Document:

<PAGE>
                                                                   EXHIBIT 10.61

                ===============================================

                                      LEASE

                                     BETWEEN

                              AMERICAN CENTER LLC,

                                   AS LANDLORD

                                       AND

                                 SUN COMMUNITIES
                                OPERATING LIMITED
                                  PARTNERSHIP,

                                    AS TENANT

                ===============================================

<PAGE>

                                      LEASE

         THIS LEASE is made and entered into as of November 1, 2002, by and
between AMERICAN CENTER LLC, a Michigan Limited Liability Company (the
"Landlord"), having its principal office at 20500 Civic Center Drive, Suite
3000, Southfield, Michigan 48076, and Tenant named below who agree as follows:

                                   SECTION 1.

                             BASIC LEASE PROVISIONS

         1.01 The following basic lease provisions are an integral part of this
Lease and are referred to in other Sections of this Lease.

<TABLE>
<S>      <C>      <C>                                                           <C>
         (a)      Tenant's name and jurisdiction of formation:
                  Sun Communities Operating Limited Partnership, a Michigan
                  Limited Partnership

                  Tenant Social Security/Taxpayer Identification Number:
                                                                                --------------

                  Tenant Standard Industrial Classification (SIC) Code Number:  6531, 6798
                                                                                ----------

         (b)      Tenant's Address:  27777 Franklin Road
                                     Suite 200
                                     Southfield, MI 48034

         (c)      Manager's Name     REDICO Management, Inc.
                  and Address:       20500 Civic Center Drive
                                     Suite 3000
                                     Southfield, Michigan 48076

         (d)      Project Name:      American Center

                  Building Name:     American Center

                  Building Address:  27777 Franklin Road
                                     Southfield, MI  48034

         (e)      Premises:          Floor:            2nd
                                     Suite Number:     200
                                     Square Feet:      31,346 rentable / 29,024 usable

         (f)      Term:

                  Scheduled Occupancy Date:                            February 1, 2003
                  Scheduled Expiration Date of Initial Term:           January 31, 2008
                  Initial Term:                                        Five (5) years

         (g)      Base Rent:
</TABLE>

<TABLE>
<CAPTION>
                               Total Monthly       Annual Base
               Date              Base Rent            Rent
       --------------------- ------------------- ----------------
<S>                          <C>                 <C>
         2/1/03 - 1/31/04        $50,284.21        $603,410.52
       --------------------- ------------------- ----------------
         2/1/04 - 1/30/05        $51,590.29        $619,083.48
       --------------------- ------------------- ----------------
        1/31/05 - 1/31/06        $52,896.38        $634,756.56
       --------------------- ------------------- ----------------
         2/1/06 - 1/31/07        $54,202.46        $650,429.52
       --------------------- ------------------- ----------------
         2/1/07 - 1/31/08        $55,508.54        $666,102.48
       --------------------- ------------------- ----------------
                                 AGGREGATE        $3,173,782.56
       --------------------- ------------------- ----------------
</TABLE>

         (h)      INTENTIONALLY DELETED

         (i)      Number of Tenant's Designated Parking Spaces: six (6) at no
                  additional cost and two (2) additional designated parking
                  spaces at an initial increase of additional rent of $100.00
                  per month per space.

         (j)      Security Deposit:  None

         (k)      Tenant Improvement Allowance:  $784,000.00

         (l)

         (m)      Permitted Use:    Office Use

                                       1

<PAGE>

                                   SECTION 2.

                                  THE PREMISES

         2.01 Landlord, in consideration of the rents to be paid and the
covenants and agreements to be performed by Tenant, hereby leases to Tenant the
premises set forth in Section 1.01(e) (the "Premises") in the building(s) (the
"Building") described in Section 1.01(d), together with the right to use the
parking and common areas and facilities which may be furnished from time to time
by Landlord (collectively the "Common Areas"), including, without limitation,
all common elevators, hallways and stairwells located within the Building, and
all common parking facilities, driveways and sidewalks, in common with Landlord
and with the tenants and occupants of the Project, their agents, employees,
customers, clients and invitees. Tenant agrees that the Premises and the
Building shall be deemed to include the number of rentable square feet set forth
in Section 1.01(h) and in no event shall Tenant have the right to challenge,
demand, request or receive any change in the base rent or other sums due
hereunder as a result of any claimed or actual error or omission in the rentable
or usable square footage of the Premises, the Building or the Project. Landlord
reserves the right at any time and from time to time to make alterations or
additions to the Building or the Common Areas, and to demolish improvements on
and to build additional improvements on the land surrounding the Building and to
add or change the name of the Building from time to time, in its sole discretion
without the consent of Tenant and the same shall not be construed as a breach of
this Lease provided same do not unreasonably interfere with Tenant's use or
occupancy of the Premises. The Building, the other buildings listed in Section
1.01(d), the Common Areas and the land surrounding the Building and the Common
Areas are hereinafter collectively referred to as the "Project".

         2.02 Landlord agrees to construct the improvements to the Premises (the
"Tenant Improvements") in accordance with the space plan(s) (as it may be
amended by approved change orders, the "Plans"), attached as Exhibit "A". All
material changes from the Plans which Landlord determines are necessary during
construction shall be submitted to Tenant for Tenant's approval or rejection. If
Tenant fails to notify Landlord of Tenant's approval or rejection of such
changes within five (5) business days of receipt thereof, Tenant shall be
conclusively deemed to have approved such changes. Landlord's approval of the
Plans shall not constitute a representation, warranty or agreement (and Landlord
shall have no responsibility or liability for) the completeness or design
sufficiency of the Plans or the Tenant Improvements, or the compliance of the
Plans or Tenant Improvements with any laws, rules or regulations of any
governmental or other authority.

         2.03 The provisions of Exhibit D, special provisions, shall govern the
cost of constructing Tenant Improvements.

         2.04 Landlord intends to construct the Tenant Improvements and deliver
the Premises "ready for occupancy" (as defined below) to Tenant on the Scheduled
Occupancy Date set forth in Paragraph 1.01(f). The Premises will be conclusively
deemed "ready for occupancy" on the earlier to occur of when: (i) the work to be
done under this Paragraph has been substantially completed and after the
issuance of a conditional or temporary certificate of occupancy for the Premises
by the appropriate government agency within whose jurisdiction the Building is
located, or (ii) when Tenant takes possession of the Premises. The Premises will
not be considered unready or incomplete if only minor or insubstantial details
of construction, decoration or mechanical adjustments remain to be done within
the Premises or Common Areas of the Building, or if only landscaping or exterior
trim remains to be done outside the Premises, or if the delay in the
availability of the Premises for Tenant's occupancy is caused in whole or in
material part by Tenant. By occupying the Premises, Tenant will be deemed to
have accepted the Premises and to have acknowledged that they are in the
condition called for in this Lease, subject only to "punch list" items (as the
term "punch list" is customarily used in the construction industry in the area
where the Project is located) identified by Tenant by written notice delivered
to Landlord within thirty (30) days after the date Landlord tenders possession
of the Premises to Tenant. If in good faith Landlord is delayed or hindered in
construction by any labor dispute, strike, lockout, fire, unavailability of
material, severe weather, acts of God, restrictive governmental laws or
regulations, riots, insurrection, war or other casualty or events of a similar
nature beyond its reasonable control ("Force Majeure"), the date for the
delivery of the Premises to Tenant "ready for occupancy" shall be extended for
the period of delay caused by the Force Majeure. If Landlord is delayed or
hindered in construction as a result of change orders or other requests by, or
acts of, Tenant ("Tenant Delay") the date for the delivery of the Premises to
Tenant "ready for occupancy" shall be accelerated by the number of days of delay
caused by Tenant Delay. The Scheduled Occupancy Date as extended or accelerated
as a result of the occurrence of a Force Majeure or Tenant Delay or with the
consent of Tenant, is herein referred to as the Occupancy Date. In no event will
the Occupancy Date be deemed to have occurred prior to the date the Premises are
ready for occupancy unless there has been a Tenant Delay.

                                       2

<PAGE>

                                   SECTION 3.

                                    THE TERM

         3.01 The initial term of this Lease (the "Initial Term or "Term"") will
commence (the "Commencement Date") on the earlier of: (i) the date Tenant takes
possession of the Premises; or (ii) the Occupancy Date; or (iii) the date the
Occupancy Date would have occurred in the absence of Tenant Delay. Unless sooner
terminated or extended in accordance with the terms hereof, the Lease will
terminate the number of Lease Years and Months set forth in Paragraph 1.01(f)
after the Commencement Date. If the Commencement Date is other than the first
day of a calendar month, the first Lease Year shall begin on the first day of
the first full calendar month following the Commencement Date. Upon request by
Landlord, Tenant will execute a written instrument confirming the Commencement
Date and the expiration date of the Initial Term.

         3.02 It is acknowledged that the Occupancy Date and the Commencement
Date are subject to Daimler Chrysler Financial Company agreeing to an early
termination of Suites M-170, M200, M202, M250 effective September 30, 2002; and
to the August 31, 2002 closing and early termination of Kosch Food Service in
Suite MZ-220, which will be relocated to the first floor. If the above
terminations are delayed beyond September 30, 2002, the Occupancy Date and
Commencement Date will be delayed one month for each month of delay beyond
September 30, 2002, but in no event will the delay cause the Occupancy Date and
Commencement Date to be later than May 1, 2003. IN THE EVENT THE OCCUPANCY DATE
DOES NOT OCCUR BY MAY 1, 2003, DUE TO A REASON OTHER THAN TENANT DELAY OR A
FORCE MAJEURE, THIS LEASE MAY BE TERMINATED BY TENANT BY THE DELIVERY OF WRITTEN
NOTICE(S) OF TERMINATION TO LANDLORD WITHIN FIVE (5) DAYS AFTER SUCH DATE, AND
BOTH PARTIES SHALL BE RELEASED FROM ALL OBLIGATIONS HEREUNDER, EXCEPT LANDLORD
SHALL PROMPTLY RETURN TO TENANT ANY AND ALL MONIES PAID BY TENANT TO LANDLORD.

                                   SECTION 4.

                                  THE BASE RENT

         4.01 From and after the Commencement Date, Tenant agrees to pay to
Landlord, as minimum net rental for the Initial Term and Option Terms of this
Lease, the sum(s) set forth in Paragraph 1.01(g) (the "Base Rent"). The term
"Lease Year" as used herein shall be defined to mean a period of twelve (12)
consecutive calendar months. The first Lease Year shall begin on the date
determined in accordance with Section 3.01. Each succeeding Lease Year shall
commence on the anniversary date of the first Lease Year.

         4.02 Base Rent and other sums due Landlord hereunder shall be paid by
Tenant to Landlord in equal monthly installments (except as otherwise provided
herein), in advance, without demand and without any setoffs or deductions
whatsoever, on the first day of each and every calendar month (the "Rent Day")
during the Initial Term and Option Terms, if any, at the office of Manager as
set forth in Section 1.01(c), or at such other place as Landlord from time to
time may designate in writing. In the event the Commencement Date is other than
the first day of a calendar month, the Base Rent for the partial first calendar
month of the Initial Term will be prorated on a daily basis based on the number
of days in the calendar month and will be paid in addition to the rent provided
in Paragraph 4.01 above. Base Rent for such partial calendar month and for the
first full calendar month of the first Lease Year shall be paid upon the
execution of this Lease by Tenant.

                                   SECTION 5.

                            LATE CHARGES AND INTEREST

         5.01 Any rent or other sums payable by Tenant to Landlord under this
Lease which are not paid within five (5) days after they are due and written
notice has been provided to Tenant (but if one notice has been given in any
twelve (12) month period, no further notice shall be required during such twelve
(12) month period), will be subject to a late charge of ten (10%) percent of the
amount due. Such late charges will be due and payable as additional rent on or
before the next Rent Day.

         5.02 Any rent, late charges or other sums payable by Tenant to Landlord
under this Lease not paid within ten (10) days after the same are due will bear
interest at a per annum rate equal to the lower of: (i) Citibank
or its successor's Prime Rate plus two percent (2%) per annum, or (ii) the
highest rate permitted by law. Such interest will be due and payable as
additional rent on or before the next Rent Day, and will accrue from the date
that such rent, late charges or other sums are payable under the provisions of
this Lease until actually paid by Tenant.

         5.03 Any default in the payment of rent, late charges or other sums
will not be considered cured unless and until the late charges and interest due
hereunder are paid by Tenant to Landlord. If Tenant defaults in paying such late
charges and/or interest, Landlord will have the same remedies as Landlord would
have if Tenant had defaulted in the payment of rent. The obligation hereunder to
pay late charges and interest will exist in addition to, and not in the place
of, the other default provisions of this Lease.

                                       3

<PAGE>

                                   SECTION 6.

                    OPERATING EXPENSES, UTILITIES, AND TAXES

         6.06 Landlord agrees with Tenant that Landlord will furnish heat and
air conditioning during normal business hours (8:00 a.m. to 6:00 p.m. Monday
through Friday, excluding Building holidays), usual and customary janitorial
services, as set forth in Exhibit "C", and provide water and sewer service to
the Premises and hot and cold water for ordinary lavatory purposes in the common
area restrooms. However, if Tenant uses or consumes water for any other purpose
or in unusual quantities (of which fact Landlord shall be the sole judge)
Landlord may install a water meter at Tenant's expense which Tenant shall
thereafter maintain at Tenant's expense in good working order and repair, to
register such water consumption. Tenant shall pay for the quantity of water
shown on said meter, together with the sewer rents, debt service and other
charges made by the local utilities for water and sewer service, as additional
rent, at the secondary rate per gallon (general service rate) established by the
applicable governmental authority or the applicable utility company providing
the water. Whenever machines or equipment which generate heat are used in the
Premises which affect the temperature otherwise maintained by the
air-conditioning system, Landlord reserves the right to install supplementary
air-conditioning equipment in the Premises, and the cost thereof, and the
expense of operation and maintenance thereof, shall be paid by Tenant to
Landlord. Although Landlord will provide air-conditioning and/or heat upon the
prior request of Tenant in accordance with Building practices for hours other
than regular business hours, Tenant will pay Landlord's charges for providing
such service. Said charges shall include a cost equal to the cost to operate the
equipment for Tenant's expanded business hours and days, and Landlord's
maintenance, equipment amortization and other appropriate charges which Landlord
determines are attributable to operating the equipment for periods in excess of
the normal business hours described above.

         6.07 Tenant shall pay all charges made against the Premises for
electricity used upon or furnished to the Premises as and when due during the
continuance of this Lease. To the extent electricity is not separately metered
for the Premises, Landlord shall make a determination of Tenant's usage of
electricity supplied to the Building, and Tenant agrees to pay for such
electricity within thirty (30) days after request therefor from Landlord.
Whether or not metered, Tenant shall pay for the electricity at the secondary
rate (general service rate) established by the applicable governmental authority
or the applicable utility company providing the electricity. Tenant shall also
pay for fluorescent or other electric light bulbs or tubes and electric
equipment used in the leased Premises.

                                   SECTION 7.

                                       5

<PAGE>
                                 USE OF PREMISES

         7.01 Tenant shall occupy and use the Premises during the Term for the
purposes set forth in Section 1.01(m) only, and for no other purpose without the
prior written consent of Landlord. Tenant agrees that it will not use or permit
any person to use the Premises or any part thereof for any use or purpose in
violation of the laws of the United States, the laws, ordinances or other
regulations of the State or municipality in which the Premises are located, or
of any other lawful authorities, or any building and use restrictions, now or
hereafter affecting the Premises or any part thereof.

         7.02 Tenant will not do or permit any act or thing to be done in or to
the Premises or the Project which will invalidate or be in conflict with any
terms or conditions required to be contained in any property or casualty
insurance policy authorized to be issued in the State of Michigan or any term or
condition of the Insurance Services Office's (ISO) Commercial Property Insurance
and/or Commercial General Liability Insurance Conditions or any different or
additional terms and conditions of any insurance policy in effect on the
Premises or the Project from time to time (collectively the "Building
Insurance"), Nor shall Tenant do nor permit any other act or thing to be done in
or to the Premises or the Project which shall or might subject Landlord to any
liability or responsibility to any person or for property damage, nor shall
Tenant use the Premises or keep anything on or in the Project except as now or
hereafter permitted by the fire regulations, the fire department or zoning,
health, safety, land use or other regulations. Tenant, at Tenant's sole cost and
expense, shall comply with all requirements and recommendations set forth by any
property or casualty insurer or reinsurer providing coverage for the Premises or
the Project or by any person or entity engaged by Landlord or Manager to perform
any loss control, analysis or assessment for the Premises or the Project. Tenant
shall not do or permit anything to be done in or upon the Premises or the
Project or bring or keep anything therein or use the Premises or the Project in
a manner which increases the rate of premium for any Building Insurance or any
property or equipment located therein over the rate in effect at the
commencement of the Term of this Lease. In addition, Tenant agrees to pay
Landlord the amount of any increase in premiums for insurance which may be
charged during the term of this Lease resulting from the act or omissions of
Tenant or the character or nature of its occupancy or use of the Project or the
Premises, whether or not Landlord has consented to the same. Any scheduled or
"make-up" of any insurance rate for the Premises, the Building or the Project
issued by any insurance company establishing insurance premium rates for the
Premises, Building or the Project shall be prima facie evidence of the facts
therein stated and of the several items and charges in the insurance premium
rates then applicable to the Premises, the Building or the Project. Tenant shall
give Landlord notice promptly after Tenant learns of any accident, emergency, or
occurrence for which Landlord is or may be liable, or any fire or other casualty
or damage or defects to the Premises, the Building or the Project which Landlord
is or may be responsible or which constitutes the property of Landlord.

         7.03 Tenant shall not perform acts or carry on any activities or engage
in any practices which may injure the Premises or any portion of the Project or
which may be a nuisance or menace to other persons on or in the Project. Tenant
shall pay all costs, expenses, fines, penalties, or damages which may be imposed
upon Landlord by reason of Tenant's failure to comply with the provisions of
this Section.

         7.04 Tenant will not place any load upon any floor of the Premises
exceeding the floor load per square foot area which it was designed to carry and
which is allowed by law. Landlord reserves the right to prescribe the weight and
position of all safes, business machines and mechanical equipment. Such items
shall be placed and maintained by Tenant, at Tenant's expense, in settings
sufficient in Landlord's judgment, to absorb and prevent vibration, noise and
annoyance. If at any time any windows of the Premises are temporarily or
permanently closed, darkened or covered for any reason whatsoever, including
Landlord's own acts, Landlord shall not be liable for any damage Tenant may
sustain thereby, and the same shall not be considered a default under this Lease
and Tenant shall not be entitled to any compensation therefore nor abatement of
any Base Rent or any other sums due hereunder, nor shall the same release Tenant
from its obligations hereunder nor constitute an eviction, construction, actual
or otherwise.

         7.05 During the term hereof, and consistent with janitorial services
provided by Landlord, Tenant will keep the Premises in a clean and wholesome
condition, will use the same in a careful and proper manner, and generally will
comply with all laws, ordinances, orders and regulations affecting the Premises
and the cleanliness, safety, occupancy and use thereof. Tenant will not commit
waste in or on the Premises, and will use the Premises in accordance with the
Rules and Regulations of the Project, as set forth in Exhibit B, attached hereto
and made a part hereof.

         7.06 As between Landlord and Tenant, Tenant shall be responsible for
any alterations, changes or improvements to the Premises which may be necessary
in order for the Premises and Tenant's use thereof to be in compliance with the
Americans with Disabilities Act of 1990 and its state and local counterparts or
equivalents (the "Disabilities Act") during the term of this Lease provided
Landlord shall be responsible for improvements to the Premises in accordance
with Section 2.04 and all improvements to the common areas necessary to comply
with the Disabilities Act.

         7.07 For the purposes of this Lease, the term "Hazardous Materials"
shall mean, collectively, (i) any biological materials, chemicals, materials,
substances or wastes which are now or hereafter become defined as or included in
the definition of "hazardous substances", "hazardous wastes", "hazardous
materials", "extremely hazardous wastes", "restricted hazardous wastes", "toxic
substances",

                                       6
<PAGE>

"toxic pollutants", or words of similar import, under any applicable
Environmental Law (as defined below) and (ii) any petroleum or petroleum
products and asbestos in any form that is or could become friable.

         7.08 For the purposes of this Lease, the term "Environmental Laws"
shall mean all federal, state, and local laws, statutes, ordinances,
regulations, criteria, guidelines and rules of common law now or hereafter in
effect, and in each case as amended, and any judicial or administrative
interpretation thereof, including, without limitation, laws and regulations
relating to emissions, discharges, releases or threatened releases or Hazardous
Materials or otherwise related to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of Hazardous Materials.
Environmental Laws include but are not limited to the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended; the
Resource Conservation and Recovery Act, as amended; the Clean Air Act, as
amended; the Clean Water Act, as amended; and their state and local counterparts
or equivalents.

         7.09 Tenant shall not (either with or without negligence) cause or
permit the escape, disposal or release of any Hazardous Materials. Tenant shall
not allow the storage or use of such Hazardous Materials on the Premises or the
Project in any manner prohibited by the Environmental Laws or by the highest
standards prevailing in the industry for the storage and use of such Hazardous
Materials, nor allow to be brought into the Premises or the Project any such
Hazardous Materials except to use in the ordinary course of Tenant's business,
and then only after written notice is given to Landlord of the identity of such
Hazardous Materials and Landlord consents in writing to the use of such
materials. Landlord shall have the right at any times during the term of this
Lease to perform assessments of the environmental condition of the Premises and
of Tenant's compliance with this Section 7.09. In connection with any such
assessment, Landlord shall have the right to enter and inspect the Premises and
perform tests (including physically invasive tests), provided such tests are
performed in a manner that minimizes disruption to Tenant. Tenant will cooperate
with Landlord in connection with any such assessment by, among other things,
responding to inquires and providing relevant documentation and records. Tenant
will accept custody and arrange for the disposal of any Hazardous Materials that
are required to be disposed of as a result of those tests. Landlord shall have
no liability or responsibility to Tenant with respect to any such assessment or
test or with respect to results of any such assessment or test. If any lender or
governmental agency shall ever require testing to ascertain whether or not there
has been any release of Hazardous Materials, then the reasonable costs thereof
shall be reimbursed by Tenant to Landlord upon demand as additional charges if
such requirement applies to the Premises or Tenant's activities on the Project.
If any inspection indicates any (i) non-compliance with any Environmental Law or
the highest standards prevailing in the industry for the storage and use of
Hazardous Materials; (ii) damage; or (iii) contamination, Tenant shall, at its
cost and expense, remedy such non-compliance, damage or contamination. In
addition, Tenant shall execute affidavits, representations and the like from
time to time at Landlord's request concerning Tenant's best knowledge and belief
regarding the presence of Hazardous Materials on the Premises. Irrespective of
whether Landlord elects to inspect the Premises, if Hazardous Materials are
found on or about the Premises, Landlord shall have no responsibility, liability
or obligation whatsoever with respect to the existence, removal or
transportation of the Hazardous Material or the restoration and remediation of
the Premises. Tenant's obligations under this paragraph with respect to any
environmental condition shall not be applicable to the extent that such
environmental condition (a) exists prior to the commencement of the initial term
of this Lease or (b) results from (i) the actions or omissions of Landlord
either before the commencement of this Lease, during the term hereof or after
the termination of this Lease or (ii) the actions or omissions of any preceding
or succeeding tenant or owner of the Premises or (iii) the actions or omissions
of any person or entity who or which is not a subtenant, employee, agent,
invitee, customer, visitor, licensee, contractor or designee of Tenant. Further,
Landlord shall have the right to require Tenant to immediately terminate the
conduct of any activity in violation of the Environmental Law, the highest
standards prevailing in the industry for the storage and use of Hazardous
Materials or, if none exist, the standards determined by Landlord. Prior to any
inspection, Landlord shall provide Tenant reasonable prior notice except in an
emergency.

         7.10 Tenant further agrees that it will not, by either action or
inaction, invite or otherwise cause agents or representatives of any federal,
state or local governmental agency to enter onto the Premises or the Project
and/or investigate the Premises or the Project. This agreement does not allow
Tenant to obstruct any such entry or investigation and the mere fact of a
regulatory agency entry or investigation without Tenant's involvement either by
action or inaction shall not be deemed a breach of this lease. Nothing set forth
in this paragraph shall prohibit Tenant from reporting any fact or condition
which Tenant has been advised it has a legal obligation to report provided
Tenant first notifies Landlord of such fact or condition and Tenant's intention
to report the fact or condition.

         7.11 Tenant shall indemnify, hold harmless and defend Landlord, its
licensees, servants, agents, employees and contractors from any loss, damage,
claim, liability or expense (including reasonable attorney's fees) arising out
of the failure of the Premises or Tenant's use thereof to be in compliance with
Disabilities Act. Tenant shall not be required to indemnify, hold harmless or
defend Landlord for the failure, if any, of the common areas (including the
parking areas, ramps and walkways) to comply with the Disabilities Act. Tenant
shall indemnify, hold harmless and defend Landlord, its licensees, servants,
agents, employees and contractors for any loss, damage, claim, liability or
expense (including reasonable attorney's fees) arising out of any violation of
any Environmental Law(s) by Tenant or its responsible parties (as described in
Section 7.09 above) on the Premises or the Project which occurs after the date
hereof. Tenant shall notify Landlord as soon as possible after Tenant learns of
the existence of or potential for any such loss, damage, claim, liability or
expense arising out of any violation or suspected

                                       7

<PAGE>

violation of any Environmental Law(s) or the Disabilities Act. In the event
Tenant refuses to address such violation or suspected violation within five (5)
days of such notice from Landlord, and, thereafter, to investigate such
violation or suspected violation, and promptly commence and diligently pursue
any action required to address such violation or suspected violation, Landlord
shall have the right, in addition to every other right and remedy it may have
hereunder, to terminate this Lease by giving ten (10) days prior written notice
thereof to Tenant, and upon the expiration of such ten (10) days, this Lease
shall terminate. The covenants set forth herein shall survive the expiration or
earlier termination of this Lease.

                                    SECTION 8.

                                    INSURANCE

         8.01 Commencing on the Commencement Date, Tenant shall, during the Term
of this Lease, maintain in full force and effect policies of commercial general
liability insurance (including premises, operation, bodily injury, personal
injury, death, independent contractors, products and completed operations, broad
form contractual liability and broad form property damage coverage), in a
combined single limit amount of not less than Five Million Dollars ($5,000,000),
per occurrence (exclusive of defense costs), against all claims, demands or
actions with respect to damage, injury or death made by or on behalf of any
person or entity, arising from or relating to the conduct and operation of
Tenant's business in, on or about the Premises (which shall include Tenant's
signs, if any), or arising from or related to any act or omission of Tenant or
of Tenant's principals, officers, agents, contractors, servants, employees,
licensees and invitees. Whenever, in Landlord's reasonable judgment, good
business practice and changing conditions indicate a need for additional amounts
or different types of insurance coverage, Tenant shall, within ten (10) days
after Landlord's request, obtain such insurance coverage, at Tenant's sole cost
and expense. Landlord shall enforce such insurance coverage requirement in a
consistent non-discriminatory manner for all Tenants unless the changing
conditions relate only to the operation of Tenant's business.

