Document:

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                                 EXHIBIT 10.45

                  MORTGAGE, ASSIGNMENT AND SECURITY AGREEMENT

                         FOR THE BANK OF AMERICA LOAN
<PAGE>

This Instrument Prepared by and
After Recording Please Return to:

A. Michelle Willis, Esquire
Troutman Sanders LLP
Bank of America Plaza, Suite 5200
600 Peachtree Street, N.E.
Atlanta, Georgia  30308-2216

PIN No.   0304101012

                             MORTGAGE, ASSIGNMENT
                            AND SECURITY AGREEMENT
                            ----------------------

     THIS MORTGAGE, ASSIGNMENT AND SECURITY AGREEMENT (this "Mortgage") dated as
                                                             --------
of February 24, 2000, is executed and delivered by Mortgagor for good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged by Mortgagee.

     ARTICLE 1 - Certain Definitions; Granting Clauses; Secured Indebtedness
                 -----------------------------------------------------------

     Section 1.1.  Principal Secured.  This Mortgage secures the aggregate
                   -----------------
principal amount of TWENTY SIX MILLION SEVEN HUNDRED TWENTY FIVE THOUSAND AND
NO/100 DOLLARS ($26,725,000.00).  The maximum aggregate principal amount which
may be outstanding at any time under the Amended and Restated Revolving Credit
Note and the Promissory Note is $26,725,000.00.

     Section 1.2.  Certain Definitions and Reference Terms.  In addition to
                   ---------------------------------------
other terms defined herein, each of the following terms shall have the meaning
assigned to it:

     "Amended and Restated Revolving Credit Note":  Amended and Restated
      ------------------------------------------
Revolving Credit Note dated of even date herewith, made by Mortgagor payable to
the order of Mortgagee in the principal face amount of TWENTY SIX MILLION SEVEN
HUNDRED TWENTY FIVE THOUSAND AND NO/100 DOLLARS ($26,725,000.00), bearing
interest as therein provided,

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containing a provision for, among other things, the payment of attorneys' fees,
and with the full debt, if not paid earlier, due and payable on November 23,
2000.

     "Major Lease":  That certain Amended and Restated Lease Agreement dated May
      -----------
31, 1991, by Chicago Industrial 1990 II Limited Partnership, as landlord
("Original Landlord"), and A.B. Dick Company, as tenant ("Original Tenant"), as
amended by (i) that certain undated Lease Clarification Agreement by and between
Original Landlord and Original Tenant, (ii) letter dated August 9, 1991 from Sun
Life Insurance Company of America, for Original Landlord, as accepted by letter
dated August 21, 1991 from Original Tenant to Sun Life Insurance Company of
America, and (iii) Second Amendment to Lease dated as of June 30, 1994 by and
between Sun-Pla, a California limited partnership, as successor to Original
Landlord and Original Tenant, Original Tenant's interest having been assigned to
Videojet Systems International, Inc. ("Videojet") by Assignment and Assumption
Agreement dated as of October 31, 1997 by and among Sun-Pla, a California
limited partnership ("Landlord"), Original Tenant and Videojet.

     "Mortgagee":  Bank of America, N.A., a national banking association, whose
      ---------
place of business is 600 Peachtree Street, N.E., 6th Floor, Atlanta, Georgia,
30308, its successors and assigns.

     "Mortgagor":  Wells Operating Partnership, L.P., a Delaware limited
      ---------
partnership, whose address is 6200 The Corners Parkway, Suite 250, Norcross,
Georgia  30092, and its permitted successors and assigns.

     "Promissory Note":  Promissory Note dated as of February 4, 1999, in the
      ---------------
face amount of SIX MILLION FOUR HUNDRED TWENTY-FIVE THOUSAND AND NO/100 DOLLARS
($6,425,000.00) with interest thereon.

     Section 1.3.  Property.  Mortgagor does hereby MORTGAGE, GRANT, and CONVEY,
                   --------
to Mortgagee the following: (a) the real estate (herein called the "Land")
                                                                    ----
described in Exhibit A which is attached hereto and incorporated herein by
             ---------
reference and which Land has the address of  1500 Mittel Boulevard in the
Chancellery Business Park, Wood Dale, Illinois, and (i) all improvements now or
hereafter situated or to be situated on the Land (herein together called the
"Improvements"); and (ii) all right, title and interest of Mortgagor, now owned
 ------------
or hereafter acquired, in and to (1) all streets, roads, alleys, easements,
rights-of-way, licenses, rights of ingress and egress, vehicle parking rights
and public places, existing or proposed, abutting, adjacent, used in connection
with or pertaining to the Land or the Improvements; (2) any strips or gores
between the Land and abutting or adjacent properties; (3) all options to
purchase or lease the Land or the Improvements or any portion thereof or
interest therein, and any greater estate in the Land or the Improvements; (4)
all claims, actions and causes of action, both in law and in equity, with
respect to the Property or the Improvements; and (5) all water and water rights,
timber, crops and mineral interests on or pertaining to the Land (the Land,
Improvements and other rights, titles and interests referred to in this clause
(a) being herein sometimes collectively called the "Premises"); (b) all
                                                    --------
fixtures, equipment, systems, machinery, furniture, furnishings, appliances,
inventory, goods, building and construction materials, supplies, and articles of
personal property, of every kind and character, now owned or hereafter acquired
by Mortgagor, which are now or hereafter attached to or situated in, on or about
the Land or the Improvements, or used in or necessary to the complete and proper

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planning, development, use, occupancy or operation thereof, or acquired (whether
delivered to the Land or stored elsewhere) for use or installation in or on the
Land or the Improvements, and all renewals and replacements of, substitutions
for and additions to the foregoing (the properties referred to in this clause
(b) being herein sometimes collectively called the "Accessories," all of which
                                                    -----------
are hereby declared to be permanent accessions to the Land); (c) all (i) plans
and specifications for the Improvements; (ii) Mortgagor's rights, but not
liability for any breach by Mortgagor, under all commitments (including any
commitment for financing to pay any of the secured indebtedness, as defined
below), insurance policies, contracts and agreements for the design,
construction, operation or inspection of the Improvements and other contracts
and general intangibles (including but not limited to trademarks, trade names,
goodwill and symbols) related to the Premises or the Accessories or the
operation thereof; (iii) deposits (including but not limited to Mortgagor's
rights in tenants' security deposits, deposits with respect to utility services
to the Premises, and any deposits or reserves hereunder or under any other Loan
Document for taxes, insurance or otherwise), rebates or refunds of impact fees
or other taxes, assessments or charges, money, accounts, instruments, documents,
notes and chattel paper arising from or by virtue of any transactions related to
the Premises or the Accessories; (iv) permits, licenses, franchises,
certificates, development rights, commitments and rights for utilities, and
other rights and privileges obtained in connection with the Premises or the
Accessories; (v) leases, rents, royalties, bonuses, issues, profits, revenues
and other benefits of the Premises and the Accessories (without derogation of
Article 3 hereof); (vi) oil, gas and other hydrocarbons and other minerals
produced from or allocated to the Land and all products processed or obtained
therefrom, and the proceeds thereof; and (vii) engineering, accounting, title,
legal, and other technical or business data concerning the Premises which are in
the possession of Mortgagor or in which Mortgagor can otherwise grant a security
interest; and (d) all (i) proceeds (cash or non-cash) of or arising from the
properties, rights, titles and interests referred to above in this Section 1.3,
including but not limited to proceeds of any sale, lease or other disposition
thereof, proceeds of each policy of insurance relating thereto (including
premium refunds), proceeds of the taking thereof or of any rights appurtenant
thereto, including change of grade of streets, curb cuts or other rights of
access, by condemnation, eminent domain or transfer in lieu thereof for public
or quasi-public use under any law, and proceeds arising out of any damage
thereto; and (ii) other interests of every kind and character which Mortgagor
now has or hereafter acquires in, to or for the benefit of the properties,
rights, titles and interests referred to above in this Section 1.3 and all
property used or useful in connection therewith, including but not limited to
rights of ingress and egress and remainders, reversions and reversionary rights
or interests; and if the estate of Mortgagor in any of the property referred to
above in this Section 1.3 is a leasehold estate, this conveyance shall include,
and the lien and interest created hereby shall encumber and extend to, all other
or additional title, estates, interests or rights which are now owned or may
hereafter be acquired by Mortgagor in or to the property demised under the lease
creating the leasehold estate; TO HAVE AND TO HOLD the foregoing rights,
interests and properties, and all rights, estates, powers and privileges
appurtenant thereto (herein collectively called the "Property"), unto Mortgagee,
                                                     --------
and its successors and assigns, forever, subject to the Permitted Encumbrances
(as hereafter defined), however, upon the terms, provisions and conditions
herein set forth, to secure the Promissory Note and Loan Documents (as
hereinafter defined) and all other indebtedness and matters defined as "secured
indebtedness" in Section 1.5 of this Mortgage.

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     Section 1.4.  Security Interest.  Mortgagor hereby grants to Mortgagee a
                   -----------------
security interest in all of the Property which constitutes personal property or
fixtures (herein sometimes collectively called the "Collateral").  In addition
                                                    ----------
to its rights hereunder or otherwise, Mortgagee shall have all of the rights of
a secured party under the Uniform Commercial Code as adopted in the State of
Illinois, or under the Uniform Commercial Code in force in any other state to
the extent the same is applicable law.

