Document:

EXHIBIT 10.8

                         RECKSON ASSOCIATES REALTY CORP.

                     SUPPLEMENT TO THE AMENDED AND RESTATED
                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF

                       RECKSON OPERATING PARTNERSHIP, L.P.

                                  ESTABLISHING
            SERIES F JUNIOR PARTICIPATING PREFERRED PARTNERSHIP UNITS
                                       OF

                          LIMITED PARTNERSHIP INTEREST

         In  accordance  with  Sections  4.2 and 14.1  B(3) of the  Amended  and
Restated Agreement of Limited Partnership,  dated as of June 2, 1995, as amended
on  December  6,  1995,  April 13,  1998,  June 30,  1998 and May 24,  1999 (the
"Partnership  Agreement"),  the Partnership  Agreement is hereby supplemented to
establish  a series of up to  100,000  preferred  units of  limited  partnership
interest of Reckson Operating Partnership,  L.P. (the "Partnership") which shall
be designated "Series F Junior Participating Preferred Units" having the rights,
preferences, powers, privileges and restrictions, qualifications and limitations
substantially  similar to those  granted to or imposed  upon the Series C Junior
Participating  Preferred  Stock,  par value $.01 per share  ("Series C Preferred
Stock") of Reckson  Associates  Realty Corp. (the "Company") as set forth in the
Articles Supplementary adopted the Company and filed with the Secretary of State
of the State of Maryland which shall be issued to the Company.

         Capitalized  terms used and not otherwise defined herein shall have the
meanings set forth in the Partnership Agreement.

         WHEREAS, the Partnership  and  American  Stock Transfer & Trust Company
("Rights Agent")   have   entered   into  a   Rights   Agreement   dated  as  of
January 3, 2000 ("Partnership Rights Agreement");

         WHEREAS,  concurrently  with the entering  into of  Partnership  Rights
Agreement the  Partnership  shall declare and make a distribution to the holders
of  Class A  Common  Partnership  Units of one  Right  for  each  Class A Common
Partnership Unit held; and

         WHEREAS,  pursuant to Section  4.2 of the  Partnership  Agreement,  the
Partnership  desires to designate  the Series F Junior  Participating  Preferred
Units with substantially  similar  designation,  preferences and other rights to
the Series C Preferred Stock;

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<PAGE>

         NOW  THEREFORE,  in  consideration  of the mutual  covenants  contained
herein, and other good and valuable  consideration,  the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as follows:

         Section  1.  Designation  of  Series F Junior  Participating  Preferred
Units.

         Pursuant to Section 4.2 of the Partnership  Agreement,  the Partnership
hereby designates 100,000 additional partnership units which shall be the Series
F Junior  Participating  Preferred  Units.  The  Series  F Junior  Participating
Preferred Units will have  substantially the same  designation,  preferences and
other rights of the Series C Preferred Stock, as specified in this amendment and
in Exhibit I hereto.

         Section 2. Amendment to Partnership Agreement.

         Pursuant to Section 14.1.B(3) of the Partnership Agreement, the General
Partner, as general partner of the Partnership and as  attorney-in-fact  for its
Limited Partners, hereby amends the Partnership Agreement as follows:

         (a) Article 1 of the Partnership  Agreement is hereby amended by adding
         the following definition of "Series F Preferred Units":

         "Series F  Preferred  Units"  means the  units of  limited  partnership
         interest  designated  by the  Partnership  as of October 13,  2000,  in
         connection  with the designation of the Series C Preferred Stock by the
         Company.

         Section 3. Continuation of Partnership Agreement.

         The Partnership Agreement and this Amendment shall be read together and
shall  have the same force and effect as if the  provisions  of the  Partnership
Agreement and this Amendment  were contained in one document.  Any provisions of
the  Partnership  Agreement not amended by this  Amendment  shall remain in full
force and effect as provided in the Partnership  Agreement  immediately prior to
the date hereof.

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<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Supplement to
the Partnership Agreement as of the 13th day of October, 2000.

                                         GENERAL PARTNER
                                         RECKSON ASSOCIATES REALTY CORP.
                                         By:  __________________________________
                                              Name:
                                              Title:

                                         EXISTING LIMITED PARTNERS

         By:  Reckson Associates Realty Corp.,
                  as Attorney-in-Fact for the Limited
                  Partners

                                         By:  __________________________________
                                              Name:
                                              Title:

                                         SERIES F JUNIOR PARTICIPATING
                                         PREFERRED UNIT HOLDER
                                         RECKSON ASSOCIATES REALTY CORP.

                                         By:  __________________________________
                                              Name:
                                              Title:

                                       3
<PAGE>

                                    Exhibit I

         RECKSON OPERATING  PARTNERSHIP,  L.P. DESIGNATION OF THE VOTING POWERS,
DESIGNATIONS,  PREFERENCES AND RELATIVE,  PARTICIPATING AND OTHER SPECIAL RIGHTS
AND  QUALIFICATIONS,  LIMITATIONS,  OR  RESTRICTIONS  OF  THE  SERIES  F  Junior
Participating PREFERRED PARTNERSHIP UNITS.

         The following are the terms of the Series F Junior Participating Junior
Participating   Preferred   Partnership  Units  established   pursuant  to  this
Amendment:

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<PAGE>

            SERIES F JUNIOR PARTICIPATING PREFERRED PARTNERSHIP UNITS

         1.       Designation and Number.

         A series of preferred units of the Partnership,  designated the "Series
F Junior  Participating  Preferred  Units" (the  "Series F Preferred  Units") is
hereby  established.  The number the Series F Preferred  Units shall be 100,000.
Such number of units may be  increased or  decreased  at the  discretion  of the
General Partner; provided,  however, that no decrease shall reduce the number of
Series C  Preferred  Units to a number  less than that of the Series F Preferred
Units then outstanding plus the number of Series C Preferred Units issuable upon
exercise  of  outstanding  rights,  options or warrants  or upon  conversion  of
outstanding securities issued by the Partnership.

         2.       Distributions.

                  (a) The holders of Series F Preferred  Units shall be entitled
to receive, when, as and if declared by the General Partner out of funds legally
available for the purpose,  quarterly  distributions payable in cash January 31,
April 30, July 31 and October 31 in each year (each such date being  referred to
herein as a "Quarterly  Distribution  Payment  Date"),  commencing  on the first
Quarterly  Distribution  Payment  Date  after the  first  issuance  (the  "First
Issuance")  of a unit or fraction of a unit of Series F Preferred  Units,  in an
amount per unit (rounded to the nearest cent) equal to the greater of (i) $10.00
and (ii) 1,000 times the aggregate per unit amount of all cash distributions and
1,000  times the  aggregate  per unit amount  (payable in kind) of all  non-cash
distributions,  other than a distribution  payable in Class A Common Partnership
Units or by way of a subdivision of the outstanding  Class A Common  Partnership
Units,  declared on the Class A Common  Partnership Units, since the immediately
preceding  Quarterly  Distribution  Payment Date,  or, with respect to the first
Quarterly  Distribution  Payment Date,  since the first  issuance of any unit or
fraction of a unit of Series F  Preferred  Units.  In the event the  Partnership
shall at any time after the First Issuance  declare or pay any  distribution  on
the  Class A Common  Partnership  Units  payable  in Class A Common  Partnership
Units,  or  effect  a  subdivision  or  combination  or   consolidation  of  the
outstanding Class A Common Partnership Units (by  reclassification  or otherwise
than by payment of a distribution  of Class A Common  Partnership  Units) into a
greater or lesser number of Class A Common  Partnership Units, then in each such
case the amount to which  holders  of Series F  Preferred  Units  were  entitled
immediately  prior to such event under the preceding  sentence shall be adjusted
by multiplying  such amount by a fraction,  the numerator of which is the number
of Class A Common Partnership Units outstanding immediately after such event and
the denominator of which is the number of Class A Common  Partnership Units that
were outstanding immediately prior to such event.

                  (b) On or after the First Issuance, no distribution on Class A
Common  Partnership  Units shall be  declared  unless  concurrently  therewith a
distribution  is  declared  on the  Series  F  Preferred  Units as  provided  in
paragraph (a) above; and the declaration of any such distribution on the Class A
Common  Partnership  Units  shall  be

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<PAGE>

expressly  conditioned  upon  payment  or declaration  of  and  provision  for a
distribution on the Series F Preferred Units as above provided.  In the event no
distribution shall have been declared on  the Class A Common  Partnership  Units
during the period between  any Quarterly  Distribution Payment Date and the next
subsequent Quarterly  Distribution  Payment Date, a  distribution  of $10.00 per
unit  on  the  Series F Preferred  Units shall  nevertheless  be payable on such
subsequent Quarterly Distribution Payment Date.

                  (c) Whenever  quarterly  distributions or other  distributions
payable on the Series F Preferred  Units as provided in paragraph  (a) above are
in arrears,  thereafter and until all accrued and unpaid distributions,  whether
or not declared, on Series F Preferred Units outstanding shall have been paid in
full,  the  Partnership  shall not redeem or purchase or  otherwise  acquire for
consideration  units of any ranking  junior (either as to  distribution  or upon
liquidation,  dissolution  or  winding  up) to the  Series  F  Preferred  Units,
provided  that the  Partnership  may at any time  redeem,  purchase or otherwise
acquire  units  of any  such  junior  units  in  exchange  for any  units of the
Partnership   ranking  junior  (as  to  distributions   and  upon   dissolution,
liquidation or winding up) to the Series F Preferred Units.

                  (d)  Distributions  shall begin to accrue and be cumulative on
outstanding  Series F Preferred  Units from the Quarterly  Distribution  Payment
Date next preceding the date of issue of such Series F Preferred  Units,  unless
the date of issue of such  units  is  prior  to the  record  date for the  first
Quarterly  Distribution  Payment Date, in which case distributions on such units
shall begin to accrue  from the date of issue of such units,  or unless the date
of issue is a Quarterly  Distribution Payment Date or is a date after the record
date for the  determination  of holders of Series F Preferred  Units entitled to
receive a quarterly  distribution and before such Quarterly Distribution Payment
Date, in either of which events such distributions  shall begin to accrue and be
cumulative  from such Quarterly  Distribution  Payment Date.  Accrued but unpaid
distributions shall not bear interest. The General Partner may fix a record date
for the determination of holders of Series F Preferred Units entitled to receive
payment of a distribution  declared thereon,  which record date shall be no more
than 30 days prior to the date fixed for the payment thereof.

         3.       Dissolution, Liquidation and Winding Up.

         In the event of any voluntary or involuntary  dissolution,  liquidation
or winding up of the affairs of the  Partnership  (hereinafter  referred to as a
"Liquidation"),  the  holders of Series F  Preferred  Units shall be entitled to
receive the greater of (a) $10.00 per unit,  plus an amount equal to accrued and
unpaid  distributions  thereon,  whether  or not  declared,  to the date of such
payment and (b) the aggregate amount per unit equal to 1,000 times the aggregate
amount  to be  distributed  per unit to  holders  of Class A Common  Partnership
Units. In the event the  Partnership  shall at any time after the First Issuance
declare or pay any distribution on the Class A Common  Partnership Units payable
in Class A Common  Partnership  Units, or effect a subdivision or combination or
consolidation  of  the

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<PAGE>

outstanding Class A Common Partnership Units (by reclassification  or  otherwise
than by way of distribution  in Class A Common Partnership Units) into a greater
or lesser number of Class A Common Partnership Units, then in each such case the
aggregate  amount to which holders of  Series F Preferred  Units  were  entitled
immediately  prior to such  event under the preceding sentence shall be adjusted
by multiplying such amount by a fraction the numerator of which is the number of
Class A  Common Partnership Units outstanding  immediately after  such event and
the denominator of which is the number of Class A Common Partnership  Units that
were outstanding immediately prior to such event.

         4.       Voting Rights.

         The holders of Series F Preferred Units shall have the following voting
rights:

                  (a) Each  Series F  Preferred  Unit shall  entitle  the holder
thereof to one thousand (1,000) votes on all matters  submitted to a vote of the
unitholders of the Partnership.  In the event the Partnership  shall at any time
after the First Issuance  declare or pay any  distribution on the Class A Common
Partnership  Units  payable  in Class A Common  Partnership  Units,  or effect a
subdivision or combination or consolidation of the outstanding  units of Class A
Common Partnership Units (by  reclassification or otherwise than by payment of a
distribution  in Class A Common  Partnership  Units)  into a  greater  or lesser
number of units of Class A Common  Partnership Units, then in each such case the
aggregate  number of votes to which  holders  of Series F  Preferred  Units were
entitled  immediately prior to such event under the preceding  sentence shall be
adjusted by multiplying  such number by a fraction the numerator of which is the
number of Class A Common  Partnership Units  outstanding  immediately after such
event and the  denominator of which is the number of Class A Common  Partnership
Units that were outstanding immediately prior to such event.

                  (b)  Except as  otherwise  provided  herein,  or by law or the
Partnership  Agreement,  the holders of Series F Preferred Units and the holders
of Class A Common  Partnership  Units  shall vote  together  as one class on all
matters submitted to a vote of unitholders of the Partnership.

                  (c) Except as otherwise set forth herein or required by law or
the  Partnership  Agreement,  holders of Series F Preferred  Units shall have no
special  voting rights and their  consent  shall not be required  (except to the
extent  they are  entitled  to vote with  holders of Class A Common  Partnership
Units as set forth herein) for the taking of any partnership  action. No consent
of the holders of outstanding  Series F Preferred Units at any time  outstanding
shall be required in order to permit the General  Partner to: (i)  increase  the
number of  authorized  Series F Preferred  Units or to decrease such number to a
number  not  below  the sum of the  number  of  Series F  Preferred  Units  then
outstanding  and the number of units with respect to which there are outstanding
rights to purchase;  or (ii) issue preferred  partnership units which are senior
to the Series F Preferred Units,  junior to the Series F Preferred Units or on a
parity with the Series F Preferred Units.

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<PAGE>

         5.       Consolidation, Merger, etc.

         In case the  Partnership  shall enter into any  consolidation,  merger,
combination or other  transaction in which the Class A Common  Partnership Units
are  exchanged  for or changed  into  other  securities,  cash  and/or any other
property,  then in any such case each Series F Preferred  Unit shall at the same
time be similarly  exchanged or changed into an amount per unit,  subject to the
provision  for  adjustment  hereinafter  set  forth,  equal to 1,000  times  the
aggregate  amount of  securities,  cash  and/or any other  property  (payable in
kind),  as the  case  may be,  into  which  or for  which  each  Class A  Common
Partnership Unit is changed or exchanged.  In the event the Partnership shall at
any time after the First Issuance declare or pay any distribution on the Class A
Common  Partnership Units payable in Class A Common Partnership Units, or effect
a subdivision or combination or consolidation of the outstanding  Class A Common
Partnership  Units  (by  reclassification  or  otherwise  than by  payment  of a
distribution in Class A Common Partnership Unit) into a greater or lesser number
of Class A Common Partnership Units, then in each such case the amount set forth
in the  preceding  sentence  with  respect to the exchange or change of Series F
Preferred Units shall be adjusted by multiplying such amount by a fraction,  the
numerator of which is the number of Class A Common Partnership Units outstanding
immediately after such event and the denominator of which is the number of Class
A Common  Partnership  Units  that were  outstanding  immediately  prior to such
event.

         6.       Redemption.

         The Series F Preferred Units shall not be redeemable.

         7.       Conversion Rights.

         The Series F Preferred  Units are not  convertible  into Class A Common
Partnership Units or any other security of the Partnership.

         8.       Ranking.

         The Series F Preferred Units shall rank junior to all other classes and
series  of the  Partnership's  Preferred  Partnership  Units  as to  payment  of
distributions  and the  distribution  of  assets,  unless  the terms of any such
series shall provide otherwise.

                                       8EXHIBIT 10.49

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

                             SECURED LOAN AGREEMENT

                          dated as of October ___, 2000

                                      among

                        METROPOLITAN 919 3RD AVENUE LLC,
                                  as Borrower,

                      MERRILL LYNCH MORTGAGE CAPITAL INC.,
                    as Lender, Arranger and Syndication Agent

                  BAYERISCHE LANDESBANK, CAYMAN ISLANDS BRANCH,
                      as Lender and Co-Documentation Agent,

               COMMERZBANK AG NEW YORK AND GRAND CAYMAN BRANCHES,
                      as Lender and Co-Documentation Agent

                     WELLS FARGO BANK, NATIONAL ASSOCIATION,
                       as Lender and Administrative Agent

                                       and

                       THE OTHER LENDERS SIGNATORY HERETO,
                                each as a Lender

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

<PAGE>

                  SECURED LOAN  AGREEMENT  dated as of October  ___,  2000 among
METROPOLITAN  919 3RD AVENUE  LLC, a limited  liability  company  organized  and
existing  under the laws of the State of Delaware  ("Borrower"),  MERRILL  LYNCH
MORTGAGE CAPITAL INC. ("Merrill Lynch"),  WELLS FARGO BANK, NATIONAL ASSOCIATION
("Wells  Fargo"),  the other  lenders  signatory  hereto and wells  fargo  Bank,
NATIONAL  ASSOCIATION,  as  Administrative  Agent for Lenders (in such capacity,
together with its successors in such capacity,  "Administrative  Agent"; Merrill
Lynch, the other lenders signatory hereto,  and such other lenders who from time
to time become  Lenders  pursuant to Section 3.07 or 12.05,  each a "Lender" and
collectively, "Lenders").

                  Borrower  desires  that  Lenders  extend  credit  as  provided
herein, and Lenders are prepared to extend such credit.  Accordingly,  Borrower,
Administrative Agent and each Lender agree as follows:

                                   ARTICLE I

                      DEFINITIONS AND CONSTRUCTION OF TERMS

                  Section  1.01  Definitions.  As  used in  this  Agreement  the
following terms have the following meanings:

                  "Account  Assignment"  means  the  Pledge  and  Assignment  of
Accounts,  dated the date hereof, from Borrower to Administrative  Agent whereby
all of Borrower's  right,  title and interest in and to the Debt Service Reserve
Account  and  all  other  reserve,  operating  or  other  accounts  of any  kind
maintained by Borrower in connection with the Property (other than the "Security
Deposit Account",  as defined in the LC Assignment) are assigned as security for
the payment and performance of the Obligations.

                  "Additional Costs" has the meaning specified in Section 3.01.

                  "Adjusted Net Cash Flow" means, for any period,  Net Cash Flow
plus actual interest expense on the Loans for such period.

                  "Adjusted  Pro-Forma  Net  Operating  Income"  means,  for any
prospective twelve (12)-month period,  Pro-Forma Net Operating Income,  adjusted
by assuming  that all tenants  under signed  leases as of the  beginning of such
period are in occupancy and paying  unabated rent (i.e.,  that initial free rent
and build-out periods have expired).

                  "Administrative  Agent"  has  the  meaning  specified  in  the
preamble.

                  "Administrative  Agent's Office" means Administrative  Agent's
office located as set forth on its signature page hereof,  or such other address
in the United States as Administrative Agent may designate by notice to Borrower
and Lenders.

                  "Affected Lender" has the meaning specified in Section 3.07.

<PAGE>

                  "Affected Loan" has the meaning specified in Section 3.04.

                  "Affiliate"  means,  with  respect to any Person  (the  "first
Person"),  any other Person (1) which  directly or  indirectly  controls,  or is
controlled  by, or is under  common  control with the first Person or (2) 10% or
more of the beneficial interest in which is directly or indirectly owned or held
by the first  Person.  The term  "control"  means the  possession,  directly  or
indirectly,  of the  power,  alone,  to  direct or cause  the  direction  of the
management  and policies of a Person,  whether  through the  ownership of voting
securities, by contract, or otherwise.

                  "Applicable Lending Office" means, for each Lender and for its
LIBOR Loan or Base Rate Loan, as  applicable,  the lending office of such Lender
(or of an Affiliate of such Lender)  designated  as such on its  signature  page
hereof or in the applicable Assignment and Assumption  Agreement,  or such other
office of such  Lender (or of an  Affiliate  of such  Lender) as such Lender may
from time to time specify to Administrative  Agent and Borrower as the office by
which  its  LIBOR  Loan or Base  Rate  Loan,  as  applicable,  is to be made and
maintained.

                  "Applicable  Margin" means,  with respect to LIBOR Loans,  the
respective rates per annum determined at any time, based on the ratio (expressed
as a percentage) of the then Principal  Amount to Completed Value, in accordance
with the following table (any change in said ratio to effect an immediate change
in the Applicable Margin):

         RATIO OF PRINCIPAL AMOUNT TO                APPLICABLE MARGIN
               COMPLETED VALUE                         (% PER ANNUM)
               ---------------                         -------------

                  40% or less                                 1.10
         greater than 40%, up to and including 45%            1.15
         greater than 45%, up to and including 50%            1.20
         greater than 50%, up to and including 55%            1.25
         greater than 55%, up to and including 57.5%          1.30
         greater than 57.5%, up to and including 60%          1.35
         greater than 60%, up to and including 62.5%          1.40

                  "Assignee" has the meaning specified in Section 12.05.

                  "Assignment and Assumption  Agreement" means an Assignment and
Assumption Agreement, substantially in the form of EXHIBIT C.

                  "Assignments" means, collectively, the Account Assignment, the
Cap Assignment, the LC Assignment and the Subordinate Mortgage Assignment.

                  "Authorization  Letter" means a letter  agreement  executed by
Borrower in the form of EXHIBIT A.

                  "Base Rate" means,  for any day, the higher of (1) the Federal
Funds Rate for such day plus .50% per annum or (2) the Prime Rate for such day.

                                       2

<PAGE>

                  "Base  Rate Loan"  means all or any  portion  (as the  context
requires) of a Lender's Loan which shall accrue interest at a rate determined in
relation to the Base Rate.

                  "BNP Lease" means the lease dated December 8, 1998 between 919
Associates,  as  landlord,  and BNP  Paribas,  as tenant,  as amended,  covering
approximately 190,000 net rentable square feet of the Improvements,  as assigned
to Borrower by assignment dated as of the date hereof.

                  "Borrower" has the meaning specified in the preamble.

                  "Borrower LC" means  letters of credit,  in form and substance
satisfactory  to the Required  Lenders,  issued by The Chase  Manhattan  Bank or
another  nationally  recognized  bank having a credit rating of no less than AA-
(or the equivalent) from two (2) nationally recognized rating agencies,  for the
benefit of (1) the tenant under the Schulte Lease (in the amount of  $9,536,535)
and  (2)  the  tenant  under  the  Debevoise  Lease  (in  the  amount  of  up to
$18,755,505).  Any such  letter of credit  that is in the form  required  by the
applicable lease shall be deemed to be in form and substance satisfactory to the
Required Lenders

                  "Borrower's Accountants" means Ernst & Young LLP or such other
accounting   firm(s)   selected  by  Borrower  and   reasonably   acceptable  to
Administrative Agent. Administrative Agent hereby acknowledges that Kinsey, Beck
and Company is an accounting firm that is reasonably acceptable.

                  "Business Day" means (1) any day on which commercial banks are
not  authorized  or required to close in New York City or Germany or (so long as
Wells  Fargo is  Administrative  Agent)  in San  Francisco,  California  and (2)
whenever such day relates to a LIBOR Loan, an Interest  Period with respect to a
LIBOR Loan,  or notice with respect to a LIBOR Loan, a day on which  dealings in
Dollar  deposits are also carried out in the London  interbank  market and banks
are open for business in London.

                  "Cap  Assignment" has the meaning  specified in paragraph (27)
of Section 4.01.

                  "Capital  Lease"  means any lease  which has been or should be
capitalized on the books of the lessee in accordance with GAAP.

                  "Cash Flow  Collateral  Account" has the meaning  specified in
Section 8.02.

                  "Closing Date" means the date this Agreement has been executed
by all parties.

                  "Code" means the Internal Revenue Code of 1986.

                                       3

<PAGE>

                  "Completed   Value"  means   $400,000,000,   representing  the
"completed  value" of Borrower's  interest in the Property,  as set forth in the
appraisal delivered pursuant to paragraph (8) of Section 4.01.

                  "Continue",   "Continuation"  and  "Continued"  refer  to  the
continuation  pursuant to Section  2.11 of a LIBOR Loan as a LIBOR Loan from one
Interest Period to the next Interest Period.

                  "Convert",  "Conversion" and "Converted" refer to a conversion
pursuant  to Section  2.11 of a Base Rate Loan into a LIBOR Loan or a LIBOR Loan
into a Base Rate Loan,  each of which may be  accompanied  by the  transfer by a
Lender  (at its  sole  discretion)  of all or a  portion  of its  Loan  from one
Applicable Lending Office to another.

                  "Debevoise  Lease"  means  the lease  dated  August  31,  1998
between 919 Associates,  as landlord,  and Debevoise & Plimpton,  as tenant,  as
amended,  covering  approximately  464,000  net  rentable  square  feet  of  the
Improvements, as assigned to Borrower by assignment dated as of the date hereof.

                  "Debt" means (1) indebtedness or liability for borrowed money,
or for the deferred  purchase price of property or services,  (2) obligations as
lessee under  Capital  Leases,  (3) current  liabilities  in respect of unfunded
vested benefits under any Plan, (4)  obligations  under letters of credit issued
for the account of any Person,  (5) all  obligations  arising under  bankers' or
trade acceptance  facilities,  (6) all guarantees,  endorsements (other than for
collection or deposit in the ordinary course of business),  and other contingent
obligations to purchase any of the items included in this definition, to provide
funds for  payment,  to supply  funds to invest in any Person,  or  otherwise to
assure a  creditor  against  loss,  (7) all  obligations  secured by any Lien on
property  owned by the Person whose Debt is being  measured,  whether or not the
obligations  have been  assumed  and (8) all  obligations  under  any  agreement
providing for contingent  participation or other hedging mechanisms with respect
to  interest  payable on any of the items  described  above in this  definition;
provided,  however,  that Debt shall not  include  (A)  current  trade  accounts
payable and accrued  expenses  (other than for borrowed  money or purchase money
obligations)   incurred   in  the   ordinary   course   of   business   and  (B)
indemnification,  recourse carve-out and similar  contingent  obligations in the
ordinary  course of  business  that are not  assurances  of payment of the items
described in clauses (1) through (8) of this definition.

                  "Debt Service Allocation" has the meaning specified in Section
2.01.

                  "Debt Service Deficiency" has the meaning specified in Section
2.15.

                  "Debt Service  Reserve  Account" has the meaning  specified in
Section 2.15.

                  "Debt Yield" means,  as of any  Determination  Date, the ratio
(expressed as a percentage),  as reasonably  determined by Administrative Agent,
of (1) Adjusted  Pro-Forma  Net  Operating  Income for the  immediately  ensuing
twelve (12)-month period to (2) the Principal Amount on such Determination Date.

                                       4

<PAGE>

                  "Default"  means any event  which with the giving of notice or
lapse of time, or both, would become an Event of Default.

                  "Default  Rate"  means a rate  per  annum  equal  to (1)  with
respect to Base Rate Loans,  a variable  rate 4% above the rate of interest then
in effect thereon and (2) with respect to LIBOR Loans, a fixed rate 4% above the
rate(s) of interest in effect thereon  (including the Applicable  Margin) at the
time of the Event of Default until the end of the then current  Interest  Period
therefor and,  thereafter  during the  continuance  of such Event of Default,  a
variable  rate 4% above the rate of interest for a Base Rate Loan;  in no event,
however, shall the Default Rate exceed the maximum rate permitted by Law.

                  "Delinquency  Amount",  "Delinquency  Notice" and  "Delinquent
Lender" have the respective meanings specified in Section 10.18.

                  "Determination  Date"  means  the  last  day of  any  calendar
quarter during the term of the Loans.

                  "Dollars"  and the sign "$" mean  lawful  money of the  United
States.

                  "DSCR" means,  as of any  Determination  Date,  the ratio,  as
reasonably  determined by  Administrative  Agent, of (1) Adjusted  Pro-Forma Net
Operating  Income for the immediately  ensuing twelve  (12)-month  period to (2)
Projected Actual Debt Service for such Determination Date.

                  "Elect",  "Election" and "Elected" refer to election,  if any,
by Borrower  pursuant to Section 2.11 to have all or a portion of the funding of
the Loans be outstanding as LIBOR Loans.

                  "Electing  Lender",  "Election  Notice" and "Election  Period"
have the respective meanings specified in Section 10.18.

                  "Engineering  Consultant" means AquaTerra  Assessment Services
Corp. or other firm designated by Administrative Agent from time to time.

                  "Environmental  Discharge"  means any  discharge or release of
any Hazardous Materials in violation of any applicable Environmental Law.

                  "Environmental  Indemnity"  means that  certain  Environmental
Indemnity,  dated the date hereof,  from Borrower and  Metropolitan  in favor of
Lenders.

                  "Environmental  Law"  means any  applicable  Law  relating  to
pollution or the environment,  including Laws relating to noise or to emissions,
discharges, releases or threatened releases of Hazardous Materials into the work
place,  the  community  or  the  environment,   or  otherwise  relating  to  the
generation,  manufacture,  processing,  distribution,  use, treatment,  storage,
disposal, transport or handling of Hazardous Materials.

                                       5

<PAGE>

                  "Environmental  Notice"  means any written  complaint,  order,
citation or notice  from any Person (1)  affecting  or  relating  to  Borrower's
compliance  with  any  Environmental  Law in  connection  with any  activity  or
operations at any time conducted by Borrower,  (2) relating to (a) the existence
of  any  Hazardous  Materials  contamination  or  Environmental   Discharges  or
threatened Hazardous Materials contamination or Environmental  Discharges at the
Property  or  (b)  remediation  of  any  Environmental  Discharge  or  Hazardous
Materials at the  Property or any part thereof or (3) relating to any  violation
or alleged violation by Borrower of any relevant Environmental Law.

                  "ERISA" means the Employee  Retirement  Income Security Act of
1974, including the rules and regulations promulgated thereunder.

                  "ERISA  Affiliate" means any corporation  which is a member of
the same controlled group of corporations  (within the meaning of Section 414(b)
of the Code) as Borrower  and/or  Guarantor,  or any trade or business  which is
under  common  control  (within the meaning of Section  414(c) of the Code) with
Borrower and/or Guarantor,  or any organization  which is required to be treated
as a single  employer with Borrower  and/or  Guarantor  under Section  414(m) or
414(o) of the Code.

                  "Event of Default" has the meaning specified in Section 9.01.

                  "Federal  Funds Rate"  means,  for any day, the rate per annum
(expressed on a 360-day basis of calculation)  equal to the weighted  average of
the rates on overnight  federal funds  transactions  as published by the Federal
Reserve  Bank of New York for such day,  provided  that (1) if such day is not a
Business  Day,  the  Federal  Funds Rate for such day shall be such rate on such
transactions  on the immediately  preceding  Business Day as so published on the
next  succeeding  Business Day and (2) if no such rate is so  published  for any
day,  the  Federal  Funds  Rate for such day shall be the  average  of the rates
quoted  by  three  (3)  independent,   unaffiliated  Federal  Funds  brokers  to
Administrative Agent on such day on such transactions.

                  "Financial   Officer"  means,   with  regard  to  Borrower  or
Guarantor,  its chief financial officer,  or any other financial officer holding
at least the rank of vice  president of Reckson  Associates  Realty Corp. or the
successor thereof.

                  "Financial Statements" means, for any Person, a balance sheet,
a  statement  of income and  retained  earnings  and a  statement  of cash flow,
prepared  in  accordance  with GAAP,  together  with (if  applicable)  footnotes
thereto  (except  in that  footnotes  will  not be  required  for the  Financial
Statements of Metropolitan).

                  "Fiscal Year" means each period from January 1 to December 31.

                  "GAAP" means generally accepted  accounting  principles in the
United States as in effect from time to time, consistently applied.