         8.02 Commencing on the Commencement Date, Tenant shall obtain and
maintain policies of workers' compensation and employers' liability insurance
which shall provide for statutory workers' compensation benefits and employers'
liability limits of not less than that required by law.

         8.03 Commencing on the Commencement Date, Tenant shall obtain and
maintain insurance protecting and indemnifying Tenant against any and all damage
to or loss of any personal property, fixtures, leasehold improvements,
alterations, decorations, installations, repairs, additions, replacements or
other physical changes in or about the Premises, including but not limited to
the Tenant Improvements, and all claims and liabilities relating thereto, for
their full replacement value without deduction or depreciation. In addition, if
Tenant shall install or maintain one or more pressure vessels to serve Tenant's
operations on the Premises, Tenant shall, at Tenant's sole cost and expense,
obtain, maintain and keep in full force and effect appropriate boiler or other
insurance coverage therefore in an amount not less than One Million and No/100
Dollars ($1,000,000.00) (it being understood and agreed, however, that the
foregoing shall not be deemed a consent by Landlord to the installation and/or
maintenance of any such pressure vessels in the Premises, which installation
and/or maintenance shall at all times be subject to the prior written consent of
Landlord). All insurance policies required pursuant to this Paragraph 8.03 shall
be written on a so-called "all risk" form and shall be carried in sufficient
amount so as to avoid the imposition of any co-insurance penalty in the event of
a loss. Such insurance shall provide the broadest coverage then available,
including coverage for loss of profits or business income or reimbursement for
extra expense incurred as the result of damage or destruction to all or a part
of the Premises.

         8.04 All insurance policies which Tenant shall be required to maintain
pursuant to this Section 8 shall, in addition to any of the foregoing: be
written by insurers which have an A.M. Best & Company rating of "A-", Class "X",
or better and who are authorized to write such business in the State of Michigan
and are otherwise satisfactory to Landlord; be written as "occurrence" policy;
be written as primary policy coverage and not contributing with or in excess of
any coverage which Landlord or any ground or building lessor may carry; name
Landlord, the Manager, and Landlord's mortgagee and ground or building lessor,
if any, as additional insureds; be endorsed to provide that they shall not be
cancelled, failed to be renewed, diminished or materially altered for any reason
except on thirty (30) days prior written notice to Landlord and the other
additional insureds; and provide coverage to Landlord, Landlord's property
management company, and Landlord's mortgagee whether or not the event or
occurrence giving rise to the claim is alleged to have been caused in whole or
in part by the acts or negligence of Landlord, Landlord's property management
company, or Landlord's mortgagee. Certificates of Insurance evidencing such
coverage will be delivered by Tenant to Landlord at least ten (10) days prior to
their effective date thereof, together with receipts evidencing payment of the
premiums therefor. Tenant will deliver certificates of renewal for such policies
to Landlord not less than thirty (30) days prior to the expiration dates
thereof. No such policy shall contain a deductible or self insured retention
greater than $5,000.00 per claim, nor shall any such policy be the subject of an
indemnification or other arrangement by which any insured is obligated to repay
any insurer with respect to loss occurring on the Premises.

                                       8

<PAGE>

         8.05 If Tenant fails to provide all or any of the insurance required by
this Section 8 or subsequently fails to maintain such insurance in accordance
with the requirements hereof, then after giving one (1) business days written
notice to Tenant, Landlord may (but will not be required to) procure or renew
such insurance to protect its own interests only, and any amounts paid by
Landlord for such insurance will be additional rental due and payable on or
before the next Rent Day, together with late charges and interest as provided in
Section 5 hereof. Landlord and Tenant agree that no insurance acquired by
Landlord pursuant hereto shall cover any interest or liability of Tenant and any
procurement by Landlord of any such insurance or the payment of any such
premiums shall not be deemed to waive or release the default of Tenant with
respect thereto.

                                   SECTION 9.

                        DAMAGE BY FIRE OR OTHER CASUALTY

         9.01 It is understood and agreed that if, during the Term hereof, the
Project and/or the Premises shall be damaged or destroyed in whole or in part by
fire or other casualty, without the fault or neglect of Tenant, Tenant's
servants, employees, agents, visitors, invitees or licensees, which damage is
covered by insurance carried pursuant to Section 8 above, unless Landlord elects
to terminate this Lease as provided in Paragraph 9.02 below, Landlord shall
cause the Project and/or the Premises to be repaired and restored to good,
tenantable condition with reasonable dispatch at its expense; provided, however,
Landlord shall not be obligated to expend for such repair or restoration an
amount in excess of insurance proceeds made available to Landlord for such
purpose, if any. Landlord's obligation hereunder shall be limited to repairing
or restoring the Project and/or the Premises to substantially the same condition
that existed prior to such damage or destruction.

         9.02 If (i) more than fifty (50%) percent of the floor area of the
Premises shall be damaged or destroyed, (ii) more than twenty-five (25%) percent
of the Project shall be damaged or destroyed, or (iii) any material damage or
destruction occurs to the Premises or the Project during the last twelve (12)
months of the Initial Term or Option Term, as the case may be, then Landlord may
elect to either terminate this Lease or repair and rebuild the Premises. In
order to terminate this lease pursuant to this Paragraph, Landlord must give
written notice to Tenant of its election to so terminate, such notice to be
given within ninety (90) days after the occurrence of damage or destruction
fitting the above description, and thereupon the term of this Lease shall expire
by lapse of time ten (10) days after such notice is given and Tenant shall
vacate the Premises and surrender the same to Landlord, without prejudice,
however, to Landlord's rights and remedies against Tenant under the Lease
provisions in effect prior to such termination, and any rent owing shall be paid
up to such date and any payments of rent made by Tenant which were on account of
any period subsequent to such date shall be returned to Tenant. Tenant
acknowledges that Landlord will not carry insurance on Tenant's furniture and/or
furnishings or any fixtures or equipment, improvements, or appurtenances
removable by Tenant and agrees that Landlord will not be obligated to repair any
damage thereto or replace the same.

         9.03 Tenant shall give immediate notice to Landlord in case of fire or
accident at the Premises. If Landlord repairs or restores the Premises as
provided in Paragraph 9.01 above, Tenant shall promptly repair or replace its
trade fixtures, furnishings, equipment, personal property and leasehold
improvements in a manner and to a condition equal to that existing prior to the
occurrence of such damage or destruction.

         9.04 If the casualty, or the repairing or rebuilding of the Premises
pursuant to Paragraphs 9.01 and 9.02 above shall render the Premises
untenantable, in whole or in part, a proportionate abatement of the rent due
hereunder shall be allowed from the date when the damage occurred until the date
Landlord completes the repairs on the Premises or, in the event Landlord elects
to terminate this Lease, until the date of termination. Such abatement shall be
computed on the basis of the ratio of the floor area of the Premises rendered
untenantable to the entire floor area of the Premises.

         9.05 Tenant shall not entrust any property to any employee, contractor,
licensee, or invitee of Landlord. Any person to whom any property is entrusted
by or on behalf of Tenant in violation of foregoing prohibition shall be deemed
to be acting as Tenant's agent with respect to such property and neither
Landlord nor its agents shall be liable for any damage to property of Tenant or
of others entrusted to employees of the Project, nor shall Landlord or its
agents be liable for any such damage caused by other tenants or persons in, upon
or about the Project or caused by operations or construction of any private,
public or quasi-public work.

                                   SECTION 10.

                      REPAIRS, RENOVATIONS AND ALTERATIONS

         10.01 Tenant shall, at Tenant's sole expense, keep the interior of the
Premises and the fixtures therein in good condition, reasonable wear and tear
and damage from insured casualty excepted, and will also repair all damage or
injury to the Premises and fixtures resulting from the carelessness, omission,
neglect or other action or inaction of Tenant, its servants, employees, agents,
visitors, invitees or licensees. Such damage shall be promptly repaired or
damaged items replaced by Tenant, at its sole expense, to the satisfaction of
Landlord. If Tenant fails to make such repairs or replacements, Landlord

                                       9

<PAGE>

after providing ten (10) days notice thereby allowing Tenant an opportunity for
Tenant to cure, except in an emergency, may do so and the cost thereof shall
become collectible as additional rent hereunder and shall be paid by Tenant
within thirty (30) days after presentation of statement therefor. Landlord shall
maintain, and shall make all necessary repairs and replacements to, the
Building, the heating, air conditioning and electrical systems located therein,
and the Common Areas, provided that at Landlord's option, (i) Tenant shall make
all repairs and replacements arising from its act, neglect or default and that
of its agents, servants, employees, invitees and licensees, or (ii) Landlord may
make such repairs and replacements and the costs thereof shall become
collectable as additional rent hereunder and shall be paid by Tenant within
thirty (30) days after presentation of a statement therefore. Tenant shall keep
and maintain the Premises in a clean, sanitary and safe condition, and shall
keep and maintain the interior of the Premises in full compliance with the laws
of the United States and State of Michigan, all directions, rules and
regulations of any health officer, fire marshal, building inspector, or other
proper official of any governmental agency having jurisdiction over the
Premises, and the requirements of Landlord's mortgagee, all at Tenant's full
cost and expense, and Tenant shall comply with all requirements of law,
ordinance and regulation affecting the Premises. Tenant shall make all
non-structural repairs to the Premises as and when needed to preserve them in
good order and condition. All the aforesaid repairs shall be of quality or class
equal to the original construction. Tenant shall give Landlord prompt written
notice of any defective condition in any plumbing, heating system or electrical
lines located in, servicing or passing through the Premises and following such
notice, Landlord shall remedy the condition with due diligence but at the
expense of Tenant if repairs are necessitated by damage or injury attributable
to Tenant, Tenant's servants, agents, employees, invitees or licensees. There
shall be no allowance to Tenant for diminutions of rental value and no liability
on the part of Landlord by reason of inconvenience, annoyance or injury to
business arising from Landlord, Tenant, or others making or failing to make any
repairs, alterations, additions, or improvements in or to any portion of the
Building or the Premises or in and to the fixtures, appurtenances or equipment
thereof. The provisions of this Section 10 with respect to the making of repairs
shall not apply in the case of fire or other casualty which are dealt with in
Section 9 hereof.

         10.02 Tenant shall not make any renovations, alterations, additions or
improvements to the Premises without Landlord's prior written consent, which
consent shall not be unreasonably withheld or delayed. All plans and
specifications for such renovations, alterations, additions or improvements
shall be approved by Landlord prior to commencement of any work. Landlord's
approval of the plans, specifications and working drawings for Tenant's
alterations shall create no responsibility or liability on the part of Landlord
for their completeness, design sufficiency, or compliance with laws, rules and
regulations of governmental agencies or authorities, including but not limited
to the Americans with Disabilities Act, as amended. All renovations,
alterations, additions or improvements made by Tenant upon the Premises, except
for movable office furniture and movable trade fixtures installed at the expense
of Tenant, shall be and shall remain the property of Landlord, and shall be
surrendered with the Premises at the termination of this Lease, without
molestation or injury. In addition, Landlord may designate by written notice to
Tenant the alterations, additions, improvements and fixtures made by or for
Tenant, which shall be removed by Tenant at the expiration or termination of the
Lease and Tenant shall promptly remove the same and repair any damage to the
Premises caused by such removal.

         10.03 Tenant agrees that all renovations, alterations, additions and
improvements made by it pursuant to Paragraph 10.02, notwithstanding Landlord's
approval thereof, shall be done in a good and workmanlike manner and in
conformity with all guidelines provided by Landlord and all laws, ordinances and
regulations of all public authorities having jurisdiction, that materials of
good quality shall be employed therein, that the structure of the Premises shall
not be impaired thereby, that the work shall be carried out and completed in an
orderly, clean and safe manner, and that, while the work is being performed,
Tenant shall maintain builder's risk insurance coverage with Landlord as a named
insured, which insurance coverage shall meet the criteria set forth in Section
8.
                                   SECTION 11.

                                      LIENS

         11.01 Tenant will keep the Premises free of liens of any sort and will
hold Landlord harmless from any liens which may be placed on the Premises except
those attributable to debts incurred by Landlord. In the event a construction or
other lien shall be filed against the Building, the Premises or Tenant's
interest therein as a result of any work undertaken by Tenant or its employees,
agents, contractors or subcontractors, or as a result of any repairs or
alterations made by or any other act of Tenant or its employees, agents,
contractors or subcontractors, Tenant shall, within five (5) business days after
receiving notice of such lien, discharge such lien either by payment of the
indebtedness due the lien claimant or by filing a bond (as provided by statute)
as security for the discharge of such lien. In the event Tenant shall fail to
discharge such lien, Landlord shall have the right to procure such discharge by
filing such bond, and Tenant shall pay the cost of such bond to Landlord as
additional rent upon the next Rent Day in accordance with Section 5 hereof.

                                       10

<PAGE>
                                   SECTION 12.

                                 EMINENT DOMAIN

         12.01 If all of the Premises are condemned or taken in any manner
(including without limitation any conveyance in lieu thereof) for any public or
quasi-public use, the term of this Lease shall cease and terminate as of the
date title is vested in the condemning authority. If (i) more than fifty (50%)
percent of the floor area of the Premises shall be condemned or taken in any
manner, or (ii) more than twenty-five (25%) percent of the Building shall be
condemned or taken, or (iii) any material condemnation or taking occurs during
the last twelve (12) months of the Initial Term or Option Term, as the case may
be, or (iv) such a portion of the parking area on the Land is so condemned or
taken that the number of parking spaces remaining are less than the number
required by applicable zoning laws or other building code for the Building, then
Landlord may elect to terminate this Lease. In order to terminate this Lease
pursuant to this Paragraph, Landlord must give Tenant written notice of its
election to so terminate, such notice to be given not later than ninety (90)
days after the completion of such condemnation or taking, and thereupon the term
of this Lease shall expire on the date set forth in such notice, and Tenant
shall vacate the Premises and surrender the same to Landlord, without prejudice,
however, to Landlord's rights and remedies against Tenant under the Lease
provisions in effect prior to such termination, and any rent owing shall be paid
up to such date and any payments of rent made by Tenant which were on account of
any period subsequent to such date shall be returned to Tenant.

         12.02 If this Lease is not terminated following such a condemnation or
taking, Landlord, as soon as reasonably practicable after such condemnation or
taking and the determination and payment of Landlord's award on account thereof,
shall expend as much as may be necessary of the net amount which is awarded to
Landlord and released by Landlord's mortgagee, if any, in restoring, to the
extent originally constructed by Landlord (consistent, however, with zoning laws
and building codes then in existence), so much of the Building as was originally
constructed by Landlord to an architectural unit as nearly like its condition
prior to such taking as shall be practicable; provided, however, Landlord shall
not be obligated to expend for such restoration an amount in excess of
condemnation proceeds made available to Landlord, if any. Landlord's obligation
hereunder shall be limited to restoring the Building and/or the Premises to
substantially the same condition that existed prior to such condemnation or
taking.

         12.03 If this Lease is not terminated pursuant to Paragraph 12.01, the
Base Rent and other sums payable by Tenant hereunder, as adjusted as provided
herein, shall be reduced in proportion to the reduction in area of the Premises
by reason of the condemnation or taking. If this Lease is terminated pursuant to
Paragraph 12.01, the minimum net rental and other charges which are the
obligation of Tenant hereunder shall be apportioned and prorated accordingly as
of the date of termination.

         12.04 The whole of any award or compensation for any portion of the
Premises taken, condemned or conveyed in lieu of taking or condemnation,
including the value of Tenant's leasehold interest under the Lease, shall be
solely the property of and payable to Landlord. Nothing herein contained shall
be deemed to preclude Tenant from seeking, at its own cost and expense, an award
from the condemning authority for loss of its business, the value of any trade
fixtures or other personal property of Tenant in the Premises or moving
expenses, provided that the award for such claim or claims shall not be in
diminution of the award made to Landlord.

                                   SECTION 13.

                            ASSIGNMENT OR SUBLETTING

         13.01 Tenant agrees not to assign or in any manner transfer this Lease
or any interest in this Lease without the prior written consent of Landlord, and
not to sublet the Premises or any part of the Premises or to allow anyone to use
or to come in, through or under the Premises without Landlord's consent. Any
attempted subletting or assignment without Landlord's consent shall be voidable
in Landlord's sole discretion and, at Landlord's option, shall grant Landlord
the right to terminate this Lease or to exercise any of the other rights or
remedies it may have hereunder. If consented to, no assignment or subletting
shall be binding upon Landlord unless the sublessee or assignee shall deliver to
Landlord an instrument (in recordable form, if Landlord so requests) containing
an agreement of assumption of all of Tenant's obligations under this Lease. In
no event may Tenant assign, sublet or otherwise transfer this Lease or any
interest in this Lease at any time while an Event of Default exists hereunder.
Landlord may, in its sole discretion, refuse to give its consent to any proposed
subletting or assignment or exercise its other rights hereunder for any reason,
including, but not limited to, the financial condition, creditworthiness or
business reputation of the proposed sublessee or assignee, the prevailing market
or quoted rental rates for space in the Building or other comparable buildings,
and the proposed use of the Premises by, or business of, the proposed sublessee
or assignee. One consent by Landlord to a subletting or assignment will not be
deemed a consent to any subsequent assignment, subletting, occupation or use by
any other person. Neither the consent to any assignment or subletting nor the
acceptance of rent from an assignee, subtenant or occupant will constitute a
release of Tenant from the further performance of the obligations of Tenant
contained in this Lease. A dissolution, merger, consolidation, or other
reorganization of Tenant and the issuance or transfer of twenty (20%) percent or
more of the voting capital of Tenant to persons other than shareholders as of
the beginning of such period within any twelve (12) month period, shall each be
deemed to be an assignment of this Lease, and as such, prohibited without
Landlord's prior written consent. Notwithstanding anything in this paragraph to
the contrary, Landlord shall allow the occupancy of

                                       11
<PAGE>

the Premises by Tenant's parent company or a subsidiary or an affiliate which is
wholly owned by Tenant (the "Related Entity"), or the assignment of this Lease
or the subletting of all or a portion of the Premises to a Related Entity
provided that: (i) Tenant shall give written notice to Landlord at least sixty
(60) days prior to said proposed occupancy, assignment or subletting setting
forth the terms thereof together with such financial and other information
Landlord may request; and (ii) any such occupancy, assignment or subletting
shall not constitute a release of Tenant from the further performance of the
obligations of Tenant contained in this Lease; and (iii) any such occupancy,
assignment or subletting shall be subject to Sections 13.03 and 13.04.

         13.02 In the event Tenant desires to sublet all or a portion of the
Premises or assign this Lease, Tenant shall give notice to Landlord setting
forth the terms of the proposed subletting or assignment together with such
financial and other information Landlord may request. Landlord shall have the
right, exercisable by written notice to Tenant within thirty (30) days after
receipt of Tenant's notice, (i) to consent or refuse to consent thereto in
accordance with Paragraph 13.01 above, or (ii) to terminate this Lease which
termination may, in Landlord's sole discretion, be conditioned upon Landlord and
the proposed subtenant/assignee entering into a new Lease. However, in the event
Landlord desires to elect to terminate this Lease, it shall first notify Tenant
of its desire whereupon Tenant may withdraw the request within ten (10) days
after Landlord's notice by the delivery of written withdrawal thereof to
Landlord whereupon Landlord shall withdraw its recapture option and Tenant shall
remain fully obligated under this Lease.

         13.03 Upon the occurrence of an Event of Default, as defined under
Section 18, if all or any part of the Premises are then sublet or assigned,
Landlord, in addition to any other remedies provided by this Lease or by law,
may, at its option, collect directly from the sublessee or assignee all rent
becoming due to Landlord by reason of the subletting or assignment. Any
collection by Landlord from the sublessee or assignee shall not be construed to
constitute a waiver or release of Tenant from the further performance of its
obligations under this Lease or the making of a new Lease with such sublessee or
assignee.

         13.04 In the event Tenant shall sublet all or a portion of the Premises
or assign this Lease, all of the sums of money or other economic consideration
received by Tenant or its affiliates, directly or indirectly, as a result of
such subletting or assignment, whether denominated as rent or otherwise, which
exceed in the aggregate the total sums which Tenant is obligated to pay Landlord
under this Lease (prorated to reflect obligations allocable to that portion of
the Premises subject to such sublease) shall be payable to Landlord as
additional rent under this Lease without effecting or reducing any other
obligation of Tenant hereunder.

                                   SECTION 14.

                             INSPECTION OF PREMISES

         14.01 Tenant agrees to permit Landlord to enter the Premises for the
purpose of inspecting the same and to show same to prospective purchasers,
tenants or mortgagees of the Project, and to make such repairs, alterations,
improvements or additions as Landlord may deem necessary or desirable, and
Landlord shall be allowed to take all material into and upon the Premises that
may be required therefor without the same constituting an eviction of Tenant in
whole or in part and the rent reserved shall in no way abate while said repairs,
alterations, improvements, or additions are being made, by reason of loss or
interruption of business of Tenant, or otherwise. Landlord will give Tenant
reasonable notice prior to an entry by Landlord pursuant to this Section 14.01,
except in the case of emergencies in which event no notice need be given.

                                   SECTION 15.

                             FIXTURES AND EQUIPMENT

         15.01 All fixtures and equipment paid for by Landlord and all fixtures
and equipment which may be paid for and placed on the Premises by Tenant from
time to time but which are so incorporated and affixed to Premises that their
removal would involve damage or structural change to Premises will be and remain
the property of Landlord.

         15.02 All tenant furnishings, office equipment and tenant fixtures
(other than those specified in Sections 10.02 and 15.01), which are paid for and
placed on the Premises by Tenant from time to time (other than those which are
replacements for fixtures originally paid for by Landlord) will remain the
property of Tenant.

                                       12

<PAGE>

                                   SECTION 16.

                                  PARKING AREAS

         16.01 Tenant and its agents, employees, customers, licensees and
invitees shall have the non-exclusive right to use in common with Landlord and
all other tenants and occupants of the Building and their respective agents,
employees, customers, licensees and invitees, the Common Area parking and
loading dock facilities, if any, on the Land, and all driveways, entrances and
exits located within the Project necessary to provide a means of ingress and
egress to and from the Premises. Such use of parking facilities shall be subject
to, and consistent with, the Rules and Regulations of the Project (as set forth
in Exhibit B), together with such reasonable modifications and additions as may
be made thereto during the term of this Lease. Landlord shall designate the
number of parking spaces set forth in Paragraph 1.01(i) in the parking lot of
the Project for the exclusive use of Tenant (the "Tenant's Designated Parking
Spaces"). Tenant shall pay Landlord, as additional rent on each Rent Day, an
amount set forth in Section 1.01(i). Such sums may be increased by Landlord from
time to time by the delivery of thirty (30) days prior written notice to Tenant.
Within thirty (30) days of receipt of such notification, Tenant may: (i) accept
such increase; or (ii) reject such increase for all or any of its exclusive
spaces, in which event Tenant's exclusive parking rights for such spaces shall
terminate. If Tenant accepts such increase or fails to reject such increase
within the thirty (30) day period, then commencing with the next Rent Day
following Landlord's notice, the amount of additional rent payable hereunder
shall be increased accordingly. Notwithstanding anything contained herein to the
contrary, Landlord shall have the right to relocate Tenant's Designated Parking
Spaces within the parking lot of the Project, and Landlord shall have the right
to designate other parking spaces in the parking lot for the exclusive use of
others. Tenant agrees to be bound by parking regulations in effect at the
Project, together with reasonable modifications or additions as may be necessary
during the term of this Lease, as more fully described in Exhibit "B", attached
hereto and made part hereof.

                                   SECTION 17.

                                NOTICE OR DEMANDS

         17.01 All bills, notices, requests, statements, communications, or
demands (collectively, "notices or demands") to or upon Landlord or Tenant
desired or required to be given under any of the provisions hereof must be in
writing. Any such notices or demands from Landlord to Tenant will be deemed to
have been duly and sufficiently given if a copy thereof has been personally
delivered, mailed by United States certified mail, return receipt requested,
postage prepaid, or sent via overnight courier service to Tenant at the address
of the Premises or at such other address as Tenant may have last furnished in
writing to Landlord for such purpose. Any such notices or demands from Tenant to
Landlord will be deemed to have been duly and sufficiently given if delivered to
Landlord in the same manner as provided above at the address set forth at the
heading of this Lease or at the address last furnished by written notice from
Landlord to Tenant. The effective date and the delivery date of such notice or
demand will be deemed to be the time when it is personally delivered, three (3)
days after it is mailed or the day after it is sent via overnight courier as
herein provided.

                                   SECTION 18.

                          BREACH; INSOLVENCY; RE-ENTRY

         18.01 Each of the following shall constitute an Event of Default under
this Lease: (i) Tenant's failure to pay rent or any other sum payable hereunder
for more than five (5) business days after written notice of such failure has
been delivered to Tenant (but if one notice has been given in any twelve (12)
month period, no further notice shall be required during such twelve (12) month
period); (ii) Tenant's failure to perform any of the non-monetary terms,
conditions or covenants of this Lease to be observed or performed by Tenant for
more than seven (7) business days after written notice of such failure shall
have been delivered to Tenant except in connection with a breach which cannot be
remedied or cured within said seven (7) business day period, in which event the
time of Tenant within which to cure such breach shall be extended for such time
as shall be necessary to cure the same, but only if Tenant, within such seven
(7) business day period, shall have commenced and diligently proceeded to remedy
or cure such breach; (iii) if Tenant is named as the debtor in any bankruptcy
proceeding, or similar debtor proceeding, and any such proceeding, if
involuntary, is not dismissed or set aside within sixty (60) days from the date
thereof; (iv) if Tenant makes an assignment for the benefit of creditors or
petitions for or enters into an arrangement with creditors or if a receiver of
any property of Tenant in or upon the Premises is appointed in any action, suit
or proceeding by or against Tenant, or if Tenant shall admit to any creditor or
to Landlord that it is insolvent, or if the interest of Tenant in the Premises
shall be sold under execution or other legal process; or (v) if Tenant shall
suffer this Lease to be taken under any writ of execution. Upon the occurrence
of any Event of Default and after the delivery of written notice thereof to the
extent required under applicable Michigan law, Landlord, in addition to any
other rights and remedies it

                                       13

<PAGE>
may have hereunder or by law, shall have the immediate right of re-entry, and
may remove all persons and property from the Premises and it shall have the
right to abandon or otherwise dispose of such property in any way it may deem
fit which is not in contravention of applicable law. In addition, Landlord shall
have the right, but not the obligation, to store all or some of the property
which may have been removed in a public warehouse or elsewhere at the cost of,
and for the account of, Tenant, all without service of notice or resort to legal
process and all without being deemed guilty of trespass or becoming liable for
any loss or damage which may be occasioned thereby.

         18.02 In the event Landlord shall elect to re-enter the Premises in
accordance with Paragraph 18.01, or should Landlord take possession of Premises
pursuant to legal proceedings or pursuant to any notice provided by law,
Landlord may either terminate this Lease or may from time to time without
terminating this Lease, make such alterations and repairs as Landlord may deem
necessary in order to relet the Premises, and relet the Premises or any part
thereof for any such term or terms (which may be for a term extended beyond the
term of this Lease) and at such rental or rentals, and upon such other terms and
conditions as Landlord may deem advisable.