     Section 1.5.  Note, Loan Documents, Other Obligations.  This Mortgage is
                   ---------------------------------------
made to secure and enforce the payment and performance of the following
promissory notes, obligations, indebtedness and liabilities and all renewals,
extensions, supplements, increases, and modifications thereof in whole or in
part from time to time:  (a) the Promissory Note, the Amended and Restated
Revolving Credit Note, and all other notes given in substitution therefor or in
modification, supplement, increase, renewal or extension thereof, in whole or in
part (such note or notes, whether one or more, as from time to time renewed,
extended, supplemented, increased or modified and all other notes given in
substitution therefor, or in modification, renewal or extension thereof, in
whole or in part, being hereinafter called the "Note"); (b) all indebtedness and
                                                ----
other obligations owed by Mortgagor to Mortgagee now or hereafter incurred or
arising pursuant to or permitted by the provisions of the Note, this Mortgage,
or any other document now or hereafter evidencing, governing, guaranteeing,
securing or otherwise executed in connection with the loan evidenced by the
Note, including but not limited to any tri-party financing agreement or other
agreement between Mortgagor and Mortgagee, or among Mortgagor, Mortgagee and any
other party or parties, pertaining to the repayment or use of the proceeds of
the loan evidenced by the Note (the Note, this Mortgage and such other
documents, as they or any of them may have been or may be from time to time
renewed, extended, supplemented, increased or modified, being herein sometimes
collectively called the "Loan Documents"); and (c) all other loans and future
                         --------------
advances made by Mortgagee to Mortgagor and all other debts, obligations and
liabilities of Mortgagor of every kind and character now or hereafter existing
in favor of Mortgagee, however and whenever incurred, whether direct or
indirect, primary or secondary, joint or several, fixed or contingent, secured
or unsecured, and whether originally payable to Mortgagee or to a third party
and subsequently acquired by Mortgagee, it being contemplated that Mortgagor may
hereafter become indebted to Mortgagee for such further debts, obligations and
liabilities; provided, however, and notwithstanding the foregoing provisions of
this clause (c), this Mortgage shall not secure any such other loan, advance,
debt, obligation or liability with respect to which Mortgagee is by applicable
law prohibited from obtaining a lien or security title on real estate nor shall
this clause (c) operate or be effective to constitute or require any assumption
or payment by any person, in any way, of any debt of any other person to the
extent that the same would violate or exceed the limit provided in any
applicable usury or other law.  The indebtedness referred to in this Section 1.5
is hereinafter sometimes referred to as the "secured indebtedness" or the
                                             --------------------
"indebtedness secured hereby."  The maximum aggregate amount of the indebtedness
 ---------------------------
secured hereby shall not exceed Twenty Six Million Seven Hundred Twenty Five
Thousand Dollars ($26,725,000.00).

             ARTICLE 2 - Representations, Warranties and Covenants
                         -----------------------------------------

     Section 2.1.  Mortgagor represents, warrants, and covenants as follows:

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     (a)  Payment and Performance.  Mortgagor will make due and punctual payment
          -----------------------
of the secured indebtedness.  Mortgagor will timely and properly perform and
comply with all of the covenants, agreements, and conditions imposed upon it by
this Mortgage and the other Loan Documents and will not permit a default to
occur hereunder or thereunder.  Time shall be of the essence in this Mortgage.

     (b)  Title and Permitted Encumbrances.  Mortgagor has, in Mortgagor's own
          --------------------------------
right, and Mortgagor covenants to maintain, lawful, good and marketable title to
the Property, is lawfully seized and possessed of the Property and every part
thereof, and has the right to convey the same, free and clear of all liens,
charges, claims, interests, and encumbrances except for (i) the matters, if any,
set forth under the heading "Permitted Exceptions" in Exhibit B hereto, which
                                                      ---------
are Permitted Exceptions only to the extent the same are valid and subsisting
and affect the Property, (ii) the liens and security interests evidenced by this
Mortgage, and (iii) other liens and security interests (if any) in favor of
Mortgagee (the matters described in the foregoing clauses (i), (ii) and (iii)
being herein called the "Permitted Encumbrances").  Mortgagor, and Mortgagor's
                         ----------------------
successors and assigns, will warrant generally and forever defend title to the
Property, subject as aforesaid, to Mortgagee and its successors and assigns,
against the claims and demands of all persons claiming or to claim the same or
any part thereof.  Mortgagor will punctually pay, perform, observe and keep all
covenants, obligations and conditions in or pursuant to any Permitted
Encumbrance and will not modify or permit modification of any Permitted
Encumbrance without the prior written consent of Mortgagee.  Inclusion of any
matter as a Permitted Encumbrance does not constitute approval or waiver by
Mortgagee of any existing or future violation or other breach thereof by
Mortgagor, by the Property or otherwise.  If any right or interest of Mortgagee
in the Property or any part thereof shall be endangered or questioned or shall
be attacked directly or indirectly, Mortgagee  (whether or not named as a party
to legal proceedings with respect thereto) is hereby authorized and empowered to
take such steps as in its discretion may be proper for the defense of any such
legal proceedings or the protection of such right or interest of Mortgagee,
including but not limited to the employment of independent counsel, the
prosecution or defense of litigation, and the compromise or discharge of adverse
claims.  All expenditures so made of every kind and character shall be a demand
obligation (which obligation Mortgagor hereby promises to pay) owing by
Mortgagor to Mortgagee, and Mortgagee shall be subrogated to all rights of the
person receiving such payment.

     (c)  Taxes and Other Impositions.  To the extent that Mortgagor has not
          ---------------------------
deposited sufficient amounts with Mortgagee pursuant to Subsection 2.1(e) of
this Mortgage, Mortgagor will pay, or cause to be paid, all taxes, assessments
and other charges or levies imposed upon or against or with respect to the
Property or the ownership, use, occupancy or enjoyment of any portion thereof,
or any utility service thereto, as the same become due and payable, including
but not limited to all ad valorem taxes assessed against the Property or any
part thereof, and shall deliver promptly to Mortgagee such evidence of the
payment thereof as Mortgagee may require.

     (d)  Insurance.  Mortgagor shall obtain and maintain or cause to be
          ---------
obtained and maintained at Mortgagor's sole expense:  (1) mortgagee title
insurance issued to Mortgagee covering the Premises as required by Mortgagee,
without exception for mechanics' liens; (2) all-risk insurance with respect to
all insurable Property, against loss or damage by fire, lightning, windstorm,
explosion, hail, tornado and such hazards as are presently included in so-called
"all-risk" coverage and against such other insurable hazards as Mortgagee may
require, in an amount not less than

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100% of the full replacement cost, including the cost of debris removal, without
deduction for depreciation and sufficient to prevent Mortgagor and Mortgagee
from becoming a coinsurer, such insurance to be in builder's risk (non-
reporting) form during and with respect to any construction on the Premises; (3)
if and to the extent any portion of the Improvements is in a special flood
hazard area, a flood insurance policy in an amount equal to the lesser of the
principal face amount of the Note or the maximum amount available; (4)
comprehensive general public liability insurance, on an "occurrence" basis, for
the benefit of Mortgagor and Mortgagee as named insureds; (5) statutory workers'
compensation insurance with respect to any work on or about the Premises; and
(6) such other insurance on the Property as may from time to time be required by
Mortgagee (including but not limited to rental loss or business interruption
insurance, boiler and machinery insurance and earthquake insurance) and against
other insurable hazards or casualties which at the time are commonly insured
against in the case of premises similarly situated, due regard being given to
the height, type, construction, location, use and occupancy of buildings and
improvements. All insurance policies shall be issued and maintained by insurers,
in amounts, with deductibles, and in form satisfactory to Mortgagee, and shall
require not less than thirty (30) days' prior written notice to Mortgagee of any
cancellation or change of coverage. All insurance policies maintained, or caused
to be maintained, by Mortgagor with respect to the Property, except for public
liability insurance, shall provide that each such policy shall be primary
without right of contribution from any other insurance that may be carried by
Mortgagor or Mortgagee and that all of the provisions thereof, except the limits
of liability, shall operate in the same manner as if there were a separate
policy covering each insured. If any insurer which has issued a policy of title,
hazard, liability or other insurance required pursuant to this Mortgage or any
other Loan Document becomes insolvent or the subject of any bankruptcy,
receivership or similar proceeding or if in Mortgagee's reasonable opinion the
financial responsibility of such insurer is or becomes inadequate, Mortgagor
shall, in each instance promptly upon the request of Mortgagee and at
Mortgagor's expense, obtain and deliver to Mortgagee a like policy (or, if and
to the extent permitted by Mortgagee, a certificate of insurance) issued by
another insurer, which insurer and policy meet the requirements of this Mortgage
or such other Loan Document, as the case may be. Without limiting the discretion
of Mortgagee with respect to required endorsements to insurance policies, all
such policies for loss of or damage to the Property shall contain a standard
mortgagee clause (without contribution) naming Mortgagee as mortgagee with loss
proceeds payable to Mortgagee notwithstanding (i) any act, failure to act or
negligence of or violation of any warranty, declaration or condition contained
in any such policy by any named insured; (ii) the occupation or use of the
Property for purposes more hazardous than permitted by the terms of any such
policy; (iii) any foreclosure or other action by Mortgagee under the Loan
Documents; or (iv) any change in title to or ownership of the Property or any
portion thereof, such proceeds to be held for application as provided in the
Loan Documents. The originals of each initial insurance policy (or to the extent
permitted by Mortgagee, a copy of the original policy and a satisfactory
certificate of insurance) shall be delivered to Mortgagee at the time of
execution of this Mortgage, with premiums fully paid, and each renewal or
substitute policy (or certificate) shall be delivered to Mortgagee, with
premiums fully paid as due, at least ten (10) days before the termination of the
policy it renews or replaces. Notwithstanding the foregoing, the failure to
comply with any of the foregoing requirements with respect to workers'
compensation insurance shall not be a default or Event of Default hereunder so
long as Mortgagor maintains such workers' compensation insurance as shall be
required by law. Mortgagor shall pay all premiums on policies required hereunder
as they become due and payable and promptly deliver to Mortgagee evidence
satisfactory to Mortgagee of the timely payment thereof. If any loss occurs at
any time

