CPI") or the successor index that most closely approximates the CPI. If the
CPI shall be discontinued with no successor or comparable successor index,
Landlord and Tenant shall attempt to agree upon a substitute index or formula,
but if they are unable to so agree, then the matter shall be determined by
arbitration in accordance with the rules of the American Arbitration Association
then prevailing in New York City. Any decision or award resulting from such
arbitration shall be final and binding upon Landlord and Tenant and judgment
thereon may be entered in any court of competent jurisdiction. In no event will
the Basic Rent as adjusted by the CPI adjustment be less than the Basic Rent in
effect for the one (1) year period immediately preceding such adjustment.

      3. Effective Dates of CPI Adjustments. Basic Rent shall not be adjusted to
reflect changes in the CPI until September 25, 2005 (the "First Basic Rent
Adjustment Date"). As of the First Basic Rent Adjustment Date and on each
anniversary of the First Basic Rent Adjustment Date thereafter during the
Initial Term and as of the first (1st) anniversary of the first full Basic Rent
payment date of each exercised Renewal Term (each, a "First Basic Rent Renewal
Adjustment Date") and on each anniversary of the First Basic Rent Renewal
Adjustment Date thereafter during such Renewal Term (each such date being
hereinafter referred to as a "Basic Rent Adjustment Date"). Basic Rent shall be
adjusted to reflect increases in the CPI over the CPI used to calculate the most
recent increase in Basic Rent (or, with respect to the first Basic Rent
Adjustment Date during the Initial Term or any Renewal Term, such increases
shall he measured against the CPI as of the first payment date during the
Initial Term or such Renewal Term, as the case may be).

      4. Method of Adjustment for CPI Adjustment.

            (a) As of each Basic Rent Adjustment Date when the average CPI
determined in clause (i) below exceeds the Beginning CPI (as defined in this
Paragraph 4(a)), the Basic Rent in effect immediately prior to the applicable
Basic Rent Adjustment Date shall be multiplied by a fraction, the numerator of
which shall be the difference between (i) the average CPI for the three (3) most
recent calendar months (the "Prior Months") ending prior to such Basic Rent
Adjustment Date for which the CPI has been published on or before the
forty-fifth (45th) day preceding such Basic Rent Adjustment Date and (ii) the
Beginning CPI, and the denominator of which shall be the Beginning CPI. The
product of such multiplication shall be added to the Basic Rent in effect
immediately prior to such Basic Rent Adjustment Date. As used herein. "Beginning
CPI" shall mean the average CPI for the three (3) calendar months corresponding
to the Prior Months, but occurring immediately prior to the effective date of
the

                 EXHIBIT D TO PLY GEM AMENDED & RESTATED LEASE - 1

<PAGE>

most recent increase in Basic Rent (or, with respect to the first Basic Rent
Adjustment Date during the Initial Term or any Renewal Term, occurring
immediately prior to the first payment date during the Initial Term or such
Renewal Term, as the case may be). If the average CPI determined in clause (i)
is the same or less than the Beginning CPI, the Basic Rent will remain the same
for the ensuing one (1) year period and the Beginning CPI for the adjustment
(but not any subsequent adjustment) occurring at the end of such ensuing one (1)
year period shall continue to be such Beginning CPI. By way of example and for
purposes of clarification, if Basic Rent was $1 and CPI increased by -5%, 3%,
and 2%, respectively, over three years, then annual rent for those three years
would be $1, $1 and $1.02, respectively. As a further example, if Basic Rent was
$1 and CPI increased by -5%, 6%, and 2%, respectively, over three years, then
annual rent for those three years would be $1, $1.007, and $1.02714,
respectively.

            (b) Effective as of a given Basic Rent Adjustment Date, Basic Rent
payable under this Lease until the next succeeding Basic Rent Adjustment Date
shall be the Basic Rent in effect after the adjustment provided for as of such
Basic Rent Adjustment Date.

            (c) Notice of the new annual Basic Rent shall be delivered to Tenant
on or before the tenth (10th) day preceding each Basic Rent Adjustment Date, but
any failure to do so by Landlord shall not be or be deemed to be a waiver by
Landlord of Landlord's rights to collect such sums. Tenant shall pay to
Landlord, within ten (10) Business Days after a notice of the new annual Basic
Rent is delivered to Tenant all amounts due from Tenant, but unpaid, because the
stated amount as set forth above was not delivered to Tenant at least ten (10)
Business Days preceding the Basic Rent Adjustment Date in question.

                EXHIBIT D TO PLY GEM AMENDED & RESTATED LEASE - 2

<PAGE>

                                                                       EXHIBIT E
                                ACQUISITION COST

<TABLE>
<S>                                                      <C>
Kearney, MO                                              $ 5,095,135.00
Fair Bluff, NC                                           $ 1,503,686.00
York, NE                                                 $ 1,864,074.00
Toledo, OH                                               $ 6,685,000.00
Valencia, PA                                             $ 3,728,148.00
Rocky Mount, VA                                          $ 5,977,464.00
Martinsburg, WV                                          $ 5,716,493.00
                                                         --------------
                                                         $30,570,000.00
                                                         ==============
</TABLE>

                EXHIBIT E TO PLY GEM AMENDED & RESTATED LEASE -1

<PAGE>

                                                                       EXHIBIT F

                  PREMISES PERCENTAGE ALLOCATION OF BASIC RENT

<TABLE>
<S>                                                              <C>
Kearney, MO                                                       16.67%
Fair Bluff, NC                                                     4.92%
York,NE                                                            6.10%
Toledo, OH                                                        21.87%
Valencia, PA                                                      12.20%
Rocky Mount, VA                                                   19.55%
Martinsburg, WV                                                   18.70%
                                                                 ------
                                                                 100.00%
                                                                 ======
</TABLE>

If any Related Premises ceases to be subject to this lease, the percentage shown
on this Exhibit F for each of the Related Premises which remains subject to this
Lease shall be adjusted proportionately so that the total of such percentages
shall be 100%.

                EXHIBIT F TO PLY GEM AMENDED & RESTATED LEASE - 1
<PAGE>
                                           LOAN NUMBER: ________________________

                                                                     EXHIBIT G-1

                      FORM OF SUBORDINATION, ATTORNMENT AND

                           NON-DISTURBANCE AGREEMENT*

RECORDING REQUESTED BY AND

AFTER RECORDING, RETURN TO:

GMAC Commercial Mortgage Corporation

      200 Witmer Road

      Horsham, PA 19044-8015

Attn: Servicing - Executive Vice President

      ---------------------------------------------------------------------
                SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE

                         SUBORDINATION, NON-DISTURBANCE

                            AND ATTORNMENT AGREEMENT

      This Subordination, Non-Disturbance and Attornment Agreement
("AGREEMENT"), is made as of this _______ day of _____________________________,
200__ among GMAC COMMERCIAL MORTGAGE CORPORATION, a California corporation
("LENDER"), _________________________________________________________,
a _________________("LANDLORD"), and _____________________________________,
a _____________________________________("TENANT").

                                   BACKGROUND

      A. Lender has agreed to make a loan to Landlord in the original principal
amount $_____________________("LOAN"), which will be secured by a mortgage, deed
of trust or similar

*     To be in recordable form.

               EXHIBIT G-1 TO PLY GEM AMENDED & RESTATED LEASE - 1

<PAGE>

                                           LOAN NUMBER: ________________________

                                                                     EXHIBIT G-1

security instrument (either, "SECURITY INSTRUMENT") on Landlord's property
described more particularly on Exhibit A attached hereto ("PROPERTY").

      B. Tenant is the present lessee under that certain lease agreement between
Landlord and Tenant dated _____________________________, as thereafter modified
and supplemented ("LEASE"), demising a portion of the Property described more
particularly in the Lease ("LEASED SPACE").

      C. A requirement of the Loan is that Tenant's Lease be subordinated to the
Security Instrument. Landlord has requested Tenant to so subordinate the Lease
in exchange for Lender's agreement not to disturb Tenant's possession of the
Leased Space upon the conditions set forth in this Agreement.

      NOW, THEREFORE, in consideration of the mutual promises of this Agreement,
and intending to be legally bound hereby, the parties hereto agree as follows:

      1. Subordination. Tenant agrees that the Lease, and all estates, options
and rights created under the Lease, hereby are subordinated and made subject to
the lien and effect of the Security Instrument, as if the Security Instrument
had been executed and recorded prior to the Lease.

      2. Nondisturbance. Lender agrees that no foreclosure (whether judicial of
nonjudicial), deed-in-lieu of foreclosure, or other sale of the Property in
connection with enforcement of the Security Instrument or otherwise in
satisfaction of the Loan shall operate to terminate the Lease or Tenant's rights
thereunder, except as set forth in Section 3 below provided, however, that (a)
the term of the Lease has commenced, (b) Tenant is in possession of the Leased
Space, and (c) the Lease is in full force and effect and no uncured Event of
Default (as defined therein) exists, under the Lease, taking into account, with
respect to a Permitted Leasehold Mortgagee (as defined in the Lease), the period
for a Permitted Leasehold Mortgagee to exercise its cure rights with respect to
such default under Section 35 of the Lease.

      3. Attornment. Tenant agrees to attorn to and recognize as its landlord
under the Lease each party acquiring legal title to the Property by foreclosure
(whether judicial or nonjudicial) of the Security Instrument, deed-in-lieu of
foreclosure, or other sale in connection with enforcement of the Security
Instrument or otherwise in satisfaction of the Loan ("Successor Owner"),
Provided that the conditions set forth in Section 2 above are met at the time
Successor Owner becomes owner of the Property, Successor Owner shall perform all
obligations of the landlord under the Lease arising from and after the date
title to the Property is transferred to Successor Owner. In no event, however,
will any Successor Owner be: (a) liable for any default, act or omission of any
prior landlord under the Lease; (b) subject to any offset or defense which
Tenant may have against any prior landlord under the Lease; (c) bound by any
payment of rent

              EXHIBIT G-1 TO PLY GEM AMENDED & RESTATED LEASE - 2

<PAGE>

                                           LOAN NUMBER: ________________________

                                                                     EXHIBIT G-1

or additional rent made by Tenant to Landlord more than 30 days in advance of
its due date under the Lease: (d) bound by any modification or supplement to the
Lease, or waiver of Lease terms, made without Lender's written consent thereto;
(c) liable for the return of any security deposit or other prepaid charge paid
by Tenant under the Lease, except to the extent such amounts were actually
received by Lender; (f) liable or bound by any right of first refusal or option
to purchase all or any portion of the Property except for any such right or
option as expressly set forth in the Lease; or (g) liable for construction or
completion of any improvements to the Property or as required under the Lease
for Tenant's use and occupancy (whenever arising). Although the foregoing
provisions of this Agreement are self-operative, Tenant agrees to execute and
deliver to Lender or any Successor Owner such further instruments as Lender or a
Successor Owner may from time to time reasonably request in order to confirm
this Agreement. If any liability of Successor Owner does arise pursuant to this
Agreement, such liability shall be limited to Successor Owner's interest in the
Property including any casualty insurance proceeds and condemnation awards
actually paid to Lender to the extent that Lender was required to make such
proceeds available to Tenant under the Loan Documents.

      4. Rent Payments; Notice to Tenant Regarding Rent Payments. Tenant agrees
not to pay rent more than one (1) month in advance unless otherwise specified in
the Lease. After notice is given to Tenant by Lender that Landlord is in default
under the Security Instrument and that the rentals under the Lease are to be
paid to Lender directly pursuant to the assignment of leases and rents granted
by Landlord to Lender in connection therewith. Tenant shall thereafter pay to
Lender all rent and all other amounts due or to become due to Landlord under the
Lease. Landlord hereby expressly authorizes Tenant to make such payments to
Lender upon reliance on Lender's written notice (without any inquiry into the
factual basis for such notice or any prior notice to or consent from Landlord)
and hereby releases Tenant from all liability to Landlord in connection with
Tenant's compliance with Lender's written instructions.

      5. Lender Opportunity to Cure Landlord Defaults. Tenant agrees that, until
the Security Instrument is released by Lender, it will not exercise any remedies
under the Lease following a Landlord default without having first given to
Lender (a) written notice of the alleged Landlord default and (b) the
opportunity to cure such default within the longer of (i) 30 days after the cure
period provided under the Lease to Landlord, (ii) 30 days from Landlord's
receipt of Tenant's notice to Lender of a Landlord default, or (iii) if the cure
of such default requires possession of the Property, 30 days after Lender has
obtained possession of the Property, provided that,in each case, if such
default cannot reasonably be cured within such 30-day period and Lender has
diligently commenced to cure such default promptly within the time contemplated
by this Agreement, such 30-day period shall be extended for so long as it shall
require Lender, in the exercise of due diligence, to cure such default, but,
unless the parties otherwise agree, in no event shall the entire cure period be
more than 120 days. Tenant acknowledges that Lender is not obligated to cure any
Landlord default, but if Lender elects to do so, Tenant agrees to accept cure by
Lender as that of Landlord under the Lease and will not exercise any right or
remedy under the Lease for a Landlord default. Performance rendered by Lender on
Landlord's behalf is without prejudice to Lender's rights against Landlord under
the Security Instrument or any other documents executed by Landlord in favor of
Lender in connection with the Loan.

               EXHIBIT G-1 TO PLY GEM AMENDED & RESTATED LEASE - 3

<PAGE>

                                           LOAN NUMBER: ________________________

                                                                     EXHIBIT G-1

      6. Miscellaneous.

            (a) Notices. All notices and other communications under this
Agreement are to be in writing and addressed as set forth below such party's
signature hereto. Default or demand notices shall be deemed to have been duly
given upon the earlier of: (i) actual receipt; (ii) one (1) business day after
having been timely deposited for overnight delivery, fee prepaid, with a
reputable overnight courier service, having a reliable tracking system; (iii)
one (1) business day after having been sent by telecopier (with answer back
acknowledged) provided an additional notice is given pursuant to (ii); or (iv)
three (3) business days after having been deposited in any post office or mail
depository regularly maintained by the U.S. Postal Service and sent by certified
mail, postage prepaid, return receipt requested, and in the case of clause (ii)
and (iv) irrespective of whether delivery is accepted. A new address for notice
may be and established by written notice to the other parties: provided,
however, that no address change will be effective until written notice thereof
actually is received by the party to whom such address change is sent.

            (b) Entire Agreement; Modification. This Agreement is the entire
agreement between the parties hereto with respect if the subject matter hereof,
and supersedes and replaces all prior discussions, representations,
communications and agreements (oral or written). This Agreement shall not be
modified, supplemented, or terminated, nor any provision hereof waived, except
by a written instrument signed by the party against whom enforcement thereof is
sought, and then only to the extent expressly set forth in such writing.

            (c) Binding Effect; Joint and Several Obligations. This Agreement is
binding upon and inures to the benefit of the parties hereto and their
respective heirs, executors, legal representatives, successors, and assigns,
whether by voluntary action of the parties or by operation of law. No Indemnitor
may delegate or transfer its obligations under this Agreement.

            (d) Unenforceable Provisions. Any provision of this Agreement which
is determined by a court of competent jurisdiction or government body to be
invalid, unenforceable or illegal shall be ineffective only to the extent of
such determination and shall not affect the validity, enforceability or
legality of any other provision, nor shall such determination apply in any
circumstance or to any party not controlled by such determination.

            (e) Duplicate Originals; Counterparts. This Agreement may be
executed in any number of duplicate originals, and each duplicate original shall
be deemed to be an original. This Agreement (and each duplicate original) also
may be executed in any number of counterparts, each of which shall be deemed an
original and all of which together constitute a fully executed Agreement even
though all signatures do not appear on the same document.

                EXHIBIT G-1 TO PLY GEM AMENDED & RESTATED LEASE - 4

<PAGE>

                                           LOAN NUMBER: ________________________

                                                                     EXHIBIT G-1

            (f) Construction of Certain Terms. Defined terms used in this
Agreement may be used interchangeably in singular or plural form, and pronouns
shall be construed to cover all genders. Article and section headings are for
convenience only and shall not be used in interpretation of this Agreement. The
words "herein," "hereof" and "hereunder" and other words of similar import refer
to this Agreement as a whole and not to any particular section, paragraph or
other subdivision; and the word "section" refers to the entire section and not
to any particular subsection, paragraph of other subdivision; and "AGREEMENT"
and each of the Loan Documents referred to herein mean the agreement as
originally executed and as hereafter modified, supplemented, extended,
consolidated, or restated from time to time.

            (g) Governing Law. This Agreement shall be interpreted and enforced
according to the laws of the State where the Property is located (excluding any
choice of law rules that may direct the application of the laws of another
jurisdiction).

      (h) Consent to Jurisdiction. Each party hereto irrevocably consents and
submits to the exclusive jurisdiction and venue of any state or federal court
sitting in the county and state where the Property is located with respect to
any legal action arising with respect to this Agreement and waives all
objections which it may have to such jurisdiction and venue.

      (i) WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH
PARTY HERETO WAIVES AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY
ISSUE ARISING OUT OF THIS AGREEMENT.

          [Remainder of page is blank; signatures appear on next page.]

              EXHIBIT G-1 TO PLY GEM AMENDED & RESTATED LEASE - 5

<PAGE>

                                                       LOAN NUMBER: ____________

                                                                     EXHIBIT G-1

      IN WITNESS WHEREOF, this Agreement is executed this __________________ day
of __________________,2004.

      LENDER:                                 TENANT:

      GMAC Commercial Mortgage Corporation    _________________________________

                                              [insert Tenant's name]

      By:________________________________     By:______________________________

      Name:                                   Name:

Title:                                      Title:

LENDER NOTICE ADDRESS:                      TENANT NOTICE ADDRESS:

GMAC Commercial Mortgage Corporation        ______________________________

200 Witmer Road                             ______________________________

Horsham, PA 19044                           ______________________________

Attn: Servicing - Executive Vice President Attn:

                  [Execution by Landlord appears on next page.]

-----------
[insert Landlord's name]

     SIGNATURE PAGE TO EXHIBIT G-1 TO PLY GEM AMENDED & RESTATED LEASE - 6

<PAGE>

                                           LOAN NUMBER: ________________________

                                                                     EXHIBIT G-1

      By:_________________________________________

      Name:

Title:

LANDLORD NOTICE ADDRESS:

__________________________
__________________________
__________________________

Attn:

      Attach:     Exhibit A - Legal Description of the Property

      SIGNATURE PAGE TO EXHIBIT G-1 TO PLY GEM AMENDED & RESTATED LEASE - 7

<PAGE>

                                           LOAN NUMBER: _______________________

                                                                     EXHIBIT G-1

Notary Acknowledgement for Lender:

      State of _________________________________________     :

                                                       :ss

      County of _______________________________________:

            On this, the ______ day of _____________________, 200_____, before
      me, the undersigned Notary Public, personally appeared
      ________________________ known to me (or satisfactorily proven) to be the
      person whose name is subscribed to the within instrument, and who
      acknowledged to me that he/she is an officer of GMAC Commercial Mortgage
      Corporation in the capacity stated and that he/she executed the within
      instrument in such capacity for the purposes therein contained.

        IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

                                                        ________________________

                                                        Notary Public

Notary Acknowledgement for Tenant:

      State of ____________________________________  :

                                                   :ss

      County of ___________________________________:

            On this, the _____ day of _______________, 200__, before me, the
      undersigned Notary Public, personally appeared________________________
      known to me (or satisfactorily proven) to be the person whose name is
      subscribed to the within instrument and who acknowledged to me that he/she
      is an officer of the Tenant in the capacity stated and that he/she
      executed the within instrument in such capacity for the purposes therein
      contained.

SIGNATURE PAGE TO EXHIBIT G-1 TO PLY GEM AMENDED & RESTATED LEASE - 8

<PAGE>

                                           LOAN NUMBER: ________________________

                                                                     EXHIBIT G-1

       IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

                                                        _____________________

                                                        Notary Public

Notary Acknowledgement for Landlord:

    State of ________________________________________   :

                                                     :ss

    County of _______________________________________:

          On this, the ______ day of ______________________, 200__, before me,
    the undersigned Notary Public, personally appeared _____________________
    known to me (or satisfactorily proven) to be the person whose name is
    subscribed to the within instrument and who acknowledged to me that he/she
    is an officer of the Landlord in the capacity stated and that he/she
    executed the within instrument in such capacity for the purposes therein
    contained.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

                                        ________________________________________

                                        Notary                            Public

SIGNATURE PAGE TO EXHIBIT G-1 TO PLY GEM AMENDED & RESTATED LEASE - 9

<PAGE>

                                                      LOAN NUMBER: _____________

                                                                     EXHIBIT G-1

                                    EXHIBIT A

                         (Legal Description of Property)

        EXHIBIT A TO EXHIBIT G-1 TO PLY GEM AMENDED & RESTATED LEASE - 1

<PAGE>
                                                                     EXHIBIT G-2

                          TENANT ESTOPPEL CERTIFICATE
                          ___________________________

__ TENANT NAME: _______________________________________________________________

__ LANDLORD NAME: _____________________________________________________________

__ MORTGAGED PROPERTY: ________________________________________________________

     TENANT'S LEASED SPACE IN MORTGAGED PROPERTY:

__ Address/Suite# _____________________________________________________________

__ Total Square Footage: _______________ Description of Operations: ___________

__ ____________________________________________________________________________

     Landlord requests Tenant to complete this Certificate for the benefit of
GMAC Commercial Mortgage Corporation (together with its successors and assigns,
"LENDER") in connection with a pending loan ("LOAN") which Lender may make to
Landlord. The Loan will be secured by a mortgage or deed of trust on the
Mortgaged Property.

                       TENANT STATEMENTS ABOUT ITS LEASE
                       _________________________________

     Unless otherwise stated by Tenant in Item 17 below, Tenant confirms to
Lender:

1.   An accurate and complete copy of Tenant's lease agreement ("LEASE") is
     attached as Schedule A. The Lease is in full force and effect, and no other
     agreements (verbal or written) modify or supplement the Lease or Tenant's
     rights with respect to the Leased Space. Tenant has not assigned, sublet,
     encumbered, or otherwise transferred all or any part of the Leased Space or
     the Lease. To the best of Tenant's knowledge, no rental or leasing
     commission remain unpaid with respect to the Lease.

<PAGE>

                                                                     EXHIBIT G-2

2.    Tenant currently (a) is the sole tenant and occupant of the Leased Space,
      (b) has unconditionally accepted full possession of the Leased Space, and
      (c) is open for business and operating from the Leased Space. All tenant
      improvements to be constructed as a condition to the Lease have been
      completed to Tenant's satisfaction, and no unreimbursed construction or
      fit-up allowances are due to Tenant. No damage to the Leased Space exists
      which has not been repaired to Tenant's satisfaction. All common areas of
      the Mortgaged Property (including, without limitation, parking areas,
      sidewalks, access ways and landscaping) are in compliance with the Lease
      and are satisfactory for Tenant's purposes.

3.    The Lease is [___] or is not [___] guaranteed. A copy of each guaranty is
      attached as Schedule B.

4.    To the best knowledge of Tenant, no default by Landlord or by Tenant
      currently exists under the Lease. To the best knowledge of Tenant, no
      event has occurred which would be a default, if notice had been given or
      applicable grace/cure periods had expired (or both). Tenant has no
      setoffs, credits, claims or defenses to Tenant's obligation to pay rent or
      other charges to be paid under the Lease (including, without limitation,
      common maintenance charges, if any) or to enforcement of the Lease. Tenant
      has not given Landlord any notice of termination of the Lease.

5.    The current lease term began on _________________, and the rent
      commencement date, if different, began on __________________. The current
      lease term ends on _________________. Except as specifically set forth in
      the Lease, Tenant has no option to terminate the Lease prior to such date.

6.    Tenant has the option to extend the term of the Lease for ________ renewal
      periods. Each renewal offers a term of _________ months. Tenant has not
      exercised any renewal option as of the date hereof.

7.    Tenant has none of the following rights: Right to expand the Leased Space;
      right to relocate the Leased Space; right of first refusal (offer) with
      respect to any other space in the Mortgaged Property; or option or right
      of first refusal (offer) to purchase the Mortgaged Property.

8.    Tenant's last payment of base rent in the amount of $______________ was
      paid on ___________________, and Tenant's, last payment of its share of
      common expenses in the amount of $_____________ was paid on
      ___________________. No other advance rent has been paid by Tenant.

               EXHIBIT G-2 TO PLY GEM AMENDED & RESTATED LEASE-2

<PAGE>
                                                                    EXHIBIT G-2

9.    Tenant has paid Landlord a security deposit in the amount of $0.00. No
      portion of the security deposit has been applied by Landlord toward
      Tenant's obligations under the Lease.

10.   All rent-free periods or rent concessions provided under the Lease, if
      any, have expired, and no rent concession will become effective during
      the remainder of the Lease.

11.   No bankruptcy, reorganization, insolvency or similar proceedings under any
      state or federal law has commenced or is currently proceeding in which
      Tenant is the debtor.

12.   Tenant has all licenses and permits which Tenant must have to operate its
      business from the Leased Space, and all are current and have not been
      revoked.

13.   Since taking possession of the Leased Space, Tenant has not received any
      notice that the Leased Space or Tenant's use of the Leased Space violates
      any applicable law, regulation, ordinance or directive of any governmental
      authority or agency or insurance company.

14.   Since taking possession of the Leased Space, Tenant has not stored,
      generated, manufactured, refined, treated, transported, disposed or in any
      way used materials which are considered hazardous substances or wastes
      under applicable environmental laws and regulations (including, without
      limitation, petroleum or petroleum by-products) at the Leased Space or on
      any other part of the Mortgaged Property, except in compliance with the
      requirements of the Lease and applicable law.

15.   Tenant is not identified on 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 any other
      similar list maintained by the Office of Foreign Assets Control pursuant
      to any authorizing United States law, regulation or Executive Order of the
      President of the United States ("OFAC List") nor is Tenant subject to
      trade embargo or economic sanctions pursuant to any authorizing United
      States law, regulation or Executive Order of the President of the United
      States.

16.    Tenant understands that a condition of the Loan may require
       Lender's consent to any future amendment, waiver, expansion or renewal
       (except for expansion or renewal rights, currently permitted to Tenant by
       the express terms of the Lease), and no modification, waiver, expansion
       or renewal made without Leader's written consent will be enforceable
       against Lender.

              EXHIBIT G-2 TO PLY GEM AMENDED & RESTATED LEASE - 3

<PAGE>

                                                                     EXHIBIT G-2

17.   Tenant understands that a condition of the Loan will prohibit Landlord
      from accepting Tenant's rent more than 30 days prior to its due date, and
      no payment of rent by Tenant more than 30 days in advance will be binding
      on Lender.

18.   Listed below (or on Schedule C attached hereto by Tenant) are any
      exceptions asserted by Tenant to the foregoing statements. 1-17. (Lender
      has no obligation to address Tenant's exceptions in connection with the
      Loan):

      __________________________________________________________________________
      __________________________________________________________________________
      __________________________________________________________________________
      __________________________________________________________________________
      __________________________________________________________________________

      BY SIGNING BELOW:

            o     Tenant certifies that all information stated in this
                  Certificate is accurate and correct in all material respects
                  and does not omit any material fact that would make any
                  statement false or misleading and that the undersigned
                  representative is duly authorized to sign this Certificate on
                  Tenant's behalf.

            o     Tenant agrees for a period of thirty (30) days from the date
                  hereof to notify Landlord and Lender in writing of any
                  changes to the statements made by Tenant in this Certification
                  promptly upon Tenant's learning of each such change.

                                     TENANT:

Date:_______________            By:__________________________

                                          Name:

                                          Title:

              EXHIBIT G-2 TO PLY GEM AMENDED & RESTATED LEASE - 4

<PAGE>

                                                                       EXHIBIT H

      INTENTIONALLY OMITTED

               EXHIBIT H TO PLY GEM AMENDED & RESTATED LEASE - 1

<PAGE>

                                                                       EXHIBIT I

                       TENANT'S POST-CLOSING OBLIGATIONS

      Tenant shall conduct the following actions and provide landlord with
written confirmation, satisfactory to Landlord within sixty (60) days of the
Commencement Date that all of the activities listed in Paragraphs 1, 3 and 4
below have been satisfactorily completed, except that with respect to the ALTA
surveys noted in Paragraph 3 below, such ALTA surveys shall be provided to
Landlord within fourteen (14) days, of the Commencement Date. Tenant shall
provide written confirmation, satisfactory to Landlord, within sixty (60) days
of the completion of each activity identified in Paragraph 2 below.

      1.    PREPARATION OF ASBESTOS OPERATION AND MAINTENANCE ("O&M") PLANS

            Within forty-five (45) days of the Commencement Date, Tenant shall
      have prepared an asbestos O&M plan which complies with the requirements of
      29 C.F.R. section.1910.1001 for the following properties:

                  o the Valencia, PA Premises

                  o the Fair Bluff, NC Premises

                  o the Rocky Mount, VA Premises

                  o the Kearney, MO Premises

      The asbestos O&M plan must specifically require that Tenant, and not
      Landlord, be responsible for all obligations relating to the
      identification of asbestos, notification to employees and other
      requirements of 29 C.F.R. section. 1910.1001.

      2.    Remediation/Investigation Issues

      A.    THE ROCKY MOUNT, VA PREMISES

            remediate, or cause to be remediated, the PCP and mineral spirit
      contamination of soil and groundwater (if impacted) to applicable clean up
      standards and to the written approval of the applicable government
      environmental agency.

               EXHIBIT I TO PLY GEM AMENDED & RESTATED LEASE - 1

<PAGE>

                                                                       EXHIBIT I

      B.    VALENELA, PA PREMISES

        If required by applicable law or government agency, investigate the area
        of the former USTs, septic system and historic Spills identified in the
        August 2004 "Environmental Review of PlyGem industries, Inc. and MW
        Manufacturers Inc" prepared by ENVIRON and remediate any contamination
        to applicable cleanup standards and to the written approval of the
        applicable: environmental agency.

      C.    MARTINSBURG, WVA PREMISES

        If required by the West Virginia Department of Environmental
        Protection ("WVDEP"), address any comments from WVDEP to the closure
        report for the used oil AST.

      3.    REGULATORY COMPLIANCE ISSUES

            Within forty-five (45) days of the Commencement Date, Tenant shall
            have addressed and resolved the following regulatory compliance
            issues identified by ENVIRON in their January 2004 and July 2004
            Assessment reports for the following properties:

      A. THE ROCKY MOUNT, VA PREMISES

            41. Inclusion of three (3) 550-gallon aboveground storage tanks
("AST") in the truck maintenance warehouse in the Spill Prevention, Control and
Countermeasures ("SPCC") plan.

            42. Provide secondary containment for the three USTs.

            43. Providing a record of the annual integrity inspection of the
multi-cyclone.

            44. Inclusion of the used oil burner in the truck
maintenance building as an insignificant emissions source.

            45. Written notification from the local publicly owned treatment
works ("POTW") that a permit is no longer required for discharge of industrial
wastes.

            46. Evidence that quarterly visual inspections, of stormwater
discharges are being performed pursuant to the site's Virginia Pollutant
Discharge Elimination System general permit.

                EXHIBIT 1 TO PLY GEM AMENDED & RESTATED LEASE - 2

<PAGE>

                                                                       EXHIBIT I

            47. Evidence that required Tier II reports have been submitted for
2003.

            48. Preparation of a written respiratory protection program as
required by 29 C.F. R. 1910.1200.

      B. THE VALENCIA. PA PREMISES

            49. Update SPCC plan diagram to accurately represent storage
locations.

            50. Evidence that hazardous waste is stored in a containment
building meeting the requirements of 29 C. F. R. section 262.34(a)1(iv).

            51. Removal of approximately 150 empty drums stored on pavement west
of the hazardous waste storage area and approximately 400 drums stored on soil
north of the south wastewater treatment plant.

            52. Evidence that notification, if required, has been made to the
local emergency planning committee and state emergency planning committee of the
presence of sulfuric acid contained in batteries stored at the site.

            53. Registration of gasoline, diesel fuel and chromic acid ASTs.

      C. THE YORK. NE PREMISES

            54. Evidence that quarterly and annual inspections as, required by
the facility's Stormwater Prevention Plan ("SWPP") are being conducted. Evidence
that required training is conducted and properly documented.

            55. Preparation of a certified SPCC plan.

      D. THE KEARNEY, MO PREMISES

            56. Update of SWPP Plan and evidence that identified actions
(inspections conducted and documented, training documentation available) have
been implemented.

            57. Preparation of an SPCC plan.

      E. THE FAIR BLUFF. NC PREMISES

            58. Preparation of a certified SPCC plan.

            59.   Construction or secondary containment for materials stored in
the fenced oil storage area south of the blending area in the northeast corner
of the production building.

            60. Removal of two (2) drums of weed killer observed in the oil
storage area, or evidence of use of material in the drums.

            61. Submission of a notice of intent for general stormwater permit
and updating of SWPP plan.

            62. Clean out of the loading dock sump and proper disposal of the
contents.

                EXHIBIT I TO PLY GEM AMENDED & RESTATED LEASE - 3

<PAGE>

                                                                       EXHIBIT I

      4.    Repair/Regulatory compliance Issues

A.    VALENCIA, PA

      1.    Install secondary roof drains on EPDM roofs

      2.    Install three (3) additional ADA compliant parking spaces with one
            (1) meeting "Van accessible" requirements

      3.    Updated ALTA survey

      4.    File corrected subdivision map (executed by each adjoining landowner
            and the appropriate governmental authorities) correcting
            "Sub-Division No. 3 for Sarah J. Ferree" to reflect and recognize
            the boundaries set forth in the legal description on Exhibit "A" of
            this lease with respect to the Valencia, PA property.

      5     Install two (2) ADA compliant restrooms on first level

B.    TOLEDO, OH

      1.    Updated ALTA survey

      2.    Install nine (9) ADA compliant parking spaces with one (1 ) meeting
            the "Van Accessible" Requirements

C.    ROCKY MOUNT, VA

      1.    Replace painted sprinkler heads

      2.    Install sprinkler system in compactor area

      3.    Lower stacking heights of stored plastic materials as recommended by
            St. Paul Travelers Insurance Company

      4.    Install three (3 ) ADA compliant parking spaces with two (2) meeting
            "Van Accessible" requirements

      5.    Install ADA signage that directs personnel or visitors to ADA
            compliant restrooms in the main buildings

      6.    Updated, ALTA survey

      7.    Install ADA Convert one (1) restroom in the Weaver building to a
            Unisex ADA compliant restroom

D.    FAIR BLUFF, NC

               EXHIBIT I TO PLY GEM AMENDED &. RESTATED LEASE - 4

<PAGE>

                                                                       EXHIBIT I

      1.    Install three (3) ADA compliant parking spaces with one (1) meeting
            "Van Accessible" requirements

      2.    Updated ALTA survey

      3.    Replace the locker room faucets with lever style controls and
            install pipe protection when the locker rooms are renovated as
            planned

E.    MARTINSBURG. WV

      1.    Replace thru-wall units in QC Lab

      2.    Install scuppers in parapet of roof over offices

      3.    Install flex tube on RTU condensate lines; repair roof panels

      4.    Repair site lighting controls

      5.    Updated ALTA survey

      6.    (1) Obtain access easement for the existing private road known as
            "Variform Drive", (2) obtain confirmation that "Variform Drive" has
            been dedicated as a public road or (3) construct a roadway
            connecting the Martinsburg, WV property to State Route 9 within the
            existing access easement area.

      7.    Obtain drainage pipe easement for drainage pipe connected to
            stormwater retainage pond.

      8.    Install ADA compliant parking space

F.    KEARNEY, MO

      1.    Updated ALTA survey

      2.    Install an access ramp to the office entrance

      3.    Install three(3) signs marking the ADA compliant parking spaces

      4.    Stripe an additional one hundred sixty-nine (169) parking spaces

      5.    Install a "Van Accessible" parking space meeting ADA requirements

G.    YORK, NE

      1.    Updated ALTA survey

      2.    Improve office restroom at the office area

                 EXHIBIT I TO PLY GEM AMENDED & RESTATED LEASE-5

<PAGE>

                                                                       EXHIBIT I

      3.    Install an appropriate entrance door with grade level thresholds at
            the office entrance

      4.    Stripe an additional twenty-one(21) parking spaces.

      5.    Install three(3) ADA compliant parking spaces with one(1) meeting
            "Van Accessible" Requirements

      5.    Compliance Letters

      Tenant shall use reasonable efforts to obtain any zoning, fire code or
building compliance letters and letters confirming no pending condemnations from
each applicable governmental authority to the extent that same have not been
previously provided to Landlord prior to the Commencement Date.