         18.03 Upon the reletting of the Premises in accordance with Paragraph
18.02, all rentals received by Landlord from such reletting shall be applied in
the following order of priority: (a) to the payment of any additional rent
payable as provided in Section 5 hereof, including interest and late charges;
(b) to the payment of any other indebtedness other than rent due hereunder from
Tenant to Landlord; (c) to the payment of the actual costs and expenses of
obtaining possession, restoring and repairing the Premises and the actual costs
and expenses of reletting, including brokerage and attorneys' fees; and (d) to
the payment of any rent and other sums due and unpaid under this Lease. The
remainder, if any, shall be held by Landlord and applied in payment of future
rent as the same may become due and payable hereunder. If the rental received
from such reletting during any month is less than that to be paid during that
month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord
monthly. No such re-entry or taking possession of the Premises or any part
thereof by Landlord shall be construed as an election on its part to terminate
this Lease unless a written notice of such intention is given to Tenant or
unless the termination thereof is decreed by a court of competent jurisdiction.

         18.04 Notwithstanding any reletting of the Premises without termination
in accordance with Paragraph 18.02, Landlord may at any time after the
occurrence of any Event of Default, terminate this Lease and, in addition to any
other remedies Landlord may have, Landlord may recover from Tenant all damages
it may incur by reason of Tenant's breach, including, without limitation, the
reasonable cost of recovering and reletting the Premises and reasonable
attorneys' fees incidental thereto and the worth at the time of the termination
of the amount of rent and other charges payable hereunder for the remainder of
the Term, all of which amounts shall be immediately due and payable by Tenant to
Landlord.

         18.05 In case suit shall be brought or an attorney otherwise consulted,
for recovery of possession of the leased premises, for the recovery of rent or
any other amount due under the provisions of this Lease, or because of the
breach of any other covenant herein contained on the part of Tenant to be kept
and performed, or any other action against Tenant by Landlord, or because of any
claimed breach of this Lease by Landlord or any other action against Landlord by
Tenant, (and Landlord shall be the prevailing party), Tenant shall pay to
Landlord all expenses incurred therefor, including a reasonable attorneys' fee.
In addition, Landlord and Tenant hereby waive trial by jury in any action,
proceeding or counterclaim brought by Landlord or Tenant against the other on
any matter whatsoever arising out of or in any way connected with this Lease,
the relationship of Landlord to Tenant, the use or occupancy of the Premises by
Tenant or any person claiming through or under Tenant, any claim of injury or
damage, and any emergency or other statutory remedies; provided, however, the
foregoing waiver shall not apply to any action for personal injury or property
damage.

         18.06 Landlord and Tenant shall each use reasonable efforts to mitigate
any damages resulting from a default of the other party under this Lease.
Landlord's obligation to mitigate damages after a default by Tenant under this
Lease shall be satisfied in full if Landlord undertakes to lease the Premises to
another tenant (the "Substitute Tenant") in accordance with the following
criteria:

                  (i) Landlord shall have no obligation to solicit or entertain
negotiations with any other prospective Substitute Tenant for the Premises until
Landlord obtains full and complete possession of the Premises, including,
without limitation, the absolute right to relet the Premises free of any claim
of Tenant.

                  (ii) Landlord may give priority to lease any or all available
space(s) in the Project before offering the Premises to a Substitute Tenant.

                  (iii) Landlord shall not be obligated to lease the Premises to
a Substitute Tenant for a rental less than the current fair market rental then
prevailing for similar space in comparable properties in the same sub-market as
the Building, nor shall Landlord be obligated to enter into a lease under other
terms and conditions that are unacceptable to Landlord under Landlord's then
current leasing policies for comparable space in the Building.

                  (iv) Landlord shall not be obligated to enter into a lease
with any proposed Substitute Tenant whose use would:

                           A.       Disrupt the tenant mix of the Building;

                                       14
<PAGE>
                           B.       Violate any restriction, covenant, or
                                    requirement contained in the lease of
                                    another tenant of the Building or Project;

                           C.       Adversely affect the reputation of the
                                    Building or the Project; or

                           D.       Be incompatible with the tenancy or use of
                                    the Building as a first class office
                                    building.

                  (v) Landlord shall not be obligated to enter into a lease with
any proposed Substitute Tenant which does not have, in Landlord's reasonable
opinion, sufficient financial resources to lease the Premises.

                  (vi) Landlord shall not be required to expend any amount of
money to alter, remodel, or otherwise make the Premises suitable for use by a
proposed Substitute Tenant unless:

                           A.       Tenant pays any such sum to Landlord in
                                    advance of Landlord's execution of a
                                    lease with a Substitute Tenant (which
                                    payment shall not be in lieu of any
                                    damages or other sums to which Landlord
                                    may be entitled as a result of Tenant's
                                    default under this Lease); or

                           B.       Landlord, in Landlord's reasonable
                                    discretion, determines that any such
                                    expenditure is financially justified
                                    in connection with entering into a lease
                                    with such Substitute Tenant.

Upon compliance with the above criteria regarding releasing of the Premises
after a default by Tenant, Landlord shall be deemed to have fully satisfied
Landlord's obligation to mitigate damages under this Lease and under any law or
judicial ruling in effect on the date of this Lease or at the time of Tenant's
default, and Tenant waives and releases, to the fullest extent legally
permissible, any right to assert in any action by Landlord to enforce the terms
of this Lease, any defense, counterclaim, or rights of setoff or recoupment
respecting the mitigation of damages by Landlord, unless and to the extent
Landlord fails to act in accordance the requirements of this section.

                                   SECTION 19.

                      SURRENDER OF PREMISES ON TERMINATION

         19.01 At the expiration (or earlier termination) of the Term hereof,
Tenant will surrender the Premises broom clean and in as good condition and
repair as they were at the time Tenant took possession, reasonable wear and tear
and damages for insured casualty excepted, and promptly upon surrender will
deliver all keys and building security cards for the Premises to Landlord at the
place then fixed for the payment of rent. At the expiration of the Lease term,
Tenant will, at its own cost and expense, repair or pay the cost of restoration
with respect to any damage to the Premises arising from the removal of any trade
fixtures or similar items. Tenant shall have no rights of removal as to property
affixed or otherwise placed on or in the Premises by or at the expense of
Landlord, its predecessors, successors or assigns. All costs and expenses
incurred by Landlord in connection with repairing or restoring the Premises to
the condition called for herein, together with the costs, if any, of removing
any property of Tenant together with any property designated by Landlord
pursuant to Section 10.02, left on the Premises, shall be paid by Tenant on
demand. Tenant shall remove all property of Tenant and make all repairs
necessitated thereby at its own cost, as directed by Landlord. Tenant's
obligation to observe or perform this covenant shall survive the expiration or
other termination of the Term of this Lease.

                                   SECTION 20.

               PERFORMANCE BY LANDLORD OF THE COVENANTS OF TENANT

         20.01 If Tenant fails to pay any sum of money, other than Base Rent,
required to be paid hereunder or fails to perform any act on its part to be
performed hereunder, including, but not limited to, the performance of all
covenants pertaining to the condition and repair of the Premises pursuant to
Section 10 above, and if such failure shall not otherwise be cured within the
time, if any, provided herein, then upon five (5) business days notice Landlord
may (but shall not be required to), without waiving or releasing Tenant from any
of Tenant's obligations, make any such payment or perform any such other act.
All sums so paid or incurred by Landlord and all incidental costs, including,
but not limited to, the cost of repair, maintenance or restoration of the
Premises, shall be deemed additional rental and, together with interest thereon
computed at the rate set forth in Section 5 hereof from the date of payment by
Landlord until the date of repayment by Tenant to Landlord, shall be payable to
Landlord on demand. On default in such payment, Landlord shall have the same
remedies as on default in payment of rent. The rights and remedies granted to
Landlord under this Section 20 shall be in addition to, and not in lieu of, all
other remedies, if any, available to Landlord under this Lease or otherwise, and
nothing contained herein shall be construed to limit such other remedies of
Landlord with respect to any matters covered herein.

                                     15
<PAGE>

                                   SECTION 21.

                      SUBORDINATION; ESTOPPEL CERTIFICATES

         21.01 This Lease is subject and subordinate to all ground leases,
underlying leases, and mortgages, if any, now or hereafter made, which may now
or hereafter affect the Project and to all renewals, modifications,
consolidations, replacements and extensions of any such ground leases,
underlying leases and mortgages. This clause shall be self-operative and no
further instrument of subordination shall be necessary. Notwithstanding the
foregoing, Landlord reserves the right to declare this Lease prior to the lien
of any ground lease, underlying lease, or mortgage now or hereinafter placed
upon the real property of which the Premises are a part by recording a written
notice of such priority with the register of deeds. Tenant covenants and agrees
to execute and deliver, within ten (10) days after requested by Landlord, such
further instrument or instruments subordinating this Lease (or declaring the
Lease prior and superior) to any lease or proposed lease or to the lien of any
such mortgage or mortgages as shall reasonably be desired by Landlord, any
lessor or proposed lessor, and any mortgagees or proposed mortgagees.

         21.02 In the event any proceedings are brought for foreclosure of, or
in the event of the conveyance by deed in lieu of foreclosure of, or in the
event of the exercise of the power of sale under, any mortgage made by Landlord
covering the Premises, Tenant hereby attorns to the new owner, and covenants and
agrees to execute any instrument in writing reasonably satisfactory to the new
owner, whereby Tenant attorns to such successor in interest and recognizes such
successor as Landlord under this Lease.

         21.03 Tenant, within ten (10) days after request (at any time or times)
by Landlord, will execute and deliver to Landlord an estoppel certificate, in
form reasonably acceptable to Landlord, certifying: (i) to the Commencement Date
and expiration date of the Term; (ii) that this Lease is unmodified and in full
force and effect, or is in full force and effect as modified, stating the
modifications; (iii) that Tenant does not claim that Landlord is in default in
any way, or listing any such claimed defaults and that Tenant does not claim any
rights of setoff, or listing such rights of setoff; (iv) to the amount of
monthly rent and other sums due hereunder as of the date of the certificate, the
date to which the rent has been paid in advance, and the amount of any security
deposit or prepaid rent; (v) that Tenant agrees to provide any mortgagee of
Landlord with notice of any default by Landlord hereunder and give such
mortgagee the opportunity to cure such default within sixty (60) days of such
mortgagee's receipt of notice of such default; and (vi) such other matters as
may be reasonably requested by Landlord. Any such certificate may be relied upon
by any prospective purchaser, mortgagee or lessor of the Premises or any part
thereof.

                                   SECTION 22.

                                 QUIET ENJOYMENT

         22.01 Landlord agrees that at all times when no Event of Default exists
under this Lease, Tenant's quiet and peaceable enjoyment of the Premises, in
accordance with and subject to the terms of this Lease, will not be disturbed or
interfered with by Landlord or any person claiming by, through, or under
Landlord.
                                   SECTION 23.

                                  HOLDING OVER

         23.01 If Tenant remains in possession of the Premises after the
expiration of this Lease without executing a new lease, Landlord shall have the
right to deem Tenant to be occupying the Premises as a tenant from month to
month and the Base Rent for each month will be one hundred fifty percent (150%)
of the greater of: (a) the regular monthly installment of Base Rent payable for
the last month of the Term of this Lease; or (b) the then prevailing market
rates of rent for the Project determined by Landlord in its sole and absolute
discretion. This provision shall not preclude Landlord from terminating the
lease or recovering any and all damages Landlord may incur as a result of
Tenant's failure to timely deliver possession of the Premises to Landlord or
from exercising any other right or remedy it may have hereunder.

                                   SECTION 24.

                         REMEDIES NOT EXCLUSIVE; WAIVER

         24.01 Each and every of the rights, remedies and benefits of Landlord
provided by this Lease are cumulative, and are not exclusive of any other of
said rights, remedies and benefits, or of any other rights, remedies and
benefits allowed by law.

                                       16

<PAGE>

         24.02 The failure of Landlord to seek redress for violation of, or to
insist upon the strict performance of, any covenant or condition of this Lease
or of any of the rules or regulations set forth or hereafter adopted by
Landlord, shall not prevent a subsequent act which would have originally
constituted a violation from having all the force and effect of an original
violation. The receipt by Landlord of rent with knowledge of the breach of any
covenant of this Lease shall not be deemed a waiver of such breach and no
provision of this Lease shall be deemed to have been waived by Landlord unless
such waiver be in writing signed by Landlord. One or more waivers of any
covenant or condition by either party shall not be construed as a waiver of a
further or subsequent breach of the same covenant or condition, and the consent
or approval by Landlord to or of any act by Tenant requiring Landlord's consent
or approval will not be deemed to waive or render unnecessary Landlord's consent
or approval to or of any subsequent similar act by Tenant. No payment by Tenant
or receipt by Landlord of a lesser amount than the monthly rental herein
stipulated shall be deemed to be other than on account of the earliest
stipulated rent, nor shall any endorsement or statement on any check or any
letter accompanying any check or payment as rent be deemed an accord and
satisfaction, and Landlord shall accept such check or payment without prejudice
to Landlord's right to recover the balance of such rent or pursue any other
remedy provided in this Lease.

                                   SECTION 25.

                              WAIVER OF SUBROGATION

         25.01 Landlord and Tenant hereby release each other and their
respective agents and employees from any and all liability to each other or
anyone claiming through or under them by way of subrogation or otherwise for any
loss or damage to property caused by or resulting from risks insured against
under the property insurance for loss, damage or destruction by fire or other
casualty carried by the parties hereto and which was in force at the time of any
such loss or damage or which would have been so covered had the insurance
required hereunder been maintained; provided, however, that this release shall
be applicable only with respect to loss or damage occurring during such time as
the releasor's policies of insurance contain a clause or endorsement to the
effect that any such release shall not adversely affect or impair such policies
or prejudice the right of the releasor to recover thereunder. Landlord and
Tenant each agrees that it will require its property insurance carriers to
include in its policy such a clause or endorsement. However, if such endorsement
cannot be obtained, or shall be obtainable only by the payment of an additional
premium charge above that which is charged by companies carrying such insurance
without such waiver of subrogation, then the party undertaking to obtain such
waiver shall notify the other party of such fact and such other party shall have
a period of ten (10) days after the giving of such notice to agree in writing to
pay such additional premium if such policy is obtainable at additional cost (in
the case of Tenant, pro rate in proportion of Tenant's rentable area to the
total rentable area covered by such insurance); and if such other party does not
so agree or the waiver shall not be obtainable, then the provisions of this
Section 25.01 shall be null and void as to the risks covered by such policy for
so long as either such waiver cannot be obtained or the party in whose favor a
waiver of subrogation is desired shall refuse to pay the additional premium. If
the release of either Landlord or Tenant, as set forth in the second sentence of
this Section 25.01, shall contravene any law with respect to exculpatory
agreements, the liability of the party in question shall be deemed not released,
but no action or rights shall be sought or enforced against such party unless
and until all rights and remedies against the other's insurer are exhausted and
the other party shall be unable to collect such insurance proceeds. The waiver
of subrogation referred to above shall extend to the agents and employees of
each party (including, as to Landlord, the Manager), but only if and to the
extent that such waiver can be obtained without additional charge (unless such
party shall pay such charge). Nothing contained in this Section 25.01 shall be
deemed to relieve either party from any duty imposed elsewhere in this Lease to
repair, restore and rebuild.

                                   SECTION 26.

                             RIGHT TO SHOW PREMISES

         26.01 Landlord may upon reasonable advance notice except in an
emergency show the Premises to prospective tenants and brokers, and may display
signs about the Project and elsewhere advertising the availability of the
Premises. Landlord shall use reasonable efforts not to materially disrupt,
disturb or interfere with the conduct of Tenant's business during such entry.

                                   SECTION 27.

                                 INDEMNIFICATION

         27.01 Tenant, its successors and assigns shall indemnify and hold
harmless Landlord and all superior lessors or superior mortgagees and its and
their respective partners, directors, officers, agents and employees from and
against any and all third-party claims arising from or in connection with: (i)
the

                                       17

<PAGE>

conduct or management of the Premises or of any business therein, or any work or
thing whatsoever done, or any condition created in or about the Premises, during
the term of this Lease; (ii) any act, omission or negligence of Tenant or any of
its subtenants or licensees or its or their partners, directors, officers,
agents, employees, invitees or contractors; (iii) any accident, injury or damage
whatever occurring in, at or upon the Premises; and (iv) any breach or default
by Tenant in the full and prompt payment and performance of Tenant's obligations
under this Lease; together with all costs, expenses and liabilities incurred or
in connection with each such claim or action or proceeding brought thereon,
including, without limitation, all attorneys' fees and expenses. If any case any
action or proceeding is brought against Landlord or any superior lessor or
superior mortgagee or its or their partners, directors, officers, agents or
employees and such claim is a claim for which Tenant is obligated to indemnify
Landlord pursuant to this Section 27, Tenant upon notice from Landlord or such
superior lessor or superior mortgagee, shall resist and defend such action or
proceeding (by counsel reasonably satisfactory to Landlord). The obligation of
Tenant under this Section 27 shall survive termination of this Lease.

         27.02 Landlord, at its expense, will defend, indemnify, save and hold
harmless Tenant, its licensees, servants, agents, employees, affiliated entities
and contractors: from and against any loss, damage, claim of damage, liability
or expense (including attorneys' fees) to or for any person or property, whether
it is based on contract, tort, negligence or otherwise, or arising directly or
indirectly out of or in connection with the condition of the Common Areas or the
other parts of the Project not leased to or occupied by others, the use or
misuse thereof by Landlord, its licensees, servants, agents, employees, or
contractors, the failure of Landlord to comply with the terms of this Lease, or
any event on or relating to the Common Areas or the other parts of the Project
not leased to or occupied by others, whatever the cause, or any litigation or
other proceeding by or against Landlord to which Tenant is made a party, other
than the intentional, willful or malicious act of Tenant which causes injury
and/or damages. The provisions of this indemnification shall survive expiration
and termination of this Lease, which is either expected or intended by Tenant
when it performed the act in question.

                                   SECTION 28.

                  DEFINITION OF LANDLORD; LANDLORD'S LIABILITY

         28.01 The term "Landlord" as used in this Lease so far as covenants,
agreements, stipulations or obligations on the part of Landlord are concerned is
limited to mean and include only the owner or owners of the Premises at the time
in question, and in the event of any transfer or transfers of the title to such
fee Landlord herein named (and in case of any subsequent transfers or
conveyances the then grantor) will automatically be freed and relieved from and
after the date of such transfer or conveyance of all personal liability for the
performance of any covenants or obligations on the part of Landlord contained in
this Lease thereafter to be performed.

         28.02 This Lease and the obligation of Tenant to pay rent hereunder and
perform all of the other covenants and agreements hereunder on the part of
Tenant to be performed shall in no way be affected, impaired or excused because
Landlord is unable to fulfill any of its obligations under this Lease or is
unable to supply or is delayed in supplying any service expressly or implied to
be supplied or is unable to make, or is delayed in making any repairs,
additions, alterations or decorations or is unable to supply or is delayed in
supplying any equipment or fixtures if Landlord is prevented or delayed from so
doing by reasons of shortages of materials, acts of God, governmental
restrictions, strike or labor troubles or any cause beyond Landlord's reasonable
control including, but not limited to, government preemption in connection with
a national emergency or by reason of any rule, order or regulation of any
department or subdivision thereof of any government agency or by reason of the
conditions of supply and demand which have been or are affected by war or other
emergency.

                                   SECTION 29.

                                       18

<PAGE>

INTENTIONALLY DELETED

                                   SECTION 30.

                              RULES AND REGULATIONS

         30.01 Tenant shall faithfully abide by and observe the rules and
regulations for the Building, a copy of which is attached hereto as Exhibit B
and made a part hereof, and, after notice thereof, all additions thereto and
modifications thereof of uniform applicability from time to time promulgated in
writing by Landlord.
                                   SECTION 31.

                              SIGNS AND ADVERTISING

         31.01 No signs, lighting, lettering, pictures, notices, advertisements,
shades, awnings or decorations will be displayed, used or installed by Tenant
except as approved in writing by Landlord. All such materials displayed in and
about the Premises will be such only as to advertise the business carried on
upon the Premises and Landlord will control the location, character and size
thereof. Tenant shall not cause or permit to be used any advertising materials
or methods which are reasonably objectionable to Landlord or to other tenants of
the Building, including without limiting the generality of the foregoing:
loudspeakers, mechanical or moving display devices, unusually bright or flashing
lights and similar devices the effect of which may be seen or heard from outside
the Premises. Tenant shall not solicit business, sell or display merchandise, or
distribute hand bills or other advertising matter in the parking area or other
Common Areas.

                                   SECTION 32.

                                     GENERAL

         32.01 If, by reason of the occurrence of unavoidable delays due to acts
of God, governmental restrictions, strikes, labor disturbances, shortages of
materials or supplies or for any other cause or event beyond Landlord's
reasonable control, Landlord is unable to furnish or is delayed in furnishing
any service required by Landlord under the provisions of this Lease, or Landlord
is unable to perform or make or is delayed in performing or making any
installations, decorations, repairs, alterations, additions, or improvements,
required to be performed or made under this Lease, or is unable to fulfill or is
delayed in fulfilling any of Landlord's other obligations under this Lease, no
such inability or delay shall constitute an actual or constructive eviction in
whole or in part, or, except as otherwise expressly provided herein, entitle
Tenant to any abatement or diminution of rental or other charges due hereunder
or otherwise relieve Tenant from any of its obligations under this Lease, or
impose any liability upon Landlord or its agents by reason of inconvenience or
annoyance to Tenant, or injury to or interruption of Tenant's business, or
otherwise.

         32.02 This Lease is being entered into and executed in the State of
Michigan, and all questions with respect to the construction of this Agreement
and the rights and liabilities of the parties shall be determined in accordance
with the provisions of the laws of the State of Michigan.

         32.03 Many references in this Lease to persons, entities and items have
been generalized for ease of reading. Therefore, references to a single person,
entity or item will also mean more than one person, entity or thing whenever
such usage is appropriate (for example, "Tenant" may include, if appropriate, a
group of persons acting as a single entity, or as tenants-in-common). Similarly,
pronouns of any gender should be considered interchangeable with pronouns of
other genders.

                                       19

<PAGE>

         32.04 Section headings appearing in this Lease are for convenience
only. They do not define, limit or construe the contents of any paragraphs or
clauses contained herein.

         32.05 Landlord reserves the right should it become necessary to comply
with required laws and regulations, or to assure the health, safety and welfare
of Tenant or other occupants of the building to relocate Tenant in other
comparable space in the Building upon not less than sixty (60) days prior
written notice to Tenant. Landlord shall pay the cost of moving Tenant to new
space. If Tenant does not wish to accept such relocation, Tenant may object
thereto by written notice to Landlord within ten (10) days after the notice from
Landlord. In the event Tenant fails to object within such ten (10) day period,
Tenant shall be deemed to have accepted the relocation. In the event Tenant so
objects, Landlord may rescind the notice of intention to relocate Tenant or may
reaffirm said intention, in which event Tenant may terminate this Lease by
written notice to Landlord within five (5) days after the affirmation notice
from Landlord. In the event Tenant fails to notify Landlord of its termination
within such five (5) day period, it shall be deemed to have accepted the
relocation. If Tenant terminates this Lease pursuant this paragraph, Tenant must
vacate the Premises within thirty (30) days following Tenant's notice to
Landlord of termination.

         32.06 The covenants, conditions and agreements contained in this Lease
shall bind and inure to the benefit of Landlord and Tenant and their respective
heirs, distributees, successors, administrators and executors provided, however,
that no assignment by, from, through, or under Tenant in violation of any of the
provisions hereof shall vest in the assigns any right, title, or interest
whatsoever. All provisions of this Lease are and will be binding on the
successors and permitted assigns of Landlord and Tenant.

         32.07 Time shall be and is of the essence in this Lease and with
respect to the performance of all obligations of Landlord and Tenant hereunder.

         32.08 Any services which Landlord is required to furnish pursuant to
the provisions of this Lease may, at Landlord's option, be furnished from time
to time, in whole or in part, by employees of Landlord or by the managing agent
of the Project or by one or more third persons.

         32.09 INTENTIONALLY DELETED.

         32.10 Neither Landlord nor Landlord's agents have made any
representations or promises with respect to the physical condition of the
Building, the Land or the Premises, or with respect to the rents, leases,
expenses of operation or any other matter or thing affecting or related to the
Premises except as expressly set forth herein; and no rights, easements or
licenses are acquired by Tenant by implication or otherwise except as expressly
set forth in the provisions of this Lease.

         32.11 Annually and at any other time, Tenant shall promptly furnish
Landlord their most recent audited financial statements or quarterly updates
reflecting Tenant's current financial condition. All such financial statements
shall be in such form and contain such detail as Landlord shall reasonably
request.

         32.12 In case any provision of this Lease or any agreement or
instrument executed in connection herewith shall be invalid, illegal or
unenforceable, such provision shall be enforced to the fullest extent permitted
by applicable law, and the validity, legality and enforceability of the
remaining provisions hereof and thereof shall not in any way be affected or
impaired thereby. This Lease shall not be construed more strictly against one
party than against the other, merely by virtue of the fact that it may have been
prepared by counsel for one of the parties, it being recognized that both
Landlord and Tenant have contributed substantially and materially to the
preparation of this Lease.

         32.13 This Lease can be modified or amended only by a written agreement
signed by Landlord and Tenant. This Lease and the Exhibits attached hereto and
forming a part hereof set forth all of the covenants, agreements, stipulations,
promises, conditions and understandings between Landlord and Tenant concerning
the Premises, and there are no covenants, agreements, stipulations, promises,
conditions or understanding, either oral or written, between them other than set
forth herein or therein.

         32.14 Tenant will not record this Lease or a memorandum hereof, and
will not otherwise disclose the terms of this Lease to anyone other than its
attorneys, accountants or employees who need to know of its contents in order to
perform their duties for Tenant. Any other disclosure will be an Event of
Default under the Lease. Tenant agrees that Landlord shall have the right to
publish a "tombstone" or other promotional description of this Lease.

                                       20

<PAGE>

         32.15 Except as disclosed in writing to Landlord, Tenant represents and
warrants to Landlord that there are no claims for brokerage commissions or
finder's fees in connection with this Lease as a result of the contracts,
contacts or actions of Tenant, and Tenant agrees to indemnify Landlord and hold
it harmless from all liabilities arising from any such claim arising from an
alleged agreement or act by Tenant (including, without limitation, the cost of
counsel fees in connection therewith); such agreement to survive the termination
of this Lease.

         32.16 The matters set forth on Exhibit D, Special Provisions, if any,
are hereby accepted and agreed to between Landlord and Tenant and incorporated
herein by reference.

         IN WITNESS WHEREOF Landlord and Tenant have executed this Lease as of
the date and year first above written.

<TABLE>
<S>                                                    <C>
LANDLORD:                                              TENANT:
AMERICAN CENTER LLC, a Michigan Limited                SUN COMMUNITIES OPERATING LIMITED
Liability Company                                      PARTNERSHIP, a Michigan Limited Partnership

BY:  SOUTHFIELD OFFICE MANAGER, INC.