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when Mortgagor has failed to perform Mortgagor's covenants and agreements in
this paragraph, Mortgagee shall nevertheless be entitled to the benefit of all
insurance covering the loss and held by or for Mortgagor, to the same extent as
if it had been made payable to Mortgagee. Upon any foreclosure hereof or
transfer of title to the Property in extinguishment of the whole or any part of
the secured indebtedness, all of Mortgagor's right, title and interest in and to
the insurance policies referred to in this Section (including unearned premiums)
and all proceeds payable thereunder shall thereupon vest in the purchaser at
foreclosure or other such transferee, to the extent permissible under such
policies. Mortgagee shall have the right (but not the obligation) to make proof
of loss for, settle and adjust any claim under, and receive the proceeds of, all
insurance for loss of or damage to the Property, and the expenses incurred by
Mortgagee in the adjustment and collection of insurance proceeds shall be a part
of the secured indebtedness and shall be due and payable to Mortgagee on demand.
Mortgagee shall not be, under any circumstances, liable or responsible for
failure to collect or exercise diligence in the collection of any of such
proceeds or for the obtaining, maintaining or adequacy of any insurance or for
failure to see to the proper application of any amount paid over to Mortgagor.
Any such proceeds received by Mortgagee shall, after deduction therefrom of all
reasonable expenses actually incurred by Mortgagee, including attorneys' fees,
at Mortgagee's option, subject to the terms of Subsection 2.1(g), below, be (1)
released to Mortgagor, or (2) applied (upon compliance with such terms and
conditions as may be required by Mortgagee) to repair or restoration, either
partly or entirely, of the Property so damaged, or (3) applied to the payment of
the secured indebtedness in such order and manner as Mortgagee, in its sole
discretion, may elect, whether or not due. In any event, the unpaid portion of
the secured indebtedness shall remain in full force and effect and the payment
thereof shall not be excused. Mortgagor shall at all times comply with the
requirements of the insurance policies required hereunder and of the issuers of
such policies and of any board of fire underwriters or similar body as
applicable to or affecting the Property.

     (e)  Reserve for Insurance, Taxes and Assessments.  Upon request of
          --------------------------------------------
Mortgagee, to secure certain of Mortgagor's obligations in paragraphs (c) and
(d) above, but not in lieu of such obligations, Mortgagor will deposit with
Mortgagee a sum equal to ad valorem taxes, assessments and charges (which
charges for the purpose of this paragraph shall include without limitation any
recurring charge which could result in a lien against the Property) against the
Property for the current year and the premiums for such policies of insurance
for the current year, all as estimated by Mortgagee and prorated to the end of
the calendar month following the month during which Mortgagee's request is made,
and thereafter will deposit with Mortgagee, on each date when an installment of
principal and/or interest is due on the Note, sufficient funds (as estimated
from time to time by Mortgagee) to permit Mortgagee to pay at least fifteen (15)
days prior to the due date thereof, the next maturing ad valorem taxes,
assessments and charges and premiums for such policies of insurance.  Mortgagee
shall have the right to rely upon tax information furnished by applicable taxing
authorities in the payment of such taxes or assessments and shall have no
obligation to make any protest of any such taxes or assessments.  Any excess
over the amounts required for such purposes shall be held by Mortgagee for
future use, applied to any secured indebtedness or refunded to Mortgagor, at
Mortgagee's option, and any deficiency in such funds so deposited shall be made
up by Mortgagor upon demand of Mortgagee.  All such funds so deposited shall
bear no interest, may be mingled with the general funds of Mortgagee and shall
be applied by Mortgagee toward the payment of such taxes, assessments, charges
and premiums when statements therefor are presented to Mortgagee by Mortgagor
(which statements shall be presented by

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Mortgagor to Mortgagee a reasonable time before the applicable amount is
delinquent); provided, however, that, if an Event of Default (hereinafter
defined) shall have occurred hereunder, such funds may at Mortgagee's option be
applied to the payment of the secured indebtedness in the order determined by
Mortgagee in its sole discretion, and that Mortgagee may (but shall have no
obligation) at any time, in its discretion, apply all or any part of such funds
toward the payment of any such taxes, assessments, charges or premiums which are
past due, together with any penalties or late charges with respect thereto. The
conveyance or transfer of Mortgagor's interest in the Property for any reason
(including without limitation the foreclosure of a subordinate lien or security
interest or a transfer by operation of law) shall constitute an assignment or
transfer of Mortgagor's interest in and rights to such funds held by Mortgagee
under this paragraph but subject to the rights of Mortgagee hereunder.

     (f)  Condemnation.  Mortgagor shall notify Mortgagee immediately of any
          ------------
threatened or pending proceeding for condemnation affecting the Property or
arising out of damage to the Property, and Mortgagor shall, at Mortgagor's
expense, diligently prosecute any such proceedings.  Mortgagee shall have the
right (but not the obligation) to participate in any such proceeding and to be
represented by counsel of its own choice.  Mortgagee shall be entitled to
receive all sums which may be awarded or become payable to Mortgagor for the
condemnation of the Property, or any part thereof, for public or quasi-public
use, or by virtue of private sale in lieu thereof, and any sums which may be
awarded or become payable to Mortgagor for injury or damage to the Property.
Mortgagor shall, promptly upon request of Mortgagee, execute such additional
assignments and other documents as may be necessary from time to time to permit
such participation and to enable Mortgagee to collect and receipt for any such
sums.  All such sums are hereby assigned to Mortgagee, and shall, after
deduction therefrom of all reasonable expenses actually incurred by Mortgagee,
including attorneys' fees, at Mortgagee's option, subject to the terms of
Subsection 2.1(g), below, be (1) released to Mortgagor, or (2) applied (upon
compliance with such terms and conditions as may be required by Mortgagee) to
repair or restoration of the Property so affected, or (3) applied to the payment
of the secured indebtedness in such order and manner as Mortgagee, in its sole
discretion, may elect, whether or not due.  In any event the unpaid portion of
the secured indebtedness shall remain in full force and effect and the payment
thereof shall not be excused.  Mortgagee shall not be, under any circumstances,
liable or responsible for failure to collect or to exercise diligence in the
collection of any such sum or for failure to see to the proper application of
any amount paid over to Mortgagor.  Mortgagee is hereby authorized, in the name
of Mortgagor, to execute and deliver valid acquittances for, and to appeal from,
any such award, judgment or decree.  All costs and expenses (including but not
limited to attorneys' fees) incurred by Mortgagee in connection with any
condemnation shall be a demand obligation owing by Mortgagor (which Mortgagor
hereby promises to pay) to Mortgagee pursuant to this Mortgage.

     (g)  Restoration Advances.
          --------------------

             (i)  Mortgagee agrees that, in the event that all or a portion of
the Improvements are destroyed or damaged by fire, explosion, windstorm, hail or
any other casualty against which insurance is required under this Mortgage, or
in the event that not more than ten percent (10%) of the Land and Improvements
are condemned or taken under power of eminent domain (or transferred in lieu
thereof), Mortgagee will elect (under Subsection 2.1(d) or 2.1(f), as
applicable) to apply the insurance proceeds or condemnation proceeds (or the
proceeds of transfer in lieu thereof)

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which remain after payment of the expenses of collection thereof as provided in
Subsections 2.1(d) and 2.1(f) (called the "Proceeds" below in this Subsection),
                                           --------
or so much thereof as is required, to restoration of the portion of the Property
damaged or taken as nearly as practicable to its value, character and condition
immediately prior to such casualty or taking (the "Restoration"), provided that
                                                   -----------
either (i) no Event of Default shall have occurred and the amount of the
Proceeds is less than One Hundred Thousand Dollars ($100,000), or (ii) all of
the following conditions precedent are satisfied in full not later than ninety
(90) days after the date on which the casualty loss occurs or title to the
portion of the Property taken (or transferred in lieu thereof) vests in the
condemning authority, as the case may be:

               (A) no Event of Default shall have occurred;

               (B) the lessee under the Major Lease or, if such lease is no
longer in effect, all tenants having present or future possessory rights under
Leases (hereinafter defined) covering, in the aggregate, not less than eighty-
five percent (85%) of the net rentable area of the Improvements have agreed in a
manner satisfactory to Mortgagee that their Leases will continue in full force
and effect and, if necessary, the time for taking or regaining possession of the
demised premises under such Leases will be extended by the time necessary to
complete the Restoration;

               (C) all parties having operating, management or franchise
interests in, and arrangements concerning, the Property have agreed that they
will continue their interests and arrangements for the contract terms then in
effect following the Restoration;

               (D) all parties having commitments to provide financing with
respect to the Property, to purchase Mortgagor's interest in full or in part in
the Property or to purchase or pay the loan evidenced by the Note (collectively,
"Commitment Providers") have agreed in a manner satisfactory to Mortgagee that
 --------------------
their commitments will continue in full force and effect and, if necessary, the
expiration of such commitments will be extended by the time necessary to
complete the Restoration;

               (E) in the case of a condemnation, Mortgagor has presented
evidence satisfactory to Mortgagee, and Mortgagee has reasonably determined,
that the remaining portions of the Improvements can feasibly be redesigned and
reconstructed to such a condition that they can be operated for their intended
purposes;

               (F) Mortgagor has presented evidence satisfactory to Mortgagee,
and Mortgagee has reasonably determined, that the Restoration can be
accomplished within a reasonable period of time and in any event prior to the
Maturity Date (as defined in the Note);