                  "Good Faith  Contest"  means the contest of an item if (1) the
item is diligently contested in good faith, and, if appropriate,  by proceedings
timely  instituted,  (2) adequate  reserves are established  with respect to the
contested  item, (3) during the period of such contest,  the  enforcement of any
contested item is  effectively  stayed and (4) the failure to pay or comply with
the contested  item during the period of the contest is not likely to (x) result
in a  Material  Adverse  Change or (y) have an adverse  effect on the  Mortgaged
Property, or on Lenders' interest therein.

                                       6

<PAGE>

                  "Governmental  Approvals"  means any  authorization,  consent,
approval,  license,  permit,  certification,  or exemption of,  registration  or
filing with or report or notice to, any Governmental Authority.

                  "Governmental  Authority" means any nation or government,  any
state  or  other  political  subdivision  thereof,  and  any  entity  exercising
executive,  legislative,  judicial, regulatory or administrative functions of or
pertaining to government.

                  "Ground  Lease"  has the  meaning  given  to such  term in the
Mortgage. the Ground Lease covers a portion of the Property.

                  "Guarantor" means, individually and collectively, Metropolitan
and Reckson  (Metropolitan  being the guarantor under the Guaranty and Indemnity
Agreement  and Reckson being the  guarantor  under the Guaranty of  Completion);
provided,  however,  that at such time,  if any, as the  Guaranty of  Completion
terminates as provided therein, Reckson shall cease to be a Guarantor hereunder.

                  "Guaranty of  Completion"  means the Guaranty of Completion in
respect of the Work, dated the date hereof, from Reckson to Lenders.

                  "Guaranty  and  Indemnity  Agreement"  means the  Guaranty and
Indemnity Agreement in respect of certain matters pertaining to the Loans, dated
the date hereof, from Metropolitan to Lenders.

                  "Hazardous   Materials"   means  any   pollutant,   effluents,
emissions,  contaminants,  toxic or hazardous  wastes or  substances,  as any of
those terms are defined from time to time in or for the purposes of any relevant
Environmental   Law,   including   asbestos   fibers   and   friable   asbestos,
polychlorinated  biphenyls,  and any petroleum or hydrocarbon-based  products or
derivatives,  but shall not include materials (1) used or stored at the Property
by tenants of the Property in the ordinary course of business in conformity with
their respective leases or (2) customarily used in the day-to-day  operation and
maintenance of the Property,  such as cleaning fluids,  in each case only to the
extent such  materials  are stored,  used and  disposed  of in  accordance  with
applicable Environmental Laws.

                  "Holdback Release DSCR" means, as of any  Determination  Date,
the ratio, as reasonably  determined by  Administrative  Agent, of (1) Pro-Forma
Net Operating  Income for the  immediately  ensuing twelve (12)- month period to
(2) Hypothetical Annual Debt Service for such Determination Date.

                  "Hypothetical   Annual  Debt   Service"   means,   as  of  any
Determination Date, the greater of

                                       7

<PAGE>

                       (i) the product of (A) the Principal Amount multiplied by
                  (B) the sum of the then Applicable  Margin plus the greater of
                  (1) the then LIBOR Interest Rate for an Interest Period of one
                  (1) month or (2) the capped rate under the  interest  rate cap
                  agreement delivered pursuant to paragraph (27) of Section 4.01
                  or pursuant to Section 2.17, as applicable, and

                       (ii) an amount  equal to the constant  annual  payment of
                  principal  plus interest  required to fully  amortize,  over a
                  term of twenty-five  (25) years,  a  hypothetical  loan in the
                  then Principal Amount as of such Determination  Date, assuming
                  such  loan  were  to  bear  interest  at a rate  equal  to the
                  interpolated  rate on a ten (10)-year  United States  Treasury
                  Note assumed to be issued as of such  Determination  Date plus
                  the Applicable Margin.

                  "Improvements" means all improvements now or hereafter located
on the Property,  including,  without limitation,  the 47-story,  class A office
building  containing  approximately  1,445,500 net rentable  square feet and two
(2)-story restaurant building currently located thereon.

                  "Initial  Funding " means the first funding of proceeds of the
Loans made hereunder.

                  "Interest Payment Date" means the fifteenth (15th) day of each
month.

                  "Interest  Period" means,  with respect to any LIBOR Loan, the
period  commencing  on the date the same is funded,  converted  from a Base Rate
Loan or  Continued,  as the case may be,  and  ending,  as  Borrower  may select
pursuant to Section 2.05,  on the  numerically  corresponding  day in the first,
second or third  calendar  month  thereafter,  provided  that each such Interest
Period which  commences on the last Business Day of a calendar  month (or on any
day for  which  there is no  numerically  corresponding  day in the  appropriate
subsequent calendar month) shall end on the last Business Day of the appropriate
calendar month.

                  "Law" means any federal,  state or local  statute,  law, rule,
regulation,  ordinance,  order, code, or rule of common law, now or hereafter in
effect, and any judicial or administrative interpretation thereof, including any
judicial or administrative order, consent decree or judgment.

                  "LC Assignment"  means the Assignment of Letters of Credit and
Security Deposit Account, dated the date hereof, from Borrower to Administrative
Agent whereby all of Borrower's  right,  title and interest in and to the Tenant
LCs and tenant  security  deposits  are assigned as security for the payment and
performance of the Obligations.

                  "Lender" and "Lenders" have the respective  meanings specified
in the preamble.

                                       8

<PAGE>

                  "LIBOR Base Rate" means,  with respect to any Interest  Period
therefor, the rate per annum (rounded up, if necessary,  to the nearest 1/100 of
1%) that  appears on Dow Jones  Page 3750 at  approximately  11:00 a.m.  (London
time) on the date (the "LIBOR  Determination  Date") two (2) Business Days prior
to the first day of the applicable  Interest Period,  for amounts  comparable to
the LIBOR  Loan in  question  and for the same  period  of time as the  relevant
Interest  Period  therefor;  or, if such rate does not  appear on Dow Jones Page
3750 as of  approximately  11:00 a.m.  (London time) on the LIBOR  Determination
Date,  the rate  (rounded  up, if  necessary,  to the  nearest  1/100 of 1%) for
deposits in Dollars for a period  comparable to the applicable  Interest  Period
that  appears on the  Reuters  Screen LIBO Page as of  approximately  11:00 a.m.
(London time) on the LIBOR  Determination  Date. If such rate does not appear on
either  Dow  Jones  Page  3750  or  on  the  Reuters  Screen  LIBO  Page  as  of
approximately  11:00 a.m.  (London time) on the LIBOR  Determination  Date,  the
LIBOR Base Rate for the Interest  Period will be  determined on the basis of the
offered rates for deposits in Dollars for an amount comparable to the LIBOR Loan
in  question  and for the same period of time as such  Interest  Period that are
offered by four (4) major banks in the London  interbank market at approximately
11:00 a.m. (London time) on the LIBOR Determination Date.  Administrative  Agent
will  request  that the  principal  London  office of each of the four (4) major
banks  provide a quotation of its Dollar  deposit  offered rate. If at least two
(2) such  quotations  are provided,  the LIBOR Base Rate will be the  arithmetic
mean of the  quotations.  If  fewer  than two (2)  quotations  are  provided  as
requested,  the LIBOR  Base Rate  will be  determined  on the basis of the rates
quoted for loans in Dollars to leading European banks for amounts  comparable to
such LIBOR Loan for the same period of time as such Interest  Period  offered by
major banks in New York City at approximately  11:00 a.m. (New York time) on the
LIBOR Determination  Date. In the event that  Administrative  Agent is unable to
obtain any such  quotation as provided  above,  it will be deemed that the LIBOR
Base Rate cannot be determined.  For purposes of the foregoing definition,  "Dow
Jones Page 3750"  means the display  designated  as "Page 3750" on the Dow Jones
Markets  Service (or such other page as may replace Page 3750 on that service or
such other service as may be nominated by the British  Bankers'  Association  as
the  information   vendor  for  the  purpose  of  displaying   British  Bankers'
Association Interest Settlement Rates for Dollar deposits);  and "Reuters Screen
LIBO Page" means the display  designated  as page "LIBO" on the Reuters  Monitor
Money  Rates  Service  (or such other page as may  replace the LIBO page on that
service for the purpose of displaying interbank rates from London in Dollars).

                  "LIBOR  Interest  Rate" means,  for any LIBOR Loan, a rate per
annum  (rounded up, if  necessary,  to the nearest  1/100 of 1%)  determined  by
Administrative  Agent to be equal to the quotient of (1) the LIBOR Base Rate for
such LIBOR Loan for the Interest  Period  therefor  divided by (2) one minus the
LIBOR Reserve Requirement for such LIBOR Loan for such Interest Period.

                  "LIBOR  Loan"  means  all  or  any  portion  (as  the  context
requires) of any Lender's Loan which shall accrue interest at rate(s) determined
in relation to LIBOR Interest Rate(s).

                  "LIBOR  Reserve  Requirement"  means,  for any LIBOR Loan, the
rate at which  reserves  (including  any  marginal,  supplemental  or  emergency
reserves) are actually  required to be maintained during the Interest Period for
such LIBOR  Loan under

                                       9

<PAGE>

Regulation  D by any Lender or any  Lender's  respective  Participants,  if any,
against  "Eurocurrency  liabilities"  (as such  term is used in  Regulation  D).
Without  limiting the effect of the  foregoing,  the LIBOR  Reserve  Requirement
shall also reflect any other reserves required to be maintained by any Lender or
any Lender's respective Participants, if any, by reason of any Regulatory Change
against (1) any category of liabilities  which includes deposits by reference to
which the LIBOR Base Rate is to be determined  as provided in the  definition of
"LIBOR Base Rate" in this  Section  1.01 or (2) any  category of  extensions  of
credit  or other  assets  which  include  loans  the  interest  rate on which is
determined on the basis of rates  referred to in said  definition of "LIBOR Base
Rate". Lenders and Administrative Agent acknowledge that, as of the date of this
Agreement, the LIBOR Reserve Requirement is zero for all LIBOR Loans.

                  "Lien" means any  mortgage,  deed of trust,  pledge,  security
interest,   hypothecation,   assignment   for   collateral   purposes,   deposit
arrangement, lien (statutory or other), or other security agreement or charge of
any kind or nature  whatsoever of any third party (excluding any right of setoff
but including, without limitation, any conditional sale or other title retention
agreement,  any financing lease having substantially the same economic effect as
any of the  foregoing,  and the  filing  of any  financing  statement  under the
Uniform Commercial Code or comparable Law of any jurisdiction to evidence any of
the foregoing).

                  "Loan" and "Loans" have the respective  meanings  specified in
Section 2.01.

                  "Loan  Commitment"  means,  with respect to each  Lender,  the
obligation  to make a Loan in the principal  amount set forth below  (subject to
change in accordance with the terms of this Agreement):

                                                                     LOAN
         LENDER                                                   COMMITMENT
         ------                                                   ----------

         Merrill Lynch                                           $20,000,000
         Wells Fargo                                              25,000,000
         Bayerische Landesbank, Cayman Islands Branch             30,000,000
         Commerzbank AG New York and Grand
                   Cayman Branches                                25,000,000
         Norddeutsche Landesbank Girozentrale                     31,000,000
         DGZ - DekaBank Deutsche Kommunalbank                     25,000,000
         Landesbank Sachsen Girozentrale                          23,000,000
         Landesbank Schleswig-Holstein Girozentrale               22,000,000
         Westdeutsche ImmobilienBank                              22,000,000
         Deutsche Postbank AG                                     18,000,000
         Landesbank Saar Girozentrale                              9,000,000
                                                                  ----------

         TOTAL                                                  $250,000,000

                                       10

<PAGE>

                  "Loan Documents" means this Agreement,  the Note, the Mortgage
and related  Uniform  Commercial  Code  financing  statements,  the  Guaranty of
Completion,  the Guaranty and Indemnity Agreement,  the Environmental Indemnity,
the Assignments and related uniform  Commercial Code financing  statements,  the
Authorization  Letter  and the  Solvency  Certificate  and any  other  documents
evidencing or securing the Loans.

                  "Major Lease" means the Debevoise  Lease,  the Schulte  Lease,
the BNP Lease  and any  other  lease  (or  multiple  leases to the same  tenant)
demising 100,000 or more net rentable square feet (in the aggregate, in the case
of multiple leases to the same tenant) of the Improvements.

                  "Material  Adverse Change" means either (1) a material adverse
change  in  the  status  of  the  business,  results  of  operations,  financial
condition,  property or  prospects  of Borrower or Guarantor or (2) any event or
occurrence  of whatever  nature  which is likely to (x) have a material  adverse
effect on the  ability  of  Borrower  or  Guarantor  to perform  its  respective
material  obligations  under the Loan  Documents or (y) create,  in the sole and
absolute judgment  (reasonably  exercised) of the Required  Lenders,  a material
risk of sale or  forfeiture  of any of the  Mortgaged  Property  (other  than an
immaterial portion thereof) or otherwise  materially impair any of the Mortgaged
Property (other than an immaterial portion thereof) or Lenders' rights therein.

                  "Maturity  Date" means October 31, 2003,  subject to extension
in accordance with Section 2.16.

                  "Member"  means  Metropolitan  919  Manager  LLC,  a  Delaware
limited liability company, the sole managing member of Borrower.

                  "Merrill Lynch" has the meaning specified in the preamble.

                  "Metropolitan"  means  Metropolitan  Partners  LLC, a Delaware
limited  liability company which is the indirect owner of 100% the equity in the
managing member of Borrower.  100% the common equity of Metropolitan is owned by
Reckson.

                  "Mortgage" means the Fee and Leasehold Mortgage, Assignment of
Leases and Rents and Security Agreement,  from Borrower to Administrative Agent,
as agent for  Lenders,  to secure the  payment  and  performance  of  Borrower's
obligations hereunder,  under the Note and otherwise in respect of the Loans, as
the same shall be increased, modified and consolidated pursuant to Sections 2.01
and 4.02. Initially,  the Mortgage shall be in the amount of the Initial Funding
and the amount thereof shall increase as fundings of the Loans are made, as more
particularly provided in Sections 2.01 and 4.02.

                  "Mortgaged  Property"  means the  Property,  the  Improvements
thereon and all other property  constituting the "Mortgaged  Property",  as said
quoted term is defined in the Mortgage.

                                       11

<PAGE>

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

                  "Net Cash Flow" means, for any period, the amount by which (a)
actual gross receipts from Borrower's interests in the Property for such period,
determined on a cash basis  (generated  from all the items  enumerated in clause
(a) of the  definition of "Pro-Forma  Net  Operating  Income" in this  Section),
exceeds (b) the sum of (i) all actual  operating  expenses  (including,  without
limitation,  the items enumerated in clause (b) of said definition of "Pro-Forma
Net Operating Income") plus those capital expenditures  enumerated in subclauses
(ii),  (iii) and (iv) of said  clause (b) of said  definition  of "Pro Forma Net
Operating Income" with respect to Borrower's  interests in the Property for such
period,  determined  on a cash basis,  and (ii) actual  interest  expense on the
Loans for such period.

                  "Non-Delinquent   Lender"  means  each  Lender  other  than  a
Delinquent Lender.

                  "Non-Excluded  Taxes"  has the  meaning  specified  in Section
12.15.

                  "919  Associates"  means 919  Third  Avenue  Associates  L.P.,
Borrower's predecessor as owner of the Improvements.

                  "Note" has meaning specified in Section 2.08.

                  "Obligations"  means each and every  obligation,  covenant and
agreement of Borrower,  now or hereafter existing,  contained in this Agreement,
and any of the  other  Loan  Documents,  whether  for  principal,  reimbursement
obligations,  interest,  fees,  expenses,  indemnities  or  otherwise,  and  any
amendments  or   supplements   thereto,   extensions  or  renewals   thereof  or
replacements  therefor,   including,  but  not  limited  to,  all  indebtedness,
obligations and liabilities of Borrower to  Administrative  Agent and any Lender
now existing or hereafter incurred under or arising out of or in connection with
the Note,  this  Agreement,  the other  Loan  Documents,  and any  documents  or
instruments  executed in connection  therewith;  in each case whether  direct or
indirect, joint or several, absolute or contingent,  liquidated or unliquidated,
now or hereafter existing,  renewed or restructured,  including all indebtedness
of Borrower, under any instrument now or hereafter evidencing or securing any of
the foregoing.

                  "Parent"  means,  with  respect  to  any  Lender,  any  Person
controlling such Lender.

                  "Participant" and "Participation" have the respective meanings
specified in Section 12.05.

                  "PBGC" means the Pension Benefit Guaranty  Corporation and any
entity succeeding to any or all of its functions under ERISA.

                                       12

<PAGE>

                  "Person"  means  an  individual,   partnership,   corporation,
limited  liability  company,   business  trust,  joint  stock  company,   trust,
unincorporated  association,  joint  venture,  Governmental  Authority  or other
entity of whatever nature.

                  "Plan" means any employee benefit or other plan established or
maintained, or to which contributions have been made, by Borrower,  Guarantor or
any  ERISA  Affiliate  and  which  is  covered  by Title IV of ERISA or to which
Section 412 of the Code applies.

                  "Premises Documents" has the meaning given to such term in the
Mortgage.

                  "presence",  when used in  connection  with any  Environmental
Discharge  or Hazardous  Materials,  means and  includes  presence,  generation,
manufacture,   installation,   treatment,   use,  storage,   handling,   repair,
encapsulation, disposal, transportation, spill, discharge and release.

                  "Prime  Rate"  means that rate of  interest  from time to time
announced  by Wells Fargo (or any  successor  thereto) at its  principal  office
(presently in San Francisco,  California) as its prime commercial  lending rate;
or if Wells Fargo is  replaced as  Administrative  Agent,  the prime  commercial
lending rate  announced by the successor  Administrative  Agent at its principal
office.

                  "Principal   Amount"   means,   at  any  time,  the  aggregate
outstanding principal amount of the Note.

                  "Projected Actual Debt Service" means, as of any Determination
Date,  the product of the average  Principal  Amount that is  anticipated  to be
outstanding  during the immediately  ensuing twelve (12)-month period multiplied
by the weighted  average actual interest rate per annum in effect under the Note
as of such Determination Date.

                  "Pro-Forma Net Operating  Income" means,  for any  prospective
twelve  (12)-month  period, an amount,  reasonably  determined by Administrative
Agent, equal to:

                        (a)  all  revenues  from  the  operation  of  Borrower's
                  interests in the Property  during such period,  determined  in
                  accordance with GAAP (but adjusted to eliminate the effects of
                  straight-lining  of rents and further  adjusted to exclude (i)
                  any rent  receivables  more than one hundred twenty (120) days
                  old  and  (ii)  extraordinary  and  non-recurring  sources  of
                  income),  including all rental and other payments,  including,
                  without limitation,  base rent,  additional rent,  promotional
                  revenues,  percentage  rent,  parking  rental and payments for
                  common  area  maintenance,   taxes,  insurance  and  operating
                  expenses  and lease  termination  payments,  excluding  tenant
                  security  deposits and Tenant LCs until such security deposits
                  or drawings under Tenant LCs are actually  applied to tenants'
                  obligations, and interest on such deposits;

                  minus

                                       13

<PAGE>

                        (b) all expenses in connection with Borrower's interests
                  in the Property  during such period,  determined in accordance
                  with GAAP,  including insurance  premiums,  real estate taxes,
                  ground   rent   (adjusted   to   eliminate   the   effect   of
                  straight-lining  of  rents),  leasing  expenses,   promotional
                  expenses,  maintenance  and repair  expenses,  management fees
                  equal to $0.30 per square foot of the  Improvements  per annum
                  and any  other  operational  expenses,  all as  determined  in
                  accordance  with  GAAP,  but not  including  (i) debt  service
                  payable  under the Loans or the  Subordinate  Loan,  (ii) that
                  portion  of the  cost of any  capital  improvements,  repairs,
                  replacements,  alterations  or equipment and other costs which
                  will be capitalized and depreciated or amortized on Borrower's
                  Financial  Statements,  including  non-cash  expenses  such as
                  depreciation and amortization, provided that such deduction is
                  in  accordance  with  GAAP,  (iii) that  portion of  brokerage
                  commissions   and  tenant   incentives   (including,   without
                  limitation, tenant improvement costs and expenses) relating to
                  the leasing of the Property,  or portions  thereof,  and legal
                  fees relating to  negotiation  of leases at the  Property,  or
                  portions  thereof  (in  each  case,  including  extensions  or
                  renewals),  which are capitalized and depreciated or amortized
                  on Borrower's  Financial  Statements in accordance  with GAAP,
                  (iv) costs of repairing or restoring the Property, or portions
                  thereof, after fire, casualty or condemnation,  not covered by
                  insurance,  (v)  interest  paid  by  Borrower  to  tenants  on
                  security deposits  collected under leases of the Property,  or
                  portions  thereof,  (vi) any  security  deposits  returned  by
                  Borrower  during  such period to tenants  under  leases of the
                  Property,  or  portions  thereof,  (vii) any income or capital
                  gains  taxes  payable  upon the  income  or  capital  gains of
                  Borrower or its members and (viii) funds deposited or required
                  to be deposited into the Debt Service Reserve Account.

                  "Property"  means  the  real  property  located  at 919  Third
Avenue,  New York, New York on which the  Improvements are situated and which is
more particularly described on Schedule A to the Mortgage.

                  "Pro Rata Share"  means,  for purposes of this  Agreement  and
with respect to each Lender, a fraction, the numerator of which is the amount of
such Lender's Loan  Commitment  and the  denominator  of which is the Total Loan
Commitment.

                  "Prohibited  Transaction" means any transaction  proscribed by
Section 406 of ERISA or Section  4975 of the Code and to which no  statutory  or
administrative exemption applies.

                  "Reckson"  means  Reckson  Operating   Partnership,   L.P.,  a
Delaware  limited  partnership  which  is  owner  of 100% of the  common  equity
interests in Metropolitan.

                  "Reckson Credit  Facility" means the credit facility  extended
to Reckson  pursuant to that certain  Revolving Credit Agreement dated September
7, 2000 among Reckson (as borrower), the lenders signatory thereto and The Chase
Manhattan Bank (as Administrative Agent),  including any and all replacements or
refinancings thereof.

                                       14

<PAGE>

                  "Reckson  Indebtedness" means,  individually and collectively,
(1) any or all of Reckson's  public  unsecured  indebtedness  and (2)  Reckson's
indebtedness under the Reckson Credit Facility.

                  "Refinance  DSCR" means,  as of any  Determination  Date,  the
ratio,  as  reasonably  determined  by  Administrative  Agent,  of (1)  Adjusted
Pro-Forma Net Operating  Income for the  immediately  ensuing  twelve (12) month
period to (2) Hypothetical Annual Debt Service for such Determination Date.

                  "Regulation  D"  and   "Regulation   U"  mean,   respectively,
Regulation D and  Regulation U of the Board of Governors of the Federal  Reserve
System.

                  "Regulatory  Change"  means,  with respect to any Lender,  any
change after the date of this Agreement in federal,  state, municipal or foreign
laws or  regulations  (including  Regulation  D) or the adoption or making after
such date of any interpretations,  directives or requests applying to a class of
lenders  including  such Lender of or under any  federal,  state,  municipal  or
foreign  laws or  regulations  (whether  or not  having the force of law) by any
court or governmental or monetary  authority charged with the  interpretation or
administration thereof.

                  "Relevant  Documents"  has the  meanings  specified in Section
11.02.

                  "Reportable  Event"  means  any of the  events  set  forth  in
Section  4043(c) of ERISA,  other than those  events as to which the thirty (30)
day notice period is waived under  subsections .13, .14, .16, .18, .19 or .20 of
PBGC Reg. ss. 2615.

                  "Required  Lenders" means,  at any time,  those Lenders having
Pro Rata Shares aggregating at least 66 2/3%; provided, however, that during the
existence of an Event of Default,  the "Required Lenders" shall be those Lenders
holding at least 66 2/3% of the then aggregate  unpaid  principal  amount of the
Loans.

                  "Schulte  Lease"  means  the  lease  dated as of May 13,  1998
between 919  Associates,  as landlord,  and Schulte Roth & Zabel LLP, as tenant,
covering approximately 212,000 net rentable square feet of the Improvements,  as
assigned to Borrower by assignment dated as of the date hereof.

                  "Solvency  Certificate"  means a  certificate  in the  form of
EXHIBIT D.

                  "Solvent"  means,  when used with respect to any Person,  that
the fair value of the  property of such Person,  on a going  concern  basis,  is
greater than the total amount of  liabilities  (including,  without  limitation,
contingent liabilities) of such Person.

                  "Subordinate  Lender"  means  Metropolitan  919 Manager LLC, a
Delaware  limited  liability  company  which  is the  sole  managing  member  of
Borrower.  100% of the  equity  interests  in  Subordinate  Lender  are owned by
Metropolitan.

                  "Subordinate Loan" means the loan,  initially in an amount not
to  exceed   $95,000,000  (which  amount  shall  decrease  as  portions  of  the
Subordinate  Mortgage are assigned to  Administrative  Agent in accordance  with
Sections  2.01 and 4.02),  from  Subordinate  Lender to Borrower  secured by the
Subordinate Mortgage.

                                       15

<PAGE>

                  "Subordinate  Mortgage" means the mortgage,  beneficially held
by Subordinate  Lender, of Borrower's  interest in the Property,  subordinate in
all respects to the Mortgage, that secures the Subordinate Loan.

                  "Subordinate  Mortgage  Assignment"  means the  Assignment  of
Mortgage Loan, dated the date hereof,  from Subordinate Lender to Administrative
Agent whereby all documents (other than  guaranties)  evidencing or securing the
Subordinate Loan are assigned as security for the payment and performance of the
Obligations.

                  "Subordination  Agreement" means the Subordination  Agreement,
dated the date  hereof,  between  Administrative  Agent and  Subordinate  Lender
whereby,  among other things, the Subordinate Loan and all documents evidencing,
securing or  otherwise  relating  thereto  (other than  guaranties  from Persons
unrelated  to Borrower or  Guarantor)  are  subordinated  in all respects to the
Loans and the Loan Documents.

                  "Substitute   Lender"  and  "Substitution   Notice"  have  the
respective meanings specified in Section 3.07.

                  "Supplemental  Letter  Agreement"  means that  certain  letter
agreement, dated the date hereof, between Merrill Lynch and Borrower.

                  "Tenant  LCs" means any and all  letters of credit  issued for
the benefit of the landlord under any lease of portions of the  Improvements  to
secure the payment and performance of the obligations of the tenant  thereunder,
including,  without  limitation,  (1) in the case of the Debevoise Lease,  those
certain  letters of credit  dated  November  20,  1998 and  February  11,  2000,
respectively,  each  issued  by  Citibank,  N.A.  and  in  the  face  amount  of
$2,500,000, together with those letters of credit to be issued by Citibank, N.A.
or another nationally  recognized  commercial bank after the date hereof, all of
such existing and future letters of credit to increase to an aggregate amount of
at least  $25,000,000  and (2) in the case of the Schulte  Lease,  that  certain
letter of credit dated May 20, 1998 issued by Citibank,  N.A. in the face amount
of $4,975,405,  as amended by amendment  dated June 16, 2000 increasing the face
amount thereto $9,536,535. Tenant LCs shall be subject to reduction from time to
time in accordance with the terms of the applicable lease.

                  "this Agreement" means this Secured Loan Agreement.

                  "Title  Insurer"  means the  issuer(s) of the title  insurance
policy(ies) insuring the Mortgage.

                  "Total Loan Commitment" means an amount equal to the aggregate
amount of all Loan Commitments.

                  "United States" and "U.S." mean the United States of America.

                                       16

<PAGE>

                  "Wells Fargo" has the meaning specified in the preamble.

                  "Work"  means the  performance  of all work and the payment of
all costs thereof  (including  tenant  inducements and leasing  commissions) (1)
under  Borrower's  capital  improvement  program in respect of the Property,  as
reflected in the Excel Spreadsheet  entitled "919 Third Revised Budget" supplied
by  Borrower  to  Merrill  Lynch  attached  hereto as  EXHIBIT F, and (2) as are
necessary to satisfy fully the landlord's pre-rent-commencement requirements and
obligations under the Debevoise Lease, the Schulte Lease and the BNP Lease.

                  Section  1.02  Accounting  Terms.  All  accounting  terms  not
specifically  defined herein shall be construed in accordance with GAAP, and all
financial  data  required  to  be  delivered  hereunder  shall  be  prepared  in
accordance with GAAP.

                  Section 1.03 Computation of Time Periods.  Except as otherwise
provided herein, in this Agreement, in the computation of periods of time from a
specified  date to a later  specified  date,  the word  "from"  means  "from and
including" and words "to" and "until" each means "to but excluding".

                  Section  1.04  Rules  of  Construction.   Except  as  provided
otherwise,  when  used in this  Agreement,  (i)  "or" is not  exclusive,  (ii) a
reference to a Law includes any  amendment,  modification  or supplement  to, or
replacement  of, such Law, (iii) a reference to a Person  includes its permitted
successors and permitted  assigns,  (iv) all terms defined in the singular shall
have a  correlative  meaning  when  used in the  plural  and vice  versa,  (v) a
reference to an agreement,  instrument or document shall include such agreement,
instrument or document as the same may be amended, modified or supplemented from
time to time in accordance  with its terms and, if  applicable,  as permitted by
the Loan Documents, (vi) all references to Articles,  Sections or Exhibits shall
be to  Articles,  Sections  and  Exhibits  of this  Agreement  unless  otherwise
indicated,  (vii)  "hereunder",  "herein",  "hereof"  and the like refer to this
Agreement  as a whole  and  (viii)  all  Exhibits  to this  Agreement  shall  be
incorporated  herein.  Any  table of  contents  and the  headings  and  captions
hereunder are for convenience  only and shall not affect the  interpretation  or
construction hereof.

                                   ARTICLE II

                                    THE LOANS

                  Section 2.01 The Loans. Subject to the terms and conditions of
this  Agreement,  each Lender  severally  agrees to make, and Borrower agrees to
accept,  a loan to Borrower (each such loan by a Lender,  a "Loan";  such loans,
collectively, the "Loans") in an amount up to such Lender's Loan Commitment. The
Loans shall be funded in installments as follows. The Initial Funding will be in
the amount of $200,000,000 and shall be made upon Borrower's satisfaction of the
conditions  set forth in Section 4.01.  Fundings of the Loans  subsequent to the
Initial Funding (including fundings of the "Debt Service Allocation" referred to
below) shall be made in each case by Lenders' purchasing

                                       17

<PAGE>

from  Subordinate  Lender a severed portion of the  indebtedness  secured by the
Subordinate Mortgage, each such portion to be in a principal amount equal to the
amount of the funding.  A substitute  note and mortgage  evidencing and securing
such indebtedness being purchased will, contemporaneously with the making of the
funding,  be  consolidated  with,  and  modified to be on the same terms as, the
then-existing  Note and Mortgage (and thereupon will become part of the Note and
the Mortgage).  The proceeds of fundings of the Loans  subsequent to the Initial
Funding,  representing the purchase price from Lenders to Subordinate Lender for
such  indebtedness,  shall be made available to Borrower by  Subordinate  Lender
pursuant  to a loan  agreement  between  them which shall  provide,  among other
things,  that such proceeds shall be funded by Subordinate Lender to Borrower to
be used as set forth below. Subsequent fundings, in an aggregate amount equal to
(x) the excess,  if any, of $230,000,000  over the amount of the Initial Funding
plus (y) portions of the Debt Service  Allocation (as hereinafter  defined) made
available for disbursement to Borrower as provided in the next paragraph of this
Section,  shall be made no more  frequently than three (3) times per month after
the date of the Initial Funding upon  Borrower's  satisfaction of the applicable
conditions  set forth in Section  4.02.  Subject to the  provisions  of the next
paragraph of this Section,  the amount of each funding subsequent to the Initial
Funding shall be in increments  of  $5,000,000  (unless less than  $5,000,000 is
available  for  disbursement  pursuant  to the  terms  hereof at the time of any
subsequent funding, in which case the amount of such subsequent funding shall be
equal to such remaining availability).