By:  /s/ Paul A. Stodulski                             By:   /s/  Jeffrey P. Jorissen
   -----------------------------------------              --------------------------------------------------

Printed::  Paul A. Stodulski                           Printed:  Jeffrey P. Jorissen
         -----------------------------------                    --------------------------------------------

Its:  Secretary                                        Its:  Chief Financial Officer of its General Partner,
    ----------------------------------------                 Sun Communities, Inc.
                                                             -----------------------------------------------
</TABLE>

                                       21<PAGE>

                                                                   EXHIBIT 10.62

                               TERM LOAN AGREEMENT

         This Term Loan Agreement, dated as of October 10, 2002, is among SUN
FINANCIAL, LLC, a Michigan limited liability company, SUN FINANCIAL TEXAS
LIMITED PARTNERSHIP, a Michigan limited partnership, SUN COMMUNITIES OPERATING
LIMITED PARTNERSHIP, a Michigan limited partnership, SUN COMMUNITIES, INC., a
Maryland corporation, the Lenders and LEHMAN COMMERCIAL PAPER INC., a New York
corporation, as Lender and as Agent and the Lenders that are signatories hereto.
The parties hereto agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         As used in this Agreement:

         "Adjusted Eurodollar Base Rate" means, with respect to a Eurodollar
Advance for the relevant Interest Period, the quotient of (i) the Eurodollar
Base Rate applicable to such Interest Period divided by (ii) one minus the
Reserve Requirement applicable to such Interest Period (expressed as a decimal).

         "Advance" means a borrowing hereunder (i) made by the Lenders on the
same Borrowing Date, or (ii) converted or continued by the Lenders on the same
date of conversion or continuation, consisting, in either case, of the aggregate
amount of the Advances and, in the case of a Eurodollar Loan, for the same
Interest Period.

         "Affiliate" of any Person means any other Person directly or indirectly
controlling, controlled by or under common control with such Person. A Person
shall be deemed to control another Person if the controlling Person owns 10% or
more of any class of voting securities (or other ownership interests) of the
controlled Person or possesses, directly or indirectly, the power to direct or
cause the direction of the management or policies of the controlled Person,
whether through ownership of stock, by contract or otherwise.

         "Agent" means Lehman Commercial Paper Inc. in its capacity as
contractual representative of the Lenders pursuant to Article X, and not in its
individual capacity as a Lender, and any successor Agent appointed pursuant to
Article X.

         "Aggregate Commitment" means $48,000,000.00 as reduced from time to
time pursuant to the terms hereof.

         "Agreement" means this term loan agreement, as it may be amended or
modified and in effect from time to time.

         "Agreement Accounting Principles" means generally accepted accounting
principles as in effect from time to time, applied in a manner consistent with
that used in preparing the financial statements referred to in Section 5.4.

         "Applicable Laws" means all existing and future federal, state and
local laws, statutes, orders, ordinances, rules, and regulations or orders,
writs, injunctions or decrees of any court

<PAGE>

affecting the Borrower, the Partnership, the REIT, or any Mortgaged Property, or
the use thereof including, but not limited to, all zoning, fire safety and
building codes, the Americans with Disabilities Act, and all Environmental Laws.

         "Applicable Margin" means, with respect to Advances of any Type at any
time, the percentage rate per annum determined by reference to the lower of the
two Unsecured Debt Ratings of the Partnership (i.e., higher pricing) set forth
below:

<TABLE>
<CAPTION>
----------------------- --------------------- ------------------------- ----------------------- ----------------------
  STANDARD & POOR'S      MOODY'S INVESTORS
   RATINGS SERVICES        SERVICES, INC.      APPLICABLE MARGIN FOR    APPLICABLE MARGIN FOR
     RATING OR A            RATING OR A       EURODOLLAR LOANS FROM     EURODOLLAR LOAN FROM
  SUBSTITUTE RATING      SUBSTITUTE RATING    THE DATE HEREOF THROUGH      JANUARY 11, 2003       APPLICABLE MARGIN
  AGENCY EQUIVALENT      AGENCY EQUIVALENT     AND INCLUDING JANUARY    THROUGH AND INCLUDING    FOR FLOATING RATE
        RATING                 RATING                 10, 2003            THE MATURITY DATE             LOANS
----------------------- --------------------- ------------------------- ----------------------- ----------------------
<S>                     <C>                   <C>                       <C>                     <C>
     A- or higher           A3 or higher               1.00%                    1.50%             In all cases the
         BBB+                   Baa1                   1.10%                    1.60%              Applicable Margin
         BBB                    Baa2                   1.20%                    1.70%            for Eurodollar Loans
         BBB-                   Baa3                   1.40%                    1.90%                 minus 1.00%
     BB+ or lower           Ba1 or lower               1.95%                    2.45%
If no Rating Agency or Substitute Rating
Agency assigns a rating to the Borrower for
whatever reason                                        1.95%                    2.45%
</TABLE>

         The Applicable Margin for each Eurodollar Advance shall be determined
by reference to the lower of the two Unsecured Debt Ratings of Borrower in
effect on the first day of the related Interest Period. The Applicable Margin
for each Floating Rate Advance shall be determined by reference to the lower of
the two Unsecured Debt Ratings of the Borrower in effect from time to time, and
each change in such Applicable Margin shall be effective as of the date such
Unsecured Debt Rating is announced.

         "Article" means an article of this Agreement unless another document is
specifically referenced.

         "Assets" of any Person means all assets of such Person that would, in
accordance with Agreement Accounting Principles, be classified as assets of a
company conducting a business the same as or similar to that of such Person,
including without limitation, all Real Property Assets.

         "Base Rate" for any day, a rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to the greatest of (a) the Prime Rate
in effect on such day and (b) the Federal Funds Effective Rate in effect on such
day plus 1/2 of 1%. For purposes hereof, "Prime Rate" shall mean the prime
lending rate as set forth on the British Banking Association Telerate page 5 or
such other comparable page as may, in the opinion of the Administrative Agent,
replace such page for the purpose of displaying such rate), as in effect from
time to time.

         "Authorized Officer" means any of the President or Chief Financial
Officer of the REIT, acting singly.

                                       2
<PAGE>

         "Borrower" or "Borrowers" means Sun Financial and Sun LP, together or
individually as the context may require.

         "Borrowing Date" means a date on which an Advance is made hereunder.

         "Borrowing Notice" is defined in Section 2.2.3.

         "Business Day" means (i) with respect to any borrowing, payment or rate
selection of Eurodollar Advances, a day (other than a Saturday or Sunday) on
which banks generally are open in New York City for the conduct of substantially
all of their commercial lending activities, interbank wire transfers can be made
on the Fedwire system and dealings in United States dollars are carried on in
the London interbank market and (ii) for all other purposes, a day (other than a
Saturday or Sunday) on which banks generally are open in New York City for the
conduct of substantially all of their commercial lending activities and
interbank wire transfers can be made on the Fedwire system.

         "Closing Date" means the date of this Agreement.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time, and any successor statute, together with all rules and regulations from
time to time promulgated thereunder.

         "Collateral Assignment" means those certain collateral assignments of
mortgages/deeds of trust each dated the date hereof given by Borrowers to Lender
and intended to be recorded in the appropriate real estate records, which
collaterally assign Borrowers' interest in the Pledged Assets to Lender.

         "Collateral Default" has the meaning provided in the Security
Agreement.

         "Collateral Event of Default" has the meaning provided in the Security
Agreement.

         "Commitment" means, for each Lender, the obligation of such Lender to
make its Pro Rata Share of Advances to the Borrower in an aggregate amount not
exceeding the Loan Amount.

         "Control" means in (i) in the case of a corporation, ownership,
directly or through ownership of other entities, of at least ten percent (10%)
of all the voting stock (exclusive of stock which is voting only as required by
applicable law or in the event of nonpayment of dividends and pays dividends
only on a nonparticipating basis at a fixed or floating rate), and (ii) in the
case of any other entity, ownership, directly or through ownership of other
entities, of at least ten percent (10%) of all of the beneficial equity
interests therein (calculated by a method that excludes from equity interests,
ownership interests that are nonvoting (except as required by applicable law or
in the event of nonpayment of dividends or distributions) and pay dividends or
distributions only on a non-participating basis at a fixed or floating rate) or,
in any case, (iii) the power directly or indirectly, to direct or control, or
cause the direction of, the management policies of another Person, whether
through the ownership of voting securities, general partnership interests,
common directors, trustees, officers by contract or otherwise. The terms

                                       3
<PAGE>

"controlled" and "controlling" shall have meanings correlative to the foregoing
definition of "Control."

         "Controlled Group" means all members of a controlled group of
corporations or other business entities and all trades or businesses (whether or
not incorporated) under common control which, together with the Borrower, the
Partnership, the REIT or any of its Subsidiaries, are treated as a single
employer under Section 414 of the Code.

         "Conversion/Continuation Notice" is defined in Section 2.2.4.

         "Default" means an event described in Article VII.

         "Determination Date" means the date that is two Business Days prior to
the first day of each Interest Period.

         "Distribution" means any dividends (other than a dividend payable
solely in common stock), distributions, return of capital to any stockholders,
general or limited partners or members, other payments, distributions or
delivery of property or cash to stockholders, general or limited partners or
members, or any redemption, retirement, purchase or other acquisition, directly
or indirectly, of any shares of any class of capital stock now or hereafter
outstanding (or any options or warrants issued with respect to capital stock)
general or limited partnership interest, or the setting aside of any funds for
the foregoing.

         "Dollars" and the symbol "$" each mean the lawful money of the United
States of America.

         "Environmental Indemnity" means that certain environmental indemnity
agreement dated the date hereof given by the Partnership and the REIT to the
Agent for the benefit of the Lenders, as the same may be supplemented or amended
from time to time.

         "Environmental Laws" has the meaning set forth in the Environmental
Indemnity.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any rule or regulation issued thereunder.

         "Eurodollar Advance" means an Advance which bears interest at a
Eurodollar Rate as requested by the Borrower pursuant to Section 2.2.

         "Eurodollar Base Rate" means, with respect to a Eurodollar Advance for
the relevant Interest Period, the quoted offered rate for one, two or three
month, as applicable, United States dollar deposits with leading banks in the
London interbank market that appears as of 11:00 a.m. (London time) on the
related Determination Date on the display page designated as Telerate Page 3750.

                  If, as of such time on any Determination Date, no quotation is
given on Telerate Page 3750, then the Agent shall establish the Eurodollar Base
Rate on set forth herein to provide the quotation offered by its principal
London office for making one, two or three month, as applicable, United

                                       4
<PAGE>
States dollar deposits with leading banks in the London interbank market as of
11:00 a.m., London time, on such Determination Date.

         (i) If two or more Reference Banks provide such offered quotations,
then the Eurodollar Base Rate for the next Interest Period shall be the
arithmetic mean of such offered quotations (rounded upward if necessary to the
nearest whole multiple of 1/1,000%).

         (ii) If only one or none of the Reference Banks provides such offered
quotations, then the Eurodollar Base Rate for the next Interest Period shall be
the Reserve Rate.

         (iii) If on any Determination Date, Lender is required but is unable to
determine the Eurodollar Base Rate in the manner provided in paragraphs (i) and
(ii) above, the Eurodollar Base Rate for the next Interest Period shall be the
Eurodollar Base Rate as determined on the preceding Determination Date.

                  The establishment of the Eurodollar Base Rate on each
Determination Date by the Lender shall be final and binding.

         "Eurodollar Loan" means the portion or portions of the Loan which bears
interest at a Eurodollar Rate.

         "Eurodollar Rate" means, with respect to a Eurodollar Advance for each
Interest Period, a rate per annum equal to the sum of (i) the Eurodollar Base
Rate (or, if any Lender is subject to Reserve Requirements, the Adjusted
Eurodollar Base Rate) applicable to such Interest Period (expressed as a
decimal) plus (ii) the Applicable Margin.

         "Excluded Taxes" means, in the case of each Lender or applicable
Lending Installation and the Agent, taxes imposed on its overall net income, and
franchise taxes imposed on it, by (i) the jurisdiction under the laws of which
such Lender or the Agent is incorporated or organized or (ii) the jurisdiction
in which the Agent's or such Lender's principal executive office or such
Lender's applicable Lending Installation is located.

         "Exhibit" refers to an exhibit to this Agreement, unless another
document is specifically referenced.

         "Existing Line of Credit" means that certain Credit Agreement dated
July 3, 2002 between the Partnership, the REIT and Bank One, N.A. and other
Lenders that are signatories thereto, as amended by that certain First Amendment
dated September 30, 2002 as the same may be amended from time to time, a copy of
which is attached hereto as Schedule I.

         "Federal Funds Effective Rate" means, for any day, an interest rate per
annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a
Business Day, for the immediately preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations at approximately 10:00 a.m. (New
York City) on such day on such transactions received by the Agent from three
Federal funds brokers of recognized standing selected by the Agent in its sole
discretion.

                                       5
<PAGE>

         "Floating Rate" means, for any day, a rate per annum equal to (i) the
Base Rate for such day plus (ii) the Applicable Margin, in each case changing
when and as the Base Rate changes.

         "Floating Rate Advance" means an Advance which, except as otherwise
provided in Section 2.9, bears interest at the Floating Rate.

         "Floating Rate Loan" means the portion of the Loan which, except as
otherwise provided in Section 2.9, bears interest at the Floating Rate.

         "Fund" means any Person (other than a natural person) that is (or will
be) engaged in making, purchasing, holding or otherwise investing in commercial
loans and similar extensions of credit in the ordinary course of its business.

         "Guarantors" means the REIT and the Partnership.

         "Guaranty" means that certain Guaranty dated the date hereof made by
the REIT and the Partnership in favor of Agent for the ratable benefit of the
Lenders, as it may be amended or modified and in effect from time to time.

         "Initial Advance" is defined in Section 2.1.1.

         "Intercreditor Agreements" shall mean those certain Intercreditor
Agreements between Borrowers and the Subordinate Mortgagees as more fully
described on Schedule II.

          "Interest Period" means with respect to a Eurodollar Advance, a period
of one, two, or three months commencing on the date of an Advance. Such Interest
Period shall end on the day which corresponds numerically to such date one, two,
or three months (as applicable) thereafter, provided, however, that if there is
no such numerically corresponding day in such next, second, or third, succeeding
month (as applicable), such Interest Period shall end on the last Business Day
of such next, second, or third, succeeding month (as applicable). If an Interest
Period would otherwise end on a day which is not a Business Day, such Interest
Period shall end on the next succeeding Business Day, provided, however, that if
said next succeeding Business Day falls in a new calendar month, such Interest
Period shall end on the immediately preceding Business Day. If requested by the
Borrower and agreed to by all Lenders in their sole discretion, a Eurodollar
Interest Period may be a period of less than one month.

         "Lenders" means Lehman Commercial Paper Inc. the lending institutions
listed on the signature pages of this Agreement, if any, any New Lender, and
their respective successors and assigns.

         "Lending Installation" means, with respect to a Lender or the Agent,
the office, branch, subsidiary or affiliate of such Lender or the Agent listed
on the signature pages hereof or on a Schedule or otherwise selected by such
Lender or the Agent pursuant to Section 2.15.

         "Lien" means any lien (statutory or other), mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including, without limitation, the

                                       6
<PAGE>

interest of a vendor or lessor under any conditional sale, or other title
retention agreement), or any encumbrance, easement, or similar restriction or
covenant.

         "Line of Credit Agent" shall mean the agent under the Existing Line of
Credit

         "Loan" means, the aggregate Advances made to Borrower pursuant to the
terms of this Agreement.

         "Loan Amount" means the maximum principal amount of $48,000,000.00.

         "Loan Documents" means this Agreement, the Note, the Guaranty, the
Environmental Indemnity, the Security Agreement, the Collateral Assignment, the
UCC Financing Statements, and any other documents or instruments evidencing,
securing or guaranteeing the Loan.

         "Material Adverse Effect" means any condition which causes or continues
the occurrence of a Default or has a material adverse effect upon (i) the
business, operations, properties, assets, prospects, corporate structure or
condition (financial or otherwise) of the Borrowers, the Partnership, or the
REIT, taken as a whole, (ii) the ability of the Borrowers, the Partnership, or
the REIT to perform any of the Obligations, or (iii) the validity or
enforceability of any of the Loan Documents or the rights or remedies of the
Agent, or the Lenders thereunder.

         "Maturity Date" means March 10, 2003, or such other date on which the
final payment of the principal of the Note becomes due and payable as therein or
herein provided, whether at such stated maturity date, by declaration of
acceleration, or otherwise

         "Moody's" means Moody's Investors Service, Inc.

         "Mortgaged Properties" means the real property set forth on Schedule
III hereto, which are subject to the Liens of the Pledged Assets.

         "Mortgagors" means those entities set forth on Schedule IV hereto that
own the fee interest in the Mortgaged Properties, and their successors and
assigns.

         "New Lender" means a Person, approved by the Agent, that becomes a
Lender hereunder pursuant to the provisions of Section 2.5.4.

         "Non-U.S. Lender" is defined in Section 3.5(iv).

         "Note" means that certain note dated the date hereof in the principal
amount of $48,000,000.00 or so much thereof as may be advanced pursuant to this
Agreement and any notes issued at the request of a Lender pursuant to Section
2.11 to evidence its Pro Rata share of the Loan.

         "Obligations" means all unpaid principal of and accrued and unpaid
interest on the Loans, obligations to fund required reserves, all accrued and
unpaid fees and all expenses, reimbursements, indemnities and other obligations
of the Borrower to the Lenders or to any Lender, the Agent, or any indemnified
party arising under the Loan Documents.

                                       7
<PAGE>

         "Other Assets" means all Assets of a Person that are not Real Property
Assets.

         "Other Taxes" is defined in Section 3.5(ii).

         "Outstanding Credit Exposure" means, as to any Lender at any time, such
Lender's Pro Rata Share of the aggregate outstanding principal balance of the
Loan.

         "Participants" is defined in Section 12.2.1.

         "Payment Date" means the first day of each calendar month.

         "Permitted Liens" is defined in Section 6.25.

         "Person" means any natural person, corporation, firm, joint venture,
partnership, limited liability company, association, enterprise, trust or other
entity or organization, or any government or political subdivision or any
agency, department or instrumentality thereof.

         "Pledged Assets" means those certain mortgage loans set forth on
Schedule V hereto.

         "Pledged Asset Documents" means all of (i) the Pledged Notes, (ii) the
Pledged Mortgages and (iii) the related loan documents in connection with the
Pledged Assets, the Mortgagors and the Mortgaged Properties as more particularly
set forth on Schedule VI hereto and as described in the Security Agreement.

         "Pledged Mortgages" shall mean the senior mortgages that have been
pledged to Agent and are more fully described on Schedule VII.

         "Pledged Notes" shall mean those certain promissory notes that have
been pledged to Agent and are more fully described in Schedule VIII.

         "Pro Rata Share" means, with respect to a Lender, a portion equal to a
fraction the numerator of which is such Lender's Commitment and the denominator
of which is the Aggregate Commitment.

         "Purchase Option" means that certain purchase option held by Sun/Forest
LLC with respect to the Mortgaged Properties in accordance with that certain
Operating Agreement of Sunchamp LLC, a Michigan limited liability company, dated
October 8, 1999, as amended by Amendment effective October 8, 1999.

         "Purchasers" is defined in Section 12.3.1.

         "Rating Agencies" means both Standard & Poor's Ratings Services and
Moody's Investor Service, Inc. If either of such agencies discontinues its
rating of the Borrower or its ratings of real estate investment trusts
generally, the Agent and the Required Lenders shall, within six (6) months of
such discontinuance, determine another nationally recognized statistical ratings
agency that assigns a rating to the Partnership (a "Substitute Rating Agency"),
and the term Rating Agencies shall include such Substitute Rating Agency. During
any time that only

                                       8
<PAGE>

one Rating Agency is assigning a rating to the Partnership, that Rating Agency's
rating shall be used for all calculations under this Agreement.

         "Regulation D" means Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor thereto
or other regulation or official interpretation of said Board of Governors
relating to reserve requirements applicable to member banks of the Federal
Reserve System.

         "Regulation U" means Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by banks for the purpose of purchasing or carrying margin
stocks applicable to member banks of the Federal Reserve System.

         "REIT" means Sun Communities, Inc., a Maryland corporation.

         "Required Lenders" means Lenders in the aggregate having at least
66-2/3% of the Aggregate Commitment or, if the Aggregate Commitment has been
terminated, Lenders in the aggregate holding at least 66-2/3% of the aggregate
unpaid principal amount of the Aggregate Outstanding Credit Exposure.
Notwithstanding the foregoing, if there is only one Lender, Required Lenders
shall mean that Lender.

         "Reserve Rate" means the rate per annum which Agent determines to be
either (i) the arithmetic mean (rounded upwards if necessary to the nearest
whole multiple of 1/1,000%) of the one, two or three month United States dollar
lending rates that at least three major New York City banks selected by Lender
are quoting, at 11:00 a.m. (New York time) on the relevant Determination Date,
to the principal London offices of at least two of the Reference Banks, or (ii)
in the event that at least two such rates are not obtained, the lowest one-month
United States dollar lending rate which New York City banks selected by Lender
are quoting as of 11:00 a.m. (New York time) on such Determination Date to
leading European banks.

         "Reserve Requirement" means, with respect to an Interest Period, the
maximum aggregate reserve requirement (including all basic, supplemental,
marginal and other reserves) which is imposed under Regulation D on Eurocurrency
liabilities.

         "Schedule" refers to a specific schedule to this Agreement, unless
another document is specifically referenced.

         "Second Advance" is defined in Section 2.1.1.

         "Section" means a numbered section of this Agreement, unless another
document is specifically referenced.

         "Security Agreement" means those certain pledge and security agreements
each dated the date hereof between Borrowers, Agent and Lenders in the aggregate
principal amount of $48,000,000.00 pursuant to which Borrower has pledged to
Lender and granted Lender a security interest in the Pledged Assets.

                                       9
<PAGE>

         "Subordinate Mortgagees" shall mean Sun Communities Texas Mezzanine
Lender Limited Partnership and Sun Communities Mezzanine Lender, the holders of
the Subordinate Mortgages.

          "Subordinate Mortgages" shall mean those subordinate mortgages
encumbering the Mortgaged Properties as more specifically described on Schedule
IX.

         "Subsidiary" of a Person means (i) any corporation more than 50% of the
outstanding securities having ordinary voting power of which shall at the time
be owned or controlled, directly or indirectly, by such Person or by one or more
of its Subsidiaries or by such Person and one or more of its Subsidiaries, or
(ii) any partnership, limited liability company, association, joint venture or
similar business organization more than 50% of the ownership interests having
ordinary voting power of which shall at the time be so owned or controlled.
Unless otherwise expressly provided, all references herein to a "Subsidiary"
shall mean a Subsidiary of the Borrower.

         "Substitute Rating Agency" is defined in the definition of "Rating
Agencies."

         "Sun Financial" means Sun Financial, LLC, a Michigan limited liability
company.

         "Sun LP" means Sun Financial Texas Limited Partnership, a Michigan
limited partnership.

         "Taxes" means any and all present or future taxes, duties, levies,
imposts, deductions, charges or withholdings, and any and all liabilities with
respect to the foregoing, but excluding Excluded Taxes and Other Taxes.

         "Title Policies" shall mean the lender's title insurance policies
insuring the Liens of the Pledged Mortgages on the Mortgaged Properties.

          "Transfer Documents" means the various assignment documents, allonges
and related documents set forth on Schedule X with respect to the transfer of
the Pledged Assets and the Pledged Asset Documents to Lender.

         "Transferee" is defined in Section 12.4.

         "Type" means a Eurodollar Advance or a Floating Rate Advance.

         "UCC" or "Uniform Commercial Code" means the Uniform Commercial Code as
in effect in the State in which each Borrower is organized and has where each
Property is located.

         "UCC Financing Statements" means UCC-l financing statements signed by
Borrower, as debtor, naming Agent, as secured party, and filed in the
appropriate offices of the jurisdictions where each Borrower is organized (each,
a "UCC Financing Statement").

         "UCC Searches" is defined in Section 4.2.8.

                                       10
<PAGE>

         "Unmatured Default" means an event which but for the lapse of time or
the giving of notice, or both, would constitute a Default.

         "Unsecured Debt Rating" means with respect to a Person, the rating
assigned by the Rating Agencies to such Person's long term unsecured debt
obligations.

         The foregoing definitions shall be equally applicable to both the
singular and plural forms of the defined terms.

                                   ARTICLE II
                                  THE TERM LOAN

         2.1. The Loan.

                  2.1.1. Advances. (i) Subject to and upon the terms and
         conditions herein set forth each Lender severally agrees, in accordance
         with the terms of this Agreement to make its Pro Rata Share of the
         initial Advance of $18,000,000.00 (the "Initial Advance") on or before
         October 15, 2002 and, thereafter, but prior to November 1, 2002 (the
         "Second Funding Date"), to make its Pro Rata Share of the second
         Advance not to exceed $30,000,000.00 (the "Second Advance") to
         Borrowers, which Advances shall not exceed, in the aggregate principal
         amount at any time outstanding, the Loan Amount.

                           (ii) Advances that have been prepaid pursuant to the
                  provisions of this Agreement, including, without limitation,
                  Section 2.7 may not be re-borrowed. All outstanding Advances
                  shall mature on the Maturity Date, without further action on
                  the part of Agent or any Lender.

                           (iii) Each Advance (other than an Advance on a date
                  that is not a Payment Date) shall be a Eurodollar Advance
                  (unless at the time of such Advance the Eurodollar Advances
                  are not available pursuant to Section 3.3).

                  2.1.2. Intentionally Deleted.

                  2.1.3. Intentionally Deleted.

                  2.1.4. Repayment of Facility. The aggregate outstanding
         principal balance of the Loan, together with all accrued and unpaid
         interest thereon, and all other unpaid Obligations shall be paid in
         full by the Borrowers on the Maturity Date.

         2.2. Advances.

                  2.2.1. Advances. Each Advance hereunder shall consist of Loans
         made from the several Lenders ratably according to their Pro Rata
         Shares.

                  2.2.2. Intentionally Deleted.

                  2.2.3. Method of Selecting Interest Periods for Advances. The
         Borrowers shall select the Interest Period applicable to each
         Eurodollar Advance from time to time.

                                       11
<PAGE>

         The Borrowers shall give the Agent irrevocable notice (a "Borrowing
         Notice") not later than 10:00 a.m. (New York time) at least three
         Business Days before the Borrowing Date for each Eurodollar Advance. A
         Borrowing Notice shall specify:

                           (i) the Borrowing Date, which shall be a Business
                  Day, of such Advance,

                           (ii) the aggregate amount of such Advance, and

                           (iii) in the case of each Eurodollar Advance, the
                  Interest Period applicable thereto (which may not end after
                  the Maturity Date).