      6.    Communications Regarding Environmental Post-Closing Matters:

                  Tenant shall provide all communications regarding the
Post-Closing Obligations specified in Paragraphs 1 and 2 of this Exhibit "I"
including Tenant's proof of satisfactory completion of these obligations to
Landlord, addressed to:

                    Louis A. Naugle, Esquire
                    Reed  Smith LLP
                    435 Sixth Avenue
                    Pittsburgh, PA 15219
                    Telephone :412-288-8586
                    Fax:  412-288-3063
                    E-mail: lnaugle@reedsmith.com

                 EXHIBIT I TO PLY GEM AMENDED & RESTATED LEASE-6<PAGE>

                                                                   EXHIBIT 10.17

================================================================================
                                 LOAN AGREEMENT

                                   FIXED RATE

                                     BETWEEN

                PG(MULTI-16)L.P., A DELAWARE LIMITED PARTNERSHIP

                                   AS BORROWER

                                       AND

             GMAC COMMERCIAL MORTGAGE BANK, A UTAH INDUSTRIAL BANK

                                    AS LENDER

                          DATED AS OF OCTOBER 22, 2004

LOAN NUMBER: 46675
================================================================================

                                                              Ply Gem Industries

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                          PAGE
                                                                          ----
<S>                                                                       <C>
ARTICLE 1   DEFINED TERMS AND CONSTRUCTION GUIDELINES......................1

  1.01.     Defined Terms..................................................1
  1.02.     General Construction...........................................1
  1.03.     Reserved.......................................................1
  1.04.     Property.......................................................2

ARTICLE 2   MAXIMUM LOAN AMOUNT; PAYMENT TERMS; ADVANCES; DEFEASANCE.......2

  2.01.     Commitment to Lend.............................................2
  2.02.     Calculation of Interest........................................2
  2.03.     Payment of principal and Interest..............................3
  2.04.     Payments Generally.............................................3
  2.05.     Prepayment Rights..............................................5

ARTICLE 3   CASH MANAGEMENT................................................11

  3.01.     Intentionally Deleted..........................................11

ARTICLE 4   ESCROW AND RESERVE REQUIREMENTS................................11

  4.01.     Creation and Maintenance of Escrows and Reserves...............11
  4.02.     Tax Escrow.....................................................12
  4.03.     Insurance Premium Escrow.......................................13
  4.04.     Immediate Repair Escrow Account................................14
  4.05.     Replacement Reserve Account....................................15
  4.06.     TI/LC Reserve Account..........................................16

ARTICLE 5   COMPLETION OF REPAIRS RELATED TO RESERVE ACCOUNTS;
              CONDITIONS TO RELEASE OF FUNDS...............................17

  5.01.     Conditions Precedent to Disbursements from
             Certain Reserve Accounts......................................17
  5.02.     Waiver of Conditions to Disbursement...........................19
  5.03.     Direct Payments to Suppliers and Contractors...................19
  5.04.     Performance of Reserve Items...................................19

ARTICLE 6   LOAN SECURITY AND RELATED OBLIGATIONS..........................20

  6.01.     Security Instrument and Assignment of Rents and Leases.........20
  6.02.     Assignment of Property Management Contract.....................21
  6.03.     Assignment of Operating Agreements.............................21
  6.04.     Pledge of Property; Grant of Security Interest.................20
  6.05.     Environmental Indemnity Agreement..............................20
</TABLE>

                                                              Ply Gem Industries
                                      -i-
<PAGE>

<TABLE>
<S>                                                                       <C>
  6.06.        Guaranty of Borrower Sponsors............................. 20
  6.07.        Letters of Credit......................................... 20

ARTICLE 7      SINGLE PURPOSE ENTITY REQUIREMENTS........................ 23

  7.01.        Commitment to be a Single Purpose Entity.................. 23
  7.02.        Definition of Single Purpose Entity....................... 23

ARTICLE 8      REPRESENTATIONS AND WARRANTIES............................ 26

  8.01.        Organisation; Legal Status................................ 26
  8.02.        Power; Authorization; Enforceable Obligations............. 27
  8.03.        No Legal Conflicts........................................ 27
  8.04.        No Litigation............................................. 27
  8.05.        Business Purpose of Loan.................................. 27
  8.06.        Warranty of Title......................................... 27
  8.07.        Condition of the Property................................. 28
  8.08.        No Condemnation........................................... 28
  8.09.        Requirements of Law....................................... 28
  8.10.        Operating Permits......................................... 28
  8.11.        Separate Tax Lot.......................................... 29
  8.12.        Flood Zone................................................ 29
  8.13.        Adequate Utilities........................................ 29
  8.14.        Public Access............................................. 29
  8.15.        Boundaries................................................ 29
  8.16.        Mechanic Liens............................................ 29
  8.17.        Assessments............................................... 29
  8.18.        Insurance................................................  29
  8.19.        Leases..................................................   30
  8.20.        Management Agreement...................................... 30
  8.21.        Financial Condition....................................... 30
  8.22.        Taxes..................................................... 31
  8.23.        No Foreign Person......................................... 31
  8.24.        Federal Regulations....................................... 31
  8.25.        Investment Company Act, Other Regulations................. 31
  8.26.        ERISA..................................................... 31
  8.27.        No Illegal Activity as Source of Funds.................... 31
  8.28.        Compliance with Anti-Terrorism, Embargo, Sanctions and
               Anti-Money Laundering Laws................................ 31
  8.29.        Brokers and Financial Advisors............................ 31
  8.30.        Complete Disclosure; No Change in Facts or Circumstances.. 32

ARTICLE 9      BORROWER COVENANTS........................................ 32

  9.01.        Payment of Debt and Performance of Obligations............ 32
  9.02.        Payment of Taxes and Other Lienable Charges............... 32
</TABLE>
                                                              Ply Gem Industries

                                      -ii-
<PAGE>

<TABLE>
<S>                                                                              <C>
  9.03.        Insurance......................................................... 33
  9.04.        Obligations upon Condemnation of Casualty......................... 37
  9.05.        Inspections and Right of Entry.................................... 43
  9.06.        Leases and Rents.................................................. 43
  9.07.        Use of Property................................................... 45
  9.08.        Maintenance of Property........................................... 46
  9.09.        Waste............................................................. 46
  9.10.        Compliance with Laws.............................................. 46
  9.11.        Financial Reports, Books and Records.............................. 46
  9.12.        Performance of Other Agreements................................... 48
  9.13.        Existence Change of Name; Location as a Registered Organization....49
  9.14.        Property Management............................................... 49
  9.15.        ERISA............................................................. 50
  9.16.        Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money
                Laundering Laws.................................................. 50

ARTICLE 10     NO TRANSFERS OR ENCUMBRANCES; DUE ON SALE......................... 51

  10.01.       Prohibition Against Transfers..................................... 51
  10.02.       Lender Approval................................................... 51
  10.03.       Borrower Right to Partial Defeasance and Release for Allocated
                Maximum Loan Amount.............................................. 53
  10.04.       Other Releases of the Mortgaged Property.......................... 55
  10.05.       OFAC Compliance; Substantive Consolidation Opinion................ 55

ARTICLE 11     EVENTS OF DEFAULT; REMEDIES....................................... 55

  11.01.       Events of Default................................................. 55
  11.02.       Remedies.......................................................... 58
  11.03.       Cumulative remedies; No Waiver; Other Security.................... 60
  11.04.       Enforcement Costs................................................. 61
  11.05.       Application of Proceeds........................................... 61
  11.06.       Cross-Default; Cross-Collateralization; Waiver of
                 Marshalling of Assets........................................... 61

ARTICLE 12     NONRECOURSE - LIMITATIONS ON PERSONAL LIABILITY................... 62

  12.01.       Nonrecourse Obligation............................................ 62
  12.03.       Full Personal Liability........................................... 62
  12.03.       Personal Liability for Certain Losses............................. 62
  12.04.       No Impairment..................................................... 63
  12.05.       No Waiver of Certain Rights....................................... 64

ARTICLE 13     INDEMNIFICATION................................................... 64

  13.01.       Indemnification Against Claims.................................... 64
  10.02.       Duty to Defend.................................................... 65
</TABLE>

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<TABLE>
<S>                                                                          <C>
ARTICLE 14     SUBROGATION; NO USURY VIOLATIONS............................. 65

  14.01.       Subrogation.................................................. 65
  14.02.       No Usury..................................................... 65

ARTICLE 15     SALE OR SECURITIZATION OF LOAN............................... 66

  15.01.       Splitting the Note........................................... 66
  15.02.       Lender's Rights to Sell or Securitize........................ 66
  15.03.       Dissemination of Information................................. 67
  15.04.       Reserves Accounts............................................ 67
  15.05.       Securitization Indemnification............................... 67

ARTICLE 16     BORROW FURTHER ACTS AND ASSURANCES PAYMENT OF SECURITY
                RECORDING CHARGES........................................... 69

  16.01.       Further Acts................................................. 69
  16.02.       Replacement Documents........................................ 69
  16.03.       Borrower Estoppel Certificates............................... 69
  16.04.       Recording Costs.............................................. 70
  16.05.       Publicity.................................................... 70

ARTICLE 17     LENDER CONSENT............................................... 70

  17.01.       No Joint Venture; No Third Party Beneficiaries............... 70
  17.02.       Lender Approval.............................................. 71
  17.03.       Performance at Borrower's Expense............................ 71
  17.04.       Non-Reliance................................................. 71

ARTICLE 18     MISCELLANEOUS PROVISIONS..................................... 72

  18.01.       Notices...................................................... 72
  18.02.       Entire Agreement; Modifications; Time of Essence............. 73
  18.03.       Binding Effect; Joint and Several Obligations................ 73
  18.04        Duplicate Originals; Counterparts............................ 73
  18.05.       Unenforceable Provisions..................................... 73
  18.06.       Governing Law................................................ 73
  18.07.       Consent to Jurisdiction...................................... 74
  18.08.       WAIVER OF TRIAL BY JURY...................................... 74

ARTICLE 19     SUBSTITUTION OF PROPERTY..................................... 74

  19.01.       Substitution of Properties................................... 74

ARTICLE 20     LIST OF DEFINED TERMS........................................ 81

 20.01.        Definitions.................................................. 81

ARTICLE 21     LOCAL LAW PROVISIONS......................................... 97

               Intentionally Deleted........................................ 97
</TABLE>

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                                 LOAN AGREEMENT

                                (FIXED RATE LOAN)

      THIS-LOAN AGREEMENT is made as of this 22nd day of October, 2004 by PG
(MULTI-16) L.P., a Delaware limited partnership, and its successors and assigns
("BORROWER"), as borrower, and GMAC COMMERCIAL MORTGAGE BANK, a Utah Industrial
Bank (together with its successors and assigns "LENDER"), as lender.

                                   BACKGROUND

      Borrower desires to obtain a commercial mortgage loan from Lender in the
original principal amount of $17,650,000.00 in lawful money of the United
States of America. Lender is willing to make such loan to Borrower on the terms
and conditions set forth in this Loan Agreement.

                                    AGREEMENT

      NOW, THEREFORE, in consideration of such loan and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, Borrower and Lender
agree as follows:

                                    ARTICLE 1
                    DEFINED TERMS AND CONSTRUCTION GUIDELINES

      1.01. Defined Terms. Each defined term used in this Loan Agreement has the
meaning given to that term in Article 20 of this Loan Agreement.

      1.02. General Construction. Defined terms used in this Loan Agreement may
be used interchangeably in singular or plural form, and pronouns are to be
construed to cover all genders. All references to this Loan Agreement to any
agreement or instrument referred to in this Loan Agreement shall mean such
agreement or instrument as originally executed and as hereafter amended,
supplemented, extended, consolidated or restated from time to time. The words
"herein," "hereof" and "hereunder" and other words of similar import refer to
this Loan Agreement as whole and not to any particular subdivision; and the
words "Article" and "section" refer to the entire article or section, as
applicable and not to any particular subsection or other subdivision. Reference
to days for performance means calendar days unless business days are expressly
indicated.

      1.03. Reserved.

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<PAGE>

      1.04. Property. The parties hereto acknowledge that the defined term
"Property" has been defined to collectively include each individual Property and
the Letters of Credit and Ohio Letter of Credit. All references to "Property" in
this Loan Agreement shall be deemed to refer to one or more Individual
Properties, as the context required and the Letters of Credit. It is the intent
of the parties hereto in making any determinations under this Loan Agreement,
including, without limitation, in determining whether (a) breach of a
representation, warranty or a covenant has occurred, (b) there has occurred a
default or Event of Default, or (c) an event has occurred which would create
recourse obligations under Article 12 of his Loan Agreement, that any such
breach, occurrence or event with respect to any Individual Property shall be
deemed to be such a breach, occurrence or event with respect to the Loan.

                                    ARTICLE 2
             MAXIMUM LOAN AMOUT; PAYMENT TERMS; ADVANCES; DEFEASANCE

      2.01. Commitment to Lend.

      (a) Maximum Loan Amount Approved. Subject to the terms and conditions set
forth herein, and in reliance on Borrower's representations, warranties and
covenants set forth herein, Lender agrees to loan the Maximum Loan Amount to
Borrower. The Loan shall be evidenced by this Loan Agreement and by the Note
made by Borrower to the order of Lender and shall bear interest and be paid upon
the terms and conditions provided herein.

            (b) Advance of Maximum Loan Amount. On the Closing Date, Lender
shall advance the entire Maximum Loan Amount to Borrower.

      2.02. Calculation of Interest.

            (a) Calculation Basis. Interest due on the Loan shall be paid in
arrears and calculated based on a 360-day year and paid for the actual number of
days elapsed in such partial month by a daily rate calculated on said 360-day
year.

            (b) Applicable Interest Rate. Interest shall accrue on outstanding
principal at the rate of six and fourteen one hundredths percent (6.14%) per
annum ("APPLICABLE INTEREST RATE").

            (c) Adjustment for Impositions on Loan Payment. All payments made by
Borrower hereunder shall be made free and clear of, and without reduction for,
or on account of, any income, stamp or other taxes, levies, imposts, duties,
charges, fees, deductions or withholdings hereafter imposed, levied, collected,
withheld or assessed by and government or taxing authority (other than taxes on
the overall net income or overall gross receipts of Lender imposed as a result
of a present or former connection between Lender and the jurisdiction of the
government or taxing authority imposing same provided, that this exclusion shall
not apply to a government or taxing authority imposing same provided, that this
exclusion shall not apply to a connection arising solely from Lender's having
executed, delivered, performed its obligations

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                                       -2-
<PAGE>

under, received a payment under, or enforced this Loan Agreement or any other
Loan Document). If any such amounts are required to be withheld from amounts
payable to lender, the amounts payable to lender under the Loan Documents shall
be increased to the extent necessary to yield to Lender, after payment of such
amounts, interest or any such other amounts payable at the rates or in the
amounts specified herein. If any such amounts are payable by Borrower, Borrower
shall pay all such amounts by their due date and promptly send Lender a
certified copy of an original official receipt showing payment thereof. If
Borrower fails to pay such amounts when due or to deliver the required receipt
to Lender, Borrower shall indemnify Lender for any incremental taxes, interest
or penalties that may become payable by Lender as a result of any such failure.

            (d) Intentionally Omitted.

            (e) Acceleration. Notwithstanding anything to the contrary contained
herein, if Borrower is prohibited by law from paying any amount due to Lender
under Section 2.02(c) or (d), Lender may elect to declare the unpaid principal
balance of the Loan, together with all unpaid interest accrued thereon and any
other amount due hereunder, due and payable within ninety (90)
days of Lender's written notice to Borrower. No prepayment Fee shall be due in
such event. Lender's delay or failure in accelerating the Loan upon the
discovery or occurrence of an event under Section 2.02(c) or (d) shall not be
deemed a waiver or estoppel against the exercise of such right.

      2.03. Payment of Principal and Interest.

            (a) Payment at Closing. If the Loan is funded on a date other than
the first (1st) day of a calendar month, Borrower shall pay to Lender at the
time of funding an interest payment calculated by multiplying (i) the number of
days from and including the date of funding to (but excluding) the first
(1st)day of the next calendar month by (ii) a daily rate based on the Applicable
Interest Rate and Calculated for a 360-day year.

            (b) Payment Dates. Commencing on the first (1st) day of December,
2004 and continuing on the first (1st) day of each and every successive month
thereafter (each, a "PAYMENT DUE DATE"), through and including the Payment Due
Date immediately prior to the Maturity date, Borrower shall pay consecutive
monthly payments of principal and interest in the amount of $127,879.75 and any
amounts due pursuant to Section 2.02 of this Loan Agreement.

            (c) Maturity Date. On the first (1st) day of November, 2024
("MATURITY DATE"), Borrower shall pay the entire outstanding principal balance
of the Loan, together with all accrued but unpaid interest thereon and all other
amounts due under this Loan Agreement, the Note or any other Loan Document.

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                                       -3-
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\      2.04. Payments Generally.

            (a) Delivery of Payments. All payments due to Lender under this Loan
Agreement and the other Loan Documents are to be paid in immediately available
funds to Lender at Lender's office located at 200 Witmer Road, P.O. Box 809,
Horsham, Pennsylvania 19044, Attn: Servicing - Accounting Manager or by wire
transfer to Lender, or at such other Place as Lender may designate to Borrower
in writing from time to time. All amounts due under this loan Agreement and the
other Loan Documents shall be paid without setoff, counterclaim or any other
deduction whatsoever.

            (b) Credit for Payment Receipt. No payment due under this Loan
Agreement or any of the other Loan documents shall be deemed paid to Lender
until received by Lender at its designated office on a business day prior to
2:00 p.m. Eastern Standard Time. Any payment received after the time established
by the preceding sentence shall be deemed to have been paid on the immediately
following business day. Each payment that is paid to Lender in the calendar
month in which it is due, but prior to its scheduled Payment due date, shall not
be deemed a prepayment and shall be deemed to have been received on the payment
Due Date, solely for the purpose of calculating interest due. Where a Payment
Due Date falls on a date other than a business day, the Payment due date shall
be deemed the first business day immediately thereafter.

            (c) Invalidated Payments. If any payment received by Lender is
deemed by a court of competent Jurisdiction to be a voidable preference or
fraudulent Conveyance under any bankruptcy, insolvency or other debtor relief
law, and is required to be returned by Lender, then the obligation to make such
payment shall be reinstated, notwithstanding that the Note may have been marked
satisfied and returned to Borrower or otherwise canceled, and such payment shall
be immediately due and payable upon demand.

            (d) Late Charges. If any payment due on a Payment Due Date is not
received by Lender in full on or before the fifth (5th) day after the Payment
Due Date on which such payment is due (e.g., if the Payment Due Date is the 1st
day of month, a late charge would accrue if the full payment is not received on
or before the 5th day of the month), Borrower shall pay to Lender, immediately
and without demand, a late fee equal to five percent (5%) of such delinquent
amount.

            (e) Default Interest Rate. If the Loan is not paid in full on or
before the Maturity Date or if the Loan is accelerated following an event of
Default and during the continuance thereof, the interest rate then payable on
the Loan shall immediately increase to the Applicable Interest Rate plus five
hundred (500) basis points ("DEFAULT RATE") and continue to accrue at the
Default Rate until full payment is received. In addition, Lender shall have the
right, without acceleration of the Loan, to collect interest at the Default rate
on any payment due hereunder (including, without limitation, late charges and
fees for legal counsel) which is not received by Lender on or before the date on
which such payment originally was due. Interest at

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                                     - 4 -
<PAGE>
the Default Rate also shall accrue on any judgment obtained by Lender in
connection with collection of the Loan or enforcement of any obligations due
under the other Loan Documents until such judgment amount is paid in full.

            (f) Application of Payments. Payments of principal and interest due
from Borrower shall be applied first to the payment of late fees, then to Lender
advances made to protect the Property or to perform obligations which Borrower
failed to perform, then to the payment of accrued but unpaid interest, and then
to reduction of the outstanding principal. If at any time Lender receives less
than the full amount due and payable on a Payment Due Date, Lender may apply the
amounts received to amounts then due and payable in any manner and in any order
determined by Lender, in its sole discretion. Following an Event of Default,
Lender may apply all payments to amounts then due in any manner and in any order
determined by Lender, in its sole discretion. Lender's acceptance of a payment
form Borrower in an amount that is less than the full amount then due and
Lender's application of such payments to amounts then due from Borrower shall
not constitute or be deemed to constitute a waiver of the unpaid amounts or an
accord and satisfaction. No principal amount repaid may be reborrowed.

     2.05.  Prepayment Rights.

            (a) Prepayment. Borrower acknowledges that Lender is making the
Loan to it at the interest rate and upon the other terms herein set forth in
reliance upon Borrower's promise to pay the Loan over the full stated term of
this Loan Agreement and that Lender may suffer loss or other detriment if
Borrower were to prepay all or any portion of the Note prior to its stated
Maturity Date. Except as provided in this Section 2.05 and Section 9.04(f) or
as otherwise provided in this Agreement, Borrower agrees that Borrower has no
right to prepay all or any part of the Loan prior to the Maturity Date. On and
after the first (1st) day of the third (3rd) month preceding the Maturity Date
(the "OPEN DATE"), Borrower may prepay the Loan in whole, but not in part,
provided Borrower pays with such prepayment (a) all accrued interest and all
other outstanding amounts then due and unpaid under this Loan Agreement and
under the other Loan Documents, and (b) if the prepayment is not made on a
Payment Due Date, Borrower pays with such prepayment the full interest amount
that would have accrued for the period from the date of prepayment through the
day prior to the next Payment Due Date. Lender is not obligated to accept any
prepayment unless accompanied by amounts required hereunder. Notwithstanding any
contrary provision of this Loan Agreement, Lender may at any time apply proceeds
from a casualty or condemnation to principal as provided in this Loan
Agreement, provided that any such application shall not be subject to any
prepayment due.

            (b)  Voluntary Defeasance of the Loan.

                  (i) Defeasance to Release Property from Security Instrument.
Subject to Borrower's compliance with all terms and conditions of this Section
2.05(b), Borrower may defease the Loan in whole, or in part as set forth in
Section 10.03, in the manner hereinafter set forth ("DEFEASANCE") on any
Business Day after the Lock-out Period Expiration Date (defined

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                                     - 5 -
<PAGE>

below) and obtain a release ("RELEASE") of the Property or any one Property,
provided Borrower complies with section 10.03, from the lien of the Security
Instrument. Once a Defeasance in whole has been completed, the Loan will be
secured by the Defeasance Collateral (defined below), and thereafter the Loan
cannot be the subject of any further Defeasance nor prepaid in whole or in part,
notwithstanding any provision of this Section 2.05 to the contrary. Once partial
Defeasance has been completed, the Loan will be partially secured by the
Defeasance Collateral (defined below), and thereafter the portion of the Loan
defeased cannot be prepaid in whole or in part, notwithstanding any provision of
this Section 2.05 to the contrary. "LOCK-OUT PERIOD EXPIRATION DATE" means the
earlier to occur of (i) the third (3rd) anniversary of the Closing Date, or (ii)
the second (2nd) anniversary of the "startup date" of the REMIC within the
meaning of Section 860G(a)(9) of the Tax Code.

                  (ii) Condition to Defeasance. Borrower may cause a Release or
a Partial Release upon the satisfaction of the following conditions (all as
reasonably approved by Lender):

                        (A) no Event of Default shall exist under any of the
Loan Document;

                        (B) not less than forty-five (45) (but not more than
ninety (90)) days prior written notice shall be given to Lender specifying a
date (such date being on a Payment Due Date) on which the Defeasance Collateral
(as hereinafter defined) is to be delivered (the "RELEASE DATE");

                        (C) all accrued and unpaid interest and all other sums
due under the Note, this Loan Agreement and under the other Loan Documents up to
the Release Date including, without limitation, all fees, costs and expenses
incurred by Lender and its agents in connection with such release (including,
without limitation, reasonable legal fees and expenses for the review and
preparation of the Defeasance Pledge Agreement (as defined below) and of the
other materials described in Section 2.05(b)(ii)(D) below and any release
documentation, and any servicing fees, rating Agency fees or other costs related
to such release), shall be paid in full on or prior to the Release Date;

                        (D) Borrower shall deliver the following to Lender on or
prior to the Release Date:

                              (1) The Defeasance Collateral which meets all
requirements of subsection 2.05(b)(iii) below and is owned by Borrower, free and
clear of all liens and claims of third-parties.

                              (2) A written certification of an independent
certified public accounting firm (reasonably acceptable to Lender), confirming
that the Defeasance Collateral will (1) in the event of Defeasance of the entire
loan generate amounts sufficient to

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                                     - 6 -
<PAGE>

make all Scheduled Debt Payments as they fall due under the Note, including full
payment due on the Note on the Maturity Date, or (2) in the event of partial
Defeasance, generate amounts sufficient to make scheduled Debt Payments as they
fall due under the Defeasance Note, including full payment on such Defeasance
Note on the Maturity Date.

                              (3) Lender's form of a pledge and security
agreement ("DEFEASANCE PLEDGE AGREEMENT") and financing statements which pledge
and create a first priority security interest in the Defeasance Collateral in
favor of Lender.

                              (4) Confirmation in writing from Lender's
custodian that it has received all of the Defeasance Collateral for the account
and benefit of Lender.

                              (5) A written certification from Borrower which
confirms that, following Defeasance, Borrower continues to satisfy the "single
purpose entity" requirements of this Loan Agreement.

                              (6) Such legal opinions given by Borrower's
counsel (which counsel must be reasonably acceptable to Lender) as Lender may
require to confirm (i) that the Defeasance Collateral and the proceeds thereof
have been validly pledged to Lender, that the Defeasance Pledge Agreement and
other Loan Documents after the Defeasance are enforceable against Borrower in
accordance with the respective terms and Lender has a perfected first priority
security interest in the Defeasance Collateral, (ii) 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 that then holds the Notes to
fail to maintain its status as a REMIC and(iii) the defeasance will not cause
any REMIC to be an investment company under the Investment company Act of 1940
and (iv) an opinion by Lender's counsel or counsel reasonably acceptable to
Lender at Borrower's expense in the event of a bankruptcy proceeding or similar
occurrence with respect to Borrower, none of the Defeasance Collateral nor any
proceeds thereof will be property of Borrower's estate under Section 541 of the
Bankruptcy Code or any similar statute and the grant of security interest
therein to Lender shall not constitute an avoidable preference under Section 547
of the Bankruptcy Code or applicable state law.

                              (7) Forms of all documents necessary to release
the Property or, in the case of partial defeasance, the Release Property from
the liens created by the security Instrument and related UCC financing
statements (collectively, "RELEASE INSTRUMENTS"), each in appropriate form
required by the state in which the Property or, in the case of partial
Defeasance, the Release Property is located.

                              (8) Such other certificates, confirmations,
documents or instruments as Lender reasonably deems necessary in connection with
the Defeasance, including, without limitation, a rating Confirmation.

                        (G) Borrower shall satisfy the requirements of Section
10.03 hereof.

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                                     - 7 -
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                  (iii) Purchase and Ownership of the Defeasance Collateral. The
"DEFEASANCE COLLATERAL" must consist only of non-callable and non-redeemable
securities issued, or fully insured as to payment, by the United States of
America or such other securities as are permitted at the time of Defeasance by
the Tax Code with respect to REMIC collateral substitutions. The Defeasance
Collateral also must provide for (A) redemption payments to occur prior, but as
close as possible, to all successive Payment Due Dates Occurring after the
Release Date and (B) deliver redemption proceeds at least equal to (1) in the
event of Defeasance of the entire Loan the amount of principal and interest due
on the Note on each such Payment Due Date including full payment due on the Note
on the Maturity Date or (2) in the event of partial Defeasance the amount of
principal and interest due on the Defeased Not on each such Payment Due Date,
including full payment due on the Defeasance Note on the Maturity Date
("SCHEDULED DEBT PAYMENT"). The Defeasance collateral shall be arranged such
that redemption payments received from the Defeasance Collateral are paid
directly to Lender to be applied on account of the Scheduled Debt Payments.
Unless otherwise agreed in writing by Lender, the pledge of the Defeasance
Collateral shall be effectuated through the book-entry facilities of a qualified
securities intermediary designated by Lender (which may be Lender itself or an
affiliate of Lender if such party qualifies as a securities Intermediary) in
conformity with all applicable laws.

                  (iv) Successor Borrower Option. Borrower, at Borrower's
expense, has the right, or in the case of partial Defeasance, an obligation to
designate an accommodation borrower ("SUCCESSOR BORROWER") which satisfies
Lender's then current requirements for a "single purpose entity" to assume at
the time of Defeasance ownership of the Defeasance Collateral and liability for
all or, in the case of partial Defeasance, a portion of, related to the Partial
Release Price of Borrower's obligations under this Loan Agreement, the
Defeasance Pledge Agreement and the other Loan Documents (to the extent that
liability thereunder survives repayment of the Loan and release of the Property
or, in the case of partial Defeasance, the Release Property). Such transfer and
assumption shall be evidenced by a duly executed, Written agreement reasonably
satisfactory to Lender, whereupon Borrower (subject to satisfaction of all
requirements of this Section 2.05(b)(ii) shall be relieved, or, in the case of
partial Defeasance, Partially relieved from liability in connection with the
Loan (except for those obligations which, by the express terms of the Loan
Documents, survive payment of the Loan which shall be assumed by Successor
Borrower). Notwithstanding any contrary provision in this Loan Agreement, no
assumption fee is required upon a transfer of the Loan in accordance with this
Section. If a Successor Borrower assumes Borrower's obligations, Lender may
require as a condition to Defeasance, such additional legal opinions from
Borrower's counsel as Lender reasonably deems necessary to confirm the valid
creation and authority of the Successor Borrower (including a nonconsolidation
opinion), the assignment and assumption of the Loan and Defeasance Collateral
between Borrower and Successor Borrower, and the enforceability of the
assignment documents and of the Loan Documents as the obligation of Successor
Borrower.

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                                     - 8 -
<PAGE>

            (v) Substitute Notes on Partial Defeasance. With respect to any
partial Defeasance, Borrower shall execute and deliver to Lender all documents
necessary to amend and restate the Note with two substitute notes: one note
having a principal balance equal to the defeased portion of the Loan (the
"DEFEASED NOTE") and one note having a principal balance equal to the undefeased
portion of the Note (the "UNDEFEASED NOTE"). The Undefeased Note may be the
subject of a further Defeasance in accordance with the terms of this Section
2.05(b) (the term "Note", as used in this Section 2.05(b), being deemed to refer
to the Undefeased Note that is the subject of further Defeasance).

            (vi) Defeasance Costs and Expenses. Borrower shall pay reasonable
costs and expenses incurred by Lender in connection with Defeasance, which
payment is required prior to Lender's issuance of the Release and whether or not
Defeasance is completed. Such expenses include, without limitation, the cost
incurred by Lender to obtain Rating Confirmation contemplated by Section
2.05(b)(ii)(D)(8), the reasonable fees and disbursements of Lender's legal
counsel and a processing fee to cover Lender's administrative costs to process
Borrower's Defeasance request. Lender reserves the right to require that
Borrower post a deposit to cover costs which Lender reasonably anticipates will
be incurred.

      (c) Prohibited Prepayment Prior to Open Date. Except as otherwise set
forth in Section 2.05(d), if payment of all or any part of the principal balance
of the Loan is tendered by Borrower, a purchaser at foreclosure, a Guarantor, or
any other Person prior to the Open Date, whether by reason of acceleration of
the Loan or otherwise (a "PROHIBITED PREPAYMENT"), such tender shall be deemed
an attempt to circumvent the prohibition against prepayment set forth in Section
2.05(a) and, at Lender's option, shall be an Event of Default. If a prohibited
prepayment occurs and is accepted voluntarily or otherwise by Lender, then, in
addition to all other rights and remedies available to lender upon an Event of
Default, a Prohibited Prepayment Fee (as defined below) shall be due to
compensate Lender for damages suffered as a result of the Prohibited Prepayment,
such amount shall be due in addition to the outstanding principal balance, all
accrued and unpaid interest and other outstanding amounts due under the Loan
Documents. The "PROHIBITED PREPAYMENT FEE" shall be prepayment premium equal to
the greater of:

            (i)         one percent (1%) of the outstanding principal balance of
                        Note, or

            (ii)        the Yield Maintenance Premium (as defined below).

The "YIELD MAINTENANCE PREMIUM" shall be equal to the excess, if any, of (A) the
present value ("PV") of all scheduled interest and principal payments due on
each Payment Due Date in respect of the Loan for the period from the date of
such accepted prepayment to the Maturity Date, including the principal amount of
the Loan scheduled to be due on the maturity Date, discounted at an interest
rate per annum equal to the Index (defined below), based on a 360-day year of
twelve 30-day months, over (B) the principal amount of the Loan outstanding
immediately before such accepted prepayment [i.e., (PV of all future payments) -
(principal

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<PAGE>

balance at time of acceleration)]. The foregoing amount shall be calculated by
Lender and shall be conclusive and binding on Borrower (absent manifest error).

     For purposes hereof, "Index" means the average yield for "treasury
constant maturities" published by the Federal Reserve Board in Federal Reserve
Statistical Release H.15 (519)("FRB Release"), for the second full week
preceding the date of acceleration of the Maturity Date for instruments having
a maturity coterminous with the remaining term of the Loan. If the FRB Release
is no longer published, Lender shall select a comparable publication to
determine the Index. If there is no Index for instruments having a maturity
coterminous with the remaining term of the Loan, then the weighted average
yield to maturity of the Indices with maturities next longer and shorter than
such remaining average life to maturity shall be used, calculated by averaging
(and rounding upward to the nearest whole multiple of 1/100 of 1% per annum, if
the average is not such a multiple) the yields of the relevant Indices
(rounded, if necessary, to the nearest 1/100 of 1% with any figure of 1/200 of
1% or above rounded upward).

            (d) Prepayment as a Result of a Casualty or Condemnation.
Prepayments arising from Lender's application of insurance proceeds upon the
occurrence of a Casualty, the application of a condemnation award upon the
occurrence of a Condemnation, application of the Termination Amount or as set
forth in Section 2.02 (e) may be made prior to the Open Date without being
deemed a Prohibited Prepayment and, whenever made, without payment of the
Prohibited Prepayment Fee.

            (e) Notice Irrevocable. Notwithstanding any provision of this Loan
Agreement to the contrary, Borrower's notice of defeasance in accordance with
subsection 2.05(b) above shall be irrevocable, and the principal balance to be
prepaid shall be absolutely and unconditionally due and payable on the date
specified in such notice.

                                   ARTICLE 3
                                CASH MANAGEMENT

     3.01.  Intentionally Deleted.

                                   ARTICLE 4
                        ESCROW AND RESERVE REQUIREMENTS

     4.01.  Creation and Maintenance of Escrows and Reserves.

            (a)  Control of Reserve Accounts. On the Closing date, each of the
Reserve Accounts shall be established by Lender. Each Reserve Account required
under this Loan Agreement shall be a custodial account established by Lender,
and, at Lender's option, funds deposited into a Reserve Account may be
commingled with other money held by Lender. Each Reserve Account shall be under
the sole dominion and control of Lender, and Borrower shall not

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<PAGE>

have any right to withdraw funds from a Reserve Account. Unless required by the
laws of the state which govern this Loan Agreement or otherwise expressly
provided in this Loan Agreement, Borrower shall not be entitled to any earnings
or interest on funds deposited in any Reserve Account. Upon the occurrence of an
Event of Default, Lender may, in addition to any and all other rights and
remedies available to Lender, apply any sums then present in any or all of the
Reserve Accounts to the payment of the Debt in any order as determined by Lender
in its sole discretion.

         (b) Funds Dedicated to Particular Purpose. Funds held in a Reserve
Account are not to be used to fund Reserve Items contemplated by a different
Reserve Account, and Borrower may not use and Lender shall have no obligation to
apply funds one Reserve Account to pay for Reserve Items contemplated by another
Reserve Account. For example, (i) funds held in the Immediate Repair Escrow
Account shall not be used to pay for Replacements, Tenant Improvements or
Leasing Commissions; (ii) funds held in the replacement Reserve Account shall
not be used to pay for Immediate Repairs, Tenant Improvements or Leasing
Commissions, and (iii) funds held in the TI/LC Reserve Account shall not be used
to pay for Immediate Repairs or Replacements.

         (c) Release of Reserves Upon Payment of Debt. Upon payment in full of
the Loan, Lender shall disburse to Borrower all unapplied funds held by Lender
in the Reserve Accounts pursuant to this Loan Agreement.

         (d) Release of Individual Reserve Account after Full Performance of
Reserve Items. Lender shall disburse to Borrower all unapplied funds remaining
in the Immediate Repair Escrow Account upon receipt of evidence satisfactory to
Lender that (i) Borrower has completed, in the manner required by this Loan
Agreement, all Reserve Items to be funded by such Reserve Account , and (ii) no
Liens exist against the Property with respect to such Reserve Items. Lender
shall not be obligated to make any such disbursement when an Event of Default
exists, and Lender may deduct from such final disbursement all outstanding
amounts then due and unpaid to Lender under the Loan Documents.

         (e) No Obligation of Lender. Nothing in this Loan Agreement shall; (i)
make Lender responsible for making or completing any Reserve Item; (ii) require
Lender to advance, disburse or expend funds in addition to funds then on deposit
in the related Reserve Account to make or complete any Reserve Item; or (iii)
obligate Lender to demand from Borrower additional sums to make or complete any
Reserve Item.

         (f) No Waiver of Default. No disbursements made from a Reserve Account
at the time when a Borrower default or Event of Default has occurred and is then
continuing shall be deemed a waiver or cure by Lender of that default or Event
of Default, nor shall Lender's rights and remedies by prejudiced in any manner
thereby.

         (g) insufficient Amounts in a Reserve Amount. Notwithstanding that
Lender has the right to require Borrower to pay any deficiency in a Reserve
Account if Lender

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<PAGE>

determines that amounts in a Reserve Account are insufficient, the
insufficiency of funds in a Reserve Account, or Lender's application of funds in
a Reserve Account following an Event of Default other than for funding of the
Reserve Items, shall not relieve Borrower from its obligation to perform in full
each of its: (i) obligations and covenants under this Loan Agreement; (ii)
agreements or covenants with tenants under the Leases; and (iii) agreements with
leasing agents.

      4.02. Tax Escrow.

         (a) Deposits to the Tax Escrow Account. At the option of Lender, (i) at
any time after the occurrence of an Event of Default (as defined therein) under
the Ply Gem Lease, (ii) if the Ply Gem Lease or an Acceptable Replacement Lease
in not in effect, (iii) if at any time Ply Gem is not required by the terms of
the Ply Gem Lease to pay all Taxes due with respect to the Property; (iv) at any
time after there has been a change in ownership of the Property (excluding a
transfer to an Affiliate of Borrower), or (v) at any time after the occurrence
of an Event of Default, Lender may require Borrower to establish the Tax Escrow
Account. If Lender establishes the Tax Escrow Account, then beginning on the
first Payment Due Date following the establishment of the Tax Escrow Account,
and on each Payment Due Date thereafter, Borrower shall deliver to Lender the
Monthly Tax Deposit.

         (b) Disbursement from Tax Escrow Account. Provided amounts in the Tax
Reserve Account are sufficient to pay the Taxes then due and no Event of Default
exists, Lender shall pay the Taxes as they become due on their respective due
dates on behalf of Borrower by applying the funds held in the Tax Escrow Account
to the payments of Taxes then due. In making any payment of Taxes, Lender may do
so according to any bill, statement or estimate obtained from the appropriate
public office with respect to Taxes without inquiry into the accuracy of such
bill, statement or estimate or into the validity of any tax, assessment sale,
forfeiture, tax lien or title or claim thereof.

         (c) Surplus or Deficiency in Tax Escrow Account. If amounts on deposit
in the Tax Escrow Account collected for an annual tax period exceed the Taxes
actually paid during such tax period, Lender shall, in its discretion, return
the excess to Borrower or credit the excess against the payments Borrower is to
make to the Tax Escrow Account for the next tax period. If amounts on deposit in
the Tax Escrow Account collected for an annual tax period are insufficient to
pay the Taxes actually due during such tax period, Lender shall notify Borrower
of the deficiency and, within ten (10) days thereafter, Borrower shall deliver
to Lender such deficiency amount. If , however, Borrower receives notice of any
such deficiency on a date that is within ten (10) days prior to the date that
Taxes are due, Borrower will deposit the deficiency amount within five (5)
business days after its receipt of such deficiency notice.