               (G) Mortgagor has delivered or caused to be delivered to
Mortgagee, and Mortgagee has approved, complete final plans and specifications
(the "Restoration Plans") for the work to be performed in connection with the
      -----------------
Restoration (hereinafter called the "Restoration Work") prepared and sealed by
                                     ----------------
an architect (the "Architect") acceptable to Mortgagee, with evidence
                   ---------
satisfactory to Mortgagee of the approval of the Restoration Plans by all
Commitment Providers and all governmental authorities and all tenants under
Leases whose approval is required;

PAGE 9
<PAGE>

               (H) Mortgagor has delivered or caused to be delivered to
Mortgagee a signed estimate approved in writing by the Architect, stating the
entire cost of completing the Restoration Work;

               (I) Mortgagor has entered into, and has furnished to Mortgagee a
copy of, a fixed price construction contract satisfactory to Mortgagee, with a
contractor reasonably acceptable to Mortgagee, bonded to the extent required by
Mortgagee, for the Restoration Work;

               (J) if Mortgagee has determined that (i) the projected cost of
the Restoration Work substantially in accordance with the Restoration Plans
exceeds (ii) the available Proceeds held by Mortgagee, then Mortgagor has
deposited with Mortgagee funds sufficient to cover the excess cost;

               (K) Mortgagor has furnished all insurance coverage required by
Mortgagee pursuant to Subsection 2.1 (d), above;

               (L) Mortgagee has determined that it will not incur any liability
to any person as a result of such use of the Proceeds; and

               (M) Mortgagor has demonstrated to Mortgagee, to Mortgagee's
reasonable satisfaction, that the combination of operating income from the
Leases remaining in force plus the proceeds of business interruption insurance
which will be available during the period of the Restoration will be sufficient
to cover the operating expenses of the Premises and debt service on the secured
indebtedness during such period.

If all of the foregoing conditions have not been satisfied within the time limit
specified above, then Mortgagee may, at its option, apply such Proceeds to the
indebtedness secured hereby, whether or not due, in such order and manner as
Mortgagee elects.

         (ii)  To the extent that Mortgagee elects to apply the Proceeds to the
restoration or reconstruction of the Improvements, then disbursement of the
Proceeds for Restoration or Restoration Work shall be subject to and shall be
made in accordance with the customary practices of Mortgagee governing the
disbursement of construction loans.  If Mortgagee determines from time to time
that (i) the estimated cost of the Restoration substantially in accordance with
the Restoration Plans exceeds (ii) the available Proceeds held by Mortgagee plus
all other available funds deposited by Mortgagor with Mortgagee for the purpose
of the Restoration, then Mortgagor shall deposit additional funds with Mortgagee
to cover the excess cost before Mortgagee shall be required to disburse any such
Proceeds or other available funds for Restoration costs.  Any such funds
provided by Mortgagor to cover excess costs shall be used for the costs of
Restoration prior to disbursement of any of the Proceeds for such costs.

         (iii) Any such Proceeds and additional funds provided by Mortgagor
which are held by Mortgagee under this Subsection shall be held by Mortgagee in
an interest-bearing account of Mortgagee's selection until disbursed for
Restoration or otherwise applied as herein provided.  Mortgagee's receipt and
custody of such Proceeds or additional funds shall not constitute a repayment of
any of the indebtedness secured hereby, unless and until such Proceeds or
additional

PAGE 10
<PAGE>

funds are actually applied against the indebtedness secured hereby in accordance
with this Mortgage. No disbursement of such Proceeds for Restoration costs shall
constitute an advance of the loan evidenced by the Note or increase the
principal amount of such loan. If surplus Proceeds remain after completion of
the Restoration and payment of all costs therefor, then such surplus Proceeds
shall be applied against the indebtedness secured hereby in such manner and
order as Mortgagee elects. If surplus funds then remain from additional funds
provided by Mortgagor to cover excess costs of Restoration, then such surplus
funds shall be returned to Mortgagor, provided that no uncured default or Event
of Default shall exist hereunder.

          (iv)  In any event, upon the occurrence of an Event of Default at any
time, Mortgagee may (but has no obligation to) apply all or any portion of such
Proceeds or additional funds provided by Mortgagor in Mortgagee's possession to
the payment of the indebtedness secured hereby, whether or not due, in such
order and manner as Mortgagee elects, and/or to the cure of any Event of Default
without waiving the same.

     (h)  Compliance with Legal Requirements.  The Property and the use,
          ----------------------------------
operation and maintenance thereof and all activities thereon do and shall at all
times comply with all applicable Legal Requirements (defined below).  The
Property is not, and shall not be, dependent on any other property or premises
or any interest therein other than the Property to fulfill any requirement of
any Legal Requirement.  Mortgagor shall not, by act or omission, permit any
building or other improvement not subject to the lien and interest of this
Mortgage to rely on the Property or any interest therein to fulfill any
requirement of any Legal Requirement.  No part of the Property constitutes a
nonconforming use under any zoning law or similar law or ordinance.  Mortgagor
has obtained and shall preserve in force all requisite zoning, utility,
building, health, environmental and operating permits from the governmental
authorities having jurisdiction over the Property.

     If Mortgagor receives a notice or claim from any person that the Property,
or any use, activity, operation or maintenance thereof or thereon, is not in
compliance with any Legal Requirement, Mortgagor will promptly furnish a copy of
such notice or claim to Mortgagee.  Mortgagor has received no notice and has no
knowledge of any such noncompliance.  As used in this Mortgage:  (i) the term
"Legal Requirement" means any Law (defined below), agreement, covenant,
 -----------------
restriction, easement or condition (including, without limitation of the
foregoing, any condition or requirement imposed by any insurance or surety
company applicable to Mortgagor or the Property), as any of the same now exists
or may be changed or amended or come into effect in the future; and (ii) the
term "Law" means any federal, state or local law, statute, ordinance, code,
      ---
rule, regulation, license, permit, authorization, decision, order, injunction or
decree, domestic or foreign applicable to Mortgagor or the Property.

     (i)  Maintenance, Repair and Restoration.  Mortgagor will keep the Property
          -----------------------------------
in first class order, repair, operating condition and appearance, causing all
necessary repairs, renewals, replacements, additions and improvements to be
promptly made, and will not allow any of the Property to be misused, abused or
wasted or to deteriorate.  Notwithstanding the foregoing, Mortgagor will not,
without the prior written consent of Mortgagee, (i) remove from the Property any
fixtures or personal property conveyed or encumbered by this Mortgage except
such as is replaced by Mortgagor by an article of equal suitability and value,
owned by Mortgagor, free and clear of any lien or security interest (except that
created by this Mortgage), or (ii) make any

PAGE 11
<PAGE>

structural alteration to the Property or any other alteration thereto which
impairs the value thereof. If any act or occurrence of any kind or nature
(including any condemnation or any casualty for which insurance was not obtained
or obtainable) shall result in damage to or loss or destruction of the Property,
Mortgagor shall give prompt notice thereof to Mortgagee and Mortgagor shall
promptly, at Mortgagor's sole cost and expense and regardless of whether
insurance or condemnation proceeds (if any) shall be available or sufficient for
the purpose (provided that Mortgagee makes available to Grantor for such purpose
any Proceeds actually received by Mortgagee), commence and continue diligently
to completion to restore, repair, replace and rebuild the Property as nearly as
possible to its value, condition and character immediately prior to the damage,
loss or destruction.

     (j)  No Other Liens.   Mortgagor will not, without the prior written
          --------------
consent of Mortgagee, create, place or permit to be created or placed, or
through any act or failure to act, acquiesce in the placing of, or allow to
remain, any deed of trust, mortgage, voluntary or involuntary lien, whether
statutory, constitutional or contractual, security title, interest, encumbrance
or charge, or conditional sale or other title retention document, against or
covering the Property, or any part thereof, other than the Permitted
Encumbrances, regardless of whether the same are expressly or otherwise
subordinate to the lien or security interest created in this Mortgage, and
should any of the foregoing become attached hereafter in any manner to any part
of the Property without the prior written consent of Mortgagee, Mortgagor will
cause the same to be discharged and released or bonded over within ten (10)
days.  Mortgagor will own all parts of the Property and will not acquire any
fixtures, equipment or other property forming a material part of the Property
pursuant to a lease, license, security agreement or similar agreement, whereby
any party has or may obtain the right to repossess or remove same, without the
prior written consent of Mortgagee.  If Mortgagee consents to the voluntary
grant by Mortgagor of any mortgage, lien, security interest, or other
encumbrance (hereinafter called "Subordinate Lien") conveying or encumbering any
                                 ----------------
of the Property or if the foregoing prohibition is determined by a court of
competent jurisdiction to be unenforceable as to a Subordinate Lien, any such
Subordinate Lien shall contain express covenants to the effect that: (1) the
Subordinate Lien is unconditionally subordinate to this Mortgage and all Leases
(hereinafter defined); (2) if any action (whether judicial or pursuant to a
power of sale) shall be instituted to foreclose or otherwise enforce the
Subordinate Lien, no tenant of any of the Leases (hereinafter defined) shall be
named as a party defendant, and no action shall be taken that would terminate
any occupancy or tenancy without the prior written consent of Mortgagee; (3)
Rents (hereinafter defined), if collected by or for the holder of the
Subordinate Lien, shall be applied first to the payment of the secured
indebtedness then due and expenses incurred in the ownership, operation and
maintenance of the Property in such order as Mortgagee may determine, prior to
being applied to any indebtedness secured by the Subordinate Lien; (4) written
notice of default under the Subordinate Lien and written notice of the
commencement of any action (whether judicial or pursuant to a power of sale) to
foreclose or otherwise enforce the Subordinate Lien or to seek the appointment
of a receiver for all or any part of the Property shall be given to Mortgagee
with or immediately after the occurrence of any such default or commencement;
and (5) neither the holder of the Subordinate Lien, nor any purchaser at
foreclosure thereunder, nor anyone claiming by, through or under any of them
shall succeed to any of Mortgagor's rights hereunder without the prior written
consent of Mortgagee.