                  2.2.4. Conversion and Continuation of Outstanding Advances.
         Each Eurodollar Advance shall continue as a Eurodollar Advance until
         the end of the then applicable Interest Period therefor, at which time
         such Eurodollar Advance shall be automatically converted into a
         Eurodollar Advance with an Interest Period of one month unless (x) such
         Eurodollar Advance is or was repaid in accordance with Section 2.7 or
         (y) the Borrowers shall have given the Agent a Conversion/Continuation
         Notice requesting that, at the end of such Interest Period, such
         Eurodollar Advance continue as a Eurodollar Advance for the same or
         another Interest Period or (z) Eurodollar Advances are not then
         available pursuant to Section 3.3, in which case it shall be
         automatically converted to a Floating Rate Advance in accordance with
         Section 3.3. Subject to the terms of Section 2.6 and 3.3, the Borrower
         may elect from time to time to convert all or any part of a Floating
         Rate Advance into a Eurodollar Advance. The Borrowers shall give the
         Agent irrevocable notice (a "Conversion/Continuation Notice") of each
         conversion of a Floating Rate Advance into a Eurodollar Advance, or
         continuation of a Eurodollar Advance, not later than 10:00 a.m. (New
         York time) at least three Business Days prior to the date of the
         requested conversion or continuation, specifying:

                           (i) the requested date, which shall be a Business
                  Day, of such conversion or continuation,

                           (ii) the aggregate amount of the Advance which is to
                  be converted or continued, and

                           (iii) the amount of such Advance(s) which is to be
                  converted or continued as a Eurodollar Advance and the
                  duration of the Interest Period applicable thereto.

         2.3. Intentionally Deleted.

         2.4. Method of Borrowing. Not later than 1:00 p.m. (New York City time)
on each Borrowing Date, each Lender shall make available its Loan or Loans in
funds immediately available in New York City to the Agent at its address
specified pursuant to Article XIII. The Agent will make the funds so received
from the Lenders available to the Borrowers at the Agent's aforesaid address.

         2.5. Intentionally Deleted.

                                       12
<PAGE>

         2.6. Minimum Amount of Each Advance. Each Eurodollar Advance shall be
in the minimum amount of $1,000,000 and in multiples of $100,000 if in excess
thereof). The Borrowers shall not request a Eurodollar Advance if, after giving
effect to the requested Eurodollar Advance, more than six separate Eurodollar
Advances would be outstanding.

         2.7. Optional Principal Payments. The Borrowers may from time to time
pay, without penalty or premium, all outstanding Floating Rate Advances, or, in
a minimum aggregate amount of $500,000 or any integral multiple of $100,000
excess thereof, any portion of the outstanding Floating Rate Advances upon three
Business Days' prior notice to the Agent. The Borrowers may from time to time
pay, subject to the payment of any funding indemnification amounts required by
Section 3.4 but without penalty or premium, all outstanding Eurodollar Advances
or, in a minimum aggregate amount of $500,000 or any integral multiple of
$100,000 in excess thereof, any portion of the outstanding Eurodollar Advances
upon three Business Days' prior notice to the Agent.

         2.8. Changes in Interest Rate, etc. Each Floating Rate Advance shall
bear interest on the outstanding principal amount thereof, for each day from and
including the date such Advance is made or is converted from a Eurodollar
Advance into a Floating Rate Advance pursuant to Section 3.3 to but excluding
the date it becomes due or is converted into a Eurodollar Advance pursuant to
Section 2.2.4 hereof, at a rate per annum equal to the Floating Rate for such
day. Changes in the rate of interest on that portion of any Advance maintained
as a Floating Rate Advance will take effect simultaneously with each change in
the Base Rate. Each Eurodollar Advance shall bear interest on the outstanding
principal amount thereof from and including the first day of the Interest Period
applicable thereto to (but not including) the last day of such Interest Period
at the Eurodollar Rate as applicable to such Eurodollar Advance. No Interest
Period may end after the Maturity Date.

         2.9. Rates Applicable After Default. Notwithstanding anything to the
contrary contained in Section 2.2.3, Section 2.2.4 or 2.8, during the
continuance of a Default or Unmatured Default the Required Lenders may, at their
option, by notice to the Borrowers (which notice may be revoked at the option of
the Required Lenders notwithstanding any provision of Section 8.2 requiring
unanimous consent of the Lenders to changes in interest rates), declare that no
Advance may be made as, converted into or continued as a Eurodollar Advance.
During the continuance of a Default the Required Lenders may, at their option,
by notice to the Borrowers (which notice may be revoked at the option of the
Required Lenders notwithstanding any provision of Section 8.2 requiring
unanimous consent of the Lenders to changes in interest rates), declare that (i)
each Eurodollar Advance shall bear interest for the remainder of the applicable
Interest Period at the rate otherwise applicable to such Interest Period plus
four percent (4%) per annum, and (ii) each Floating Rate Advance shall bear
interest at a rate per annum equal to the Floating Rate otherwise applicable to
the Floating Rate Advance plus four percent (4%) per annum, provided that,
during the continuance of a Default under Section 7.5 or 7.6, the interest rates
set forth in clauses (i) and (ii) above shall be applicable to all Advances
without any election or action on the part of the Agent or any Lender.

         2.10. Method of Payment. All payments of the Obligations hereunder
shall be made, without setoff, deduction, or counterclaim, in immediately
available funds to the Agent at the Agent's address specified pursuant to
Article XIII, or at any other Lending Installation of the

                                       13
<PAGE>

Agent specified in writing by the Agent to the Borrowers, by noon (local time)
on the date when due and shall be applied ratably by the Agent among the
Lenders. Each payment delivered to the Agent for the account of any Lender shall
be delivered promptly by the Agent to such Lender in the same type of funds that
the Agent received at its address specified pursuant to Article XIII or at any
Lending Installation specified in a notice received by the Agent from such
Lender. If the Agent fails to deliver to any Lender, within one Business Day of
the Agent's receipt thereof, funds received by Agent for the account of such
Lender, the Agent shall pay to such Lender interest on such funds, at the
Federal Funds Effective Rate for each day thereafter until such funds are
delivered to such Lender.

         2.11. The Note. (a) Borrowers' obligation to pay the principal of, and
interest on, the Loan shall be evidenced by the promissory note (as amended,
modified, supplemented, extended or consolidated, the "Note") duly executed and
delivered by Borrowers substantially in the form of Exhibit A hereto in a
principal amount equal to the Loan Amount, with blanks appropriately completed
in conformity herewith. The Note shall (i) be payable to the order of Agent, and
the Lenders, (ii) be dated the Closing Date, and (iii) mature on the Maturity
Date. If required by a Lender, Borrowers hereby agree to execute a supplemental
Note in the principal amount of such Lender's Pro Rata Share of the Loan Amount
substantially in the form of Exhibit A hereto, with blanks appropriately
completed, and such supplemental Note shall (i) be payable to order of such
Lender, (ii) be dated as of the Closing Date, and (iii) mature on the Maturity
Date. Such supplemental Note shall provide that it evidences a portion of the
existing indebtedness hereunder and not any new or additional indebtedness of
Borrowers.

                  (b) Agent is hereby authorized, at its option, (i) to endorse
on the schedule attached to each Note (or on a continuation of such schedule
attached to each such Note and made a part thereof) an appropriate notation
evidencing the date and amount of each Advance evidenced thereby and the Pro
Rata Share thereof of each Lender, and the date and amount of each principal and
interest payment in respect thereof, and/or (ii) to record such Advances and
such payments in its books and records. Such schedule or such books and records,
as the case may be, shall be conclusive and binding on Borrower absent manifest
error, provided that the failure to make any notation shall not affect the
obligations of Borrowers, or the rights of any Lender hereunder.

         2.12. Telephonic Notices. The Borrowers hereby authorize the Lenders
and the Agent to extend, convert or continue Advances, effect selections of
Types of Advances, and to transfer funds based on telephonic notices made by any
person or persons the Agent or any Lender in good faith believes to be acting on
behalf of the Borrowers, it being understood that the foregoing authorization is
specifically intended to allow Borrowing Notices, and Conversion/Continuation
Notices to be given telephonically. The Borrowers agree to deliver promptly to
the Agent a written confirmation, if such confirmation is requested by the Agent
or any Lender, of each telephonic notice signed by an Authorized Officer. If the
written confirmation differs in any material respect from the action taken by
the Agent and the Lenders, the records of the Agent and the Lenders shall govern
absent manifest error.

         2.13. Payment Dates; Interest and Fee Basis. Interest accrued on each
Advance shall be payable on each Payment Date, commencing with the first such
date to occur after the date hereof, on any date on which the Advance is
prepaid, whether due to acceleration or otherwise,

                                       14
<PAGE>

and at maturity. Interest and fees hereunder shall be calculated on the basis of
the actual number of days elapsed in a 360-day year. Interest shall be payable
for the day an Advance is made but not for the day of any payment on the amount
paid if payment is received prior to noon (local time) at the place of payment.
If any payment of principal of or interest on an Advance, or any payments of
fees, shall become due on a day which is not a Business Day, such payment shall
be made on the next succeeding Business Day and, in the case of a principal
payment, such extension of time shall be included in computing interest in
connection with such payment.

         2.14. Notification of Advances, Interest Rates and Prepayments.
Promptly after receipt thereof, the Agent will notify each Lender of the
contents of each Borrowing Notice and Conversion/Continuation Notice and
repayment notice received by it hereunder. The Agent will notify each Lender of
the interest rate applicable to each Eurodollar Advance promptly upon
determination of such interest rate and if applicable will give each Lender
prompt notice of each change in the Base Rate.

         2.15. Lending Installations. Each Lender may book its Loans at any
Lending Installation selected by such Lender, as the case may be, and may change
its Lending Installation from time to time. All terms of this Agreement shall
apply to any such Lending Installation, and the Loans, and any Notes issued
hereunder shall be deemed held by each Lender, as the case may be, for the
benefit of any such Lending Installation. Each Lender may, by written notice to
the Agent and the Borrowers in accordance with Article XIII, designate
replacement or additional Lending Installations through which Loans will be made
by it and for whose account Loan payments are to be made.

         2.16. Non-Receipt of Funds by the Agent. Unless a Borrower or a Lender,
as the case may be, notifies the Agent prior to the date on which it is
scheduled to make payment to the Agent of (i) in the case of a Lender, the
proceeds of a Loan or (ii) in the case of the Borrowers, a payment of principal,
interest or fees to the Agent for the account of the Lenders, that it does not
intend to make such payment, the Agent may assume that such payment has been
made. The Agent may, but shall not be obligated to, make the amount of such
payment available to the intended recipient in reliance upon such assumption. If
such Lender or a Borrower, as the case may be, has not in fact made such payment
to the Agent, the recipient of such payment shall, on demand by the Agent, repay
to the Agent the amount so made available together with interest thereon in
respect of each day during the period commencing on the date such amount was so
made available by the Agent until the date the Agent recovers such amount at a
rate per annum equal to (x) in the case of payment by a Lender, the Federal
Funds Effective Rate for such day for the first three days and, thereafter, the
interest rate applicable to the relevant Loan or (y) in the case of payment by
the Borrowers, the interest rate applicable to the relevant Loan.

         2.17. Joint and Several. The Borrowers shall be jointly and severally
liable for the payment and performance of all Obligations.

         2.18. Replacement of Lender. If the Borrowers are required pursuant to
Section 3.1, 3.2 or 3.5 to make any additional payment to any Lender (any Lender
so affected an "Affected Lender"), the Borrowers may elect, if such amounts
continue to be charged or such suspension is still effective, to replace such
Affected Lender as a Lender party to this Agreement, provided that no Default or
Unmatured Default shall have occurred and be continuing at the time of such

                                       15
<PAGE>

replacement, and provided further that, concurrently with such replacement, (i)
another bank or other entity which is reasonably satisfactory to the Agent shall
agree, as of such date, to purchase for cash the Advances and other Obligations
due to the Affected Lender pursuant to an assignment substantially in the form
of Exhibit B and to become a Lender for all purposes under this Agreement and to
assume all obligations of the Affected Lender to be terminated as of such date
and to comply with the requirements of Section 12.3 applicable to assignments,
and (ii) the Borrowers shall pay to such Affected Lender in same day funds on
the day of such replacement (A) all interest, fees and other amounts then
accrued but unpaid to such Affected Lender by the Borrowers hereunder to and
including the date of termination, including without limitation payments due to
such Affected Lender under Sections 3.1, 3.2 and 3.5, and (B) an amount, if any,
equal to the payment which would have been due to such Lender on the day of such
replacement under Section 3.4 had the Loans of such Affected Lender been prepaid
on such date rather than sold to the replacement Lender. At the request of the
Borrowers, the Agent will assist the Borrowers in identifying a bank or other
entity to replace an Affected Lender.

         2.19. Intentionally Deleted.

         2.20. Use of Proceeds and Limitations on Advances.

         The Borrowers shall use the proceeds of the Initial Advance for working
capital and the proceeds of the Second Advance to prepay a portion of the
Existing Line of Credit.

         2.21. Intentionally Deleted.

                                   ARTICLE III
                             YIELD PROTECTION; TAXES

         3.1. Yield Protection. If, on or after the date of this Agreement, the
adoption of any law or any governmental or quasi-governmental rule, regulation,
policy, guideline or directive (whether or not having the force of law), or any
change in the interpretation or administration thereof by any governmental or
quasi-governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender or
applicable Lending Installation with any request or directive (whether or not
having the force of law) of any such authority, central bank or comparable
agency:

         (i)      subjects any Lender or any applicable Lending Installation to
                  any Taxes, or changes the basis of taxation of payments (other
                  than with respect to Excluded Taxes) to any Lender in respect
                  of its Eurodollar Loans, or participations therein, or

         (ii)     imposes or increases or deems applicable any reserve,
                  assessment, insurance charge, special deposit or similar
                  requirement against assets of, deposits with or for the
                  account of, or credit extended by, any Lender or any
                  applicable Lending Installation (other than reserves and
                  assessments taken into account in determining the interest
                  rate applicable to Eurodollar Advances), or

         (iii)    imposes any other condition the result of which is to increase
                  the cost to any Lender or any applicable Lending Installation
                  of making, funding or maintaining

                                       16
<PAGE>

                  its Eurodollar Loans, or reduces any amount receivable by any
                  Lender or any applicable Lending Installation in connection
                  with its Eurodollar Loans, or participations therein, or
                  requires any Lender or any applicable Lending Installation to
                  make any payment calculated by reference to the amount of
                  Eurodollar Loans, or participations therein held or interest
                  received by it, by an amount deemed material by such Lender,

and the result of any of the foregoing is to increase the cost to such Lender or
applicable Lending Installation, as the case may be, of making or maintaining
its Eurodollar Loans or Commitment or to reduce the return received by such
Lender or applicable Lending Installation, as the case may be, in connection
with such Eurodollar Loans, Commitment, or participations therein, then, within
15 days of demand by such Lender, the Borrowers shall pay such Lender, such
additional amount or amounts as will compensate such Lender, as the case may be,
for such increased cost or reduction in amount received.

         3.2. Changes in Capital Adequacy Regulations. If any Lender determines
the amount of capital required or expected to be maintained by such Lender, any
Lending Installation of such Lender, or any corporation controlling such Lender
is increased as a result of a Change, then, within 15 days of demand by such
Lender, the Borrowers shall pay such Lender the amount necessary to compensate
for any shortfall in the rate of return on the portion of such increased capital
which such Lender determines is attributable to this Agreement, its Outstanding
Credit Exposure or its Commitment to make Loans, as the case may be, hereunder
(after taking into account such Lender's policies as to capital adequacy).
"Change" means (i) any change after the date of this Agreement in the Risk-Based
Capital Guidelines or (ii) any adoption of or change in any other law,
governmental or quasi-governmental rule, regulation, policy, guideline,
interpretation, or directive (whether or not having the force of law) after the
date of this Agreement which affects the amount of capital required or expected
to be maintained by any Lender or any Lending Installation or any corporation
controlling any Lender. "Risk-Based Capital Guidelines" means (i) the risk-based
capital guidelines in effect in the United States on the date of this Agreement,
including transition rules, and (ii) the corresponding capital regulations
promulgated by regulatory authorities outside the United States implementing the
July 1988 report of the Basle Committee on Banking Regulation and Supervisory
Practices Entitled "International Convergence of Capital Measurements and
Capital Standards," including transition rules, and any amendments to such
regulations adopted prior to the date of this Agreement.

         3.3. Availability of Types of Advances. If (a) any Lender determines
that maintenance of its Eurodollar Loans at a suitable Lending Installation
would violate any applicable law, rule, regulation, or directive, whether or not
having the force of law, or if (b) the Required Lenders determine that (i)
deposits of a type and maturity appropriate to match fund Eurodollar Ratable
Advances are not available or (ii) the interest rate applicable to Eurodollar
Advances does not accurately reflect the cost of making or maintaining
Eurodollar Advances, then the Agent shall, in the case of clause (a) above,
suspend the availability of Eurodollar Advances and require any affected

                                       17
<PAGE>
Eurodollar Advances to be repaid or converted to Floating Rate Advances, subject
to the payment of any funding indemnification amounts required by Section 3.4,
and, in the case of clause (b) above, suspend the availability of Eurodollar
Advances and require any affected Eurodollar Advances to be repaid or converted
to Floating Rate Advances, subject to payment of any funding indemnification
amounts required by Section 3.4.

         3.4.  Funding Indemnification. If any payment of a Eurodollar Advance
occurs on a date which is not the last day of the applicable Interest Period,
whether because of acceleration, prepayment or otherwise, or a Eurodollar
Advance is not made on the date specified by the Borrowers for any reason other
than default by the Lenders, the Borrowers will indemnify each Lender for any
loss or cost incurred by it resulting therefrom, including, without limitation,
any loss or cost in liquidating or employing deposits acquired to fund or
maintain such Eurodollar Advance.

         3.5.  Taxes.

         (i)   All payments by the Borrowers to or for the account of any
               Lender, or the Agent hereunder or under any Note shall be made
               free and clear of and without deduction for any and all Taxes. If
               the Borrowers shall be required by law to deduct any Taxes from
               or in respect of any sum payable hereunder to any Lender, or the
               Agent, (a) the sum payable shall be increased as necessary so
               that after making all required deductions (including deductions
               applicable to additional sums payable under this Section 3.5)
               such Lender, or the Agent (as the case may be) receives an amount
               equal to the sum it would have received had no such deductions
               been made, (b) the Borrowers shall make such deductions, (c) the
               Borrowers shall pay the full amount deducted to the relevant
               authority in accordance with applicable law and (d) the Borrowers
               shall furnish to the Agent the original copy of a receipt
               evidencing payment thereof within 30 days after such payment is
               made.

         (ii)  In addition, the Borrowers hereby agree to pay any present or
               future stamp or documentary taxes and any other excise or
               property taxes, charges or similar levies which arise from any
               payment made hereunder or under any Note or from the execution or
               delivery of, or otherwise with respect to, this Agreement or any
               Note ("Other Taxes").

         (iii) The Borrowers hereby agree to indemnify the Agent, and each
               Lender for the full amount of Taxes or Other Taxes (including,
               without limitation, any Taxes or Other Taxes imposed on amounts
               payable under this Section 3.5) paid by the Agent, or such Lender
               and any liability (including penalties, interest and expenses)
               arising therefrom or with respect thereto. Payments due under
               this indemnification shall be made within 30 days of the date the
               Agent, or such Lender makes demand therefor pursuant to Section
               3.6.

         (iv)  Each Lender that is not incorporated under the laws of the
               United States of America or a state thereof (each a "Non-U.S.
               Lender") agrees that it will, not more than ten Business Days
               after the date of this Agreement, (a) deliver to the Agent two
               duly completed copies of United States Internal Revenue Service
               Form W-8BEN or W-8ECI, certifying in either case that such Lender
               is entitled to receive payments under this Agreement without
               deduction or withholding of any

                                       18
<PAGE>

                  United States federal income taxes, and (b) deliver to the
                  Agent a United States Internal Revenue Form W-8 or W-9, as the
                  case may be, and certify that it is entitled to an exemption
                  from United States backup withholding tax. Each Non-U.S.
                  Lender further undertakes to deliver to each of the Borrower
                  and the Agent (x) renewals or additional copies of such form
                  (or any successor form) on or before the date that such form
                  expires or becomes obsolete, and (y) after the occurrence of
                  any event requiring a change in the most recent forms so
                  delivered by it, such additional forms or amendments thereto
                  as may be reasonably requested by the Borrowers or the Agent.
                  All forms or amendments described in the preceding sentence
                  shall certify that such Lender is entitled to receive payments
                  under this Agreement without deduction or withholding of any
                  United States federal income taxes, unless an event (including
                  without limitation any change in treaty, law or regulation)
                  has occurred prior to the date on which any such delivery
                  would otherwise be required which renders all such forms
                  inapplicable or which would prevent such Lender from duly
                  completing and delivering any such form or amendment with
                  respect to it and such Lender advises the Borrowers and the
                  Agent that it is not capable of receiving payments without any
                  deduction or withholding of United States federal income tax.

         (v)      For any period during which a Non-U.S. Lender has failed to
                  provide the Borrowers with an appropriate form pursuant to
                  paragraph (iv), above (unless such failure is due to a change
                  in treaty, law or regulation, or any change in the
                  interpretation or administration thereof by any governmental
                  authority, occurring subsequent to the date on which a form
                  originally was required to be provided), such Non-U.S. Lender
                  shall not be entitled to indemnification under this Section
                  3.5 with respect to Taxes imposed by the United States;
                  provided that, should a Non-U.S. Lender which is otherwise
                  exempt from or subject to a reduced rate of withholding tax
                  become subject to Taxes because of its failure to deliver a
                  form required under paragraph (iv), above, the Borrowers shall
                  take such steps as such Non-U.S. Lender shall reasonably
                  request to assist such Non-U.S. Lender to recover such Taxes.

         (vi)     Any Lender that is entitled to an exemption from or reduction
                  of withholding tax with respect to payments under this
                  Agreement or any Note pursuant to the law of any relevant
                  jurisdiction or any treaty shall deliver to the Borrowers
                  (with a copy to the Agent), at the time or times prescribed by
                  applicable law, such properly completed and executed
                  documentation prescribed by applicable law as will permit such
                  payments to be made without withholding or at a reduced rate.

         (vii)    If the U.S. Internal Revenue Service or any other governmental
                  authority of the United States or any other country or any
                  political subdivision thereof asserts a claim that the Agent
                  did not properly withhold tax from amounts paid to or for the
                  account of any Lender (because the appropriate form was not
                  delivered or properly completed, because such Lender failed to
                  notify the Agent of a change in circumstances which rendered
                  its exemption from withholding ineffective, or for any other
                  reason), such Lender shall indemnify the Agent fully for all
                  amounts paid, directly or indirectly, by the Agent as tax,
                  withholding therefor, or

                                       19
<PAGE>

                  otherwise, including penalties and interest, and including
                  taxes imposed by any jurisdiction on amounts payable to the
                  Agent under this subsection, together with all costs and
                  expenses related thereto (including attorneys fees and time
                  charges of attorneys for the Agent, which attorneys may be
                  employees of the Agent). The obligations of the Lenders under
                  this Section 3.5(vii) shall survive the payment of the
                  Obligations and termination of this Agreement.

         3.6. Lender Statements; Survival of Indemnity. To the extent reasonably
possible, each Lender shall designate an alternate Lending Installation with
respect to its Eurodollar Loans to reduce any liability of the Borrowers to such
Lender under Sections 3.1, 3.2 and 3.5 or to avoid the unavailability of
Eurodollar Advances under Section 3.3, so long as such designation is not, in
the judgment of such Lender, disadvantageous to such Lender. Each Lender shall
deliver a written statement of such Lender to the Borrowers (with a copy to the
Agent) as to the amount due, if any, under Section 3.1, 3.2, 3.4 or 3.5. Such
written statement shall set forth in reasonable detail the calculations upon
which such Lender determined such amount and shall be final, conclusive and
binding on the Borrowers in the absence of manifest error. Determination of
amounts payable under such Sections in connection with a Eurodollar Loan shall
be calculated as though each Lender funded its Eurodollar Loan through the
purchase of a deposit of the type and maturity corresponding to the deposit used
as a reference in determining the Eurodollar Rate, as the case may be,
applicable to such Loan, whether in fact that is the case or not. Unless
otherwise provided herein, the amount specified in the written statement of any
Lender shall be payable on demand after receipt by the Borrower of such written
statement. The obligations of the Borrowers under Sections 3.1, 3.2, 3.4 and 3.5
shall survive payment of the Obligations and termination of this Agreement.

                                   ARTICLE IV
                              CONDITIONS PRECEDENT

         4.1. Conditions Precedent to the Initial Advance. The obligation of the
Lenders to make the Initial Advance is subject to the satisfaction by the
Borrower on the Closing Date of the following conditions precedent:

                  4.1.1. Loan Documents.

                           (i) Agreement. The Borrowers, the Partnership and the
                  REIT shall have executed and delivered this Agreement to the
                  Agent.

                           (ii) The Note. The Borrowers shall have executed and
                  delivered to the Agent the Note.

                           (iii) Guaranty. The REIT and the Partnership shall
                  have executed and delivered to the Agent the Guaranty.

                           (iv) Security Agreement. Each Borrower shall have
                  executed and delivered to the Agent its respective Security
                  Agreement.

                           (v) Collateral Assignment. The Borrowers shall have
                  executed and delivered their respective Collateral Assignments
                  to Agent.

                                       20
<PAGE>

                           (vi) UCC Financing Statements. The Borrowers shall
                  have executed and delivered to the Agent the UCC Financing
                  Statements with respect to the Pledged Assets.

                           (vii) Environmental Indemnity. The Borrowers, the
                  Partnership and the REIT shall have executed and delivered to
                  the Agent the Environmental Indemnity.

                           (viii) Transfer Documents. The Borrowers shall have
                  executed and delivered to Agent the Transfer Documents.

                  4.1.2. Organizational Documents. The Agent shall have received
         (i) with respect to the REIT, the certificate of incorporation of the
         REIT, as amended, modified or supplemented to the Closing Date,
         certified to be true, correct and complete by the appropriate Secretary
         of State (or the equivalent thereof) as of a date not more than thirty
         (30) days prior to the Closing Date, together, in each case, with a
         good standing certificate from such Secretary of State (or the
         equivalent thereof) dated a date not more than thirty (30) days prior
         to the Closing Date, (ii) with respect to the Borrower that is a
         limited partnership and the Partnership, the agreement of limited
         partnership of such Person, as amended, modified or supplemented to the
         Closing Date, in the case of Sun LP, certified to be true, correct and
         complete by a general partner of such Person, together with a copy of
         the certificate of limited partnership of such Person, as amended,
         modified or supplemented to the Closing Date, certified to be true,
         correct and complete by the appropriate Secretary of State (or the
         equivalent thereof) as of a date not more than thirty (30) days prior
         to the Closing Date, and in the case of the Partnership, certified to
         be true, correct and complete by the general partner of the
         Partnership, together, in each case, with a good standing certificate
         from such Secretary of State (or the equivalent thereof) dated not more
         than thirty (30) days prior to the Closing Date, (iii) with respect to
         the Borrower that is a limited liability company, the certificate of
         formation or articles of organization of such Borrower, as amended,
         modified or supplemented to the Closing Date, certified to be true,
         correct and complete by the appropriate Secretary of State (or the
         equivalent thereof) as of a date not more than thirty (30) days prior
         to the Closing Date, together with a good standing certificate from the
         Secretary of State (or the equivalent thereof) of such State to be
         dated a date not more than thirty (30) days prior to the Closing Date.