         (d) Changes in Amount of Taxes Due; Changes in the Monthly Tax Deposit.
Borrower shall notify Lender immediately of any changes to the amounts,
schedules and instructions for payment of any Taxes of which it has or obtains
knowledge and authorizes

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                                     - 12 -
<PAGE>
Lender or its agent to obtain the bills for Taxes directly from the appropriate
taxing authority. If the amount due for Taxes shall increase and Lender
reasonably determines that amounts on deposit in the Tax Escrow Account will not
be sufficient to pay Taxes due for an annual tax period, Lender shall notify
Borrower of such determination and of the increase needed to the Monthly Tax
Deposit. Commencing with the Payment due Date specified in such notice from
Lender, Borrower shall make deposits at the increased amount of the Monthly Tax
Deposit.

      4.03. Insurance Premium Escrow.

            (a) Deposits to Insurance Premium Escrow Account. At the option of
Lender (i) at any time after the occurrence of an Event of Default (as defined
therein) under the ply Gem Lease, (ii) if the Ply Gem Lease or an Acceptable
Replacement Lease is not in effect, (iii) if at any time Ply Gem is not required
by the terms of the Ply Gem Lease to pay all Insurance Premiums due with respect
to the Property; (iv) at any time after there has been a change in ownership of
the Property ( excluding a transfer to an Affiliate of Borrower), or (v) at any
time after the occurrence of an Event of Default, Lender may require Borrower to
establish the Insurance Premium Escrow Account. If Lender establishes the
Insurance Premium Escrow Account, then beginning on the first Payment Due Date
after the establishment of the Insurance Premium Escrow Account and on each
Payment Due Date thereafter, Borrower shall deliver to Lender the Monthly
Insurance Deposit.

            (b) Disbursement from Insurance Premium Escrow Account. Provided
amounts in the Insurance Premium Escrow Account are sufficient to pay the
Insurance Premiums then due and no Event of Default exists, Lender shall pay
the Insurance Premiums as they become due on their respective due dates on
behalf of Borrower by applying funds held in the Insurance Premium Escrow
Account to the payments of Insurance Premiums, Lender may do so according to
any bill, statement or estimate procured from the insurer without inquiry into
the accuracy of such bill, statement or estimate.

            (c) Surplus or Deficiency in Insurance Premium Escrow Account. If
amounts on deposit in the Insurance Premiums Escrow Account collected for an
annual period exceed the Insurance Premium actually paid during such period.
Lender shall, in its discretion, return such excess to Borrower or credit such
excess against the payments Borrower is to make to the Insurance Premium Escrow
Account for the next annual period. If amounts on deposit in the Insurance
Premium Escrow Account collected for an annual premium period are insufficient
to pay the Insurance Premiums actually due during such annual period Lender
shall notify Borrower of the deficiency and, within ten (10) days thereafter,
Borrower shall deliver to Lender such deficiency amount. If, however,
Borrower receives notice if by such deficiency on a date that is within ten (10)
days prior to the date that Insurance Premiums are due, Borrower will deposit
the deficiency amount within five (5) business days after its receipt of such
deficiency notice.

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                                     - 13 -
<PAGE>

            (d) Changes in Insurance Premium Amounts; Change in Monthly Deposit
Amount. Borrower shall notify Lender immediately of any changes to the amounts,
schedules and instructions for payment of any insurance Premiums of which it
has or obtains knowledge and authorizes Lender or its agent to obtain the bills
for the Insurance Premiums directly from the insurance provider or its agent. If
the amount due for Insurance Premiums shall increase and Lender reasonably
determines that amounts on deposit in the Insurance Premium Escrow Account will
not be sufficient to pay the Insurance Premiums, Lender shall notify Borrower of
such determination and of the increase needed to the Monthly Insurance Deposit.
Commencing with the Payment Due Date specified in such notice from Lender,
Borrower shall make deposits at the increased amount of the Monthly Insurance
Deposit.

      4.04. Immediate Repair Escrow Account.

            (a) Immediate Repair Escrow Generally. Amounts in the Immediate
repair Escrow Account are to be used for the purpose of funding the immediate
repairs, which Borrower covenants and agrees to perform in accordance with the
terms of this Loan Agreement on or before the dates specified on Exhibit B but
not later than twelve (12) months from the date hereof or such longer period as
is permitted under the Ply Gem Lease, provided that there shall be no outside
date for completion of any item that has no outside date of completion under the
Ply-Gem Lease.

            (b) Deposit to the Immediate Repair Escrow Account. On the Closing
Date, Borrower shall deposit $70,437.00 with Lender as the reserve for
completion of the immediate Repairs ("IMMEDIATE REPAIR DEPOSIT").
Notwithstanding the foregoing, Borrower has also transferred the Letters of
Credit to Lender pursuant to those certain Notices of Transfer dated _________,
 2004 (the "NOTICE").

            (c) Release of Immediate Repair Deposit. The Immediate repair
Deposit shall be releases in accordance with the terms of the Ply Gem Lease.

            (d) Disbursements from the Immediate Repair Escrow Account. Lender
shall make disbursements from the Immediate Repair Escrow Account upon
Borrower's performance to Lender's satisfaction, of all conditions to
disbursement set forth in Article 5 of this Loan Agreement.

            (e) Reassessment of Required Deposit. If at any time Lender
reasonably determines that the Immediate Repair Deposit will not be sufficient
to pay the cost of the immediate Repairs, Lender may notify Borrower of such
determination and of the amount estimated by Lender to make-up such deficiency
as reasonably determined by Lender based upon changes in circumstances. Within
ten (10) days after such notice from Lender, Borrower shall deliver the
deficiency amount to Lender, and Lender shall deposit in the Immediate repair
Escrow Account and hold and administer same in accordance with this Loan
Agreement.

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<PAGE>

      4.05. Replacement Reserve Account.

            (a) Replacement Reserve Generally. Amounts in the Replacement
Reserve Account are to be used for the purpose of funding the Replacements,
which Borrower covenants and agrees to perform or cause to be performed in
accordance with the terms of this Loan Agreement.

            (b) Deposits to the Replacement Reserve Account. Beginning on the
first Payment Due Date and on each Payment Due Date thereafter, Borrower shall
pay $19,450.50 ("MONTHLY REPLACEMENT RESERVE DEPOSIT") to Lender as a deposit to
the Replacement Reserve Account. During any period in which the balance of the
Replacement Reserve Account equals or exceeds $933,624.00 (the "REPLACEMENT
RESERVE THRESHOLD"), Borrower shall not be required to make any Monthly
Replacement Reserve Deposits. At any time that the balance of the Replacement
Reserve Account is less than the Replacement Reserve Threshold, then, upon
notice by Lender, Borrower shall resume monthly payments of the Monthly
Replacement Reserve Deposit in accordance with this Section 4.05(b) with such
payments to begin on the first Payment Due Date following such notice and
continuing until such time as the balance of the Replacement Reserve Account
equals or exceeds the Replacement Reserve Threshold.

            (c) Disbursements from the Replacement Reserve Account. Lender shall
make disbursements from the Replacement Reserve Account upon Borrower's
performance, to Lender's satisfaction, of all conditions to disbursements set
forth in Article 5 hereof.

            (d) Reassessment of Required Monthly Deposits. Lender may, from time
to time based on Lender's inspection of the Property, reassess its estimate of
the Monthly Replacement Reserve Deposit and may increase such amount on not
less than thirty (30) days written notice to Borrower if Lender determines that
an increase is necessary (i) to fund replacements not listed as part of the
Replacements (and not intended to be covered by the Immediate Repair Escrow
Account or TL/LC Reserve Account) which are advisable to keep the Property in
good order, repair and marketable condition, or (ii) to fund the replacement of
any major building systems or components (e.g., roof, HVAC system) not listed
as part of the Replacements (and not intented to be covered by the Immediate
Repair Escrow Account or TI/LC Reserve Account) which will reach the end of its
useful life within two (2) years of the date of Lender's inspection.

            (e) Waiver of Deposits. Notwithstanding anything in the foregoing
subparagraphs 4.05(a), (b), (c) and (d) to the contrary, Lender shall waive the
requirement of Monthly Replacement Reserve Deposits so long as (i) Lender is
satisfied with its annual inspection of the Property, and (ii) the Ply Gem
Lease or Acceptable Replacement Lease is not in default beyond any applicable
notice and/or cure period.

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<PAGE>

      4.06. TI/LC Reserve Account.

            (a) TI/LC Reserve Generally. Amounts in the TI/LC Reserve Account
are to be used for the purpose of funding the costs of tenant Improvements and
Leasing Commissions that are paid by Borrower during the term of the Loan.

            (b) Deposits to the TI/LC Reserve Account. Beginning on the first
Payment Due Date and on each Payment Due Date thereafter, Borrower shall pay
$17,456.16 ("MONTHLY TI/LC DEPOSIT") to Lender as an additional deposit to the
TI/LC Reserve Account. During any period in which the balance of the TI/LC
Reserve Account equals or exceeds $387,895.00 (the " TI/LC THRESHOLD"), Borrower
shall not be required to make any Monthly TI/LC Deposits. At any time that the
balance of the TI/LC Reserve Account is less than the TI/LC Threshold, then,
upon notice by Lender, Borrower shall resume monthly payments of the Monthly
TI/LC Deposit in accordance with this Section 4.06(b) with such payments to
begin on the first Payment Due Date following such notice and continuing until
such time as the balance of the TI/LC Reserve Account equals or exceeds the
TI/LC threshold.

            (c) Disbursements from the TI/LC Reserve Account. Lender shall make
disbursement from the TI/LC Reserve Account as Follows:

                  (i) Lender shall make disbursements from the TI/LC Reserve
Account to reimburse Borrower for Tenant Improvements required under any new
Lease or any modification, renewal or extension of an existing Lease paid by
Borrower, in accordance with the disbursement procedures (including evidence of
lien-free performance) set forth in Article 5 hereof, provided that: (A) the
Tenant Improvements are required under any new Lease or any modification,
renewal or extension of any existing Lease, provided that any such new Lease or
modification, renewal or extension of an existing Lease is entered into in
accordance with the terms and provisions of Section 9.06; (B) the cost of such
Tenant Improvements is market, reasonable and customary, (C) the Tenant
Improvements are fully performed in accordance with the standards set forth in
Article 5 hereof and have been accepted without condition by the related tenant;
(D) unless otherwise agreed to by Lender, the related tenant is occupying the
space benefited by the Tenant Improvements and has commenced paying rent; and
(E) if required by Lender, the related tenant shall have executed and delivered
a subordination, non disturbance agreement and an estoppel certificate or both
all on such forms as in reasonably acceptable to Lender.

                  (ii) Lender shall make disbursements from the TI/LC Reserve
Account to reimburse Borrower for Leasing Commissions paid by Borrower in
accordance with the disbursement procedures set forth in Article 5 hereof
provided that: (A) such leasing commissions and "override" leasing commissions
are market, reasonable and customary for properties similar to the Property and
the portion of the Property leased for which a commission is due; (B) the amount
of such leasing commissions and "override" leasing commissions are determined
pursuant to arms length transactions between Borrower and each such leasing
agent

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                                   -16-
<PAGE>

to which a commission is due; (C) the Lease has been approved by Lender in
accordance with this Loan Agreement or, if Lender's approval is not required,
conforms with all requirements Set forth in Section 9.06 of this Loan Agreement;
and (D) unless otherwise agreed by Lender, the tenant under the Lease for which
such Leasing Commission is claimed has taken occupancy of the leased space and
commenced paying rent.

            (d) Deposit Reassessment. Lender may, from time to time, based on
Lender's review of Leases and leasing information relating to the Property,
reassess its estimate of the Monthly TI/LC Deposit and may increase such amount
on not less than thirty (30) days written notice to Borrower if Lender
determines that an increase is necessary to maintain a proper reserve to pay the
costs of likely Tenant Improvements or Leasing Commissions that may arise during
the remaining term of the Loan.

            (e) Waiver of Deposits. Notwithstanding anything in the foregoing
subparagraphs 4.06(a), (b), (c) and (d) to the contrary, Lender shall waive the
requirement of Monthly TI/LC Deposits so long as (i) Lender is satisfied with
its annual inspection of the property, and (ii) the Ply Gem Lease or Acceptable
Replacement Lease is not in default beyond and applicable notice and cure
period.

                                    ARTICLE 5
               COMPLETION OR REPAIRS RELATED TO RESERVE ACCOUNTS;
                          CONDITIONS TO RELEASE OF FUNDS

      50.1. Conditions Precedent to Disbursements from Certain Reserve Accounts.
The following provisions apply to each request for disbursement from the
Immediate Repair Escrow Account, the Replacement Reserve Account and the TI/LC
Reserve Account:

            (a) Disbursement only for Completed Repairs. Disbursements shall be
limited to Reserve Items that are fully completed and paid for in full by
Borrower except to the extent permitted under Section 5.01(b) of this Loan
Agreement and, in the case of Leasing Commissions, fully and unconditionally
earned and paid in full by Borrower. At no time shall Lender be obligated to pay
amounts to Borrower in excess of the current balance in the applicable Reserve
Account at the time of disbursement.

            (b) Partial Completion. Lender may agree to disburse funds for
Reserve Items prior to completion thereof where (i) the contractor performing
such work requires periodic payments pursuant to the terms of its written
contract with Borrower and Lender has given its prior written approval to such
contract, and (ii) the cost of the portion of the Reserve Item to be completed
under such contract exceeds $10,000.

            (c) Disbursement Request; Maximum Frequency and Amount. Borrower
shall submit to Lender a Disbursement Request together with such additional
information as Lender may reasonably request in connection with the Disbursement
Request at least ten (10)

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                                      -17-
<PAGE>
business days prior to the date on which Borrower requests Lender to make a
disbursement from a Reserve Account. Unless otherwise agreed to by Lender,
Borrower may not submit, and Lender shall not be required to make, more than one
(1) disbursement from each Reserve Account during any calendar month. No
Disbursement Request shall be made for less than $2,500 or the total cost of the
Reserve Items, if less.

            (d) No Existing Event of Default. Lender may refuse to make any
disbursement if an Event of Default exists as of the date on which Borrower
submits the Disbursement Request or on the date the disbursement is actually to
be made.

            (c) Responsible Officer Certificate. Lender must receive a
certificate, signed by a Responsible Officer of Borrower (and, at Lender's
option, also signed by Borrower's project architect or engineer if the cost of a
single Reserve Item or the aggregated amount of the Disbursement Request exceeds
$50,000), which certifies that:

                  (i) All information stated in the Disbursement Request is true
and correct in all material respects, each attachment to the Disbursement
Request is correct and complete, and if the attachment is a copy of the
original, that it is a true and an accurate reproduction of the original;

                  (ii) Each of the Reserve Items to be funded in connection with
the Disbursement Request was performed in a good and workmanlike manner and in
accordance with all Requirements of Law, and has been paid in full by Borrower;

                  (iii) The Leasing Commission has been fully and
unconditionally earned and paid in full by Borrower, if the Reserve Item to be
funded is a Leasing Commission.

                  (iv) Subject to Section 5.03, each Party that supplied
materials, labor or services has been paid in full (for the portion for which
disbursement in sought in the case of disbursements authorized in accordance
with Section 5.01 (b) hereof); and

                  (v) In the case of disbursements authorized in accordance with
Section 5.01(b) hereof, the materials for which the request are made are on-site
at the Property and properly secured or have been installed in the Property.

            (f) Inspection to Confirm Completion. Prior to making any
disbursement which exceeds $50,000 in the aggregate or for a single Reserve
Item, Lender may require an inspection of the Property, performed at Borrower's
expense, to verify completion thereof.

            (g) Absence of Liens. Lender may require that Borrower provide
Lender with any or all of the following: (i) a written lien waiver acceptable to
Lender from each party to be paid who is to be receive payment of $25,000 or
more in connection with the Disbursement Request; (ii) a search of title to the
Property effective to the date of the disbursement which shows no Liens other
than the Permitted Encumbrances; or (iii) an endorsement to the Title

                                                              Ply Gem Industries

                                     -18-
<PAGE>

Insurance Policy which updates the effective date of such policy to the date of
the disbursement and shows no Liens other than the Permitted Encumbrances.

            (h)  Payment of Lender's Expenses. Borrower shall pay all
reasonable expenses incurred by Lender in processing Borrower's Disbursement
Request including, without limitation, any inspection costs (whether performed
by Lender or an independent inspector selected by Lender) and reasonable legal
fees and expenses.

            (i)  Other Items Lender Deems Necessary. Lender shall have received
such other evidence as Lender reasonably requests in connection with its
confirmation that each Reserve Item to be paid in connection with the
Disbursement Request has been completed or performed in accordance with the
terms of this Loan Agreement.

            5.02.  Waiver of Conditions to Disbursement. No waiver given by
Lender of any condition precedent to disbursement from a Reserve Account shall
preclude Lender from requiring that such condition be satisfied prior to making
any other disbursement from a Reserve Account.

            5.03.  Direct Payments to Suppliers and Contractors. Lender, at its
option, may make disbursements directly to the supplier or contractor to be
paid in connection with the Disbursement Request. Borrower's execution of this
Loan Agreement constitutes an irrevocable direction and authorization for
Lender to make requested payments directly to the supplier or contractor,
notwithstanding any contrary instructions from Borrower or notice from Borrower
of a dispute with such supplier or contractor. Each disbursement so made by
Lender shall satisfy Lender's obligation under this Loan Agreement. If
requested by Borrower any disbursement to any one supplier or contractor which
is in excess of $10,000 may be paid directly by Lender to such supplier or
contractor.

            5.04.  Performance of Reserve Items.

                  (a)  Performance of Reserve Items. Borrower agrees to
commence or cause Ply Gem to commence and to pursue completion diligently of
each Reserve Item which is also identified as a Post-Closing Obligation on
Exhibit I to the Ply-Gem Lease on or before its completion date stated under
the Ply Gem Lease. (provided that there shall be no outside date for completion
of any item that has no outside date of completion under the Ply-Gem Lease) and
to pursue completion diligently of any other Reserve Item when necessary in
order to keep the Property in good order and repair, in a good and marketable
condition and as necessary to keep any portion thereof from deteriorating, or
in the case of Tenant Improvements, when required under the Leases. Borrower
shall complete or cause Ply Gem to complete each Reserve Item in a good and
workmanlike manner, using only new materials of the same or better quality than
that being replaced. All Reserve Items shall be performed in accordance with,
and upon completion shall comply with, all Requirements of Law (including
without limitation obtaining and maintaining in effect all necessary permits
and governmental approvals) and all applicable insurance requirements.

                                                              Ply Gem Industries

                                      -19-
<PAGE>

            (b) Contracts. Lender shall have the right, at its option, to
approve all contracts or work order in excess of $50,000, with materialmen,
mechanics, suppliers, subcontractors, contractors or other parties providing
labor or materials in connection with the Reserve Items.

            (c) Entry onto Property. In order to perform inspections or,
following an Event of Default, to complete Reserve Items which Borrower has
failed to perform, Borrower hereby grants Lender and its agents the right, from
time to time, to enter onto the Property, subject, in all events, to the rights
of any tenant.

            (d) Lender Remedy for Failure to Perform. In addition to Lender's
remedies following an Event of Default, Borrower acknowledges that Lender shall
have the right (but not the obligation) to complete or perform the Reserve Items
for which amounts have been reserved under this Loan Agreement (or pay the
Leasing Commissions as applicable) and for such purpose, Borrower hereby
appoints Lender its attorney-in-fact with full power of substitution (and which
shall be deemed to be coupled with an interest and irrevocable until the Loan is
paid in full and the Security Instrument is discharged of record, with Borrower
hereby ratifying all that its said attorney shall do by virtue thereof): (i) to
complete or undertake such work in the name of Borrower; (ii) to proceed under
existing contracts or to terminate existing contracts (even where a termination
penalty may be incurred) and employ such contractors, subcontractors, watchmen,
agents, architects and inspectors as Lender determines necessary or desirable
for completion of such work; (iii) to make any additions, changes and
corrections to the scope of the work as Lender deems necessary or desirable for
timely completion; (iv) to pay, settle or compromise all existing bills and
claims which are or may become Liens against the Property or as may be necessary
or desirable for completion of such work; (v) to execute all applications and
certificates in the name of Borrower which may be required to obtain permits and
approvals for such work or completion of such work; (vi) to prosecute and defend
all actions or proceedings in connection with the repair or improvements to the
Property; and (vii) to do any and every act which Borrower might do in its own
behalf to fulfill the terms of Borrower's obligations under this Loan Agreement.
Amounts expended by Lender which exceed amounts held in the Reserve Accounts
shall be added to the Maximum Loan Amount, shall be immediately due and payable,
and shall bear interest at the Default Rate from the date of disbursement until
paid in full.

                                    ARTICLE 6
                      LOAN SECURITY AND RELATED OBLIGATIONS

      6.01. Security Instrument and Assignment of Rents and Leases. Payment of
the Loan and performance of the Obligations shall be secured, inter alia, by the
Security Instrument and the Assignment of Leases and Rents. Borrower shall
execute at closing the Security Instrument and the Assignment of Leases and
Rents and abide by its obligations thereunder.

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                                      -20-
<PAGE>

      6.02. Assignment Of Property Management Contract. Borrower and the
Property Manager, if there is a separate third party Property Manager, shall
execute at closing the Assignment of the Property Management Contract and
Subordination of Management Fees and to abide by their respective obligations
thereunder.

      6.03. Assignment Of Operating Agreements. As security for payment of the
Loan and performance by Borrower of all Obligations, Borrower hereby transfers,
sets over and assigns to Lender all of Borrower's right, title and interest in
and to the Operating Agreements to Lender for security purposes.

      6.04. Pledge Of Property; Grant Of Security Interest. As security for
payment of the Loan and performance by Borrower of all Obligations, Borrower
hereby pledges, assigns, sets over and transfers to Lender, and grants to Lender
a continuing security interest in and to: (a) the Reserve Accounts, (b) all
funds and monies from time to time deposited or held in the Reserve Accounts,
and (c) all interest accrued, if any, with respect to the Reserve Accounts;
provided that Lender shall make disbursements from the Reserve Accounts when, as
and to the extent required by this Loan Agreement. The Parties agree that the
Reserve Accounts are a "deposit account" within the meaning of Article 9 of the
UCC and that this Loan Agreement also constitutes a "security agreement" within
the meaning of Article 9 of the UCC. Borrower shall not, without Lender's prior
written consent, further pledge, assign, transfer or grant any security interest
in any of the Reserve Accounts nor permit any Lien to attach thereto, except as
may be created in favor of Lender in connection with the Loan.

      6.05. Environmental Indemnity Agreement. Borrower and each Guarantor will
be required to execute at closing the Environmental Indemnity and to abide by
their obligations thereunder.

      6.06. Guaranty of Exceptions to Nonrecourse Liability. Each Guarantor will
be required to execute at closing the Guaranty of Exceptions to Nonrecourse
Liability and to abide by its obligations thereunder.

      6.07. Letter of Credit. As security for performance of the those certain
immediate repair items listed in Section 39 and Exhibit I to the Ply Gem Lease,
Borrower shall assign and deliver to Lender on the Closing Date the Letters of
Credit (payable on sight draft), naming Lender as the sole beneficiary thereof.
As security for performance of those certain obligations discussed in that
certain Agreement to Convey (the "AGREEMENT TO CONVEY") dated August 27, 2004
between Ply Gem and Borrower, Borrower shall assign and deliver to Lender on the
Closing Date, the Ohio Letter of Credit (payable on sight draft), naming Lender
as the sole beneficiary thereof. The Letters of Credit and Ohio Letter of Credit
shall: (a) be perpetual or for a term of one year with automatic renewals unless
Lender receives written notice of non-renewal from the issuing financial
institution at least sixty (60) days prior to the expiration of the then current
Letter of Credit; (b) be issued by a domestic financial institution that is not
an Affiliate of Borrower and that has a long-term senior debt rating by S&P of
not less than "A" or such other

                                                              Ply Gem Industries

                                      -21-
<PAGE>

credit rating as is acceptable to Lender; (c) permit full or partial draws
without condition or charge to the beneficiary of the Letter of Credit; ( d) be
freely transferable by the beneficiary of the Letter of Credit (and each
successor as beneficiary) without restriction or charge and (e) otherwise be
acceptable to Lender in all respects. Borrower shall cause the Letter of Credit
to remain valid and effective at all times while those certain immediate repair
items listed in Section 39 and Exhibit I to the Ply Gem Lease remain to be
completed plus an additional thirty (30) days. If Borrower fails to cause the
renewal of the Letters of Credit or Ohio Letter of Credit within thirty (30)
days prior to their expiration thereof, time being of the essence, Lender shall
have the right at any time after the thirtieth (30th) day before such expiration
date to draw on such Letters of Credit or Ohio Letter of Credit and to hold the
proceeds thereof as a cash escrow. The Letters of Credit shall remain in full
force and effect until such time as provided for in Section 39 of the Ply Gem
Lease. The Ohio Letter of Credit shall remain in full force and effect until
such time as provided for in that certain Agreement to Convey.

      So long as no Event of Default has occurred and is continuing, if the
amount Lender requires to be deposited in connection with the Loan with respect
to environmental matters is less than the amount of the applicable Environmental
Escrow ( as defined in the Ply Gem Lease), then Borrower may cause the
substitution of new Letters of Credit in such reduced amounts.

      The Lender's right to draw upon the Ohio Letter of Credit and apply the
proceeds thereof shall be determined by that certain Agreement Re: Ohio Property
of even date herewith entered into between Borrower and Lender.

      If at any time prior to the full payment of the Loan an Event of Default
shall have occurred and be continuing, Lender shall be entitled subject to the
rights of Ply Gem under the Ply Gem Lease to draw upon the Letters of Credit,
and shall use the proceeds of the Letters of Credit to the extent required to
satisfy the Rocky Mount Post-Closing Environmental Obligations, the General
Post-Closing Environmental Obligations or Post-Closing Compliance Obligations,
as defined in the Ply Gem Lease, as applicable, and be entitled, at its sole
discretion, to apply any remaining balance in payment of any charges which have
not been made pursuant to the Loan Documents, and any other sums due to Lender
in connection with any default or the curing thereof, including, without
limitation, any damages incurred by Lender by reason of such default.

      Within ten (10) days of full payment of Loan by Borrower, provided that no
Event of Default has occurred and is continuing, Lender shall return the Letters
of Credit to Borrower and will execute documents reasonably requested by
Borrower to re-assign the Letters of Credit and Ohio Letter of Credit.

                                                              Ply Gem Industries

                                      -22-
<PAGE>

                                    ARTICLE 7
                       SINGLE PURPOSE ENTITY REQUIREMENTS

      7.01. Commitment to be a Single Purpose Entity. Borrower represents,
warrants and covenants to Lender as follows:

            (a) Borrower is a Single Purpose Entity and will continue to be a
Single Purpose Entity at all times until the Loan has been paid in full.

            (b) SPE Equity Owner is a Single Purpose Entity and will continue to
be a Single Purpose Entity at all times until the Loan has been paid in full.

            (c) The Organizational Chart attached to this Loan Agreement is
true, complete and correct.

            (d) The "single purpose entity" provisions included in the
organizational documents of Borrower and SPE Equity Owner shall not, without
Lender's prior written consent, be amended, rescinded or otherwise revoked until
the Loan has been paid in full.

            (e) Prior to the withdrawal or the disassociation of the SPE Equity
Owner from Borrower, Borrower shall immediately appoint a new general partner or
managing member whose organizational documents are substantially similar to
those of the original SPE Equity Owner and, if an opinion letter pertaining to
substantive consolidation was required at closing, deliver new substantive
consolidation opinion letter with respect to the new SPE Equity Owner and its
equity owners which is acceptable in all respects to Lender and to the Rating
Agencies if a Securitization has occurred. (The requirements of this subsection
shall not be construed to permit a Transfer in violation of Article 10.)

      7.02. Definition of Single Purpose Entity.

            (a) Borrower Criteria. With respect to Borrower, a "SINGLE PURPOSE
ENTITY" means a corporation, limited partnership or limited liability company
which, at all times since its formation and thereafter:

                  (i) has not and shall not engage in any business or activity,
other than with respect to Borrower, the ownership, operation and maintenance of
the Property and activities incidental thereto;

                  (ii) has not and shall not, acquire or own any other than with
respect to Borrower, the Property and such incidental Personal Property as may
be necessary for the operation of the Property;

                  (iii) if such entity is (A) a limited liability company (other
than a single member limited liability company which satisfies the requirements
of clause (iv) below), has

                                                              Ply Gem Industries

                                      -23-
<PAGE>

had and shall have at least one member that satisfies the requirements of
Section 7.02(b) below and such member is its managing member, and (B) a limited
partnership, all of its general partners have satisfied and shall satisfy the
requirements of Section 7.02(b) below;

                  (iv) if such entity is a single member limited liability
company, such entity shall be (A) formed and organized under Delaware law and
otherwise comply with all other Rating Agency criteria for single member limited
liability companies (including, without limitation, the inclusion of a
"springing member" and delivery of Delaware single member liability company
opinions acceptable in all respects to Lender and the Rating Agencies); and (B)
such entity shall have at least one (1) Independent Director on its board of
managers; provided however if this Loan becomes part of a securitization and any
Rating Agency requires at least two (2) Independent Directors, Borrower shall
appoint, or cause the appointment of, a second Independent Director;

                  (v) if such entity is a corporation, has had and shall have at
least one (1) Independent Director on its board of directors, provided, however,
if this Loan becomes part of a Securitization and any Rating Agency requires at
least two (2) Independent Directors, Borrower shall appoint, or cause the
appointment of, a second Independent Director;

                  (vi) has and shall preserve its existence as an entity duly
organized, validly existing and in good standing (if applicable) under the laws
of the jurisdiction of its formation or organization;

                  (vii) except as permitted in Section 10.02(b), has not and
shall not merge or consolidate with any other Person;

                  (viii) has not taken, and shall not take, any action to
dissolve, wind-up, terminate or liquidate in whole or in part except as
permitted in Section 10.02(b); to sell, transfer or otherwise dispose of all or
substantially all of its assets except as permitted in or permit the direct or
indirect transfer of any partnership, membership or other Equity Interests, as
applicable, other than Permitted Transfers; issue additional partnership,
membership or other Equity Interests, as applicable; or seek to accomplish any
of the foregoing except as permitted in Section 10.02(b);

                  (ix) shall not, without the unanimous written consent of all
Borrower's partners, members, or shareholders, as applicable, and the written
consent of 100% of the members of the board of directors of the SPE Equity Owner
or board of managers in the case of a single member limited liability company,
including without limitation the Independent Director(s): (A) file or consent to
the filing of any petition, either voluntary or involuntary, to take advantage
of any applicable insolvency, bankruptcy, liquidation or reorganization statute;
(B) seek or consent to the appointment of a receiver, liquidator or any similar
official; or (C) make an assignment for the benefit of creditors;

                                                              Ply Gem Industries

                                      -24-
<PAGE>

                  (x) shall not amend or restate its organizational documents if
such change would adversely impact the requirements set forth in this Section
7.02;

                  (xi) shall not own any subsidiary or make any investment in,
any other Person;

                  (xii) shall not commingle its assets with the assets of any
other Person;

                  (xiii) has not, and shall not, incur any debt, secured or
unsecured, direct or contingent (including, without limitation, guaranteeing
any obligation), other than the Loan and customary unsecured trade payables
incurred in the ordinary course of owning and operating the Property provided
the same are not evidenced by a promissory note, do not exceed, in the
aggregate, at any time a maximum amount of two percent (2%) of the outstanding
principal amount of the Loan and are paid within sixty (60) days of the date
incurred;

                  (xiv) shall maintain its records, books of account, bank
accounts, financial statements, accounting records and other entity documents
separate and apart from those of any other Person;

                  (xv) shall only enter into any contract of agreement with any
general partner, member, shareholder, principal or Affiliate of Borrower or
Guarantor, or any general partner, member, principal or Affiliate thereof, upon
terms and conditions that are intrinsically fair and substantially similar to
those that would be available on an arms-length basis with third parties;

                  (xvi) shall not maintain its assets in such a manner that it
will be costly or difficult to segregate, ascertain or identify its individual
assets from those of any other Person;

                  (xvii) shall not assume or guaranty the debts of any other
Person, hold itself out to be responsible for the debts of another Person, or
otherwise pledge its assets for the benefit of any other Person or hold out its
credit as being available to satisfy the obligations of any other Person;

                  (xviii) shall not make any loans or advances to any other
Person;

                  (xix) shall file its own tax returns as required under federal
and state law, provided that, to the extent permitted by applicable state and
federal laws and GAAP, Borrower may file consolidated tax returns with Corporate
Property Associates 16 Global Incorporated, a Maryland corporation;

                                                              Ply Gem Industries

                                           -25-
<PAGE>

                  (xx) shall hold itself out to the public as a legal entity
separate and distinct from any other Person and conduct its business solely in
its own name and shall correct any known misunderstanding regarding its separate
identity;

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

                  (xxii) shall allocate shared expenses (including, without
limitation, shared office space) and to use separate stationery, invoices and
checks;

                  (xxiii) shall pay (or cause the Property Manager to pay on
behalf of Borrower from Borrower's fund) its own liabilities (including, without
limitation, salaries of its own employees) from its own funds; and

                  (xxiv) shall not acquire obligations or securities of its
partners, members or shareholders, as applicable.

            (b) SPE Equity Owner Criteria. With respect to SPE Equity Owner, a
"SINGLE PURPOSE ENTITY" means a corporation which, at all times since its
formation and thereafter complies in its own right with each of the requirements
contained in Section 7.02(a)(iv) - (xxiv), except that:

                  (i) with respect to Section 7.02(a)(i) the SPE Equity Owner
shall not engage in any business or activity other than being the sole managing
member or general partner, as the case may be, of the Borrower and owing its
Equity Interest in Borrower;

                  (ii) with respect to Section 7.02(a)(ii), the SPE Equity Owner
has not and shall not acquire or own any assets other than its Equity Interest
in Borrower; or

                  (iii) with respect to Section 7.02(a)(xiii) the SPE Equity
Owner has not and shall not incur any debt, secured or unsecured, direct or
contingent (including, without limitation, guaranteeing any obligation).

                                    ARTICLE 8
                         REPRESENTATIONS AND WARRANTIES

      Borrower represents and warrants to Lender that, as of the Closing Date:

      8.01. Organization; Legal Status. Borrower and each SPE Equity Owner are
duly organized, validly existing and in good standing under the laws of its
state of formation and Borrower; (a) is duly qualified to transact business and
is in good standing in the state where the Property is located; and (b) has all
necessary approvals, governmental and otherwise, and full

                                                              Ply Gem Industries

                                      -26-
<PAGE>
power and authority to own, operate and lease the Property and otherwise carry
on its business as now conducted and proposed to be conducted. Borrower's
correct legal name is set forth on the first page of this Loan Agreement.
Borrower is a "registered organization" within the meaning of the UCC and
Borrower's organization identification number issued by its state of
organization is correctly stated on the signature page to this Loan Agreement.

      8.02. Power; Authorization; Enforceable Obligations. Borrower has full
power, authority and legal right to execute, deliver and perform its obligations
under the Loan Documents. Borrower has taken all necessary action to authorize
the borrowing of the Loan on the terms and conditions of this Loan Agreement and
the other Loan Documents, and Borrower has taken all necessary action to
authorize the execution and delivery of its performance under the Loan
Documents. The officer or representative of Borrower the Loan Documents has been
duly authorized and empowered to do so. The Loan Documents constitute legal,
valid and binding obligations of Borrower, enforceable against Borrower in
accordance with their terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and other laws relating to or affecting creditors'
rights generally.

      8.03. No Legal Conflicts. The borrowing of the Loan and Borrower's
execution, delivery and performance of its obligations under the Loan Documents
will not: (a) violate, conflict with, result in a material default (following
notice and/or expiration of the related grace/cure period without cure or both,
as applicable) under any agreement or the other instrument to which Borrower is
a party or by which the Property may be bound or affected, or any Requirements
of Law (including, without limitation, usury laws); (b) result in the creation
or imposition of any Lien whatsoever upon any of its assets, except the Liens
created by the Loan Documents; nor (c) require any authorization or consent
from, or any filing with, any Governmental Authority (except for the recordation
of the Security Instrument in the appropriate land records in the state where
the Property is located and UCC filings relating to the security interest
created hereby and by the Security Instrument which are necessary to perfect
Lender's security interest in the Property).

      8.04. No Litigation. No action, suit, or proceeding or investigation,
judicial, administrative or otherwise (including, without limitation, any
reorganization, bankruptcy, insolvency or similar proceeding) currently is
pending or, to the best of Borrower's knowledge, threatened or contemplated
against or affecting Borrower, SPE Equity Owner, any Guarantor or the Property
that has not been disclosed by Borrower in writing to Lender and which, if
adversely determined, could reasonably be expected to have a Material Adverse
Effect.

      8.05. Business Purpose of Loan. Borrower will use the proceeds of the Loan
solely for the purpose of carrying on a business or commercial enterprise and
not for personal, family or household purposes.

      8.06. Warranty of Title. With the exception of that certain portion of the
Property now known and numbered as 30499 Tracy Road in the City of Toledo and
State of Ohio, Borrower

                                                              Ply Gem Industries

                                     - 27 -

<PAGE>
 has good, insurable fee simple title of record to the Property, free and clear
of all Liens whatsoever except for the Permitted Encumbrances. The Security
Instrument and Assignment of Leases and Rents, when properly recorded in the
appropriate recording office, together with the UCC financing statements
required to be filed in connection therewith, will create (a) a valid, first
priority, perfected lien on the Property subject only to Permitted Encumbrances;
and (b) perfected security interests in and to, and perfected assignments as
collateral of , all Personal Property (including, without limitation, the
Leases), all in accordance with the terms thereof , in each case subject only to
any Permitted Encumbrances. None of the Permitted Encumbrances, individually or
in the aggregate: (a) materially interfere with the benefits of the security
intended to be provided by the Security Instrument, (b) materially and adversely
affect the value of the Property, or (c) materially and adversely impair the use
and operations of the Property. Borrower owns or has rights in all collateral
given as security for the Loan, free and clear of any and all Liens except for
the Liens created in favor of Lender in connection with the Loan. Borrower shall
forever warrant, defend and preserve the title and the validity and priority of
the Liens created in favor of Lender in connection with the Loan and shall
forever warrant and defend the same to Lender against the claims of all persons
whomsoever.