                  Initially,   a   $20,000,000   portion   (the  "Debt   Service
Allocation")  of that  portion  of the Loans not  funded as part of the  Initial
Funding  shall  be  available  only  for the  purpose  of  paying  Debt  Service
Deficiencies  as provided in Section 2.15 and, if the provisions of Section 2.17
are applicable,  an additional  portion of the Loans shall be available only for
the purpose specified in Section 2.17. The amount of the Debt Service Allocation
(less  portions  thereof  actually  funded to pay Debt Service  Deficiencies  as
provided in said  Section  2.15)  shall be  reduced,  and the amount of any such
reduction made available to Borrower for disbursement as fundings  subsequent to
the Initial Funding under the preceding paragraph of this Section, if and to the
extent  that  Borrower   demonstrates,   to  the  reasonable   satisfaction   of
Administrative  Agent,  that  Borrower  has paid  interest  under  the Note from
sources other than the Loans or Adjusted Net Cash Flow (for example,  by showing
that the amount of interest  paid by Borrower,  other than from  proceeds of the
Loans,  exceeds  Adjusted Net Cash Flow for the applicable  period of time).  At
such time as the  Holdback  Release DSCR is equal to or greater than 1.10 to 1.0
for  two  (2)  consecutive  Determination  Dates,  any  remaining  Debt  Service
Allocation  shall be made  available  to Borrower for  disbursement  as fundings
subsequent to the Initial Funding under the preceding paragraph of this Section.

                  The Loans may be  outstanding  as (i) Base  Rate  Loans,  (ii)
LIBOR Loans or (iii) a combination of the foregoing, as Borrower shall elect and
notify  Administrative Agent in accordance with Section 2.13. The LIBOR Loan and
Base Rate Loan of each Lender shall be maintained  at such  Lender's  Applicable
Lending Office.

                  Section 2.02 Nature of Lenders'  Obligations.  The obligations
of Lenders under this Agreement are several,  and no Lender shall be responsible
for the failure of any other  Lender to make any funding of a Loan to be made by
such other Lender. However, the failure of any Lender to make any funding of the
Loan to be made by it hereunder on the date specified therefor shall not relieve
any other  Lender of its  obligation  to make any funding of its Loan  specified
hereby to be made on such date.

                                       18

<PAGE>

                  Section 2.03 Purpose.  In no event shall proceeds of the Loans
be used in a manner that would  violate  Regulation  U or in  connection  with a
hostile acquisition or for any illegal purpose.

                  Section 2.04 Procedures for Fundings. Borrower shall submit to
Administrative  Agent a request for each funding of proceeds of the Loans (other
than the Initial  Funding) no later than 11:00 a.m.  (New York time) on the date
which is five (5)  Business  Days  prior to the date the  funding is to be made.
Administrative  Agent, upon its receipt and approval of the request for funding,
will so notify all Lenders  either by telephone or by facsimile.  Not later than
10:00 a.m. (New York time) on the date a requested  funding is to be made,  each
Lender  shall,  through  its  Applicable  Lending  Office  and  subject  to  the
conditions  of this  Agreement,  make the  amount to be funded by it on such day
available to  Administrative  Agent,  at  Administrative  Agent's  Office and in
immediately  available  FUNDS.  The amount so received by  Administrative  Agent
shall,  subject to the  conditions  of this  Agreement,  be made  available,  in
immediately  available  funds,  by (i)  in the  case  of  the  Initial  Funding,
Administrative  Agent's  wiring  funds as shall be directed,  or crediting  such
account as shall be  designated  by  Borrower  in its request for the funding or
(ii) in the  case  of  subsequent  fundings,  Administrative  Agent's  crediting
account no.  0713-939635  maintained by Subordinate  Lender with  Administrative
Agent, which account,  pursuant to Subordinate  Lender's agreement with Borrower
and   Subordinate   Lender's   irrevocable   authorization   and   direction  to
Administrative Agent contained in the Subordination Agreement, will, immediately
following  such  crediting,  be  debited  by the  amount of such  credit for the
account of Borrower,  and such amount shall then (A) be wire transferred to such
account as may be  designated  by Borrower,  in the case of fundings  other than
fundings  of the Debt  Service  Allocation  or (B) be applied by  Administrative
Agent in payment of  interest  on the Note,  in the case of fundings of the Debt
Service  Allocation,  in either case,  as specified  in  Borrower's  request for
funding. Administrative Agent will make available to Borrower no later than 2:00
p.m.  (New  York  time)  on the  date  of the  funding  the  funds  received  by
Administrative Agent from Lenders.

                  Section 2.05 Interest  Periods;  Renewals.  In the case of the
LIBOR  Loans,  Borrower  shall  select an  Interest  Period of any  duration  in
accordance  with the definition of Interest  Period in Section 1.01,  subject to
the following limitations: (i) no Interest Period may extend beyond the Maturity
Date, (ii) if an Interest Period would end on a day which is not a Business Day,
such Interest  Period shall be extended to the next  Business  Day,  unless such
Business Day would fall in the next calendar month, in which event such Interest
Period shall end on the immediately  preceding Business Day and (iii) only eight
(8) discrete  segments of a Lender's Loan bearing  interest at a LIBOR  Interest
Rate,  for a designated  Interest  Period,  pursuant to a  particular  Election,
Conversion  or  Continuation,  may be  outstanding  at any one time  (each  such
segment of each Lender's Loan  corresponding to a proportionate  segment of each
of the other Lenders' Loans).

                                       19

<PAGE>

                  Upon  notice to  Administrative  Agent as  provided in Section
2.13,  Borrower  may  Continue  any LIBOR  Loan on the last day of the  Interest
Period of the same or  different  duration in  accordance  with the  limitations
provided above.

                  Section  2.06   Interest.   Borrower  shall  pay  interest  to
Administrative Agent for the account of the applicable Lender on the outstanding
and unpaid  principal  amount of the Loans, at a rate per annum as follows:  (i)
for Base Rate Loans at a rate equal to the Base Rate and (ii) for LIBOR Loans at
a rate equal to the applicable  LIBOR Interest Rate plus the Applicable  Margin.
Any  principal  amount not paid when due (when  scheduled,  at  acceleration  or
otherwise)  shall bear interest  thereafter,  payable on demand,  at the Default
Rate.

                  The  interest  rate on Base Rate Loans  shall  change when the
Base Rate changes.  Interest  shall be calculated  for the actual number of days
elapsed on the basis of, in the case of LIBOR Loans,  three  hundred sixty (360)
days and, in the case of Base Rate Loans, three hundred sixty five (365) days.

                  Accrued  interest shall be due and payable in arrears upon and
with respect to any payment or prepayment of principal  and, in the case of both
Base Rate  Loans and LIBOR  Loans,  on each  Interest  Payment  Date;  provided,
however,  that interest accruing at the Default Rate shall be due and payable on
demand.

Section 2.07      Fees.

                  (a) Borrower agrees to pay to  Administrative  Agent,  for its
own  account,  the  periodic  administration  fee  provided  for  in a  separate
agreement between Borrower and Administrative Agent.

                  (b) Borrower agrees to pay to Merrill Lynch,  for the accounts
of the parties  specified  therein,  the fees  provided for in the  Supplemental
Letter Agreement.

                  Section 2.08 Note. The Loans shall be evidenced by, and repaid
with interest in accordance with, a single global promissory note of Borrower in
the form of EXHIBIT B, duly  completed and executed by Borrower,  in a principal
amount  initially  equal to the amount of the  Initial  Funding  and  thereafter
increased at the time of each  subsequent  funding by the amount of such funding
as provided in Sections 2.01 and 4.02,  payable to Administrative  Agent for the
account of the respective  Lenders,  for the further account of their respective
Applicable  Lending  Offices (such note, as the same may hereafter be increased,
amended, modified, extended, severed, assigned, renewed or restated from time to
time,  including pursuant to Sections 2.01 and 4.02, the "Note"). The Note shall
mature,  and all  outstanding  principal  and  accrued  interest  and other sums
thereunder  shall  be paid in full,  on the  Maturity  Date,  as the same may be
accelerated.

                  Administrative  Agent is  hereby  authorized  by  Borrower  to
endorse on the schedule  attached to the Note, the amount of each funding of and
each payment of principal received by Lenders under the Loans, which endorsement
shall,  in the absence of manifest  error,  be conclusive as to the  outstanding
balance of the Loans. The failure by Administrative Agent to make such notations
with  respect  to the  Loans or each  funding  or  payment  shall  not  limit or
otherwise affect the obligations of Borrower under this Agreement or the Note.

                                       20

<PAGE>

                  Section 2.09 Prepayments.  Borrower may, upon at least two (2)
Business  Days'  notice  to  Administrative  Agent in the case of the Base  Rate
Loans, and at least three (3) Business Days' notice to  Administrative  Agent in
the case of LIBOR  Loans,  prepay the Loans;  provided,  however,  that (i) each
partial prepayment (other than a prepayment  pursuant to Section 3.07 or Section
8.02(c))  shall be in a minimum  amount of $1,000,000  and (ii) each  prepayment
shall  include  (A) all  interest  accrued  on the amount of  principal  prepaid
through  the date of  prepayment  and (B) any  amounts in  connection  with such
prepayment that are payable  pursuant to Article III. Amounts prepaid may not be
reborrowed.

                  Section  2.10  Method of  Payment.  Borrower  shall  make each
payment  under this  Agreement  and under the Note not later than Noon (New York
time) on the date when due in Dollars to Administrative  Agent at Administrative
Agent's  Office  in  immediately  available  funds.  Administrative  Agent  will
thereafter,  on the  day of its  receipt  of  each  such  payment,  cause  to be
distributed to each Lender (i) such Lender's  appropriate  share (based upon the
respective outstanding principal amounts and rate(s) of interest under the Loans
of all Lenders) of the payments of principal  and interest in like funds for the
account of such Lender's Applicable Lending Office and (ii) fees payable to such
Lender in accordance with the terms hereof.

                  Except to the extent otherwise  provided herein,  whenever any
payment  to be made  hereunder  or under the Note is due on any day other than a
Business Day, such payment  shall be made on the next  succeeding  Business Day,
and such extension of time shall in such case be included in the  computation of
the payment of interest and other fees, as the case may be.

                  Notwithstanding the foregoing  provisions of this Section, (x)
Administrative  Agent  shall make no payment to a  Delinquent  Lender  until the
Non-Delinquent Lenders have been paid in full all outstanding principal, accrued
and unpaid  interest and any other sums owing to them under the Loan  Documents,
it being  understood  that  payments of  interest on account of the  outstanding
principal  amount of the Note  held by the  Delinquent  Lender  shall be held by
Administrative  Agent in a non-interest  bearing  account and not distributed to
the Delinquent Lender until such time as all principal,  interest and other sums
due to the  Non-Delinquent  Lenders  have  been paid in full,  (y) any  payments
(other than interest,  as provided in clause (x) above) which would otherwise be
due a Delinquent Lender shall be distributed to the Non-Delinquent Lenders until
such time as all  principal,  interest and other sums due to the  Non-Delinquent
Lenders have been paid in full (except  that any such  amounts  otherwise  due a
Delinquent  Lender  received by  Administrative  Agent during an Election Period
shall be retained by  Administrative  Agent until the expiration of the Election
Period and either paid to the Delinquent Lender, if the delinquency is cured, or
paid to the  Non-Delinquent  Lenders,  if the  delinquency is not cured) and (z)
Administrative  Agent  shall  deduct,  from  amounts  due (or,  in the case of a
Delinquent  Lender,  amounts that would  otherwise be

                                       21

<PAGE>

payable to such Delinquent Lender being held by Administrative Agent pursuant to
clause (x) above) a Lender in default under its obligations under Section 10.05,
the amount  owing by such  Lender  pursuant  to said  Section  10.05 and pay the
amount so  deducted  to itself,  the other  Lenders,  or such other  party as is
entitled to such amount,  as  applicable.  If Borrower pays amounts that are not
distributed to a Delinquent Lender in accordance with this Section, such failure
to distribute shall not constitute a Default.

                  Section 2.11 Elections,  Conversions or Continuation of Loans.
Subject to the  provisions of Article III and Sections  2.05 and 2.12,  Borrower
shall  have the right to Elect to have all or a portion  of the  funding  of the
Loans be LIBOR Loans,  to Convert  Base Rate Loans into LIBOR Loans,  to Convert
LIBOR Loans into Base Rate Loans,  or to Continue LIBOR Loans as LIBOR Loans, at
any  time  or  from  time  to  time,  provided  that  (i)  Borrower  shall  give
Administrative Agent notice of each such Election, Conversion or Continuation as
provided in Section  2.13 and (ii) a LIBOR Loan may be  Converted  or  Continued
only on the last day of the  applicable  Interest  Period for such  LIBOR  Loan.
Except as otherwise provided herein, each Election,  Continuation and Conversion
shall be applicable to each Lender's Loan in accordance with its Pro Rata Share.

                  Section 2.12 Minimum  Amounts.  With respect to the Loans as a
whole,  each  Election  (other than an Election  with regard to a funding of the
Debt  Service  Allocation)  and each  Conversion  shall be in an amount at least
equal to $1,000,000 and in integral multiples of $100,000.

                  Section 2.13 Certain Notices Regarding Elections,  Conversions
and  Continuations  of Loans.  Notices by  Borrower to  Administrative  Agent of
Elections, Conversions and Continuations of LIBOR Loans shall be irrevocable and
shall be effective only if received by Administrative Agent not later than 10:00
a.m.  (New York  time) on the number of  Business  Days prior to the date of the
relevant Election, Conversion or Continuation specified below:

                                                      Number of Business
                                                       Days Prior Notice
                                                       -----------------

Conversions into Base Loans                                 two (2)

Elections of, Conversions into or                           three (3)
Continuations as, LIBOR Loans

Promptly following its receipt of any such notice, Administrative Agent shall so
advise all Lenders  either by  telephone  or by  facsimile.  Each such notice of
Election  shall  specify the portion of the amount of the funding  that is to be
LIBOR Loans  (subject to Section  2.12) and the duration of the Interest  Period
applicable  thereto  (subject to Section  2.05);  each such notice of Conversion
shall specify the LIBOR Loans or Base Rate Loans to be Converted;  and each such
notice of  Conversion  or  Continuation  shall specify the date of Conversion or
Continuation  (which shall be a Business Day),  the amount  thereof

                                       22

<PAGE>

(subject to Section  2.12) and the  duration of the Interest  Period  applicable
thereto  (subject to Section  2.05).  In the event  Borrower  fails to furnish a
notice of Election  three (3) Business  Days prior to the  scheduled  date for a
funding of the Loans, Borrower shall be deemed to have Elected that such funding
be a LIBOR Loan with an Interest  Period of one (1) month,  unless such Interest
Period would expire after the Maturity Date, in which case such funding shall be
a Base Rate Loan. With respect to any portion of the Loans that is a LIBOR Loan,
in the event that  Borrower  fails to furnish a notice to  Administrative  Agent
within the time  periods  set forth  above  either to Convert or  Continue  such
portion of the Loans,  such portion shall  automatically be Continued as a LIBOR
Loan with an Interest Period of one (1) month, unless such Interest Period would
expire  after the  Maturity  Date,  in which case such portion of the Loans will
automatically be Converted to a Base Rate Loan.

                  Section  2.14  Late  Payment   Premium.   Borrower  shall,  at
Administrative  Agent's option,  pay to Administrative  Agent for the account of
Lenders a late  payment  premium in the amount of 4% of any payments of interest
under the Loans made more than ten (10) days after the due date  thereof,  which
shall be due with any such late payment.

                  Section  2.15 Debt Service  Reserve.  On or before the Closing
Date,  Borrower shall establish an  interest-bearing  account (the "Debt Service
Reserve Account"), to be maintained with and controlled by Administrative Agent,
into which Borrower shall deposit, no later than five (5) Business Days prior to
each Interest  Payment  Date, an amount at least equal to the interest  becoming
due and payable on such Interest  Payment Date.  Administrative  Agent is hereby
irrevocably  authorized and directed, on each Interest Payment Date, to withdraw
from the Debt Service  Reserve  Account an amount equal to the interest then due
and  payable  under the Note and to  distribute  to each  Lender  such  Lender's
appropriate  share thereof for the account of such Lender's  Applicable  Lending
Office. If, however,  five (5) Business Days prior to any Interest Payment Date,
the amount on deposit in the Debt Service  Reserve  Account is not sufficient to
pay the  interest to become due and payable on such  Interest  Payment Date (the
amount of any such insufficiency, the "Debt Service Deficiency"), Administrative
Agent shall,  on such fifth (5th)  Business  Day prior to the  Interest  Payment
Date,  so notify  Borrower and each Lender,  and each Lender shall fund, on such
Interest  Payment Date,  proceeds of its Loan in an amount equal to its Pro Rata
Share of the Debt Service  Deficiency.  Such notice to Borrower and Lenders will
indicate  whether  the  making  of the  funding  would  result  in a  breach  of
Borrower's  covenants under Section 7.03 and, if such breach would result,  will
specify  the  additional  amount  required to be hedged to avoid  default  under
Section  7.03.  Proceeds of the Loans so funded by Lenders shall effect a dollar
for dollar reduction in the Debt Service Allocation. Notwithstanding anything to
the contrary  contained in this  Agreement or the other Loan  Documents,  to the
extent a Delinquent Lender is obligated under this Agreement to fund proceeds of
its Loan in respect of interest on the Note, and fails to do so, such portion of
the  interest  on the  Delinquent  Lender's  Loan  (i.e.,  the  interest  on the
Delinquent  Lender's Loan that, absent the Delinquent  Lender's failure to fund,
would have been paid by fundings of the Debt  Service  Allocation)  shall accrue
(without  interest on such  interest  not funded) and payment  thereof  shall be
deferred  until the  Maturity  Date  (whether  as stated or by

                                       23

<PAGE>

acceleration  or  otherwise),  it being  understood  that the maximum  amount of
interest  that  may be so  deferred  shall  be the  undisbursed  portion  of the
Delinquent Lender's portion of the Debt Service Allocation. Accordingly, failure
of Borrower to pay such  interest  that was required to be, but was not in fact,
funded on a particular  Interest  Payment  Date shall not  constitute a Default.
Interest  earned  by  Borrower  on the Debt  Service  Reserve  Account  shall be
remitted to Borrower on the Interest Payment Date.

                  Section 2.16  Extension of Maturity.  Borrower  shall have the
option,  exercisable  twice, to extend the Maturity Date for a period of one (1)
year each,  subject to, in each case, (i)  Administrative  Agent's  receipt of a
written request from Borrower for such extension not later than thirty (30) days
prior to the Maturity Date to be extended,  (ii) the absence, as of the Maturity
Date to be  extended,  of any Event of  Default,  (iii)  Administrative  Agent's
receipt prior to the Maturity Date to be extended, for the account of Lenders in
accordance with their Pro Rata Shares, of an extension fee in an amount equal to
0.25% of the Principal Amount to be extended, (iv) the execution and delivery of
such note extension  agreements as Administrative  Agent may reasonably require,
(v) the evidence of the lien-free completion of the Work, as required by Section
6.14, shall have been provided by Borrower,  (vi) Borrower's compliance with the
financial  covenants  set forth in  Section  8.01 and  there  being no cash flow
sweep, as contemplated by Section 8.02, in effect,  each as of the Maturity Date
to be extended and (vii)  Borrower's  entering  into one or more  interest  rate
protection  agreement(s),  covering  the  extended  term of the Loans,  mutually
acceptable to Borrower and the Required Lenders, and executing and delivering to
Administrative Agent an assignment thereof  substantially in the form of the Cap
Assignment  (and  causing  the  counterparty   under  each  such  interest  rate
protection agreement to consent to such assignment). Notwithstanding anything to
the contrary contained herein, there shall be no further fundings of proceeds of
the Loans during any extension term and,  following  Borrower's  exercise of the
first extension  option as provided above,  the Loan  Commitments of the Lenders
with respect to any then undisbursed  proceeds of the Loans shall  automatically
terminate.

                  Section  2.17  Interest  Rate Cap  during  Third Year of Term.

                  (a) If  Borrower  opts to enter into a two  (2)-year  interest
rate cap  pursuant  to clause (y) of  paragraph  (27) of Section  4.01,  but not
otherwise,   then  the   provisions  of  this  Section  shall  apply.   Borrower
acknowledges and agrees that,  during the first two (2) years of the term of the
Loans,  Lenders shall  withhold from  disbursement a portion of the Loans (which
shall be in  addition to the Debt  Service  Allocation)  an amount  equal to the
cost, as reasonably determined by Administrative Agent, as of each Determination
Date,  which  determination  shall be effective  for the  immediately  following
calendar  quarter (the "Cap Cost"),  that  Borrower  would be required to pay to
obtain a forward interest rate cap,  covering a notional  principal amount equal
to the anticipated  Principal  Amount from time to time during the third year of
the term of the  Loans,  providing  for a capped  rate of no more than 9.25% per
annum (the floating rate being, at Borrower's  option, the one (1)-, two (2)- or
three (3) month LIBOR Base Rate),  for a term  coinciding with the third year of
the term of the Loans.  The total  amount  held back as of any date shall be the
Cap Cost in effect  for such  date,  as the same may  increase  or  decrease  in
accordance  with the  foregoing.  The parties  hereto  acknowledge  that for

                                       24

<PAGE>

the period from the date  hereof  through  December  31,  2000,  the Cap Cost is
$206,000,  and such amount will be held back from  availability  under the Loans
for  purposes of the Initial  Funding and any  subsequent  fundings  during such
period.  Borrower  covenants that if, at any time during the first two (2) years
of the terms of the Loans,  the Cap Cost  exceeds the amount of the  undisbursed
portion of the Loans (other than the Debt Service  Allocation),  Borrower shall,
within three (3) Business Days after demand by Administrative  Agent, deposit an
amount  equal to such excess with  Administrative  Agent,  which amount shall be
deposited  by  Administrative  Agent into an  interest-bearing,  "blocked"  cash
collateral  account  to be  established  with  Administrative  Agent  (the  "Cap
Collateral Account") and held by Administrative Agent for the benefit of Lenders
as hereinafter provided.  Borrower hereby assigns the Cap Collateral Account and
all sums therein,  including interest thereon, to Administrative  Agent, for the
benefit  of  Lenders,  as  security  for  the  payment  and  performance  of the
Obligations  and  acknowledges  that  Borrower  shall have no right to such sums
except  to  the  extent  specifically  provided  for  herein.  Borrower  further
acknowledges that Administrative  Agent shall retain possession of all documents
evidencing the Cap Collateral  Account to perfect its security interest therein.
Notwithstanding  anything to the contrary contained herein,  upon the occurrence
of an Event of Default,  Administrative Agent may, at the option of the Required
Lenders,  apply  any and  all  sums in the  Cap  Collateral  Account  (including
interest) to the immediate  reduction of the Principal Amount and/or accrued and
unpaid interest  and/or other sums payable  hereunder or under the Note or other
Loan Documents,  in such order and amounts as the Required  Lenders shall elect.
Administrative  Agent is hereby appointed  Borrower's  attorney-in-fact  for the
purpose  of  withdrawing  any and all  sums  from  the Cap  Collateral  Account.
Borrower agrees to execute such further documents (including security agreements
and UCC-1 financing statements) and do such further acts as Administrative Agent
may  reasonably  request  to  confirm or perfect  the  assignment  and  security
interest provided for in this Section.

                  (b) Borrower  covenants  that it will, on or before the second
anniversary of the date hereof, enter into an interest rate cap agreement,  with
a counterparty  reasonably  satisfactory to Administrative Agent,  conforming to
the  requirements  of  paragraph  (a) above,  and will  execute  and  deliver to
Administrative Agent an assignment thereof  substantially in the form of the Cap
Assignment (and will cause the counterparty  under such cap agreement to consent
to such assignment). The amount withheld from disbursement pursuant to paragraph
(a) above shall be disbursed to pay  Borrower's  cost of obtaining such interest
rate  cap,  and for no other  purpose;  provided,  however,  that if the  amount
withheld  exceeds the actual cost  Borrower pays for such interest rate cap, the
restrictions of this Section shall not apply to the funding of such excess.

                  (c)  Upon  Borrower's  entering  into  an  interest  rate  cap
agreement and delivering an assignment  thereof consented to be the counterparty
as required by paragraph (b) above,  the provisions of paragraph (a) shall cease
to apply, and Administrative  Agent shall,  within three (3) Business Days after
the satisfaction of such conditions,  release all sums (including interest),  if
any,  then on deposit in the Cap  Collateral  Account to Borrower  and such sums
shall be deemed free of the assignment and security interest created pursuant to
this Section,  and  Administrative  Agent shall  execute such further  documents
(including  UCC  termination  statements)  to confirm the  foregoing as Borrower
shall reasonably request.

                                       25

<PAGE>

                                  ARTICLE III

                       YIELD PROTECTION; ILLEGALITY; ETC.

                  Section 3.01 Additional Costs.  Borrower shall pay directly to
Administrative  Agent,  for the account of the applicable  Lender,  from time to
time within thirty (30) days after demand, any increased costs actually incurred
by such Lender  resulting  from its making or  maintaining  a LIBOR Loan, or its
obligation to make or maintain a LIBOR Loan, or its obligation to Convert a Base
Rate Loan to a LIBOR Loan hereunder,  or any reduction in any amount  receivable
by such Lender hereunder in respect of its LIBOR Loan or such obligations  (such
increases in costs and  reductions  in amounts  receivable  being herein  called
"Additional Costs"), in each case resulting from any Regulatory Change which:

                        (1) changes the basis of taxation of any amounts payable
                  to such Lender under this  Agreement or the Note in respect of
                  any such LIBOR Loan (other than changes in the rate of general
                  corporate,  franchise,  branch  profit,  net  income  or other
                  income tax  imposed on such Lender or its  Applicable  Lending
                  Office  by the  jurisdiction  in  which  such  Lender  has its
                  principal office or such Applicable Lending Office); or

                        (2)  (other  than  to  the  extent  the  LIBOR   Reserve
                  Requirement  is taken into  account in  determining  the LIBOR
                  Rate at the  commencement of the applicable  Interest  Period)
                  imposes or modifies  any  reserve,  special  deposit,  deposit
                  insurance or  assessment,  minimum  capital,  capital ratio or
                  similar  requirements  relating to any extensions of credit or
                  other assets of, or any deposits with or other liabilities of,
                  such Lender (including any LIBOR Loan or any deposits referred
                  to in the  definition  of  "LIBOR  Interest  Rate" in  Section
                  1.01),  or any  commitment  of  such  Lender  (including  such
                  Lender's Loan Commitment hereunder); or

                        (3) imposes any other condition affecting this Agreement
                  or  the  Note  (or  any  of  such   extensions  of  credit  or
                  liabilities).

                  In connection  with the  foregoing,  each Lender agrees not to
seek  compensation  from Borrower for any Additional Costs unless such Lender is
generally  seeking  similar  compensation  for such  Additional  Costs  from its
similarly situated  borrowers and each Lender shall use commercially  reasonable
efforts to mitigate the amount of Additional Costs (which shall not require such
Lender to incur any material  costs or to  restructure  or reallocate any assets
other than its Loan).

                  Without  limiting  the effect of the  provisions  of the first
paragraph  of this  Section,  in the event  that,  by  reason of any  Regulatory
Change,  any Lender either (i) incurs  Additional  Costs based on or measured by
the excess  above a  specified  level of the

                                       26

<PAGE>

amount of a category  of  deposits of other  liabilities  of such  Lender  which
includes deposits by reference to which the LIBOR Interest Rate is determined as
provided  herein or a category of  extensions  of credit or other assets of such
Lender which  includes  loans based on the LIBOR  Interest  Rate or (ii) becomes
subject  to  restrictions  on the amount of such a category  of  liabilities  or
assets which it may hold,  then,  if such Lender so elects by notice to Borrower
(with a copy to Administrative  Agent),  the obligation of such Lender to permit
Elections of, to Continue, or to Convert Base Rate Loans into, LIBOR Loans shall
be suspended (in which case the  provisions of Section 3.04 shall be applicable)
until such Regulatory Change ceases to be in effect.

                  Determinations  and  allocations  by a Lender for  purposes of
this  Section of the effect of any  Regulatory  Change  pursuant to the first or
second  paragraph of this  Section,  on its costs or rate of return of making or
maintaining  its Loan or  portions  thereof  or on amounts  receivable  by it in
respect of its Loan or portions thereof,  and the amounts required to compensate
such Lender under this Section, shall be conclusive absent manifest error.

                  Section 3.02 Limitation on Types of Loans.  Anything herein to
the contrary  notwithstanding,  if on or prior to the determination of the LIBOR
Interest Rate for any Interest Period:

                        (1) Administrative Agent determines (which determination
                  shall be conclusive  absent manifest error) that quotations of
                  interest  rates for the relevant  deposits  referred to in the
                  definition  of "LIBOR  Interest  Rate" in Section 1.01 are not
                  being  provided in the  relevant  amounts or for the  relevant
                  maturities for purposes of  determining  rates of interest for
                  the LIBOR Loans as provided herein; or

                        (2) a Lender  determines (which  determination  shall be
                  conclusive) and promptly  notifies  Administrative  Agent that
                  the relevant  rates of interest  referred to in the definition
                  of "LIBOR  Interest  Rate" in  Section  1.01 upon the basis of
                  which the rate of interest  for LIBOR Loans for such  Interest
                  Period is to be determined do not adequately cover the cost to
                  such Lender of making or maintaining  such LIBOR Loan for such
                  Interest Period;

then Administrative Agent shall give Borrower prompt notice thereof, and so long
as  such  condition  remains  in  effect,  Lenders  (or,  in  the  case  of  the
circumstances described in clause (2) above, the affected Lender) shall be under
no  obligation  to permit  Elections of LIBOR Loans,  to Convert Base Rate Loans
into LIBOR Loans or to  Continue  LIBOR Loans and  Borrower  shall,  on the last
day(s) of the then current Interest Period(s) for the affected outstanding LIBOR
Loans,  either (x) prepay the  affected  LIBOR Loans or (y) Convert the affected
LIBOR Loans into Base Rate Loans in accordance with Section 2.11.

                  Section 3.03 Illegality.  Notwithstanding  any other provision
of this Agreement,  in the event that it becomes  unlawful for any Lender or its
Applicable  Lending  Office to honor its  obligation to make or maintain a LIBOR
Loan  hereunder,  to

                                       27

<PAGE>

allow  Elections  of a LIBOR  Loan or to  Convert  a Base Rate Loan into a LIBOR
Loan, then such Lender shall promptly notify  Administrative  Agent and Borrower
thereof and such  Lender's  obligation  to make or maintain a LIBOR Loan,  or to
permit Elections of, to Continue, or to Convert its Base Rate Loan into, a LIBOR
Loan shall be suspended  (in which case the  provisions of Section 3.04 shall be
applicable)  until such time as such Lender may again make and  maintain a LIBOR
Loan.

                  Section 3.04 Treatment of Affected  Loans.  If the obligations
of any Lender to make or  maintain a LIBOR  Loan,  or to permit an Election of a
LIBOR Loan,  to Continue its LIBOR Loan, or to Convert its Base Rate Loan into a
LIBOR Loan, are suspended  pursuant to Sections 3.01 or 3.03 (each LIBOR Loan so
affected being herein called an "Affected  Loan"),  such Lender's  Affected Loan
shall be  automatically  Converted  into a Base Rate Loan on the last day of the
then  current  Interest  Period  for the  Affected  Loan  (or,  in the case of a
Conversion  (or  conversion)  required by Sections 3.01 or 3.03, on such earlier
date as such Lender may specify to Borrower).