                  4.1.3. Certified Resolutions, etc. The Agent shall have
         received (i) a certificate of the secretary or assistant secretary of
         the REIT dated the Closing Date, certifying (a) the names and true
         signatures of the incumbent officers of the REIT authorized to sign the
         applicable Loan Documents, (b) the by-laws of the REIT as in effect on
         the Closing Date, (c) the resolutions of the REIT's board of directors
         approving and authorizing the execution, delivery and performance of
         all Loan Documents executed by the REIT either in its own capacity or
         as a partner or member of the Borrowers and the Partnership, and (d)
         that there have been no changes in the certificate of incorporation of
         such Person since the date of the most recent certification thereof by
         the appropriate Secretary of State and (ii) with respect to the
         Borrowers and the Partnership, comparable

                                       21
<PAGE>

         certificates evidencing appropriate approvals, consents and authority
         with respect to the execution and delivery of the Loan Documents by
         Borrower, and the Partnership.

                  4.1.4. Intentionally Deleted.

                  4.1.5. Rating Agencies. The Borrower shall have delivered
         evidence satisfactory to the Agent that the Partnership's Unsecured
         Debt Rating is BBB- or higher as assigned by Standard & Poor's Ratings
         Services and Baa3 or higher as assigned by Moody's Investor Service,
         Inc.

                  4.1.6. Financial Statements. The Agent shall have received the
         consolidated audited financial statements of the Partnership and the
         REIT for the most recently ended fiscal year of the Partnership and the
         REIT and the unaudited consolidated financial statements of the
         Partnership and the REIT for each fiscal quarter of the Partnership and
         the REIT ending since the end of such entity's most recent fiscal year.
         Such financial statements shall be reasonably acceptable to the Agent
         and all of the Lenders, and each such statement shall be certified by a
         general partner or senior executive officer of the Partnership and the
         REIT that, as of the Closing Date, there has been no material adverse
         change in the financial condition of the Partnership or the REIT since
         the date thereof.

                  4.1.7. Pledged Assets. The Agent shall have received originals
         of all of the Pledged Asset Documents.

                  4.1.8. Insurance. The Agent shall have received insurance
         certificates reasonably satisfactory to Agent showing that the
         insurance coverage required under the Pledged Asset Documents for the
         Mortgaged Properties is in full force and effect.

                  4.1.9. Opinion. The Agent shall have received an opinion of
         the Borrower's and Guarantors' counsel with respect to the due
         execution and enforceability and the Loan Documents in form and
         substance reasonably satisfactory to Agent.

                  4.1.10. Fees. The Agent shall have received the fee provided
         for in the fee letter dated October 10, 2002 among the Borrower, the
         Guarantors, the Agent and Lehman Brothers Inc.

                  4.1.11. Additional Matters. The Agent shall have received such
         other certificates, opinions, documents and instruments relating to the
         transactions under this Agreement as may have been reasonably requested
         by the Agent or any of the Lenders, and all corporate and other
         proceedings and all other documents (including, without limitation,
         evidence of zoning compliance, leases, contracts and agreements
         relating to the ownership, management, leasing and operation of the
         Unencumbered Assets and all other documents referred to herein and not
         appearing as exhibits hereto) and all legal matters in connection with
         this Agreement shall be reasonably satisfactory in form and substance
         to the Agent and all of the Lenders.

         4.2. Conditions Precedent to all Advances. The Lenders will not be
required to make their Pro Rata Share of the Initial Advance or of the Second
Advance unless on the applicable Borrowing Date:

                                       22
<PAGE>

                  4.2.1. No Default. There exists no Default or Unmatured
         Default.

                  4.2.2. Representations and Warranties. The representations and
         warranties contained in Article V are true and correct as of such
         Borrowing Date except to the extent any such representation or warranty
         is stated to relate solely to an earlier date, in which case such
         representation or warranty shall have been true and correct on and as
         of such earlier date.

                  4.2.3. Legal Matters. All legal matters incident to the making
         of such Advance shall be satisfactory to the Lenders and their counsel.

                  4.2.4. No Injunction. No law or regulation shall have been
         adopted, no order, judgment or decree of any governmental authority
         shall have been issued, and no litigation shall be pending or
         threatened, which in the good faith judgment of the Agent would enjoin,
         prohibit or restrain, or impose or result in the imposition of any
         material adverse condition upon, the making of the Advance or the
         Borrower's obligation to pay (or the Agent or any Lender's rights to
         receive payment of) the Loan and the other Obligations or the
         consummation of the transactions under this Agreement.

                  4.2.5. No Material Adverse Change. No event, act or condition
         shall have occurred after the Closing Date which, in the reasonable
         judgment of the Agent, has had or would have a Material Adverse Effect.

                  4.2.6. Notice of Borrowing. The Agent shall have received a
         fully executed Borrowing Notice or Conversion/Continuation Notice, as
         the case may be, in respect of the Advance to be made on such date.

                  4.2.7. No Litigation. Except for matters identified on
         Schedule XI (as the same may be amended or supplemented), no actions,
         suits or proceedings shall be pending or threatened with respect to the
         Loan or the Loan Documents, the Borrower, the Pledged Assets or the
         Mortgaged Properties that could, in the aggregate, result in a Material
         Adverse Effect, and the matters identified on Schedule XI, in the
         aggregate, do not result in a Material Adverse Effect.

                  4.2.8. Intentionally Deleted.

                  4.2.9. Intentionally Deleted.

                  4.2.10. Additional Matters. The Agent shall have received such
         other certificates, opinions, documents and instruments relating to the
         Loan as may have been reasonably requested by the Agent or any of the
         Lenders and all corporate and other proceedings and all other documents
         (including, without limitation, all documents referred to herein and
         not appearing as exhibits hereto) and all legal matters in connection
         with the Loan shall be satisfactory in form and substance to the Agent
         and the Required Lenders.

         Each Borrowing Notice, shall constitute a representation and warranty
by the Borrower that the conditions contained in Sections 4.2.1 and 4.2.2 have
been satisfied.

                                       23

<PAGE>
         4.3. Number and Funding of Advances. The Borrower shall only have the
right to request the Initial Advance and the Second Advance. If the Borrower
requests an Advance for less than the maximum amount of the Second Advance, it
shall have no right to request the balance of the Second Advance thereafter. If
the Initial Advance and the Second Advance have not been made on or prior to the
Second Funding Date, Borrower shall have no right to request any Advances under
the Loan and the Lenders shall have no obligation to make any Advances under the
Loan.

                                    ARTICLE V
                         REPRESENTATIONS AND WARRANTIES

         In order to induce the Agent and the Lenders to enter into this
Agreement and to make the Loan and the Advances hereunder, the Borrower, the
Partnership and the REIT make the following representations and warranties,
which shall survive the execution and delivery of this Agreement and the Notes
and the making of each Advance:

         5.1. Existence and Standing. Each of the Borrower, the Partnership and
the REIT is a corporation, partnership or limited liability company duly and
properly incorporated or organized, as the case may be, validly existing and (to
the extent such concept applies to such entity) in good standing under the laws
of its jurisdiction of incorporation or organization and has all requisite
authority to conduct its business in each jurisdiction in which its business is
conducted.

         5.2. Authorization and Validity. Each of the Borrower, the Partnership
and the REIT has the power and authority and legal right to execute and deliver
the Loan Documents to which it is a party and to perform its obligations
thereunder. The execution and delivery by each of the Borrower, the Partnership
and the REIT of the Loan Documents to which it is a party and the performance of
its obligations thereunder have been duly authorized by proper corporate or
other appropriate proceedings, and the Loan Documents to which each of the
Borrower, the Partnership and the REIT is a party constitute its legal, valid
and binding obligations enforceable against it in accordance with the terms
thereof, except as enforceability may be limited by bankruptcy, insolvency or
similar laws affecting the enforcement of creditors' rights generally.

         5.3. No Conflict; Government Consent. Neither the execution and
delivery by the Borrower, the Partnership nor the REIT of the Loan Documents to
which it is a party, nor the consummation of the transactions therein
contemplated, nor compliance with the provisions thereof will violate (i) any
law, rule, regulation, order, writ, judgment, injunction, decree or award
binding on the Borrower, the Partnership or the REIT or (ii) the articles or
certificate of incorporation, partnership agreement, certificate of partnership,
articles or certificate of organization, by-laws, or operating or other
management agreement of the Borrower, the Partnership or the REIT or (iii) the
provisions of any indenture, instrument or agreement to which the Borrower, the
Partnership or the REIT is a party or is subject, or by which it, or its
Property, is bound, or conflict with or constitute a default thereunder, or
result in, or require, the creation or imposition of any Lien in, of or on the
Property of the Borrower pursuant to the terms of any such indenture, instrument
or agreement. No order, consent, adjudication, approval, license, authorization,
or validation of, or filing, recording or registration with, or exemption by, or
other action in respect of any governmental or public body or authority, or any
subdivision

                                       24
<PAGE>

thereof, which has not been obtained by the Borrower, the Partnership or the
REIT, is required to be obtained by the Borrower, the Partnership or the REIT in
connection with the execution and delivery of the Loan Documents, the borrowings
under this Agreement, the payment and performance by the Borrower of the
Obligations or the legality, validity, binding effect or enforceability of any
of the Loan Documents.

         5.4. Financial Statements; Financial Condition; etc. The financial
statements delivered pursuant to Section 4.1.6 were prepared in accordance with
generally accepted accounting principles consistently applied and fairly present
the financial condition and the results of operations of the Borrower, the
Partnership, the REIT, the Pledged Assets and the Mortgaged Properties covered
thereby on the dates and for the periods covered thereby, except as disclosed in
the notes thereto and, with respect to interim financial statements, subject to
usual year-end adjustments. Neither the Borrower, the Partnership nor the REIT
has any material liability (contingent or otherwise) not reflected in such
financial statements or in the notes thereto. There has been no adverse change
in any condition, fact, circumstance or event that would make any such
information materially inaccurate, incomplete or otherwise misleading or would
affect the Borrower's, the Partnership's or the REIT's ability to perform its
obligations under this Agreement.

         5.5. Material Adverse Change. Since June 30, 2002 there has been no
change in the business, Property, prospects, condition (financial or otherwise)
or results of operations of the Borrower, the Partnership or the REIT that could
reasonably be expected to have a Material Adverse Effect.

         5.6. Taxes. Each of the Borrowers, the Partnership and the REIT has
filed all United States federal tax returns and all other tax returns which are
required to be filed and has paid all taxes (if any) due pursuant to said
returns or pursuant to any assessment received by them, except such taxes, if
any, as are being contested in good faith and as to which adequate reserves have
been provided in accordance with Agreement Accounting Principles and as to which
no Lien exists. No tax liens have been filed and no claims are being asserted
with respect to any such taxes. The charges, accruals and reserves on the books
of the Borrower, the Partnership and the REIT in respect of any taxes or other
governmental charges are adequate.

         5.7. Litigation and Contingent Obligations. Except as set forth on
Schedule XI, there is no litigation, arbitration, governmental investigation,
proceeding or inquiry pending or, to the knowledge of any of their officers,
threatened against or affecting the Borrower, the Partnership or the REIT that
could reasonably be expected to have a Material Adverse Effect or that seeks to
prevent, enjoin or delay the making of any Advance.

         5.8. No Plan Assets. Neither Borrower is an "employee benefit plan" (as
defined in Section 3(3) of ERISA) subject to Title I of ERISA, and none of the
assets of either Borrower constitutes or will constitute "plan assets" of one or
more such plans within the meaning of 29 C. F. R. Section 2510. 3-101. In
addition, (a) Neither Borrower is a "governmental plan" within the meaning of
Section 3(32) of ERISA and (b) transactions by or with Borrowers are not subject
to State statutes regulating investment of, and fiduciary obligations with
respect to, governmental plans similar to the provisions of Section 406 of ERISA
or Section 4975 of the Code currently in effect, which prohibit or otherwise
restrict the transactions contemplated by this Agreement.

                                       25
<PAGE>

         5.9. Accuracy of Information. No information, exhibit or report
furnished by the Borrower, the Partnership or the REIT to the Agent or to any
Lender in connection with the negotiation of, or compliance with, the Loan
Documents contained any material misstatement of fact or omitted to state a
material fact or any fact necessary to make the statements contained therein not
misleading.

         5.10. Intentionally Deleted.

         5.11. Material Agreements. Neither the Borrower, the Partnership nor
the REIT is a party to any agreement or instrument or subject to any charter or
other corporate, partnership or other restriction which could reasonably be
expected to have a Material Adverse Effect. Neither the Borrower, the
Partnership nor the REIT is in default in the performance, observance or
fulfillment of any of the obligations, covenants or conditions contained in (i)
any agreement to which it is a party, which default could reasonably be expected
to have a Material Adverse Effect or (ii) except as set forth on Schedule 5.11,
any agreement or instrument evidencing or governing Indebtedness; the defaults
set forth on Schedule 5.11 could not reasonably be expected to have a Material
Adverse Effect.

         5.12. Compliance With Laws. Each of the Borrower, the Partnership and
the REIT has complied with all applicable statutes, rules, regulations, orders
and restrictions of any domestic or foreign government or any instrumentality or
agency thereof having jurisdiction over the conduct of their respective
businesses, with respect to Borrowers, or the ownership of the Pledged Assets
except for any failure to comply with any of the foregoing which could not
reasonably be expected to have a Material Adverse Effect.

         5.13. Ownership of Pledged Assets; Existing Security Instruments. The
Borrower has good title to all of the Pledged Assets. As of the date of this
Agreement, there are no options or other rights to acquire any of the Pledged
Assets that run in favor of any Person and there are no mortgages, deeds of
trust, indentures, debt instruments or other agreements creating a Lien against
any of the Mortgaged Properties other than Permitted Liens and the Purchase
Option.

         5.14. No Default. No Default or Unmatured Default exists under or with
respect to any Loan Document. The Borrower, is not in default in any material
respect beyond any applicable grace period under or with respect to any other
material agreement, instrument or undertaking to which it is a party or by which
it or any of the Pledged Assets is bound in any respect, the existence of which
default could result in a Material Adverse Effect. No Default or Unmatured
Default exists under the Existing Line of Credit.

         5.15. Intentionally Deleted.

         5.16. Intentionally Deleted.

         5.17. Investment Company Act. Neither the Borrower, the Partnership,
nor the REIT is an "investment company" or a company "controlled" by an
"investment company," within the meaning of the Investment Company Act of 1940,
as amended.

         5.18. Public Utility Holding Company Act. Neither the Borrower, the
Partnership nor the REIT is a "holding company" or a "subsidiary company" of a
"holding company," or an

                                       26
<PAGE>

"affiliate" of a "holding company" or of a "subsidiary company" of a "holding
company", within the meaning of the Public Utility Holding Company Act of 1935,
as amended.

         5.19. Intentionally Deleted.

         5.20. Property Manager. As of the date hereof, the manager of the
Mortgaged Properties is an Affiliate of the Borrower.

         5.21. Intentionally Deleted.

         5.22. Intentionally Deleted.

         5.23. Intentionally Deleted.

         5.24. Intentionally Deleted.

         5.25. Intentionally Deleted.

         5.26. Single Purpose.

         Each Borrower is engaged only in the business of owning the Pledged
Assets. No Borrower owns or has any interest in any Person. The sole partners
and beneficial owners of each Borrower are and will continue to be, directly or
indirectly, the Partnership and/or the REIT.

         5.27. Ownership. Each Subordinate Mortgagee is wholly owned and
controlled, directly or indirectly, by the Partnership and the REIT, and (c)
each Borrower is wholly owned and controlled, directly or indirectly, by the
partnership and the REIT.

         5.28. Principal Place of Business; State of Organization. Each
Borrower's principal place of business as of the date hereof is the address set
forth on the signature pages hereof. Each Borrower is organized under the laws
of the State of Michigan. Sun Financial's organizational identification number
is B9392F, Sun LP's organizational identification number is L05659.

         5.29. Taxpayer Identification Number. Sun Financial's United States
taxpayer identification number is 30-0114694. Sun LP's United States taxpayer
identification number has been applied for by Sun LP and Sun LP shall supply
such number to Agent upon its assignment.

                                       27
<PAGE>
                                   ARTICLE VI
                                    COVENANTS

         During the term of this Agreement, unless the Required Lenders shall
otherwise consent in writing:

         6.1. Financial Reporting.

                  6.1.1. Financial Statements and Other Reports. The Borrowers
         and the Partnership shall deliver to Agent copies of all financial
         statements, reports, compliance certificates, comfort letters, notices
         of default or litigation, notices of violation, environmental notices
         and all other notices and information required to be delivered pursuant
         to the Existing Line of Credit simultaneously with their delivery to
         the Line of Credit Agent.

                  6.1.2. Intentionally Deleted.

                  6.1.3. Notice of Default or Litigation. Promptly after a
         Responsible Officer obtains actual knowledge thereof, the Borrowers
         shall give Agent notice of (i) the occurrence of a Default or Unmatured
         Default under this Agreement, (ii) the occurrence of (w) any default
         that is not cured, or any event of default, under any partnership
         agreement of the Borrower, any mortgage, deed of trust, indenture or
         other debt or security instrument, covering any of the Mortgaged
         Properties, (x) any event of default under any other material agreement
         to which the Borrowers are a party, which, if not cured could result in
         a Material Adverse Effect, (y) any Collateral Default or Collateral
         Event of Default, or (z) a Default, Unmatured Default or Event of
         Default under the Existing Line of Credit, (iii) any litigation or
         governmental proceeding pending or threatened (in writing) against the
         Borrowers, which could result in a Material Adverse Effect and (iv) any
         other event, act or condition which could result in a Material Adverse
         Effect. Each notice delivered pursuant to this Section 6.1.3 shall be
         accompanied by a certificate of the REIT for itself and as general
         partner of the Partnership setting forth the details of the occurrence
         referred to therein and describing the actions the Borrowers propose to
         take with respect thereto.

                  6.1.4. Intentionally Deleted.

                  6.1.5. Environmental Notices. The Borrower shall furnish to
         the Agent, as soon as possible and in any event within ten (10) days
         after receipt by either Borrower, a copy of (i) any notice or claim to
         the effect that the Borrower, the Partnership or the REIT is or may be
         liable to any Person as a result of the release of any toxic or
         hazardous waste or substance into the environment from the Mortgaged
         Properties, and (ii) any notice alleging any violation of any federal,
         state or local environmental, health or safety law or regulation by the
         Borrowers with respect to the Mortgaged Properties.

                  6.1.6. Notice of Violation. The Borrowers, will give prompt
         notice to the Agent of the receipt by the Borrower, the Partnership or
         the REIT of any notice related to a violation of any Applicable Laws
         and of the commencement of any proceedings or investigations which
         relate to compliance with Applicable Laws with respect to the
         Borrowers, the Pledged Assets and that could result in a Material
         Adverse Effect.

                  6.1.7. Other Information. The Borrowers, the Partnership and
         the REIT shall promptly furnish to the Agent such other information
         (including non-financial information) as the Agent or any Lender may
         from time to time reasonably request.

                                       28
<PAGE>

                  6.1.8. Pledged Assets. (i) The Borrowers shall deliver to
         Agent, within two days of receipt, copies of all financial information,
         including rent rolls and operating statements, and all notices given by
         Mortgagor to Borrower under the Pledged Asset Documents or with respect
         to the Mortgaged Properties. Within ten (10) days of the end of each
         calendar month, Borrower shall deliver to Agent a report in form and
         substance reasonably satisfactory to Agent setting forth for such
         month, among other things (i) payments received under the Pledged Asset
         Documents, and (ii) advances made to Mortgagors pursuant the Pledged
         Asset Documents.

                  (ii) Borrowers shall furnish to Agent, within ten (10)
         Business Days after request, such further detailed information with
         respect to the operation of the Mortgaged Properties and the financial
         affairs of Borrowers as may be reasonably requested by Agent.

         6.2. Use of Proceeds; Margin Regulations. All proceeds of each Advance
will be used by the Borrowers, the Partnership and the REIT only in accordance
with the provisions of Section 2.20. No part of the proceeds of any Advance will
be used by the Borrower or the REIT to purchase or carry any margin stock (as
defined in Regulation U) or to extend credit to others for the purpose of
purchasing or carrying any margin stock.

         6.3. Conduct of Business.

         (i)      The Borrowers, the Partnership and the REIT will, do all
                  things necessary to remain duly incorporated or organized,
                  validly existing and (to the extent such concept applies to
                  such entity) in good standing as a domestic corporation,
                  partnership or limited liability company in its jurisdiction
                  of incorporation or organization, as the case may be, and
                  maintain all requisite authority to conduct its business in
                  each jurisdiction in which its business is conducted.

         (ii)     The Borrower shall not own any Assets other than the Pledged
                  Assets and shall not incur any indebtedness other than the
                  Loan.

         6.4. Taxes. The Borrowers, will, timely file complete and correct
United States federal and applicable foreign, state and local tax returns
required by law and pay when due all taxes, assessments and governmental charges
and levies upon it or its income, profits, except those which are being
contested in good faith by appropriate proceedings and with respect to which
adequate reserves have been set aside.

         6.5. Insurance. The Borrowers shall, or shall cause each Mortgagor to,
maintain the insurance coverage required under the Pledged Asset Documents with
respect to the Mortgaged Properties and shall deliver evidence reasonably
satisfactory to the Agent that such insurance is being maintained.

         6.6. Compliance with Laws. The Borrowers, will comply with all laws,
rules, regulations, orders, writs, judgments, injunctions, decrees or awards to
which it may be subject,

                                       29
<PAGE>

including, without limitation, all Environmental Laws. The Borrowers, will take
appropriate measures to prevent, and will not engage in or knowingly permit, any
illegal activities at any Mortgaged Property.

         6.7. Intentionally Deleted.

         6.8. Inspection. The Borrowers, the Partnership and the REIT will
permit the Agent and the Lenders, by their respective representatives and
agents, to inspect, books and financial records of the Borrowers, the
Partnership and the REIT, to examine and make copies of the books of accounts
and other financial records of the Borrowers, the Partnership and the REIT, to
discuss the affairs, finances and accounts of the Borrowers, the Partnership and
the REIT.

         6.9. Intentionally Deleted.

         6.10. Change in Rating. The Partnership will promptly notify the Agent
in writing of any change, downgrade or withdrawal, or threatened change,
downgrade or withdrawal of the Partnership's Unsecured Debt Rating.

         6.11. Intentionally Deleted.

         6.12. Acceleration Notice. The Borrower agrees that it will, within ten
(10) days after receipt of written notice that the debt secured by any
Subordinate Mortgage has been accelerated, provide written notice to the Agent
of such acceleration.

         6.13. Intentionally Deleted.

         6.14. Intentionally Deleted.

         6.15. Intentionally Deleted.

         6.16. Intentionally Deleted.

         6.17. Intentionally Deleted.

         6.18. Intentionally Deleted.

         6.19. Pledged Asset Documents. Borrowers shall perform all of their
obligations as lender under the Pledged Asset Documents, including the funding
of required advances thereunder to which the Mortgagors are entitled under the
Pledged Asset Documents. Borrowers shall not, without Agent's prior written
consent, agree to any modification or amendment to any of the Pledged Asset
Documents, the Intercreditor Agreements or the Subordinate Mortgages, and shall
not waive any material conditions or terms of the Pledged Asset Documents.

         6.20. Intercreditor Agreements. The Subordinate Mortgagees hereby agree
that without the prior written consent of the Agent, they will not (a) declare a
default, accelerate the debt secured by the Subordinate Mortgages, commence any
foreclosure action, exercise any power-of-sale, commence any suit against any
Mortgagor, commence any bankruptcy or similar insolvency proceeding with respect
to any Mortgagor or take any other enforcement action with

                                       30
<PAGE>

respect to any Subordinate Mortgage, or (ii) sell, transfer, assign, pledge,
encumber, convey or grant participation interests in the Subordinate Mortgages.

         6.21. Purchase Option. In the event Sun/Forest LLC exercises its
Purchase Option with respect to any Mortgaged Property or is required to
purchase any Mortgaged Property pursuant to such Purchase Option, Sun/Forest LLC
shall pay such purchase price to the applicable Borrower on account of the
Pledged Mortgage, and if the purchase price so received by Borrower is less than
the then outstanding principal balance of the applicable Pledged Mortgage (such
difference, the "Purchase Shortfall"), then either (a) Sun/Forest LLC shall take
title to such Mortgaged Property subject to, and assume all obligations under,
the applicable Pledged Mortgage, the related Pledged Asset Documents and the
applicable Subordinate Mortgage or (b) Borrower shall simultaneously prepay a
portion of the Loan equal to the Purchase Shortfall in accordance with Section
2.7(except that the minimum repayment amounts therein shall not apply).

         The Partnership agrees that it shall not permit Sun/Forest LLC to sell,
transfer, assign, pledge, encumber, convey or grant participation interests in
(i) its direct or indirect interest in each Mortgagor, unless an entity
Controlled by the Partnership or the REIT is the general partner of Mortgagor,
if the Mortgagor is a limited partnership or is the manager of the Mortgagor, if
the Mortgagor is a limited liability company, or (ii) the Purchase Option.

         6.22. Funding Reserve.

                           (a) If the Unsecured Debt Rating of the Partnership
                  is at any time less than BBB- or its equivalent, or is
                  withdrawn or is no longer assigned by any Rating Agency or
                  Substitute Rating Agency, Borrower shall, within five (5)
                  Business Days after the date such Unsecured Debt Rating is
                  announced, deposit, in immediately available funds, an amount
                  equal to the difference between the then aggregate outstanding
                  principal balance of the Pledged Mortgages and the maximum
                  aggregate stated principal amount (adjusted for any
                  prepayments or scheduled amortization payments actually
                  received by the applicable Borrower) of the Pledged Mortgages
                  (such differences, the "Funding Requirement") into a reserve
                  account to be held by Agent in Agent's name for the benefit of
                  the Lenders (the "Funding Reserve"). The Funding Reserve is
                  for the purpose of Funding required advances under the Pledged
                  Mortgages.

                           (b) Provided no Event of Default has occurred and is
                  continuing, Borrowers shall have the right to request a
                  disbursement from the Funding Reserve if a Borrower is
                  obligated to fund an advance to a Mortgagor under the related
                  Pledged Mortgage, and upon delivery of a certificate signed by
                  a Responsible Officer representing and warranting to Agent (i)
                  that such Mortgagor has complied with all the applicable
                  conditions to an advance under the related Pledged Mortgage,
                  (ii) that the work for which the requested advance relates has
                  been completed in a satisfactory manner and (iii) the amount
                  of the requested advances, Agent shall disburse sums from the
                  Funding Reserve to Borrower in amount equal to the requested
                  advance. Prior to requesting a subsequent disbursement from
                  the Funding Reserve, Borrowers shall deliver an estoppel from

                                       31
<PAGE>

                  the Mortgagor entitled to the immediately preceding
                  disbursement stating that it has received the full amount of
                  such advance from the applicable Borrower.

                           (c) Borrowers grant to Agent and the Lender a
                  first-priority perfected security interest in the Funding
                  Reserve and any and all monies now or hereafter deposited in
                  the Funding Reserve as additional security for payment of the
                  Loan. Until expended or applied in accordance herewith, the
                  Funding Reserve shall constitute additional security for the
                  Loan.

                           (d) Upon the occurrence of an Event of Default, Agent
                  may, in addition to any and all other rights and remedies
                  available to Agent, apply any sums then present in any or all
                  of the Funding Reserve to the payment of the Loan in any order
                  in its sole discretion.