      8.07. Condition of the Property. To the actual knowledge of Borrower,
except as disclosed in the structural inspection report received by Lender, (i)
the Improvements are structurally sound, in good repair and free of defects in
materials and workmanship; (ii) all major building systems located within the
Improvements (including, without limitation, the heating and air conditioning
systems, the electrical systems, plumbing systems; (iii) all liquid and solid
waste disposal, septic and sewer systems) are in good working order and
condition and in compliance with all Requirements of Law; and (iv) the Property
is free from damage caused by fire or other casualty.

      8.08. No Condemnation. No Condemnation proceeding has been commenced or,
to the best of Borrower's knowledge, is contemplated with respect to all or any
portion of the Property or for the relocation of roadways providing access to
the Property.

      8.09. Requirements of Law. To the actual knowledge of Borrower, the
Property and its present and contemplated use and occupancy are in compliance in
all material respects with all Requirements of Law.

      8.10. Operating Permits. To the actual knowledge of Borrower, Borrower or
Ply Gem has obtained all licenses, permits, registrations, certificates and
other approvals, governmental and otherwise (including, without limitation,
zoning, building code, land use and environmental), necessary for the use,
occupancy and operation of the Property and the conduct of its business thereat,
all of which are in full force and effect as of the date hereof. To the actual
knowledge of Borrower without independent investigation, no event or condition
currently exists which could result in the revocation, suspension, of
forfeiture thereof.

                                                              Ply Gem Industries

                                     - 28 -
<PAGE>

      8.11. Separate Tax Lot. The Property is assessed for real estate tax
purposes as one or more wholly independent tax lot or lots, separate from any
adjoining land or improvements not constituting a part of the Property with the
exception of that certain portion of the Property now known and numbered as 125
McGann Row in Middlesex Township, Pennsylvania, provided that Borrower shall
obtain a tax lot endorsement for said portion of the Property.

      8.12. Flood Zone. Except as otherwise disclosed on the survey of the
Property provided to Lender in connection with the Loan, no portion of the
Improvements is located in an area identified by the Federal Emergency
Management Agency or any successor thereto, as an area having special flood
hazards.

      8.13. Adequate Utilities. The Property is adequately served by all
utilities required for the current or contemplated use thereof. To the knowledge
of Borrower, all water and sewer systems are provided to the Property by public
utilities, and the Property has accepted or is equipped to accept such utility
services.

      8.14. Public Access. All public roads and streets necessary for access to
the Property for the current use thereof have been completed, are serviceable,
and are physically and legally open for use by the public.

      8.15. Boundaries. Based upon the surveys prepared and delivered to Lender
in connection with the Loan, to Borrower's actual knowledge, all of the
Improvements lie wholly within the boundaries and, except as shown on such
surveys, building restriction lines of the Property, and no easements or other
encumbrances affecting the Property (including, without limitation, the
Permitted Encumbrances) encroach upon any of the Improvements. Based upon the
surveys prepared and delivered to Lender in connection with the Loan, to
Borrower's actual knowledge, no improvements on adjacent properties encroach
upon the Property.

      8.16. Mechanic Liens. No mechanics', materialmen's or similar liens or
claims have been, or to the actual knowledge of Borrower may be, filed for work,
labor or materials affecting the Property which are or may be Liens prior, equal
or subordinate to the Security Instrument.

      8.17. Assessments. No unpaid assessments for public improvements or
assessments otherwise affecting the Property currently exist or, to the best of
Borrower's knowledge, are pending, nor are improvements contemplated to the
Property that may result in any such assessments.

      8.18. Insurance. Borrower has obtained, or caused to be obtained, and
delivered to Lender all insurance policies Lender has required pursuant to
Section 9.03 of this Loan Agreement, with all Insurance Premiums prepaid
thereunder, reflecting the insurance coverages, amounts and other requirements
set forth in this Loan Agreement. To the actual knowledge of Borrower, no claims
have been made under any of such insurance policies, and no party, including
Borrower, has done, by act or omission, anything which would impair the coverage
of any of such insurance policies.

                                                             Ply Gem Industries

                                      -29-
<PAGE>

      8.19. Leases. With respect to the Leases: (a) the Rent Roll dated as of
the Closing Date is true, complete and correct and the Property is not subject
to Leases other than the Leases identified on such Rent Roll; (b) Borrower has
delivered to Lender complete and accurate copies of all Leases and no verbal or
written agreements exist which terminate, modify or supplement the Leases,
except as otherwise disclosed to Lender in writing and acknowledged by Lender;
(c) each Lease, by its terms, is subordinate to the lien of the Security
Instrument or the subject of a separate subordination agreement subordinating
the Lease to the lien of the Security Instrument; (d) Borrower is the sole owner
of the entire lessor's interest in the Leases and has not assigned, pledged or
otherwise transferred the Rents reserved in the Leases (except to Lender); (e)
all of the Leases are bona fide, arms-length agreements with tenants unrelated
to Borrower, (f) none of the Rents have been collected for more than one (1)
month in advance of the date when due under the Lease (and for such purpose, a
security deposit shall not be deemed rent collected in advance and further
provided that rent under the Ply Gem Lease may be collected no more than three
(3) months in advance); (g) all security deposits reflected on the Rent Roll
have been collected and are being held by Borrower in the full amount reported
on the Rent Roll; (h) all work to be performed by Borrower under each Lease has
been performed as required and has been accepted unconditionally by the
applicable tenant; (i) no offsets or defenses exist in favor of any tenant to
the payment of any portion of the Rents and Borrower has no monetary obligation
to any tenant under any Lease; (j) Borrower has not received notice from any
tenant challenging the validity or enforceability of any Lease; (k) all payments
due from tenants under the Leases are current; (l) no tenant under any Lease is
in default thereunder, or is a debtor in any bankruptcy, reorganization,
insolvency or similar proceeding, or, to the best knowledge of Borrower, has
demonstrated a history of payment problems which suggest financial difficulty;
(m) no Lease contains an option to purchase, right of first refusal to purchase,
or any other similar provision (provided that the provision in the Ply Gem Lease
regarding the Termination Notice for casualty or condemnation, shall not be
deemed an option to purchase); and (n) no brokerage commissions, finders fees or
similar payment obligations are due and unpaid by Borrower or any Affiliate of
Borrower regarding any Lease which have not been disclosed in writing to Lender
and for which adequate amounts have not been set aside in the TI/LC Reserve
Account.

      8.20. Management Agreement. No change in the Property Manager or Property
Management Contract has occurred since the date of the most recent information
submitted to Lender with respect thereto, other than has been disclosed in
writing to Lender.

      8.21. Financial Condition. Borrower currently is solvent and has received
reasonably equivalent value for its granting of the Liens in favor of Lender in
connection with the Loan. No change has occurred in the financial condition of
Borrower, SPE Equity Owner, Guarantor, or any of their respective constituent
equity owners, general partners or managing members which would have a Material
Adverse Effect, since the date of the most recent financial statements submitted
to Lender with respect to each such party, other than has been disclosed in
writing to Lender.

                                                             Ply Gem Industries

                                      -30-
<PAGE>

      8.22. Taxes. Borrower and SPE Equity Owner have filed all federal, state,
county, municipal, and city income tax returns required to have been filed by
them and have paid all taxes and related liabilities which have become due
pursuant to such returns or pursuant to any assessments received by them.
Borrower does not know of any basis for any additional assessment in respect of
any such taxes and related liabilities for prior years.

      8.23. No Foreign Person. Borrower is not a "foreign person" within the
meaning of section 1445(f)(3) of the Tax Code.

      8.24. Federal Regulations. Borrower is not engaged nor will it engage,
principally, or as one of its important activities, in the business of extending
credit for the purpose of "purchasing" or "carrying" any "margin stock" within
the respective meanings of each of the quoted terms under Regulation U or
Regulation G.

      8.25. Investment Company Act; Other Regulations. Borrower is not an
"investment company" or a company "controlled" by an "investment company" within
the meaning of the Investment Company Act of 1940 and the regulations issued
thereunder, each as amended. Borrower is not subject to regulations under any
federal or state statute or regulation which limits its ability to incur
indebtedness.

      8.26. ERISA. (a) Borrower is not and will not be an "employee benefit
plan," as defined in section 3(3) of ERISA, subject to Title I of ERISA, (b)
none of the assets of Borrower constitute or will constitute "plan assets" of
one or more such plans within the meaning of 29 C.F.R. section 2510.3-101, (c)
Borrower is not and will not be a "governmental plan" within the meaning of
section 3(3) of ERISA, and (d) transactions by or with Borrower are not and will
not be subject to state statutes regulating investment of, and fiduciary
obligations with respect to, governmental plans.

      8.27. No Illegal Activity as Source of Funds. No portion of the Property
has been or will be purchased, improved, equipped or furnished with proceeds of
any illegal activity.

      8.28. Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money
Laundering Laws. Borrower, SPE Equity Owner, Borrower's general partner or
managing member (if applicable), each Guarantor, and the Property Manager: (i)
is not currently identified on the OFAC List, and (ii) is not a Person with whom
a citizen of the United States is prohibited to engage in transactions by any
trade embargo, economic sanction, or other prohibition of United States law,
regulation, or Executive Order of the President of the United States. Borrower
agrees to confirm this representation and warranty in writing on an annual basis
if requested by Lender to do so.

      8.29. Brokers and Financial Advisors. Borrower has not dealt with any
financial advisor, broker, underwriter, placement agent or finder in connection
with the transaction contemplated by this Loan Agreement who may be owed a
commission or other compensation which Borrower will not have paid in full as of
the Closing Date.

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      8.30. Complete Disclosure; No Change in Facts or Circumstances. Borrower
has disclosed to Lender all material facts and has not failed to disclose any
material fact that could cause any representation or warranty made herein to be
materially inaccurate, incomplete or misleading. All information provided in or
supplied with the application for Loan, or in satisfaction of the terms thereof,
remains true, complete and correct in all material respects, and no adverse
change in any condition or fact has occurred that would make any of such
information materially inaccurate, incomplete or misleading.

                                    ARTICLE 9
                               BORROWER CONVENANTS

      9.01. Payment of Debt and Performance of Obligations. Borrower shall fully
and punctually pay the Loan and perform the Obligations when and as required by
the Loan Documents. Borrower may not prepay the Loan except in strict accordance
with this Loan Agreement.

      9.02. Payment of Taxes and Other Lienable Charges.

            (a) Payment Obligation. Borrower shall promptly and fully pay by
their due date all Taxes and Other Charges now or hereafter assessed or charged
against the Property as they become due and payable. Borrower shall promptly
cause to be paid and discharged any Lien which may be or become a Lien against
the Property (including, without limitation, mechanic's or materialman's liens).
Except to the extent sums sufficient to pay Taxes or Other Charges have been
deposited with Lender in accordance with this Loan Agreement, Borrower shall
furnish to Lender, upon request, evidence satisfactory to Lender that all Taxes
and Other Charges have been paid and are not delinquent.

            (b) Right to Contest. After prior written notice to Lender,
Borrower, at its own expense, may contest, or permit Ply Gem to contest, by
appropriate legal proceeding, promptly initiated and conducted in good faith
with due diligence, the amount or validity or application in whole or in part of
any of the Taxes or Other Charges, provided that: (i) no Event of Default
exists; (ii) such proceeding suspends the collection of such Taxes or Other
Charges and the Property will not be in danger of being sold for such unpaid
Taxes or Other Charges, or Borrower has paid all of such Taxes or Other Charges
under protest; (iii) such proceeding is permitted under and is conducted in
accordance with the provisions of any other instrument to which Borrower or the
Property is subject and does not constitute a default thereunder; (iv) if
Borrower has not paid the disputed amounts in full under protest, Borrower shall
deposit: with Lender cash (or other security as may be approved, in writing, by
Lender) in an amount Lender deems sufficient to insure the payment of any such
Taxes or Other Charges together with interest and penalties thereon, if any,
provided that after a Securitization, one hundred twenty-five percent (125%) of
the contested amount (plus anticipated penalty and interest) shall be deposited
with Lender; (v) Borrower furnishes to Lender all other items reasonably
requested by Lender; and (vi) upon a final determination thereof, Borrower
promptly pays the amount of any such

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Taxes or Other Charges, together with all costs, interest and penalties which
may be payable in connection therewith. Lender may pay over any security held by
Lender pursuant to this Section to the claimant entitled thereto at any time
when, in Lender's judgment, the entitlement of such claimant is established,
and, to the extent the security posted by Borrower with Lender is insufficient
to pay the full amount due (including, without limitation, any penalties or
interest thereon), Borrower shall be liable for the deficiency. If Lender pays
the deficiency (which Lender shall not be obligated to do), the amount paid by
Lender shall be added to principal, shall bear interest at the Default Rate
until paid in full and payment of such amounts shall be secured by the Security
Instrument and other collateral given to secure the Loan.

      9.03. Insurance.

            (a) Insurance Required During the Loan Term. Borrower, at
Borrower's expense, shall obtain and maintain, or cause to be obtained and
maintained, during the term of the Loan such insurance coverage (including,
without limitation, type, minimum coverage amount, maximum deductible and
acceptable exclusions) for Borrower and the Property as Lender deems reasonably
necessary considering, among other things, the location and occupancy of the
Property and all uses of the Property. Lender reserves the right to periodically
review the insurance coverage Lender has required (types, minimum coverage
amounts and maximum deductibles) and to increase or otherwise change the
required coverage should Lender deem an increase or change to be reasonably
necessary under then existing circumstances. Without limiting Lender's rights
hereunder in any respect, it shall be deemed reasonable for Lender to require no
less coverage than the coverage in place on the Closing Date. Subject to the
foregoing, Lender shall require the following insurance coverage to be effective
during the term of the Loan, coverage amounts and deductibles to be acceptable
to Lender:

                  (i) Property Insurance. Casualty insurance must be maintained
for the Improvements and all Personal Property insuring against any peril now or
hereafter included within the classification "all risks of physical loss" and in
an amount at all times sufficient to prevent Borrower or Lender from becoming a
co-insurer within the terms of the applicable policies, but in any event at all
times equal to the full replacement cost (as reasonably determined and adjusted
from time to time by Lender) of the Improvements and Personal Property (without
taking into account any depreciation and exclusive of excavations, footings and
foundations, landscaping and paving), without any exclusions for windstorms. In
all cases where (A) the outstanding principal balance on the Note exceeds $5
million, or (B) any part of the Improvements constitutes a legal non-conforming
use under the Requirements of Law, such insurance must include "Ordinance of Law
Coverage," with "Time Element," "Loss to the Undamaged Portion of the Building,"
"Demolition Cost" and "Increased Cost of Construction" endorsements, in the
amount of coverage requested by Lender. The policy must name Lender as an
insured mortgagee under a standard mortgagee clause. The maximum deductible
shall be $50,000.00 per occurrence, or, so long as the Ply Gem Lease remains in
effect, such greater amount (up to a maximum of $100,000.00) as shall be
permitted by the Ply Gem Lease,

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<PAGE>

provided, however, that Borrower and Guarantor shall be jointly and severally
liable, on a recourse basis, for deductible amounts in excess of $50,000.00.

                  (ii) Insurance against Acts of Terrorism. The insurance
coverage provided under Section 9.03(a) in effect as of the Closing Date and
during the Loan term must also insure against loss or damage resulting from acts
of terrorism or comparable coverage acceptable to Lender in its discretion. The
deductible shall not exceed $100,000.00.

                  (iii) Boiler and Machinery Insurance. Broad form boiler and
machinery insurance (without exclusion for explosion) and systems breakdown
coverage must be maintained, covering all steam boilers, pipes, turbines,
engines or other pressure vessels, electrical machinery, HVAC equipment,
refrigeration equipment and other similar mechanical equipment located in, on or
about the Property in such amount per accident equal to the full replacement
cost thereof (as reasonably determined and adjusted from time to time by Lender)
and also providing coverage against loss of occupancy or use arising from any
breakdown thereof. The policy must name Lender as an insured under a standard
joint loss clause and provide that all proceeds are to be paid to Lender.

                  (iv) Flood Insurance. Flood insurance must be maintained if
any portion of the Improvements is located in an area identified by the Federal
Emergency Management Agency or any successor thereto as a 100-year flood zone or
special hazard area. The required coverage amount shall be the maximum allowable
per building under the then-current guidelines published by the Federal
Emergency Management Agency or any successor thereto. The policy must name
Lender as an insured mortgagee under a standard mortgagee clause. The deductible
may not exceed the greater of five percent (5%) of net cash flow from the
Property, as determined by Lender, or $25,000.00.

                  (v) Business Interruption. Business interruption insurance
must by maintained in an amount sufficient to provide the lost rental income for
the Property for a period of not less than 1 year from the date of Casualty,
with a 6 month extended period of indemnity. For purposes of this coverage,
"rental income" means the sum of (A) the total, then ascertainable Rents payable
under the Leases and (B) the total ascertainable amount of all other payments to
be received by Borrower from third parties which are the legal obligation of the
tenants, reduced to the extent such amounts would not be received because of
operating expenses not incurred during the period that any portion of the
Property cannot be occupied as a result of the Casualty. The policy must name
Lender as a loss payee and provide that all proceeds are to be paid to Lender.

                  (vi) Liability Insurance. Commercial general liability
insurance coverage must be maintained, covering bodily injury or death and
property damage, including all legal liability to the extent insurable and all
court costs, legal fees and expenses, arising out of, or connected with, the
possession, use, leasing, operation, maintenance or condition of the Property in
such amounts generally required by institutional lenders for properties
comparable

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                                      -34-
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to the Property but in no event for an amount less than $15 million per
occurrence and $15 million in the aggregate. The required coverage must provide
for claims to be made on an occurrence basis. The policy must name Lender as an
additional insured. The insurance coverage required under this subsection (vi)
may be satisfied by a layering of Commercial General Liability, Umbrella and
Excess Liability Policies, but in no event will the Commercial General Liability
policy be written for an amount less than $1,000,000 per occurrence and
$2,000,000 aggregate for bodily injury and property damage liability, and in no
event shall the Umbrella and Excess Liability policy be written for an amount
of less than $5,000,000. Lender may required umbrella coverage which will be
evaluated on a case by case basis.

                  (vii) Workers' Compensation Insurance. Workers' compensation
insurance must be maintained with respect of all employees employed at the
Property, in compliance with the laws of the state in which the Property is
located.

                  (viii) Earthquake Insurance. If the Property is located in a
high earthquake hazard area, earthquake must be maintained in form, amount and
with deductibles satisfactory to Lender.

                  (ix) Other Coverage. Without limiting Lender's rights under
this Section 9.03(a), Lender may also require Borrower to maintain builder's
risk insurance during any period of construction, renovation or alteration of
the Improvements, motor vehicles liability insurance in connection with all
owned or non-owned motor vehicles used in connection with the management or
maintenance of the Property, sinkhole coverage, fidelity bond coverage for
employees handling Rents and other income from the Property, environmental
insurance and other insurance with respect to the Property or on any
replacements or substitutions thereof or additions thereto and in an amount
covering losses to the extent of full replacement cost value against
condemnation and/or other insurable hazards or casualties which at the time are
commonly insured against in the case of property similarly situated, due regard
being given to the height and type of buildings, their construction, location,
use and occupancy. If any construction, renovation or alteration of the
Improvements is done by Ply Gem under the Ply Gem Lease, then Borrower shall
cause Ply Gem to comply with the provisions of the Ply Gem Lease relating
thereto. In furtherance of the forgoing, Lender acknowledges and agrees that it
may only require Borrower to obtain and maintain environmental insurance or
cause the same to be obtained and maintained under the following circumstances:
(i) to the extent that an environmental condition arises that is subject to
Environmental Law and affects the Property and such condition was not known to
Lender on or before the date hereof or disclosed in the Environmental Report and
the cost of Remediation thereof, as reasonably determined by Lender will be more
than $500,000; or (ii) to the extent the environmental condition was known to
Lender on or before the date hereof or disclosed in the Environmental Report and
there has been a material change in said condition such that (a) the cost to
remediate has increased by more than $500,000.00 and any reserve or additional
security provided to remediate such condition is not sufficient to cover such
increased cost, or

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                                      -35-
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(b) the condition shall materially impair the use and operation of the business
of the tenant at the property;

            (x) Tenant's Insurance. Notwithstanding anything in the Section 9.03
to the contrary, and provided that (i) the Ply Gem Lease or an Acceptable
Replacement Lease, as applicable, remains in effect with Ply Gem, or an
Acceptable Replacement Tenant, as applicable, as the tenant thereunder, (ii) Ply
Gem or an Acceptable Replacement Tenant is not in default beyond the expiration
of any applicable notice and cure period under the Ply Gem Lease or an
Acceptable Replacement Lease, as applicable, and (iii) Ply Gem or an Acceptable
Replacement Tenant carries all insurance required under the Ply Gem Lease or an
Acceptable Replacement Lease, as applicable, then the requirements of Sections
9.03(a) shall be deemed satisfied, except that with respect to Borrower's
continuing obligation to maintain terrorism insurance, Borrower shall cause Ply
Gem or an Acceptable Replacement Tenant at all times to maintain terrorism
insurance in such amounts as are customary for properties of sizes, types and
uses as the Property. Notwithstanding the foregoing, so long as Ply Gem
maintains a self-insured retention limit in excess of $50,000.00, Borrower shall
maintain excess liability insurance with a self-insured retention not in excess
of $50,000.00 and otherwise meeting the requirements of this Section 9.03
hereof.

      (b) Qualified Insurers; Lender's Consent. All insurance must be issued
under valid and enforceable policies of insurance acceptable to Lender and
issued by one or more domestic primary insurers authorized to issue insurance in
the state in which the Property is located. Each insurer must have a minimum
investment grade rating of "A" or better from S & P and an A.M. Best rating of
A:IX or better, or from an equivalent comparable credit rating agency acceptable
to Lender. With respect to insurance required under Section 9.03(a)(i) above,
Lender agrees to accept policies written by Factory Mutual Insurance Company
("F.M. GLOBAL") during any period that F.M. Global does not have an A or better
S & P claims paying ability rating, so long as F.M. Global has Best's rating of
A:IX or above. Lender's approval of insurance coverage at any time is not a
representation or warranty concerning the sufficiency of any coverage or the
solvency of any insurer, and Lender shall not be responsible for, nor incur any
liability for, the insolvency of the insurer or other failure of the insurer to
perform.

      (c) Policy Requirements. All policies must be for a term of not less than
a year and name Lender as a beneficiary of such coverage as provided in this
Section 9.03 or otherwise identified by Lender. Each policy must also contain:
(i) an endorsement or provision that permits recovery by Lender notwithstanding
the negligent or willful acts or omissions of Borrower, (ii) a waiver of
subrogation endorsement as to Lender to the extent available at commercially
reasonable rates; (iii) a provision that prohibits cancellation or termination
before the expiration date, denial of coverage upon renewal, or material
modification without at least thirty (30) days prior written notice to Lender in
each instance; and (iv) effective waivers by the insurer of all claims for
Insurance Premiums against Lender. If the required insurance coverage is to be
provided under a blanket policy covering the Property and other properties and
assets not part of the Property, such blanket policy must specify the portion of
the total coverage that is

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                                      -36-
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allocated to the Property and any sublimit in such blanket policy which is
applicable to the Property and shall otherwise comply in all respects with the
requirements of this Section 9.03.

            (d) Evidence of Insurance. Borrower must deliver to Lender on or
before the Closing Date either (i) the original of each insurance policy
required hereunder, (ii) a copy of each original policy certified by the
insurance agent to be a true, correct and complete copy of the original; (iii)
the insurance binder (Acord Form 25S provided by the insurance carrier) (as well
as proof of payment of the first years premium); (iv) a certificate of insurance
(Acord Form 28 provided by the insurance agent of, where form Acord Form 28 is
not available, a certificate of insurance that confirms the same rights as are
confirmed by form Acord Form 28), (v) an original letter from the insurance
carrier on the primary layer, signed by an officer of such carrier, attaching
the form of insurance policy pursuant to which coverage will be provided (and,
if applicable, an original letter from each insurance carrier on the excess
layers, signed by an officer of each such carrier, agreeing that it is bound to
the form of insurance policy delivered by the primary carrier (i.e., agreeing to
"follow form" to the primary carrier)); and (A) each such letter must set forth
the date by which the policy will be delivered to the Lender, which must not be
more than sixty (60) days following closing and (B) include as attachments all
mortgagee/loss payee/additional insured endorsements. Evidence of the required
coverage for the first year of the Loan (as well as proof of payment of the
first year's premium) must be delivered to Lender on or before the Closing Date
and thereafter not less than ten (10) days prior to the expiration date of each
policy.

            (e) Lender's Right to Obtain Insurance for Borrower. If Borrower
fails to deliver to Lender the evidence of the insurance coverage required by
this Loan Agreement and does not cure such deficiency within ten (10) days after
Lender's notice of nondelivery, an Event of Default shall be deemed to have
occurred (without further cure period or notice) and Lender may procure such
insurance at Borrower's expense, without prejudice to Lender's rights upon an
Event of Default. All amounts advanced by Lender to procure the required
insurance shall be added to principal, secured by the Security Instrument and
bear interest at the Default Rate. Lender shall not be responsible for, nor
incur any liability for the insolvency of the insurer or other failure of the
insurer to perform, even though Lender has caused the insurance to be placed
with the insurer after Borrower's failure to furnish such insurance.

            (f) Additional Insurance. Borrower shall not obtain insurance for
the Property in addition to that required by Lender without Lender's prior
written consent, which consent will not be unreasonably withheld provided that
(i) Lender is named insured on such insurance, (ii) Lender receives evidence of
such insurance as required by subsection (d) above, and (iii) such insurance
complies with all of the applicable requirements set forth in this Loan
Agreement.

      9.04. Obligations upon Condemnation or Casualty. If the Property, or any
portion thereof, shall be damaged or destroyed by a Casualty or become subject
to any Condemnation, the following shall apply:

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<PAGE>

      (a) Generally. Upon receiving notice thereof, Borrower shall promptly
notify Lender, in writing, of any actual or threatened Condemnation or of any
Casualty that damages or renders unusable the Property or any part thereof and,
except as otherwise provided below, shall promptly and diligently pursue, or
cause to be pursued, Borrower's claim for a Condemnation award or insurance
proceeds, as applicable. Borrower shall not make any agreement in lieu of
Condemnation or accept any Condemnation award without Lender's prior written
consent, which shall not be unreasonably withheld or delayed. Borrower shall not
accept any settlement of insurance proceeds with respect to a Casualty without
Lender's prior written consent, which shall not be unreasonably withheld or
delayed. If requested by Lender, Borrower agrees to provide copies to Lender of
all notices or filings made or received by Borrower in connection with the
Casualty or Condemnation or with respect to collection of the insurance proceeds
or Condemnation award, as applicable. Notwithstanding that a Casualty or
Condemnation has occurred, or that rights to a Condemnation award or insurance
proceeds are pending, Borrower shall continue to pay the Loan at the time and in
the manner provided in this Loan Agreement.

      (b) Lender Right to Pursue Claim. Borrower hereby grants Lender the
authority, at Lender's option, subject to the rights of Ply Gem under the Ply
Gem Lease, either : (i) to settle and adjust any claim arising with respect to
the Casualty or Condemnation without Borrower's consent, or (ii) to allow
Borrower to settle and adjust such claim; provided that, in either case, the
insurance proceeds or Condemnation award in excess of $250,000, as applicable,
is paid directly to Lender. Borrower hereby appoints Lender its attorney -in-
fact with full power of substitution (and which shall be deemed to coupled with
an interest and irrevocable until the Loan is paid and the Security Instrument
is discharged of record, with Borrower hereby ratifying all that its said
attorney shall do by virtue thereof) to endorse any agreements, instruments or
drafts received in connection with a Casualty or Condemnation. If any portion
of the insurance proceeds or Condemnation award in excess of $250,000, as
applicable, should be paid directly to Borrower, Borrower shall be deemed to
hold such amounts in trust for Lender and shall promptly remit such amounts to
Lender. If the Property is sold, through foreclosure or otherwise, prior to the
receipt of the Condemnation award, Lender shall have the right, whether or not a
deficiency judgement on the Note shall have been sought, recovered or denied,
to receive the proceeds of such sale in an amount sufficient to pay the Loan in
full subject, however to the rights of Ply Gem or Acceptable Replacement Tenant
under the Ply Gem Lease or Acceptable Replacement Lease. All expenses incurred
by lender in the settlement and collection of amounts paid with respect to a
Casualty or Condemnation (including, without limitation, reasonable legal fees
and expenses) shall be deducted and reimbursed to Lender from the insurance
proceeds or Condemnation award, as applicable, prior to any other application
thereof. The insurance proceeds or Condemnation award paid or payable on account
of a Casualty or Condemnation, as applicable (including all business
interruption insurance proceeds paid as a result of such Casualty or
Condemnation), less expenses to be reimbursed to Lender hereunder, is referred
to herein as the "RESTORATION PROCEEDS."

      (c) Application of Restoration Proceeds; Restoration Obligations. Except
as specifically hereafter provided in subsection (d) below, Lender may, in its
sole discretion, either

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                                      -38-
<PAGE>
            (i)   apply the Restoration Proceeds to payment of the Loan, whether
or not then due and payable, or (ii) hold and release the Restoration Proceeds
to Borrower (A) for the costs of Restoration undertaken by Borrower in
accordance with this Loan Agreement and (B) to cover any shortfall in Operating
Income as a result of such Casualty or Condemnation that is necessary to pay in
full the debt service payments due from Borrower on each Payment Due Date and
other Operating Expenses falling due during the period until Restoration is
completed; provided, however, that Lender shall have no obligation to release
Restoration Proceeds to fund amounts contemplated by clause (B) unless (1)
Lender is satisfied that Restoration Proceeds are sufficient to pay in full the
estimated cost to complete Restoration and (2) all Operating Expenses to be
funded with Restoration Proceeds are approved by Lender. If Lender applies
Restoration Proceeds to payment of the Loan and the Loan is still outstanding,
interest will continue to accrue and be due on the unpaid principal at the
Applicable Interest Rate. If Lender makes the Restoration Proceeds available to
Borrower for Restoration, Borrower shall diligently pursue, or cause to be
diligently pursued, Restoration so as to restore the Property to at least equal
value and substantially the same character as existed immediately prior to such
Casualty or Condemnation. All plans and specifications for the Restoration and
all contractors, subcontractors and materialmen to be engaged in the
Restoration, as well as the contracts under which they have been engaged, shall
be subject to Lender's prior review and approval. Lender may engage, at
Borrower's expense, an independent engineer or inspector to assist Lender in
its review of the approvals requested of Lender in connection with the
Restoration and to periodically inspect the Restoration in progress and upon
substantial completion.

      (d) Condition to Release of Restoration Proceeds for Restoration. Lender
agrees to make the Restoration Proceeds available to Borrower for Restoration
as long as.

            (i)   The Restoration Proceeds recovered are less than the
outstanding principal balance of the Loan.

            (ii)  No Event of Default exists and no Event of Default then
exists under the Ply Gem Lease or Acceptable Replacement Lease, as applicable.

            (iii) Borrower demonstrates to Lender's satisfaction that the
Restoration Proceeds are sufficient to pay in full the estimated cost to
complete Restoration and, if the Ply Gem Lease or an Acceptable Replacement
Lease is not in effect, any shortfalls in Operating Income as a result of such
Casualty or Condemnation that are anticipated until Restoration is substantially
completed, or, if the Restoration Proceeds are determined by Lender to be
insufficient to pay such costs in full, Borrower deposits with Lender, in cash
or by a cash equivalent acceptable to Lender, the additional amount estimated by
Lender to be necessary to pay the full cost of Restoration ("RESTORATION
DEFICIENCY DEPOSIT")

            (iv)  The Casualty or Condemnation has not occurred in the six (6)
months prior to the Maturity Date.

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                                      -39-
<PAGE>

            (v) Restoration can be completed not later than the earlier of (A)
twelve (12) months from the date the Casualty or Condemnation occurred, (B) the
earliest date by which completion is required under the Ply Gem Lease, or an
Acceptable Replacement Lease, (C) the earliest date by which completion is
required under the Requirements of Law to preserve the right to rebuild the
Improvements as they existed prior to the Casualty or Condemnation, (D) the
expiration of Borrower's business interruption insurance, or (E) six (6) months
prior to the Maturity Date.

            (vi) If a Condemnation has occurred, less than 10% of the Land is
taken and the land taken is along the perimeter or periphery of the Land, and no
portion of the Improvements are taken.

            (vii) If a Casualty has occurred, less than 25% of the total floor
area of the Improvements is damaged or rendered unusable by the Casualty and
Borrower demonstrates to Lender's satisfaction that a reasonable means of access
exists to the Property and within the Improvements unaffected by Casualty.

            (viii) Borrower demonstrates to Lender's satisfaction that the Ply
Gem Lease or an Acceptable Replacement Lease, as applicable, will continue in
full force and effect without rent abatement following Restoration and that,
upon completion of Restoration, the net cash flow of the Property will be
restored to a level sufficient to cover all Operating Expenses of the Property,
including without limitation, supporting a Debt Service Coverage Ratio at least
equal to, or greater than 1.20 to 1.0.

            (ix) The Property and its use after completion of Restoration will
be in compliance with and permitted under, all Requirements of Law.

      (e) Disbursement Procedure; Holdback. If the Restoration Proceeds will be
made available by Lender to Borrower for Restoration and the estimated cost of
Restoration approved by Lender (together with all other amounts then held by
Borrower pursuant to this subsection (c)) is less than $250,000, Lender shall
disburse the entire amount of the Restoration Proceeds to Borrower or to Ply Gem
at the direction of Borrower, and Borrower hereby covenants and agrees to use,
or to cause Ply Gem to use, the Restoration Proceeds solely for Restoration
performed in accordance with this Loan Agreement. If, however, the estimated
cost of Restoration approved by Lender (together with all other amounts then
held by Borrower pursuant to this subsection (e)) is more than $250,000, Lender
may retain the Restoration Proceeds in a non-interest bearing escrow account and
make periodic disbursement to Borrower (or to Ply Gem at the direction of
Borrower) as follows:

            (i) Disbursements for Restoration

                  (A) Lender will disburse Restoration Proceeds for the costs of
Restoration to, or as directed by, Borrower from time to time during the course
of the Restoration, upon receipt of evidence reasonably satisfactory to Lender
that (1) all materials
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                                      -40-
<PAGE>

installed and work and labor performed in connection with the Restoration have
been paid in full (except to the extent that they are to be paid out of the
requested disbursement), and (2) there exist no notices of pendency,
stop orders, mechanic's or materialman' s liens or notices of intention to file
same, or any other Liens of any nature whatsoever on the Property arising out of
the Restoration which have not either been fully bonded and discharged of record
or, in the alternative, fully insured to Lender's reasonable satisfaction by the
title company insuring the Lien of the Security Instrument.

                  (B) Lender may limit disbursements to not more than one (1)
per month.

                  (C ) Lender may hold-back from each requested (disbursement an
amount equal to the greater of (1)ten percent (10%) of the requested
disbursement) or (2) the amount which Borrower is permitted to withhold under
its contract with the contractor or supplier to be paid with the proceeds of
such disbursement (either a "RESTORATION HOLDBACK"). Amounts held as the
Restoration Holdback shall be disbursed once: (1) Lender receives Substantially
evidence that Restoration has been substantially Completed (as defined below) in
accordance with all Requirements of Law; (2) Lender receives satisfactory
evidence that all Restoration costs have been paid in full or will be fully paid
from the remaining Restoration Proceeds and the Restoration Holdback; and (3)
Lender receives, at Lender's option, a search of title to the Property,
effective as of the date on which the restoration Holdback is to be disbursed,
showing no liens other than the permitted Encumbrances or an endorsement to its
Title Insurance Policy which updates the effective date of such policy to the
date on which the Restoration Holdback is to be disbursed and which shows no
Line since the date of recordation of the Security Instrument (other than the
permitted Encumbrances). As used herein, the term "SUBSTANTIALLY COMPLETED"
shall mean the completion of construction, except for miner details of
construction, decoration and mechanical adjustment, the non-completion of which
will not materially interfere with the use and occupancy of the Property for
normal business purposes.

                  (D) Notwithstanding subsection (C) above, Lender may release
from the Restoration Holdback payments to a contractor or supplier if: (1)
Lender receives satisfactory evidence that such contractor has satisfactory
completed its contract with Borrower; (2) such contractor or supplier delivers
to Lender an acceptable written waiver of its mechanic's lien, in recordable
form; and (3) Borrower provides written consent from the surety company, if any,
which has issued a payment or performance bond with respect to such contractor
or supplier.

            (ii) Disbursements for Shortfalls in Operating Income. Provided that
Lender determines that the Restoration Proceeds are sufficient to pay in full
the estimated cost to complete Restoration Proceeds not reserved for Restoration
to pay the shortfall in Operating Income necessary to pay (A) first, the debt
service payments due from Borrower on each Payment Due Date falling due from the
date of the Casualty or Condemnation through the date on which Restoration is
substantially completed and (B)
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provided the Ply Gem Lease has been terminated, and no Acceptable Replacement
Lease is them in effect, any Operating Expenses approved by Lender. Lender may
require satisfactory evidence that Operating Expenses to be paid have been
incurred any may issue payments directly to the Person entitled to the payment
claimed as an Operating Expense.

            (iii) Restoration Proceeds Deemed Insufficient. If, in Lender's
reasonable judgment, at any time during Restoration, the undisbursed portion of
the Restoration Proceeds shall not be sufficient to pay the costs remaining for
Restoration to be completed or to pay any shortfall in Operating Income needed
to pay in full Borrower's debt service payments on the Loan and Operating
Expenses anticipated to be incurred during the period of Restoration, Borrower
shall deposit the deficiency with Lender, in cash or by a cash equivalent
acceptable to Lender (also called a "RESTORATION DEFICIENCY DEPOSIT"), within
ten (10) days after Lender's notice of such deficiency, and no further
disbursement of the Restoration Proceeds will be made until such funds are
deposited. Amounts held by Lender as the Restoration Deficiency Deposit shall be
held by Lender in an interest bearing account and shall be disbursed accordance
with this Section 9.04.