PAGE 12
<PAGE>

     (k)  Operation of Property.  Mortgagor will operate the Property in a good
          ---------------------
and workmanlike manner and in accordance with all Legal Requirements and will
pay all fees or charges of any kind in connection therewith.  Mortgagor shall
cause the Property to be managed by Mortgagor or another property manager
acceptable to Mortgagee, under a management agreement satisfactory in all
respects to Mortgagee.  Mortgagee approves Wells Management Company, Inc. as
property manager.  Mortgagor will keep the Property occupied so as not to impair
the insurance carried thereon.  Mortgagor will not use or occupy or conduct any
activity on, or allow the use or occupancy of or the conduct of any activity on,
the Property in any manner which violates any Legal Requirement or which
constitutes a public or private nuisance or which makes void, voidable or
cancelable, or increases the premium of, any insurance then in force with
respect thereto.  Mortgagor will not initiate or permit any zoning
reclassification of the Property or seek any variance under existing zoning
ordinances applicable to the Property or use or permit the use of the Property
in such a manner which would result in such use becoming a nonconforming use
under applicable zoning ordinances or other Legal Requirement.  Mortgagor will
not impose any easement, restrictive covenant or encumbrance upon the Property,
execute or file any subdivision plat or condominium declaration affecting the
Property or consent to the annexation of the Property to any municipality,
without the prior written consent of Mortgagee.  Mortgagor will not do or suffer
to be done any act whereby the value of any part of the Property may be
lessened.  Mortgagor will preserve, protect, renew, extend and retain all
material rights and privileges granted for or applicable to the Property.
Without the prior written consent of Mortgagee, there shall be no drilling or
exploration for or extraction, removal or production of any mineral,
hydrocarbon, gas, natural element, compound or substance (including sand and
gravel) from the surface or subsurface of the Land regardless of the depth
thereof or the method of mining or extraction thereof.  Mortgagor will cause all
debts and liabilities of any character (including without limitation all debts
and liabilities for labor, material and equipment and all debts and charges for
utilities servicing the Property) incurred in the construction, maintenance,
operation and development of the Property to be promptly paid.

     (l)  Financial Matters.  Mortgagor is solvent after giving effect to all
          -----------------
borrowings contemplated by the Loan Documents and no proceeding under any Debtor
Relief Law (hereinafter defined) is pending (or, to Mortgagor's knowledge,
threatened) by or against Mortgagor, or any member of Mortgagor or any guarantor
of the secured indebtedness or any partner of any such guarantor, as a debtor.
All reports, statements, plans, budgets, applications, agreements and other data
and information heretofore furnished or hereafter to be furnished by or on
behalf of Mortgagor to Mortgagee in connection with the loan or loans evidenced
by the Loan Documents (including, without limitation, all financial statements
and financial information) are and will be true, correct and complete in all
material respects as of their respective dates and do not and will not omit to
state any fact or circumstance necessary to make the statements contained
therein not misleading.  No material adverse change has occurred since the dates
of such reports, statements and other data in the financial condition of
Mortgagor or, to Mortgagor's knowledge, of any tenant under any lease described
therein.  For the purposes of this paragraph, "Mortgagor" shall also include any
                                               ---------
person liable for the secured indebtedness or any part thereof.

     (m)  Status of Mortgagor; Suits and Claims; Loan Documents.  Mortgagor (i)
          -----------------------------------------------------
is and will continue to be duly organized, validly existing and in good standing
under the laws of its state of organization, (ii) is or will be within fourteen
(14) days from the date of this Mortgage authorized

PAGE 13
<PAGE>

to do business in, and in good standing in, the state in which the Property is
located, and (iii) is and will continue to be possessed of all requisite power
and authority to carry on its business and to own and operate the Property. Each
Loan Document executed by Mortgagor has been duly authorized, executed and
delivered by Mortgagor, and the obligations thereunder and the performance
thereof by Mortgagor in accordance with their terms are and will continue to be
within Mortgagor's power and authority (without the necessity of joinder or
consent of any other person), are not and will not be in contravention of any
Legal Requirement to which Mortgagor or the Property is subject, and do not and
will not result in the creation of any encumbrance against any assets or
properties of Mortgagor, or any other person liable for any of the secured
indebtedness, except as expressly contemplated by the Loan Documents. Except as
expressly disclosed to Mortgagee in writing, there is no suit, action, claim,
investigation, inquiry, proceeding or demand pending (or, to Mortgagor's
knowledge, threatened) which affects the Property (including, without
limitation, any which challenges or otherwise pertains to Mortgagor's title to
the Property) or the validity, enforceability or priority of any of the Loan
Documents. There is no judicial or administrative action, suit or proceeding
pending (or, to Mortgagor's knowledge, threatened) against Mortgagor, or against
any other person liable for the secured indebtedness, except as has been
disclosed in writing to Mortgagee in connection with the loan evidenced by the
Note. Neither Mortgagor nor any other person liable for the secured indebtedness
nor any partner of any guarantor of the secured indebtedness or any such other
person is involved in any litigation, threatened or existing, against Mortgagee
or any affiliate of Mortgagee. The Loan Documents constitute legal, valid and
binding obligations of Mortgagor (and of each guarantor, if any) enforceable in
accordance with their terms, except as the enforceability thereof may be limited
by Debtor Relief Laws (hereinafter defined) and except as the availability of
certain remedies may be limited by general principles of equity. Mortgagor is
not a "foreign person" within the meaning of the Internal Revenue Code of 1986,
       --------------
as amended, Sections 1445 and 7701 (i.e. Mortgagor is not a non-resident alien,
foreign corporation, foreign partnership, foreign trust or foreign estate as
those terms are defined therein and in any regulations promulgated thereunder).
The loan evidenced by the Note is solely for business purposes, and is not for
personal, family, household or agricultural purposes. Mortgagor will not cause
or permit any change to be made in its name, identity, or corporate or
partnership structure, unless Mortgagor shall have notified Mortgagee of such
change prior to the effective date of such change, and shall have first taken
all action required by Mortgagee for the purpose of further perfecting or
protecting the lien and security interest of Mortgagee in the Property.
Mortgagor's principal place of business and chief executive office, and the
place where Mortgagor keeps its books and records concerning the Property, has
been, since the date of Mortgagor's formation and will continue to be (unless
Mortgagor notifies Mortgagee of any change in writing prior to the date of such
change) the address of Mortgagor set forth at the end of this Mortgage.

     (n) Certain Environmental Matters.
         -----------------------------

         (i)  Definitions.  As used in this Mortgage:  (1) "Environmental Claim"
              -----------                                   -------------------
means any investigative, enforcement, cleanup, removal, containment, remedial or
other governmental or regulatory action at any time threatened, instituted or
completed pursuant to any applicable Environmental Requirement against Mortgagor
or against or with respect to the Property or any use or activity on the
Property, and any claim at any time threatened or made by any person against
Mortgagor or against or with respect to the Property or any use or activity on
the Property, relating

PAGE 14
<PAGE>

to damage, contribution, cost recovery, compensation, loss or injury resulting
from any Hazardous Substance; (2) "Environmental Requirement" means any Legal
                                   -------------------------
Requirement which pertains to ground or air or water or noise pollution or
contamination, underground or aboveground tanks, health or the environment,
including without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended ("CERCLA"), the Resource
                                                     ------
Conservation and Recovery Act of 1976, as amended ("RCRA"), and including,
                                                    ----
without limitation, each and every environmental law, ordinance, rule and
regulation of the State of Illinois and every instrumentality thereof having
jurisdiction over the Property; and (3) "Hazardous Substance" means any
                                         -------------------
substance, whether solid, liquid or gaseous: (a) which is listed, defined or
regulated as a "hazardous substance", "hazardous waste" or "solid waste", or
otherwise classified as hazardous or toxic, in or pursuant to any Environmental
Requirement; or (b) which is or contains asbestos, radon, any polychlorinated
biphenyl, urea formaldehyde foam insulation, or explosive or radioactive
material; or (c) which causes or poses a threat to cause a contamination or
nuisance on the Property or on any adjacent property or a hazard to the
environment or to the health or safety of persons on the Property. As used in
this paragraph (n), the word "on" when used with respect to the Property or
adjacent property means "on, in, under, above or about".