                           (e) The Funding Reserve shall not constitute trust
                  funds and shall be held in an interest bearing account and all
                  earnings or interest on the Funding Reserve shall be added to
                  and become a part of Funding Reserve and shall be disbursed in
                  the same manner as other monies deposited in the Funding
                  Reserve.

                           (f) Borrowers shall not, without obtaining the prior
                  written consent of Lender, further pledge, assign or grant any
                  security interest in the Funding Reserve or the monies
                  deposited therein or permit any lien or encumbrance to attach
                  thereto, or any levy to be made thereon, or any UCC-1
                  Financing Statements, except those naming Agent as the secured
                  party, to be filed with respect thereto.

                           (g) Borrowers shall indemnify Agent and hold Agent
                  harmless from and against any and all actions, suits, claims,
                  demands, liabilities, losses, damages, obligations and costs
                  and expenses (including litigation costs and reasonable
                  attorneys fees and expenses) arising from or in any way
                  connected with the Funding Reserve or the performance of the
                  obligations for which the Funding Reserve was established,
                  except to the extent arising from the gross negligence or
                  willful misconduct of Agent, its agents or employees. Borrower
                  shall assign to Agent all rights and claims Borrowers may have
                  against all Persons supplying labor, materials or other
                  services which are to be paid from or secured by the Funding
                  Reserve; provided, however, that Agent may not pursue any such
                  right or claim unless an Event of Default has occurred and
                  remains uncured.

                           (h) In the event that a Mortgagor agrees with the
                  applicable Borrower to modify the related Pledged Mortgage to
                  reduce the Funding Requirement and the maximum principal
                  amount of the related Pledged Mortgage (provided that no such
                  reduction shall reduce the maximum principal amount of the
                  Pledged Mortgage to less than the outstanding principal
                  balance thereof), and (i) such modification is in form and
                  substance reasonably acceptable to Agent and (ii) it has been
                  properly recorded in the appropriate real estate records,
                  than, provided no Event of Default has occurred and is
                  continuing, the Funding Reserve shall be

                                       32
<PAGE>

                  reduced by an amount equal to such reduction in the Funding
                  Requirement, and such amount shall be disbursed to Borrower on
                  request.

         6.23. Incorporation by Reference.

                           (a) All of the terms and conditions of the Existing
                  Line of Credit are hereby incorporated by reference and such
                  terms and conditions shall have the same effect as if they
                  were stated herein in their entirety. In the event that the
                  Existing Line of Credit is repaid in full or terminated, the
                  Partnership and the REIT shall continue to be bound by the
                  terms and conditions of the Existing Line of Credit, and
                  anything that would have constituted a Default, Unmatured
                  Default or Event of Default under the Existing Line of Credit
                  shall be a Default, or Unmatured Default or an Event of
                  Default, as the case may be, hereunder.

                           (b) The Partnership and the REIT shall not modify any
                  of the financial covenants, material economic terms or other
                  material provisions of the Existing Line of Credit after the
                  date hereof without the prior written consent of Agent.

         6.24. Intentionally Deleted.

         6.25. Liens. The Borrowers, will not, create, incur, assume or suffer
to exist, directly or indirectly, any Lien on any Pledged Assets, or any
Mortgaged Property, other than the following (collectively, the "Permitted
Liens"):

                           (i) Liens existing on the Closing Date and set forth
                  in the Title Policies;

                           (ii) Liens for taxes not yet due or which are being
                  contested in good faith by appropriate proceedings diligently
                  conducted and with respect to which adequate reserves are
                  being maintained;

                           (iii) Statutory Liens of landlords and Liens of
                  mechanics, materialmen and other Liens imposed by Law (other
                  than any Lien imposed by ERISA) created in the ordinary course
                  of business for amounts not yet due or which are being
                  contested in good faith by appropriate proceedings diligently
                  conducted, and with respect to which adequate bonds have been
                  posted if required to do so by Applicable Law;

                           (iv) Easements, rights-of-way, zoning and similar
                  restrictions and other similar charges or encumbrances not
                  interfering with the ordinary conduct of the business of the
                  Borrower and which do not detract materially from the value of
                  any of the Mortgaged Properties to which they attach or impair
                  materially the use thereof by the Mortgagor or Borrower;

                           (v) The Liens of the Pledged Mortgages and the
                  Subordinate Mortgages.

                                       33
<PAGE>
         6.26. Restriction on Fundamental Changes.

                           (i) Without the prior written consent of the Agent
                  and the Required Lenders, which consent may be withheld in the
                  sole and absolute discretion of the Agent and the Required
                  Lenders, the Borrowers, the Partnership, and the REIT will not
                  enter into any merger or consolidation with, any Person other
                  than the Borrowers, the Partnership, the REIT or a Person
                  wholly owned and controlled by the Borrowers, the Partnership
                  or the REIT.

                           (ii) Notwithstanding the foregoing, the Borrowers, or
                  the Partnership may enter into a merger or consolidation,
                  provided that following such merger or consolidation, the
                  Partnership is the surviving entity of such merger or
                  consolidation and the REIT or an entity wholly owned and
                  controlled by the REIT (i) is the sole general partner of the
                  Partnership, and (ii) owns at least a 51% economic ownership
                  interest in the Partnership.

         6.27. Transactions with Affiliates. The Borrowers, will not enter into
any material transaction or series of related transactions, whether or not in
the ordinary course of business, with any Affiliate of the Borrowers, other than
on terms and conditions substantially as favorable as would be obtainable at the
time in a comparable arm's-length transaction with a Person other than an
Affiliate of the Borrowers.

         6.28. Intentionally Deleted.

         6.29. Intentionally Deleted.

         6.30. Intentionally Deleted.

         6.31. Organizational Documents. Neither the Borrower, the Partnership
nor the REIT will make any amendments or modifications to its partnership
agreement, corporate charter, by-laws, certificate of incorporation, articles of
organization, operating agreement or other organizational documents which would
have a Material Adverse Effect without the prior approval of the Agent and the
Required Lenders; notwithstanding the foregoing, the Agent will be promptly
notified of all such changes (other than modifications and amendments relating
solely to the admission or deletion of limited partners or changes in their
limited partnership interests, unless such limited partner is Gary Shiffman).

         6.32. Intentionally Deleted.

         6.33. Intentionally Deleted.

         6.34. ERISA.

                           (i) Borrowers shall not engage in any transaction
                  which would cause any obligation, or action taken or to be
                  taken, hereunder (or the exercise by Agent of any of its
                  rights under the Note, this Agreement or the other Loan
                  Documents) to be a non-exempt (under a statutory or
                  administrative class exemption) prohibited transaction under
                  ERISA.

                                       34
<PAGE>

                           (ii) Borrowers further covenant and agree to deliver
                  to Agent such certifications or other evidence from time to
                  time throughout the term of the Loan, as requested by Agent in
                  its sole discretion and represents and covenants that (A)
                  neither Borrower is and or maintain an "employee benefit plan"
                  as defined in Section 3(32) of ERISA, which is subject to
                  Title I of ERISA, or a "governmental plan" within the meaning
                  of Section 3(3) of ERISA; (B) neither Borrower is subject to
                  State statutes regulating investments and fiduciary
                  obligations with respect to governmental plans; and (C) one or
                  more of the following circumstances is true:

                                    (a) Equity interests in each Borrower are
                           publicly offered securities, within the meaning of 29
                           C. F. R. Section 2510. 3-101(b)(2);

                                    (b) Less than twenty-five percent (25%) of
                           each outstanding class of equity interests in each
                           Borrower are held by "benefit plan investors" within
                           the meaning of 29 C. F. R. Section 2510. 3-101(f)(2);
                           or

                                    (c) Each Borrower qualifies as an "operating
                           company" or a "real estate operating company" within
                           the meaning of 29 C. F. R. Section 2510. 3-101(c) or
                           (e).

                           (iii) Agent, as Lender, represents and warrants that
                  none of the funds being used to make the Advances are "plan
                  assets" as defined under ERISA.

         6.35. Transfer of Pledged Assets. The Borrower shall not sell,
transfer, assign, convey, grant participations in, pledge or encumber any of the
Pledged Assets or the Borrower's interest therein.

         6.36. Proceeds of Equity and Debt Offerings. All net proceeds (after
payment of underwriter and placement fees and other expenses directly related to
such equity or debt offering) from any equity or debt offering by the REIT, the
Partnership or the Borrowers shall be immediately applied to the prepayment of
the outstanding principal balance of the Loan in accordance with Section 2.7.

         6.37. Name, Identity, Structure, or Principal Place of Business.
Neither Borrower shall change its name, identity (including its trade name or
names), or principal place of business, without, in each case, first giving
Agent thirty (30) days prior written notice. Neither Borrower shall change its
corporate, partnership or other structure, or the place of its organization as
set forth in Section 5.28, without, in each case, the consent of Agent. Upon
Agent's request, Borrowers shall execute and deliver additional UCC Financing
Statements, security agreements and other instruments which may be necessary to
effectively evidence or perfect Agent's security interest in the Pledged Assets
as a result of such change of principal place of business or place of
organization.

         6.38. Further Assurances. Borrowers shall execute and deliver to Agent
such documents, instruments, certificates, assignments and other writings, and
do such other acts necessary or desirable, to evidence, preserve and/or protect
the Pledged Assets at any time securing or intended to secure the obligations of
Borrowers under the Loan Documents, as Agent

                                       35
<PAGE>

may reasonably require including, without limitation, the execution of
additional or supplemental UCC Financing Statements and Collateral Assignments.
Borrower hereby authorizes Agent to file any UCC Financing Statements required
under the Security Agreement and under this Section 6.38.

         6.39. Mortgage and Intangible Taxes. Borrowers and the Partnership
shall pay all State, county and municipal recording, mortgage, and intangible,
and all other taxes imposed upon the execution and recordation of the Collateral
Assignments, UCC Financing Statements and/or upon the execution and delivery of
the Transfer Documents and the Pledged Assets.

         6.40. Ownership. The Partnership and the REIT shall, at all times,
wholly own and control, directly or indirectly, (i) the Borrowers; and (ii) the
Subordinate Mortgagees.

                                   ARTICLE VII
                                    DEFAULTS

         Each of the following events, acts, occurrences or conditions shall
constitute a Default under this Agreement, regardless of whether such event,
act, occurrence or condition is voluntary or involuntary or results from the
operation of law or pursuant to or as a result of compliance by any Person with
any judgment, decree, order, rule or regulation of any court or administrative
or governmental body:

         7.1. Failure to Make Payments. The Borrowers, shall default in the
payment when due of any principal or any interest on the Loan or default in the
payment of any fees or other amounts owing hereunder or under any other Loan
Documents when the same are due and payable.

         7.2. Breach of Representation or Warranty. Any representation or
warranty made by the Borrower, the Partnership or the REIT herein, in the
Security Agreement or in any other Loan Document or in any certificate or
statement delivered pursuant hereto or thereto shall prove to be false or
misleading in any material respect on the date as of which made or deemed made:
provided, however, that if such breach is capable of being cured, then the
Borrowers shall have a period of thirty (30) days after delivery of notice from
the Agent to cure any such breach.

         7.3. Breach of Covenants.

                           (i) The Borrowers, the Partnership or the REIT shall
                  fail to perform or observe any agreement, covenant or
                  obligation arising under Sections 6.25 (other than Liens which
                  are placed on a Mortgaged Property without the consent of the
                  Borrower, the Partnership, or the REIT), 6.26, 6.34, 6.35,
                  6.36 and 6.40.

                           (ii) The Borrowers, the Partnership or the REIT shall
                  fail to perform or observe any agreement, covenant or
                  obligation arising under this Agreement (except those
                  described in Sections 7.1, 7.2 and 7.3(i) above), and such
                  failure shall continue uncured for thirty (30) days after
                  delivery of notice thereof, or such longer period of time as
                  is reasonably necessary to cure such failure, provided that
                  the Borrowers have commenced and is diligently prosecuting the
                  cure of such failure and cures it within ninety (90) days.

                                       36
<PAGE>

                           (iii) The Borrowers, the Partnership or the REIT
                  shall fail to perform or observe any agreement, covenant or
                  obligation arising under any provision of the Security
                  Agreement or any of the Loan Documents other than this
                  Agreement, which failure shall continue after the end of any
                  applicable grace period provided therein.

         7.4. Default Under Existing Line of Credit. The Partnership, or the
REIT shall default beyond any applicable grace period in the payment performance
or observance of any obligation or condition with respect to the Existing Line
of Credit or any other event shall occur or condition exist, if the effect of
such default, event or condition is to accelerate the maturity of the
indebtedness under the Existing Line of Credit or such indebtedness shall become
or be declared to be due and payable prior to its stated maturity and the
foregoing conditions are not cured within (30) days after the condition occurs.

         7.5. Bankruptcy, etc. (i) The Borrower, the Partnership, or the REIT
shall commence a voluntary case concerning itself under the Bankruptcy Code; or
(ii) an involuntary case is commenced against the Borrower, the Partnership, or
the REIT and the petition is not contested within sixty (60) days, or is not
dismissed within ninety (90) days, after commencement of the case or (iii) a
custodian (as defined in the Bankruptcy Code) is appointed for, or takes charge
of, all or substantially all of the property of the Borrower, the Partnership,
the REIT, or the Borrower, the Partnership, or the REIT commences any other
proceedings under any reorganization, arrangement, adjustment of debt, relief of
debtors, dissolution, insolvency or liquidation or similar law of any
jurisdiction whether now or hereafter in effect relating to the Borrower, the
Partnership, the REIT or there is commenced against the Borrower, the
Partnership, or the REIT any such proceeding which remains undismissed for a
period of ninety (90) days; or (iv) any order of relief or other order approving
any such case or proceeding is entered; or (v) the Borrower, the Partnership, or
the REIT is adjudicated insolvent or bankrupt; or (vi) the Borrower, the
Partnership, or the REIT suffers any appointment of any custodian or the like
for it or any substantial part of its property to continue undischarged or
unstayed for a period of ninety (90) days; or (vii) the Borrower, the
Partnership, or the REIT, makes a general assignment for the benefit of
creditors; or (viii) the Borrower, the Partnership, or the REIT shall fail to
pay, or shall state that it is unable to pay, or shall be unable to pay, its
debts generally as they become due; or (ix) the Borrower, or the Partnership,
the REIT shall call a meeting of its creditors with a view to arranging a
composition or adjustment of its debt; or (x) the Borrower, the Partnership, or
the REIT shall by any act or failure to act consent to, approve of or acquiesce
in any of the foregoing; or (xi) any corporate, partnership or limited liability
company action is taken by the Borrower, the Partnership, or the REIT for the
purpose of effecting any of the foregoing.

         7.6. Receivership. Without the application, approval or consent of the
Borrower, the Partnership, or the REIT, a receiver, trustee, examiner,
liquidator or similar official shall be appointed for the Borrower, the
Partnership, or the REIT, or a proceeding described in Section 7.5(iii) shall be
instituted against the Borrower, the Partnership, or the REIT and such
appointment continues undischarged or such proceeding continues undismissed or
unstayed for a period of 30 consecutive days.

         7.7. Intentionally Deleted.

                                       37
<PAGE>

         7.8. Intentionally Deleted.

         7.9. Intentionally Deleted.

         7.10. Guaranty. The Guaranty shall fail to remain in full force or
effect or any action shall be taken to discontinue or to assert the invalidity
or unenforceability of the Guaranty, or any Guarantor shall fail to comply with
any of the terms or provisions of any Guaranty to which it is a party, or any
Guarantor shall deny that it has any further liability under any Guaranty to
which it is a party, or shall give notice to such effect.

         7.11. Intentionally Deleted.

         7.12. Intentionally Deleted

         7.13. Material Adverse Effect. If any Material Adverse Effect shall
occur (other than a down grade, withdrawal or termination of the Partnership's
or the REIT's Unsecured Debt Rating).

         7.14. Collateral Event of Default. If any Collateral Event of Default
shall occur and the Borrower fails to repay the entire Loan and all of the
Obligations in full within five (5) Business Days of such occurrence.

                                  ARTICLE VIII
                 ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

         8.1. Acceleration. If any Default described in Section 7.5 or 7.6
occurs with respect to the Borrower, the obligations of the Lenders to make
Advance hereunder shall automatically terminate and the Obligations shall
immediately become due and payable without any election or action on the part of
the Agent, or any Lender. If any other Default occurs, the Required Lenders (or
the Agent with the consent of the Required Lenders) may terminate or suspend the
obligations of the Lenders to make Loans hereunder or declare the Obligations to
be due and payable, or both, whereupon the Obligations shall become immediately
due and payable, without presentment, demand, protest or notice of any kind, all
of which the Borrower hereby expressly waives and enforce any and all of its
remedies hereunder, in the Security Agreement, the other Loan Documents and as
provided by Applicable Law.

         8.2. Amendments. Subject to the provisions of this Section 8.2, the
Required Lenders (or the Agent with the consent in writing of the Required
Lenders) and the Borrower may enter into agreements supplemental hereto for the
purpose of adding or modifying any provisions to the Loan Documents or changing
in any manner the rights of the Lenders or the Borrower hereunder or waiving any
Default hereunder; provided, however, that no such supplemental agreement shall,
without the consent of all of the Lenders:

         (i)      Extend the final maturity of any Loan, or forgive all or any
                  portion of the principal amount thereof or reduce the rate or
                  extend the time of payment of interest or fees thereon.

         (ii)     Reduce the percentage specified in the definition of Required
                  Lenders.

                                       38
<PAGE>

         (iii)    Extend the Maturity Date or increase the Loan Amount, the
                  Aggregate Commitment, the Commitment of any Lender hereunder
                  or permit the Borrower to assign its rights under this
                  Agreement.

         (iv)     Reduce the Commitment of any Lender except for (a) reductions
                  of a Lender's Commitment as a result of the assignment of all
                  or a portion thereof to a Purchaser in accordance with Section
                  12.3 and (b) replacement of a Lender in accordance with
                  Section 2.18.

         (v)      Amend this Section 8.2.

         (vi)     Release any Guarantor.

         (vii)    Provide for an Interest Period of less than one month or
                  greater than three months.

         (viii)   Subject any Lender to any additional obligation.

No amendment of any provision of this Agreement relating to the Agent shall be
effective without the written consent of the Agent. The Agent may waive payment
of the fee required under Section 12.3.2.

         8.3. Preservation of Rights. No delay or omission of the Lenders, or
the Agent to exercise any right under the Loan Documents shall impair such right
or be construed to be a waiver of any Default or an acquiescence therein, and
the making of an Advance notwithstanding the existence of a Default or the
inability of the Borrower to satisfy the conditions precedent to such Advance
shall not constitute any waiver or acquiescence. Any single or partial exercise
of any such right shall not preclude other or further exercise thereof or the
exercise of any other right, and no waiver, amendment or other variation of the
terms, conditions or provisions of the Loan Documents whatsoever shall be valid
unless in writing signed by the Lenders required pursuant to Section 8.2, and
then only to the extent in such writing specifically set forth. All remedies
contained in the Loan Documents or by law afforded shall be cumulative and all
shall be available to the Agent, and the Lenders until the Obligations have been
paid in full.

                                   ARTICLE IX
                               GENERAL PROVISIONS

         9.1. Survival of Representations. All representations and warranties of
the Borrower, the Partnership and the REIT contained in this Agreement shall
survive the making of the Advance herein contemplated.

         9.2. Governmental Regulation. Anything contained in this Agreement to
the contrary notwithstanding, no Lender shall be obligated to extend credit to
the Borrower in violation of any limitation or prohibition provided by any
applicable statute or regulation.

         9.3. Headings. Section headings in the Loan Documents are for
convenience of reference only, and shall not govern the interpretation of any of
the provisions of the Loan Documents.

                                       39
<PAGE>

         9.4. Entire Agreement. The Loan Documents embody the entire agreement
and understanding among the Borrower, the Agent, and the Lenders and supersede
all prior agreements and understandings among the Borrower, the Agent, and the
Lenders relating to the subject matter thereof other than those contained in the
fee letter described in Section 10.13 which is the subject of this Agreement,
all of which shall survive and remain in full force and effect during the term
of this Agreement.

         9.5. Several Obligations; Benefits of this Agreement. The respective
obligations of the Lenders hereunder are several and not joint and no Lender
shall be the partner or agent of any other (except to the extent to which the
Agent is authorized to act as such). The failure of any Lender to perform any of
its obligations hereunder shall not relieve any other Lender from any of its
obligations hereunder. This Agreement shall not be construed so as to confer any
right or benefit upon any Person other than the parties to this Agreement and
their respective successors and assigns, provided, however, that the parties
hereto expressly agree that the Arranger shall enjoy the benefits of the
provisions of Sections 9.6, 9.10 and 10.11 to the extent specifically set forth
therein and shall have the right to enforce such provisions on its own behalf
and in its own name to the same extent as if it were a party to this Agreement.

         9.6. Expenses; Indemnification.

         (i)      The Borrowers and the Partnership shall reimburse the Agent
                  and the Arranger for any costs, internal charges and
                  out-of-pocket expenses (including attorneys' fees and time
                  charges of attorneys for the Agent, which attorneys may be
                  employees of the Agent) paid or incurred by the Agent in
                  connection with the preparation, negotiation, execution,
                  delivery, syndication, distribution (including, without
                  limitation, via the internet), review, amendment,
                  modification, and administration of the Loan Documents. The
                  Borrowers and the Partnership also agree to reimburse the
                  Agent, and the Lenders for any costs, internal charges and
                  out-of-pocket expenses (including attorneys' fees and time
                  charges of attorneys for the Agent, and the Lenders, which
                  attorneys may be employees of the Agent, or the Lenders) paid
                  or incurred by the Agent, the Arranger, or any Lender in
                  connection with the collection and enforcement of the Loan
                  Documents.

         (ii)     The Borrower and the Partnership hereby further agree to
                  indemnify the Agent, each Lender, their respective affiliates,
                  and each of their directors, officers and employees against
                  all losses, claims, damages, penalties, judgments, liabilities
                  and expenses (including, without limitation, all expenses of
                  litigation or preparation therefor whether or not the Agent,
                  the Arranger, any Lender or any affiliate is a party thereto)
                  which any of them may pay or incur arising out of or relating
                  to this Agreement, the other Loan Documents, the transactions
                  contemplated hereby or the direct or indirect application or
                  proposed application of the proceeds of any Advance hereunder
                  except to the extent that they are determined in a final
                  non-appealable judgment by a court of competent jurisdiction
                  to have resulted from the gross negligence or willful
                  misconduct of the party seeking indemnification. The
                  obligations of the Borrower and the Partnership under this
                  Section 9.6 shall survive the termination of this Agreement.

                                       40
<PAGE>

         9.7. Numbers of Documents. All statements, notices, closing documents,
and requests hereunder shall be furnished to the Agent with sufficient
counterparts so that the Agent may furnish one to each of the Lenders.

         9.8. Accounting. Except as provided to the contrary herein, all
accounting terms used herein shall be interpreted and all accounting
determinations hereunder shall be made in accordance with Agreement Accounting
Principles.

         9.9. Severability of Provisions. Any provision in any Loan Document
that is held to be inoperative, unenforceable, or invalid in any jurisdiction
shall, as to that jurisdiction, be inoperative, unenforceable, or invalid
without affecting the remaining provisions in that jurisdiction or the
operation, enforceability, or validity of that provision in any other
jurisdiction, and to this end the provisions of all Loan Documents are declared
to be severable.

         9.10. Nonliability of Lenders. The relationship between the Borrower on
the one hand and the Lenders, and the Agent on the other hand shall be solely
that of borrower and lender. Neither the Agent, the Arranger, nor any Lender
shall have any fiduciary responsibilities to the Borrower, the Partnership or
the REIT. Neither the Agent, the Arranger, nor any Lender undertakes any
responsibility to the Borrower, the Partnership or the REIT to review or inform
them of any matter in connection with any phase of the business or operations of
the Borrower, the Partnership or the REIT. The Borrower, the Partnership and the
REIT agree that neither the Agent, the Arranger, nor any Lender shall have
liability to the Borrower, the Partnership or the REIT (whether sounding in
tort, contract or otherwise) for losses suffered by the Borrower, the
Partnership or the REIT in connection with, arising out of, or in any way
related to, the transactions contemplated and the relationship established by
the Loan Documents, or any act, omission or event occurring in connection
therewith, unless it is determined in a final non-appealable judgment by a court
of competent jurisdiction that such losses resulted from the gross negligence or
willful misconduct of the party from which recovery is sought. Neither the
Agent, the Arranger, nor any Lender shall have any liability with respect to,
and the Borrower, the Partnership or the REIT hereby waive, release and agree
not to sue for, any special, indirect or consequential damages suffered by the
Borrower, the Partnership or the REIT in connection with, arising out of, or in
any way related to the Loan Documents or the transactions contemplated thereby.

         9.11. Confidentiality. Each Lender agrees to hold any confidential
information which it may receive from the Borrower, the Partnership or the REIT
pursuant to this Agreement in confidence, except for disclosure (i) to its
Affiliates and to other Lenders and their respective Affiliates, (ii) to legal
counsel, accountants, and other professional advisors to such Lender or to a
Transferee, (iii) to regulatory officials, (iv) to any Person as requested
pursuant to or as required by law, regulation, or legal process, (v) to any
Person in connection with any legal proceeding to which such Lender is a party,
(vi) to such Lender's direct or indirect contractual counterparties in swap
agreements or to legal counsel, accountants and other professional advisors to
such counterparties, (vii) permitted by Section 12.4 and (viii) to rating
agencies if requested or required by such agencies in connection with a rating
relating to the Advances hereunder.

                                       41
<PAGE>

         9.12. Nonreliance. Each Lender hereby represents that it is not relying
on or looking to any margin stock (as defined in Regulation U of the Board of
Governors of the Federal Reserve System) for the repayment of the Loan.

         9.13. Disclosure. The Borrower, the Partnership the REIT and each
Lender hereby acknowledge and agree that Agent and/or its Affiliates and each
Lender and/or its Affiliates from time to time may hold investments in, make
other loans to or have other relationships with the Borrower, the Partnership
the REIT and their Affiliates.

         9.14. Recourse. The Loans, and all other Obligations shall be full
recourse to the Borrower. The Partnership and the REIT shall have no liability
with respect to the Loans, or any other Obligations except as set forth in the
Guaranty.

                                    ARTICLE X
                                    THE AGENT

         10.1. Appointment; Nature of Relationship. Lehman Commercial Paper Inc.
is hereby appointed by each of the Lenders as its contractual representative
(herein referred to as the "Agent") hereunder and under each other Loan
Document, and each of the Lenders irrevocably authorizes the Agent to act as the
contractual representative of such Lender with the rights and duties expressly
set forth herein and in the other Loan Documents. The Agent agrees to act as
such contractual representative upon the express conditions contained in this
Article X. Notwithstanding the use of the defined term "Agent," it is expressly
understood and agreed that the Agent shall not have any fiduciary
responsibilities to any Lender by reason of this Agreement or any other Loan
Document and that the Agent is merely acting as the contractual representative
of the Lenders with only those duties as are expressly set forth in this
Agreement and the other Loan Documents. In its capacity as the Lenders'
contractual representative, the Agent (i) does not hereby assume any fiduciary
duties to any of the Lenders, (ii) is a "representative" of the Lenders within
the meaning of the term "secured party" as defined in the New York Uniform
Commercial Code and (iii) is acting as an independent contractor, the rights and
duties of which are limited to those expressly set forth in this Agreement and
the other Loan Documents. Each of the Lenders hereby agrees to assert no claim
against the Agent on any agency theory or any other theory of liability for
breach of fiduciary duty, all of which claims each Lender hereby waives.