            (iv) Consequence of Event of Default. If a default under the Ply Gem
Lease has occurred and is continuing or the Ply Gem Lease has been terminated
and no Acceptable Replacement Lease is in full force and effect or and Event of
Default beyond any applicable notice and/or cure period, Lender shall not be
obligated to disburse Restoration Proceeds or amounts from the Restoration
Holdback, and upon the occurrence of and Event of Default, any undisbursed
portion of the Restoration Proceeds (including the Restoration Deficiency
Deposit and the Restoration Holdback) may, at Lender's option, be applied
against the Loan, whether or not then due or accelerated, in such order and
manner as Lender determines.

            (v) Surplus Restoration Proceeds After Restoration Completion. Any
Restoration Proceeds remaining after full payment of Restoration costs and
unpaid expenses due to Lender for which Lender is permitted reimbursement under
this Section 9.04 shall be released to Borrower provided no Event of Default
exists, and Borrower delivers evidence satisfactory to Lender that (i)
Restoration has been fully completed in accordance with all Requirements of Law
and (ii) the Property is free and clear of all Liens which may be asserted with
respect to the Restoration.

      (f) If as a result of a Casualty or Condemnation, the tenant under the Ply
Gem Lease makes a rejectable offer under Paragraph 18 thereof, to terminate the
Ply Gem Lease as to any Related Premises ( as defined in the Ply Gem Lease )
which is accepted by Borrower, then upon satisfaction of the Casualty Release
Criteria (hereinafter defined), Lender shall deliver to Borrower a release or
partial release of the Security Instrument for the Related Premises with respect
to which the Ply Gem Lease is terminated (hereinafter the "AFFECTED PREMISES").
As used herein, the term "CASUALTY RELEASE CRITERIA" shall mean and refer to the
following: (i) Borrower shall have delivered to Lender a sum of money in
immediately available funds (the
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"CASUALTY RELEASE AMOUNT" equal to 115% of the portion of the then current
outstanding principal balance of the Note allocated to the Affected Premises;
and (ii) the Borrower shall not then be in default hereunder or the other Loan
Documents beyond any applicable notice and/or cure period. Upon Lender's receipt
of the Casualty Release Amount, Lender shall apply such sum at par, without
prepayment penalty or premium or defeasance payment, to reduction of the
outstanding principal balance of the Note, and thereafter, at Lender's option in
its sole discretion, monthly payments due under the Note shall be recalculated
based upon the remaining outstanding Principal balance of the Note, the
remainder of the original amortization schedule of the Note and the remaining
term of the Loan. Borrower shall not reject any offer to terminate the Ply Gem
Lease with respect to an Affected Premises, without first obtaining the written
consent of Lender.

            (g) Notwithstanding any provision of this Section 9.04 to the
contrary, provided that (i) the Ply Gem Lease remains in effect with Ply Gem as
the tenant thereunder, and (ii) Ply Gem is not in default beyond the expiration
of any applicable notice and cure period under the Ply Gem Lease, then (A) the
requirements of Section 9.04(d)(ii) hereof shall be deemed satisfied, unless a
monetary Event of Default or a material non-monetary Event of Default then
exists under the Note, this Loan Agreement or any of the other Loan Documents,
and (B) the requirements of Sections 9.04(d)(v), (vi), (vii) and hereof shall be
deemed satisfied, unless Lender has reasonably determined that the Restoration
cannot be reasonably completed on or before the date that is six (6) months
prior to the Maturity Date.

      9.05. Inspections and Right of Entry. Subject to the terms of the Ply Gem
Lease, Lender and its agents may enter the Property upon prior notice to
Borrower (notice to be given unless an Event of Default or an emergency exists,
as determined by Lender in good faith) to inspect the Property and Borrower's
books and records relating to the Property. In making such entry and inspection,
Lender agrees to use reasonable efforts to minimize disturbance to Borrower and
tenants of the Property. Lender and its agents shall have access, at all
reasonable times, to the Property, including, without limitation, all contracts,
plans and specifications, permits, licenses and approvals required or obtained
in connection with the property.

      9.06. Leases and Rents.

            (a) Right to Enter into New Leases. Lender's prior written consent
shall be required for all Leases at the Property, which consent shall not be
unreasonably withheld, provided that Lender's consent shall not be required for
assignments and subleases which do not require the consent of the Borrower as
landlord under the Ply Gem Lease. Upon request, Borrower shall furnish Lender
with executed copies of all Leases. Lender acknowledges receipt and approval of
the Ply Gem Lease, which Ply Gem Lease shall constitute one of the Leases.

            (b) Leasing Decisions. Borrower shall not: (i) amend or supplement
any Lease or waive any term thereof (including, without limitation, shortening
the lease term, reducing rents, granting rent abatements, or accepting a
surrender of all or any portion of the

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leased space) without Lender's prior written consent, which shall not be
unreasonably withheld or delayed; (ii) cancel or terminate any Lease (or in the
case of the Ply Gem Lease, reject any termination offer); (iii) except to the
extent that such consent is not required under the Ply Gem Lease, consent to a
tenant's assignment of its Lease or subleasing of space without Lender's prior
written consent, which shall not be unreasonably withheld or delayed; or (iv)
amend, supplement, waive or terminate any Lease Guaranty without Lender's prior
written consent, which stall not be unreasonably withheld or delayed; provided
that none of the foregoing actions (taking into account the planned alternative
use of the affected space in the case of termination, rent reduction, surrender
of space or shortening of term) will have a Material Adverse Effect on the value
of the Property taken as a whole and such Lease, as amended, supplemented or
waived is otherwise in compliance with the requirements of Section 9.06 (a)
hereof; provided, however, that in all events Borrower shall have the right to
waive any default under Paragraph 22(a)(iv) and (v) of the Ply Gem Lease without
Lender's consent. Termination of a Lease (other than a Major Lease) with a
tenant who is in default beyond applicable notice and grace/cure periods shall
not be considered action which has a Material Adverse Effect on the value of the
Property taken as a whole. Any action with respect to any Lease that does not
satisfy the requirements set forth in this Section requires Lender's prior
written approval at Borrower's expense (including reasonable legal fees).
Borrower shall promptly deliver to Lender a copy of all instruments documenting
the action taken, together with written certification from a Responsible Officer
that (x) the copies delivered are true, complete and correct copies of the
materials represented thereby and (y) Borrower has satisfied all conditions of
this Section. Lender's acceptance of Borrower's certification or a copy of such
Lease materials shall not be deemed a waiver of the requirements of this Section
if the action taken is not in compliance herewith. Lender agrees that to the
extent any action by Ply Gem requires Lender's consent, such consent shall not
be unreasonably withheld or delayed. If Borrower submits to Lender a written
request for approval with respect to a proposed Lease (or a proposed extension,
modification or expansion of an existing Lease) and Lender fails to approve or
disapprove any such action within 15 Business Days after Lender receives from
Borrower such request together with a copy of the final version of such proposed
Lease(or proposed extension, modification or expansion of an existing Lease),
such action shall be deemed approved, provided that Lender will only be deemed
to have given such approval if, and only if, such request includes all to the
supporting documentation reasonably necessary for Lender to make a decision
regarding such request, as determined by Lender, and includes the following in
all capital, bolded, block letters on the first page thereof:

            "THE FOLLOWING REQUEST REQUIRES A RESPONSE WITHIN 15 BUSINESS DAYS
            OF RECEIPT. FAILURE TO DO SO WILL BE DEEMED AND APPROVAL OF THE
            REQUEST."

            (c) Observance of Lessor Obligations. Borrower (i) shall observe and
perform all obligations imposed upon the lessor under the Lease and shall not do
or permit to be done anything to impair the value of any of the Leases as
security for the Loan; (ii) upon Lender's request, shall promptly send copies to
Lender of all notices of default which Borrower

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<PAGE>

shall send or receive (or may have sent or received) under any non-residential
Lease; (iii) shall diligently enforce in a commercially reasonable manner all of
the material terms, covenants and conditions contained in the Leases to be
observed or performed by the tenant, including but not limited to those items
listed on Exhibit I to the Ply Gem Lease; provided, however, that Borrower may,
in its sole discretion, waive any breach by Ply Gem or any Acceptable
Replacement Tenant of any reporting requirement in the Ply Gem Lease or
Acceptable Replacement Lease, (iv) shall not collect any Rents more than one (1)
month in advance of the date when due under the Lease (and for this purpose a
security deposit shall not be deemed rent collected in advance and provided
further that rent under the Ply Gem Lease or Acceptable Replacement Lease may be
collected no more than three (3) months in advance); and (v) shall not execute
any assignment or pledge of the lessor's interest in any of the Leases or the
Rents (other than in connection with the Loan).

            (d) Landlord Waivers. Lender acknowledges that Borrower may enter
into certain Landlord Waivers with respect to Ply Gem's equipment, personal
property and inventory located in, on and around the Property, and that Borrower
shall be entitled to enter into Landlord Waivers in the future without Lender's
consent so long as they are entered into in a form approved in advance by Lender
and in the normal course of business and contain customary provisions and
otherwise reasonably acceptable to Lender requiring the person, firm or entity
that finances and/or leases Ply Gem's FF&E to promptly remove Ply Gem's FF&E
within a reasonable period of time after a default occurs under the Ply Gem
Lease. In addition, Borrower shall be entitled to enter into a consent (and
Lender shall also execute such consent if requested by Borrower) to any
encumbrance by Ply Gem of its leasehold interest so long as such consent
contains reasonable and customary landlord protections. Lender has no obligation
to enter into a nondisturbance or recognition agreement with any such leasehold
mortgagee unless and until such time as such leasehold mortgagee shall succeed
to the interest of Ply Gem under the Ply Gem Lease, in which case Mortgagee
shall enter into a subordination, nondisturbance and attornment agreement
substantially the same in form and substance to the subordination,
nondisturbance and attornment agreement entered into among Borrower, Ply Gem and
Lender in connection with the closing of the Loan, so long as any and all
monetary defaults under the Ply Gem Lease have been cured by such leasehold
mortgagee.

            9.07. Use of Property. Subject to the rights of Ply Gem under the
Ply Gem Lease, Borrower shall not allow changes in the use of the Property
without Lender's prior written consent, which shall not be unreasonably
withheld, delayed or conditioned as to uses permitted by law and under zoning.
Borrower shall not initiate, join in, or consent to any change in any private
restrictive covenant or zoning or land use ordinance limiting or defining the
uses which may be made of the Property. If use of all or any portion of the
Property is or shall become a nonconforming use, Borrower will not cause or
permit the nonconforming use to be discontinued or the nonconforming portion of
the Property to be abandoned without Lender's prior written consent.

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<PAGE>

      9.08. Maintenance of Property. Borrower shall maintain or cause Ply Gem or
any Acceptable Replacement Tenant to maintain the Property in a good and safe
condition and repair. No portion of the Property shall be removed, demolished or
materially altered (except for normal repair or replacement or, with respect to
the Personal Property belonging to Ply Gem, as otherwise permitted by the terms
of the Ply Gem Lease) without Lender's prior written consent, which consent
shall not be unreasonably withheld, delayed or conditioned. Unless the Ply Gem
Lease is in effect and Ply Gem makes a termination offer pursuant to the terms
of Paragraph 18 of the Ply Gem Lease, which termination offer shall be
sufficient for and shall be used to pay the applicable portion of the Loan in
strict accordance with Section 9.04(f) of this Loan Agreement or to substitute a
Property pursuant to Article 19 of this Loan Agreement, which Substitution
Property Borrower shall maintain, or cause Ply Gem or any Acceptable Replacement
Tenant to maintain, the Substitution Property in a good and safe condition and
repair, Borrower shall promptly repair or replace any portion of the Property
(or cause the prompt performance thereof) which may become damaged, worn or
dilapidated.

      9.09. Waste. Borrower shall not commit or suffer any waste of the
Property or do or permit to be done thereon anything that may in any way impair
the value of the Property in any material respect (in Lender's sole good faith
judgment) or invalidate the insurance coverage required hereunder to be
maintained by Borrower. Borrower will not, without Lender's prior written
consent, permit any drilling exploration for or extraction, removal, or
production of any minerals from the surface or the subsurface of the Property,
regardless of the depth thereof or the method of mining or extraction thereof.

      9.10. Compliance with Laws.

            (a) Obligation to Perform. Borrower shall promptly and fully comply
with, or cause to be complied with, in all material respects, all Requirements
of now or hereafter affecting the Property. Borrower shall notify Lender
promptly of Borrower's knowledge or receipt of any notice related to a violation
of any Requirements of Law or of the commencement of any proceedings or
investigations which relate to compliance with Requirements of Law. At Lender's
request, Borrower shall provide Lender with copies of all notices, reports or
other documents relating to any litigation or governmental investigation
relating to Borrower or the Property.

            (b) Right to Contest. After prior written notice to Lender,
Borrower, at its own expense, may contest or permit Ply Gem or an Acceptable
Replacement Tenant to contest by appropriate legal proceedings, promptly
initiated and conducted in good faith and with due diligence, the Requirements
of Law affecting the Property or alleged violation thereof, provided that: (i)
no Event of Default exists; (ii) such proceedings shall be permitted under and
be conducted in accordance with the Requirements of Law; (iii) the Property will
not be in danger of being sold, forfeited, terminated, cancelled or lost; (iv)
non-compliance with such Requirement of Law shall not impose any civil, criminal
or environmental liability on Lender or Borrower; (v) if requested by Lender,
Borrower deposits with Lender cash (or other security

                                                              Ply Gem Industries

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<PAGE>
'
acceptable to Lender) in such amount as Lender deems sufficient to cover loss
or damage that may result from Borrower's failure to prevail in such contest,
provided that after a Securitization, one hundred twenty-five percent (125%) of
the amount estimated by Lender is deposited; (vi) Borrower furnishes to Lender
all other items reasonably requested by Lender, and (vii) upon a final
determination thereof, Borrower promptly complies with the obligations
determined to be applicable.

      9.11. Financial Reports, Books and Records.

            (a) Delivery of Financial Statements. Borrower shall keep adequate
books and records of accounts with respect to its financial condition and the
operation of the Property, in accordance with GAAP consistently applied (or such
other method which is reasonably acceptable to Lender), and shall furnish the
following to Lender, each prepared in such detail as reasonably required by
Lender and certified by a Responsible Officer to be true, complete and correct:

               (i) as soon as available, but in any event within thirty (30)
days after the end of each fiscal quarter, a quarterly Rent Roll providing the
required information as of end of such fiscal quarter;

               (ii) if at any time the Ply Gem Lease or an Acceptable
Replacement Lease is not in effect, as soon as available, but in any event
within thirty (30) days after the end of each fiscal quarter, a quarterly
operating statement for the Property detailing the operating income received,
operating expenses incurred by Borrower, the cost of all Immediate Repairs,
Replacements and Tenant Improvements and Leasing Commissions performed or paid
by Borrower during such quarter;

               (iii) as soon as available, but in any event within ninety (90)
days after the close of Borrower's fiscal year, (A) an annual Rent Roll,
presented on an annual basis consistent with the quarterly Rent Rolls described
above; and (B) an annual balance sheet and profit and loss statement for
Borrower;

               (iv) if at any time the Ply Gem Lease or an Acceptable
Replacement Lease is not in effect, as soon as available, but in any event at
least thirty(30) days prior to the start of each calendar year, an annual
operating budget for the Property presented on a monthly basis consistent with
the information required in the quarterly operating statement described above
which budget shall be subject to Lender's approval (each such budget as
approved, the "APPROVED BUDGET"); and

               (v) if at any time the Ply Gem Lease or an Acceptable Replacement
Lease is not in effect, such other financial information or property management
information including, without limitation, copies of Borrower's state and
federal tax returns, information on tenants under Leases to the extent such
information is available to Borrower, and an accounting of security deposits) as
may reasonably be required by Lender from time to time.

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<PAGE>
Notwithstanding anything to the contrary in this Section 9.11, if such items
requested pursuant to Section 9.11(a)(i)-(v) are delivered at any other than
that required under Section 9.11(a)(i)-(v) to Borrower by Ply Gem or an
Acceptable Replacement Tenant, Borrower will deliver said items to Lender within
ten (10) days of its receipt thereof and Borrower shall upon Lender's request
obtain from Ply-Gem or an Acceptable Replacement Tenant said items of other
financial information as may be required under the Ply Gem Lease or a
Replacement Lease and deliver a copy thereof to Lender promptly upon receipt.

            (b) Lender Audit Rights. Lender and its agents have the right, upon
prior written notice to Borrower (notice to be given unless an Event of Default
exists), to examine the records, books and other papers which reflect upon
Borrower's financial condition or pertain to the income, expense and management
of the Property and to make copies and abstracts from such materials. Lender
also shall have the right, from time to time (but, in the absence of an Event of
Default, existing, not more than annually and upon prior notice to Borrower
(notice to be given unless an Event of Default exists), to have an independent
audit conducted of any of Borrower's financial information. Lender shall pay the
cost of such audit unless Lender performed the audit following the occurrence of
an Event of Default to if the results of Lender's audit disclose an error by
more than ten percent (10%), in which case (and in addition to Lender's other
remedies) Borrower shall pay the cost incurred by Lender with respect to such
audit upon Lender's demand. Upon Borrower's failure to pay such amounts, and in
addition to Lender's remedies for Borrower's failure to perform, the unpaid
amounts shall be added to principal, shall bear interest at the Default Rate
until paid in full, and payment of such amounts shall be secured by the Security
Instrument and other collateral given to secure the Loan.

            (c) Financial Reports from Guarantors and SPE Equity Owner. Borrower
shall cause each Guarantor and, at Lender's request, the SPE Equity Owner, to
provide to Lender (i) within one hundred twenty (120) days after the close of
such party's fiscal year, such party's balance sheet and profit and loss
statement (or if such party is an individual, within ninety (90) days after the
close of each calendar year, such party's personal financial statements) in form
reasonably satisfactory to Lender and prepared by a "big four" accounting firm
or another national or regional accounting firm reasonably acceptable to Lender;
and (ii) such additional financial information (including, without limitation,
copies of state and federal tax returns) as Lender may reasonably require from
time to time and in such detail as reasonably required by Lender.

            (d) Data Delivery Failure. If a Data Delivery Failure occurs,
Borrower shall pay Lender, without demand, the applicable Data Delivery failure
fee on the first Business Day following each occurrence of a Data Delivery
Failure . The collection of the Data Delivery Failure Fee shall be in addition
to Lender's other rights and remedies under the Loan Documents and, until paid,
shall be deemed added to the Debt, secured by the Security Instrument and shall
bear interest at the Default Rate.

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9.12. Performance of Other Agreements. Borrower shall observe and perform (or
cause to be observed and performed) in a timely manner each and every obligation
to be observed or performed by Borrower pursuant to the terms of any agreement
or recorded instrument affecting or pertaining to the Property or, if Borrower
is a party, used in connection with the operation of the Property (including,
without limitation, the Operating Agreements). Without limiting the foregoing.
Borrower shall (a) give prompt notice to Lender of any notice received by
Borrower with respect to any of the Operating Agreements which alleges a default
or nonperformance by Borrower thereunder, together with a complete copy of any
such notice; (b) enforce, short of termination, performance of the Operating
Agreements to be performed or observed, and (c) not terminate or amend, or waive
compliance with, any of the Operating Agreements without Lender's prior written
consent (which shall not be unreasonably withheld or delayed), except as may be
(i) permitted pursuant to the respective terms thereof or (ii) absent the
existence of an Event of Default, done in the ordinary course of business. If
the absence of an Operating Agreement that has terminated will have a Material
Adverse Effect on the value of the Property, Borrower agrees to enter into a new
Operating Agreement in replacement of the terminated Operating Agreement,
containing terms and conditions no less favorable to Borrower than the
terminated Operating Agreement. Borrower shall notify Lender if Borrower does
not replace the terminated Operating Agreement.

9.13. Existence; Change of Name; Location as a Registered Organization. Borrower
shall continuously maintain (a) its existence and shall not dissolve or permit
its dissolution, and (b) its rights and franchises to do business in any state
where the Property is located. Borrower shall not change Borrower's name, legal
entity, or its location as a registered organization within the meaning of the
UCC, without notifying Lender of such change in writing at least thirty (30)
days prior to its effective date, provided, however, that with respect to
Borrower's name change,Borrower shall have thirty(30) days to cure and notify
Lender of said name change. The notification requirements set forth in this
Section are in addition to, and not in limitation of, the requirements of
Article 7. Borrower shall pay all costs and expenses incurred by Lender
(including, without limitation, reasonable legal fees) in connection with any
change described herein.

      9.14. Property Management.

(a) Borrower shall cause any Property Manager to manage the Property in the
manner in which it is currently being maintained. Borrower shall not remove or
replace the Property Manager (which, with respect to a Property Manager which is
an Affiliate of Borrower, shall be deemed to occur upon a change of Control of
the Property Manager) or modify or waive any material terms of the Property
Management Contract without Lender's prior written consent, which shall not be
unreasonably withheld or delayed, and, if requested by Lender, a Rating
Confirmation. Upon replacement of the Property Manager, Borrower shall, and
shall cause the new manager of the Property to, execute an Assignment of
Property Management Contract in form and substance similar to the Assignment of
Property Management Contract executed by the Property Manager. Borrower shall
comply with all obligations of Borrower under the

                                                              Ply Gem Industries

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Assignment of Property Management Contract. The property management fee and all
other fees payable under the Property Management Contract shall not exceed three
percent [3%] of gross revenues. Notwithstanding the foregoing, Borrower shall be
permitted to manage the property so long as no management fees are paid to
Borrower, Borrower is managing the Property in the manner that the property is
maintained as of the date hereof, and the Debt Service Coverage Ratio is not
less than 1.20 to 1.0. If Borrower ceases self-management and engages a
third-party manager for the Property, Borrower shall comply with all of the
provisions hereof regarding replacement of the Property Manager, including
without limitation, the execution of an Assignment of Property Management
Contract on Lender's then standard form and Lender acknowledges that Ply Gem
currently self-manages the Property.

            (b) Termination of Property Manager. Irrespective of whether an
Event of Default has occurred, Borrower agrees, that if (a) Lender, in its
reasonable discretion, determines that the Property is not being properly
managed in accordance with management practices customarily employed for
properties similar to the Property, or (b) Property Manager becomes insolvent,
then Lender may deliver written notice to Borrower and Property Manager, which
notice shall specify in reasonable detail the grounds for Lender's
determination. If Lender reasonably determines that the conditions specified in
Lender's notice are not remedied to Lender's reasonable satisfaction by Borrower
or Property Manager within thirty (30) days from receipt of such notice, or if
Borrower or Property Manager have failed to diligently undertake correcting such
conditions within such thirty (30) day period, Lender may direct Borrower to
terminate the Property Management Contract and/or cease self-management and
replace Property Manager with a management company acceptable to Lender.

      9.15. ERISA. Borrower shall not engage in any transaction which would
cause any obligation or action taken or to be taken hereunder by Borrower (or
the exercise by Lender of any of its rights under any of the Loan Documents) to
be a non-exempt (under a statutory or administrative class exemption) prohibited
transaction under ERISA. Borrower agrees to deliver to Lender such
certifications or other evidence throughout the term of the Loan as requested by
Lender in its sole discretion to confirm compliance with Borrower's obligations
under this Section 9.15 or to confirm that Borrower's representations and
warranties regarding ERISA remain true.

      9.16. Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money
Laundering Laws. Borrower shall comply with all Requirements of Law relating to
money laundering, anti-terrorism, trade embargos and economic sanctions, now or
hereafter in effect. Without limiting the foregoing, Borrower shall not take any
action, or permit any action to be taken, that would cause Borrower's
representations and warranties in Section 8.28 of this Loan Agreement to become
untrue or inaccurate at any time during the term of the Loan. Borrower shall
notify Lender promptly of Borrower's actual knowledge that the representations
and warranties in Section 8.28 of this Loan Agreement may no longer be accurate
or that any other violation of the foregoing Requirements of Law has occurred or
is being investigated by Governmental Authorities. In connection with such an
event, Borrower shall comply with all

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                                     - 50 -
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Requirements of Law and directives of Governmental Authorities and, at Lender's
request, provide to Lender copies of all notices, reports and other
communications exchanged with, or received from, Governmental Authorities
relating to such event. Borrower shall also reimburse Lender for any expense
incurred by Lender in evaluating the effect of such an event on the Loan and
Lender's interest in the collateral for the Loan, in obtaining any necessary
license from Governmental Authorities as may be necessary for Lender to enforce
its rights under the Loan Documents, and in complying with all Requirements of
Law applicable to Lender as the result of the existence of such an event and for
any penalties or fines imposed upon Lender as a result thereof.

                                   ARTICLE 10
                    NO TRANSFER OR ENCUMBRANCES; DUE ON SALE

      10.01. Prohibition Against Transfers. Borrower shall not permit any
Transfer to be undertaken or cause any Transfer to occur other than a Permitted
Transfer. Any Transfer made in violation of this Loan Agreement shall be void.

      10.02. Lender Approval.

            (a) Lender's decision to approve any Transfer proposed by Borrower
shall be made in Lender's sole discretion and Lender shall not be obligated to
approve any Transfer. Notwithstanding the foregoing, Lender will not
unreasonably withhold its consent two (2) times during the term of the Loan to a
transfer or sale (but not a pledge, mortgage, assignment, encumbrance or other
transfer as security for an obligation) of the Property and Borrower's
obligations under the Loan Documents, provided Borrower satisfies all of the
conditions set forth in this Section 10.02. Borrower agrees to supply all
information Lender may request to evaluate a Transfer, including, without
limitation,information regarding the proposed transferee's ownership
structure, financial condition and management experience for comparable
properties. Borrower acknowledges that Lender may impose conditions to its
approval of a Transfer, including, without limitation, (i) no Event of Default,
or an event which with the giving of notice or lapse of time or both could
become an Event of Default, has occurred and is continuing, or no default under
the Ply Gem Lease has occurred and is continuing, (ii) approval of the proposed
transferee's ownership structure, financial condition and management experience
for comparable properties, (iii) payment of an assumption fee equal to one
percent (1%) of the outstanding principal balance of the Loan, except that with
respect to any Transfer of the Property to an Affiliate of Borrower, the
assumption fees shall be waived, (iv) adding guarantors or changing the scope of
the Guaranty, (v) assumption in writing (acceptable to Lender in its sole
discretion) by the transferee and a guarantor (which guarantor must be
acceptable to Lender in its sole discretion) of all obligations of the
transferor and the Guarantor under the Loan Documents and execution and delivery
of such other documentation as may be required by Lender and the Rating
Agencies, (vi) delivery of a new substantive consolidation opinion, a tax
opinion and other applicable opinions as required by Lender and the Rating
Agencies, (vii) adjusting amounts

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<PAGE>

required for the Reserve Accounts, and (viii) obtaining Rating Confirmations if
a Securitization has occurred. In connection with such transfer, if a transferee
of creditworthiness acceptable to Lender, in its sole discretion, assumes all
obligations of Corporate Property Associates 16 Global Incorporated pursuant to
an assumption agreement and executes an Environmental Indemnity and Guaranty of
Recourse Obligations of Borrower acceptable to Lender in its sole discretion,
then from and after the date of such assignment, Lender shall release Corporate
Property Associates 16 Global Incorporated from all obligations thereafter
accruing under the Loan Documents, but not for obligations under the Loan
Documents which accrued prior to the date of the transfer.

            (b) Notwithstanding any provision of this Article 10 to the
contrary, and provided that no Event of Default has occurred and is continuing
under the Loan Documents, Borrower and Corporate Property Associates 16 Global
Incorporated shall be permitted at any time and from time to time to transfer or
convey (through merger or otherwise) their interests in Borrower and Borrower
shall be entitled to transfer the Property, as applicable, to any Affiliate of
either of them, provided that following the transfer any new guarantor or
guarantors shall satisfy the Net Worth Requirement, without payment of any
prepayment or transfer fee so long as such transfer does not result in a
downgrade, qualification or withdrawal of the Securities and provided that any
transferee of the Property is a single purpose, bankruptcy remote entity (based
upon Lender's review of the transferee's organizational structure, and as
evidenced by a non-consolidation opinion to be delivered at Lender's request and
in form and substance reasonably acceptable to Lender). As used herein, the term
"AFFILIATE" refers to another W.P. Carey Parent (as hereinafter defined) or to
an entity which controls, is controlled by or is under common control with
Corporate Property Associates 14 Incorporated, Corporate Property Associates 15
Incorporated, Corporate Property Associates 12 Incorporated, or their
successors, or the Guarantor or any other funds which is a member of the W.P.
Carey family of funds (each, a "W.P. CAREY PARENT"). In connection with the
transfer of the Property or interests in Borrower to any Affiliate, if the W.P.
Carey Parent of such Affiliate (i) assumes all of the obligations of Corporate
Property Associates 16 Global Incorporated pursuant to an assumption agreement
satisfactory to Lender, in its sole discretion, which assumption agreement
provides, among other things for the assumption of all liabilities of whatever
nature in connection with the Loan accruing from and after the date of such
transfer, and for waivers of any and all defenses in connection with such
liabilities and obligations under the Loan Documents and in connection with the
assumption and (ii) such transferee delivers to Lender an opinion of counsel as
to the enforceability of such assumption and the waivers of defenses thereunder,
and a non-consolidation opinion, each in form and substance satisfactory to
Lender, in its sole discretion, then upon such transfer, Lender shall release
Corporate Property Associates 16 Global Incorporated from all liabilities under
the Loan Documents which arise with respect to matters that occur after, but not
prior to, such transfer, and (iii) the new W.P. Carey Parent satisfies the Net
Worth Requirement. Borrower agrees to pay all of Lender's expenses incurred in
connection with reviewing and documenting a Transfer (including, without
limitation, the costs of obtaining Rating Confirmations if required), which
amounts must be paid by Borrower whether or not the proposed Transfer is
approved, if approval is required. Upon Borrower's

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                                     - 52 -

<PAGE>

failure to pay such amounts, and in addition to Lender's remedies for Borrower's
failure to perform, the unpaid amounts shall be added to principal, shall bear
interest at the Default Rate until paid in full, and payment of such amounts
shall be secured by the Security Instrument and other collateral given to secure
the Loan.

      10.03. Borrower Right to Partial Releases.

            (a) Right to Release. After the Open Date, Borrower shall have the
right, from time to time, to obtain a partial release ("PARTIAL RELEASE") of a
Release Property from the Security Instrument, Assignment of Leases and Rents
and related UCC financing statements. Borrower must provide at least thirty
(30), but no more than sixty (60) days prior written notice to Lender requesting
a Partial Release and identifying the Release Property and date upon which it
desires to have the Release Property released ("PARTIAL RELEASE DATE"). Prior to
Lender's agreement to a Partial Release, each of the following conditions must
be satisfied to Lender's reasonable satisfaction:

                  (i) No Event of Default shall have occurred and be continuing
at the time Borrower requests a Partial Release or on the Partial Release Date.

                  (ii) On or before the Partial Release Date, Borrower shall
deliver to Lender the Defeasance Collateral in an amount calculated on
the basis of the Partial Release Price allocated to the Release Property.

                  (iii) As of the Partial Release Date, and after giving effect
to the Partial Release to occur on such date the Loan to Value Ratio for the
remaining Property is no more than sixty-five percent (65%), as determined by
Lender.

                  (iv) As of the Partial Release Date, and, after giving effect
to the Partial Release to occur on such date, the Debt Service Coverage Ratio
for the remaining Property is at least 1.20:1.00 for the twelve (12) month
period immediately preceding the Partial Release with respect to the Remaining
Property after giving effect to the Partial Release; all as determined by Lender
in its sole discretion.

                  (v) Borrower has delivered to Lender forms of all documents
necessary to release the Release Property from the liens created by the Security
Instrument, Assignment of Rents and Leases and related UCC financing statements,
each in appropriate form required by the state in which the Release Property is
located and otherwise satisfactory to Lender in all respects.

                  (vi) Borrower shall deliver to Lender confirmation, in form
and substance satisfactory to Lender, that all conditions of partial Defeasance
have been met from any applicable Rating Agency that has required as a condition
to such partial Defeasance that such conditions have been met.

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                                     - 53 -
<PAGE>
                  (vii) Borrower has complied with the terms and conditions of
this Article 10 and Section 2.05 hereof, satisfactory to Lender in all respects.

                  (viii) Borrower has delivered a certificate from a Responsible
Officer certifying that the requirements set forth in this Section 10.03 have
been satisfied in all material respects.

                  (ix) Borrower has paid all amounts then due and unpaid under
the Loan Documents through (and including) amounts due on the Release Date and
in connection with the Partial Release.

                  (x) Lender shall have received a copy of a deed conveying all
of Borrower's right, title and interest in and to the Release Property to an
entity other than Borrower and any SPE Equity Owner and a letter from Borrower
countersigned by a title insurance company acknowledging receipt of such deed
and agreeing to record such deed in the real estate records of the appropriate
recording office in which the Release Property is located.

            (b) Reimbursement of Lender Expenses. Borrower agrees to pay all of
Lender's expenses incurred in connection with reviewing and documenting such
Partial Release (including, without limitation, the costs of obtaining Rating
confirmations if required by Lender), which amounts must be paid by Borrower
whether or not the proposed Partial Release is approved or executed. Upon
Borrower's failure to pay such amounts, and in addition to Lender's remedies for
Borrower's failure to perform, the unpaid amounts shall be added to principal,
shall bear interest at the Default Rate until paid in full and payment of such
amounts shall be secured by the Security Instrument and other collateral given
to secure the Loan.

            (c) Liens of Security Instrument Otherwise Unaffected. No Partial
Release granted by Lender shall, in any way, impair or affect the lien or
priority of the Security Instrument relating to the portion of the Property not
included in the Partial Release or improve the position of any subordinate
lienholder with respect thereto, except to the extent that the obligations
hereunder shall have been reduced by the actual monetary consideration, if any,
received by Lender for such Partial Release. This Security Instrument shall
continue as a Lien and security interest on the portion of the Property not
included in a Partial Release.

      10.04 Other Releases of the Mortgaged Property. In addition to the rights
granted to Borrower under Section 10.03 with respect to the Release Properties,
Lender may release other portions of the Property for such consideration and
upon such conditions as Lender may require without, as to the remainder of the
Property, in any way impairing or affecting the Lien or priority of the Security
Instrument or improving the position of any subordinate lienholder with respect
thereto, except to the extent that the obligations hereunder shall have been
reduced by the actual monetary consideration, if any, received by Lender for
such release, and Lender may accept by assignment, pledge or otherwise any other
property in place thereof as Lender may require without being accountable for so
doing to any other lienholder. Notwithstanding

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                                      -54-
<PAGE>

anything to the contrary herein, Borrower shall have no right to request and
Lender shall have no obligation to grant its consent to any release pursuant
this Section 10.04.

      10.05. OFAC Compliance; Substantive Consolidation Opinion. Notwithstanding
anything to the contrary contained in this Section 10, (a) no transfer (whether
or not such transfer shall constitute a Transfer) shall be made to any Person on
the OFAC list and (b) in the event any transfer (whether or not such transfer
shall constitute a Transfer) results in any Person owning in excess of
forty-nine percent (49%) of the ownership interest Borrower or any SPE Equity
Owner, Borrower shall, prior to such transfer, deliver a new substantive
consolidation opinion letter with respect to the new equity owners which is
acceptable in all respects to Lender and to the Rating Agencies if a
Securitization has occurred.