          (ii) Representations and Warranties.  Mortgagor represents and
               ------------------------------
warrants to Mortgagee, without regard to whether Mortgagee has or hereafter
obtains any knowledge or report of the environmental condition of the Property,
as follows: (1) during the period of Mortgagor's ownership of the Property, the
Property will not be used for landfill, dumping or other waste disposal activity
or operation, for generation, storage, use, sale, treatment, processing,
recycling or disposal of any Hazardous Substance, or for any other use that
would give rise to the release of any Hazardous Substance on the Property except
as disclosed in that certain Phase I Environmental Site Assessment, dated August
25, 1999, prepared by Eckland Consultants Inc. for Wells Real Estate Funds
regarding the Property (the "Report"); (2) to the best of Mortgagor's knowledge
                             ------
after inquiry in accordance with good commercial or customary practices, no use
of the Property described in clause (1) preceding occurred at any time prior to
the period of Mortgagor's ownership of the Property nor did any such use on any
adjacent property occur during or at any time prior to the period of Mortgagor's
ownership of the Property, and there is no Hazardous Substance, storage tank (or
similar vessel), sump or well on the Property; (3) Mortgagor has received no
notice and has no knowledge of any Environmental Claim or any completed,
pending, proposed or threatened investigation or inquiry concerning the presence
or release of any Hazardous Substance on the Property or on any adjacent
property or concerning whether any condition, use or activity on the Property or
on any adjacent property is in violation of any Environmental Requirement; (4)
to the best of Mortgagor's knowledge, the present conditions, uses and
activities on the Property do not violate any Environmental Requirement and the
use of the Property which Mortgagor (and each tenant and subtenant, if any)
makes and intends to make of the Property complies and will comply with all
applicable Environmental Requirements; (5) to the best of Mortgagor's knowledge,
the Property is not currently on, and to the best of Mortgagor's knowledge after
inquiry in accordance with good commercial or customary practices, has never
been on, any federal or state "superfund" or "superlien" list; and (6) neither
Mortgagor, nor to Mortgagor's knowledge any tenant or subtenant, has obtained or
is required to obtain any permit or other authorization to construct, occupy,
operate, use or conduct any activity on any of the Property by reason of any
Environmental Requirement except for the following: Waste Generator Permit No.
ILD984843235; Industrial

PAGE 15
<PAGE>

Pretreatment Water Discharge Permit No. WD01921029; and Air Emissions Permit No.
043800AAL.

          (iii)  Violations.  Mortgagor will not cause, commit, permit or allow
                 ----------
to continue any violation of any Environmental Requirement by Mortgagor or by or
with respect to the Property or any use or activity on the Property, or the
attachment of any environmental lien to the Property.  Mortgagor will not place,
install, dispose of or release, or cause, permit or allow the placing,
installation, disposal or release of, any Hazardous Substance or storage tank
(or similar vessel) on the Property and will keep the Property free of any
Hazardous Substance.  Notwithstanding the foregoing provisions of this
Subsection 2(n)(iii), Mortgagor shall not be in default under this Subsection
2(n)(iii) should Mortgagor store minimal quantities of substances on the
Property which technically could be considered Hazardous Substance, provided
                                                                    --------
that: such substances are of a type and are held only in a quantity normally
----
used in connection with the construction, occupancy or operation of comparable
buildings (such as cleaning fluids, and supplies normally used in the day to day
operation of business offices or as specifically described in the Report),  such
substances are being held, stored and used in complete and strict compliance
with all applicable Environmental Requirements, and the indemnity in Section 7
of the Environmental Indemnity Agreement of even date herewith between Mortgagor
and Mortgagee (the "Environmental Indemnity Agreement") and Subsection 2(q)
                    ---------------------------------
hereof shall always apply to such substances, and it shall be and continue to be
the responsibility of Mortgagor to take all remedial actions required under and
in accordance with Section 6 of the Environmental Indemnity Agreement in the
event of any unlawful release of any such substance.

          (iv)   Notice to Mortgagee.  Mortgagor will promptly advise Mortgagee
                 -------------------
in writing of any Environmental Claim or of the discovery of any Hazardous
Substance on the Property, as soon as Mortgagor first obtains knowledge thereof,
including a full description of the nature and extent of the Environmental Claim
and/or Hazardous Substance and all relevant circumstances.

          (v)    Site Assessments and Information.  If Mortgagee shall ever have
                 --------------------------------
reason to believe that any Hazardous Substance affects the Property, or if any
Environmental Claim is made or threatened, or if an Event of Default shall have
occurred, Mortgagor will at its expense provide to Mortgagee from time to time,
in each case within thirty (30) days of Mortgagee's written request, a report
(including all drafts thereof if requested by Mortgagee) of an environmental
assessment of the Property made after the date of Mortgagee's request and of
such scope (including but not limited to the taking of soil borings, air and
groundwater samples and other above and below ground testing) as Mortgagee may
request and by a consulting firm acceptable to Mortgagee.  Mortgagor will
cooperate with each consulting firm making any such assessment and will supply
to the consulting firm, from time to time and promptly on request, all
information available to Mortgagor to facilitate the completion of the
assessment and report.

          (vi)   Remedial Actions.  Without limitation of Mortgagee's rights to
                 ----------------
declare an Event of Default and to exercise all remedies available by reason
thereof, if any Hazardous Substance is discovered on the Property at any time
and regardless of the cause, Mortgagor shall: (1) promptly at Mortgagor's sole
risk and expense remove, treat and dispose of the Hazardous Substance (to the
extent required by applicable Environmental Requirements), in compliance with
all applicable Environmental Requirements and solely under Mortgagor's name

Page 16
<PAGE>

(or if removal is prohibited by any Environmental Requirement, take whatever
action is required by applicable Environmental Requirements), in addition to
taking such other action as is necessary to have the full use and benefit of the
Property as contemplated by the Loan Documents, and provide Mortgagee with
satisfactory evidence thereof; and (2) if requested by Mortgagee, provide to
Mortgagee within thirty (30) days of Mortgagee's request a bond, letter of
credit or other financial assurance evidencing to Mortgagee's satisfaction that
all necessary funds are readily available to pay the costs and expenses of the
actions required by clause (1) preceding and to discharge any assessments or
liens established against the Property as a result of the presence of the
Hazardous Substance on the Property.

     (o) Further Assurances.  Mortgagor will, promptly on the reasonable request
         ------------------
of Mortgagee, (i) correct any defect, error or omission which may be discovered
in the contents, execution or acknowledgment of this Mortgage or any other Loan
Document; (ii) execute, acknowledge, deliver, procure and record and/or file
such further reasonable documents (including, without limitation, further
mortgages, security agreements, financing statements, continuation statements,
and assignments of rents or leases) and do such further acts as may be
necessary, desirable or proper to carry out more effectively the purposes of
this Mortgage and the other Loan Documents, to more fully identify and subject
to the liens and interests hereof any property intended to be covered hereby
(including specifically, but without limitation, any renewals, additions,
substitutions, replacements, or appurtenances to the Property) or as deemed
advisable by Mortgagee to protect the lien or the interest hereunder against the
rights or interests of third persons; and (iii) provide such reasonable
certificates, documents, reports, information, affidavits and other instruments
and do such further acts as may be necessary, desirable or proper in the
reasonable determination of Mortgagee to enable Mortgagee to comply with the
requirements or requests of any agency having jurisdiction over Mortgagee or any
examiners of such agencies with respect to the indebtedness secured hereby,
Mortgagor or the Property.  Mortgagor shall pay all reasonable and actual costs
connected with any of the foregoing, which shall be a demand obligation owing by
Mortgagor (which Mortgagor hereby promises to pay) to Mortgagee pursuant to this
Mortgage.

     (p) Fees and Expenses.  Without limitation of any other provision of this
         -----------------
Mortgage or of any other Loan Document and to the extent not prohibited by
applicable law, Mortgagor will pay, and will reimburse to Mortgagee on demand to
the extent paid by Mortgagee: (i) all appraisal fees, recordation, transfer and
other filing, registration and recording fees, taxes, brokerage fees and
commissions, abstract fees, title search or examination fees, title policy and
endorsement premiums and fees, uniform commercial code search fees (for searches
conducted both prior to and subsequent to the closing of the loan evidenced by
the Loan Documents), escrow fees, reasonable and actual attorneys' fees,
architect fees, construction consultant fees, environmental inspection fees,
survey fees, and all other out-of-pocket costs and expenses of every character
incurred by Mortgagor or Mortgagee in connection with the preparation of the
Loan Documents, the evaluation, closing and funding of the loan evidenced by the
Loan Documents, and any and all amendments and supplements to this Mortgage, the
Note or any other Loan Documents or any approval, consent, waiver, release or
other matter requested or required hereunder or thereunder, or otherwise
attributable or chargeable to Mortgagor as owner of the Property; and (ii) all
costs and expenses, including reasonable attorneys' fees and expenses, incurred
or expended in connection with the

PAGE 17
<PAGE>

exercise of any right or remedy or the enforcement of any obligation of
Mortgagor, hereunder or under any other Loan Document.

     (q)  Indemnification.
          ---------------

          (i)   Mortgagor will indemnify and hold harmless Mortgagee from and
against, and reimburse Mortgagee on demand for, any and all Indemnified Matters
(defined below).  For purposes of this paragraph (q), the term "Mortgagee"
                                                                ---------
shall include the directors, officers, partners, employees and agents of
Mortgagee and any persons owned or controlled by, owning or controlling, or
under common control or affiliated with Mortgagee.  Without limitation, the
foregoing indemnities shall apply to each indemnified person with respect to
matters which in whole or in part are caused by or arise out of the negligence
of such (and/or any other) indemnified person.  However, such indemnities shall
not apply to a particular indemnified person to the extent that the subject of
the indemnification is caused by or arises out of the gross negligence or
willful misconduct of that indemnified person.  Any amount to be paid under this
paragraph (q) by Mortgagor to Mortgagee shall be a demand obligation owing by
Mortgagor (which Mortgagor hereby promises to pay) to Mortgagee pursuant to this
Mortgage.  Nothing in this paragraph, elsewhere in this Mortgage or in any other
Loan Document shall limit or impair any rights or remedies of Mortgagee
(including without limitation any rights of contribution or indemnification)
against Mortgagor or any other person under any other provision of this
Mortgage, any other Loan Document, any other agreement or any applicable Legal
Requirement.