                  To the extent  that such  Lender's  Affected  Loan has been so
Converted  (or the  interest  rate  thereon  so  converted),  all  payments  and
prepayments  of  principal  which would  otherwise  be applied to such  Lender's
Affected  Loan  shall be applied  instead to its Base Rate Loan and such  Lender
shall have no obligation to Convert its Base Rate Loan into a LIBOR Loan.

                  Section  3.05  Certain  Compensation.  Borrower  shall  pay to
Administrative Agent, for the account of the applicable Lender, upon the written
request of such Lender through Administrative Agent (which request shall include
a calculation of the amount(s) due), such amount or amounts to compensate it for
any loss, cost or expense actually  incurred by such Lender that is attributable
to:

                        (1) any payment,  prepayment  or  Conversion  of a LIBOR
                  Loan made by such  Lender on a date other than the last day of
                  an   applicable   Interest   Period,   whether  by  reason  of
                  acceleration or otherwise; or

                        (2) any failure by Borrower for any reason to Convert or
                  Continue a LIBOR Loan to be  Converted  or  Continued  by such
                  Lender on the date specified  therefor in the relevant  notice
                  under  Section  2.13 (it  being  understood  that no notice of
                  Continuation  or  Conversion  is  required  in the  case of an
                  automatic  Continuation  or  Conversion  pursuant  to the last
                  sentence of Section 2.13,  but that Borrower will be deemed to
                  give such notice); or

                        (3) any failure by Borrower to borrow (or to qualify for
                  a  borrowing  of) a LIBOR Loan which would  otherwise  be made
                  hereunder  on the  date  specified  in the  relevant  Election
                  notice under Section 2.13 (it being  understood that no notice
                  of  Election  is  required  in the case of a  deemed  Election
                  pursuant to the second to last sentence of Section  2.13,  but
                  that Borrower will be deemed to give such notice).

                                       28

<PAGE>

                  Without  limiting  the  foregoing,   such  compensation  shall
include an amount  equal to the present  value  (using as the  discount  rate an
interest  rate  equal to the rate  determined  under  clause  (y)  below) of the
excess,  if any,  of (x) the amount of  interest  (exclusive  of the  Applicable
Margin)  which  otherwise  would have accrued on the  principal  amount so paid,
prepaid,  Converted or Continued (or not  Converted,  Continued or borrowed) for
the period from the date of such payment, prepayment, Conversion or Continuation
(or failure to Convert,  Continue or borrow) to the last day of the then current
applicable Interest Period (or, in the case of a failure to Convert, Continue or
borrow,  to the last day of the  applicable  Interest  Period  which  would have
commenced  on the  date  specified  therefor  in  the  relevant  notice)  at the
applicable rate of interest for the LIBOR Loan provided for herein, over (y) the
amount of interest (as  reasonably  determined  by such  Lender)  based upon the
interest  rate which such Lender would have bid in the London  interbank  market
for  Dollar  deposits,  for  amounts  comparable  to such  principal  amount and
maturities  comparable to such period.  A determination  of any Lender as to the
amounts  payable  pursuant to this Section shall be conclusive  absent  manifest
error.

                  Section  3.06  Capital  Adequacy.  If any  Lender  shall  have
determined that, after the date hereof, the adoption of any applicable law, rule
or regulation  regarding capital adequacy,  or any change therein, or any change
in the interpretation or administration  thereof by any Governmental  Authority,
central  bank  or  comparable   agency  charged  with  the   interpretation   or
administration  thereof,  or any request or directive regarding capital adequacy
(whether  or not  having the force of law) of any such  Governmental  Authority,
central bank or comparable  agency, has or would have the effect of reducing the
rate of return on capital of such  Lender (or its  Parent) as a  consequence  of
such Lender's obligations  hereunder to a level below that which such Lender (or
its  Parent)  could have  achieved  but for such  adoption,  change,  request or
directive  (taking  into  consideration  its  policies  with  respect to capital
adequacy) by an amount  deemed by such Lender to be material,  then from time to
time,  within  fifteen  (15) days after  demand by such  Lender  (with a copy to
Administrative Agent),  Borrower shall pay to such Lender such additional amount
or amounts as will  compensate  such Lender (or its Parent) for such  reduction;
provided, however, that no Lender shall be permitted to recover any such amounts
that relate to any period prior to the date one hundred  twenty (120) days prior
to the date of such demand.  A certificate of any Lender  claiming  compensation
under this Section, setting forth in reasonable detail the basis therefor, shall
be conclusive absent manifest error.

                  Section  3.07  Substitution  of  Lenders.  If any  Lender  (an
"Affected  Lender")  (i) makes  demand  upon  Borrower  for (or if  Borrower  is
otherwise  required to pay) Additional Costs pursuant to Section 3.01 or amounts
pursuant to Section  3.06 or (ii) gives  notice to Borrower  that such Lender is
unable to make or maintain a LIBOR Loan as a result of a condition  described in
Section 3.03 or clause (2) of Section  3.02,  Borrower  may,  within ninety (90)
days of receipt of such demand or notice (or the  occurrence of such other event
causing  Borrower to be required to pay Additional  Costs or amounts pursuant to
Section  3.06 or  causing  Section  3.03 or  clause  (2) of  Section  3.02 to be
applicable),  as the case may be,  give  notice  (a  "Substitution  Notice")  to
Administrative  Agent and to each Lender of Borrower's  intention  either (x) to
prepay in full the Affected Lender's Loan and to terminate the Affected Lender's
entire Loan  Commitment  or (y) to replace  the  Affected  Lender  with  another
financial  institution (a "Substitute  Lender")  designated in such Substitution
Notice.

                                       29

<PAGE>

                  In the event Borrower opts to give the notice  provided for in
clause (x) above,  and if the Affected Lender shall not agree within thirty (30)
days of its  receipt  thereof to waive the  payment of the  Additional  Costs or
amounts pursuant to Section 3.06 in question or the effect of the  circumstances
described in Section  3.03 or clause (2) of Section  3.02,  then,  so long as no
Event of Default  shall exist,  Borrower  may  terminate  the Affected  Lender's
entire Loan  Commitment,  provided that in  connection  therewith it pays to the
Affected Lender all outstanding  principal and accrued and unpaid interest under
the Affected  Lender's Loan,  together with all other amounts,  if any, due from
Borrower to the Affected  Lender,  including all amounts  properly  demanded and
unreimbursed under this Article III.

                  In the event Borrower opts to give the notice  provided for in
clause (y) above, and if (A) Administrative Agent shall, within thirty (30) days
of its receipt of the  Substitution  Notice,  notify Borrower and each Lender in
writing  that the  proposed  Substitute  Lender is  reasonably  satisfactory  to
Administrative  Agent and (B) the Affected Lender shall not, prior to the end of
such thirty (30)-day period,  agree to waive the payment of the Additional Costs
or  amounts  pursuant  to  Section  3.06  in  question  or  the  effect  of  the
circumstances  described in Section 3.03 or clause (2) of Section 3.02, then the
Affected Lender shall, so long as no Event of Default shall exist, assign all of
its rights and  obligations  under this Agreement and the Note to the Substitute
Lender,  and the  Substitute  Lender shall  assume all of the Affected  Lender's
rights and obligations,  pursuant to an agreement,  substantially in the form of
an Assignment and Assumption Agreement,  executed by the Affected Lender and the
Substitute  Lender.  In connection  with such  assignment  and  assumption,  the
Substitute  Lender  shall pay to the  Affected  Lender  an  amount  equal to the
outstanding  principal amount under the Affected Lender's Loan plus all interest
accrued thereon, plus all other amounts, if any (other than the Additional Costs
in question),  then due and payable to the Affected Lender;  provided,  however,
that  prior  to or  simultaneously  with  any such  assignment  and  assumption,
Borrower shall have paid to such Affected Lender all amounts  properly  demanded
and  unreimbursed  under  this  Article  III.  Upon the  effective  date of such
assignment  and  assumption  and  the  payment  by  the  Substitute   Lender  to
Administrative  Agent of a fee, for Administrative  Agent's own account,  in the
amount of $3,500,  the Substitute  Lender shall become a party to this Agreement
and shall have all the rights and  obligations  of a Lender as set forth in such
Assignment and Assumption  Agreement,  and the Affected Lender shall be released
from its  obligations  hereunder,  and no further consent or action by any party
shall be required.  If the Substitute Lender is not incorporated  under the Laws
of the United States or a state  thereof,  it shall,  prior to the first date on
which  interest  or fees are  payable  hereunder  for its  account,  deliver  to
Borrower and Administrative  Agent  certification as to exemption from deduction
or  withholding  of any United States  federal  income taxes in accordance  with
Section  10.13.  Each  Substitute  Lender  shall  be  deemed  to have  made  the
representations  contained in, and shall be bound by the  provisions of, Section
10.13.

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<PAGE>

                  Borrower,  Administrative Agent and Lenders shall execute such
modifications  to  the  Loan  Documents  as  shall  be  reasonably  required  in
connection with and to effectuate the foregoing.

                  Section 3.08 "Lender" to Include Participants. For purposes of
Sections 3.01 through 3.06 and of the definition of "Additional Costs", the term
"Lender"  shall,  at each  Lender's  option,  be deemed to include such Lender's
present  and  future  Participants  in its  Loan  to the  extent  of  each  such
Participant's actual Additional Costs or other losses, costs or expenses payable
pursuant to this Article III.

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

                  Section  4.01  Conditions  Precedent to Initial  Funding.  The
obligations  of Lenders  hereunder and the obligation of each Lender to fund its
Pro Rata Share of the Initial  Funding are  subject to the  condition  precedent
that Lenders shall have received and approved on or before the Closing Date each
of the following  documents,  and each of the following  requirements shall have
been fulfilled:

                        (1) Fees and  Expenses.  The payment of (i) all fees and
                  expenses  incurred by Merrill Lynch and  Administrative  Agent
                  (including,   without  limitation,  the  reasonable  fees  and
                  expenses of legal counsel, the Engineering  Consultant and any
                  valuation, environmental or insurance consultants), (ii) those
                  fees specified in the Supplemental Letter Agreement to be paid
                  by Borrower on or before the Closing  Date and (iii) the first
                  installment  of the  administration  fee  required  by Section
                  2.07(a);

                        (2) Note. The Note, duly executed by Borrower;

                        (3) Mortgage and UCCs.  The  Mortgage,  duly executed by
                  Borrower  and  recorded  in  the  appropriate   land  records,
                  together with duly executed  financing  statements filed under
                  the Uniform Commercial Code of all jurisdictions necessary or,
                  in the  reasonable  opinion of  Merrill  Lynch,  desirable  to
                  perfect the lien created by the Mortgage;

                        (4) Guaranties and Environmental Indemnity. The Guaranty
                  of  Completion  (duly  executed by Reckson),  the Guaranty and
                  Indemnity  Agreement (duly executed by  Metropolitan)  and the
                  Environmental   Indemnity   (duly  executed  by  Borrower  and
                  Metropolitan);

                        (5) Assignments and UCCs. The Assignments, duly executed
                  by the  parties  thereto,  together  with such  duly  executed
                  Uniform Commercial Code financing  statements as are necessary
                  or, in the reasonable  opinion of Merrill Lynch,  desirable to
                  perfect the liens created by the Assignments;

                                       31

<PAGE>

                        (6) Title Policy.  A paid title  insurance  policy (or a
                  paid, irrevocable, unconditional commitment to issue a policy)
                  in the amount of the Mortgage, in ALTA 10-17-92 (with New York
                  endorsements)  or other form  approved  by  Merrill  Lynch and
                  issued by the Title  Insurer,  which shall insure the Mortgage
                  to be a  valid  first  lien  on  Borrower's  interests  in the
                  Property  and  Improvements,  free  and  clear  of all  liens,
                  defects,   encumbrances   and  exceptions   other  than  those
                  previously approved by Administrative Agent, and shall contain
                  (i)  full  coverage   against   mechanics'  liens  (filed  and
                  inchoate),  (ii) a  reference  to  the  survey  but no  survey
                  exceptions,  (iii) if such  policy  (or  commitment)  is dated
                  earlier than the date of the Initial  Funding,  an endorsement
                  to such policy (or commitment),  in a form approved by Merrill
                  Lynch,  in form  satisfactory  to Merrill Lynch,  redating the
                  policy (or  commitment) as of the date of the Initial  Funding
                  and setting  forth no additional  exceptions  other than those
                  approved by Merrill Lynch and (iv) such affirmative  insurance
                  and  endorsements  as Merrill Lynch may require;  and shall be
                  accompanied by such reinsurance  agreements  between the Title
                  Insurer and title companies approved by Merrill Lynch, in ALTA
                  facultative  form  approved  by Merrill  Lynch and with direct
                  access provisions, as Merrill Lynch may require;

                        (7)   Survey.    A   current   survey,    certified   to
                  Administrative  Agent and the Title  Insurer,  showing (i) the
                  location  of the  perimeter  of the  Property  by courses  and
                  distances,  (ii) all  easements,  rights-of-way,  and  utility
                  lines  referred  to in  the  title  policy  required  by  this
                  Agreement  or which  actually  service  or cross the  Property
                  (with instrument,  book and page number indicated),  (iii) the
                  lines of the  streets  abutting  the  Property  and the  width
                  thereof,  and any  established  building  lines (and that such
                  roads have been dedicated for public use and are completed and
                  have been accepted by all required Governmental  Authorities),
                  (iv)  any  encroachments  and  the  extent  thereof  upon  the
                  Property,  (v)  locations  of all  portions  (with the acreage
                  thereof also  identified)  of the Property,  if any, which are
                  located  in an area  designated  as a  "flood  prone  area" as
                  defined by U.S.  Department  of Housing and Urban  Development
                  pursuant to the Flood Disaster Protection Act of 1973 and (vi)
                  the Improvements, and the relationship thereof by distances to
                  the perimeter of the Property,  established building lines and
                  street lines;

                        (8)   Appraisal.   An  independent   M.A.I.   appraisal,
                  commissioned by Merrill Lynch,  which appraisal shall indicate
                  both (x) the "as is"  value  of  Borrower's  interests  in the
                  Property  and  Improvements  and  (y)  the  "completed  value"
                  thereof  assuming the full  completion  of and payment for the
                  Work and tenant improvements and leasing commissions presently
                  budgeted for the currently unleased space in the Improvements,
                  and shall comply in all respects  with the  standards for real
                  estate  appraisals   established  pursuant  to  the  Financial
                  Institutions Reform, Recovery, and Enforcement Act of 1989 and
                  the Uniform Standards of Professional Appraisal Practice;

                        (9) Insurance Policies. The policies and certificates of
                  hazard and other insurance required by the Mortgage,  together
                  with evidence of the payment of the premiums therefor;

                                       32

<PAGE>

                        (10) Environmental Assessment Reports/Reliance Letter. A
                  Phase I  Environmental  Assessment  Report (with  accompanying
                  "reliance   letter")   with   respect  to  the   Property  and
                  Improvements   in  accordance   with  ASTM  Standard   1527-97
                  performed  by a consultant  selected by Merrill  Lynch and, if
                  required, any subsequent reports,  including a Phase II report
                  (with accompanying  "reliance  letter"),  necessary to satisfy
                  said  consultant  that  no  adverse  environmental  conditions
                  exist;

                        (11)   Work.   A   complete   set  of  the   plans   and
                  specifications  for  the  building-wide  capital  improvements
                  portion  of the Work and a budget  and time  schedule  for the
                  completion of the Work (it being  acknowledged that the budget
                  and  schedule  set forth in  EXHIBIT  F for the  building-wide
                  capital improvements portion of the Work are approved);

                        (12)  Consultant's  Report.  A detailed  report from the
                  Engineering Consultant to the effect that (i) the Improvements
                  are in  satisfactory  condition and have been  constructed  in
                  accordance with the plans and specifications therefor approved
                  by  all   applicable   Governmental   Authorities,   (ii)  the
                  Improvements comply with all applicable zoning and other Laws,
                  and (iii) the Work can be  completed  within  the  budget  and
                  schedule therefor;

                        (13) Permits and Other Approvals.  Copies of any and all
                  authorizations, including plot plan and subdivision approvals,
                  zoning variances,  sewer, building and other permits, required
                  by all  Governmental  Authorities  for the use,  occupancy and
                  operation of the Property  and/or  Improvements  in accordance
                  with  all  applicable  building,  environmental,   ecological,
                  landmark, subdivision and zoning Laws;

                        (14) Leases. Copies,  certified to be true and complete,
                  of all executed leases of the Improvements (which leases shall
                  include, without limitation,  the Debevoise Lease, the Schulte
                  Lease and the BNP Lease), accompanied by notices of assignment
                  (in the form of EXHIBIT  E),  estoppel  certificates  from the
                  tenants  thereunder  and,  in the case of Major  Leases (i) at
                  Merrill  Lynch's  option,  subordination  non-disturbance  and
                  attornment  agreements  and  (ii)  to  the  extent  available,
                  current financial statements of the tenants (and guarantors of
                  the tenants' obligations, if applicable) thereunder;  together
                  with  the  first  rent  roll,  leasing  report  and  operating
                  statement required by paragraph (3) of Section 6.09;

                        (15)  Tenant LCs.  The  original,  executed  Tenant LCs,
                  certified by Borrower to be true and  complete,  together with
                  assignments  in blank,  executed  by  Borrower,  with  respect
                  thereto;

                        (16)  Ground  Lease  and  Premises  Documents.  A  copy,
                  certified  to be true and  complete,  of the Ground  Lease and
                  each  of  the  Premises  Documents,   together  with  estoppel
                  certificates  with  respect  thereto  from each of the parties
                  thereto;

                                       33

<PAGE>

                        (17) Management and Leasing Contracts. Copies, certified
                  to be true and complete,  of all existing contracts  providing
                  for  the   management   or   leasing  of  the   Property   and
                  Improvements,  together  with, in each case,  such  collateral
                  assignments  or  "will-serve"  letters  as  Merrill  Lynch may
                  require;

                        (18) UCC Searches. Uniform Commercial Code searches with
                  respect to Borrower  and advice from the Title  Insurer to the
                  effect that searches of the proper public records  disclose no
                  leases of personalty or financing statements filed or recorded
                  against Borrower or the Mortgaged Property;

                        (19)  Financial  Statements.  For  each of  Reckson  and
                  Metropolitan,  Financial  Statements  (audited  in the case of
                  Reckson and unaudited (but  certified by a Financial  Officer)
                  in the  case of  Metropolitan),  each  as of and for the  year
                  ended December 31, 1999, and unaudited  Financial  Statements,
                  certified by a Financial  Officer of Reckson or  Metropolitan,
                  as the case may be, as of and for the  quarter  ended June 30,
                  2000;

                        (20) Organizational Documents. If Borrower, Guarantor or
                  any general partner or member of any of them is a corporation,
                  current copies of the following documents with respect to each
                  (unless otherwise indicated):

                             (i)   a   good-standing    certificate   from   the
                        jurisdiction of its incorporation,

                             (ii)  a  resolution,  certified  by  the  corporate
                        secretary,  of  the  shareholders  or  directors  of the
                        corporation   authorizing   the   consummation   of  the
                        transactions  contemplated  hereby  and  the  execution,
                        delivery and performance of the Loan Documents and other
                        documents to be executed, delivered or performed by said
                        corporation  (including  any  substitute or  replacement
                        Note to be executed and delivered  pursuant to the terms
                        hereof), and

                             (iii) a certificate  of the corporate  secretary as
                        to the  incumbency of the officers  executing any of the
                        documents required hereby,

                  and, if Borrower,  Guarantor or any general  partner or member
                  of any of them is a partnership,  venture,  limited  liability
                  company or trust:

                             (iv) the entity's organizational  agreement and all
                        amendments  and  attachments  thereto,  certified  by  a
                        general partner,  venturer, member or trustee to be true
                        and complete,

                             (v) any certificates  filed or required to be filed
                        by the entity in the jurisdiction of its formation, and

                             (vi)   evidence   of  the   authorization   of  the
                        consummation of the transactions contemplated hereby and
                        the  execution,  delivery  and  performance  of the Loan
                        Documents  and  any  other  documents  to  be  executed,
                        delivered  and performed by said entity  (including  any
                        substitute  or  replacement  Note  to  be  executed  and
                        delivered  pursuant to the terms hereof),  and including
                        any required consents by partners,  venturers,  members,
                        trustees or beneficiaries;

                                       34

<PAGE>

                        (21) Solvency  Certificates.  A duly  executed  Solvency
                  Certificate for each of Borrower, Reckson and Metropolitan;

                        (22) Opinion of Counsel. A favorable opinion,  dated the
                  Closing  Date,  of counsel for Borrower and  Guarantor,  as to
                  such matters as Merrill Lynch may reasonably request;

                        (23)  Authorization  Letter.  The Authorization  Letter,
                  duly executed by Borrower;

                        (24)  Request  for  Funding.  A request  for  funding in
                  accordance  with Section 2.04,  together with such  supporting
                  documentation as Administrative Agent may reasonably request;

                        (25) Certificate. The following statements shall be true
                  and  Administrative  Agent shall have  received a  certificate
                  dated  as of the  Closing  Date  signed  by a duly  authorized
                  signatory of Borrower  stating,  to the best of the certifying
                  party's knowledge, the following:

                             (i) All representations and warranties contained in
                        this  Agreement and in each of the other Loan  Documents
                        are true and correct in all material  respects on and as
                        of the  Closing  Date as  though  made on and as of such
                        date,

                             (ii) No Default or Event of  Default  has  occurred
                        and is  continuing,  or is  likely  to  result  from the
                        transactions  contemplated  by  this  Agreement  and the
                        other Loan Documents, and

                             (iii) None of the  Improvements has been materially
                        injured or damaged by fire or other casualty;

                        (26)  Supplemental  Letter  Agreement.  The Supplemental
                  Letter Agreement, duly executed by Borrower;

                        (27) Interest Rate  Protection and  Assignment.  A fully
                  executed counterpart of an interest rate cap agreement between
                  Borrower,  as fixed rate payor,  and a  financial  institution
                  reasonably acceptable to Merrill Lynch, as floating rate payor
                  (the floating  rate being the one (1)-month  LIBOR Base Rate),
                  covering a notional  amount of  $200,000,000,  providing for a
                  capped  rate of no  more  than  9.25%  per  annum,  for a term
                  expiring no earlier than, at Borrower's option, either (x) the
                  Maturity  Date  or (y)  the  second  anniversary  of the  date
                  hereof,  and  otherwise  on terms  and  conditions  reasonably
                  satisfactory  to Merrill  Lynch,  together  with an assignment
                  (the "Cap  Assignment")  of  Borrower's  rights  thereunder to
                  Administrative   Agent  as  security  for  the  Loans,   which
                  assignment  shall be  acknowledged  and  consented  to by said
                  financial  institution;  if Borrower  opts to enter into a two
                  (2) year cap pursuant to clause (y) above, then the provisions
                  of Section 2.17 shall apply;

                                       35

<PAGE>

                        (28)  Reckson  Credit  Facility.  Copies,  certified  by
                  Reckson to be true and complete,  of all documents evidencing,
                  securing or otherwise  relating to the Reckson Credit Facility
                  other  than any such  documents  which  relate  solely  to the
                  payment  of fees or other  items  which  are  confidential  in
                  nature;

                        (29)  Subordinate  Loan  Documents.   Original  executed
                  counterparts  certified  by  Borrower  and the  holder  of the
                  Subordinate  Loan to be true and  complete,  of all  documents
                  evidencing,  securing or otherwise relating to the Subordinate
                  Loan;

                        (30)   Subordination    Agreement.   The   Subordination
                  Agreement,  duly executed by the parties thereto and in proper
                  form for recording;

                        (31) Bankruptcy Documents. A court-certified copy of the
                  order of the  bankruptcy  court order  confirming  the Plan of
                  Reorganization  for  919 Fee  Associates  L.P.  and 919  Third
                  Avenue Associates L.P.; and

                        (32)  Additional   Materials.   Such  other   approvals,
                  documents,   instruments   or   opinions   as  any  Lender  or
                  Administrative Agent may reasonably request.

The  disbursement  of the Initial  Funding  shall be  conclusive  evidence  that
Lenders have  received (or waived the  requirement  that  Borrower  deliver) the
items  described in this Section,  other than those items listed in that certain
Deferred Conditions Letter of even date herewith, which items Borrower covenants
to deliver by the times specified in such Deferred Conditions Letter.

                  Section  4.02  Conditions  Precedent  to  Fundings  After  the
Initial  Funding.  The  obligation  of each Lender to make fundings of the Loans
subsequent  to the  Initial  Funding  shall be  subject to  satisfaction  of the
following conditions precedent:

                        (1) No (i) Event of Default, (ii) Default in the payment
                  of  interest  or  (iii)  any  other  Default  which,   in  the
                  reasonable judgment of the Required Lenders, is material shall
                  have occurred and be continuing as of the date of the funding;

                        (2)  Administrative  Agent shall have received a request
                  for funding in accordance with Section 2.04;

                        (3)  Administrative  Agent  shall  have  received  (i) a
                  severance  agreement  and  an  original  substitute  note  and
                  mortgage from  Borrower,  evidencing and securing a portion of
                  the  indebtedness  secured by the  Subordinate  Mortgage  in a
                  principal  amount equal to the amount of the  funding,  (ii) a
                  confirmatory  assignment  of  such  substitute  mortgage  from
                  Subordinate Lender to

                                       36

<PAGE>

                  Administrative Agent, for the benefit of the Lenders,  (iii) a
                  note and mortgage  consolidation  and  modification  agreement
                  between Borrower and  Administrative  Agent that  consolidates
                  such substitute  mortgage and note with the existing  Mortgage
                  and Note and modifies such substitute  mortgage and note to be
                  on the same terms as the  existing  Mortgage  and Note,  and a
                  replacement Note from Borrower to Administrative Agent on such
                  terms in the  consolidated  amount,  together  with a  related
                  affidavit from a representative  of Borrower under Section 255
                  of the New York Tax Law (all of the foregoing to be reasonably
                  satisfactory to  Administrative  Agent and to be duly executed
                  and,  where   applicable,   acknowledged  by  Borrower  and/or
                  Subordinate  Lender) and (iv) such  evidence  of  partnership,
                  limited liability company or corporate action to authorize the
                  execution  and  performance  of  the  foregoing  documents  as
                  Administrative Agent may request;

                        (4)   Administrative   Agent   shall  have   received  a
                  continuation  report and endorsement to the title  policy(ies)
                  (or  commitment(s))  insuring the Mortgage to the date of such
                  funding, in form reasonably approved by Administrative  Agent,
                  which  endorsement shall (i) redate the policy (or commitment)
                  to the date of the  funding,  (ii)  increase the amount of the
                  policy by the  amount of the  funding  and  (iii)  insure  the
                  Mortgage  as  consolidated   and  modified  by  the  documents
                  required by clause (3) above,  without any  exceptions,  other
                  than (x) a survey exception with respect to matters subsequent
                  to the date of the Initial Funding,  (y) those exceptions that
                  are  exceptions  to the title policy  insuring the Mortgage on
                  the  date of the  Initial  Funding  and (z)  other  exceptions
                  reasonably   approved  by  Administrative   Agent;   provided,
                  however,  that from time to time if Administrative Agent has a
                  reasonable  basis to believe  that any changes  have  occurred
                  that would affect the survey of the Property,  Borrower shall,
                  promptly  following receipt of Administrative  Agent's notice,
                  which shall state such reasonable basis, cause the surveyor to
                  update  the  survey,  based  on a  visual  inspection  of  the
                  Property,  and  shall  cause  the  Title  Insurer  to issue an
                  endorsement   omitting  the  general   survey   exception  and
                  replacing it with a survey reading reasonably  satisfactory to
                  Administrative Agent; and

                        (5) Borrower  shall be in compliance  with the covenants
                  set forth in Section 7.03.

                        Section  4.03 Deemed  Representations.  Each  request by
Borrower for, and  acceptance by Borrower of, a funding of proceeds of the Loans
shall constitute a representation  and warranty by Borrower that, as of both the
date of such request and the date of the  funding,  (i) no (x) Event of Default,
(y)  Default in the  payment  of  interest  or (z) other  material  Default  has
occurred and is continuing and (ii) each representation or warranty contained in
this  Agreement or the other Loan  Documents is true and correct in all material
respects (other than for immaterial matters disclosed in writing to Lenders).

                                       37

<PAGE>

                                   ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

                  Borrower  represents and warrants to Administrative  Agent and
each Lender as follows:

                  Section 5.01 Due Organization. Each of Borrower, Guarantor and
their respective  general partners or managing  members,  as the case may be, is
duly  organized,  validly  existing and in good  standing  under the Laws of the
jurisdiction of its organization,  has the power and authority to own its assets
and to transact the business in which it is now engaged, and, if applicable,  is
duly  qualified for the conduct of business and in good standing  under the Laws
of the State of New York and each other jurisdiction in which such qualification
is required.

                  Section 5.02 Power and  Authority;  No  Conflicts;  Compliance
With Laws. The execution,  delivery and performance of the obligations  required
to be performed  by each of Borrower or  Guarantor of the Loan  Documents do not
and will not (i) require the consent or approval of its  shareholders,  partners
or members,  as the case may be, or such consent or approval has been  obtained,
(ii) contravene its certificate of incorporation,  by-laws, operating agreement,
partnership  agreement  or other  organizational  documents,  (iii)  violate any
provision of, or require any filing,  registration,  consent or approval  under,
any Law (including,  without limitation,  Regulation U), order, writ,  judgment,
injunction,   decree,   determination   or  award  presently  in  effect  having
applicability to it, (iv) result in a breach of or constitute a default under or
require any consent under any indenture or loan or credit agreement or any other
agreement,  lease or instrument to which it may be a party or by which it or its
properties  may be bound  or  affected  except  for  consents  which  have  been
obtained,  (v) result in, or require,  the creation or  imposition  of any Lien,
upon or with respect to any of its properties now owned or hereafter acquired or
(vi)  cause it to be in  default  under any such  Law,  order,  writ,  judgment,
injunction,  decree,  determination  or award or any such indenture,  agreement,
lease or  instrument;  each of Borrower and Guarantor is in compliance  with all
Laws  applicable  to it and its  properties,  except to the extent  they are the
subject  of a Good  Faith  Contest  or as would  not be  likely  to  result in a
Material Adverse Change.

                  Section  5.03  Legally  Enforceable   Agreements.   Each  Loan
Document is a legal, valid and binding  obligation of Borrower or Guarantor,  as
the case may be, enforceable against Borrower or Guarantor,  as the case may be,
in accordance with its terms,  except to the extent that such enforcement may be
limited by applicable  bankruptcy,  insolvency  and other similar laws affecting
creditors' rights generally.

                  Section  5.04  Litigation.  There  are no  actions,  suits  or
proceedings  pending or, to its  knowledge,  threatened  against  Borrower,  the
Property,  the  Improvements,  the validity or enforceability of the Mortgage or
the  priority  of the Lien  thereof,  at law or in  equity,  before any court or
arbitrator or any Governmental  Authority  except actions,  suits or proceedings
that have been  disclosed to  Administrative  Agent in writing and (i) are fully
covered by  insurance  or (ii) are not  likely to result in a  Material  Adverse
Change.

                                       38

<PAGE>

                  Section  5.05  Taxes.  Borrower  has  filed  all  tax  returns
(federal,  state  and  local)  required  to be filed  and has  paid  all  taxes,
assessments  and  governmental  charges and levies due and  payable  without the
imposition of a penalty, including interest and penalties,  except to the extent
they are the subject of a Good Faith Contest.