                                   ARTICLE 11
                          EVENTS OF DEFAULT; REMEDIES

      11.01. Events of Default. The occurrence of any one or more of the
following events shall, at Lender's option, constitute an "Event of Default"
hereunder:

            (a) If any payment of principal and interest is not paid in full on
or before the fifth (5th) day after the Payment Due Date on which such payment
is due (e.g., if the Payment Due Date is the 1st day of month, and Event of
Default occurs if the payment is not received on or before the fifth (5th) day
of the month);

            (b) If any monthly payment required to be made to a Reserve Account
is not paid in full on or before the fifth (5th) day after the Payment Due Date
on which such payment is due;

            (c) if unpaid principal, accrued but unpaid interest and all other
amounts outstanding under the Loan Documents are not paid in full on or before
the Maturity Date;

            (d) If an "Event of Default" as that term is defined under any other
Loan Document has occurred;

            (e) If any representation of warranty made by Borrower, SPE Equity
Owner or any Guarantor herein, in the Guaranty, in the Environmental Indemnity
or in any other Loan Document, or in any certificate, report, financial
statement or other instrument or document furnished to Lender in connection
herewith or hereafter, or in connection with any request for consent by Lender
made during the term of the Loan shall have been false or misleading in any
material respect as of the date made and results in a material adverse effect or
Lender's sole discretion may result in a material adverse effect;

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                                      -55-
<PAGE>
            (f) If Borrower, SPE Equity Owner or any Guarantor shall (i) make an
assignment for the benefit of creditors; (ii) generally not be paying its debts
as they become due; or (iii) admit in writing its inability to pay its debts as
they become due;

            (g) If (i) Borrower, SPE Equity Owner or any Guarantor shall
commence any case, proceeding or other action under any existing or future law
of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, conservatorship or relief of debtors (A) seeking to have an
order for relief entered with respect to it, or seeking to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect
to it of its debts, or (B) seeking appointment of a receiver, trustee,
custodian, conservator or other similar official for it for all or any
substantial part of its assets; or (ii) there shall be commenced against
Borrower, SPE Equity Owner or any Guarantor any case, proceeding or other action
of a nature referred to in clause (i) above by any party other than Lender which
(A) results in the entry of an order for relief or any such adjudication or
appointment, or (B) remains undismissed, undischarged or unbonded for a period
of ninety (90) days; or (iii) there shall be commenced against Borrower, SPE
Equity Owner or any Guarantor any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process
against all or any substantial part of its assets which results in the entry of
any order for any such relief which shall not have been vacated, discharged, or
stayed or bonded pending appeal within ninety (90) days from the entry thereof;
or (iv) Borrower, SPE Equity Owner or any Guarantor shall take any action in
furtherance of, or indicating its consent to, approval of, or acquiescence in,
any of the acts set forth in clause (i), (ii), or (iii) above;

            (h) Any final, non-appealable judgment for monetary damages is
entered against Borrower, SPE Equity Owner or any Guarantor which, in Lender's
sole opinion applied in a commercially reasonable manner, has a Material Adverse
Effect or is not covered to Lender's satisfaction by collectible insurance
proceeds;

            (i) If Borrower or SPE Equity Owner violates or fails to comply with
any provision of Article 7 of this Loan Agreement (captioned: Single Purpose
Entity Requirements);

            (j) If Borrower violates or fails to comply with any of the
provisions of Section 9.03 (captioned: Insurance), Section 9.06 (captioned:
Leases and Rents), or upon expiration of any applicable notice and cure periods,
Section 9.13 (captioned: Existence, Change of Name or Location as a Registered
Organization); provided that with respect to a violation of Section 9.03, it
shall not be an Event of Default if any policy of insurance is cancelled for
non-payment of premium if (A) Lender has required that insurance premiums be
deposited with Lender pursuant to Section 4.03 hereof and Borrower has timely
deposited with Lender sums sufficient to pay the premiums for such policies, and
(B) the failure to keep the policy in full force and effect is due solely to
Lender's failure to make a timely disbursement of funds to pay the premiums due
on the Policy when Lender is required to do so under this Loan Agreement;

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                                      -56-

<PAGE>

            (k) If a Transfer (other than a Permitted Transfer) shall occur
without Lender's prior written consent or in violation of the terms of Lender's
consent;

            (l) If Borrower abandons or ceases work on any Immediate Repair,
Replacement or Tenant Improvement for a period of more than twenty (20) days,
unless such cessation results from causes beyond the reasonable control of
Borrower and Borrower is diligently pursuing reinstitution of such work;

            (m) If a Lien other than a Permitted Encumbrance is filed against
the Property and not removed, insured against or bonded over within thirty (30)
days after the filing thereof, unless such Lien is promptly contested in good
faith by Borrower as permitted in accordance with Section 9.02(b);

            (n) If Corporate Property Associates 16 Global Incorporated
("GUARANTOR") fails on the last day of any fiscal quarter to maintain (x) an
aggregate minimum net worth of at last Twenty-five Million Dollars
($25,000,000.00) an (y) aggregate cash and/or marketable securities (which for
purposes hereof shall include, without limitation, short term investments of
less than one year) of at least One Million Seven Hundred Sixty-five Thousand
and 00/100 Dollars ($l,765,000.00), as determined by Lender in its reasonable
discretion ((x) and (y) collectively, the "NET WORTH REQUIREMENT"), and within
sixty(60) days from the date Lender notifies Borrower of such failure, Guarantor
fails either to (I) deliver to Lender evidence satisfactory to Lender that
Guarantor has attained the Net Worth Requirement, or (II) do each of the
following (a) identify for Lender an additional guarantor whose net worth
(as determined by Lender in its sole discretion is, at such time, at
least equal to the difference between the net worth of Guarantor, and
Twenty-Five Million Dollars ($25,000,000.00) and the difference between the cash
and/or marketable securities (which for purposes hereof shall include, without
limitation,. short term investments of less than one year) of Guarantor and One
Million Seven Hundred Sixty-five Thousand Dollars ($1,765,000.00), (b) cause
such additional guarantor to execute and deliver to Lender (i) a guaranty of
Borrower's recourse obligations under the Note and the other Loan Documents and
(ii) an environmental indemnity agreement, each on substantially the same form
as the Guaranty of Recourse Obligations of Borrower and Environmental Indemnity
Agreement executed by Guarantor, concurrently herewith; (c) execute and deliver,
and/or cause to be executed and delivered, as applicable, such other amendments
and modifications to and reaffirmations of the Loan Documents as Lender may
reasonably require; and (d) deliver opinions of counsel with respect to said
additional Guarantor, such additional guaranty and environmental indemnity, and
any such amendments and modifications to and reaffirmations of the Loan
Documents as Lender may reasonably required;

            (o) lf Borrower fails to pay the Prohibited Prepayments Fee when
required; or

            (p) Except for the specific defaults set forth in this Section
11.01, if any other default occurs hereunder or under any other Loan Document
which is not cured (i) in the case of any default which can be cured by the
payment of a sum of money, within five (5) days after

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                                      -57-

<PAGE>

written notice from Lender to Borrower, or (ii) in the case of any other
default, within thirty(30) days after written notice from Lender to Borrower;
provided that if a default under clause(ii) cannot reasonably be cured within
such thirty (30) day period and Borrower has responsibly commenced to cure such
default promptly upon notice thereof from Lender and thereafter diligently
proceeds to cure same, such thirty (30) day period shall be extended for so long
as it shall require Borrower, in the exercise of due diligence, to cure such
default, but in no event shall the entire cure period be more than one hundred
five (105) days (except that with respect to a default under the Environmental
Indemnity Agreement which requires remediation, the cure period shall be
extended without limitation so long as Borrower is in the exercise of due
diligence, to cure such default in accordance with the requirements of
applicable Environmental Laws, and Lender may, at Borrower's cost, retain an
environmental consultant to review Borrower's actions in attempting to cure any
default hereunder and advise Lender as to whether, in the opinion of the
environmental consultant, Borrower is proceeding to cure such default with due
diligence in accordance with said Environmental Laws.

      11.02. Remedies. If an Event of Default occurs, and any applicable grace
or cure period expires without cure having been completed, Lender may,
at its option, and without prior notice or demand, do and hereby is authorized
and empowered by Borrower so to do, any or all of the following:

            (a) Acceleration. Lender may declare the entire unpaid principal
balance of the Loan to be immediately due and payable. If such acceleration
takes place prior to the Open Date, an amount equal to the Prohibited Prepayment
Fee  shall be added to balance of the Debt.

            (b) Recovery of Unpaid Sums. Lender may, from time to time, take
legal action to recover any sums as the same become due, without regard to
whether or not the Loan shall be accelerated and without prejudice to Lender's
right thereafter to accelerate the Loan or exercise any other remedy, if such
sums remain uncollected.

            (c) Foreclosure. Lender may institute proceedings, judicial or
otherwise, for the complete or partial foreclosure of the Security Instrument or
the complete or partial sale of the Property under power of sale or under any
applicable provision of law. In connection with any such proceeding Lender may
sell the Property as an entirely or in parcels or units and at such times and
place (at one or more sales) and upon such terms as it may deem expedient unless
prohibited by law from so acting.

            (d) Receiver. Lender may apply for the appointment of a receiver,
trustee, liquidator or conservator of the Property, without regard for the
adequacy of the security for the Debt or a showing of insolvency, fraud or
mismanagement the part of Borrower. Any receiver or other party so appointed has
all powers permitted by law which may be necessary or usual in such cases for
the protection, procession, control, management and operation of the Property.
Borrower hereby consent, to the extent permitted under applicable law, to the
appointment of a

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                                      -58-
<PAGE>
receiver or trustee of the Property upon Lender's request if an Event of
Default has occurred. At Lender's option, such receiver or trustee shall serve
without any requirement of posting a bond.

            (e) Recovery of Possession. Subject to the Requirements of Law and
the rights of Ply Gem under the Ply Gem Lease or the rights of any Acceptable
Replacement Tenant under an Acceptable Replacement Lease, Lender may enter into
or upon the Property, either personally or by its agents, and dispossess and
exclude Borrower and its agents and servants therefrom (without liability for
trespass, damages or otherwise), and take possession of all books, records and
accounts relating to the Property, and Borrower agrees to surrender possession
of the Property and all other Property, including without limitation, all
documents, books, records and accounts relating to the Property, to Lender upon
demand. As a mortgagee-in-possession of the Property, Lender shall have all
rights and remedies permitted by law or in equity to a mortgagee-in-possession,
including, without limitation, the right to charge Borrower the fair and
reasonable rental value for Borrower's use and occupation of any part of the
Property that may be occupied or used by Borrower and the right to exercise all
rights and powers of Borrower with respect to the Property, whether in the name
of Borrower or otherwise (including, without limitation, the right to make,
cancel, enforce or modify Leases (provided, however, that Lender shall not,
prior to completion of foreclosure, agree to any reduction of rent under the Ply
Gem Lease or any Acceptable Replacement Lease, modify the term of the Ply Gem
Lease or any Acceptable Replacement Lease, or cancel or terminate the Ply Gem
Lease or any Acceptable Replacement Lease unless Ply Gem or any Acceptable
Replacement Tenant is in default beyond any applicable cure period), obtain and
evict tenants, and demand, sue for, collect and receive all Rents of the
Property).

            (f) UCC Remedies. Lender may exercise with respect to the Property,
each right, power or remedy granted to a secured party under the UCC, including,
without limitation, (i) the right to take possession of the Property and to take
such other measures as Lender deems necessary for the care, protection and
preservation of the Property, and (ii) the right to require that Borrower, at
its expense, assemble the Property and make it available to Lender at a
convenient place acceptable to Lender. Any notice of sale, disposition or other
intended action by Lender with respect to the Property sent to Borrower in
accordance with the provisions hereof at least ten (10) days prior to such
action, shall constitute reasonable notice to Borrower. Lender shall not have
any obligation to clean-up or otherwise prepare the Property for sale.

            (g) Apply Funds in Reserve Accounts. Lender may apply any funds then
deposited in any or all of the Reserve Accounts and or otherwise held in escrow
or reserve (except to the extent that such sums belong to Ply Gem and the terms
of the Ply Gem Lease do not permit Borrower, as landlord, to utilize such sums)
by Lender under the Loan Documents (including without limitation Restoration
Proceeds) as a credit on to Loan, in such priority and proportion as Lender
deems appropriate.

            (h) Insurance Policies. Lender may surrender any or all insurance
policies maintained as required by this Loan Agreement, unless such policies
then belong to Ply Gem,

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                                     - 59 -
<PAGE>
collect the unearned Insurance Premiums and apply such sums as a credit on the
Loan, in such priority and proportion as Lender deems appropriate. Borrower
hereby appoints Lender its attorney-in-fact with full power of substitution (and
which shall be deemed to be coupled with an interest and irrevocable until the
Loan is paid and the Security Instrument is discharged of record, with Borrower
hereby ratifying all that its said attorney shall do by virtue thereof) to
surrender such insurance policies and collect such Insurance Premiums.

            (i)   Protection of Lender's Security and Right to Cure. Lender may,
without releasing Borrower from any obligation hereunder or waiving the Event of
Default, perform the obligation which Borrower failed to perform in such manner
and to such extent as Lender deems necessary to protect and preserve the
Property and Lender's interest therein, including without limitation (i)
appearing in, defending or bringing any action or proceeding with respect to the
Property, in Borrower's name or otherwise; (ii) making repairs to the Property
or completing improvements or repairs in progress; (iii) hiring and paying legal
counsel, accountants, inspectors or consultants; and (iv) paying amounts which
Borrower failed to pay. Amounts disbursed by Lender shall be added to the Loan,
shall be immediately due and payable, and shall bear interest at the Default
Rate from the date of disbursement until paid in full.

            (j)   Violation of Laws. If the Property is not in compliance with
all Requirements of Laws, Lender may impose additional requirements upon
Borrower in connection with such Event of Default including, without limitation,
monetary reserves or financial equivalents.

      11.03 Cumulative Remedies; No Waiver; Other Security. Lender's remedies
under this Loan Agreement are cumulative (whether set forth in this Article 11
or in any other section of this Loan Agreement) with those in the other Loan
Documents and otherwise permitted by law or in equity and may be exercised
independently, concurrently or successively in Lender's sole discretion and as
often as occasion therefor shall arise. Lender's delay or failure to accelerate
the Loan or exercise any other remedy upon the occurrence of an Event of Default
shall not be deemed a waiver of such right as remedy. No partial exercise by
Lender of any right or remedy will preclude further exercise thereof, Notice or
demand given to Borrower in any instance will not entitle Borrower to notice or
demand in similar or other circumstances (except where notice is expressly
required by this Loan Agreement to be given) nor constitute Lender's waiver of
its right to take any future action in any circumstance without notice or
demand. Lender may release security for the Loan, may release any party liable
therefor, may grant extensions, renewals or forbearances with respect thereto,
may accept a partial or past due payment or grant other indulgences, or may
apply any other security held by it to payment of the Loan, in each case without
prejudice to its rights under the Loan Documents and without such action being
deemed an accord and satisfaction or a reinstatement of the Loan. Lender will
not be deemed as a consequence of its delay or failure to act, or any
forbearance granted, to have waived or be estopped from exercising any of its
rights or remedies.
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                                      -60-

<PAGE>

      11.04 Enforcement Costs. Borrower shall pay, on written demand by Lender
all costs incurred by Lender in (a) collecting any amount payable under the Loan
Documents, or (b) enforcing its rights under the Loan Documents, in each case
whether or not legal proceedings are enforcing its rights under the Loan
Documents, in each case whether or not legal proceedings are commenced or
whether legal action of pursued to final judgment. Such fees and expenses
include, without limitation, reasonable fees for attorneys, paralegals, law
clerks and other hired professionals, a reasonable assessment of the cost of
services performed by Lender's default management staff, court fees, costs
incurred in connection with pre-trial, trial and appellate level proceedings,
including discovery, and costs incurred in post-judgment collection efforts or
in any bankruptcy proceeding. Amounts incurred by Lender shall be added to
principal, shall be immediately due and payable, shall bear interest at the
Default Rate from the date of disbursement until paid in full, if not paid in
full within five (5) days after Lender's written demand for payment, and such
amounts shall be secured by the Security Instrument and other collateral given
to secure the Loan.

      11.05 Application of Proceeds. The proceeds from disposition of the
Property shall be applied by Lender as a credit to the Loan and to recovery or
reimbursement of the costs of enforcement (contemplated by Section 11.04 above)
in such priority and proportion as Lender determines appropriate.

      11.06 Cross-Default; Cross-Collateralization; Waiver of Marshalling of
Assets.

            (a)   Borrower acknowledges that Lender has made the Loan to
Borrower upon the security of its collective interest in the Property and in
reliance upon the aggregate of the Property taken together being of greater
value as collateral security than the sum of each Individual Property taken
separately. Borrower agrees that the Security Instruments are and will be cross-
collateralized and cross-defaulted with each other so that (i) an Event of
Default under any of the Security Instrument shall constitute an Event of
Default under each of the other Security Instrument which secure the Note; (ii)
an Event of Default under the Note or this Loan Agreement shall constitute an
Event of Default under each Security Instrument; (iii) each Security Instrument
shall constitute security for the Note as if a single blanket lien were placed
on all of the Properties as security for the Note; and (iv) such cross-
collateralization shall in no event be deemed to constitute a fraudulent
conveyance.

            (b)   To the fullest extent permitted by law, Borrower, for itself
and its successors and assigns, waives all rights to a marshalling of the assets
of Borrower, Borrower's partners and others with interests in Borrower, and of
the Property, or to a sale in inverse order of alienation in the event of
foreclosure of all or any of the Security Instruments, and agrees not to assert
any right under any laws pertaining to the marshalling of assets, the sale in
inverse order of alienation, homestead exemption, the administration of estates
of decedents, or any other matters whatsoever to defeat, reduce or affect the
right of Lender under the Loan Documents to a sale of the Property for the
collection of the Debt without any prior or different resort for collection or
of the right of Lender to the payment of the Debt out of the net proceeds of the
Property in preference to every other claimant whatsoever. In addition,
Borrower, for itself and its

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 successors and assigns, waives in the event of foreclosure of any or all of the
Security Instruments, any equitable right otherwise available to Borrower which
would require the separate sale of the Property or require Lender to exhaust its
remedies against any Individual Property or any combination of the Property
before proceeding against any other Individual Property or combination or
Property; and further in the event of such foreclosure Borrower does hereby
expressly consents to and authorizes, at the option of Lender, the foreclosure
and sale either separately or together of any combination of the Property.

                                   ARTICLE 12
                  NONRECOURSE-LIMITATIONS ON PERSONAL LIABILITY

      12.01. Nonrecourse Obligation. Except as otherwise provided in this
Article 12 or expressly stated in any of the other Loan Documents, Lender shall
enforce the liability of Borrower to perform and observe the obligations
contained in this Loan Agreement and in each other Loan Document only against
the Property and other collateral given by Borrower as security for payment of
the Loan and performance of Borrower's obligations under the Loan Documents and
not against Borrower or any of Borrower's principals, directors, officers or
employees. Notwithstanding the foregoing, this Article 12 is not applicable to
the Environmental Indemnity or to any Guaranty executed in connection herewith.

      12.02. Full Personal Liability. Section 12.01 above shall BECOME NULL AND
VOID and the Loan FULLY RECOURSE to Borrower if: (a) the property or any part
thereof becomes an asset in a voluntary bankruptcy or other insolvency
proceeding; (b) Borrower or SPE Equity Owner commences a bankruptcy or other
insolvency proceeding; (c) an involuntary bankruptcy or other insolvency
proceeding is commenced against Borrower or any SPE Equity Owner (by a party
other than Leader or an investor or participant in the Loan) but only if
Borrower or such SPE Equity Owner has field to use its best efforts to dismiss
such proceeding or has consented to such proceeding or (d) if Borrower, any SPE
Equity Owner, Guarantor or any Affiliate or agent of (x) Borrower,(y) any SPE
Equity Owner or (z) any Guarantor has acted in concert with, colluded or
conspired with any party to cause the filing of any involuntary bankruptcy or
other insolvency proceeding.

      12.03 Personal Liability for Certain Losses. Section 12.01 above SHALL NOT
APPLY and Borrower shall be PERSONALLY LIABLE for all losses, claims, expenses
or other liabilities incurred by Lender arising out of, or attributable to, any
of the following:

            (a) Fraud or material misrepresentation or failure to disclose a
material fact by Borrower or any other party in connection with (i) the
application for the Loan or the execution and delivery of the Loan Documents or
making of the Loan, (ii) any financial statement or any other material
certificate, report or document required to be furnished by Borrower to Lender
herewith or hereafter, or (iii)any request for Lender's consent made during the
term of the Loan;

            (b) A violation of any provision of Article 10 (captioned; No
Transfers or Encumbrances; Due On Sale);

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<PAGE>

            (c) Failure by Borrower or the SPE Equity Owner to comply with any
provision of Article 7 (captioned: Single Purpose Entity Requirements) or
Section 9.13 (captioned: Existence, Change of Name or Location as a Registered
Organization) of the Loan Agreement limited, however, to $5,883,333.00;

            (d) Misapplication or misappropriation of (i) insurance proceeds or
condemnation awards payable to Lender in accordance with the Loan Agreement;
(ii) Rent received by Borrower after the occurrence of an Event of Default;
(iii) Rent paid in advance by tenants under the Leases; and (iv)tenant security
deposits or other refundable deposits held by or on behalf of Borrower in
connection with Leases;

            (e) Fees or commissions paid by any Borrower, after the occurrence
and during the continuance of an Event of Default, to any Guarantor , any
Affiliate, or any principal of Borrower, any Guarantor or Affiliate, in
violation of the Loan Documents limited, however, to $5,883,333.000;

            (f) Damage to or loss of all or any part of the Property as a result
of waste, gross negligence or willful misconduct by Borrower or its agents;

            (g) Criminal acts of Borrower, any principal of Borrower, or any
Affiliate resulting in the seizure, forfeiture or loss of all or any part of the
Property;

            (h) Removal of all or any portion of the Personal Property in
violation of the Loan Agreement;

            (i) All amounts contemplated under Section 11.04 and any real estate
or other transfer tax incurred to transfer title to the Property in connection
with any foreclosure, deed in lieu of foreclosure or non-judicial sale of the
Property following the occurrence of an Event of Default (limited, however, to
$5,883,333.00); and

            (j) Payment of the deductible amount in excess of $50,000.00 under
any casualty insurance maintained in respect of the Property.

      12.04. No Impairment. Nothing contained in this Article 12 shall impair,
release or otherwise adversely affect: (a) any lien, assignment or security
interest created by the Loan Documents; (b) any indemnity, personal guaranty,
master lease or similar instrument now or hereafter made in connection with the
Loan (including, without limitation, the Environmental Indemnity and Guaranty);
(c) Lender's right to have a receiver or trustee appointed for the Property; (d)
Lender's right to name Borrower as a defendant in any foreclosure action or
judicial sale under the Security Instrument or other Loan Documents or in any
action for specific performance or otherwise to enable Lender to enforce
obligations under the Loan Documents or to realize upon Lender's interest in any
collateral given to Lender as security for the Loan; or (e) Lender's right to a
judgment on the Note against Borrower if necessary to (i) enforce any guaranty
or indemnity provided in connection with the Note, (ii) preserve or enforce its
rights or

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<PAGE>

remedies against any Individual Property, or (iii) to obtain any insurance
proceeds or condemnation awards to which Lender would otherwise be entitled
under this Loan Agreement; provided, however, that any judgment obtained against
Borrower shall, except to the extent otherwise expressly provided in this
Article 12, be enforceable against Borrower only to the extent of Borrower's
interest in the Property and other collateral securing payment of the Loan and
performance of Borrower's obligations under the Loan Documents.

      12.05. No Waiver of Certain Rights. Nothing contained in this Article 12
shall be deemed a waiver of any right which Lender may have under the Bankruptcy
Code or applicable law to protect and pursue its rights under the Loan Documents
including, without limitation, its rights under Sections 506(a) or any other
provision of the Bankruptcy Code to file a claim for the full amount of the Loan
or to require that the collateral continues to secure all of the indebtedness
owing to Lender under Loan Documents.

                                   ARTICLE 13
                                 INDEMNIFICATION

      13.01. Indemnification Against Claims. Borrower shall indemnify, defend,
release and hold harmless Lender and each of the other Indemnified Parties from
and against any and all Losses directly or indirectly arising out of, or in any
way relating to, or as a result of (a) accident, injury to or death of Persons,
or loss of, or damage to, property occurring in, on or with respect to the
Property or on the adjoining sidewalks, curbs, adjacent property or adjacent
parking areas, streets or ways or otherwise arising with respect to the use of
the Property;(b)failure of the Property to be in compliance with any
Requirements of Law; (c) breach or default of Borrower's representations or
obligations under Sections 8.27, 8.28 or 9.16 of this Loan Agreement; (d) any
and all claims and demands whatsoever which may be asserted against Lender by
reason of any alleged obligations or undertakings on its part to perform or
discharge the lessor's agreements contained in any Lease, unless such
undertakings are in writing and signed by Lender; (e) breach or default under
the ERISA obligations set forth in Sections 8.26 and 9.15 of this Loan Agreement
(including, without limitation, legal fees and costs incurred in the
investigations, defense and settlement of Losses incurred in correcting any
prohibited transaction or in the sale of a prohibited loan, and in obtaining any
individual prohibited transaction exemption under ERISA that may be required, in
Lender's sole discretion); or (f) any claim, litigation, investigation or
proceeding commenced or threatened relating to any of the foregoing, whether or
not Indemnified party is a party thereto; provided, however, any such indemnity
shall not apply to any Indemnified Party to the extent any such Losses arise
from Indemnified Party's gross negligence or willful misconduct(collectively,
"INDEMNIFIED CLAIMS").

13.02. Duty to Defend. If an Indemnified Party claims indemnification under this
Loan Agreement, the Indemnified Party shall promptly notify Borrower of the
Indemnified claim. After notice by any Indemnified party,Borrower shall defend
such Indemnified Party against such Indemnified Claim (if requested by any
Indemnified Party, in the name of the Indemnified

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<PAGE>

Party) by attorneys and other professionals reasonably approved, in writing, by
the Indemnified Party. Notwithstanding the foregoing, any Indemnified Party may,
in its sole discretion and at the expense of Borrower, engage its own attorneys
and other professionals to defend or assist it if such Indemnified Party
determines that the defense as conducted by Borrower is not proceeding or being
conducted in a satisfactory manner or that a conflict of interest exists between
any of the parties represented by Borrower's counsel in such action or
proceeding. Within five (5) business days of Indemnified Party's demand,
Borrower shall pay or, in the sole discretion of the costs and expenses
(including, without limitation, reasonable attorney fees, engineer fees,
environmental consultant fees, laboratory fees and other professionals in
connection therewith) Default Rate until paid in full and payment of such
amounts shall be secured by the Security Instrument and other collateral given
to secure the Loan.

                                   ARTICLE 14
                        SUBROGATION; NO USURY VIOLATIONS

      14.01. Subrogation. If the Loan is used to pay, satisfy, discharge, extend
or renew any indebtedness secured by a pre-existing mortgage, deed of trust or
other Lien encumbering the Property, then to the extent of funds so used, Lender
shall automatically, and without further action on its part, be subrogated to
all rights, including lien priority, held by the holder of the indebtedness
secured by such prior Lien, whether or not the prior Lien is released, and such
former rights are not waived but rather are continued in full force and effect
in favor of Lender and are merged with the Liens created in favor of Lender as
security for payment of the Loan and performance of the Obligations.

      14.02. No Usury. At no time is Borrower required to pay interest on the
Loan or on any other payment due hereunder or under any of the other Loan
Documents (or to make any other payment deemed by law or by a court of competent
jurisdiction to be interest) at a rate which would subject Lender either to
civil or criminal liability as a result of being in excess of the maximum
interest rate which Borrower is permitted by applicable law to pay. If interest
(or such other amount deemed to be interest) paid or payable by Borrower is
deemed to exceed such maximum rate, then the amount to be paid immediately shall
be reduced to such maximum rate and thereafter computed at such maximum rate.
All previous payments in excess of such maximum rate shall be deemed to have
been payments of principal (in inverse order of maturity) and not on account of
interest due hereunder. For purposes of determining whether any applicable usury
law has been violated, all payments deemed by law or a court of competent
jurisdictions to be interest shall, to the extent permitted any applicable law,
be deemed to be amortized, prorated, allocated and spread over the full term of
the Loan in such manner so that interest is computed at a rate throughout the
full term of the Loan which does not exceed the maximum lawful rate of interest.

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                                   ARTICLE 15
                         SALE OR SECURITIZATION OF LOAN

      15.01. Splitting the Note. Lender has the right, from time to time, to
sever the Note into one or more separate promissory notes, each secured by all
of the Property, in such denominations as Lender determines in its sole
discreation (including the creation of a mezzanine loan secured by a collateral
assignment of the equity interest in Borrower and SPE Equity Owner) which
promissory notes may be included in separate sales or securitizations undertaken
by Lender. In conjunction with any such action, Lender may redefine the interest
rate and amortization schedule; provided, however: (a) if Lender redefines the
interest rate, the initial weighted average of the interest rates contained in
the severed promissory notes taken in the aggregate shall equal the Applicable
Interest Rate, and (b) if Lender redefines the amortization schedule, the
amortization of the severed promissory notes taken in the aggregate shall
require no more amortization to be paid under the Loan than as required under
this Loan Agreement and the Note at the time such action was taken by Lender.
Subject to the foregoing each severed promissory note, and the Loan evidenced
thereby, shall be upon all of the terms and provisions contained in this Loan
Agreement and the Loan Documents which continue in full force and effect.
Borrower, at Borrower's expense, agrees to cooperate with all reasonable
requests of Lender to accomplish the foregoing, including, without limitation,
execution and prompt delivery to Lender of a severance agreement and such other
documents as Lender shall reasonably require, provided that no such agreement
may allocate specific collateral given for the Loan as security for performance
of specific promissory notes and no separate servicer may be assigned for any
separate notes. Borrower hereby appoints Lender its attorney-in-fact with full
power of substitution (and which shall be deemed to be coupled with an interest
and irrevocable until the Loan is paid and the Security Instrument is discharged
of record, with Borrower hereby ratifying all that its said attorney shall do by
virtue thereof) to make and execute all documents necessary or desirable to
effect the aforesaid severance; provided, however, Lender shall not make or
execute any such documents under such power until five (5) days after written
notice has been given to Borrower by Lender of Lender's intent to exercise its
rights under such power. Borrower's failure to deliver any of the documents
requested by Lender hereunder for a period of ten (10) business days after such
notice by Lender shall, at Lender's option, constitute an Event of Default
hereunder.

      15.02. Lender's Rights to Sell or Securitize. Borrower acknowledges that
Lender, and each successor to Lender's interest, may (without prior notice to
Borrower or Borrower's prior consent), sell or grant participations in the Loan
(or any part thereof), sell or subcontract the servicing rights related to the
Loan, Securitize the Loan or include the Loan as part of a Securitization and,
in connection therewith, assign Lender's rights hereunder to a securitization
trustee. Borrower, at its expense, agrees to cooperate with all reasonable
requests of Lender in connection with any of the foregoing including, without
limitation, executing any financing statements or other documents deemed
necessary by Lender or its transferee to create, perfect or preserve the rights
and interest to be acquired by such transferee, provide any updated financial
information with appropriate verification through auditors letters, revised
organizational

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<PAGE>

documents and counsel opinions satisfactory to the Rating Agencies, and executed
amendments to the Loan Documents, and review information contained in a
preliminary or final private placement memorandum, prospectus, prospectus,
supplements or other disclosure documents, providing a mortgagor estoppel
certificate and such other information about Borrower, SPE Equity Owner, any
Guarantor or the Property as Lender may require for Lender's offering materials.

      15.03. Dissemination of Information. Borrower acknowledges that Lender may
provide to third parties with an exiting or prospective interest in the
servicing, enforcement, evaluation, performance, ownership, purchase,
participation, or Securitization of the Loan, including, without limitation, any
Rating Agency and any entity maintaining databases on the underwriting and
performance of commercial mortgage loans, any and all information which Lender
now has or may hereafter acquire relating to the Loan, the Property, Borrower,
SPE Equity Owner or any Guarantor, as Lender determines necessary or desirable
and that such information may be included in disclosure documents in connection
with a Securitization or syndication of participation interests, including,
without limitation, a prospectus, prospectus supplement, offering memorandum,
private placement memorandum or similar document (each, a "DISCLOSURE DOCUMENT")
 and also may be included in filing with the Securities and Exchange
Commission pursuant to the Securities Act on the Securities Exchange Act. To the
fullest extent permitted under applicable law, Borrower irrevocably waives all
rights, if any, to prohibit such disclosure, including, without limitation, any
right of privacy.

      15.04. Reserves Accounts. If the Loan is made a part of a Securitization,
Borrower acknowledges that all funds held by Lender in the Reserve Accounts in
accordance with this Loan Agreement or the other Loan Documents shall be
deposited in "eligible accounts" at "eligible institutions" or invested in
"permitted investments" as then defined and required by the Rating Agencies, and
this Loan Agreement will automatically be amended to so provide.

      15.05. Securitization Indemnification. Borrower agrees to provide in
connection with each Disclosure Document, an indemnification certificate: (a)
certifying that such Disclosure Document has carefully been examined, including,
without limitation, the section entitled "Special Considerations," and or "Risk
Factors," and "certain Legal Aspects of the Mortgage Loan," or similar sections,
and all sections relating to Borrower, SPE Equity Owner, Guarantors, Property
Manager, their respective Affiliates, the Loan,the Loan Documents and the
Property, and any risks or special considerations relating thereto, and that, to
the best of such indeminator's knowledge, such sections (and any other sections
reasonably requested) do not contain any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements made, in
the light of the circumstances under which they were made, not misleading; (b)
indemnifying Lender (and for purposes of this Section 15.05, Lender shall
include its officers and directors) and the Affiliate of Lender that (i) has
filed the registration statement, if any, relating to the Securitization and/or
(ii) which is acting as issuer, depositor, sponsor and/or a similar capacity
with respect to the Securitization (any Person described in (i) or (ii), and
"ISSUER PERSON"), and each director and officer of any Issuer Person, and each
Person or entity who

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<PAGE>

controls any Issuer Person within the meaning of Section 15 of the Securities
Act or Section 20 of the Securities Exchange Act (collectively, "ISSUER GROUP"),
and each Person which is acting as an underwriter, manager, placement agent,
initial purchaser or similar capacity with respect to the Securitization, each
of its directors and officers and each Person who controls any such Person
within the meaning of Section 15 of the Securities Act or Section 20 of the
Securities Exchange Act which is acting as an underwriter, manager, placement
agent, initial purchaser or similar capacity with respect to the Securitization,
each of its directors and officers and each Person who controls any such Person
within the meaning of Section 15 of the of the Securities Act and Section 20 of
the Securities Exchange Act (collectively, "UNDERWRITER GROUP") for any Losses
to which lender, the Issuer Group or the Underwriter Group may become subject
insofar as the Losses arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in such section or arise
out of are based upon the omission or alleged omission to state therein a
material fact required to be stated in such sections necessary in order to make
the statements in such sections or in light of the circumstances under which
they were made, not misleading (collectively, "SECURITIES LIABILITIES"); and (c)
agreeing to reimburse Lender, the Issuer Group and the Underwriter Group for any
legal or other expenses reasonably incurred by Lender, the Issuer Group and the
Underwriter Group in investigating or defending the Securities Liabilities;
provided, however, that indemnitor will be liable under clauses(b) or (c) above
only to the extent that such Securities liabilities arise out of, or are based
upon, any such untrue statement or omission made therein in reliance upon, and
in conformity with, information furnished to Lender or any member of the Issuer
Group or Underwriter Group by or on behalf of Borrower or a Guarantor in
connection with the preparation of the Disclosure Documents or in connection
with the underwriting of the Loan, including, without limitation, financial
statements of Borrower, SPE Equity Owner or any Guarantor, and operating
statements, rent rolls, environmental site assessment reports and property
condition reports with respect to the Property. This indemnity is in addition to
any liability which Borrower may otherwise have and shall be effective whether
or not an indemnification certificate described in (a) above is provided and
shall be applicable based on information previously provided by or on behalf of
Borrower or a Guarantor if the indemnification certificate is not provided.

                                   ARTICLE 16
                       BORROW FURTHER ACTS AND ASSURANCES
                     PAYMENT OF SECURITY RECORDING CHARGES

      16.01. Further Acts. Borrower's, at Borrower's expense, agrees to take
such further actions and execute such further documents as Lender reasonable may
request to carry out the intent of the Loan Documents or to establish and
protect the rights and remedies created or intended to be created in favor of
Lender under the Loan Documents or to protect the value of the Property and
Lender's security interest or liens therein. Borrower agrees to pay all filing,
registration or recording fees or taxes, and all expenses incident to the
preparation, execution, acknowledgement, or filing/recording of the Security
Instrument, the Assignment of Leases and

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<PAGE>

Rents, financing statements or any such instrument of further assurance, except
where prohibited by law so to do.

      16.02. Replacement Documents. Upon receipt of an affidavit from 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 document, Borrower will
issue a replacement original in lieu thereof in the same original principal
amount and otherwise on the same terms and conditions as the original; provided,
however, that Lender shall reimburse Borrower for any expense, including,
without limitation, reasonable attorney's fees up to the amount of $1,000.00 per
instance or $2,000.00 in the aggregate, in connection with the issuance of such
replacement Note or other Loan Document.

      16.03. Borrower Estoppel Certificates.

            (a) Borrower Information. Borrower, within fifteen (15) days of
Lender's written request (but not more than twice annually, provided that no
Event of Default has occurred), shall furnish to Lender or Lender's designee a
statement, duly acknowledged and certified by a Responsible Officer, setting
forth: (i) the Maximum Loan Amount and the amount of principal advanced as of
the certificate date;(ii) the unpaid principal amount of the Loan; (iii) the
calculation of the rate of interest accruing on the Loan, including the then
Applicable Interest Rate; (iv) the Payment Due Date and the Maturity Date; (v)
the date installments of interest and/or principal were last paid; (vi) that,
except as provided in such statement, no defaults or, to the best knowledge of
Borrower, events which would be an Event of Default with the giving of any
applicable notice or the expiration of any applicable grace or cure period or
both exist; (vii) that the Loan Documents are valid , legal and binding
obligations, subject to bankruptcy, insolvency, reorganization, moratorium and
other laws affecting creditors' rights generally, and have not been modified or,
if modified, giving the particulars of such modifications; (viii) whether any
offsets or defenses exist against Borrower's obligation to pay the Loan and
perform the Obligations and, if any are alleged to exist, a detailed description
thereof; (ix) whether all Leases are in full force and effect, and if not,
describing any deficiencies, and, for Leases other than residential Leases,
whether or not they have been modified, and if modified, setting forth all
modifications; (x)a current Rent Roll for the Property, (xi) the date to which
Rents under the Leases have been paid; (xii) whether or not, to the best
knowledge of Borrower, any of the tenants under the Leases are in default under
the Leases, and, if any of the tenants are in default, setting forth the
specific nature of all such defaults; and (xiii) such other matters reasonably
requested by Lender and reasonably related to the Leases or the Property.

            (b) Tenant Estoppels. Borrower shall deliver to Lender, promptly
upon Lender's written request (but in any event no later than twenty (20) days
following Lender's request), duly executed estoppel certificates from tenants
identified by Lender attesting to such facts regarding a tenant's
non-residential Lease as Lender may require, including, without limitation: (i)
that the Lease is in full force and effect with no defaults thereunder on the
part of any party, and no event exists that would be an event of default
thereunder with giving of any

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<PAGE>

applicable notice or the expiration of any applicable grace or cure period or
both, or if one or more defaults exists, specifying the nature thereof; (ii)
that none of the Rents have been paid more than one month in advance of the date
when due under the Lease, except as a security deposit; and (iii)that the tenant
claims no defense or offset against the full and timely performance of its
obligations under the Lease, or if such claims exist, specifying the nature
thereof. Borrower shall have no obligation to deliver an estoppel certificate
from Ply Gem with respect to any matters not required to be certified by ply Gem
under the terms of the Ply Gem Lease and no Event of Default shall exist if Ply
Gem does not deliver any such estoppel within the required timeframe so long as
Borrower is deligently attempting to obtain such estoppel.

            (C) Lender Statement of Loan Information. after written request by
Borrower not more than twice annually, Lender shall furnish Borrower a statement
setting forth: (i) the original Maximum Loan Amount and the amount of principal
advanced by Lender as of the certificate date; (ii) the unpaid principal amount
of the Loan; (iii) the rate of interest accruing on the Loan, including the then
Applicable Interest Rate; and (iv) the balance of amounts held in the Reserve
Accounts, if any.

      16.04. Recording Costs. Borrower will pay all transfer taxes, filing,
registration, recording or similar fees, and all expenses incident to the
preparation, execution, acknowledgment, recording, filing and/or release or
discharge of the Note, the Security Instrument and each of the other Loan
Documents, and all modifications, extensions, consolidations, or restatements of
the same, except where prohibited by law so to do.

      16.05 Publicity. Borrower acknowledges and agrees that Lender may release
publicity articles concerning the financing or servicing of the Loan.