         10.2. Powers. The Agent shall have and may exercise such powers under
the Loan Documents as are specifically delegated to the Agent by the terms of
each thereof, together with such powers as are reasonably incidental thereto.
The Agent shall have no implied duties to the Lenders, or any obligation to the
Lenders to take any action thereunder except any action specifically provided by
the Loan Documents to be taken by the Agent.

         10.3. General Immunity. Neither the Agent nor any of its directors,
officers, agents or employees shall be liable to the Borrower, the Partnership
the REIT, the Lenders or any Lender for any action taken or omitted to be taken
by it or them hereunder or under any other Loan Document or in connection
herewith or therewith except to the extent such action or inaction is determined
in a final non-appealable judgment by a court of competent jurisdiction to have
arisen from the gross negligence or willful misconduct of such Person.

                                       42
<PAGE>

         10.4. No Responsibility for Loans, Recitals, etc. Neither the Agent nor
any of its directors, officers, agents or employees shall be responsible for or
have any duty to ascertain, inquire into, or verify (a) any statement, warranty
or representation made in connection with any Loan Document or any borrowing
hereunder; (b) the performance or observance of any of the covenants or
agreements of any obligor under any Loan Document, including, without
limitation, any agreement by an obligor to furnish information directly to each
Lender; (c) the satisfaction of any condition specified in Article IV, except
receipt of items required to be delivered solely to the Agent; (d) the existence
or possible existence of any Default or Unmatured Default; (e) the validity,
enforceability, effectiveness, sufficiency or genuineness of any Loan Document
or any other instrument or writing furnished in connection therewith; (f) the
value, sufficiency, creation, perfection or priority of any Lien in any
collateral security; or (g) the financial condition of the Borrower, the
Partnership or the REIT. The Agent shall with reasonable promptness deliver to
the Lenders (unless the Borrower has furnished the same directly to the Lenders)
copies of any materials furnished to the Agent by the Borrower pursuant to the
requirements of this Agreement, including without limitation those provided for
in Sections 6.1, 6.10, 6.11 and 6.12, but the Agent shall have no duty to
disclose to the Lenders information that is not required to be furnished by the
Borrower, the Partnership or the REIT to the Agent at such time, but is
voluntarily furnished by the Borrower, the Partnership or the REIT to the Agent
(either in its capacity as the Agent or in its individual capacity).

         10.5. Action on Instructions of Lenders. The Agent shall in all cases
be fully protected in acting, or in refraining from acting, hereunder and under
any other Loan Document in accordance with written instructions signed by the
Required Lenders, and such instructions and any action taken or failure to act
pursuant thereto shall be binding on all of the Lenders. The Lenders hereby
acknowledge that the Agent shall be under no duty to take any discretionary
action permitted to be taken by it pursuant to the provisions of this Agreement
or any other Loan Document unless it shall be requested in writing to do so by
the Required Lenders. The Agent shall be fully justified in failing or refusing
to take any action hereunder and under any other Loan Document unless it shall
first be indemnified to its satisfaction by the Lenders pro rata against any and
all liability, cost and expense that it may incur by reason of taking or
continuing to take any such action.

         10.6. Employment of Agents and Counsel. The Agent may execute any of
its duties as the Agent hereunder and under any other Loan Document by or
through employees, agents, and attorneys-in-fact and shall not be answerable to
the Lenders, except as to money or securities received by it or its authorized
agents, for the default or misconduct of any such agents or attorneys-in-fact
selected by it with reasonable care. The Agent shall be entitled to advice of
counsel concerning the contractual arrangement between the Agent and the Lenders
and all matters pertaining to the Agent's duties hereunder and under any other
Loan Document.

         10.7. Reliance on Documents; Counsel. The Agent shall be entitled to
rely upon any Note, notice, consent, certificate, affidavit, letter, telegram,
statement, paper or document believed by it to be genuine and correct and to
have been signed or sent by the proper person or persons, and, in respect to
legal matters, upon the opinion of counsel selected by the Agent, which counsel
may be employees of the Agent.

                                       43
<PAGE>

         10.8. Agent's Reimbursement and Indemnification. The Lenders agree to
reimburse and indemnify the Agent ratably in proportion to their respective
Commitments (or, if the Commitments have been terminated, in proportion to their
Commitments immediately prior to such termination) (i) for any amounts not
reimbursed by the Borrower for which the Agent is entitled to reimbursement by
the Borrower under the Loan Documents, (ii) for any other expenses incurred by
the Agent on behalf of the Lenders (and not reimbursed by the Borrower), in
connection with the preparation, execution, delivery, administration and
enforcement of the Loan Documents (including, without limitation, for any
expenses incurred by the Agent in connection with any dispute between the Agent
and any Lender or between two or more of the Lenders) and (iii) for any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind and nature whatsoever which may be
imposed on, incurred by or asserted against the Agent in any way relating to or
arising out of the Loan Documents or any other document delivered in connection
therewith or the transactions contemplated thereby (including, without
limitation, for any such amounts incurred by or asserted against the Agent in
connection with any dispute between the Agent and any Lender or between two or
more of the Lenders), or the enforcement of any of the terms of the Loan
Documents or of any such other documents (but only to the extent not reimbursed
by the Borrower), provided that (i) no Lender shall be liable for any of the
foregoing to the extent any of the foregoing is found in a final non-appealable
judgment by a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of the Agent and (ii) any indemnification
required pursuant to Section 3.5(vii) shall, notwithstanding the provisions of
this Section 10.8, be paid by the relevant Lender in accordance with the
provisions thereof. The obligations of the Lenders under this Section 10.8 shall
survive payment of the Obligations and termination of this Agreement.

         10.9. Notice of Default. The Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Unmatured Default
hereunder (other than a failure to pay any or all of the Obligations from time
to time payable hereunder) or of any Collateral Default unless the Agent has
received written notice from a Lender or the Borrower referring to this
Agreement describing such Default, Unmatured Default, or Collateral Default, and
stating that such notice is a "notice of default". In the event that the Agent
receives such a notice, the Agent shall give prompt notice thereof to the
Lenders.

         10.10. Rights as a Lender. In the event the Agent is a Lender, the
Agent shall have the same rights and powers hereunder and under any other Loan
Document with respect to its Commitment and its Loans as any Lender and may
exercise the same as though it were not the Agent, and the term "Lender" or
"Lenders" shall, at any time when the Agent is a Lender, unless the context
otherwise indicates, include the Agent in its individual capacity. The Agent and
its Affiliates may accept deposits from, lend money to, and generally engage in
any kind of trust, debt, equity or other transaction, in addition to those
contemplated by this Agreement or any other Loan Document, with the Borrower,
the Partnership the REIT or any of their Subsidiaries in which the Borrower, the
Partnership the REIT or such Subsidiary is not restricted hereby from engaging
with any other Person.

         10.11. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent, the Arranger or any other
Lender and based on the financial statements prepared by the Borrower and the
Partnership and such other documents and

                                       44
<PAGE>

information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement and the other Loan Documents. Each Lender
also acknowledges that it will, independently and without reliance upon the
Agent, the Arranger or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement and the
other Loan Documents.

         10.12. Successor Agent. The Agent may resign at any time by giving
written notice thereof to the Lenders and the Borrower, such resignation to be
effective upon the appointment of a successor Agent or, if no successor Agent
has been appointed, forty-five days after the retiring Agent gives notice of its
intention to resign. The Agent may be removed at any time with or without cause
by written notice received by the Agent from the Required Lenders, such removal
to be effective on the date specified by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint, a
successor Agent, be subject to the prior written approval of the Borrower, not
to be unreasonably withheld. If no successor Agent shall have been so appointed
by the Required Lenders within thirty days after the resigning Agent's giving
notice of its intention to resign, then the resigning Agent may appoint, a
successor Agent. Notwithstanding the previous sentence, the Agent may at any
time without the consent of the Borrower, the Partnership the REIT or any
Lender, appoint any of its Affiliates which is a commercial bank as a successor
Agent hereunder. If the Agent has resigned or been removed and no successor
Agent has been appointed, the Lenders may perform all the duties of the Agent
hereunder and the Borrower, the Partnership and the REIT shall make all payments
in respect of the Obligations to the applicable Lender and for all other
purposes shall deal directly with the Lenders. No successor Agent shall be
deemed to be appointed hereunder until such successor Agent has accepted the
appointment. Any such successor Agent shall be a commercial bank having capital
and retained earnings of at least $100,000,000. Upon the acceptance of any
appointment as Agent hereunder by a successor Agent, such successor Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the resigning or removed Agent. Upon the effectiveness of the
resignation or removal of the Agent, the resigning or removed Agent shall be
discharged from its duties and obligations hereunder and under the Loan
Documents. After the effectiveness of the resignation or removal of an Agent,
the provisions of this Article X shall continue in effect for the benefit of
such Agent in respect of any actions taken or omitted to be taken by it while it
was acting as the Agent hereunder and under the other Loan Documents.

         10.13. Agent Fees. The Borrower agrees to pay to the Agent the fees
agreed to by the Borrower, the Partnership the REIT, and the Agent from time to
time.

         10.14. Delegation to Affiliates. The Borrower, the Partnership the REIT
and the Lenders agree that the Agent may delegate any of its duties under this
Agreement to any of its Affiliates and, notwithstanding anything to the contrary
in Section 10.12, resign as Agent and appoint any of its Affiliates as a
successor Agent. Any such Affiliate (and such Affiliate's directors, officers,
agents and employees) which performs duties in connection with this Agreement
shall be entitled to the same benefits of the indemnification, waiver and other
protective provisions to which the Agent is entitled under Articles IX and X.

                                       45
<PAGE>

                                   ARTICLE XI
                            SETOFF; RATABLE PAYMENTS

         11.1. Setoff. In addition to, and without limitation of, any rights of
the Lenders under applicable law, if the Borrower becomes insolvent, however
evidenced, or any Default occurs, any and all deposits (including all account
balances, whether provisional or final and whether or not collected or
available) and any other Indebtedness at any time held or owing by any Lender or
any Affiliate of any Lender to or for the credit or account of the Borrower may
be offset and applied toward the payment of the Obligations owing to such
Lender, whether or not the Obligations, or any part thereof, shall then be due.

         11.2. Ratable Payments. If any Lender, whether by setoff or otherwise,
has payment made to it upon its Pro Rata Share of the Loan (other than payments
received pursuant to Section 3.1, 3.2, 3.4 or 3.5 in a greater proportion than
that received by any other Lender, such Lender agrees, promptly upon demand, to
purchase a portion of the Aggregate Outstanding Credit Exposure held by the
other Lenders so that after such purchase each Lender will hold its Pro Rata
Share of the Aggregate Outstanding Credit Exposure ratable proportion of Loans.
If any Lender, whether in connection with setoff or amounts which might be
subject to setoff or otherwise, receives collateral or other protection for its
Obligations or such amounts which may be subject to setoff, such Lender agrees,
promptly upon demand, to take such action necessary such that all Lenders share
in the benefits of such collateral ratably in proportion to their Loans
respective Pro Rata Shares of the Aggregate Outstanding Credit Exposure. In case
any such payment is disturbed by legal process, or otherwise, appropriate
further adjustments shall be made.

                                   ARTICLE XII
                BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

         12.1. Successors and Assigns. The terms and provisions of the Loan
Documents shall be binding upon and inure to the benefit of the Borrower, the
Partnership the REIT and the Lenders and their respective successors and assigns
permitted hereby, except that (i) neither the Borrower, the Partnership nor the
REIT shall have the right to assign its rights or obligations under the Loan
Documents without the prior written consent of each Lender, (ii) any assignment
by any Lender must be made in compliance with Section 12.3, and (iii) any
transfer by Participation must be made in compliance with Section 12.2. Any
attempted assignment or transfer by any party not made in compliance with this
Section 12.1 shall be null and void, unless such attempted assignment or
transfer is treated as a participation in accordance with Section 12.3.2. The
parties to this Agreement acknowledge that clause (ii) of this Section 12.1
relates only to absolute assignments and this Section 12.1 does not prohibit
assignments creating security interests, including, without limitation, (x) any
pledge or assignment by any Lender of all or any portion of its rights under
this Agreement and any Note to a Federal Reserve Bank or (y) in the case of a
Lender which is a Fund, any pledge or assignment of all or any portion of its
rights under this Agreement and any Note to its trustee in support of its
obligations to its trustee; provided, however, that no such pledge or assignment
creating a security interest shall release the transferor Lender from its
obligations hereunder unless and until the parties thereto have complied with
the provisions of Section 12.3. The Agent may treat the Person which made any
Loan or which holds any Note as the owner thereof for all purposes hereof unless
and until such

                                       46
<PAGE>

Person complies with Section 12.3; provided, however, that the Agent may in its
discretion (but shall not be required to) follow instructions from the Person
which made any Loan or which holds any Note to direct payments relating to such
Loan or Note to another Person. Any assignee of the rights to any Loan or any
Note agrees by acceptance of such assignment to be bound by all the terms and
provisions of the Loan Documents. Any request, authority or consent of any
Person, who at the time of making such request or giving such authority or
consent is the owner of the rights to any Loan (whether or not a Note has been
issued in evidence thereof), shall be conclusive and binding on any subsequent
holder or assignee of the rights to such Loan.

         12.2. Participations.

                  12.2.1. Permitted Participants; Effect. Any Lender may at any
         time sell to one or more banks or other entities ("Participants")
         participating interests in any Outstanding Credit Exposure of such
         Lender, any Note held by such Lender, any Commitment of such Lender or
         any other interest of such Lender under the Loan Documents. In the
         event of any such sale by a Lender of participating interests to a
         Participant, such Lender's obligations under the Loan Documents shall
         remain unchanged, such Lender shall remain solely responsible to the
         other parties hereto for the performance of such obligations, such
         Lender shall remain the owner of its Outstanding Credit Exposure and
         the holder of any Note issued to it in evidence thereof for all
         purposes under the Loan Documents, all amounts payable by the Borrower
         under this Agreement shall be determined as if such Lender had not sold
         such participating interests, and the Borrower, the Partnership the
         REIT and the Agent shall continue to deal solely and directly with such
         Lender in connection with such Lender's rights and obligations under
         the Loan Documents.

                  12.2.2. Voting Rights. Each Lender shall retain the sole right
         to approve, without the consent of any Participant, any amendment,
         modification or waiver of any provision of the Loan Documents other
         than any amendment, modification or waiver with respect to any Credit
         Exposure or Commitment in which such Participant has an interest which
         would require consent of all of the Lenders pursuant to the terms of
         Section 8.2 or of any other Loan Document.

                  12.2.3. Benefit of Certain Provisions. The Borrower agrees
         that each Participant shall be deemed to have the right of setoff
         provided in Section 11.1 in respect of its participating interest in
         amounts owing under the Loan Documents to the same extent as if the
         amount of its participating interest were owing directly to it as a
         Lender under the Loan Documents, provided that each Lender shall retain
         the right of setoff provided in Section 11.1 with respect to the amount
         of participating interests sold to each Participant. The Lenders agree
         to share with each Participant, and each Participant, by exercising the
         right of setoff provided in Section 11.1, agrees to share with each
         Lender, any amount received pursuant to the exercise of its right of
         setoff, such amounts to be shared in accordance with Section 11.2 as if
         each Participant were a Lender. The Borrower further agrees that each
         Participant shall be entitled to the benefits of Sections 3.1, 3.2, 3.4
         and 3.5 to the same extent as if it were a Lender and had acquired its
         interest by assignment pursuant to Section 12.3, provided that (i) a
         Participant shall not be entitled to receive any greater payment under
         Section 3.1, 3.2 or 3.5 than the Lender who sold the participating
         interest to such Participant would have received had it retained such

                                       47
<PAGE>

         interest for its own account, unless the sale of such interest to such
         Participant is made with the prior written consent of the Borrower, and
         (ii) any Participant not incorporated under the laws of the United
         States of America or any State thereof agrees to comply with the
         provisions of Section 3.5 to the same extent as if it were a Lender.

         12.3. Assignments.

                  12.3.1. Permitted Assignments. Any Lender may, in the ordinary
         course of its business and in accordance with applicable law, at any
         time assign to one or more banks or other entities ("Purchasers") all
         or any part of its rights and obligations under the Loan Documents.
         Such assignment shall be substantially in the form of Exhibit B (the
         "Assignment and Assumption") or in such other form as may be agreed to
         by the parties thereto. The consent of the Agent shall be required
         prior to an assignment becoming effective with respect to a Purchaser
         which is not a Lender or an Affiliate thereof. Such consents shall not
         be unreasonably withheld or delayed. Each such assignment with respect
         to a Purchaser which is not a Lender or an Affiliate thereof shall
         (unless the Agent otherwise consents) be in an amount not less than the
         lesser of (i) $10,000,000 or (ii) the remaining amount of the assigning
         Lender's Commitment (calculated as at the date of such assignment) or
         outstanding Loans (if the applicable Commitment has been terminated).

                  12.3.2. Notice of Assignment. Upon (i) delivery to the Agent
         of an executed Assignment and Assumption, together with any consents
         required by Section 12.3.1, and (ii) payment of a $4,000 fee to the
         Agent for processing such assignment, such assignment shall become
         effective on the effective date specified in the Assignment and
         Assumption. On and after the effective date of such assignment, such
         Purchaser shall for all purposes be a Lender party to this Agreement
         and any other Loan Document executed by or on behalf of the Lenders and
         shall have all the rights and obligations of a Lender under the Loan
         Documents, to the same extent as if it were an original party hereto,
         and no further consent or action by the Borrower, the Partnership, the
         REIT, the Lenders or the Agent shall be required to release the
         transferor Lender with respect to the percentage of the Aggregate
         Commitment and Outstanding Credit Exposure assigned to such Purchaser.
         Upon the consummation of any assignment to a Purchaser pursuant to this
         Section 12.3.2, the transferor Lender, the Agent and the Borrower
         shall, if the transferor Lender or the Purchaser desires that its Loans
         be evidenced by Notes, make appropriate arrangements so that new Notes
         or, as appropriate, replacement Notes are issued to such transferor
         Lender and new Notes or, as appropriate, replacement Notes, are issued
         to such Purchaser, in each case in principal amounts reflecting their
         respective Commitments, as adjusted pursuant to such assignment.

                  12.3.3. Register. The Agent, acting solely for this purpose as
         an agent of the Borrower, shall maintain at one of its offices in New
         York, New York a copy of each Assignment and Assumption delivered to it
         and a register for the recordation of the names and addresses of the
         Lenders, and the Commitments of, and principal amounts of the Loans
         owing to, each Lender pursuant to the terms hereof from time to time
         (the "Register"). The entries in the Register shall be conclusive, and
         the Borrower, the Agent and the Lenders may treat each Person whose
         name is recorded in the Register pursuant

                                       48
<PAGE>

         to the terms hereof as a Lender hereunder for all purposes of this
         Agreement, notwithstanding notice to the contrary. The Register shall
         be available for inspection by the Borrower and any Lender, at any
         reasonable time and from time to time upon reasonable prior notice.

         12.4. Dissemination of Information. The Borrower, the Partnership and
the REIT hereby authorize each Lender to disclose to any Participant or
Purchaser or any other Person acquiring an interest in the Loan Documents by
operation of law (each a "Transferee") and any prospective Transferee any and
all information in such Lender's possession concerning the creditworthiness of
the Borrower, the Partnership and the REIT, including without limitation any
information contained in any Reports; provided that each Transferee and
prospective Transferee agrees to be bound by Section 9.11 of this Agreement.

         12.5. Tax Treatment. If any interest in any Loan Document is
transferred to any Transferee which is not incorporated under the laws of the
United States or any State thereof, the transferor Lender shall cause such
Transferee, concurrently with the effectiveness of such transfer, to comply with
the provisions of Section 3.5(iv).

                                  ARTICLE XIII
                                     NOTICES

         13.1. Notices. Except as otherwise permitted by Section 2.12 with
respect to borrowing notices, all notices, requests and other communications to
any party hereunder shall be in writing (including electronic transmission,
facsimile transmission or similar writing) and shall be given to such party: (x)
in the case of the Borrower, the Partnership the REIT or the Agent, at its
address or facsimile number set forth on the signature pages hereof, (y) in the
case of any Lender, at its address or facsimile number set forth below its
signature hereto or (z) in the case of any party, at such other address or
facsimile number as such party may hereafter specify for the purpose by notice
to the Agent and the Borrower in accordance with the provisions of this Section
13.1. Each such notice, request or other communication shall be effective (i) if
given by facsimile transmission, when transmitted to the facsimile number
specified in this Section and confirmation of receipt is received, (ii) if given
by mail, 72 hours after such communication is deposited in the mails with first
class postage prepaid, addressed as aforesaid, or (iii) if given by any other
means, when delivered (or, in the case of electronic transmission, received) at
the address specified in this Section; provided that notices to the Agent under
Article II shall not be effective until received.

         13.2. Change of Address. The Borrower, the Partnership the REIT, the
Agent and any Lender may each change the address for service of notice upon it
by a notice in writing to the other parties hereto.

                                   ARTICLE XIV
                                  COUNTERPARTS

         This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one agreement, and any of the parties
hereto may execute this Agreement by signing any such counterpart. This
Agreement shall be effective when it has been

                                       49
<PAGE>

executed by the Borrower, the Partnership the REIT, the Agent, and the Lenders
and each party has notified the Agent by facsimile transmission or telephone
that it has taken such action.

                                   ARTICLE XV
          CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

         15.1. CHOICE OF LAW. THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A
CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE CONSTRUED IN ACCORDANCE WITH
THE INTERNAL LAWS OF THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS
APPLICABLE TO NATIONAL BANKS.

         15.2. CONSENT TO JURISDICTION. THE BORROWER, THE PARTNERSHIP, AND THE
REIT HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED
STATES FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS AND THE
BORROWER, THE PARTNERSHIP AND THE REIT HEREBY IRREVOCABLY AGREE THAT ALL CLAIMS
IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH
COURT AND IRREVOCABLY WAIVE ANY OBJECTION THEY MAY NOW OR HEREAFTER HAVE AS TO
THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT
SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE
AGENT, OR ANY LENDER TO BRING PROCEEDINGS AGAINST THE BORROWER OR THE REIT IN
THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY THE BORROWER OR
THE REIT AGAINST THE AGENT, OR ANY LENDER OR ANY AFFILIATE OF THE AGENT, OR ANY
LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF,
RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT
IN NEW YORK, NEW YORK.

         15.3. WAIVER OF JURY TRIAL. THE BORROWER, THE PARTNERSHIP THE REIT, THE
AGENT, AND EACH LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING
INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH
ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.

                                       50
<PAGE>

         IN WITNESS WHEREOF, the Borrower, the Partnership, the REIT, the
Lenders and the Agent have executed this Agreement as of the date first above
written.

                                       Sun Financial Texas Limited Partnership,
                                       a Michigan limited partnership

                                       By:  Sun Texas QRS, Inc., a Michigan
                                            corporation, its general partner

                                            By:   /s/ Jeffrey P. Jorissen
                                                 -------------------------------
                                                 Name:   Jeffrey P. Jorissen
                                                 Title:  Chief Financial Officer

                                       Sun Financial Texas Limited Partnership
                                       31700 Middlebelt Road, Suite 145
                                       Farmington Hills, Michigan 48334
                                       Telecopier Number: (810) 932-3072
                                       Attention:  Jeffrey P. Jorissen

With a copy to:                        Jaffe, Raitt, Heuer & Weiss
                                       One Woodward Avenue, Suite 2400
                                       Detroit, Michigan 48226
                                       Telecopier Number:  (313) 961-8358
                                       Attention: Arthur A. Weiss, Esq.

<PAGE>
                                       SUN FINANCIAL, LLC, a Michigan limited
                                       liability company

                                       By:  Sun Communities Operating Limited
                                            Partnership, a Michigan limited
                                            partnership, its member

                                            By:  Sun Communities, Inc., a
                                                 Maryland corporation, its
                                                 general partner

                                                 By:   /s/ Jeffrey P. Jorissen
                                                      --------------------------
                                                      Name:  Jeffrey P. Jorissen
                                                      Title: Chief Financial
                                                             Officer

                                       Sun Financial, LLC
                                       31700 Middlebelt Road, Suite 145
                                       Farmington Hills, Michigan 48334
                                       Telecopier Number:  (810) 932-3072
                                       Attention:  Jeffrey P. Jorissen

With a copy to:                        Jaffe, Raitt, Heuer & Weiss
                                       One Woodward Avenue, Suite 2400
                                       Detroit, Michigan 48226
                                       Telecopier Number: (313) 961-8358
                                       Attention: Arthur A. Weiss, Esq.

<PAGE>

                                       SUN COMMUNITIES OPERATING LIMITED
                                       PARTNERSHIP

                                       By:  Sun Communities, Inc., its general
                                            partner

                                            By:   /s/ Jeffrey P. Jorissen
                                                 -------------------------------
                                                 Jeffrey P. Jorissen
                                                 Title: Chief Financial Officer

                                       Sun Communities Operating Limited
                                       Partnership
                                       31700 Middlebelt Road, Suite 145
                                       Farmington Hills, Michigan 48334
                                       Telecopier Number: (810) 932-3072
                                       Attention: Jeffrey P. Jorissen

With a copy to:                        Jaffe, Raitt, Heuer & Weiss
                                       One Woodward Avenue, Suite 2400
                                       Detroit, Michigan 48226
                                       Telecopier Number: (313) 961-8358
                                       Attention: Arthur A. Weiss, Esq.

                                       SUN COMMUNITIES, INC.

                                       By:   /s/ Jeffrey P. Jorissen
                                            ------------------------------------
                                            Jeffrey P. Jorissen
                                            Title: Chief Financial Officer

                                       Sun Communities, Inc.
                                       31700 Middlebelt Road, Suite 145
                                       Farmington Hills, Michigan 48334
                                       Telecopier Number: (810) 932-3072
                                       Attention: Jeffrey P. Jorissen

With a copy to:                        Jaffe, Raitt, Heuer & Weiss
                                       One Woodward Avenue, Suite 2400
                                       Detroit, Michigan 48226
                                       Telecopier Number: (313) 961-8358
                                       Attention: Arthur A. Weiss, Esq.

<PAGE>

                                       Lehman Commercial Paper Inc.

                                       By:   /s/ Francis X. Gilhool
                                            --------------------------
                                            Name:  Francis X. Gilhool
                                            Title: Authorized Signatory

With a copy to:                        Lehman Commercial Paper Inc.
                                       745 Seventh Avenue, 16th Floor
                                       New York, New York 10019
                                       Telecopier Number: (212) 526-6643
                                       Attention: Diane Albanese

                                       Lehman Brothers Inc.
                                       399 Park Avenue, 8th Floor
                                       New York, New York 10022
                                       Telecopier Number: (646) 758-4672
                                       Attention: Thomas Buffa

With copy to:                          Thacher Proffitt & Wood
                                       11 West 42nd Street
                                       New York, New York 10036
                                       Telecopier Number: (212) 789-3500
                                       Attention: Mitchell G. Williams

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