                  Section 5.06 ERISA.  Borrower is in compliance in all material
respects with all applicable provisions of ERISA. Neither a Reportable Event nor
a  Prohibited  Transaction  has  occurred  with  respect to any Plan which could
result in  liability  of  Borrower;  no notice of intent to terminate a Plan has
been filed nor has any Plan been  terminated  within the past five (5) years; no
circumstance  exists  which  constitutes  grounds  under  Section  4042 of ERISA
entitling the PBGC to institute  proceedings to terminate,  or appoint a trustee
to administer, a Plan, nor has the PBGC instituted any such proceedings; neither
Borrower nor the ERISA  Affiliates have completely or partially  withdrawn under
Sections 4201 or 4204 of ERISA from a Multiemployer Plan; Borrower and the ERISA
Affiliates have met the minimum funding  requirements of Section 412 of the Code
and Section 302 of ERISA of each with  respect to the Plans of each and there is
no  material  "Unfunded  Current  Liability"  (as such quoted term is defined in
ERISA) with respect to any Plan  established  or maintained by each; and neither
Borrower nor the ERISA  Affiliates  has incurred any liability to the PBGC under
ERISA (other than for the payment of premiums under Section 4007 of ERISA); and,
in each of the foregoing cases, such circumstances are not likely to result in a
Material  Adverse Change.  Neither the extension of credit evidenced by the Note
nor any other transaction  contemplated  under the Loan Documents  constitutes a
Prohibited Transaction.

                  Section  5.07 No Default on  Outstanding  Judgments or Orders.
Borrower has satisfied all judgments  which are not being  appealed or which are
not fully  covered  by  insurance,  and are not in default  with  respect to any
judgment,  order,  writ,  injunction,  decree,  rule or regulation of any court,
arbitrator  or  federal,  state,  municipal  or  other  Governmental  Authority,
commission, board, bureau, agency or instrumentality, domestic or foreign, which
default is likely to result in a Material Adverse Change.

                  Section  5.08 No  Defaults  on  Other  Agreements.  Except  as
disclosed to Administrative  Agent and Lenders in writing,  neither Borrower nor
Guarantor  is in  default  in any  respect  in the  performance,  observance  or
fulfillment of any of the obligations,  covenants or conditions contained in any
agreement or instrument which is likely to result in a Material Adverse Change.

                  Section 5.09 Government Regulation. Borrower is not subject to
regulation under the Investment Company Act of 1940 or any statute or regulation
limiting its ability to incur  indebtedness  for money borrowed as  contemplated
hereby.

                  Section  5.10  Environmental   Protection.   To  the  best  of
Borrower's  knowledge,  the Property  does not contain any  Hazardous  Materials
that,  under any

                                       39

<PAGE>

Environmental Law currently in effect, (i) would impose liability on Borrower or
Guarantor  that is  likely to result  in a  Material  Adverse  Change or (ii) is
likely to result in the  imposition  of a Lien on any assets of  Borrower if not
properly  handled in accordance  with  applicable Law. To the best of Borrower's
knowledge,  neither it nor any portion of the Property or the Improvements is in
violation  of, or subject to any existing,  pending or  threatened  (in writing)
investigation   or  proceeding  by  any   Governmental   Authority   under,  any
Environmental  Law.  Borrower is not required by any Environmental Law to obtain
any  permits or license  to  construct  or use any  improvements,  fixtures,  or
equipment with respect to the Property, or if such permit or license is required
it has been obtained; and, to the best of Borrower's knowledge, the prior use of
the  Property  has not  resulted  in the  disposal  or release of any  Hazardous
Materials  on or to any  portion of the  Property  or any  surrounding  areas in
violation of applicable Law. The  representations  in this Section shall each be
deemed  subject to and  qualified  by the  information  contained in the Phase I
Environmental  Site Assessment by AquaTerra  Assessment  Services  Corp.,  dated
August  8,  2000  (Project  No.  ATO-PE-10717),  and the  Phase I  Environmental
Assessment by Dames & Moore, dated May 14, 1999.

                  Section 5.11  Solvency.  Borrower and Guarantor  are, and upon
consummation of the transactions  contemplated by this Agreement, the other Loan
Documents and any other documents,  instruments or agreements  relating thereto,
will be, Solvent.

                  Section 5.12 Financial Statements. The Financial Statements of
Borrower and Guarantor most recently  delivered to Lenders pursuant to the terms
of this Agreement are in all material  respects  complete and correct and fairly
present the financial  condition of the subjects  thereof as of the dates of and
for the periods covered by such  statements,  all in accordance with GAAP. There
has  been no  Material  Adverse  Change  since  the date of such  most  recently
delivered  Financial  Statements,  and no borrowings  which might give rise to a
Lien or claim against all or any portion of the Mortgaged  Property  (other than
the  Subordinate  Loan) or against  the  proceeds of the Loans have been made by
Borrower or others  since the dates of such most  recently  delivered  Financial
Statements.

                  Section 5.13  Insurance.  Borrower has in force paid insurance
as  required by the  Mortgage  and  Borrower  has in force paid  insurance  with
financially  sound and reputable  insurance  companies or  associations  in such
amounts and covering such risks as are usually  carried by companies  engaged in
the same type of business and similarly situated.

                  Section 5.14  Accuracy of  Information;  Full  Disclosure.  To
Borrower's  actual  knowledge,  neither this Agreement nor any of the documents,
financial statements, reports, notices, schedules,  certificates,  statements or
other  writings  listed in  EXHIBIT  H or  furnished  after  the date  hereof by
Borrower or  Guarantor or at their  written  direction  in  accordance  with the
requirements  hereof or of the other Loan Documents (other than projections that
are made by Borrower in good faith) contains any untrue or misleading  statement
of a material fact.

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<PAGE>

                  Section  5.15  Separate  Tax  and  Zoning  Lot.  The  Property
constitutes a distinct  parcel for purposes of zoning and of taxes,  assessments
and impositions (public or private) and is not otherwise considered as part of a
larger single lot for purposes of zoning or of taxes, assessments or impositions
(public or private).

                  Section   5.16   Zoning   and  other   Laws;   Covenants   and
Restrictions. Except to the extent non-compliance would not result in a Material
Adverse Change, (i) the Improvements and the uses thereof comply with applicable
zoning, environmental,  ecological,  landmark and other applicable Laws, and all
requirements  for such  uses  have  been  satisfied  and (ii)  Borrower  and the
Property are in compliance with all applicable restrictions and covenants.

                  Section  5.17  Utilities   Available.   All  utility  services
necessary for the operation of the Improvements for their intended  purposes are
available and servicing the Property, including water supply, storm and sanitary
sewer, gas, electric power and telephone facilities.

                  Section 5.18  Creation of Liens.  Borrower has entered into no
contract or arrangement of any kind the  performance of which by the other party
thereto would give rise to a Lien on all or part of the Mortgaged Property prior
to  the  Mortgage.

                  Section  5.19  Roads.   All  roads   necessary  for  the  full
utilization of the Improvements for their intended  purposes have been completed
and  dedicated  to  public  use and  accepted  by all  appropriate  Governmental
Authorities.

                  Section  5.20  Premises  Documents  and  Leases.   Except  for
modifications  delivered to Administrative Agent, the Premises Documents and all
leases are  unmodified  and in full force and effect and, to  Borrower's  actual
knowledge,  there are no defaults under any thereof that are likely to result in
a  Material  Adverse  Change,  and  all  conditions  to  the  effectiveness  and
continuing  effectiveness thereof required to be satisfied as of the date hereof
have been satisfied,  except to the extent  non-satisfaction would not be likely
to result in a Material Adverse Change.

                  For  purposes  of  this  Article  V  the  phrases  "Borrower's
knowledge",  "to the best of Borrower's knowledge" and phrases of similar import
shall mean the actual,  conscious knowledge of Michael Maturo,  Richard Conniff,
Jason Barnett or Tod Waterman, or their successors in their present positions in
Borrower or  Guarantor,  provided  that such  individuals  have made  reasonable
inquiry into the truth of the representations  and warranties  qualified by such
phrases.

                                   ARTICLE VI

                              AFFIRMATIVE COVENANTS

                  So  long  as  the  Note  shall  remain   unpaid  or  the  Loan
Commitments  remain in  effect,  or any other  amount  is owing by  Borrower  or
Guarantor  to  Administrative  Agent or any Lender  under any Loan  Document  or
otherwise in respect of the Loans,  Borrower shall, and, in the case of Sections
6.01 through 6.03, shall (except as otherwise provided) cause Guarantor to:

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                  Section 6.01  Maintenance of Existence.  Preserve and maintain
its legal existence and good standing in the  jurisdiction  of its  organization
and, in the case of  Borrower  only,  in the State of New York,  and qualify and
remain  qualified as a foreign entity in each other  jurisdiction  in which such
qualification is required.

                  Section 6.02 Maintenance of Records. Keep adequate records and
books of account,  in which complete  entries will be made reflecting all of its
financial transactions, in accordance with GAAP.

                  Section 6.03 Compliance with Laws; Payment of Taxes. Comply in
all material respects with all Laws applicable to it or to any of its properties
or any part  thereof,  except,  in the case of Guarantor,  where  non-compliance
would not be likely to result in a Material  Adverse Change;  such compliance to
include, without limitation, paying before the same become delinquent all taxes,
assessments  and  governmental  charges  imposed  upon it or upon its  property,
except to the extent  they are the subject of a Good Faith  Contest,  or, in the
case of  Guarantor,  failure  to pay would not be likely to result in a Material
Adverse Change.

                  Section 6.04 Right of Inspection.  At any reasonable  time and
from time to time upon reasonable  notice,  permit  Administrative  Agent or any
Lender or any agent or  representative  thereof to examine  and make  copies and
abstracts  from its  records  and books of  account  and visit and  inspect  the
Property and to discuss its affairs,  finances and accounts with the independent
accountants  of Borrower (it being  understood  that (x) the  foregoing,  unless
being undertaken in connection with a Default or Event of Default, shall be done
at the expense of the Lender or Lenders,  as applicable,  and (y) Administrative
Agent and Lenders shall coordinate the exercise of the foregoing rights so as to
minimize the  frequency  thereof and to minimize the  disruption  of  Borrower's
business resulting therefrom);  and cooperate with the Engineering Consultant to
enable it to perform its functions hereunder.

                  Section 6.05 Maintenance of Insurance.  At all times, maintain
and keep in force the insurance required by the Mortgage.

                  Section 6.06 Compliance With Environmental Laws. Comply in all
material respects with all applicable Environmental Laws and timely pay or cause
to be paid all costs and expenses  incurred in connection with such  compliance,
except to the extent the same are the  subject of a Good Faith  Contest;  and at
its sole cost and expense, promptly remove, or cause the removal of, any and all
Hazardous  Materials or the effects  thereof at any time identified as being on,
in,  under or  affecting  the  Property  or the  Improvements  in  violation  of
applicable Environmental Law.

                  Section  6.07  Maintenance  of  Improvements.  Do  all  things
reasonably necessary to maintain, preserve, protect and keep the Improvements in
good repair, working order and condition.

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<PAGE>

                  Section  6.08  Payment  of Costs.  Pay all costs and  expenses
required for the  satisfaction of the conditions of this  Agreement,  including,
without  limitation,  (i) all  document and stamp  taxes,  recording  and filing
expenses and fees and commissions lawfully due to brokers in connection with the
transactions  contemplated hereby and (ii) any taxes,  assessments,  impositions
(public or private),  insurance  premiums,  Liens,  security  interests or other
claims or charges against the Property.

                  Section   6.09    Reporting   and    Miscellaneous    Document
Requirements.  Furnish to Administrative  Agent, which shall promptly furnish to
each Lender:

                  (1) Annual  Financial  Statements.  For each of  Borrower  and
         Guarantor,  as soon as available  and in any event  within  ninety (90)
         days, in the case of Borrower,  and one hundred and five (105) days, in
         the case of  Guarantor,  after the end of each Fiscal  Year,  Financial
         Statements  as of the end of and for such Fiscal  Year,  in  reasonable
         detail and stating in comparative  form the respective  figures for the
         corresponding date and period in the prior Fiscal Year,  certified by a
         Financial Officer of Borrower or Guarantor, as the case may be, and, in
         the case of the Financial  Statements of Borrower and Reckson,  audited
         by Borrower's Accountants;

                  (2) Quarterly Financial  Statements.  For each of Borrower and
         Guarantor, as soon as available and in any event within forty-five (45)
         days  after  the  end of each  calendar  quarter,  unaudited  Financial
         Statements  as of  the  end  of  and  for  such  calendar  quarter,  in
         reasonable  detail  and  stating  in  comparative  form the  respective
         figures for the corresponding  date and period in the prior Fiscal Year
         and certified by a Financial  Officer of Borrower or Guarantor,  as the
         case may be; provided, however, that no such Financial Statements shall
         be required from  Guarantor  for the fourth  quarter of any Fiscal Year
         and the Financial  Statements of Borrower for such fourth quarter shall
         be due ninety (90),  rather than forty-five (45), days after the end of
         such fourth quarter;

                  (3)  Leasing  Reports  and  Property  Information.  As soon as
         available and in any event within forty-five (45) days after the end of
         each  calendar  quarter,  a rent roll,  leasing  report  and  operating
         statement  (on a cash  basis)  in  respect  of the  Property  for  such
         quarter; provided, however, that the operating statement for the fourth
         quarter of each Fiscal Year shall be  delivered  ninety (90) days after
         the end of such quarter;

                  (4) Certificate of No Default and Financial Compliance. Within
         forty-five  (45)  days  after  the end of each of the  first  three (3)
         calendar quarters of each Fiscal Year and within ninety (90) days after
         the end of the fourth  calendar  quarter,  a certificate of a Financial
         Officer  of  Borrower  (i)  stating  that,  to the  best  of his or her
         knowledge,  no  Default  or  Event  of  Default  has  occurred  and  is
         continuing,  or if a Default or Event of Default  has  occurred  and is
         continuing,  specifying  the nature  thereof  and the  action  which is
         proposed to be taken with  respect  thereto and (ii)  stating  that the
         covenants  contained  in  Article  VIII  have  been  complied  with (or
         specifying  those  that  have not been  complied  with)  and

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<PAGE>

         including  computations,   in  reasonable  detail,  demonstrating  such
         compliance (or non-compliance);  and, within forty-five (45) days after
         the end of each  month,  if any payment is required to be made into the
         Cash Flow  Collateral  Account,  a certificate of such officer  setting
         forth a statement  of Net Cash Flow and a  computation  of the required
         payment;

                  (5) Notice of Litigation.  Promptly after the commencement and
         knowledge thereof, notice of all actions, suits, and proceedings before
         any court or arbitrator or any  Governmental  Authority,  affecting (i)
         Borrower or Guarantor  which,  if determined  adversely,  are likely to
         result in a Material  Adverse  Change or (ii) all or any portion of the
         Mortgaged Property;

                  (6)  Notices of  Defaults  and Events of  Default.  As soon as
         possible and in any event within ten (10) days after  Borrower  becomes
         aware of the occurrence of a material  Default or any Event of Default,
         a written  notice setting forth the details of such Default or Event of
         Default  and the action  which is  proposed  to be taken  with  respect
         thereto;

                  (7) Bankruptcy of Major Tenants. Promptly after becoming aware
         of the same, written notice of the bankruptcy,  insolvency or cessation
         of operations of any tenant under a Major Lease;

                  (8) Material Adverse Change.  As soon as is practicable and in
         any event within five (5) days after knowledge of the occurrence of any
         event or circumstance which is likely to result in or has resulted in a
         Material Adverse Change, written notice thereof;

                  (9)  Offices.  Thirty (30) days' prior  written  notice of any
         change in the chief executive  office or principal place of business of
         Borrower or Guarantor;

                  (10) Environmental and Other Notices.  As soon as possible and
         in any event  within  ten (10) days  after  receipt,  copies of (i) all
         Environmental  Notices  received by Borrower  which are not received in
         the  ordinary  course of business and which relate to the Property or a
         situation  which is likely to result in a Material  Adverse  Change and
         (ii) all  reports of any  official  searches  made by any  Governmental
         Authority having  jurisdiction  over the Property or the  Improvements,
         and of any claims of violations thereof;

                  (11) Insurance Coverage. Promptly, such information concerning
         Borrower's  insurance  coverage as Administrative  Agent may reasonably
         request;

                  (12) Proxy  Statements,  Etc.  Promptly  after the  sending or
         filing thereof,  copies of all proxy statements,  financial  statements
         and reports which  Borrower or Guarantor  sends to its equity  holders,
         and  copies of all  regular,  periodic  and  special  reports,  and all
         registration  statements  which  Borrower or  Guarantor  files with the
         Securities and Exchange Commission or any Governmental  Authority which
         may be substituted therefor, or with any national securities exchange;

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<PAGE>

                  (13) Capital  Expenditures.  As soon as  available  and in any
         event within  one-hundred  five (105) days after the end of each Fiscal
         Year,  a schedule of such Fiscal  Year's  capital  expenditures  and no
         later than  thirty (30) days prior to the end of such  Fiscal  Year,  a
         budget  for the  next  Fiscal  Year's  planned  operating  and  capital
         expenditures and revenue for the Property; and

                  (14) General  Information.  Promptly,  such other  information
         respecting  the condition or  operations,  financial or  otherwise,  of
         Borrower,  Guarantor or the Property as  Administrative  Agent may from
         time to time reasonably request.

                  Section  6.10  Continuing   Accuracy  of  Representations  and
Warranties.   Cause  all  of  the   representations   and  warranties   made  to
Administrative  Agent or Lenders  herein and in the other Loan  Documents  to be
continuously true and correct in all material respects.

                  Section  6.11  Premises  Documents  and  Leases.   Deliver  to
Administrative Agent, promptly following the execution thereof, certified copies
of (i) all amendments or supplements to any Premises  Documents or any lease and
(ii) all  leases,  together  with (to the extent  available)  current  financial
statements  of the tenants  thereunder  (and of any  guarantors of such tenants'
obligations),  and  notices  of  assignment  in the form of  EXHIBIT E; keep all
Premises  Documents  and  leases  in full  force  and  effect  (except  upon the
occurrence  of a default  by the third  party  thereto)  and at all times do all
things reasonably necessary to compel performance by the parties to the Premises
Documents or the tenants under such leases,  as the case may be, of all material
obligations,  covenants and  agreements by such parties or tenants,  as the case
may be, to be  performed  thereunder;  not enter into or modify  (other  than de
minimis modifications) any material Premises Documents or any Major Lease or any
guaranty thereof without the prior written consent of the Required Lenders, such
consent not to be unreasonably withheld or delayed; and not enter into any lease
other  than a Major  Lease  unless  such  lease is on market  terms and does not
materially  adversely affect the value of the Property,  and not modify any such
lease unless such lease, as modified, is on market terms and does not materially
adversely affect the value of the Property.

                  Section  6.12  Compliance  with  Covenants,  Restrictions  and
Easements. Comply in all material respects with all restrictions,  covenants and
easements  affecting  the  Property  or the  Improvements  thereon and cause the
satisfaction of all conditions of this Agreement.

                  Section  6.13  Management,  Brokerage  and Service  Contracts.
Deliver to Administrative  Agent, (i) as and when executed,  certified copies of
all   management  and  exclusive   brokerage   contracts  with  respect  to  the
Improvements and (ii) as and when requested by Administrative  Agent,  copies of
all  service   contracts   entered  into  with  respect  to  the   Improvements.
Contemporaneously  with  entering  into each such  contract,  Borrower  shall at
Administrative  Agent's option,  cause the same to be  collaterally  assigned to
Administrative  Agent for the benefit of Lenders as additional  security for the
Loans and/or cause the service  provider  under each such contract to undertake,
inter alia, to continue  performance on Lenders' behalf without  additional cost

                                       45

<PAGE>

in the case of an Event of Default  (such  undertaking  shall also  contain  the
agreement of the service  provider  that such  contract  shall be  terminable by
Lenders on thirty (30) days'  notice  following  an Event of Default;  provided,
however,  Lenders agree to engage a managing agent suitable for projects such as
the Improvements to replace any manager whose contract is so terminated.

                  Section 6.14  Evidence of  Completion  of Work.  No later than
December 31, 2001 (as such date may be extended with the reasonable  approval of
Administrative  Agent, taking into account good construction  practice,  project
economics and whether the  postponed  completion of the Work is likely to have a
material  adverse  effect on the  Property),  deliver  to  Administrative  Agent
evidence  that the Work  (other  than  the  items  identified  on  EXHIBIT  F as
"Isolation Dampers" (Item A1) and "Elevator  Modernization"  (Item A5)) has been
completed,  lien free,  such  evidence to include (i) evidence that the Work has
been completed  substantially  in accordance  with the plans and  specifications
therefor (in the case of the building capital improvement  program) and with the
requirements  of all applicable  Governmental  Authorities  (including,  without
limitation, the issuance of any required certificates of occupancy or amendments
to certificates of occupancy),  (ii) certifications from all tenants of portions
of the  Improvements  having  rights of approval  over all or any portion of the
Work that the Work has been satisfactorily  completed for all purposes under the
leases of such  tenants  and (iii)  with  respect  to the  capital  improvements
portion of the Work and any other  portions  thereof  not  relating  to specific
leases,  a certificate  from the  Engineering  Consultant to the effect that all
such portions of the Work have been  satisfactorily  completed  substantially in
accordance with the plans and specifications therefor.

                  Section 6.15 Balance  Sheet of  Borrower.  Within  thirty (30)
days following the Closing Date,  deliver to  Administrative  Agent,  which will
promptly deliver to each Lender,  an audited balance sheet of Borrower as of the
Closing Date.

                  Section 6.16 Trust Fund.  Receive and hold all  fundings  made
hereunder  and the right to receive  the same as a trust fund for the purpose of
paying  only the "cost of  improvement",  as such  quoted term is defined in the
Lien Law of the State of New York.

                                  ARTICLE VII

                   SPE REPRESENTATIONS AND NEGATIVE COVENANTS

                  Section 7.01 Single Purpose Entity. Borrower hereby represents
and warrants  that each of it and Member is a specially  formed  single  purpose
entity and that neither it nor Member has, and covenants and agrees that so long
as the Note shall remain unpaid,  or the Loan Commitments  remain in effect,  or
any other amount is owing by Borrower or Guarantor  to  Administrative  Agent or
any Lender under any Loan Document or otherwise in respect of the Loans, neither
it nor its Member shall, do any or all of the following:

                                       46

<PAGE>

                  (1) engage in any business or activity other than, in the case
         of Borrower,  the ownership,  operation and maintenance of the Property
         and Improvements and activities  incidental  thereto or, in the case of
         Member, its ownership of an interest in Borrower;

                  (2) acquire or own any material assets other than, in the case
         of Borrower, the Property and Improvements and such incidental personal
         property as may be necessary for the operation  thereof or, in the case
         of Member, its ownership interest in Borrower;

                  (3) merge into or  consolidate  with any  Person or  dissolve,
         terminate  or  liquidate  in whole or in part,  transfer  or  otherwise
         dispose of all or  substantially  all of its assets or change its legal
         structure;

                  (4)  fail  to  preserve  its   existence  as  an  entity  duly
         organized,  validly existing and in good standing under the Laws of the
         jurisdiction of its formation, or amend or modify the provisions of its
         organizational  agreements  in any way which  would be  contrary  to or
         conflict with the agreements made by it in this Section;

                  (5) own any subsidiary or make any investment in any Person;

                  (6) commingle its assets with the assets of any of its members
         or of any other Person;

                  (7) create,  incur or assume any Debt,  secured or  unsecured,
         direct or contingent  (including  guaranteeing any  obligation),  other
         than, in the case of Borrower only, (v)  obligations in connection with
         Borrower LCs; (w) unsecured loans by the direct or indirect constituent
         members of Borrower to Borrower that are expressly  subordinate  to the
         Loans;  (x) the Loans;  (y) the  Subordinate  Loan;  or (z) Debt, in an
         aggregate  amount  not to exceed  $150,000,  which is  incurred  in the
         ordinary  course of its business of owning and  operating the Property,
         provided such Debt is not evidenced by a note and is paid when due;

                  (8) become  insolvent or  generally  fail to pay its debts and
         liabilities from its assets as the same shall become due;

                  (9) fail to maintain  its  records,  books of account and bank
         accounts  separate  and apart from those of its  members  and any other
         Person;

                  (10) enter into any contract or agreement  with any Affiliate,
         except upon commercially reasonable terms and conditions;

                  (11)  partition,  or  seek  to  partition,   the  Property  or
         Improvements,  or seek the  dissolution  or winding  up, in whole or in
         part, of Borrower;

                  (12) fail to correct any known misunderstandings regarding its
         separate identity;

                                       47

<PAGE>

                  (13)  hold  itself  out to be  responsible  for the  debts  or
         obligations of another Person;

                  (14) make any loans or advances to any third party,  including
         (x) any member or principal of Borrower or Member or (y) any Affiliate;

                  (15) fail to file its own tax  returns,  if  required,  unless
         part of the consolidated returns of another Person;

                  (16) agree to, enter into or consummate any transaction  which
         would render  Borrower unable to make the  representation  contained in
         Section 5.11;

                  (17) fail  either to hold  itself out to the public as a legal
         entity  separate and  distinct  from any other Person or to conduct its
         business  solely in its own name in order not (x) to mislead  others as
         to the identity with which such other party is transacting  business or
         (y) to suggest that Borrower or Member is responsible  for the debts or
         obligations of any third party (including any Affiliate);

                  (18)  share any common  logo with or hold  itself out as or be
         designated as a department or division of any other Person;

                  (19) without the unanimous consent of all of its members, file
         or consent to the filing of a  bankruptcy  or  insolvency  petition  or
         otherwise institute insolvency proceedings with respect to itself or to
         any  other  entity  in  which  it has a  direct  or  indirect  legal or
         beneficial ownership interest; or

                  (20) dissolve,  liquidate,  consolidate,  merge or sell all or
         substantially  all of its assets or the  assets of any other  entity in
         which  it has a  direct  or  indirect  legal  or  beneficial  ownership
         interest or engage in any other business activity.

                  Section 7.02  Distributions.  So long as the Note shall remain
unpaid or the Loan Commitments remain in effect, or any other amount is owing by
Borrower  or  Guarantor  to  Administrative  Agent or any Lender  under any Loan
Document or otherwise in respect of the Loans,  Borrower  shall not,  during the
continuance  of any Event of  Default,  suffer or permit  any  distributions  or
payments of any kind to be made to its members.

                  Section 7.03 Interest Rate Hedging.  Borrower shall not suffer
or permit,  as of any date (a  "Reference  Date") during the initial term of the
Loans,  any portion of the Principal  Amount greater than or equal to $5,000,000
not to be covered by  interest  rate cap  agreement(s),  with  counterparty(ies)
reasonably  acceptable to Administrative Agent, in each case for a term expiring
no earlier  than the second  anniversary  of the date hereof (in the case of any
Reference Date prior to such  anniversary) or the initial  Maturity Date (in the
case of any Reference  Date after such second  anniversary)  and providing for a
capped rate of no greater  than 9.25% per annum (the  floating  rate  being,  at
Borrower's  option,  the one (1)-, two (2)- or three (3)-month LIBOR Base Rate),
Borrower's  rights  under  which cap  agreement(s)  shall have been  assigned to
Administrative  Agent pursuant to assignments  substantially  in the form of the
Cap  Assignment  and  which  assignments  shall  have been  consented  to by the
counterparty(ies).

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<PAGE>

                                  ARTICLE VIII

                               FINANCIAL COVENANTS

                  Section 8.01  Financial  Covenants.  So long as the Note shall
remain unpaid, or the Loan Commitments  remain in effect, or any other amount is
owing by Borrower to Administrative  Agent or any Lender under any Loan Document
or otherwise in respect of the Loans, Borrower shall not permit or suffer any or
all of the following:

                  (1)  DSCR.   DSCR  to  be  less  than  1.35  to  1.0  for  any
Determination  Date  occurring  during the second year of the term of the Loans,
and 1.45 to 1.0 for any Determination Date occurring thereafter.

                  (2) Refinance DSCR. Refinance DSCR to be less than 1.10 to 1.0
for any  Determination  Date occurring during the second year of the term of the
Loans, and 1.15 to 1.0 for any Determination Date occurring thereafter.

                  (3) Debt  Yield.  Debt  Yield to be less  than  11.0%  for any
Determination  Date  occurring  during the second year of the term of the Loans,
and 12.0% for any Determination Date occurring thereafter.

                  For purposes of  compliance  with the  covenants  set forth in
this  Section,  if Pro-Forma  Net  Operating  Income is decreased as a result of
non-payment  of rent  under  the  Debevoise  Lease or the  Schulte  Lease,  such
decrease  shall be offset by and to the extent of drawings by Borrower under the
Tenant LCs.

                  Section 8.02 Cash Flow Sweep.

                  (a) If, for any  Determination  Date with respect to which the
financial  covenants set forth in Section 8.01 are to be complied with, Borrower
shall fail to meet any of such covenants,  then, (i) within forty-five (45) days
after the end of the first  calendar  month  immediately  following the calendar
month in which  such  Determination  Date  occurs,  Borrower  shall,  and hereby
covenants to, make a payment to  Administrative  Agent in an amount equal to Net
Cash  Flow  for such  immediately  following  calendar  month  and  (ii)  within
forty-five  (45) days  after the end of each  subsequent  calendar  month  until
Administrative  Agent is required to release sums as provided in  paragraph  (b)
below, Borrower shall, and hereby covenants (subject to paragraph (c) below) to,
make a payment to  Administrative  Agent in an amount equal to Net Cash Flow for
such  subsequent  calendar  month,  irrespective  of whether the requisite DSCR,
Refinance  DSCR and Debt Yield,  as the case may be, were attained as of the end
of the quarter in which such  subsequent  calendar month falls.  Notwithstanding
the foregoing, in the case of monthly payments of Net Cash Flow for any January,
such payments shall be due with the monthly payment for deposit in the Cash Flow
Collateral  Account in respect of

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<PAGE>

February (i.e., on April 14). Said amounts shall be deposited by  Administrative
Agent into  interest-bearing,  "blocked" cash collateral account no. 6005-524103
established with Administrative Agent (the "Cash Flow Collateral Account") to be
held by Administrative Agent for the benefit of Lenders as hereinafter provided.
Borrower hereby assigns the Cash Flow  Collateral  Account and all sums therein,
including interest thereon, to Administrative Agent, for the benefit of Lenders,
as security for the payment and performance of the Obligations and  acknowledges
that Borrower shall have no right to such sums except to the extent specifically
provided for herein.  Borrower further  acknowledges that  Administrative  Agent
shall retain  possession of all documents  evidencing  the Cash Flow  Collateral
Account to perfect its security  interest  therein.  Upon the  occurrence  of an
Event of  Default,  Administrative  Agent  may,  at the  option of the  Required
Lenders,  apply any and all sums in the Cash Flow Collateral  Account (including
interest) to the immediate  reduction of the Principal Amount and/or accrued and
unpaid interest  and/or other sums payable  hereunder or under the Note or other
Loan Documents,  in such order and amounts as the Required  Lenders shall elect.
Administrative  Agent is hereby appointed  Borrower's  attorney-in-fact  for the
purpose of withdrawing any and all sums from the Cash Flow  Collateral  Account.
Borrower agrees to execute such further documents (including security agreements
and UCC-1 financing statements) and do such further acts as Administrative Agent
may  reasonably  request  to  confirm or perfect  the  assignment  and  security
interest provided for in this Section.