          (ii)  As used herein, the term "Indemnified Matters" means any and all
                                          -------------------
claims, demands, liabilities (including strict liability), losses, damages
(including consequential damages), causes of action, judgments, penalties, costs
and expenses (including without limitation, reasonable and actual fees and
expenses of attorneys and other professional consultants and experts, and of the
investigation and defense of any claim, whether or not such claim is ultimately
defeated, and the settlement of any claim or judgment including all value paid
or given in settlement) of every kind, known or unknown, foreseeable or
unforeseeable, which may be imposed upon, asserted against or incurred or paid
by Mortgagee at any time and from time to time, whenever imposed, asserted or
incurred, because of, resulting from, in connection with, or arising out of any
transaction, act, omission, event or circumstance in any way connected with the
Property or with this Mortgage or any other Loan Document, including but not
limited to any bodily injury or death or property damage occurring in or upon or
in the vicinity of the Property, any act performed or omitted to be performed
hereunder or under any other Loan Document, any breach by Mortgagor of any
representation, warranty, covenant, agreement or condition contained in this
Mortgage or in any other Loan Document, any default as defined herein or any
claim under or with respect to any Lease (hereinafter defined) or any
Environmental Matter (hereinafter defined), through any cause whatsoever at any
time on or before the Release Date.  As used herein, the term "Environmental
                                                               -------------
Matter" means:  (a) the presence of any Hazardous Substance on, in, under, above
------
or about the Property, or the migration or release or threatened migration or
release of any Hazardous Substance on, to, from or through the Property, on or
at any time before the Release Date; or (b) any act, omission, event or
circumstance existing or occurring in connection with the handling, treatment,
containment, removal, storage, decontamination, clean-up, transport or disposal
of any Hazardous Substance which is at any time on or before the Release Date
present on, in, under, above or about the Property; or (c) any violation on or
before the Release Date, of any Environmental Requirement

PAGE 18
<PAGE>

in effect on or before the Release Date, regardless of whether any act,
omission, event or circumstance giving rise to the violation constituted a
violation at the time of the occurrence or inception of such act, omission,
event or circumstance; or (d) any Environmental Claim, or the filing or
imposition of any environmental lien against the Property, because of, resulting
from, in connection with, or arising out of any of the matters referred to in
clauses (a) through (c) preceding; and regardless of whether any of the matters
referred to in the foregoing clauses (a) through (d) was caused by Mortgagor or
Mortgagor's tenant or any subtenant, or a prior owner of the Property or its
tenant or any subtenant, or any third party. Without limitation of the
definition of Indemnified Matters herein, Mortgagor's indemnification
obligations regarding any Environmental Matter shall include injury or damage to
any person, property or natural resource occurring upon or off of the Property
(including but not limited to the cost of demolition and rebuilding of any
improvements on real property), the preparation of any feasibility studies or
reports and the performance of any cleanup, remediation, removal, response,
abatement, containment, closure, restoration, monitoring or similar work
required by any Environmental Requirement or necessary to have the full use and
benefit of the Property as contemplated by the Loan Documents (including,
without limitation, any of the same in connection with any foreclosure or
transfer in lieu thereof), and all liability to pay or indemnify any person for
costs in connection with any of the foregoing. The term "Release Date" as used
                                                         ------------
herein means the earlier of the following two dates: (i) the date on which the
indebtedness and obligations secured hereby have been paid and performed in full
and this Mortgage has been cancelled and satisfied of record, or (ii) the date
on which the lien of this Mortgage is fully and finally foreclosed or a
conveyance by deed in lieu of such foreclosure is fully and finally effective,
and possession of the Property has been given to the purchaser or grantee free
of occupancy and claims to occupancy by Mortgagor and Mortgagor's heirs,
devisees, representatives, successors and assigns; provided, that if such
payment, performance, release, foreclosure or conveyance is challenged, in
bankruptcy proceedings or otherwise, the Release Date shall be deemed not to
have occurred until such challenge is rejected, dismissed or withdrawn with
prejudice. The indemnities in this paragraph (q) shall not terminate upon the
Release Date or upon the cancellation, satisfaction, foreclosure or other
termination of this Mortgage but will survive the Release Date, foreclosure of
this Mortgage or conveyance in lieu of foreclosure, the repayment of the secured
indebtedness, the discharge, cancellation and satisfaction of this Mortgage and
the other Loan Documents, any bankruptcy or other debtor relief proceeding, and
any other event whatsoever.

     (r)  Records and Financial Reports.  Mortgagor will keep accurate books and
          -----------------------------
records in accordance with sound accounting principles in which full, true and
correct entries shall be promptly made with respect to the Property and the
operation thereof, and will permit all such books and records to be inspected
and copied, and the Property to be inspected and photographed, by Mortgagee and
its representatives during normal business hours and at any other reasonable
times.  Mortgagor will furnish to Mortgagee at Mortgagor's expense all evidence
which Mortgagee may from time to time reasonably request as to compliance with
all provisions of the Loan Documents.  Any inspection or audit of the Property
or the books and records of Mortgagor, or the procuring of documents and
financial and other information, by or on behalf of Mortgagee shall be for
Mortgagee's protection only, and shall not constitute any assumption of
responsibility to Mortgagor or anyone else with regard to the condition,
construction, maintenance or operation of the Property nor Mortgagee's approval
of any certification given to Mortgagee nor relieve Mortgagor of any of
Mortgagor's obligations.  Upon the prior written approval of Mortgagor, which
approval shall not be unreasonably withheld or delayed and which approval shall
not be required

PAGE 19
<PAGE>

with respect to an assignment or grant of a participation to an affiliate of
Mortgagee, Mortgagee may, from time to time, sell or offer to sell the Loan, or
interests therein, to one or more assignees or participants and is hereby
authorized to disseminate any information it now has or hereafter obtains
pertaining to the secured indebtedness, including, without limitation, any
security for the secured indebtedness and credit or other information on the
Premises, Mortgagor, any of its principals and any guarantor, to any assignee or
participant or prospective assignee or prospective participant, to Mortgagee's
affiliates, including without limitation Banc of America Securities LLC, to any
regulatory body having jurisdiction over Mortgagee and to any other parties as
necessary or appropriate in Mortgagee's reasonable judgment. Mortgagor shall
execute, acknowledge and deliver any and all instruments reasonably requested by
Mortgagee in connection therewith and to the extent, if any, specified in any
such assignment or participation, such companies, assignees or participants
shall have the rights and benefits with respect to the secured indebtedness as
such persons would have if such persons were Mortgagee hereunder.

     (s)  Financial Statements.  Mortgagor shall provide or cause to be provided
          --------------------
to Mortgagee the following:

          (i)   Financial Statements (hereinafter defined) of Mortgagor for each
fiscal year of Mortgagor, as soon as reasonably practicable and in any event
within one hundred twenty (120) days after the close of each fiscal year.

          (ii)  Financial Statements of each guarantor of the secured
indebtedness for each fiscal year of such guarantor, as soon as reasonably
practicable and in any event within one hundred twenty (120) days after the
close of each fiscal year, and Financial Statements for each calendar quarter of
each such guarantor, as soon as reasonably practicable and in any event within
forty-five (45) days after the close of each such calendar quarter.

          (iii) With respect to the operation of the Property:

                (A)  Prior to the beginning of each fiscal year of Mortgagor, a
capital and operating budget for the Property, and

                (B)  For each quarter (and for the fiscal year through the end
of that quarter) (1) a statement of all income and expenses in connection with
the Property, and (2) a current leasing status report in form satisfactory to
Mortgagee, including in each case a comparison to the budget, as soon as
reasonably practicable but in any event within forty-five (45) days after the
end of each such quarter, certified in writing as true and correct by a
representative of Mortgagor satisfactory to Mortgagee. Items provided under this
paragraph (iii) shall in form and detail satisfactory to Mortgagee.

          (iv)  From time to time promptly after Mortgagee's request, such
additional information, reports, and statements respecting the business
operations and financial condition of each Reporting Party (hereinafter defined)
as Mortgagee may reasonably request.

For the purposes of this Mortgage, the term "Financial Statements" means a
                                             --------- ----------
balance sheet, income statement, statements of cash flow and amount and sources
of contingent liabilities, and a

PAGE 20
<PAGE>

reconciliation of changes in equity, and, unless Mortgagee otherwise consents,
consolidated and consolidating statements if the Reporting Party is a holding
company or a parent of a subsidiary entity. Each party for whom Financial
Statements are required is a "Reporting Party." All Financial Statements shall
                              ---------------
be in form and detail reasonably satisfactory to Mortgagee and shall contain or
be attached to the signed and dated written certification of the Reporting Party
in form specified by Mortgagee to certify that the Financial Statements are
furnished to Mortgagee in connection with the extension of credit by Mortgagee
and constitute a true and correct statement of the Reporting Party's financial
condition. All certifications and signatures shall be by a representative of the
Reporting Party satisfactory to Mortgagee. All fiscal year-end Financial
Statements of any guarantor (other than consolidating statements) shall be
audited and certified, without any qualification or exception not acceptable to
Mortgagee, by independent certified accountants acceptable to Mortgagee, and
shall contain all reports and disclosures required by generally accepted
accounting principles for a fair presentation.