                                   ARTICLE 17
                                 LENDER CONSENT

      17.01.No Joint Venture; No Third Party Beneficiaries. Borrower and Lender
intend that the relationships created hereunder and under each of the other Loan
Documents are solely those of borrower and lender. Nothing herein or in any of
the other Loan Documents is intended to create, nor shall it be construed as
creating anything but a debtor-creditor relationship between Borrower and Lender
nor shall they be deemed to confer on anyone other than Lender, and its
successors and assigns, any right to insist upon or to enforce the performance
or observance of any of the obligations contained herein or therein.

     17.02. Lender Approval. Wherever pursuant to a Loan Document (a) Lender
exercises any right to approve or disapprove or to grant or withhold consent;
(b) any arrangement or term is to be satisfactory to Lender; (c) a waiver is
requested from Lender, or (d) any other decision is to be made by Lender, all
shall be made in Lender's sole discretion, unless expressly provided otherwise
in such Loan Document. By approving or granting consent, accepting performance
from Borrower, or releasing funds from a Reserve Account, Lender shall not be
deemed to have

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warranted or affirmed the sufficiency, completeness, legality or effectiveness
of the subject matter or of Borrower's compliance with Requirements of Laws.
Notwithstanding any provision under the Loan Documents which provides Lender the
approve or disapprove any action or decision by Borrower, Lender is not thereby
opportunity to undertaking the performance of any obligation of Borrower under
any of the Loan Documents or any of the other documents and agreements in
connection with this transaction(including, without limitation, the Leases).

      17.03. Performance at Borrower's Expense. Borrower acknowledges and
agrees that in connection with each request by Borrower to: (a) modify or waive
any provision of the Loan Documents; (b) release or substitute Property; (c)
obtain Lender's approval or consent whenever required by the Loan Documents
including, without limitation, review of a Transfer request, matters affecting a
Major Lease, improvements or alterations to the Property, and easements or other
additions to Permitted Encumbrances; or (d) provide a subordination,
non-disturbance and attornment agreement, Lender reserves the right to collect
a review or processing fee from Borrower based on a reasonable estimate of the
administrative costs which lender will incur to connection therewith. Borrower
agrees to pay such fee along with all reasonable legal fees and expenses
incurred by Lender and the fees required for a Rating Confirmation or approval
from the trustee if the Loan has been Securitized, as applicable, irrespective
of whether the matter is approved, denied or withdrawn. Any amounts payable by
Borrower hereunder, shall be deemed a part of the Loan, shall be secured by this
Loan Agreement and shall bear interest at the Default Rate if not fully paid
within ten (10) days of written demand for payment.

      17.04. Non-Reliance. Borrower agrees that any diligence or
investigation performed by or on behalf of Lender in underwriting or servicing
the Loan (including, without limitation, information obtained about the Property
the Borrower or its equity investors or affiliates) does not in any respect
limit or excuse any of Borrower's representations, warranties, covenants or
agreements set forth in this Loan Agreement or any of the other Loan Documents.
The fact that Lender has performed diligence does not affect Lender's ability or
right to rely fully upon the representations, warranties , covenants and
agreements made by Borrower in the Loan Documents or to pursue any available
remedy for a breach thereof. If Lender delivers or has delivered to Borrower
(or to Borrower's agents, equity investors or representatives) any information
obtained or developed by Lender relating to the Loan, the Property or Borrower,
Borrower acknowledges and agrees that such information has been delivered for
informational purposes only and Lender has no liability of responsibility to
Borrower with respect to such information, including, without limitation, the
completeness or accuracy of any such information. No due diligence consultant
engaged by Lender is or shall deemed an agent of Lender.

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                                   ARTICLE 18
                            MISCELLANEOUS PROVISIONS

      18.01. Notices. All notices and other communications under this Loan
Agreement are to be in writing and addressed to each party as set forth below.
Default or demand notices shall be deemed to have been duly given upon the
earlier of: (a) actual receipt; (b) one (1) business day after having been
timely deposited for overnight delivery, fee prepaid, with a reputable overnight
courier service, having a reliable tracking system; or (c) three (3) business
days after having been deposited in any post office or mail depository regularly
maintained by the U.S. Postal Service and sent by certified mail, postage
prepaid, return receipt requested, and in the case of clause (b) and (c)
irrespective of whether delivery is accepted. A new address for notice may be
established by written notice to the other, provided, however, that no change of
address will be effective until written notice thereof actually is received by
the party to whom such address change is sent. Notice to outside counsel or
parties other than the named Borrower and Lender, now or hereafter designated by
a party as entitled to notice, are for convenience only and are not required for
notice to a party to be effective in accordance with this section. Notice
addresses are as follows:

      Address for Lender:     GMAC Commercial Mortgage Bank
                              6955 Union Park Center, Suite 330
                              Midvale, Utah 84047
                              Attn.: Servicing Accounting - Manager
                              Fax: 215-328-3478

                              With a required copy to:

                              GMAC Commercial Mortgage Corporation
                              200 Witmer Road
                              Horsham, PA 19044
                              Attn.: PLG Asset Manager
                              Fax: 215-328-1190

      Address for Borrower:   PG (MULTI-16) L.P.
                              c/o W.P. Carey & Co. LLC
                              50 Rockefeller Plaza - 2nd Floor
                              New York, NY 10020
                              Attn.: Director, Asset Management
                              Fax: (212) 492-8922

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      and                 Reed Smith LLP
                          One Liberty Place
                          Philadelphia, PA 19103
                          Attn.: Chairman, Real Estate Department
                          Fax: (215) 851-1421

      18.02. Entire Agreement; Modifications; Time of Essence. This Loan
Agreement, together with the other Loan Documents, contain the entire agreement
between Borrower and Lender relating to the Loan and supersede and replace all
prior discussions, representations, communications and agreements (oral or
written). If any documents relating to the Loan are in conflict, the Note shall
control over this Loan Agreement, and this Loan Agreement shall control over all
of the other documents. No Loan Document shall be modified, supplemented or
terminated, nor any provision thereof waived, except by a written instrument
signed by the party against whom enforcement thereof is sought, and then only to
the extend expressly set forth in such writing. Time is of the essence with
respect to all of Borrower's and Lender's obligations under the Loan Documents.

      18.03. Binding Effect; Joint and Several Obligations. This Loan Agreement
and each of the other Loan Documents shall be binding upon and inure to the
benefit of Borrower and Lender and their respective successors and assigns,
whether by voluntary action of the parties or by operation of law.(The foregoing
does not modify any conditions regulating Transfers.) Except as specifically
provided herein, if Borrower consists of more than one party, each shall be
jointly and severally liable to perform the obligations of Borrower under the
Loan Documents.

      18.04. Duplicate Originals; Counterparts. This Loan Agreement and each of
the other Loan Documents may be executed in any number of duplicate originals,
and each duplicate original shall be deemed to be an original. This Loan
Agreement and each of the other Loan Documents (and each duplicate original)
also may be executed in any number of counterparts, each of which shall be
deemed an original and all of which together constitute a fully executed
agreement even though all signatures do not appear on the same document.

      18.05. Unenforceable Provisions. Any provision of this Loan Agreement or
any other Loan Documents which is determined by a court of competent
jurisdiction or government body to be invalid, unenforceable or illegal shall be
ineffective only to the extend of such holding and shall not affect the
validity, enforceability or legality of any other provision, nor shall such
determination apply in any circumstance or to any party not controlled by such
determination.

      18.06. Governing Law. This Loan Agreement and each of the other Loan
Documents shall be interpreted and enforced according to the laws of the State
of New York, except that with respect to real estate laws, the law of the state
where the Property is located shall govern (in all events without giving effect
to rules regarding conflict of laws).

      18.07. Consent to Jurisdiction. Borrower hereby consents and submits to
the exclusive jurisdiction and venue of any state or federal court sitting in
the county and state where the

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Property encumbered hereby is located with respect to any legal action or
proceeding arising with respect to the Loan Documents and waives all objections
which it may have to such jurisdiction and venue. Nothing herein shall,
however, preclude or prevent Lender from bringing actions against Borrower in
any other jurisdiction as may be necessary to enforce or realize upon the
security for the Loan provided in any of the Loan Documents.

      18.08. WAIVER OF TRIAL BY JURY. BORROWER AND LENDER EACH WAIVE THEIR
RESPECTIVE RIGHT, TO THE FULLEST EXTENT PERMITTED BY LAW, AND AGREE NOT TO ELECT
A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS LOAN AGREEMENT,
ANY OTHER LOAN DOCUMENT, OR THE RELATIONSHIP BETWEEN THE PARTIES AS BORROWER AND
LENDER.

                                   ARTICLE 19
                            SUBSTITUTION OF PROPERTY

      19.01. Substitution of Properties. Subject to the terms of this Section,
Borrower may obtain a release of the lien of the Property-related Loan Documents
from up to three (3) parcels constituting the Property (the "RELEASE PROPERTY"),
which constitute in the aggregate, not more than thirty percent (30%) of the
total cash flow of the Property, by substituting therefor an office and/or
industrial property of like quality to be owned by a subsidiary of the Guarantor
(a "SUBSTITUTE PROPERTY"), provided that the following conditions precedent are
satisfied.

            (a)   Lender shall have received at least sixty (60) days prior
written notice requesting the substitution and identifying the Substitute
Property and Release Property.

            (b)   Lender shall have received (i) a copy of a deed conveying all
of Borrower's right, title and interest in and to the Release Property to a
Person other than Borrower or any principal or affiliate of Borrower pursuant
to an arms length transaction, and (ii) a letter from Borrower countersigned by
a title insurance company acknowledging receipt of such deed and agreeing to
record such deed in the real estate records for the county or town (as
applicable) in which the Release Property is located simultaneously with the
substitution.

            (c)   Lender shall have received a current M.A.I. appraisal of the
Release Property, the Substitute Property and the Remaining Property
(hereinafter defined) in form and substance meeting the standards of prudent
institutional lenders prepared within six (6) months prior to the release and
substitution (i) showing as to the Substitute Property an appraised value equal
to or greater than the appraised value of the Release Property as of the
original closing date of the Loan, and (ii) which supports a post-substitution,
aggregate loan-to-value ratio, for all properties that will secure the Loan
after the substitution, that does not exceed the lesser of (A) the aggregate
loan-to-value ratio for the properties securing the Loan as of the original
closing date of the Loan or (B) the aggregate loan-to-value ratio of such
properties immediately prior to the date of the proposed substitution.

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<PAGE>

         (d) RESERVED.

         (e) Lender shall have received a certificate of Borrower, together with
all supporting financial information and other documentation satisfactory to
Lender, certifying that, after the substitution (i) with respect to any
Remaining Property which shall continue to secure the Loan, the debt service
coverage ratio for the twelve (12) months immediately preceding the closing date
of the substitution (as determined by Lender in its sole discretion) shall be
equal to or greater than the debt service coverage ratio for such Remaining
Property (excluding the Substitute Property) during the twelve (12) months
immediately preceding the original closing date of the Loan, and (ii) with
respect to the Substitute Property, the debt service coverage ratio for the
twelve (12) months immediately preceding the date of the substitution (as
determined by Lender in its sole discretion) shall be equal to or greater than
the corresponding debt service coverage ratio for the Release Property during
the twelve (12) months  immediately  preceding the closing date of the
substitution, such that the aggregate debt service coverage ratio for all
properties securing the Loan prior to the substitution shall remain unchanged
upon the closing date of the substitution notwithstanding the substitution of
property securing the Loan. In the event that trailing twelve (12) month net
operating income for the Substitution Property is not available, Lender agrees
to base its determination of compliance with this subsection (e) upon the best
available financial information for the Substitute Property by estimating an
underwritten net cash flow amount to be used in lieu of trailing twelve (12)
month Net Operating Income.

         (f) Lender shall have received, at the sole cost and expense of
Borrower, (i) confirmation in writing from the Rating Agencies to the effect
that such release and  substitution  will not result in a  withdrawal,
qualification or downgrade of the respective ratings in effect immediately prior
to such release and substitution of the Securities issued in connection with the
Securitization, and (ii) the consent of the servicer of the Loan, which consent
shall not be unreasonably withheld or delayed. If the Loan is not part of a
Securitization, Lender shall have consented in writing to such release and
substitution, which consent shall be given in Lender's reasonable discretion
applying the standard of a prudent institutional lender with respect to a Loan
of similar size to be secured by real estate collateral of similar size, scope
and value of the Substitute Property.

         (g) No Event of Default shall have occurred and be continuing under the
Note, this Loan Agreement or the other Loan Documents and Borrower shall be in
compliance in all material respects with all of the terms and conditions set
forth in this Loan Agreement and in each other Loan Document. Lender shall have
received a certificate from Borrower,  in form and substance reasonably
satisfactory to Lender and the Rating Agencies, confirming the foregoing,
stating that the representations and warranties of Borrower contained in this
Loan Agreement and the other Loan Documents are true and correct in all material
respects on and as of the data of the release and substitution with respect to
Borrower, the Remaining Property and the Substitute Property and containing any
other representations and warranties with respect to Borrower, the Properties
and the Substitute Property, such certificate to be in form and substance
satisfactory to Lender or the Rating Agencies, as applicable.

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<PAGE>

      (h) Borrower shall (A) have executed, acknowledged and delivered to Lender
(i) a Security Instrument, an Assignment of Leases and Rents and two UCC-1
Financing Statements with respect to the Substitute Property and the Borrower,
together with a letter from Borrower countersigned by a title insurance company
acknowledging receipt of such Security Instrument, Assignment of Leases and
Rents and UCC-1 Financing Statements and agreeing to record or file, as
applicable, such Security Instrument, Assignment of Leases and Rents and one of
the UCC-1 Financing Statements in the real estate records for the county or town
(as applicable) in which the Substitute Property is located and to file one of
the UCC-1 Financing Statement in the office of the Secretary of State (or other
central filing office) of the State in which the Borrower is organized, so as to
effectively create upon such recording and filing valid and enforceable first
priority liens upon the Substitute Property, in favor of Lender, subject only to
encumbrances acceptable to Lender in its sole discretion and (ii) an
Environmental Indemnity of Inseminator with respect to the Substitute property,
and (B) have caused Guarantor to acknowledge and reaffirm its continuing
obligations under the other Loan Documents. The Security Instrument, Assignment
of Leases and Rents, UCC-1 Financing Statements and Environmental Indemnity
shall be on the same form as and substantively equivalent to the counterparts of
such documents executed and delivered with respect to the Release Property,
subject only to modifications reflecting the substitution and any local law of
the State in which the Substitute Property is located. The Security Instrument
encumbering the Substitute Property shall secure all amounts then outstanding
under the Note, provided that in the event that the jurisdiction in which the
Substitute Property is located imposes a mortgage recording, intangibles or
similar tax and does not permit the allocation of indebtedness for the purpose
of determining the amount of such tax payable, the principal amount secured by
such Security Instrument shall be equal to one hundred twenty-five percent
(125%) of the Allocated Loan Amount for the Substitute Property. The amount of
the Loan allocated to the Substitute Property (such amount being hereinafter
referred to as the "SUBSTITUTE ALLOCATED LOAN AMOUNT") shall equal the Allocated
Loan Amount of the related Release Property.

      (i) Lender shall have received and ALTA title insurance policy (or a
marked, signed and redated commitment to issue such title insurance policy)
insuring the lien of the Security Instrument encumbering the Substitute
Property, issued by the title company that issued the title insurance policies
insuring the lien of the Security Instrument for the Remaining Property and
dated as of the date of the substitution. The title insurance policy issued with
respect to the Substitute Property shall (1) provide coverage in the amount of
the Substitute Allocated Loan Amount if a "tie-in" or similar endorsement
described above is available or, if such endorsement is not available, in an
amount equal to one hundred twenty-five percent (125%) of the substitute
Allocated Loan Amount, (2) insure Lender's valid first lien on the Substitute
Property, free and clear of all exceptions from coverage other than encumbrances
acceptable to Lender in its sole discretion and standard exceptions and
exclusions from coverage (as modified by the terms of any endorsements), (3)
contain such endorsements and affirmative coverages, provided same are available
in the jurisdiction in which the Property is located, as a prudent institutional
lender would require, including, without limitation, a "first loss" endorsement
as of the date of the substitution, a deletion of the creditors rights exclusion
and
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deletion of arbitration provisions, a single tax lot endorsement, and (4) name
Lender and its successors and assigns as the insured. Lender also shall have
received copies of a closing statement or other evidence showing that all
premiums in respect of such endorsements and title insurance policy have been
paid. Notwithstanding the foregoing, if a single or separate tax lot endorsement
is not available, Borrower shall provide a letter from the appropriate taxing
authority stating that the Substitute Property constitutes a separate tax lot.

            (j) Lender shall have received a current survey for the Substitute
Property in form and substance reasonably acceptable to Lender, certified to the
Borrower, the title company, the Lender and its successors and assigns, on
Lender's then current required certification form prepared by a professional
land surveyor licensed in the state in which the Substitute Property is located
and acceptable to the Rating Agencies, and prepared in accordance with the 1999
Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys. Such
survey shall reflect the same legal description contained in the title insurance
policy relating to such Substitute Property and shall include, among other
things, a metes and bounds description of the real Property comprising part of
such Substitute Property (unless such real has been satisfactorily designated by
lot number on a recorded plat). The surveyor's seal shall be affixed to each
survey and each survey shall certify whether or not the surveyed property is
located in a flood hazard area."

            (k) Lender shall have received valid certificates of insurance
indicating that the insurance requirements for policies of insurance as required
hereunder have been satisfied with respect to the Substitute Property and
evidencing the payment of all insurance premiums payable for the existing policy
period.

            (l) Lender shall have received a Phase I environmental report dated
not more than twelve (12) months prior to the proposed date of substitution and
otherwise acceptable to a prudent institutional lender and, if recommended under
the Phase I environmental report, a Phase II environmental report that would be
acceptable to a prudent institutional lender, which reports collectively
conclude that the Substitute Property does not contain any Hazardous Materials
or Releases and is not subject to a risk of contamination from any on-site
activity or off-site Hazardous Materials or Releases; provided, however, in the
event that either report discloses that such Substitute Property contains any
Hazardous Materials, Release, or a risk of contamination from any on-site
activity or off-site Hazardous Materials or Releases, Lender will not disqualify
such Substitute Property on the basis of such condition(s); provided, however,
in the event that either report discloses that such Substitute Property contains
any Hazardous Materials, Release, or a risk of contamination from any on-site
activity or off-site Hazardous Materials or Releases, Lender will not disqualify
such Substitute Property on the basis of such condition(s); provided further,
however, that (i) such condition(s) are capable of and will be remediated to the
extent required by Environmental Law, pursuant to any directive from any
government authority, and/or required pursuant to the Environmental Indemnity
Agreement, dated as of the date hereof, within two (2) years after the effective
date of the substitution but, in no event, later than 12 months prior to the
Maturity Date and Borrower agrees in writing that failure to complete such

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remediation as aforesaid shall be an Event of Default; (ii) the cost to
remediate such condition(s) shall be established in the Phase I add/or Phase II
environmental report and shall not be in excess of five percent(5%) of the
appraised value of such Substitute Property but in no event, may the cost be in
excess of $300,000 and; (iii) in connection with such remediation, additional
security will be delivered prior to the effective date of the substitution,
which security shall facilitate the cure of or cure the same, which security may
include, without limitation, the posting of a letter of credit that satisfies
all of Lender's standard requirements or the establishment of a reserve or
escrow in an amount equal to 150% of the cost to cover the remediation, or
delivery of environmental insurance (e.g. secured creditor environmental
insurance policy). In all respects, to the extent any environmental condition
exists, such plan to remediate, the determination of the cost to remediate,
and/or additional security provided shall be acceptable to a prudent
institutional lender.

            (m) Borrower shall deliver or cause to be delivered to Lender
certified (A) updates of all organizational documents of Borrower and its
managing member or general partner (including incumbency certificates and
certificates of existence, good standing and/or qualification to do business in
the states in which the Borrower is organized and in which the properties
securing the Loan are located), and (B) resolutions of Borrower authorizing the
release and substitution and affirming and ratifying any and all actions taken
in connection with such release and substitution.

            (n) Lender shall have received the following opinions of Borrower's
counsel: (A) an opinion or opinions of counsel admitted to practice under the
laws of the state in which the Substitute Property is located stating that,
among other things, the Security Instrument and other Loan Documents delivered
with respect to the Substitute Property are valid and enforceable in accordance
with their terms, subject to the laws applicable to creditors' rights and
equitable principles, and that Borrower is qualified to do business and is in
good standing under the laws of the jurisdiction where the Substitute Property
is located or that Borrower is not required by Applicable Law to qualify to do
business in such jurisdiction; (B) an opinion of counsel acceptable to the
Rating Agencies, if the Loan is part of a Securitization, or to Lender if the
Loan is not part of a Securitization, stating that the Loan Documents delivered
with respect to the Substitute Property pursuant to this section, are among
other things, duly authorized, executed and delivered by Borrower and that the
execution and delivery of such security instrument and other Loan Documents and
the performance by Borrower of its obligations thereunder will not cause a
breach of, or a default under its organizational documents, any security
instrument, document, agreement or instrument to which Borrower is a party or to
which it or its properties are bound or any judgment to which Borrower or its
properties are subject; (C) an update of any insolvency and/or non-consolidation
opinion previously provided to Lender indicating that the substitution does not
affect the opinions set forth therein; (D) if the Loan is part of a
Securitization , an opinion of counsel acceptable to the Rating Agencies that
the substitution does not constitute a "significant modification" of the Loan
under Section 1001 of the Code or otherwise cause a tax to be imposed on a
"prohibited transaction" by any REMIC Trust.

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            (o) Borrower shall (i) have paid, (ii) have escrowed with Lender or
(iii) be contesting in accordance with the terms hereof, all basic carrying
costs relating to each of the properties securing the Loan prior to the
substitution, as well as the Substitute Property, including without limitation,
(x) accrued but unpaid Insurance Premiums, (y) currently due and payable Taxes
(including any in arrears) and (z) currently due and payable charges, if any.

            (p) Borrower shall have paid or reimbursed Lender for all costs and
expenses incurred by Lender (including, without limitation, reasonable
attorneys' fees and disbursements) in connection with the release and
substitution and Borrower shall have paid all recording charges, filing fees,
taxes or other expenses (including, without limitation, mortgage and intangibles
taxes and documentary stamp taxes) payable in connection with the substitution.
Borrower shall have paid all costs and expenses of the Rating Agencies incurred
in connection with the substitution.

            (q) Lender shall have received annual operating statements and
occupancy statements for the Substitute Property for the most current completed
fiscal year and a current operating statement for the Release Property, each
certified by Borrower to Lender as being true and correct in all material
respects and a certificate from Borrower certifying that there has been no
material adverse change in the financial condition of the Substitute Property
since the date of such operating statements.

            (r) Lender shall have received copies of all Leases affecting the
Substitute Property, certified by Borrower as being true and correct.

            (s) Lender shall have determined that tenants occupying 100% of the
net rentable space at the Substitute Property have taken occupancy on a
rent-paying basis and are open for business at the Substitute Property. Borrower
shall have delivered to Lender a certified rent roll and estoppel certificates
from all tenants at the Substitute Property. All such estoppel certificates
shall be substantially on Lender's then current standard form and shall indicate
that (1) the subject Lease is a valid and binding obligation of the tenant
thereunder and that the tenant is open for business and occupying the property
on a full rent-paying basis, (2) to the best of the tenant's knowledge, there
are no defaults under such Lease on the part of the landlord or tenant, (3) the
tenant has no Knowledge of any defense or offset to the payment of rent under
such Lease, (4) no rent under such Lease has been paid more than one (1) month
in advance or as otherwise provided in a Lease which has been approved by
Lender, (5) the tenant has no option to purchase all or any portion of the
Substitute Property, and (6) all tenant improvement work required under such
Lease has been substantially completed and the tenant under such Lease is in
actual occupancy of its leased premises. If an estoppel certificate indicates
that any tenant improvement work required under the relevant Lease has not yet
been completed. Borrower, at Lender's option, shall deliver to Lender financial
statements indicating that Borrower has adequate funds to pay all costs related
to such tenant improvement work as required under such Lease or deliver to
Lender the amount of 125% of the estimated cost of such tenant improvement.

                                      -79-

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<PAGE>

work for deposit into and disbursement in accordance with the Tenant Improvement
and Leasing Commission Reserve.

            (t) Lender shall have received subordination agreements on Lender's
then current standard form (or such other form approved by Lender) with respect
to all tenants, including Ply Gem, if applicable, at the Substitute Property to
the extent such Leases are not automatically subordinate (in lien and in terms)
to Lender's Loan and the security instrument.

            (u) Lender shall have received an engineering report with respect to
the Substitute Property from an engineer on Lender's approved consultant list
starting that the Substitute Property is in good condition and repair and free
of damage or waste or in the event such report indicates the need for immediate
or on-going repairs at the Substitute Property, Lender shall have established a
reserve in the amount of 125% of the estimated cost of completing such immediate
or on-going repairs, provided, however, in no event shall Lender be obligated to
accept a Substitute Property if the physical condition report relating to such
Substitute Property indicates any damage or deficiencies which in Lender's
judgment create a risk to the safety or well-being to the occupants of
substitute Property.

            (V) RESERVED.

            (w) Lender Shall have received evidence reasonably satisfactory to
Lender (including, without limitation, a zoning endorsement, property and zoning
report, and/or municipality letter substantially on Lender's then current form)
that the Substitute Property and its use comply in all material respects with
Applicable Laws.

            (x) Lender shall have received evidence which would be satisfactory
to a prudent institutional mortgage loan lender to the effect that all material
building and operating licenses and permits necessary for the use and occupancy
of the Substitute Property including, but not limited to, current certificates
of occupancy, have been obtained and are in full force and effect.

            (y) Lender shall have received and approved a certified copy of a
property management agreement if the Substitute Property is not otherwise
self-managed by a lessee that has been approved by Lender, with a manager
satisfactory to Lender (or an amendment to an existing approved management
agreement) for the Substitute Property which property management agreement shall
be terminable without cause, and satisfactory to Lender as to form and substance
and the manger shall have executed and delivered to Lender an assignment of
management agreement on Lender's then current standard form (or an amendment to
the existing Assignment of Management Agreement).

            (z) Lender shall have received copies of all contracts and Security
Instruments relating to the leasing and operation of the Substitute Property,
each of which shall be in a form and substance which would be satisfactory to a
prudent institutional mortgage loan lender, together with a certification of
Borrower attached to each such contract or Security Instrument

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<PAGE>

certifying that the attached copy is a true and correct copy of such contract or
Security Instrument and all amendments thereto.

            (aa) Lender shall have received such other approvals, opinions,
documents and information in connection with substitution as requested by the
Rating Agencies, Lender or the servicer or servicers of the Securitization, if
the Loan is part of a Securitization, or Lender if the Loan is not part of a
Securitization.

            (bb) Lender shall have received certified copies of all material
consents, licenses and approvals, if any, required in connection with the
substitution and the Substitute Property, and evidence that such consents,
licenses and approvals are in full force and effect.

            (cc) Lender shall have received satisfactory (i.e., showing no liens
other than Permitted Encumbrances) UCC searches, together with tax lien,
judgment and litigation searches with respect to the Substitute Property, the
Borrower and any Guarantor/Indemnitor, in the state where the Substitute
Property is located and the jurisdictions in which each person is/are organized
or resides.

            (dd) If Borrower owns a leasehold estate in the Substitute Property,
Lender shall have received, (i) a certified copy of the ground lease for the
Substitute Property, together with all amendments and modifications thereto and
a recorded memorandum thereof, which ground lease would be reasonably
satisfactory in all respects to a prudent institutional mortgage loan lender and
which contains customary leasehold mortgagee provisions and protections, and
which shall provide, among other things, (A) for a remaining term of no less
than the greater of (1) 20 years from the Maturity Date or (2) 10 years from the
end of the scheduled amortization term of the Loan, (B) that the ground lease
shall not be terminated until Lender has received notice of a default
thereunder and has had a reasonable opportunity to cure or complete foreclosure,
and fails to do so in a diligent manner, (C) for a new lease on the same terms
to Lender as tenant if the ground lease is terminated for any reason, (D) the
non-merger of fee and leasehold interests, and (E) that insurance proceeds and
condemnation awards (from the fee interest as well, as the leasehold interest)
will be applied pursuant to the terms of the Security Instrument with respect to
the Substitute Property, and (ii) a ground lease estoppel executed by the fee
owner and ground lessor of the Substitute Property, reasonably acceptable to a
prudent institutional mortgage loan lender.

            (ee) Borrower shall submit to Lender, not less than twenty (20)
business days prior to the date of such substitution, a release of lien (and
other Property-related Loan Documents) for the Release Property for execution by
Lender. Such release shall be in a form appropriate for the jurisdiction in
which the Release Property is located and shall contain standard provisions, if
any, protecting the rights of the releasing lender.

            (ff) Borrower shall deliver a certificate certifying that the
requirements set forth in this section have been satisfied.

                                                              Ply Gem Industries

                                      -81-
<PAGE>

                                   ARTICLE 20
                              LIST OF DEFINED TERMS

      20.01. Definitions. The following words and phrases shall have meaning
specified below.

            "ACCEPTABLE REPLACEMENT LEASE" means a replacement lease for the
entire Property with an Acceptable Replacement Tenant acceptable to Lender in
its sole discretion.

            "ACCEPTABLE REPLACEMENT TENANT" shall mean a single-user tenant
acceptable to Lender in its sole discretion.

            "Affiliate" of any Person means (a) any other Person which, directly
or indirectly, is in Control of, is Controlled by or is under common Control
with, such Person; (b) any other Person who is a director or officer of (i) such
Person, (ii) any subsidiary of such Person, or (iii) any Person described in
clause (a) above; or (c) any corporation, limited liability company or
partnership which has as a director any Person described in clause (b) above.

            "APPLICABLE INTEREST RATE" has the meaning set forth in Section
2.02(b) of this Loan Agreement.

            "APPROVED BUDGET" has the meaning set forth in Section 9.11(a)(v) of
this Loan Agreement.

            "ASSIGNMENT OF LEASES AND RENTS" means the Assignment of Leases and
Rents dated as of the Closing Date from Borrower, as assignor, to Lender, as
assignee, assigning to Lender all of Borrower's right, title and interest in
and to the Leases and the Rents with respect to the Property.

            "ASSIGNMENT OF PROPERTY MANAGEMENT CONTRACT" means any Assignment
of Property Management Contract and Subordination of Management Fees executed
pursuant to Section 9.14

            "BANKRUPTCY CODE" means the Bankruptcy Reform Act of 1978 codified
as 11 U.S.C. Section 101 et. seq., and the regulations issued thereunder, both
as hereafter modified from time to time.

            "BORROWER" has the meaning set forth in the introductory paragraph
of this Loan Agreement.

            "BUSINESS DAY" or "BUSINESS DAY" means any day other than a
Saturday, a Sunday, or days when Federal Banks located in the State of New York
or Commonwealth of Pennsylvania are closed for a legal holiday or by government
directive. When used with respect.

                                      -82-

                                                              Ply Gem Industries
<PAGE>

 to the Interest Rate Adjustment Date, "Business Day" shall mean a day on which
 the banks are open for dealing in foreign currency and exchange in New York
 City and London.

            "CAPITAL EXPENDITURES" means any hard or soft costs spent to add,
improve or expand property, plant and  equipment assets (including, without
limitation, the Capital Improvements and Replacements contemplated under the
Loan) and/or amounts budgeted for the future for the same purposes.

            "CASH" shall mean the coin or currency of the United States or
immediately available federal funds, including such funds delivered by wire
transfer.

            "CASH FLOW AVAILABLE FOR DEBT SERVICE" means, for a specified
period, (a) the Operating Income less (b) Operating Expenses as determined by
Lender.

            "CASUALTY" means the occurrence of damage or destruction to the
Property, or any part thereof, by fire, flood, vandalism, windstorm, hurricane,
earthquake, acts of terrorism or any other casualty.

            "CLOSING DATE" means October 22, 2004.

            "CONDEMNATION" means the taking by any Governmental Authority of the
Property or any part thereof through eminent domain or otherwise (including,
without limitation, any transfer made in lieu of or in anticipation of the
exercise of such taking).

            "CONTROL" means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of a 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."

            "DATA DELIVERY FAILURE" means, without reference to any cure period
under Article 11, each instance that any of the following occur: (a) failure to
deliver any of the reports, information, statements or other materials required
under Section 9.11 within five (5) business days after written notice from
Lender, (b) failure to provide the Compliance Certificate within five (5)
business days after written notice from Lender, or (c) failure to permit
Lender or its representatives to inspect or copy books and records within two
(2) business days of Lender's written request.

            "DATA DELIVERY FAILURE FEE" means an amount of Two Thousand Five
Hundred Dollars ($2,500.00) for the first failure, Five Thousand Dollars
($5,000.00) for the second failure, Ten Thousand Dollars ($10,000.00) for the
third failure and each failure thereafter.

            "DEBT" means the aggregate of all principal and interest payments
that accrue or are due and payable in accordance with the Loan Agreement,
together with any other amounts

                                                              Ply Gem Industries

                                     - 83 -
<PAGE>

due under the Loan Documents. The terms "Debt" and "Loan" have to same meaning
whenever used in the Loan Documents.

            "DEBT SERVICE COVERAGE RATIO" means, as to a specific period, the
ratio of (a) the Cash Flow Available for Debt Service, to (b) the principal and
interest that would be due and payable under the Note based on the then current
Applicable Interest Rate.

            "DEFAULT RATE" has the meaning set forth in Section 2.04(e) of this
Loan Agreement.

            "DEFEASANCE" has the meaning set forth in Section 2.05(b)(i) of this
Loan Agreement.

            "DEFEASANCE COLLATERAL" has the meaning set forth in Section
2.05(b)(iii) of this Loan Agreement.

            "DEFEASANCE PLEDGE AGREEMENT" has the meaning set forth in Section
2.05(b)(ii) of this Loan Agreement.

            "DISBURSEMENT REQUEST" means a written request from Borrower
delivered to Lender, substantially in the form attached hereto as Exhibit A,
signed, by a Responsible Officer of Borrower and requesting Lender to disburse
funds from a Reserve Account. Each Disbursement Request shall describe in
reasonable detail the use of the funds requested by the Disbursement Request and
shall have attached to it, as applicable: (a) the invoices for all items or
materials purchased or services performed which are to be funded by the
Disbursement Request, and (b) with respect to any final disbursement, copies of
all permits, licenses and approvals, if any, by any Governmental Authority
confirming completion of the Reserve Items, IF an original invoice is not
available. Borrower shall be required to evidence, to Lender's satisfaction, the
amounts expended for which reimbursement is requested.

            "DISCLOSURE DOCUMENTS" has the meaning set forth in Section 15.03 of
this Loan Agreement.

            "ENVIRONMENTAL INDEMNITY" means the Environmental Indemnity
Agreement dated as of the Closing Date from Borrower and the other Environmental
Indemnitors named therein to Lender.

            "EQUITY INTERESTS" means (a) Partnership interests (whether general
or limited) in an entity which is a partnership; (b) membership interests in an.
entity which if a limited liability company; or (c) the shares or stock
interests in an entity which is a corporation.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
and the regulations issued thereunder, all as amended or restated from time to
time.

                                                              Ply Gem Industries

                                      -84-
<PAGE>

             "EVENT OF DEFAULT" means any of the events specified in Section
11.01 of this Loan Agreement.

            "FRB RELEASE" has the meaning set forth in Section 2.05(c) of this
Loan Agreement.

            "GAAP" means generally accepted accounting principles in the United
States of America as in effect from time to time.

            "GOVERNMENTAL AUTHORITY" means any nation or government, any state
or other political subdivision thereof, and any Person exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to such government.

            "GUARANTOR" means the following Person: Corporate Property
Associates 16 Global Incorporated, who is executing Guaranty as guarantor and
the Environment Indemnity as indemnitor.

            "GUARANTY" means the Guaranty of Exceptions to Nonrecourse Liability
dated as of the Closing Date from Guarantor to Lender.

            "IMMEDIATE REPAIRS" means the repairs or improvements to the
property identified on Exhibit B hereto.

            "IMMEDIATE REPAIR DEPOSIT" has the meaning set forth in Section
4.04(b) of this Loan Agreement, subject to adjustment as set forth in Section
4.04(d).

            "IMMEDIATE REPAIR ESCROW ACCOUNT" means an account held by Lender,
or Lender's designee, in which the Immediate Repair Deposit will be held, which
shall not constitute a trust fund.

            "IMPROVEMENTS" has the meaning set forth in the Security Instrument.

            "INDEMNIFIED CLAIM" means the basis for the Indemnified party's
claim for indemnification under Article 13 hereof.

            "INDEMNIFIED PARTIES" means Lender, together with its successors
and assigns, which shall include, without limitation, any owner or prior owner
or holder of Note, any servicer of the Loan, any investor, or holder of a full
or partial interest in the Loan, any receiver or other fiduciary appointed in a
foreclosure or other proceeding under any Requirements of Law regarding
creditors' rights, any officers, directors, shareholders, partners, members,
employees, agents, servants, representatives, contractors, subcontractors,
Affiliates of any and all of the foregoing, in all cases whether during the
term, of the Loan of as part of, or following, a foreclosure of the Security
Instrument.

                                                              Ply Gem Industries

                                     - 85 -
<PAGE>
"INDEPENDENT DIRECTOR" means an individual who shall not have been at the time
been of such individual's initial appointment, and may not have been at any time
during the preceding five years, and shall not be at any time while serving as
an Independent Director of the SPE Equity Owner or Borrower if a single member
limited liability company or, if applicable, either (a) a shareholder of, or an
officer, director, partner or employee of, Borrower or SPE Equity Owner or any
of their respective shareholders, partners members, subsidiaries or
Affiliates,(b) a customer of, or supplier to, Borrower or SPE Equity Owner or
any of their respective shareholders, partners, members, subsidiaries or
Affiliates, (c) a person or other entity Controlling or under common Control
with any such shareholder, officer, director, partner, member, employee,
supplier or customer, or (d) a member of the immediate family of any such
shareholder, officer, partner, member, employee, supplier or customer.

      "INDEX" has the meaning set forth in Section 2.05(c).

      "INSURANCE PREMIUMS" means the premiums for the insurance Borrower is
required to provide pursuant to Section 9.03 of this Loan Agreement.

      "INSURANCE PREMIUM ESCROW ACCOUNT" means an account held by Lender, or
Lender's designee, in which Borrower's initial deposit for Insurance Premiums
paid on the Closing Date and the Monthly Insurance Deposits will be held.

      "ISSUER GROUP" has the meaning set forth in Section 15.05 of this Loan
Agreement.