                  (b) If, for two (2) consecutive  Determination Dates following
an event giving rise to Borrower's obligation to make payments to Administrative
Agent  for  deposit  into the  Cash  Flow  Collateral  Account  as set  forth in
paragraph  (a) above,  DSCR shall equal or exceed 1.35 to 1.0 or 1.45 to 1.0, as
the case may be,  Refinance  DSCR shall  equal or exceed  1.10 to 1.0 or 1.15 to
1.0, as the case may be, and Debt Yield shall equal or exceed 11.0% or 12.0%, as
the case may be, all as required by Section 8.01,  then, if there shall exist no
Default or Event of Default, on the forty-fifth (45th) day following such second
consecutive  Determination  Date (or the  ninetieth  (90th) day in the case of a
Determination Date falling on December 31),  Administrative  Agent shall release
all  sums  (including  interest),  if any,  then on  deposit  in the  Cash  Flow
Collateral  Account  to  Borrower  and such  sums  shall be  deemed  free of the
assignment  and  security  interest  created  pursuant  to  this  Section,   and
Administrative  Agent  shall  execute  such  further  documents  (including  UCC
termination  statements) to confirm the foregoing as Borrower  shall  reasonably
request; provided,  however, that if the requisite DSCR, Refinance DSCR and Debt
Yield  specified  in  Section  8.01  shall not be  attained  for any  succeeding
quarter,  Borrower  shall again be required to make  payments for deposit in the
Cash Flow  Collateral  Account as provided in paragraph  (a) above and the other
provisions of said paragraph (a) and this paragraph (b) shall be applicable.

                  (c) Notwithstanding the foregoing  provisions of this Section,
if the DSCR,  Refinance  DSCR and/or Debt Yield required by Section 8.01 are not
met,  Borrower  may, in lieu of making the  requisite  payments of Net Cash Flow
provided for above, make, prior to the first payment date of such Net Cash Flow,
a partial prepayment of the Principal Amount in an amount such that the required
DSCR,  Refinance  DSCR  and/or  Debt Yield  would have been met had the  reduced
Principal  Amount  been  the  Principal  Amount  as of the  end of the  relevant
calendar quarter.

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<PAGE>

                  (d)  Notwithstanding  any  provision of this  Agreement or the
other Loan Documents to the contrary, the failure of Borrower to meet any of the
financial  covenants  set forth in Section  8.01  hereof  shall  not,  in and of
itself,  be a Default  or Event of  Default  and  Lenders'  remedy  shall be the
commencement of the Cash Flow Sweep as described in this Section 8.02.

                  (e) If (x) delinquent rents more than one hundred twenty (120)
days past due were excluded from Pro-Forma Net Operating Income for a particular
period of time in accordance  with the definition of such term, (y) but for such
delinquency,  Borrower  would  have  complied  with the  covenants  set forth in
Section  8.01 and (z) such  delinquent  rents are paid in a later period and the
applicable  tenant is paying rent no more than one hundred  twenty (120) days in
arrears under its lease,  then  Pro-Forma  Net Operating  Income for the earlier
period shall be recomputed by adding the formerly  delinquent rent and, provided
there exists no Event of Default, within five (5) Business Days after submission
by Borrower of a revised  certificate  of the sort  required by paragraph (4) of
Section 6.09,  reasonably  satisfactory to Administrative  Agent,  demonstrating
compliance  with the  covenants  contained  in Section  8.01 as of the  relevant
earlier Determination Date,  Administrative Agent shall release to Borrower from
the Cash Flow Collateral  Account an amount equal to the amount of Net Cash Flow
deposited  therein relating to the period from such earlier  Determination  Date
until the next later  Determination Date, if any, as of which Borrower failed to
comply with the  covenants  set forth in Section 8.01. If there is no such later
Determination  Date then all sums in the Cash Flow  Collateral  Account shall be
released to Borrower.

                                   ARTICLE IX

                                EVENTS OF DEFAULT

                  Section 9.01 Events of Default.  Any of the  following  events
shall be an "Event of Default":

                  (1) If Borrower  shall:  fail to pay the principal of any Note
         as and when due;  or fail to pay  interest  accruing on any Note as and
         when due, and such failure to pay shall continue unremedied for two (2)
         Business Days after the due date of such  interest;  or fail to pay any
         fee or any  other  amount  due under  this  Agreement,  any other  Loan
         Document  as and  when  due and  such  failure  to pay  shall  continue
         unremedied  for seven (7) Business Days after notice by  Administrative
         Agent of such failure to pay; or

                  (2) If any representation or warranty made by Borrower in this
         Agreement  or in any other Loan  Document or which is  contained in any
         certificate,  document, opinion, financial or other statement furnished
         at any time under or in connection  with a Loan Document shall prove to
         have been incorrect in any material  respect on or as of the date made;
         or

                                       51

<PAGE>

                  (3) If Borrower shall fail (i) to perform or observe any term,
         covenant  or  agreement  contained  in  Article  VII or  Section  8.02,
         provided  that, in the case of a default  under Section 7.03  resulting
         from  the  making  of  a  Funding  of  the  Debt  Service   Allocation,
         Administrative  Agent shall have given notice to Borrower in accordance
         with Section 2.15 (or shall have otherwise given notice of such failure
         and Borrower  shall fail to cure such failure  within five (5) Business
         Days after  such  notice);  or (ii) to  perform  or  observe  any term,
         covenant  or  agreement   contained  in  this  Agreement   (other  than
         obligations specifically referred to elsewhere in this Section 9.01) or
         any other Loan Document, or any other document executed by Borrower and
         delivered to  Administrative  Agent or Lenders in  connection  with the
         transactions  contemplated  hereby and such  failure  under this clause
         (ii) shall remain  unremedied  for thirty (30)  consecutive  days after
         notice  thereof to  Borrower  (or such  shorter  cure  period as may be
         expressly prescribed in the applicable  document);  provided,  however,
         that if any such  default  under clause (ii) above cannot by its nature
         be cured  within such thirty (30) day, or shorter,  as the case may be,
         grace period and so long as Borrower  shall have  commenced cure within
         such thirty (30) day, or shorter,  as the case may be, grace period and
         shall,  at all  times  thereafter,  diligently  prosecute  the  same to
         completion, Borrower shall have an additional period, not to exceed one
         hundred twenty (120) days, to cure such default; in no event,  however,
         is the foregoing  intended to effect an extension of the Maturity Date;
         or

                  (4) If  Reckson  shall  fail  (i) to  pay  any of the  Reckson
         Indebtedness  upon the  maturity  thereof  (whether  as  scheduled,  by
         acceleration  or  otherwise);  or (ii) to pay,  perform or observe  any
         term,  covenant or condition under any agreement or instrument relating
         to any such Reckson  Indebtedness,  when required to be paid, performed
         or observed,  if the effect of such failure to pay,  perform or observe
         is to  accelerate,  or to permit the  acceleration  of, the maturity of
         such  Reckson  Indebtedness,  or other  circumstances  occur that would
         permit or result in the acceleration of the Reckson Indebtedness (other
         than in cases where  meaningful  discussions  likely to result in (A) a
         waiver  or cure  of the  failure  to pay,  perform  or  observe  or (B)
         otherwise  averting such  acceleration  are in progress between Reckson
         and the obligee(s) of such Reckson  Indebtedness);  provided,  however,
         that the events described in clauses (i) and (ii) above shall no longer
         constitute an Event of Default hereunder following such time as (a) the
         Guaranty of  Completion  has  terminated as provided  therein,  (b) the
         amount of the Work  remaining to be paid or performed is  $2,500,000 or
         less or (c) the only Work  remaining to be paid or performed is, in the
         judgment of the Required Lenders,  adequately  covered by a Borrower LC
         and such  Borrower LC is available to be drawn upon for such  remaining
         Work;

                  (5) If Borrower or Guarantor  shall (i)  generally  not, or be
         unable to, or shall admit in writing its inability to, pay its debts as
         such debts  become due; or (ii) make an  assignment  for the benefit of
         creditors,  petition or apply to any tribunal for the  appointment of a
         custodian,  receiver  or  trustee  for it,  all or any  portion  of the
         Property or a substantial  part of its other assets;  or (iii) commence
         any  proceeding  under  any  bankruptcy,  reorganization,  arrangement,
         readjustment

                                       52

<PAGE>

         of debt,  dissolution or liquidation Law of any  jurisdiction,  whether
         now or  hereafter  in effect;  or (iv) have had  any such  petition  or
         application  filed or any such  proceeding  shall  have been commenced,
         against  it or  all or  any  portion  of  the  Property,  in  which  an
         adjudication or appointment is made or order for relief is entered,  or
         which  petition,  application  or proceeding  remains  undismissed   or
         unstayed  for a period  of  ninety  (90)  days  or more;  or (v) be the
         subject  of any  proceeding  under  which  all  or any  portion  of the
         Property  or all or a  substantial  part  of its  other  assets  may be
         subject to seizure,  forfeiture or  divestiture;  or (vi) by any act or
         omission  indicate its consent  to,  approval of or acquiescence in any
         such  petition,  application  or  proceeding or order for relief or the
         appointment of a  custodian, receiver or trustee for all or any portion
         of the Property  or all or any substantial  part of its other property;
         or (vii)  suffer any such  custodianship,  receivership  or trusteeship
         for  all or any portion of the Property or all or any substantial  part
         of  its other property, to continue undischarged for a period of ninety
         (90) days or more; or

                  (6) If one or  more  judgments,  decrees  or  orders  for  the
         payment of money,  in excess of $1,000,000 in the aggregate in the case
         of Borrower,  $10,000,000  in the  aggregate in the case of Reckson and
         $10,000,000  in the  aggregate  in the case of  Metropolitan,  shall be
         rendered against Borrower, Reckson or Metropolitan, as the case may be,
         and any such  judgments,  decrees or orders shall continue  unsatisfied
         and in effect for a period of sixty (60) consecutive days without being
         vacated, discharged, satisfied or stayed or bonded pending appeal; or

                  (7) If any of the  following  events shall occur or exist with
         respect  to  Borrower  or  any  ERISA  Affiliate:  (i)  any  Prohibited
         Transaction  involving any Plan; (ii) any Reportable Event with respect
         to any Plan;  (iii) the filing under  Section 4041 of ERISA of a notice
         of intent to terminate any Plan or the  termination  of any Plan;  (iv)
         any  event or  circumstance  which  would  constitute  grounds  for the
         termination of, or for the appointment of a trustee to administer,  any
         Plan under  Section 4042 of ERISA,  or the  institution  by the PBGC of
         proceedings for any such termination or appointment  under Section 4042
         of ERISA; or (v) complete or partial  withdrawal  under Section 4201 or
         4204  of  ERISA  from  a  Multiemployer  Plan  or  the  reorganization,
         insolvency,  or termination of any Multiemployer Plan; and in each case
         above, if such event or conditions,  if any, would be likely to subject
         Borrower or any ERISA Affiliate to any tax, penalty, or other liability
         to  a  Plan,   Multiemployer  Plan,  the  PBGC  or  otherwise  (or  any
         combination  thereof)  that  would be likely  to  result in a  Material
         Adverse Change; or

                  (8) If the Mortgage shall at any time and for any reason cease
         to create a valid and  perfected  first  priority Lien on the Mortgaged
         Property  purported  to be  subject  thereto or to be in full force and
         effect;  or shall  be  declared  null  and  void;  or the  validity  or
         enforceability thereof shall be contested by Borrower; or

                                       53

<PAGE>

                  (9) If an "Event of Default"  shall  occur under the  Mortgage
         (as such quoted term is defined therein); or

                  (10) If,  at any  time,  any  part of the  funds to be used by
         Borrower or Guarantor in satisfaction of their  respective  obligations
         under this  Agreement  and/or the other  Loan  Documents,  or any other
         assets of  Borrower  or  Guarantor,  constitute  "plan  assets"  of any
         "employee  benefit  plan"  within the meaning of ERISA or of any "plan"
         within the meaning of Section 4975(e)(1) of the Code, as interpreted by
         the Internal Revenue Service and the U.S. Department of Labor in rules,
         regulations,  releases,  bulletins or as interpreted  under  applicable
         case law.

                  Section 9.02 Remedies. If any Event of Default shall occur and
be continuing, Administrative Agent shall, upon request of the Required Lenders,
(i) declare the outstanding  balance of the Note, all interest thereon,  and all
other amounts  payable under this  Agreement and the other Loan  Documents to be
forthwith due and payable,  whereupon such balance,  all such interest,  and all
such amounts due under this Agreement and under the other Loan  Documents  shall
become and be forthwith due and payable,  without presentment,  demand, protest,
or  further  notice of any kind,  all of which are  hereby  expressly  waived by
Borrower  and/or (ii)  terminate  the  unfunded  Loan  Commitments  and/or (iii)
exercise any remedies provided in any of the Loan Documents or by Law.

                                   ARTICLE X

                  ADMINISTRATIVE AGENT; RELATIONS AMONG LENDERS

                  Section   10.01   Appointment,   Powers  and   Immunities   of
Administrative  Agent.  Each Lender hereby  irrevocably  appoints and authorizes
Administrative  Agent to act as its agent  hereunder  and  under any other  Loan
Document and the  Subordination  Agreement with such powers as are  specifically
delegated to  Administrative  Agent by the terms of this Agreement and any other
Loan Document and the Subordination  Agreement,  together with such other powers
as are reasonably incidental thereto.  Administrative Agent shall have no duties
or  responsibilities  except those expressly set forth in this Agreement and any
other Loan  Document  and the  Subordination  Agreement  or required by Law, and
shall not by reason of this  Agreement  be a fiduciary or trustee for any Lender
except to the extent that Administrative  Agent acts as an agent with respect to
the  receipt  or  payment  of funds  (nor  shall  Administrative  Agent have any
fiduciary  duty to  Borrower  nor shall any Lender  have any  fiduciary  duty to
Borrower  or to any  other  Lender).  No  implied  covenants,  responsibilities,
duties,  obligations  or  liabilities  shall  be read  into  this  Agreement  or
otherwise exist against  Administrative Agent. Neither  Administrative Agent nor
any  of  its  directors,  officers,  employees,  agents,   attorneys-in-fact  or
Affiliates  shall be  responsible  to any Lender for any  recitals,  statements,
representations  or  warranties  made by  Borrower  or any  officer,  partner or
official of Borrower or any other  Person  contained  in this  Agreement  or any
other Loan  Document,  or in any  certificate  or other  document or  instrument
referred to or provided for in, or received by any of them under, this Agreement
or any other Loan

                                       54

<PAGE>

Document,  or for the value,  legality,  validity,  effectiveness,  genuineness,
enforceability  or  sufficiency  of this Agreement or any other Loan Document or
any other document or instrument  referred to or provided for herein or therein,
for the  perfection or priority of any Lien securing the  Obligations or for any
failure by Borrower or Guarantor to perform any of its obligations  hereunder or
thereunder.  Administrative  Agent may employ agents and  attorneys-in-fact  and
shall not be responsible, except as to money or securities received by it or its
authorized  agents,  for the  negligence  or  misconduct  of any such  agents or
attorneys-in-fact  selected by it with reasonable care.  Neither  Administrative
Agent nor any of its directors,  officers, employees, agents,  attorneys-in-fact
or Affiliates  shall be liable or responsible for any action taken or omitted to
be taken by it or them  hereunder  or  under  any  other  Loan  Document  or the
Subordination  Agreement or in connection herewith or therewith,  except for its
or their own gross negligence or willful misconduct.

                  Section 10.02 Reliance by Administrative Agent. Administrative
Agent  shall  be  entitled  to rely  upon  any  certification,  notice  or other
communication  (including  any thereof by telephone,  telex,  telegram or cable)
believed  by it to be genuine  and correct and to have been signed or sent by or
on behalf of the proper  Person or Persons,  and upon advice and  statements  of
legal  counsel,   independent   accountants   and  other  experts   selected  by
Administrative Agent. Administrative Agent may deem and treat each Lender as the
holder of the Loan made by it for all purposes  hereof and shall not be required
to deal  with  any  Person  who has  acquired  a  Participation  in any  Loan or
Participation  from a Lender.  As to any matters not  expressly  provided for by
this  Agreement  or any other  Loan  Document  or the  Subordination  Agreement,
Administrative  Agent  shall in all cases be fully  protected  in acting,  or in
refraining from acting,  hereunder in accordance with instructions signed by the
Required  Lenders,  and such instructions of the Required Lenders and any action
taken or failure to act pursuant thereto shall be binding on all Lenders and any
other holder of all or any portion of any Loan or Participation.

                  Section  10.03  Defaults.  Administrative  Agent  shall not be
deemed to have  knowledge  of the  occurrence  of a Default  or Event of Default
unless  Administrative Agent has actual knowledge thereof or has received notice
from a Lender or  Borrower  specifying  such  Default  or Event of  Default  and
stating  that  such  notice  is  a  "Notice  of  Default."  In  the  event  that
Administrative  Agent has such actual knowledge or receives such a notice of the
occurrence  of a Default or Event of  Default,  Administrative  Agent shall give
prompt notice  thereof to Lenders.  Administrative  Agent shall promptly send to
each  Lender  a  copy  of any  notice  of  Default  or  Event  of  Default  that
Administrative  Agent  sends to  Borrower or  Guarantor.  Administrative  Agent,
following  consultation with Lenders, shall (subject to Section 10.07) take such
action  with  respect to such  Default or Event of Default  which is  continuing
(including  actions  with  respect  to  the  disposition  or  operation  of  the
collateral  for the  Loans)  as  shall  be  directed  by the  Required  Lenders;
provided,  however,  that,  unless  and until  Administrative  Agent  shall have
received such directions,  Administrative Agent may take such action, or refrain
from taking such action,  with respect to such Default or Event of Default as it
shall  deem  advisable  in the best  interest  of  Lenders.  In no  event  shall
Administrative  Agent be required to take any such action which it determines to
be contrary to the Loan

                                       55

<PAGE>

Documents or the Subordination Agreement or to Law. Each Lender acknowledges and
agrees that no individual  Lender may separately  enforce or exercise any of the
provisions of any of the Loan  Documents  (including,  without  limitation,  the
Note) or the Subordination Agreement other than through Administrative Agent.

                  Section 10.04 Rights of Administrative Agent as a Lender. With
respect to its Loan  Commitment  (if any) and the Loan (if any)  provided by it,
Administrative  Agent in its capacity as a Lender  hereunder shall have the same
rights and powers  hereunder  as any other  Lender and may  exercise the same as
though it were not acting as  Administrative  Agent,  and the term  "Lender"  or
"Lenders"  shall  include  Administrative  Agent in its  capacity  as a  Lender.
Administrative  Agent and its Affiliates may (without having to account therefor
to any Lender) accept  deposits  from,  lend money to (on a secured or unsecured
basis),  and generally  engage in any kind of banking,  trust or other  business
with  Borrower  (and any  Affiliates  of  Borrower)  as if it were not acting as
Administrative Agent.

                  Section 10.05 Sharing of Costs by Lenders;  Indemnification of
Administrative  Agent. Each Lender agrees to pay its ratable share, based on the
respective  outstanding  principal  balances under its Loan and the Loans of the
other Lenders,  of any expenses incurred (and not paid or reimbursed by Borrower
after  demand for  payment is made by  Administrative  Agent) by or on behalf of
Lenders in connection with any Default or Event of Default,  including,  without
limitation,  costs of  enforcement  of the Loan  Documents or the  Subordination
Agreement  and any advances to pay taxes or  insurance  premiums or otherwise to
preserve  the Lien of the  Mortgage  or to  preserve  or protect  the  Mortgaged
Property or any part  thereof.  In the event a Lender  fails to pay its share of
expenses as  aforesaid,  and all or a portion of such  unpaid  amount is paid by
Administrative  Agent  and/or  one  or  more  of the  other  Lenders,  then  the
defaulting  Lender  shall  reimburse   Administrative  Agent  and/or  the  other
Lender(s)  for the portion of such unpaid amount paid by it or them, as the case
may be, together with interest thereon at the Base Rate from the date of payment
by  Administrative  Agent and/or the other Lender(s).  In addition,  each Lender
agrees to indemnify  Administrative  Agent (to the extent not  reimbursed  under
Section 12.04 or under other  applicable  provisions of any Loan  Document,  but
without  limiting the  obligations of Borrower under Section 12.04 or such other
provisions),  for its  ratable  share,  based  upon  the  outstanding  principal
balances  under  its Loan and the  Loans of the  other  Lenders,  of any and all
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  Administrative  Agent in any way
relating to or arising  out of this  Agreement,  any other Loan  Document or the
Subordination  Agreement or any other  documents  contemplated by or referred to
herein or the transactions  contemplated hereby or thereby  (including,  without
limitation,  the costs and  expenses  which  Borrower is  obligated to pay under
Section  12.04 or under  any  other  applicable  provisions  of any  other  Loan
Document)  or the  enforcement  of any of the terms  hereof or thereof or of any
such other documents or instruments;  provided, however, that no Lender shall be
liable  for (i) any of the  foregoing  to the  extent  they arise from the gross
negligence or willful misconduct of the party to be indemnified or (ii) any loss
of principal or interest with respect to Administrative Agent's Loan, if any.

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<PAGE>

                  Section 10.06  Non-Reliance on Administrative  Agent and Other
Lenders.  Each Lender agrees that it has,  independently and without reliance on
Administrative  Agent or any  other  Lender,  and  based on such  documents  and
information  as it  has  deemed  appropriate,  made  its  own  analysis  of  the
collateral  for the Loans and of the credit of Borrower and  Guarantor,  and its
own decision to enter into this  Agreement and that it will,  independently  and
without  reliance upon  Administrative  Agent or any other Lender,  and based on
such  documents  and  information  as it shall  deem  appropriate  at the  time,
continue to make its own analysis and  decisions in taking or not taking  action
under this Agreement or any other Loan Document or the Subordination  Agreement.
Except for  notices,  reports  and other  documents  and  information  expressly
required  to  be  furnished  to  Lenders  by  Administrative   Agent  hereunder,
Administrative  Agent shall not have any duty or  responsibility  to provide any
Lender with any credit or other  information  concerning the affairs,  financial
condition or business of Borrower or Guarantor  (or any Affiliate of Borrower or
Guarantor) which may come into the possession of Administrative  Agent or any of
its  Affiliates.  Administrative  Agent  shall  not be  required  to  file  this
Agreement,  any other Loan  Document or any document or  instrument  referred to
herein or therein,  for record or give notice of this Agreement,  any other Loan
Document or any document or instrument referred to herein or therein, to anyone.

                  Section 10.07 Failure of  Administrative  Agent to Act. Except
for action expressly required of Administrative Agent hereunder,  Administrative
Agent  shall in all cases be fully  justified  in  failing  or  refusing  to act
hereunder  unless it shall have received further  assurances  (which may include
cash  collateral)  of the  indemnification  obligations of Lenders under Section
10.05 in respect of any and all  liability  and expense which may be incurred by
it by reason of taking or continuing  to take any such action.  If any indemnity
furnished  to  Administrative  Agent for any  purpose  shall,  in the opinion of
Administrative  Agent, be insufficient or become impaired,  Administrative Agent
may call for an  additional  indemnity and cease,  or not  commence,  the action
indemnified against until such additional indemnity is furnished.

                  Section 10.08 Resignation or Removal of Administrative  Agent.
Administrative  Agent hereby  agrees not to  unilaterally  resign  except in the
event it becomes an  Affected  Lender  and is  removed or  replaced  as a Lender
pursuant  to  Section  3.07,  in which  event it shall have the right to resign;
provided,   however,  that  Administrative  Agent  may  resign  if  a  successor
Administrative  Agent satisfactory to the Required Lenders and (so long as there
exists no Event of Default) reasonably satisfactory to Borrower is appointed and
accepts such appointment.  Administrative  Agent may be removed at any time with
cause by the Required  Lenders,  provided  that  Borrower and the other  Lenders
shall be promptly  notified  thereof.  Upon any such  resignation  or removal of
Administrative  Agent,  the Required  Lenders  shall have the right to appoint a
successor  Administrative Agent which successor Administrative Agent, so long as
it is reasonably  acceptable to the Required Lenders,  shall be that Lender then
having the greatest Loan Commitment.  If no successor Administrative Agent shall
have been so  appointed  by the Required  Lenders and shall have  accepted  such
appointment  within twenty (20) days after the Required  Lenders' removal of the
retiring  Administrative  Agent, then the retiring  Administrative Agent may, on
behalf of Lenders,

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appoint a successor  Administrative  Agent,  which shall be one of Lenders.  The
Required Lenders or the retiring Administrative Agent, as the case may be, shall
upon the  appointment  of a successor  Administrative  Agent  promptly so notify
Borrower  and the other  Lenders.  Upon the  acceptance  of any  appointment  as
Administrative  Agent  hereunder  by  a  successor  Administrative  Agent,  such
successor Administrative Agent shall thereupon succeed to and become vested with
all the rights,  powers,  privileges  and duties of the retiring  Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties
and obligations  hereunder.  After any retiring  Administrative  Agent's removal
hereunder  as  Administrative  Agent,  the  provisions  of this  Article X shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it  while  it was  acting  as  Administrative  Agent.  The  periodic
administration  fee paid to the  retiring  Administrative  Agent shall be deemed
earned by such  retiring  Administrative  Agent only to the extent of the actual
days elapsed in the period to which such  administration  fee relates,  and upon
appointment of a successor  Administrative  Agent,  the retiring  Administrative
Agent shall pay to such successor a pro-rata portion of such  administration fee
based upon the number of days  remaining  in such  period.  Notwithstanding  the
foregoing,  Borrower  shall  incur no cost or  expense  in  connection  with the
removal and/or substitution of an Administrative Agent.

                  Section   10.09   Amendments   Concerning   Agency   Function.
Notwithstanding anything to the contrary contained herein,  Administrative Agent
shall not be bound by any waiver,  amendment,  supplement or modification hereof
or of any other Loan Document or the  Subordination  Agreement which affects its
duties,  rights,  and/or functions  hereunder or thereunder unless it shall have
given its prior written consent thereto.

                  Section    10.10    Liability   of    Administrative    Agent.
Administrative  Agent  shall not have any  liabilities  or  responsibilities  to
Borrower  on account of the  failure  of any Lender to perform  its  obligations
hereunder  or to any Lender on account of the failure of Borrower to perform its
obligations hereunder or under any other Loan Document.

                  Section 10.11 Transfer of Agency Function. Without the consent
of Borrower or any Lender,  Administrative Agent may at any time or from time to
time  transfer its  functions as  Administrative  Agent  hereunder to any of its
offices  wherever  located in the United  States,  provided that  Administrative
Agent shall promptly notify Borrower and Lenders thereof.

                  Section 10.12 Intentionally Omitted.

                  Section 10.13  Withholding  Taxes. Each Lender represents that
it is entitled to receive any  payments to be made to it  hereunder  without the
withholding  of any tax and will  furnish to  Administrative  Agent such  forms,
certifications,  statements  and other  documents  as  Administrative  Agent may
request  from  time  to  time to  evidence  such  Lender's  exemption  from  the
withholding of any tax imposed by any  jurisdiction or to enable  Administrative
Agent or Borrower to comply with any applicable Laws relating  thereto.  Without
limiting the effect of the foregoing,  if any Lender is not created or

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organized under the Laws of the United States or any state thereof,  such Lender
will furnish to Administrative Agent a U.S. Internal Revenue Service Form W-8ECI
in  respect  of  all  payments  to  be  made  to  such  Lender  by  Borrower  or
Administrative  Agent under this  Agreement or any other Loan Document or a U.S.
Internal  Revenue  Service  Form  W-8BEN  establishing  such  Lender's  complete
exemption from United States  withholding  tax in respect of payments to be made
to such Lender by Borrower or  Administrative  Agent under this Agreement or any
other  Loan  Document,  or  such  other  forms,  certifications,  statements  or
documents,  duly  executed  and  completed  by such  Lender as  evidence of such
Lender's  exemption  from the  withholding  of U.S.  tax with  respect  thereto.
Administrative  Agent shall not be obligated  to make any payments  hereunder to
such  Lender in  respect  of any Loan or  Participation  or such  Lender's  Loan
Commitment or obligation to purchase Participations until such Lender shall have
furnished to Administrative Agent the requested form,  certification,  statement
or document.

                  Section  10.14  Pro  Rata  Treatment.  Except  to  the  extent
otherwise  provided,  fundings of proceeds of the Loans shall be made by Lenders
ratably according to the amounts of their respective Loan Commitments.

                  Section 10.15 Sharing of Payments Among  Lenders.  If a Lender
shall  obtain  payment of any  principal  of or  interest on any Loan made by it
through the exercise of any right of setoff, banker's lien, counterclaim,  or by
any other means  (including  direct  payment),  and such payment results in such
Lender  receiving a greater payment than it would have been entitled to had such
payment been paid directly to Administrative  Agent for disbursement to Lenders,
then such  Lender  shall  promptly  purchase  for cash  from the  other  Lenders
Participations in the Loans made by the other Lenders in such amounts,  and make
such other  adjustments  from time to time as shall be equitable to the end that
all Lenders  shall  share  ratably  the  benefit of such  payment.  To such end,
Lenders shall make  appropriate  adjustments  among themselves (by the resale of
Participations sold or otherwise) if such payment is rescinded or must otherwise
be restored.

                  Section 10.16  Possession of Documents.  Administrative  Agent
shall hold all the Loan  Documents and related  documents in its  possession and
maintain  separate records and accounts with respect  thereto,  and shall permit
Lenders and their representatives access at all reasonable times to inspect such
Loan Documents, related documents, records and accounts.

                  Section 10.17 Minimum Commitment by Merrill Lynch.  Subsequent
to the Closing Date,  Merrill Lynch hereby agrees to maintain a Loan  Commitment
in an amount no less than  $20,000,000,  and  further  agrees to hold and not to
participate  or assign any of such amount other than an  assignment to a Federal
Reserve Bank or to the Parent or a majority-owned subsidiary of Merrill Lynch.

                  Section 10.18 Effect of a Lender's  Failure to Make a Funding.
In the event any Lender  fails for any reason to fund the portion it is required
to fund of any  funding  of Loan  proceeds  by 3:00 p.m.  (New York time) on the
second Business Day after the date  established by  Administrative  Agent as the
date such funding is to be made, such Lender shall be a "Delinquent  Lender" for
all purposes  hereunder until and unless such delinquency is cured in accordance
with  the  terms of and by the  time  permitted  under  Section  10.19,  and the
following provisions shall apply:

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                  (1)  Administrative  Agent shall  notify  (such  notice  being
         referred to as the  "Delinquency  Notice")  each Lender and Borrower of
         any Lender's failure to fund. Each Non-Delinquent Lender shall have the
         right,  but in no event or under any  circumstance  the obligation,  to
         fund such Delinquent  Lender's portion of such funding,  provided that,
         within  ten  (10)  days of the  date  of the  Delinquency  Notice  (the
         "Election Period"),  such  Non-Delinquent  Lender or Lenders (each such
         Lender,  an  "Electing  Lender")  irrevocably  commit(s)  by  notice in
         writing (an  "Election  Notice")  to  Administrative  Agent,  the other
         Lenders and  Borrower to fund the  Delinquent  Lender's  portion of the
         funding  that  is the  subject  of the  delinquency  (the  "Delinquency
         Amount").  If  Administrative  Agent  receives  more than one  Election
         Notice within the Election  Period,  then the Electing  Lenders sending
         such notices shall be deemed to have  committed to fund ratable  shares
         of the  Delinquency  Amount based upon the amounts of their  respective
         Loan  Commitments.  If there are one or more  Electing  Lenders and the
         Delinquent  Lender fails to cure during the Election Period as provided
         in Section 10.19, then upon the expiration of the Election Period, each
         Electing  Lender's Loan Commitment shall be automatically  increased by
         the Delinquency  Amount (if there is only one Electing  Lender) or such
         Electing  Lender's  ratable  share,  determined  as  aforesaid,  of the
         Delinquency Amount (if there are two (2) or more Electing Lenders), and
         the Delinquent  Lender's Loan Commitment shall automatically be reduced
         by the Delinquency Amount.  Administrative Agent shall thereupon notify
         Borrower  and  each  Lender  of (i) the  adjusted  amounts  of the Loan
         Commitments and (ii) the date the Delinquency  Amount is to be remitted
         by the Electing Lenders to Administrative Agent (which date shall be no
         sooner than three (3) Business Days after such notice).  Administrative
         Agent shall fund to Borrower the  Delinquency  Amount no later than one
         (1) Business Day after  Administrative Agent receives the same from the
         Electing Lender(s).

                  (2) Borrower,  Administrative  Agent and Lenders shall execute
         such  modifications  to the Loan Documents as shall,  in the reasonable
         judgment  of  Administrative   Agent,  be  necessary  or  desirable  in
         connection  with the  adjustment of the amounts of Loan  Commitments in
         accordance with the foregoing provisions of this Section.

                  (3) In the event  that no Lender  elects to commit to fund the
         Delinquency  Amount within the Election Period as provided in paragraph
         (1) of this Section, Administrative Agent shall, upon the expiration of
         the Election Period, so notify Borrower and each Lender.

                  (4) Subject to a Delinquent Lender's right to cure as provided
         in Section  10.19,  but  notwithstanding  anything else to the contrary
         contained in this Agreement,  the Delinquent  Lender's interest in, and
         any  and  all  amounts  due to a

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         Delinquent  Lender  under,  the  Loan  Documents  (including,   without
         limitation,  all  principal,  interest,  fees  and  expenses)  shall be
         subordinate  in  lien  priority  and to the  repayment  of all  amounts
         (including, without limitation,  interest) then or thereafter due or to
         become  due to the  Non-Delinquent  Lenders  under  the Loan  Documents
         (including future fundings), and the Delinquent Lender thereafter shall
         have no right to participate in any discussions  among and/or decisions
         by Lenders  hereunder  and/or under the other Loan Documents.  Further,
         subject to Section 10.19,  any Delinquent  Lender shall be bound by any
         amendment  to, or waiver of, any  provision  of, or any action taken or
         omitted to be taken by Administrative  Agent and/or the  Non-Delinquent
         Lenders  under,  any  Loan  Document  which is made  subsequent  to the
         Delinquent Lender's becoming a Delinquent Lender.

                  (5) If a Delinquent  Lender's  obligations with respect to the
         Delinquency  Amount are assumed by one or more Electing Lenders,  then,
         notwithstanding  anything to the contrary  contained in this  Agreement
         (including  Sections 2.01 or 10.14),  subsequent  fundings of the Loans
         shall be made by  Lenders  in  proportion  to the  remaining  available
         amounts of their respective Loan Commitments.

                  Section 10.19 Cure by Delinquent  Lender. A Delinquent  Lender
may cure a delinquency  arising out of its failure to fund its required  portion
of any funding if, within the Election Period, it remits to Administrative Agent
its required portion of such funding, in which event  Administrative Agent shall
so notify Borrower and the Non-Delinquent  Lenders of its receipt of such funds.
Administrative  Agent shall,  within one (1) Business Day of its receipt thereof
from the Delinquent  Lender,  fund the  Delinquency  Amount to Borrower.  In the
event any Delinquent  Lender cures a delinquency  prior to the expiration of the
Election  Period (or  thereafter  with the consent of all of the  Non-Delinquent
Lenders),  such Delinquent Lender nonetheless shall be bound by any amendment to
or waiver of any  provision  of, or any  action  taken or omitted to be taken by
Administrative Agent and/or the Non-Delinquent  Lenders under, any Loan Document
which is made subsequent to that Lender's becoming a Delinquent Lender and prior
to its curing the  delinquency  as provided in this Section;  provided that such
amendment or waiver of action was taken in  accordance  with the  provisions  of
this Agreement.  A Delinquent  Lender shall have absolutely no right to cure any
delinquency   after  the   expiration   of  the  Election   Period   unless  all
Non-Delinquent Lenders, in their sole discretion, elect to permit such cure.

                  Section 10.20 Delinquent Lender Not Excused. Nothing contained
in  Sections  10.18 or 10.19  shall  release  or in any way  limit a  Delinquent
Lender's  obligations as a Lender  hereunder  and/or under any other of the Loan
Documents.  Further,  a Delinquent  Lender  shall  indemnify  and hold  harmless
Administrative  Agent and each of the  Non-Delinquent  Lenders  from any  claim,
loss,  or costs  incurred  by  Administrative  Agent  and/or the  Non-Delinquent
Lenders  as a  result  of a  Delinquent  Lender's  failure  to  comply  with the
requirements  of this  Agreement,  including,  without  limitation,  any and all
additional losses,  damages, costs and expenses (including,  without limitation,
attorneys' fees) incurred by Administrative  Agent and any Lender as a result

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of and/or in connection with (i) a Non-Delinquent Lender's acting as an Electing
Lender,  (ii) any enforcement  action brought by Administrative  Agent against a
Delinquent  Lender and (iii) any action  brought  against  Administrative  Agent
and/or Lenders. The indemnification provided above shall survive any termination
of this Agreement.

                  Section 10.21 Notices Regarding Delinquent Lender.  Notices by
Administrative  Agent or Lenders  pursuant to Sections  10.18 or 10.19 may be by
telephone or by facsimile.

                                   ARTICLE XI

                              NATURE OF OBLIGATIONS

                  Section 11.01 Absolute and Unconditional Obligations. Borrower
acknowledges  and  agrees  that  its  obligations  and  liabilities  under  this
Agreement and under the other Loan Documents shall be absolute and unconditional
irrespective  of (i)  any  lack  of  validity  or  enforceability  of any of the
Obligations,  any Loan Documents or any agreement or instrument relating thereto
executed by Borrower and/or  Guarantor,  (ii) any change in the time,  manner or
place of  payment  of, or in any other  term in  respect  of,  all or any of the
Obligations,  or any other  amendment  or waiver of or consent to any  departure
from any Loan  Documents  or any other  documents  or  instruments  executed  in
connection  with or related to the  Obligations or (iii) any exchange or release
of any  collateral,  if  any,  or of any  other  Person  from  all or any of the
Obligations.

                  The  Obligations  shall not be conditioned or contingent  upon
the pursuit by any Lender or any other Person at any time of any right or remedy
against Borrower or any other Person which may be or become liable in respect of
all or any part of the  Obligations  or against  any  collateral  or security or
guarantee therefor or right of setoff with respect thereto.

                  Section 11.02  Non-Recourse.  Notwithstanding  anything to the
contrary  contained  herein,  in any of the other Loan Documents (other than the
Guaranty  of   Completion,   the  Guaranty  and  Indemnity   Agreement  and  the
Environmental Indemnity), or in any other instruments,  certificates,  documents
or agreements executed in connection with the Loans (all of the foregoing, other
than the Guaranty of  Completion,  the Guaranty and Indemnity  Agreement and the
Environmental Indemnity, for purposes of this Section,  hereinafter referred to,
individually and collectively,  as the "Relevant Documents"),  no recourse under
or upon any of the  Obligations  shall  be had  against  Borrower  or any of its
constituent  members (said  constituent  members,  for purposes of this Section,
hereinafter  referred to as the "Borrower  Members") except to the extent of the
Mortgaged  Property  and/or any other  security now or  hereafter  given for the
Loans, and each Lender  expressly  waives and releases,  on behalf of itself and
its successors and assigns,  all right to assert any liability  whatsoever under
or with respect to the Relevant  Documents  against,  or to satisfy any claim or
obligation arising thereunder  against,  Borrower or any of the Borrower Members
or out of any other  assets of Borrower or of the  Borrower  Members,  provided,
however, that nothing in this Section

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shall be  deemed  to (i)  constitute  a waiver of any  obligation  evidenced  or
secured by, or  contained  in, the  Relevant  Documents or affect in any way the
validity or  enforceability of the Relevant  Documents,  (ii) limit the right of
Administrative  Agent and/or  Lenders to proceed  against or realize upon all or
part of the Mortgaged  Property or any other  collateral now or hereafter  given
for the Loans or to name  Borrower (or, to the extent that the same are required
by  applicable  Law or are  determined  by a court to be  necessary  parties  in
connection with an action or suit against Borrower, all or part of the Mortgaged
Property or any other  collateral now or hereafter  given for the Loans,  any of
the Borrower  Members) as a party  defendant  in, and to enforce  against all or
part of the Mortgaged  Property or any other  collateral now or hereafter  given
for the Loans any judgment obtained by Administrative  Agent and/or Lenders with
respect  to,  any  action or suit  under the  Relevant  Documents  so long as no
judgment  shall be taken  (except to the extent taking a judgment is required by
applicable   Law  or   determined  by  a  court  to  be  necessary  to  preserve
Administrative  Agent's  and/or  Lenders'  rights  against  all or  part  of the
Mortgaged  Property or any other collateral now or hereafter given for the Loans
or Borrower,  but not  otherwise) or shall be enforced  against  Borrower or the
Borrower  Members  or their  assets,  (iii)  affect in any way the  validity  or
enforceability  of the  Guaranty  of  Completion,  the  Guaranty  and  Indemnity
Agreement  or the  Environmental  Indemnity  or any other  guaranty or indemnity
given to  Administrative  Agent or Lenders in connection  with the Loans or (iv)
constitute  a waiver by  Administrative  Agent or any  Lender  of any  rights to
reimbursement for losses, claims,  liabilities,  costs or expenses, or any other
remedy at law or equity against  Borrower,  the Borrower Members or any of their
respective  Affiliates by reason of (A)  fraudulent  actions or  omissions,  (B)
intentional    and   material    misrepresentations,    (C)    misappropriation,
misapplication  or conversion of any insurance  proceeds,  condemnation  awards,
tenant security  deposits or proceeds of the Tenant LCs, or of any rent or other
funds in  respect  of the  Mortgaged  Property  or any other  collateral  now or
hereafter  given  for the  Loans,  (D)  Liens  voluntarily  placed on all or any
portion of the Mortgaged Property or other collateral now or hereafter given for
the Loans,  other than those  expressly  permitted  by the Loan  Documents,  (E)
physical waste of the Property or Improvements  (for example,  the deliberate or
voluntary  removal,  disposal,  destruction  or  injury  to all  or any  portion
thereof)  or (F)  unless  Borrower  is acting in good  faith,  the  impeding  of
Lenders' or Administrative Agent's exercise of remedies under the Loan Documents
or otherwise in connection with the Loans.

                                  ARTICLE XII

                                  MISCELLANEOUS

                  Section 12.01 Binding Effect of Request for Funding.  Borrower
agrees  that,  by its  acceptance  of any funding of proceeds of the Loans under
this  Agreement,  it shall be bound in all  respects  by the request for funding
submitted on its behalf in connection  therewith  with the same force and effect
as if Borrower  had itself  executed and  submitted  the request for funding and
whether or not the  request  for  funding is  executed  and/or  submitted  by an
authorized person.

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                  Section 12.02 Amendments and Waivers. No amendment or material
waiver of any  provision  of this  Agreement  or any other Loan  Document or the
Subordination  Agreement  nor consent to any  material  departure by Borrower or
Guarantor  therefrom shall in any event be effective unless the same shall be in
writing  and signed by the  Required  Lenders  and,  solely for  purposes of its
acknowledgment  thereof,  Administrative  Agent, and then such waiver or consent
shall be effective  only in the specific  instance and for the specific  purpose
for which given; provided,  however, that no amendment, waiver or consent shall,
unless in writing and signed by all Lenders do any of the following:  (i) reduce
the  principal  of, or interest  on, the Note or any fees due  hereunder  or any
other amount due hereunder or under any other Loan  Document;  (ii) postpone any
date (including, without limitation, the Maturity Date) fixed for any payment of
principal  of, or interest  on, the Note or any fees due  hereunder or under any
other Loan Document  (other than as provided in Section 2.16);  (iii) change the
definition of Required  Lenders;  (iv) amend this Section or any other provision
requiring the consent of all Lenders;  (v) waive any default under paragraph (5)
of Section 9.01; (vi) release,  in whole or in part, any Guarantor other than in
accordance  with the Loan Documents;  (vii) release any material  portion of the
Mortgaged  Property or of any other  collateral  now or hereafter  given for the
Loans other than in accordance with the Loan  Documents;  or (viii) increase the
Total Loan  Commitment.  Any  funding of  proceeds of the Loans made prior to or
without the fulfillment by Borrower of all of the conditions  precedent thereto,
whether or not known to Administrative Agent and Lenders, shall not constitute a
waiver of the  requirement  that all  conditions,  including  the  non-performed
conditions,  shall be required with respect to all future  fundings,  if any. No
failure on the part of  Administrative  Agent or any Lender to exercise,  and no
delay in exercising,  any right  hereunder  shall operate as a waiver thereof or
preclude  any other or further  exercise  thereof or the  exercise  of any other
right.  The remedies  herein  provided are  cumulative  and not exclusive of any
remedies provided by Law.

                  All  communications  from  Administrative   Agent  to  Lenders
requesting Lenders' determination, consent or approval (x) shall be given in the
form of a written notice to each Lender,  (y) shall be accompanied by or include
a  description  or copy of the matter or thing as to which  such  determination,
approval,   consent  or   disapproval   is  requested   and  (z)  shall  include
Administrative  Agent's recommended course of action or determination in respect
thereof.  If a Lender does not respond to such request  within five (5) Business
Days after receipt of Administrative  Agent's request, then Administrative Agent
may send a second request to such Lender.  Unless such Lender shall give written
notice  to  Administrative  Agent  that  it  objects  to the  recommendation  or
determination of  Administrative  Agent (together with a written  explanation of
the reasons  behind such  objection)  within five (5) Business  Days (or two (2)
Business Days, in the case of any decision to accelerate or stop acceleration of
the Loans) after receipt of such second request,  such Lender shall be deemed to
have  approved  or  consented  to  Administrative   Agent's   recommendation  or
determination.

                  Section   12.03  Usury.   Anything   herein  to  the  contrary
notwithstanding,  the  obligations of Borrower under this Agreement and the Note
shall be  subject to the  limitation  that  payments  of  interest  shall not be
required to the extent that receipt  thereof  would be contrary to provisions of
Law  applicable to a Lender  limiting  rates of interest which may be charged or
collected by such Lender.

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                  Section 12.04 Expenses;  Indemnification.  Borrower  covenants
and  agrees  to  pay  all  costs,  expenses  and  charges  (including,   without
limitation, all reasonable fees and expenses of counsel,  engineers,  appraisers
and consultants)  incurred by  Administrative  Agent or any Lender in connection
with (i) the preparation for and consummation of the  transactions  contemplated
hereby or for the performance  hereof and of the other Loan  Documents,  and for
any services  which may be required in addition to those normally and reasonably
contemplated  hereby  and (ii) the  enforcement  hereof  or of any or all of the
other Loan Documents;  provided, however, that Borrower shall not be responsible
for (x) the fees and expenses of legal counsel for any Lender other than Merrill
Lynch incurred in connection  with said  counsel's  review of this Agreement and
the other Loan Documents prior to execution and (y) costs,  expenses and charges
incurred  by   Administrative   Agent  and  Lenders  in   connection   with  the
administration  or  syndication of the Loan (other than the  administration  fee
required  by Section  2.07(a),  the fees  required  by the  Supplemental  Letter
agreement and the reasonable fees and expenses of Administrative Agent's counsel
and the  Engineering  Consultant).  In connection  with the  foregoing,  Lenders
agree,  to the extent  practicable,  to appoint a single  counsel,  selected  by
Administrative  Agent,  to act on behalf of all Lenders in  connection  with the
enforcement of the Loan Documents.  If Borrower fails to pay promptly any costs,
charges or expense  required to be paid by it as aforesaid,  and  Administrative
Agent or any  Lender  pays such  costs,  charges  or  expenses,  Borrower  shall
reimburse Administrative Agent or such Lender, as appropriate, on demand for the
amounts so paid,  together  with  interest  thereon at the Default Rate for Base
Rate Loans from the date of demand. Borrower agrees to indemnify  Administrative
Agent and each Lender and their respective  directors,  officers,  employees and
agents  from,  and  hold  each of them  harmless  against,  any and all  losses,
liabilities,  claims, damages or expenses incurred by any of them arising out of
or by reason of (A) any claims by brokers due to acts or  omissions  by Borrower
or (B) any  investigation  or litigation  or other  proceedings  (including  any
threatened  investigation  or litigation or other  proceedings)  relating to any
actual or  proposed  use by Borrower  of the  proceeds  of the Loans,  including
without limitation, the reasonable fees and disbursements of counsel incurred in
connection with any such  investigation or litigation or other  proceedings (but
excluding any such losses, liabilities,  claims, damages or expenses incurred by
reason  of the  gross  negligence  or  willful  misconduct  of the  Person to be
indemnified).

                  The  obligations  of  Borrower  under this  Section  and under
Article  III  shall  survive  the  repayment  of all  amounts  due  under  or in
connection with any of the Loan Documents and the termination of the Loans.

                  Section 12.05 Assignment;  Participation. This Agreement shall
be binding  upon,  and shall inure to the benefit of,  Borrower,  Administrative
Agent, Lenders and their respective  successors and permitted assigns.  Borrower
may not assign or transfer its rights or obligations hereunder.

                                       65

<PAGE>

                  Any Lender may at any time grant to one or more banks or other
institutions  (each  a  "Participant")   participating  interests  in  its  Loan
("Participations").   In  the  event  of  any  such  grant  by  a  Lender  of  a
Participation to a Participant,  whether or not Borrower or Administrative Agent
was given notice,  such Lender shall remain  responsible  for the performance of
its obligations hereunder,  and Borrower and Administrative Agent shall continue
to deal solely and directly  with such Lender in  connection  with such Lender's
rights and obligations hereunder. Any agreement pursuant to which any Lender may
grant a Participation shall provide that such Lender shall retain the sole right
and  responsibility  to enforce the obligations of Borrower  hereunder and under
any other Loan Document, including, without limitation, the right to approve any
amendment,  modification  or waiver of any  provision  of this  Agreement or any
other Loan Document or the Subordination Agreement; provided, however, that such
participation  agreement  may  provide  that such  Lender  will not agree to any
modification,  amendment or waiver  described  in clauses (i) through  (viii) of
Section 12.02 without the consent of the Participant.

                  Subject to the provisions of Section 10.17,  any Lender may at
any time  assign  (x) to any bank or other  financial  institution  with (A) the
acknowledgment  of  Administrative  Agent, (B) the consent of Merrill Lynch, (C)
provided there exists no Event of Default, the prior written consent of Borrower
and (D) unless the bank or other  financial  institution  has assets of at least
$500,000,000, has a net worth of at least $250,000,000 and in all respects other
than net worth and assets meets the requirements for an "Institutional Investor"
(as defined in the Mortgage), the consent of the Required Lenders, none of which
consents listed above shall be unreasonably  withheld or delayed,  or (y) to one
of the existing Lenders,  to one or more of the institutions listed on EXHIBIT G
or to one  or  more  banks  or  other  institutions  which  are  majority  owned
subsidiaries  of a Lender or of the Parent of a Lender  (each such bank or other
institution  described  in clause (x) or (y) above,  an  "Assignee")  all,  or a
proportionate  part of all, of its rights and  obligations  under this Agreement
and the Note, and such Assignee shall assume rights and obligations, pursuant to
an  Assignment  and  Assumption  Agreement  executed  by such  Assignee  and the
assigning  Lender,  provided  that,  in each case,  after giving  effect to such
assignment  the  Assignee's  Loan  Commitment,  and,  in the  case of a  partial
assignment,  the assigning  Lender's Loan  Commitment,  each will be equal to or
greater than $10,000,000;  provided, further, however, that the assigning Lender
shall not be  required  to  maintain a Loan  Commitment  in the  minimum  amount
aforesaid in the event it assigns all of its rights and  obligations  under this
Agreement and the Note. Upon (i) execution and delivery of such instrument, (ii)
payment  by such  Assignee  to the  assigning  Lender of an amount  equal to the
purchase price agreed between such Lender and such Assignee and (iii) payment by
such Assignee to Administrative  Agent of a fee, for Administrative  Agent's own
account,  in the amount of $3,500,  such  Assignee  shall be a Lender under this
Agreement and shall have all the rights and obligations of a Lender as set forth
in such Assignment and Assumption  Agreement,  and the assigning Lender shall be
released  from its  obligations  hereunder  to a  corresponding  extent,  and no
further consent or action by any party shall be required. If the Assignee is not
incorporated  under the Laws of the United States or a state thereof,  it shall,
prior to the first date on which interest or fees are payable  hereunder for its
account,  deliver to  Borrower  and  Administrative  Agent  certification  as to
exemption  from  deduction or  withholding  of any United States  federal income
taxes in accordance  with Section  10.13.  Each Assignee shall be deemed to have
made the representations  contained in, and shall be bound by the provisions of,
Section 10.13.

                                       66

<PAGE>

                  Any Lender may at any time freely assign all or any portion of
its rights under this Agreement and the Note to a Federal  Reserve Bank. No such
assignment shall release the transferor Lender from its obligations hereunder.

                  Borrower recognizes that in connection with a Lender's selling
of Participations or making of assignments, any or all documentation,  financial
statements,  appraisals and other data, or copies thereof, relevant to Borrower,
Guarantor or the Loans may be exhibited to and retained by any such  Participant
or assignee  or  prospective  Participant  or  assignee.  In  connection  with a
Lender's  delivery  of any  financial  statements  and  appraisals  to any  such
Participant  or assignee or  prospective  Participant  or assignee,  such Lender
shall  also  indicate  that the  same are  delivered  on a  confidential  basis.
Borrower  agrees,  at  no  material  cost  or  expense,  and  without  expanding
Borrower's liability already provided for in the Loan Documents,  to provide all
assistance  reasonably  requested  by a Lender  to  enable  such  Lender to sell
Participations  or make  assignments  of its Loan as permitted by this  Section.
Each Lender agrees to provide  Administrative  Agent and Borrower with notice of
all Participations sold by such Lender.

                  Section 12.06  Documentation  Satisfactory.  All documentation
required from or to be submitted on behalf of Borrower in  connection  with this
Agreement  and the  documents  relating  hereto  shall be  subject  to the prior
approval of, and be satisfactory in form and substance to, Administrative Agent,
its counsel and, where specifically provided herein,  Lenders. In addition,  the
persons  or  parties   responsible  for  the  execution  and  delivery  of,  and
signatories to, all of such  documentation,  shall be acceptable to, and subject
to the approval of, Administrative Agent and its counsel.

                  Section 12.07 Notices. Except as expressly provided otherwise,
all notices, demands,  consents,  approvals and statements required or permitted
hereunder  shall be in  writing  and shall be  deemed to have been  sufficiently
given or served for all purposes when presented personally, three (3) days after
mailing by registered or certified mail,  postage prepaid,  or one (1) day after
delivery to a nationally recognized overnight courier service providing evidence
of the date of delivery,  addressed  to a party at its address on the  signature
page hereof or of the applicable Assignment and Assumption Agreement, or at such
other  address of which a party shall have notified the party giving such notice
in writing in accordance with the foregoing  requirements.  All notices that are
permitted to be given by telephone shall be promptly confirmed by facsimile.

                  Section  12.08  Setoff.  Borrower  agrees that, in addition to
(and without limitation of) any right of setoff, bankers' lien or counterclaim a
Lender  may  otherwise  have,  Administrative  Agent  and each  Lender  shall be
entitled, at its option, to offset balances (general or special, time or demand,
provisional  or  final)  held  by it  for  the  account  of  Borrower  at any of
Administrative  Agent's  or such  Lender's  offices,  in Dollars or in any other
currency, against any amount payable by Borrower to Administrative

                                       67

<PAGE>

Agent or such Lender under this Agreement or the Note or any other Loan Document
which is not paid when due  (regardless of whether such balances are then due to
Borrower),  in which case it shall promptly  notify Borrower and (in the case of
setoff  by a Lender)  Administrative  Agent  thereof;  provided,  however,  that
failure to give such notice shall not affect the validity  thereof.  Payments by
Borrower  hereunder  or under the other  Loan  Documents  shall be made  without
setoff or counterclaim.

                  Section 12.09  Severability.  The provisions of this Agreement
are intended to be severable.  If for any reason any provision of this Agreement
shall be held invalid or unenforceable in whole or in part in any  jurisdiction,
such provision shall, as to such  jurisdiction,  be ineffective to the extent of
such invalidity or unenforceability without in any manner affecting the validity
or enforceability  thereof in any other jurisdiction or the remaining provisions
hereof in any jurisdiction.

                  Section 12.10 Counterparts.  This Agreement may be executed in
any number of counterparts, all of which taken together shall constitute one and
the same instrument,  and any party hereto may execute this Agreement by signing
any such counterpart.

                  Section   12.11   Integration.   The   Loan   Documents,   the
Supplemental  Letter  Agreement  and the  Subordination  Agreement set forth the
entire   agreement  among  the  parties  hereto  relating  to  the  transactions
contemplated  thereby  and  supersede  any prior oral or written  statements  or
agreements with respect to such transactions.

                  Section 12.12  Governing Law. This Agreement shall be governed
by, and construed and enforced in accordance  with, the Laws of the State of New
York.

                  Section 12.13 Waivers.  In connection with the obligations and
liabilities as aforesaid,  Borrower  hereby waives (i) promptness and diligence,
(ii) notice of any actions  taken by  Administrative  Agent or any Lender  under
this  Agreement,  any other Loan  Document or any other  agreement or instrument
relating thereto except to the extent otherwise provided herein, (iii) all other
notices,  demands  and  protests,  and all other  formalities  of every  kind in
connection with the enforcement of the Obligations,  the omission of or delay in
which,  but for the  provisions of this Section,  might  constitute  grounds for
relieving  Borrower of its  obligations  hereunder,  (iv) any  requirement  that
Administrative Agent or any Lender protect,  secure,  perfect or insure any Lien
on all or any portion of the  Mortgaged  Property or on any other  collateral or
exhaust any right or take any action  against  Borrower,  Guarantor or any other
Person or against  all or any  portion of the  Mortgaged  Property  or any other
collateral, (v) any right or claim of right to cause a marshalling of the assets
of Borrower and (vi) all rights of subrogation or contribution,  whether arising
by contract or operation of law (including,  without limitation,  any such right
arising under the Federal  Bankruptcy Code) or otherwise by reason of payment by
Borrower, either jointly or severally,  pursuant to this Agreement or other Loan
Documents.

                  Section    12.14    Jurisdiction;     Immunities.    Borrower,
Administrative   Agent  and  each  Lender  hereby   irrevocably  submit  to  the
jurisdiction  of any New York

                                       68

<PAGE>

State or U.S.  federal  court  sitting  in New York  City  over  any  action  or
proceeding  arising out of or relating to this Agreement,  the Note or any other
Loan Document. Borrower, Administrative Agent, and each Lender irrevocably agree
that all  claims  in  respect  of such  action  or  proceeding  may be heard and
determined   in  such  New  York  State  or  U.S.   federal   court.   Borrower,
Administrative  Agent, and each Lender irrevocably consent to the service of any
and all  process in any such  action or  proceeding  by the mailing of copies of
such process to Borrower,  Administrative  Agent or each Lender, as the case may
be, at the addresses specified herein.  Borrower,  Administrative Agent and each
Lender  agree that a final  judgment in any such action or  proceeding  shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner  provided by Law.  Borrower,  Administrative  Agent and each
Lender  further  waive any  objection  to venue in the State of New York and any
objection  to an action or  proceeding  in the State of New York on the basis of
forum non conveniens.

                  Nothing in this  Section  shall  affect the right of Borrower,
Administrative  Agent or any Lender to serve legal  process in any other  manner
permitted by Law.

                  To the  extent  that  Borrower,  Administrative  Agent  or any
Lender have or hereafter may acquire any immunity from jurisdiction of any court
or from any legal process  (whether from service or notice,  attachment prior to
judgment,  attachment in aid of execution,  execution or otherwise) with respect
to itself or its Property, Borrower, Administrative Agent and each Lender hereby
irrevocably  waive  such  immunity  in  respect  of its  obligations  under this
Agreement, the Note and any other Loan Document.

                  BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER WAIVE ANY RIGHT
EACH SUCH PARTY MAY HAVE TO JURY TRIAL IN  CONNECTION  WITH ANY SUIT,  ACTION OR
PROCEEDING  BROUGHT WITH RESPECT TO THIS  AGREEMENT,  THE NOTE OR THE LOANS.  IN
ADDITION,  BORROWER FURTHER HEREBY  IRREVOCABLY AND  UNCONDITIONALLY  WAIVES, IN
CONNECTION  WITH ANY  SUIT,  ACTION  OR  PROCEEDING  BROUGHT  BY OR ON BEHALF OF
ADMINISTRATIVE  AGENT OR LENDERS  WITH  RESPECT TO THIS  AGREEMENT,  THE NOTE OR
OTHERWISE IN RESPECT OF THE LOANS,  ANY AND EVERY RIGHT BORROWER MAY HAVE TO (X)
INJUNCTIVE  RELIEF,  (Y)  INTERPOSE  ANY  COUNTERCLAIM  THEREIN,  OTHER  THAN  A
COMPULSORY  COUNTERCLAIM  AND (Z) HAVE THE SAME  CONSOLIDATED  WITH ANY OTHER OR
SEPARATE  SUIT,  ACTION OR  PROCEEDING.  NOTHING  CONTAINED  IN THE  IMMEDIATELY
PRECEDING  SENTENCE  SHALL  PREVENT OR PROHIBIT  BORROWER  FROM  INSTITUTING  OR
MAINTAINING  A SEPARATE  ACTION  AGAINST  ADMINISTRATIVE  AGENT OR LENDERS  WITH
RESPECT TO ANY ASSERTED CLAIM.

                  Section  12.15  Gross-Up  For  Taxes.  All  payments  made  by
Borrower  under this Agreement and the Note shall be made free and clear of, and
without  deduction  or  withholding  for or on account of, any present or future
income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions
or  withholdings,  now or  hereafter  imposed,  levied,  collected,  withheld or
assessed by any Governmental Authority,  excluding income taxes and franchise or
other taxes (imposed in lieu of income taxes)

                                       69

<PAGE>

imposed on a Lender as a result of a present or former  connection  between such
Lender and the jurisdiction of the Governmental  Authority  imposing such tax or
any political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from such Lender's having executed,  delivered or
performed  its  obligations  or  received a payment  under,  or  enforced,  this
Agreement or the Note). If any such non-excluded taxes, levies, imposts, duties,
charges, fees, deductions or withholdings ("Non-Excluded Taxes") are required to
be withheld from any amounts payable to such Lender hereunder or under the Note,
the amounts so payable to such Lender shall be increased to the extent necessary
to yield to such Lender (after payment of all  Non-Excluded  Taxes)  interest or
any such other  amounts  payable with respect to the its Loan at the rates or in
the amounts specified in this Agreement and the Note;  provided,  however,  that
Borrower  shall not be  required to increase  any such  amounts  payable to such
Lender if such Lender is not organized  under the Laws of the United States or a
state thereof and such Lender fails to comply with the  requirements  of Section
10.13.  Whenever any Non-Excluded Taxes are payable by Borrower,  as promptly as
possible thereafter Borrower shall send to Administrative  Agent for the account
of such Lender a  certified  copy of an original  official  receipt  received by
Borrower  showing  payment  thereof.  If Borrower fails to pay any  Non-Excluded
Taxes  when  due to the  appropriate  taxing  authority  or  fails  to  remit to
Administrative  Agent  the  required  receipts  or  other  required  documentary
evidence,  Borrower  shall  indemnify  such  Lender for any  incremental  taxes,
interest or penalties  that may become payable by such Lender as a result of any
such failure.  The  agreements in this Section shall survive the  termination of
this  Agreement  and the  payment  of the Note  and all  other  amounts  payable
hereunder.