      "ISSUER PERSON" has the meaning set forth in Section 15.05 of this Loan
Agreement.

      "LAND" has the meaning set forth in the Security Instrument.

      "LARGE LOAN STATEMENTS" has the meaning provided in Section 15.06 of this
Loan Agreement.

      "LEASE" has the meaning set forth in the Security Instrument.

      "LEASE GUARANTY" has the meaning set forth in the Security Instrument.

      "LEASING COMMISSIONS" means leasing commissions incurred by Borrower in
connection with the leasing of any Individual Property or any portion thereof
(including any so-called "override" leasing commissions which may be due to any
leasing or rental agent engaged by Borrower for the Property if an agent other
than such agent also is entitled to a leasing commission, but excluding
commissions due any principal, member, general partner or shareholder of
Borrower or any Affiliate of Borrower).

      "LENDER" has the meaning in the introductory paragraph of this Loan
Agreement.

                                                              Ply Gem Industries

                                     - 86 -
<PAGE>

      "LETTERS OF CREDIT" means those certain letters of credit issued by UBS AG
at the request of Ply Gem Industries, Inc. in the amount of $1,500,000.00 and
$100,000.00, respectively and further described in Section 39 of the Ply Gem
Lease.

      "LIEN" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or otherwise), preference, priority or
other security agreement or preferential arrangement of any kind or nature
whatsoever (including, without limitation, any conditional sale or other title
retention agreement, the filing of any financing statement under the UCC or
comparable law of any jurisdiction in respect of any of the foregoing and a
mechanics' or materialman's lien).

      "LOAN" means the aggregate of all principal and interest payments that
accrue or are due and payable in accordance with the Loan Agreement, together
with any other amounts due under the Loan Documents. The terms "Loan" and "Debt"
have the same meaning whenever used in the Loan Documents.

      "LOAN AGREEMENT" means this Loan Agreement.

      "LOAN DOCUMENT" means, collectively, this Loan Agreement, the Note, the
Security Instrument, the Assignment of Leases and Rents, the Assignment of
Property Management Contract, the Environmental Indemnity, the Guaranty and any
and all other documents and agreements executed in connection with the Loan, as
each such agreement may be modified, supplemented, consolidated, extended or
reinstated from time to time.

      "LOAN TO VALUE RATIO" means with respect to the specified period, the
ratio obtained by dividing (a) the Maximum Loan Amount, by (b) either, as
selected in Lender's discretion, the "as-is" or "as-stabilized" value of the
Property as set forth in the appraisal obtained by Lender in connection with its
underwriting of the Loan or any update thereto, whichever is most recent;
provided however, that should the Operating Income or market rents for the
Property as underwritten by Lender be reduced by ten percent (10%) or more
during the period in question, Lender may obtain a new appraisal at Borrower's
expense.

      "LOCKOUT PERIOD EXPIRATION DATE" has the meaning set forth in Section
2.05(b)(i).

      "LOSSES" means any and all claims, suits, liabilities (including, without
limitation, strict liabilities and liabilities under federal and state
securities laws), actions, proceedings, obligations, debts, damages, losses,
costs, expenses, fines, penalties, charges, fees, judgments, awards, and
amounts paid in settlement of whatever kind or nature (including without
limitation reasonable legal fees and other costs of defense).

      "MAJOR LEASE" means any Lease (excluding any sublease which is otherwise
permitted under the terms of the Ply Gem Lease or an Acceptable Replacement
Lease) covering ten percent (10%) or more rentable square feet of any Individual
Property including any

                                                             Ply Gem Industries
                                        - 87 -
<PAGE>

expansion options or which has a term of more than five (5) years including any
extension or options to renew. Lender may, in Lender's sole discretion,
aggregate any and all Leases to Affiliated to determine whether such Leases
should be treated as a Major Leases.

      "MATERIAL ADVERSE EFFECTS" means, with respect to any circumstance, act,
condition or event of whatever nature (including any adverse determination in
any litigation, arbitration, or governmental investigation or proceeding),
whether singly or in conjunction with any other event, act, condition
circumstances, whether or not related, in Lender's reasonable judgment, a
material adverse change in, or a materially adverse effect upon (a) the
business, operations, prospects or financial condition of Borrower or Guarantor;
(b) the ability of Borrower or Guarantor to perform its obligations under any
Loan Document to which it is a party; (c) the value or condition of the
Property; (d) compliance of the Property with any Requirements of Law; (e) the
validity, priority or enforceability of any Loan Document or the liens, rights
(including, without limitation, recourse against the Property) or remedies of
Lender hereunder or thereunder; or (f) the occupancy rate of the Property.

      "MATURITY DATE" has the meaning set forth in Section 2.03(c) of this Loan
Agreement.

      "MAXIMUM LOAN AMOUNT" means the maximum principal amount of
$17,650,000.00, in lawful money of the United States of America, to be advanced
to Borrower pursuant to this Loan Agreement. References in the Loan Agreement to
"Maximum Loan Amount" mean the maximum principal amount, irrespective of actual
principal amount outstanding or actually advanced to Borrower during the term of
the Loan.

      "MONTHLY INSURANCE DEPOSIT" means, with respect to the specified period,
an amount equal to one-twelfth (1/12) of the Insurance Premiums that Lender
estimates will be payable during the next ensuing twelve(12) months, subject to
adjustment as set forth in Section 4.03(d) of this Loan Agreement.

      "MONTHLY REPLACEMENT RESERVE DEPOSIT" has the meaning set forth in Section
4.05(b) of this Loan Agreement, subject to adjustment as set forth Section
4.05(d).

      "MONTHLY TAX DEPOSITS" means, with respect to the specified period, an
amount equal to one-twelfth (1/12) of the Taxes that Lender estimates will be
payable during the next ensuring twelve (12) months, subject to adjustment as
set forth in Section 4.02(d) of this Loan Agreement.

      "MONTHLY TI/LC DEPOSIT" has the meaning set forth in Section 4.06(b) of
this Loan Agreement, subject to adjustment as set forth in Section 4.06(d).

      "MOODY'S" means Moody's Investors Service, Inc. and any successor thereto.

                                                              Ply Gem Industries

                                     - 88 -
<PAGE>

            "NET WORTH" means, as of a given date, a Person's equity calculated
in conformance with GAAP by subtracting total liabilities from total tangible
assets.

            "NOTE" means the Promissory Note dated as of the Closing Date from
Borrower to the order of Lender in the original principal amount equal to the
Maximum Loan Amount.

            "OBLIGATIONS" means the Loan, and all other obligation and
liabilities of the Borrower to Lender, whether direct or indirect, absolute or
contingent, due or to become due, or now existing or hereafter incurred, which
may arise under, out of, or in connection with the Loan the Loan Documents,
whether on account of principal, interest, fees, indemnities, costs,
expenses (including, without limitation, all reasonable fees and disbursements
of legal counsel) or otherwise.

            "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 any other similar list
maintained by the U.S. Treasury Department, Office of Foreign Assets Control
pursuant to any Requirements of Law, including, without limitation, trade
embargo, economic sanctions, or other prohibitions imposed by Executive Order of
the President of the United States. The OFAC List is accessible through the
internet website www.treas.gov/ofac/t11sdn.pdf.

            "OHIO LETTER OF CREDIT" means that certain letter of credit issued
by USBAG at the request of Ply Gem Industries, Inc. in the amount of
$7,210,000.00 and further described in that certain Agreement to Convey dated
August 27, 2004 between Ply Gem Industries, Inc., a Delaware corporation, Kroy
Building Products, Inc., a Delaware corporation, MWM Holding, Inc., a Delaware
corporation, Great Lakes Window, Inc., an Ohio corporation, MW Manufactures
Holding Corp., a Delaware corporation, MW Manufacturers Inc., a Delaware
corporation, NAPCO Window System, Inc., a Delaware corporation, NAPCO, Inc., a
Delaware corporation, Thermal-Gard, Inc., a Pennsylvania corporation and
Variform, Inc., a Missouri corporation, as tenants, and Borrower, as landlord.

            "OPEN DATE" has the meaning set forth in Section 2.05(a) of this
Loan Agreement.

            "OPERATING AGREEMENTS" has the meaning set forth in the Security
Instrument.

            "OPERATING EXPENSES" means all cash expenses actually incurred by or
charged to Borrower (appropriately pro-rated for any expenses that, although
actually incurred in a particular period, also relate to other periods), with
respect to the ownership, operation, leasing and management of the Property in
the ordinary course of business, determined in accordance with GAAP, and
adjusted by Lender in accordance with Lender's customary underwriting procedures
and policies then in effect which Operating Expenses are also adjusted to
include any underwritten reserves for Replacements, Tenant Improvements and
Leasing Commissions and any other underwritten reserves as determined by Lender
whether or not required to be reserved.

                                                              Ply Gem Industries

                                     - 89 -

<PAGE>

Operating Expenses shall specifically exclude (1) costs of Tenant Improvements
and Leasing Commissions, (2) capital expenditures, (3) depreciation, (4)
payments made in connection with the payment of the outstanding principal
balance of the Loan, (5) costs of Restoration following a Casualty or
Condemnation, (6) funds disbursed from any Reserve Account, and (7) any other
non-cash items.

            "OPERATING INCOME" means all gross cash income, revenues and
consideration received or paid to or for the account or benefit of Borrower
resulting from or attributable to the operation or leasing of the Property
determined in accordance with GAAP and adjusted by Lender in accordance with
Lender's customary underwriting procedures and policies then in effect but
excluding any income and revenues from a sale, refinancing, Casualty or
Condemnation, payment of rents more than one (1) month in advance, lease
termination payments, or payments from any other events not related to the
ordinary course of operations of the Property.

            "ORGANIZATIONAL CHART" means the chart attached hereto as Exhibit C
which shows all persons or entities having an ownership interest in Borrower and
in the SPE Equity Owner.

            "OTHER CHARGES" means all ground rents, maintenance charges,
impositions (other than Taxes) and similar charges (including, without
limitation, vault charges and license fees for the use of vaults, chutes and
similar areas adjoining the Property), now or hereafter assessed or imposed
against the Property, or any part thereof, together with any penalties thereon.

            "PARTIAL RELEASE" has the meaning set forth in Section 10.03 of this
Loan Agreement.

            "PARTIAL RELEASE DATE" has the meaning set forth in Section 10.03 of
this Maximum Loan Agreement.

            "PARTIAL RELEASE PRICE" means the portion of the Maximum Loan Amount
allocated to the following portions of the Property as set forth below:

<TABLE>
<CAPTION>
    Release Property                   Partial Release Price
    ----------------                   ---------------------
<S>                                    <C>
1.  Kearney, Missouri                     $  3,643,750.00

2.  Fair Bluff, North Carolina            $  1,000,000.00

3.  York, Nebraska                        $  1,062,500.00

4.  Toledo, Ohio                          $  5,462,500.00

5.  Middlesex  Township, Pennsylvania     $  2,337,500.00

6   Rocky Mount, Virginia                 $  4,500,000.00
</TABLE>

                                                             Play Gem Industries

                                      - 90 -
<PAGE>
      7.    Martinsburg, West Virginia         $4,056,250.00

            "PAYMENT DUE DATE" has the meaning set forth in Section 2.03(b) of
this Loan Agreement. It is the date that a regularly scheduled payment of
principal and interest (or interest if the loan payments are interest-only) is
due.

            "PERMITTED ENCUMBRANCES" means only those exceptions shown in the
Title Insurance Policy and each other Lien which has been approved in writing by
Lender.

            "PERMITTED TRANSFER" means each of the following:

            (a) Except as otherwise permitted in the following clause (c),
Transfers of Equity Interests which, in the aggregate over the term of the Loan
(i) do not exceed forty-nine percent (49%) of the total interests in Borrower or
in SPE Equity Owner or in Guarantor, as applicable; (ii) do not result in any
Person holding an Equity Interest in Borrower or SPE Equity Owner, as
applicable, which exceeds forty-nine percent (49%) of the total Equity Interests
in Borrower or in SPE Equity Owner, as applicable; and (iii) do not result in a
change of Control.

            (b) Transfers with respect to any Person whose stocks or
certificates are traded on a nationally recognized stock exchange.

            (c) Transfers which have been approved by Lender in accordance with
Section 10.02(a) of this of Loan Agreement or which are permitted under Section
10.02(b) of this Loan Agreement.

            (d) Permitted Encumbrances.

            (e) All Transfers of worn out or obsolete furnishings, fixtures or
equipment that are promptly replaced with property of equivalent value and
functionality.

            (f) All Major Leases which have been approved by Lender in
accordance with this Loan Agreement.

            (g) All Leases which are not Major Leases and which have been
approved by the Lender pursuant to Section 9.06 or that not require Lender's
approval pursuant to Section 9.06.

            (h) The sale, transfer, assignment, encumbrance or pledge of shares
by any current or future shareholder in Corporate Property Associates 16
Incorporated, or any Affiliate that shall become the Guarantor, or the issuance
of additional shares by any of the foregoing.

            "PERSON" means an individual, partnership, limited partnership,
corporation, limited liability company, business trust, joint stock company,
trust, unincorporated association, joint venture, governmental authority or
other entity of whatever nature.

                                                              Ply Gem Industries

                                     - 91 -

<PAGE>

            "PERSONAL PROPERTY" has the meaning set forth in the Security
Instrument.

     "PLY GEM" shall mean, individually and collectively, the following parties
that comprise the tenant under the Ply Gem Lease: Ply Gem Industries, Inc., a
Delaware corporation; MWM Holding, Inc., a Delaware corporation; Great Lakes
Window, Inc., an Ohio corporation; MW Manufacturers Holding Corp., a Delaware
corporation; MW Manufacturers Inc., a Delaware corporation, NAPCO Window
Systems, Inc., a Delaware corporation; Kroy Building Products, Inc., a Delaware
corporation; NAPCO, Inc., a Delaware corporation; Thermal-Gard, Inc., a
Pennsylvania corporation; and Variform, Inc., a Missouri corporation.

            "PLY GEM LEASE" means that Deed of Lease Agreement dated as of
August 27, 2004 between Borrower and Ply Gem with respect to the Property.

            "PROHIBITED PREPAYMENT" has the meaning set forth in Section 2.05(c)
of this Loan Agreement.

            "PROHIBITED PREPAYMENT FEE" has the meaning set forth in Section
2.05(c) of this Loan Agreement.

            "PROPERTY" means collectively, all Individual Properties securing
the Loan, as described on Exhibit G attached hereto, or one or more of the
Individual Properties, as the context requires.

            "PROPERTY MANAGEMENT CONTRACT" means any agreement between Borrower
and Property Manager and approved by Lender, which provides for the management
of the Property for Borrower by Property Manager.

            "PROPERTY MANAGER" means a property manager approved by Lender.

            "PV" has the meaning set forth in Section 2.05(c).

            "RATING AGENCIES" means Fitch, Inc., Moody's and S&P, or any
Successor entity of the forgoing, or any other nationally recognized statistical
rating organization to the extent that any of the foregoing have been or will be
engaged by lender or its designees in connection with or in anticipation of
Securitization or any other sale or grant of participation interest in the Loan
(or any Part thereof.)

            "RATING CONFIRMATION" means a written confirmation from each of the
Rating Agencies (unless otherwise agreed by Lender) that an action shall not
result in a downgrade, withdrawal or qualification of any securities issued in
connection with a Securitization.

            "RELEASE" has the meaning set forth in Section 2.05(b) of this Loan
Agreement.

                                                              Ply Gem Industries

                                     - 92 -
<PAGE>

      "RELEASE DATE" has the meaning set forth in Section 2.05(b) of this Loan
Agreement.

      "RELEASE INSTRUMENTS" has the meaning set forth in Section 2.05(b)(ii) of
this Loan Agreement.

      "RELEASE PARCEL TRANSFEREE" has the meaning set forth in Section 10.03 of
this Loan Agreement.

      "RELEASE PROPERTY" means each portion of the Property identified as
"Release Property" above in the definition of Partial Release Price.

      "REMAINING PROPERTY" has the meaning set forth in Section 10.03(e) of this
Loan Agreement.

      "RENT ROLL" means a written statement from Borrower, substantially in the
form attached hereto as Exhibit D, detailing the names of all tenants of the
Property, the portion of Property occupied by each tenant, the base rent and
any other charges payable under each Lease, the term of each Lease , the
beginning date and expiration date of each Lease, whether any tenant is in
default under its Lease (and detailing the nature of such default), and any
other information as is reasonably required by Lender, all certified by a
Responsible Officer to be true, correct and complete.

      "RENTS" has the meaning set forth in the Security Instrument.

      "REPLACEMENT RESERVE ACCOUNT" means an account held by Lender, or
Lender's designee, in which the Monthly Replacement Reserve Deposits will be
held, which shall not constitute a trust fund.

      "REPLACEMENTS" means the scheduled repairs and replacements to the
Property identified on Exhibit E hereto.

      "REQUIREMENTS OF LAW" means (a) the organizational documents of an entity,
and (b) any law, regulation, ordinance, code, decree, treaty, ruling or
determination of an arbitrator, court or other Governmental Authority, or any
Executive Order issued by the President of the United States, in each case
applicable to or binding upon such Person or to which such Person, any of its
property or the conduct of its business is subject including, without
limitation, laws, ordinances and regulations pertaining to the zoning, occupancy
and subdivision of real property.

      "RESERVE ACCOUNTS" means, individually and collectively, as the context
requires, the Tax Escrow Account, the Insurance Premiums Escrow Account, the
Immediate Repair Escrow Account, the Replacement Reserve Account and the TI/LC
Reserve Account.

                                                              Ply Gem Industries

                                     - 93 -
<PAGE>

      "RESERVE ITEM" means, individually and collectively, as the context
requires, the Immediate Repairs or any alternative to an Immediate Repair which
is otherwise acceptable to Leader in its sole discretion, the Replacements,
the Tenant Improvements and the Leasing Commissions.

      "RESPONSIBLE OFFICERS" means, as to any person, an individual who is a
managing member, a general partner, the chief executive officer, the president
or any vice president of such Person or, with respect to financial matters, the
chief financial officer or treasurer of such Person or any other officer
authorized by such Person to deliver documents with respect to financial matters
pursuant to this Loan Agreement.

      "RESTORATION" means the repairs, replacements, improvements, or rebuilding
of or to the Property following a Casualty or Condemnation.

      "RESTORATION DEFICIENCY DEPOSIT" has the meaning set forth Section 9.04(d)
of this Loan Agreement. All amounts deposited by Borrower with Lender as the
Restoration Deficiency Deposit shall become a part of the Restoration Proceeds
and disbursed by Lender for Restoration on the same conditions applicable to
disbursement of Restoration Proceeds and, until so disbursed, are pledged to
Lender as security for the Loan and Obligations.

      "RESTORATION HOLDBACK" has the meaning set forth in Section 9.04(e) of
this Loan Agreement.

      "RESTORATION PROCEEDS" has the meaning set forth in Section 9.04(b) of
this Loan Agreement.

      "S & P" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc., and any successor thereto.

      "SECURITIES ACT" means the Securities Act of 1933 and any successor
statute thereto and the related regulations issued thereunder, all as amended
from time to time.

      "SECURITIES LIABILITIES" has the meaning provided in Section 15.05 of this
Loan Agreement.

      "SECURITIES EXCHANGE ACT" means the Securities Exchange Act of 1934, and
any successor statute thereto and the related regulations issued thereunder, all
as amended from time to time.

      "SECURITIZATION" or SECURITIZE" means the sale of the Loan, by itself or
as part of pool with other loans, in a transaction whereby mortgage pass-through
certificates or other securities evidencing a beneficial interest, backed by the
Loan or such pool of loans, will be sold as a rated or unrated public offering
or private placement.

                                                              Ply Gem Industries

                                     - 94 -

<PAGE>

      "SECURITY INSTRUMENT" means the Mortgage Assignment of Rents and Leases,
Security Agreement and Fixture Filing, or the Deed of Trust, Assignment of Rents
and Leases, Security Agreement and Fixture filing, or the Deed of Secure
Debt, Assignment of Rents and Leases, Security Agreement and Fixture Filing as
applicable, encumbering the Property and executed by Borrower to Lender or to a
trustee for the benefits of Lender, as the case may be, to secure Borrower's
payment of the Loan and performance of the Obligations.

      "SINGLE PURPOSE ENTITY" has the meaning set forth in Section 7.02 of this
Loan Agreement.

      "SPE EQUITY OWNER" means PG (MULTI) QRS 16-7, Inc., a Delaware
corporation.

      "STANDARD LEASE FORM" means, as applicable, the standard form of lease
agreement used by Borrower for the rental of commercial units at the Property
and the standard form of lease agreement used by Borrower for the rental of
residential units at the Property, in each case in the form certified to Lender
as of the Closing Date or subsequently approved by Lender in writing.

      "SUBSTITUTE ALLOCATED LOAN AMOUNT" has the meaning set forth in Section
19.01(h) of this agreement.

      "SUBSTITUTE PROPERTY" has the meaning set forth in Section 19.01 of this
Loan Agreement.

      "SUCCESSOR BORROWER" has the meaning set forth in Section 2.05(b) of this
Loan Agreement.

      "TAX CODE" means the Internal Revenue Code of 1986 and the related
Treasury Department regulations issued thereunder, including temporary
regulations, all as amended from time to time.

      "TAX ESCROW ACCOUNT" means an account held by Lender, or Lender's
designee, in which Borrower's initial deposit for Taxes made on the Closing Date
and the Monthly Tax Deposits will be held, which shall not constitute a trust
fund.

      "TAXES" means all real estate taxes, governments assessments or
impositions, lienable water charges, lienable sewer rents, assessments due
under owner association documents, ground rents, vault charges and license fees
for the use of vault chutes and all other charges (other than the Other
Charges), now or hereafter levied or assessed against the Land and Improvements.

                                                              Ply Gem Industries

                                      -95-

<PAGE>

      "TENANT IMPROVEMENTS" means improvements made to the Property to prepare
the same for tenant occupancy in connection with each Lease and by Borrower in
conformity with the terms of the related Lease and this Loan Agreement.

      "TERMINATION AMOUNT" has the meaning set forth in Section 2 of the Ply Gem
Lease.

      "TI/LC RESERVE ACCOUNT" means an account held by Lender, OR Leader's
designee, in which the Monthly TI/LC Deposits will be held, which shall not
constitute a trust fund.

      "TITLE INSURANCE POLICY" means the mortgagee title insurance policy
obtained by Lender in connection with the Loan, and, until the issuance of such
policy, the commitment for title insurance as marked-up as of the Closing Date
, in either case in form and substance (with such endorsements and affirmative
coverages) as is satisfactory to Lender, insuring that the Security Instrument
constitutes a perfected first Lien against the Property in the Maximum Loan
Amount, subject only to Permitted Encumbrances.

      "TRANSFER" means any action by which either (a) the legal or beneficial
ownership of the Equity Interests in Borrower or in SPE Equity Owner or in the
Guarantor, or (b) the legal or equitable title to the Property, or any part
thereof, or (c) the cash flow from the Property or any portion thereof, are
sold, assigned, transferred, hypothecated, pledged or otherwise encumbered or
dispose of, in each case (a), (b) or (c) whether undertaken, directly or
indirectly, or occurring by operation of law or otherwise, including, without
limitation, each of the following actions:

(i)   the sale, conveyance, assignment, grant of an option with respect to,
      mortgage, deed in trust, pledge, grant of a security interest in, or any
      other transfer, as security or otherwise, of the Property or with respect
      to the Leases or Rents(or any thereof);

(ii)  the grant of an easement across the Property (other than minor easements
      not having a Material Adverse Effect) or any other agreement granting
      rights in or restricting the use or development of the Property
      (including, without limitation, air rights);

(iii) an installment sale wherein Borrower agrees to sell the Property for a
      price to be paid in installments; or

(iv)  an agreement by Borrower leasing all or a substantial part of the Property
      for other than actual occupancy by a space tenant thereunder; or

                                                              Ply Gem Industries

                                      -96-
<PAGE>

      (v)   the issuance of additional partnership, membership or other equity
            interests, as applicable.

            "UCC" means the Uniform Commercial Code in effect in the State where
the Property is located, as from time to time amended or restated. For purposes
of the UCC's application to the Reserve Accounts, the parties agree that the
Reserve Accounts shall be deemed located in the state where the Property is
located.

            "UNDEFEASED NOTE" has the meaning set forth in Section 2.05 (b)(v)
of this Loan Agreement.

            "UNDERWRITER GROUP" has the meaning provided in Section 15.05 of
this Loan Agreement.

            "YIELD MAINTENANCE PREMIUM" has the meaning set forth in Section
2.05 (c).

                                   ARTICLE 21
                              LOCAL LAW PROVISIONS

      Intentionally Deleted.

         [REMAINDER OF PAGE IS BLANK; SIGNATURES APPEAR ON NEXT PAGE.]

                                                              Ply Gem Industries
                                      -97-
<PAGE>

IN WITNESS WHEREOF, Lender and Borrower hereby sign, seal and deliver this Loan
Agreement. By signing below on behalf of Borrower, SPE Equity Owner also
consents, in its individual capacity, to the obligations of SPE Equity Owner set
forth Sections 7.02(b), 9.11(c) and Article 15 of this Loan Agreement.

LENDER:                          BORROWER:
GMAC COMMERCIAL MORTGAGE BANK,  PG (MULTI-16) L.P.,
a Utah Industrial Bank           a Delaware limited partnership

By: /s/Richard Cadigan              By: PG (MULTI-16) QRS 16-7, INC.
    --------------------------       Its General Partner
    Name : Richard Cadigan
    Title : Authorised Signor

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

                                    Borrower's State Identification No: 3837857

                                    Borrower's Tax Id Number: 02-0730116

<TABLE>
<CAPTION>
Attachments:
------------
<S>           <C>
Exhibit A     Disbursement request Form
Exhibit B     Immediate Repairs
Exhibit C     Organizational Chart
Exhibit D     Rent Roll
Exhibit E     Replacements
Exhibit F     Capital Improvements
Exhibit G     List of Individual Properties
</TABLE>

<PAGE>

IN WITNESS WHEREOF, Lender and Borrower hereby sign, seal and deliver this Loan
Agreement. By signing below on behalf of Borrower, SPE Equity Owner also
consents, in its individual capacity, to the obligations of SPE Equity Owner set
forth Sections 7.02(b), 9.11(c) and Article 15 of this Loan Agreement.

LENDER:                          BORROWER:
GMAC COMMERCIAL MORTGAGE BANK,   PG (MULTI-16) L.P.,
a Utah Industrial Bank           a Delaware limited partnership

By:                              By: PG (MULTI-16) QRS 16-7, INC.
    --------------------------       Its General Partner
    Name :
    Title :

                                 By : /s/ Peter E. Kaplan
                                    ----------------------------
                                      Name: Peter E. Kaplan
                                      Title: Vice President

                                    Borrower's State Identification No: 3837857

                                    Borrower's Tax Id Number: 02-0730116

<TABLE>
<CAPTION>
Attachments:
------------
<S>           <C>
Exhibit A     Disbursement request Form
Exhibit B     Immediate Repairs
Exhibit C     Organizational Chart
Exhibit D     Rent Roll
Exhibit E     Replacements
Exhibit F     Capital Improvements
Exhibit G     List of Individual Properties
</TABLE>

<PAGE>

                                   EXHIBIT A

                           DISBURSEMENT REQUEST FORM

                                                              Ply Gem Industries

                                     A - 1
<PAGE>

                                                                     [GMAC LOGO]
                        ESCROW DISBURSEMENT REQUEST FORM

Project Name            HOW TO SUBMIT A REQUEST FOR DISBURSEMENT:
                        1. Complete this Escrow Disbursement Request Form by
                           filling in ALL relevant information and signing the
                           certification below.
                        2. Accompany this form with Invoices, evidence of
                           payment, lien waivers, AND ANY OTHER DOCUMENTATION
                           REQUIRED UNDER THE LOAN DOCUMENTS.
                           When adding supporting documentation, PLEASE AVOID
                           USING STAPLES.
Loan Number             3. Mail this form and supporting documentation to:
                           Operation Reserve Group, GMAC Commercial Mortgage
                           Corporation, 200 Witnner Road, Horsham, PA 19044.
                        4. It will take approximately 15 BUSINESS DAYS from our
                           date of receipt to process your request if  an
                           inspection and/or additional documentation  are not
                           required.

PLEASE CHECK THE RESERVE ACCOUNT FROM WHICH FUNDS ARE BEING REQUESTED: (PLEASE
USE A SEPARATE FORM FOR EACH RESERVE ACCOUNT.)

<TABLE>
<S> <C>                         <C> <C>                            <C> <C>                         <C> <C>
[ ] Replacement Reserve/        [ ] Completion Repair/             [ ] Tenant Improvement/         [ ] Other ----------------------
    Capital Improvements            Deferred Maintenance               Leasing Commission
</TABLE>

<TABLE>
<CAPTION>
                                                                                                            GMACCM USE ONLY
                                                                                                          -------------------
No. Item Description Unit/Area Vendor Name Invoice No. Check No. Amount Paid Explanation of Job % Complete Amt. Approved Code*
--- ---------------- --------- ----------- ----------- --------- ----------- ------------------ ---------- ------------- -----
<S> <C>              <C>       <C>         <C>         <C>       <C>         <C>                <C>       <C>           <C>
1
2
3
4
5
6
7
8
9
10
</TABLE>

<TABLE>
<S>                      <C>                                                       <C>
                            Total Requested Amount:____________                    Total Amount Approved:_____________

IMPORTANT NOTE:         IF YOU REQUIRE ADDITIONAL SPACE OR YOU PREFER TO USE
                        YOUR OWN FORM TO LIST ITEMS, YOU MAY ATTACH AN
                        ADDITIONAL SHEET TO THIS FORM, HOWEVER
                        ALL OTHER FIELDS ON THIS FORM MUST BE COMPLETED AND YOUR
                        FORM MUST CONTAIN IDENTICAL COLUMN HEADING OR YOUR
                        REQUEST WILL BE RETURNED.
</TABLE>

<TABLE>
<CAPTION>
<S>                                                           <C>                       <C>
PLEASE PROVIDE THE ADDRESS WHERE A CHECK SHOULD BE MAILED:                              * REASON FOR DISAPPROVAL CODES:

Name -----------------------------------------------          Company ---------------   1  Not eligible for reimbursement
                                                                                        2  Need further description of Item.
Street Address -------------------------------------          City, State and Zip ---   3  Not Supported by an Invoice.
                                                                                        4  Not accompanied by evidence of payment.
                                                                                        5  Not accompanied by a lien waiver.
Mortgagor/Project Name
[as it should appear on check] ---------------------          Telephone Number ------   6  Duplicate request.
                                                                                        7  Other ---------------------------
                                                                                                 ---------------------------
E-mail Address -------------------------------------          Fax (optional) --------   8  Other ---------------------------
                                                                                                 ---------------------------
                                                                                        9  Other ---------------------------
                                                                                                 ---------------------------
</TABLE>

BORROWER'S CERTIFICATION:

The Undersigned hereby certifies that all of the attached invoices for the items
listed have been paid and that the work has been completed in a good,
workmanlike manner and in accordance with any plans and/or specifications
previously approved by the Lender, In addition the undersigned certifies that
all such repairs are in compliance with all applicable laws, ordinances, rules
and regulations of any governmental authority, agency, Instrumentally having
jurisdiction over the project. The undersigned also certifies  that neither the
borrower nor its management firm have any ownership interest or profit sharing
agreement with any of the suppliers or vendors listed on this request, which has
not been disclosed on the back of this item or under separate cover attached to
this request.

Name (Please Print)                  Signature                        Date

                  [ ] Mark here if additional page is attached.
<PAGE>
                                    EXHIBIT B

                                IMMEDIATE REPAIRS

            (as further described in Exhibit I to the Ply Gem Lease)

1.   Rocky Mount, VA premises:
     Remediate, or cause to be remediated, the PCP and mineral spirit
contamination of soil and groundwater(if impacted) to applicable cleanup
standards and to the written approval of the applicable Governmental
Environmental Agency.

2.   Valencia, PA premises:
     If required by applicable law or governmental agency, investigate the area
of the former USTs, septic system and historic spills identified in the August
2004 "Environmental Review of Ply Gem Industries, Inc. and MS Manufacturers
Inc." prepared by ENVIRON and remediate any contamination to applicable cleanup
standards and to the written approval of the applicable environmental agency.

3.   Martinsburg, WV premises:
     If required by the West Virginia Department of Environmental
Protection("WVDEP"), address any comments from WVDEP to the closure report for
the used oil AST.

4.   Rocky Mount, VA premises:
     a)   Provide secondary containment for the three USTs;

5.   Valencia, PA premises:
     a)   Removal of approximately 150 empty drums stored on pavement west of
the hazardous waste storage area and approximately 400 drums stored on soil
north of the south wastewater treatment plant.

6.   York, NE premises: N/A

7.   Kearney, MO premises: N/A

8.   Fair Bluff, NC premises: N/A

9.   Valencia, PA premises:
     a)   Install secondary roof drains on EPDM roofs;
     b)   Install three (3) additional ADA compliant parking spaces with one (1)
meeting "Van Accessible" requirements;
     c)   File corrected subdivision map(executed by each adjoining landowner
and the appropriate governmental authorities) correcting "Subdivision No. 3 for
Sarah J. Ferree" to reflect and recognize the boundaries set forth in the legal
description on Exhibit "A" of this Lease with respect to the Valencia, PA
property or provide such other evidence that the referenced correction has been
made; and
     d)   Install two (2) ADA complaint restrooms on first level.

10.  Toledo, OH premises:

     a)   Install nine (9) ADA compliant parking spaces with one (1) meeting the
"Van Accessible" requirements

                                                              Ply Gem Industries

                                       B-1
<PAGE>
11.   Rocky Mount, VA premises:
      a)    Replace painted sprinkler heads;
      b)    Install sprinkler system in compactor area;
      c)    Lower stacking heights of stored plastic materials as recommended by
St. Paul Travelers Insurance Company;
      d)    Install three (3) ADA compliant parking spaces with two (2) meeting
"Van Accessible" requirements;
      e)    Install ADA signage that directs personnel or visitors to ADA
complaint restrooms in the main buildings; and
      f)    Install ADA Convert one (1) restroom in the Weaver Building to a
Unisex ADA compliant restroom.

12.   Fair Bluff, NC premises:
      a)    Install three (3) ADA compliant parking spaces with one (1) meeting
            the "Van Accessible" requirements; and
      b)    Replace the broken locker-room faucets with lever style controls and
            install pipe protection when the locker-rooms are renovated as
            planned.

13.   Martinsburg, WV premises:
      a)    Replace thru-wall units in QC lab;
      b)    Install scuppers in parapet of roof over offices;
      c)    Repair site
            lighting controls;
      d)    Obtain drainage pipe easement for drainage pipe connected to
            stormwater retainage pond or provide evidence that such pipe is
            located on the Martinsburg, WV premises; and
      e)    Install ADA compliant parking spaces.

14.   Kearney, MO premises:
      a)    Install an access ramp to the office entrance;
      b)    Install three (3) signs marking the ADA compliant parking spaces;
      c)    Stripe an additional one hundred sixty-nine (169) parking spaces;
            and
      d)    Install a "Van Accessible" parking space meeting ADA requirements.

15.   York, NE premises:
      a)    Improve office restroom at the office area;
      b)    Install an appropriate entrance door with grade level thresholds at
            the office entrance; and
      c)    Install three (3) ADA compliant parking spaces with one (1) meeting
            "Van Accessible" requirements.

                                                              Ply Gem Industries

                                        B-2
<PAGE>

                                   EXHIBIT C

                               ORGANIZATIONAL CHART

                                      B-1
<PAGE>

                                 PLY GEM -- U.S.
                              CORPORATE STRUCTURE

                                   [FLOW CHART]

<PAGE>

                                    EXHIBIT D

                                    RENT ROLL

                                      D-1
<PAGE>

\
                            RENT ROLL CERTIFICATION

      PG (Multi-16) L.P. ("Borrower") hereby certifies in connection with that
certain $17,650,000 mortgage loan being made as of even date herewith by GMAC
Commercial Mortgage Bank to Borrower secured by property situate in Rocky Mount,
VA, Valencia, PA, Toledo, OH, York, NE, Fair Bluff, NC, Martinsburg, WV and
Kearney, MO that the only lease with respect to these properties to which
Borrower is a party is set forth below:

<TABLE>
<CAPTION>
TENANTS           DATE              CURRENT ANNUAL RENT          INITIAL TERM
                                                                 EXPIRATION
                                                                 DATE
<S>               <C>               <C>                          <C>
See Schedule 1    8/27/04                 $2,980,575.00          8/31/2024
</TABLE>

PG (MULTI-16) L.P.

By: PG (Multi-16) QRS 16-7, Inc., its general partner

By: /s/ Peter E. Kaplan, Jr.
    --------------------------
    Name: Peter E. Kaplan, Jr.
    Title: Vice President

Dated: October 18th, 2004

<PAGE>

                                   SCHEDULE 1

PLY GEM INDUSTRIES, INC.,
a Delaware corporation,

MWM HOLDING, INC.,
a Delaware corporation,

GREAT LAKES WINDOW, INC.,
an Ohio corporation,

MW MANUFACTURERS HOLDING CORP.,
a Delaware corporation,

MW MANUFACTURERS INC.,
a Delaware corporation,

NAPCO WINDOW SYSTEMS, INC.,
a Delaware corporation,

KROY BUILDING PRODUCTS, INC.,
a Delaware corporation,

NAPCO, INC.,
a Delaware corporation,

THERMAL-GARD, INC.,
a Pennsylvania corporation,

VARIFORM, INC.,
a Missouri corporation,

<PAGE>

                                   EXHIBIT E

                                  REPLACEMENTS

                                      NONE

                                      E-1
<PAGE>

                                   EXHIBIT F

                              CAPITAL IMPROVEMENTS

                                      NONE

                                      F-1

<PAGE>
                                   EXHIBIT G

                         LIST OF INDIVIDUAL PROPERTIES

                             ROCKY MOUNT, VIRGINIA

                        MIDDLESEX TOWNSHIP, PENNSYLVANIA

                                  TOLEDO, OHIO

                                 YORK, NEBRASKA

                           FAIR BLUFF, NORTH CAROLINA

                           MARTINSBURG, WEST VIRGINIA

                               KEARNEY, MISSOURI

                                                         Ply Gem Industries
                                      G-1

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