                                       70
<PAGE>

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

                           METROPOLITAN 919 3RD AVENUE LLC, a
                           Delaware limited liability company
                           (as Borrower)

                           By:   Metropolitan 919 Manager LLC, a Delaware
                                 limited liability company, its managing
                                 member

                                 By:   Metropolitan Operating Partnership,
                                       L.P., a Delaware limited partnership,
                                       its sole member

                                       By:   Metropolitan Partners LLC, a
                                             Delaware limited liability
                                             company, its general partner

                                             By
                                                --------------------------------
                                                 Name:  Jason Barnett
                                                 Title: Executive Vice President

                           Address for notices:

                           10 East 50th Street, 27th Floor
                           New York, NY  10022

                           Attention: General Counsel, Jason Barnett

                                       71

<PAGE>

                              WELLS FARGO BANK, NATIONAL
                              ASSOCIATION (as Lender and Administrative
                              Agent)

                              By
                                 -----------------------------------------------
                                 Name:   Walter C. Sierotko, Jr.
                                 Title:  Vice President

                              Address for notices:

                              40 West 57th Street, 22nd Floor
                              New York, New York  10019
                              Attention:  Kimberly Naso

                              with a copy to:

                              2120 East Park Place, Suite 100
                              El Segundo, California  90245
                              Attention:  Susie Figueroa

                              Administrative Agent's Office and Applicable
                              Lending Office:

                              Wells Fargo Bank, National Association
                              2120 East Park Place, Suite 100
                              El Segundo, California  90245

                              MERRILL LYNCH MORTGAGE CAPITAL INC.
                              (as Lender)

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

                              Address for notices and Applicable Lending Office:

                              4 World Financial Center
                              26th Floor
                              New York, New York 10080
                              Attention: Daniel Gilbert and Sheri Weinstock

                                       72

<PAGE>

                               LANDESBANK SAAR GIROZENTRALE
                               (as Lender)

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

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

                              Address for notices and Applicable Lending Office:

                              Ursulinenstrasse 2
                              66111 Saarbrucken
                              Germany
                              Attention:  Dirk Hoffman

                                       73

<PAGE>

                              DEUTSCHE POSTBANK AG
                              (as Lender)

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

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

                              Address for notices and Applicable Lending Office:

                              Godesberger Allee 64-66
                              53175 Bonn
                              Germany
                              Attention:  Johannes Jordan

                                       74

<PAGE>

                              BAYERISCHE LANDESBANK,
                              CAYMAN ISLANDS BRANCH
                              (as Lender)

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

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

                              Address for notices and Applicable Lending Office:

                              560 Lexington Avenue
                              18th Floor
                              New York, New York  10022
                              Attention:  Paul Ragusin

                                       75

<PAGE>

                              DGZO  DEKABANK
                              DEUTSCHE KOMMUNALBANK
                              (as Lender)

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

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

                              Address for notices and Applicable Lending Office:

                              Mainzer Landstr. 16
                              60325 Frankfurt am Main
                              Germany
                              Attention:  Kurt G. Zimmermann

                                       76

<PAGE>

                              COMMERZBANK AG, NEW YORK AND
                              GRAND CAYMAN BRANCHES
                              (as Lender)

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

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

                              Address for notices and Applicable Lending Office:

                              2 World Financial Center
                              New York, New York  10281
                              Attention:  David Schwarz

                                       77

<PAGE>

                              WESTDEUTSCHE IMMOBILIENBANK
                              (as Lender)

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

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

                              Address for notices and Applicable Lending Office:

                              Gro(beta)e Bleiche 46
                              55116 Mainz
                              Germany
                              Attention:  Christian Girke

                                       78

<PAGE>

                              LANDESBANK SCHLESWIG-HOLSTEIN,
                              GIROZENTRALE
                              (as Lender)

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

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

                              Address for notices and Applicable Lending Office:

                              Martensdamm 6
                              D-24103 Kiel
                              Germany
                              Attention:  Michaela Braun

                                       79

<PAGE>

                              NORDDEUTSCHE LANDESBANK
                              GIROZENTRALE
                              (as Lender)

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

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

                              Address for notices and Applicable Lending Office:

                              Georgsplatz 1
                              30151 Hannover
                              Germany
                              Attention:  Ulrich Wilkens

                                       80

<PAGE>

                              LANDESBANK SACHSEN GIROZENTRALE
                              (as Lender)

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

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

                              Address for notices and Applicable Lending Office:

                              Humboldtstra(beta)e 25
                              04105 Leipzig
                              Germany
                              Attention:  Jana Pester

                                       81

<PAGE>

                                    EXHIBIT A

                              AUTHORIZATION LETTER

                                                     ________ ___, 2000

[NAME AND ADDRESS OF ADMINISTRATIVE AGENT]

                  Re:      Secured Loan Agreement dated as of ____________, 2000
                           (the   "Loan   Agreement";   capitalized   terms  not
                           otherwise  defined  herein  shall  have the  meanings
                           ascribed to such terms in the Loan  Agreement)  among
                           us, as Borrower,  the Lenders named therein, and you,
                           as Administrative Agent for said Lenders

Dear Sir/Madam:

                  In connection  with the captioned  Loan  Agreement,  we hereby
designate any of the following  persons to give to you  instructions,  including
notices  required  pursuant  to the Loan  Agreement,  orally,  by  telephone  or
teleprocess, or in writing:

                  [NAMES]

                  Instructions   may  be  honored   on  the  oral,   telephonic,
teleprocess or written  instructions  of anyone  purporting to be any one of the
above  designated  persons even if the  instructions  are for the benefit of the
person  delivering  them. We will furnish you with written  confirmation of each
such instruction  signed by any person  designated above (including any telecopy
which appears to bear the signature of any person  designated above) on the same
day that the  instruction  is  provided  to you,  but your  responsibility  with
respect to any instruction shall not be affected by your failure to receive such
confirmation or by its contents.

                  Without  limiting  the  foregoing,  we hereby  unconditionally
authorize any one of the above-designated persons to execute and submit requests
for  fundings of  proceeds of the Loans  (including  the  Initial  Funding)  and
notices  of  Elections,  Conversions  and  Continuations  to you  under the Loan
Agreement with the identical force and effect in all respects as if executed and
submitted by us.

                  You and Lenders  shall be fully  protected in, and shall incur
no liability  to us for,  acting upon any  instructions  which you in good faith
believe to have been given by any person designated above, and in no event shall
you or Lenders be liable for  special,  consequential  or punitive  damages.  In
addition,  we agree to hold you and Lenders and your and their respective agents
harmless  from any and all  liability,  loss and  expense  arising  directly  or
indirectly  out of  instructions  that we provide to you in connection  with the
Loan Agreement  except for liability,  loss or expense  occasioned by your gross
negligence or willful misconduct.

                                      A-1

<PAGE>

                  Upon notice to us, you may, at your option,  refuse to execute
any instruction,  or part thereof,  without incurring any responsibility for any
loss,  liability  or expense  arising  out of such  refusal if you in good faith
believe that the person  delivering  the  instruction  is not one of the persons
designated  above or if the instruction is not accompanied by an  authentication
method that we have agreed to in writing.

                  We will  promptly  notify  you in writing of any change in the
persons  designated  above and,  until you have  actually  received such written
notice and have had a reasonable  opportunity to act upon it, you are authorized
to act upon  instructions,  even though the person delivering them may no longer
be authorized.

                                          Very truly yours,

                                          [BORROWER]

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

                                      A-2
<PAGE>

                                    EXHIBIT B

                                      NOTE

$___________                                                  New York, New York

                                                                __________, 2000

                  For value received, [BORROWER] a _______________ ("Borrower"),
hereby promises to pay to the order of ___________  ("Administrative  Agent") or
its  successors  or  assigns,  for the  account of  Lenders or their  respective
successors and assigns (for the further account of their  respective  Applicable
Lending  offices) at the  principal  office of  Administrative  Agent located at
______________________________,   the   principal   sum  of   ________   Dollars
($____________), or, if less, the aggregate amount loaned by Lenders under their
Loans to Borrower  pursuant to the Loan Agreement and actually  outstanding,  in
lawful  money of the  United  States  and in  immediately  available  funds,  in
accordance  with  the  terms  set  forth in the Loan  Agreement.  Borrower  also
promises to pay interest on the unpaid principal balance hereof,  for the period
such balance is  outstanding,  in like money,  at said office for the account of
Lenders for the further account of their respective  Applicable Lending Offices,
at the time and at a rate per annum as provided in the Loan Agreement.  The Loan
Agreement  provides in certain  cases for the accrual of interest at the Default
Rate.

                  The date and  amount  of each  funding  of the  Loans  made by
Lenders to Borrower under the Loan Agreement referred to below, and each payment
of the Loans,  shall be recorded by Administrative  Agent on its records and may
be endorsed by  Administrative  Agent on the  schedule  attached  hereto and any
continuation thereof.

                  This  Note  is  the  Note  referred  to in  the  Secured  Loan
Agreement dated as of ________ __, 2000 (as the same may be amended from time to
time,  the "Loan  Agreement")  among  Borrower,  the Lenders  named  therein and
Administrative  Agent, as  Administrative  Agent for Lenders.  All of the terms,
conditions  and  provisions  of the Loan  Agreement are hereby  incorporated  by
reference.  All capitalized  terms used herein and not defined herein shall have
the meanings given to them in the Loan Agreement.

                  This Note is secured by the  Mortgage  which  contains,  among
other things,  provisions  for the prepayment of and  acceleration  of this Note
upon the happening of certain stated events. Reference to the Mortgage is hereby
made for a description of the "Mortgaged  Property"  encumbered  thereby and the
rights of Borrower  and Lenders  with  respect to such  Mortgaged  Property.  In
addition,  the Loan Agreement contains,  among other things,  provisions for the
prepayment of and acceleration of this Note upon the happening of certain stated
events.

                  Borrower  agrees  that it  shall  be  bound  by any  agreement
extending  the time or modifying the terms of payment set forth above and in the
Loan  Agreement,  made by or on behalf of Lenders and the owner or owners of any
of the Mortgaged Property under the Mortgage,  whether with or without notice to
Borrower,  and Borrower shall continue liable to pay the amount due hereunder in
accordance with the terms set forth herein and in the Loan  Agreement,  but with
interest  at a rate no  greater  than the  rate of  interest  provided  therein,
according to the terms of any such agreement of extension or modification.

                                      B-1

<PAGE>

                  Should the  indebtedness  represented by this Note or any part
thereof be collected at law or in equity, or in bankruptcy,  receivership or any
other court proceeding (whether at the trial or appellate level), or should this
Note be placed in the hands of attorneys for collection  upon default,  Borrower
agrees to pay,  in addition to the  principal,  interest  and other sums due and
payable  hereon,  all costs of  collecting  or  attempting to collect this Note,
including reasonable attorneys' fees and expenses.

                  No recourse  shall be had under this Note against  Borrower or
the Borrower  Members  except as and to the extent set forth in Section 11.02 of
the Loan Agreement.

                  All parties to this Note, whether principal, surety, guarantor
or endorser,  hereby waive presentment for payment,  demand,  protest, notice of
protest and notice of dishonor.

                  This Note shall be governed by, and  construed and enforced in
accordance  with,  the Laws of the State of New York;  provided  that, as to the
maximum lawful rate of interest  which may be charged or collected,  if the Laws
applicable  to Lenders  permit  them to charge or collect a higher rate than the
Laws of the State of New York,  then such Law  applicable to Lenders shall apply
under this Note.

                                            [BORROWER]

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

                                      B-2

<PAGE>

                     Amount of      Amount of       Balance
         Date         Funding        Payment      Outstanding     Notation by

                                      B-3

<PAGE>

                                    EXHIBIT C

                       ASSIGNMENT AND ASSUMPTION AGREEMENT

                  ASSIGNMENT AND ASSUMPTION  AGREEMENT,  dated as of __________,
2000, between [INSERT NAME OF ASSIGNING LENDER] ("Assignor") and [INSERT NAME OF
ASSIGNEE] ("Assignee").

                              Preliminary Statement

                  1. This Assignment and Assumption Agreement (this "Agreement")
relates to the Secured Loan Agreement  dated as of  _____________,  2000 (as the
same may be amended from time to time, the "Loan Agreement") among  ____________
("Borrower"),  the lenders party thereto  (each,  a "Lender" and,  collectively,
"Lenders")   and   ________________,   as   Administrative   Agent  for  Lenders
("Administrative  Agent").  All capitalized  terms not otherwise  defined herein
shall have the respective meanings set forth in the Loan Agreement.

                  2. Subject to the terms and  conditions  set forth in the Loan
Agreement,  Assignor  has made a Loan  Commitment  to Borrower  in an  aggregate
principal amount of $____________ ("Assignor's Loan Commitment").

                  3. The aggregate  outstanding  principal  amount of Assignor's
Loan made pursuant to Assignor's  Loan Commitment at commencement of business on
the date hereof is $__________.

                  4. Assignor desires to assign to Assignee all of the rights of
Assignor  under the Loan  Agreement in respect of a portion of its Loan and Loan
Commitment  thereunder  in an amount  equal to  $__________  (collectively,  the
"Assigned Loan and Commitment"), of which $________ is currently outstanding and
$________  remains to be disbursed to Borrower  pursuant to the Loan  Agreement;
and  Assignee  desires  to accept  assignment  of such  rights  and  assume  the
corresponding obligations from Assignor on such terms.

                  NOW,  THEREFORE,  in  consideration  of the  foregoing and the
mutual agreements contained herein, the parties hereto agree as follows:

                  SECTION 1.  Assignment.  Assignor  hereby assigns and sells to
Assignee  all of the rights of Assignor  under the Loan  Agreement in and to the
Assigned Loan and  Commitment,  and Assignee hereby accepts such assignment from
Assignor and assumes all of the obligations of Assignor under the Loan Agreement
with  respect  to the  Assigned  Loan and  Commitment.  Upon the  execution  and
delivery hereof by Assignor, Assignee, Administrative Agent (and, if applicable,
Borrower),  and the payment of the amount specified in Section 2 hereof required
to be paid on the date hereof,  (1) Assignee  shall,  as of the  commencement of
business on the date hereof,  succeed to the rights and  obligations of a Lender
under the Loan Agreement  with a Loan and a Loan  Commitment in amounts equal to
the  Assigned  Loan and  Commitment  and (2) the Loan  and  Loan

                                      C-1

<PAGE>

Commitment of Assignor  shall,  as of the  commencement  of business on the date
hereof,  be reduced  correspondingly  and Assignor released from its obligations
under the Loan  Agreement  to the extent such  obligations  have been assumed by
Assignee.  Assignor  represents  and warrants that it (x) owns the Assigned Loan
and  Commitment  free and clear of all liens and other  encumbrances  and (y) is
legally authorized to enter into and perform this Agreement.  Except as provided
in the immediately preceding sentence,  the assignment provided for herein shall
be without representation or warranty by, or recourse to, Assignor.

                  SECTION 2. Payments.  As consideration  for the assignment and
sale  contemplated  in Section 1 hereof,  Assignee  shall pay to Assignor on the
date hereof in  immediately  available  funds an amount  equal to  $___________.
Except as otherwise  agreed by Assignor and Assignee,  it is understood that any
fees paid to Assignor  under the Loan Agreement are for the account of Assignor.
Each of Assignor and Assignee hereby agrees that if it receives any amount under
the Loan Agreement which is for the account of the other party hereto,  it shall
receive the same for the account of such other party to the extent of such other
party's interest therein and shall promptly pay the same to such other party.

                  SECTION 3. Consents.  This  Agreement is conditioned  upon the
acknowledgment  of  Administrative  Agent and, provided there exists no Event of
Default,  the consent of Borrower and Merrill Lynch pursuant to Section 12.05 of
the Loan  Agreement.  The execution of this Agreement by Borrower (if required),
Merrill  Lynch  and  Administrative  Agent  is  evidence  of  this  consent  and
acknowledgment.  [CONSENTS  NOT  REQUIRED  FOR CERTAIN  ASSIGNMENTS  TO ENTITIES
RELATED TO A LENDER.]

                  SECTION  4.  Non-Reliance  on  Assignor.   Assignor  makes  no
representation  or warranty in connection with, and shall have no responsibility
with respect to, the solvency, financial condition, or statements of Borrower or
any other party to any Loan Document,  or the validity and enforceability of the
obligations  of Borrower or any other party to a Loan Document in respect of the
Loan Agreement or any other Loan Document.  Assignee  acknowledges  that it has,
independently and without reliance on Assignor,  and based on such documents and
information  as it  has  deemed  appropriate,  made  its  own  analysis  of  the
collateral for the Loans,  credit  analysis of Borrower and the other parties to
the Loan Documents, and decision to enter into this Agreement, and will continue
to be responsible for making its own independent appraisal of the collateral, if
any,  for the Loans and of the  business,  affairs and  financial  condition  of
Borrower and the other parties to the Loan Documents.

                  SECTION 5. Governing Law. This Agreement shall be governed by,
and construed and enforced in accordance with, the Laws of the State of New York
(without giving effect to New York's principles of conflicts of law).

                  SECTION 6.  Counterparts.  This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same instrument.

                                      C-2

<PAGE>

                  SECTION 7. Certain Representations and Agreements by Assignee.
Assignee represents and warrants that it is legally authorized to enter into and
perform this  Agreement.  In addition,  Assignee  hereby  represents  that it is
entitled to receive any  payments to be made to it under the Loan  Agreement  or
hereunder  without the withholding of any tax and agrees to furnish the evidence
of such  exemption  as  specified  therein  and  otherwise  to  comply  with the
provisions of Section 10.13 of the Loan Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      C-3
<PAGE>

                  IN WITNESS WHEREOF,  the parties have caused this Agreement to
be executed and delivered by their duly authorized officers as of the date first
above written.

                                          --------------------------------------
                                          (as Assignor)

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

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

                                          (as Assignee)

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

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

                                          Applicable Lending Office and
                                          Address for notices:

                                          --------------------------------------
                                          --------------------------------------
                                          --------------------------------------
                                          Attention:
                                                    ----------------------------
                                          Telephone:
                                                    ----------------------------
                                          Telecopy:
                                                    ----------------------------

                                      C-4

<PAGE>

                                          --------------------------------------
                                          (as Administrative Agent)

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

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

                                          --------------------------------------
                                          (as Borrower)

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

                                      C-5

<PAGE>

                                    EXHIBIT D

                              SOLVENCY CERTIFICATE

                  The person executing this  certificate is the  _______________
of _____________, is familiar with its properties, assets and businesses, and is
duly  authorized to execute this  certificate on its behalf  pursuant to Section
4.01(21)  of the  Secured  Loan  Agreement  dated  the date  hereof  (the  "Loan
Agreement")  among  _________________  ("Borrower"),  the lenders  party thereto
(each, a "Lender" and collectively,  "Lenders") and _______________________,  as
Administrative Agent for Lenders (in such capacity, together with its successors
in such capacity,  "Administrative Agent"). In executing this Certificate,  such
person is acting solely in his or her capacity  indicated  above, and not in his
or her individual  capacity.  Unless otherwise defined herein,  terms defined in
the Loan Agreement are used herein as therein defined.

                  The undersigned further certifies that he or she has carefully
reviewed the Loan  Agreement  and the other Loan  Documents  and the contents of
this Certificate and, in connection  herewith,  has made such  investigation and
inquiries as he or she deems  reasonably  necessary  and prudent  therefor.  The
undersigned  further  certifies that the financial  information  and assumptions
which  underlie  and  form  the  basis  for  the  representations  made  in this
Certificate  were  reasonable when made and were made in good faith and continue
to be reasonable as of the date hereof.

                  The  undersigned  understands  that  Administrative  Agent and
Lenders are relying on the truth and accuracy of this  Certificate in connection
with the transactions contemplated by the Loan Agreement.

                  The  undersigned  certifies  that   _____________________   is
Solvent.

                  IN  WITNESS   WHEREOF,   the  undersigned  has  executed  this
Certificate on ________ ___, 2000.

                                           -------------------------------------
                                           Name:

<PAGE>

                                    EXHIBIT E

                          NOTICE-OF-ASSIGNMENT OF LEASE
                           (On Letterhead of Borrower)

                                                     _____________, 2000

[NAME AND ADDRESS OF TENANT]

Re:      Lease Dated:
         Mortgagee: _______________________ (as Administrative Agent)
         Address of Mortgagee:
         Mortgage Dated:

Dear Sir/Madam:

                  The  undersigned  has  assigned by a mortgage or deed of trust
(the  "Mortgage")  dated  as  shown  above  to the  Mortgagee  identified  above
(hereinafter  "Mortgagee") all its estate,  right, title and interest in, to and
under the Lease  between you and the  undersigned  dated as set forth above,  as
said Lease may have been heretofore modified or amended (the "Lease"),  together
with all right,  title and  interest of the  undersigned  as lessor  thereunder,
including,  without  limitation,  the right upon the  occurrence  of an Event of
Default (as  defined in the  Mortgage)  to collect  and  receive  all  earnings,
revenues,  rents,  issues,  profits  and income of the  Property  subject to the
Mortgage.

                  Certain  provisions  of the  Mortgage,  the text of which  are
attached  hereto,  restrict  some of the  undersigned's  rights under the Lease.
However,  said  assignment does not impair or diminish any of our obligations to
you under the provisions of the Lease, nor are any such obligations imposed upon
Mortgagee  or upon the lenders for whom  Mortgagee  is acting as  Administrative
Agent, or their respective successors or assigns.

                  Pursuant to said  assignment  you are hereby  notified that in
the event of a demand on you by Mortgagee or its  successors and assigns for the
payment  to it of the  rents  due  under  the  Lease,  you may,  and are  hereby
authorized  and directed to, pay said rent to Mortgagee and we hereby agree that
the receipt by you of such a demand shall be conclusive  evidence of Mortgagee's
right  to the  receipt  thereof  and  that the  payment  of the  rents by you to
Mortgagee  pursuant to such demand shall constitute  performance in full of your
obligation under the Lease for the payment of rent to the undersigned.

-----------------------
NOTE:    To be sent in accordance with notice requirements of the Lease.

                                      E-1

<PAGE>

                  Kindly indicate your receipt of this letter and your agreement
to the effect set forth below by signing the  enclosed  copy thereof and mailing
it to Mortgagee at its address identified above.

                                          [BORROWER]

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

                  The undersigned  acknowledges  receipt of the original of this
letter and agrees for the benefit of Mortgagee that it shall notify Mortgagee of
any default on the part of the landlord  under the Lease which would entitle the
undersigned  to cancel the Lease or to abate the rent  payable  thereunder,  and
further agrees that,  notwithstanding  any provision of the Lease,  no notice of
cancellation thereof shall be effective unless Mortgagee has received the notice
aforesaid  and has failed  within 30 days of the date thereof to cure, or if the
default  cannot be cured within 30 days has failed to commence and to diligently
prosecute  the  cure,  of  landlord's  default  which  gave rise to the right to
cancel.

                                          [NAME OF TENANT]

                                          By:
                                             -----------------------------------
                                             ------------------------,
                                             its authorized officer

[ATTACH SECTION 1.14 OF MORTGAGE]

                                      E-2

<PAGE>

                                    EXHIBIT F

                           CAPITAL IMPROVEMENT PROGRAM

                                      F-1

<PAGE>

                                    EXHIBIT G

                         CERTAIN PRE-APPROVED ASSIGNEES

                                      None.

                                      G-1

<PAGE>

                                    EXHIBIT H

                        INFORMATION FURNISHED BY BORROWER

                                      H-1

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                       Page
                                                                                                       ----

<S>                        <C>                                                                          <C>

ARTICLE I                  DEFINITIONS AND CONSTRUCTION OF TERMS.........................................1
     Section 1.01          Definitions...................................................................1
     Section 1.02          Accounting Terms.............................................................17
     Section 1.03          Computation of Time Periods..................................................17
     Section 1.04          Rules of Construction........................................................17

ARTICLE II                 THE LOANS....................................................................17
     Section 2.01          The Loans....................................................................17
     Section 2.02          Nature of Lenders' Obligations...............................................18
     Section 2.03          Purpose......................................................................19
     Section 2.04          Procedures for Fundings......................................................19
     Section 2.05          Interest Periods; Renewals...................................................19
     Section 2.06          Interest.....................................................................20
     Section 2.07          Fees.........................................................................20
     Section 2.08          Note.........................................................................20
     Section 2.09          Prepayments..................................................................21
     Section 2.10          Method of Payment............................................................21
     Section 2.11          Elections, Conversions or Continuation of Loans..............................22
     Section 2.12          Minimum Amounts..............................................................22
     Section 2.13          Certain Notices Regarding Elections, Conversions and Continuations of Loans..22
     Section 2.14          Late Payment Premium.........................................................23
     Section 2.15          Debt Service Reserve.........................................................23
     Section 2.16          Extension of Maturity........................................................24
     Section 2.17          Interest Rate Cap during Third Year of Term..................................24

ARTICLE III                YIELD PROTECTION; ILLEGALITY; ETC............................................26
     Section 3.01          Additional Costs.............................................................26
     Section 3.02          Limitation on Types of Loans.................................................27
     Section 3.03          Illegality...................................................................27
     Section 3.04          Treatment of Affected Loans..................................................28
     Section 3.05          Certain Compensation.........................................................28
     Section 3.06          Capital Adequacy.............................................................29
     Section 3.07          Substitution of Lenders......................................................29
     Section 3.08          "Lender" to Include Participants.............................................31

ARTICLE IV                 CONDITIONS PRECEDENT.........................................................31
     Section 4.01          Conditions Precedent to Initial Funding......................................31
     Section 4.02          Conditions Precedent to Fundings After the Initial Funding...................36
     Section 4.03          Deemed Representations.......................................................37

                                                                 i

<PAGE>

<CAPTION>

ARTICLE V                  REPRESENTATIONS AND WARRANTIES...............................................38
     Section 5.01          Due Organization.............................................................38
     Section 5.02          Power and Authority; No Conflicts; Compliance With Laws......................38
     Section 5.03          Legally Enforceable Agreements...............................................38
     Section 5.04          Litigation...................................................................38
     Section 5.05          Taxes........................................................................39
     Section 5.06          ERISA........................................................................39
     Section 5.07          No Default on Outstanding Judgments or Orders................................39
     Section 5.08          No Defaults on Other Agreements..............................................39
     Section 5.09          Government Regulation........................................................39
     Section 5.10          Environmental Protection.....................................................39
     Section 5.11          Solvency.....................................................................40
     Section 5.12          Financial Statements.........................................................40
     Section 5.13          Insurance....................................................................40
     Section 5.14          Accuracy of Information; Full Disclosure.....................................40
     Section 5.15          Separate Tax and Zoning Lot..................................................41
     Section 5.16          Zoning and other Laws; Covenants and Restrictions............................41
     Section 5.17          Utilities Available..........................................................41
     Section 5.18          Creation of Liens............................................................41
     Section 5.19          Roads........................................................................41
     Section 5.20          Premises Documents and Leases................................................41

ARTICLE VI                 AFFIRMATIVE COVENANTS........................................................41
     Section 6.01          Maintenance of Existence.....................................................42
     Section 6.02          Maintenance of Records.......................................................42
     Section 6.03          Compliance with Laws; Payment of Taxes.......................................42
     Section 6.04          Right of Inspection..........................................................42
     Section 6.05          Maintenance of Insurance.....................................................42
     Section 6.06          Compliance With Environmental Laws...........................................42
     Section 6.07          Maintenance of Improvements..................................................42
     Section 6.08          Payment of Costs.............................................................43
     Section 6.09          Reporting and Miscellaneous Document Requirements............................43
     Section 6.10          Continuing Accuracy of Representations and Warranties........................45
     Section 6.11          Premises Documents and Leases................................................45
     Section 6.12          Compliance with Covenants, Restrictions and Easements........................45
     Section 6.13          Management, Brokerage and Service Contracts..................................45
     Section 6.14          Evidence of Completion of Work...............................................46
     Section 6.15          Balance Sheet of Borrower....................................................46
     Section 6.16          Trust Fund...................................................................46

ARTICLE VII                SPE REPRESENTATIONS AND NEGATIVE COVENANTS...................................46
     Section 7.01          Single Purpose Entity........................................................46
     Section 7.02          Distributions................................................................48
     Section 7.03          Interest Rate Hedging........................................................48

                                                                 ii

<PAGE>

<CAPTION>

ARTICLE VIII               FINANCIAL COVENANTS..........................................................49
     Section 8.01          Financial Covenants..........................................................49
     Section 8.02          Cash Flow Sweep..............................................................49

ARTICLE IX                 EVENTS OF DEFAULT............................................................51
     Section 9.01          Events of Default............................................................51
     Section 9.02          Remedies.....................................................................54

ARTICLE X                  ADMINISTRATIVE AGENT; RELATIONS AMONG LENDERS................................54
     Section 10.01         Appointment, Powers and Immunities of Administrative Agent...................54
     Section 10.02         Reliance by Administrative Agent.............................................55
     Section 10.03         Defaults.....................................................................55
     Section 10.04         Rights of Administrative Agent as a Lender...................................56
     Section 10.05         Sharing of Costs by Lenders; Indemnification of Administrative Agent.........56
     Section 10.06         Non-Reliance on Administrative Agent and Other Lenders.......................57
     Section 10.07         Failure of Administrative Agent to Act.......................................57
     Section 10.08         Resignation or Removal of Administrative Agent...............................57
     Section 10.09         Amendments Concerning Agency Function........................................58
     Section 10.10         Liability of Administrative Agent............................................58
     Section 10.11         Transfer of Agency Function..................................................58
     Section 10.12         Intentionally Omitted........................................................58
     Section 10.13         Withholding Taxes............................................................58
     Section 10.14         Pro Rata Treatment...........................................................59
     Section 10.15         Sharing of Payments Among Lenders............................................59
     Section 10.16         Possession of Documents......................................................59
     Section 10.17         Minimum Commitment by Merrill Lynch..........................................59
     Section 10.18         Effect of a Lender's Failure to Make a Funding...............................59
     Section 10.19         Cure by Delinquent Lender....................................................61
     Section 10.20         Delinquent Lender Not Excused................................................61
     Section 10.21         Notices Regarding Delinquent Lender..........................................62

ARTICLE XI                 NATURE OF OBLIGATIONS........................................................62
     Section 11.01         Absolute and Unconditional Obligations.......................................62
     Section 11.02         Non-Recourse.................................................................62

ARTICLE XII                MISCELLANEOUS................................................................63
     Section 12.01         Binding Effect of Request for Funding........................................63
     Section 12.02         Amendments and Waivers.......................................................64
     Section 12.03         Usury........................................................................64
     Section 12.04         Expenses; Indemnification....................................................65
     Section 12.05         Assignment; Participation....................................................65
     Section 12.06         Documentation Satisfactory...................................................67
     Section 12.07         Notices......................................................................67

                                                                iii

<PAGE>

<CAPTION>

     Section 12.08         Setoff.......................................................................67
     Section 12.09         Severability.................................................................68
     Section 12.10         Counterparts.................................................................68
     Section 12.11         Integration..................................................................68
     Section 12.12         Governing Law................................................................68
     Section 12.13         Waivers......................................................................68
     Section 12.14         Jurisdiction; Immunities.....................................................68
     Section 12.15         Gross-Up For Taxes...........................................................69

EXHIBIT A - Authorization Letter

EXHIBIT B - Note

EXHIBIT C - Assignment and Assumption Agreement

EXHIBIT D - Solvency Certificate

EXHIBIT E - Notice of Assignment of Lease

EXHIBIT F - Capital Improvement Program

EXHIBIT G - Certain Pre-Approved Assignees

EXHIBIT H - Information Furnished by Borrower

</TABLE>

                                       iv

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