     (t) Taxes on Note or Mortgage.  Mortgagor will promptly pay all income,
         -------------------------
franchise and other taxes owing by Mortgagor and any stamp, documentary,
recordation and transfer taxes or other taxes (unless such payment by Mortgagor
is prohibited by law) which may be required to be paid with respect to the Note,
this Mortgage or any other instrument evidencing or securing any of the secured
indebtedness.  In the event of the enactment after this date of any law of any
governmental entity applicable to Mortgagee, the Note, the Property or this
Mortgage deducting from the value of property for the purpose of taxation any
lien or interest thereon, or imposing upon Mortgagee the payment of the whole or
any part of the taxes or assessments or charges or liens herein required to be
paid by Mortgagor, or changing in any way the laws relating to the taxation of
mortgages or security agreements or debts secured by mortgages or security
agreements or the interest of the mortgagee or secured party in the property
covered thereby, or the manner of collection of such taxes, so as to affect this
Mortgage or the indebtedness secured hereby or Mortgagee, then, and in any such
event, Mortgagor, upon demand by Mortgagee, shall pay such taxes, assessments,
charges or liens, or reimburse Mortgagee therefor; provided, however, that if in
the opinion of counsel for Mortgagee (i) it might be unlawful to require
Mortgagor to make such payment or (ii) the making of such payment might result
in the imposition of interest beyond the maximum amount permitted by law, then
and in such event, Mortgagee may elect, by notice in writing given to Mortgagor,
to declare all of the indebtedness secured hereby to be and become due and
payable one hundred eighty (180) days from the giving of such notice.

     (u) Statement Concerning Note or Mortgage.  Mortgagor shall at any time and
         -------------------------------------
from time to time furnish within seven (7) days of request by Mortgagee a
written statement in such form as may be required by Mortgagee stating that (i)
the Note, this Mortgage and the other Loan Documents are valid and binding
obligations of Mortgagor, enforceable against Mortgagor in accordance with their
terms; (ii) the unpaid principal balance of the Note; (iii) the date to which
interest on the Note is paid; (iv) the Note, this Mortgage and the other Loan
Documents have not been released, subordinated or modified; and (v) there are no
offsets or defenses against the enforcement of the Note, this Mortgage or any
other Loan Document.  If any of the foregoing statements are untrue, Mortgagor
shall, alternatively, specify the reasons therefor.

     (v) Annual Appraisal.  Mortgagee may at its option obtain at Mortgagor's
         ----------------
expense, once in each year (or as otherwise requested by Mortgagee) an appraisal
of the Property or any part

PAGE 21
<PAGE>

thereof prepared in accordance with written instructions from Mortgagee by a
third-party appraiser engaged directly by Mortgagee. Each such appraiser and
appraisal shall be satisfactory to Mortgagee. The costs of each such appraisal
shall be a part of the secured indebtedness and shall be payable by Mortgagor to
Mortgagee on demand (which obligation Mortgagor hereby promises to pay).

     (w) Real Estate Operating Company.  In the event that any interest in any
         -----------------------------
entity liable for the secured indebtedness shall be owned by, conveyed to or
otherwise acquired by a pension fund (which conveyance or acquisition shall be
subject to the prior written consent of Mortgagee), Mortgagor shall cause such
entity to qualify, and at all times during the term of the loan evidenced by the
Note remain qualified, as a Real Estate Operating Company within the meaning of
Section 2510.3 - 101(e) of Title 29 of the Code of Federal Regulations.

     Section 2.2.  Performance by Mortgagee on Mortgagor's Behalf.  Mortgagor
                   ----------------------------------------------
agrees that, if Mortgagor fails to perform any act or to take any action which
under any Loan Document Mortgagor is required to perform or take, or to pay any
money which under any Loan Document Mortgagor is required to pay, and whether or
not the failure then constitutes an Event of Default hereunder or thereunder,
and whether or not there has occurred any Event of Default hereunder or the
secured indebtedness has been accelerated, Mortgagee, in Mortgagor's name or its
own name, may, but shall not be obligated to, perform or cause to be performed
such act or take such action or pay such money, and any expenses so incurred by
Mortgagee and any money so paid by Mortgagee shall be a demand obligation owing
by Mortgagor to Mortgagee (which obligation Mortgagor hereby promises to pay),
shall be a part of the indebtedness secured hereby, and Mortgagee, upon making
such payment, shall be subrogated to all of the rights of the person, entity or
body politic receiving such payment.  Mortgagee and its designees shall have the
right to enter upon the Property at any time and from time to time for any such
purposes.  No such payment or performance by Mortgagee shall waive or cure any
Event of Default or waive any right, remedy or recourse of Mortgagee.  Any such
payment may be made by Mortgagee in reliance on any statement, invoice or claim
without inquiry into the validity or accuracy thereof.  Each amount due and
owing by Mortgagor to Mortgagee pursuant to this Mortgage shall bear interest,
from the date such amount becomes due until paid, at the rate per annum provided
in the Note for interest on past due principal owed on the Note but never in
excess of the maximum nonusurious amount permitted by applicable law, which
interest shall be payable to Mortgagee on demand; and all such amounts, together
with such interest thereon, shall automatically and without notice be a part of
the indebtedness secured hereby.  The amount and nature of any expense by
Mortgagee hereunder and the time when paid shall be fully established by the
certificate of Mortgagee or any of Mortgagee's officers or agents.

     Section 2.3.  Absence of Obligations of Mortgagee with Respect to Property.
                   ------------------------------------------------------------
Notwithstanding anything in this Mortgage to the contrary, including, without
limitation, the definition of "Property" and/or the provisions of Article 3
hereof, (i) to the extent permitted by applicable law, the Property is composed
of Mortgagor's rights, title and interests therein but not Mortgagor's
obligations, duties or liabilities pertaining thereto, (ii) Mortgagee neither
assumes nor shall have any obligations, duties or liabilities in connection with
any portion of the items described in the definition of "Property" herein,
either prior to or after obtaining title to such Property, whether by
foreclosure sale, the granting of a deed in lieu of foreclosure or otherwise,
and (iii)

PAGE 22
<PAGE>

Mortgagee may, at any time prior to or after the acquisition of title to any
portion of the Property as above described, advise any party in writing as to
the extent of Mortgagee's interest therein and/or expressly disaffirm in writing
any rights, interests, obligations, duties and/or liabilities with respect to
such Property or matters related thereto. Without limiting the generality of the
foregoing, it is understood and agreed that Mortgagee shall have no obligations,
duties or liabilities prior to or after acquisition of title to any portion of
the Property, as lessee under any lease or purchaser or seller under any
contract or option unless Mortgagee elects otherwise by written notification.

                  ARTICLE 3 -  Assignment of Rents and Leases
                               ------------------------------

     Section 3.1.  Assignment.  Mortgagor hereby assigns to Mortgagee all Rents
                   ----------
(hereinafter defined) and all of Mortgagor's rights in and under all Leases
(hereinafter defined).  So long as no Event of Default (hereinafter defined) has
occurred, Mortgagor shall have a license (which license shall terminate
automatically and without further notice upon the occurrence of an Event of
Default) to collect, but not prior to accrual, the Rents under the Leases and,
where applicable, subleases, such Rents to be held in trust for Mortgagee, and
to otherwise deal with all Leases as permitted by this Mortgage.  Each month,
provided no Event of Default has occurred, such Rents shall be released from the
trust and Mortgagor may retain such Rents as were collected that month and may
use and enjoy the same and may distribute the same to its members.  Upon the
revocation of such license, all Rents then held in trust or thereafter collected
shall be paid directly to Mortgagee and not through the Mortgagor, all without
the necessity of any further action by Mortgagee, including, without limitation,
any action to obtain possession of the Land, Improvements or any other portion
of the Property or any action for the appointment of a receiver.  Mortgagor
hereby authorizes and directs the tenants under the Leases to pay Rents to
Mortgagee upon written demand by Mortgagee, without further consent of
Mortgagor, without any obligation of such tenants to determine whether an Event
of Default has in fact occurred and regardless of whether Mortgagee has taken
possession of any portion of the Property, and the tenants may rely upon any
written statement delivered by Mortgagee to the tenants. Any such payments to
Mortgagee shall constitute payments to Mortgagor under the Leases, and Mortgagor
hereby irrevocably appoints Mortgagee as its attorney-in-fact to do all things
which Mortgagor might otherwise do with respect to the Property and the Leases
thereon, including, without limitation, (i) collecting Rents with or without
suit and applying the same, less expenses of collection, to any of the
obligations secured hereunder or to expenses of operating and maintaining the
Property (including reasonable reserves for anticipated expenses), at the option
of the Mortgagee, all in such manner as may be determined by Mortgagee, or, at
the option of Mortgagee, holding the same as security for the payment of all
obligations secured hereunder, (ii) leasing, in the name of Mortgagor, the whole
or any part of the Property which may become vacant, and (iii) employing agents
therefor and paying such agents reasonable compensation for their services;
provided, however, that Mortgagee shall not exercise such rights as attorney-in-
fact until there occurs an Event of Default under the terms of the Note or this
Mortgage.  The curing of such Event of Default, unless other Events of Default
also then exist, shall entitle Mortgagor to recover its aforesaid license to do
any such things which Mortgagor might otherwise do with respect to the Property
and the Leases thereon and to again collect such Rents.  The powers and rights
granted in this paragraph shall be in addition to the other remedies herein
provided for upon the occurrence of an Event of Default and may be exercised
independently of or concurrently with any of said remedies.  Nothing in the
foregoing shall be construed to impose any obligation upon Mortgagee to

PAGE 23
<PAGE>

exercise any power or right granted in this paragraph or to assume any liability
under any Lease of any part of the Property and no liability shall attach to
Mortgagee for failure or inability to collect any Rents under any such Lease.
The assignment contained in this Section shall become null and void upon the
release of this Mortgage. As used herein: (i) "Lease" means the Major Lease and
                                               -----
each existing or future lease, sublease (to the extent of Mortgagor's rights
thereunder) or other agreement under the terms of which any person has or
acquires any right to occupy or use the Property, or any part thereof, or
interest therein, and each existing or future guaranty of payment or performance
thereunder, and all extensions, renewals, modifications and replacements of each
such lease, sublease, agreement or guaranty; and (ii) "Rents" means all of the
                                                       -----
rents, revenue, income, profits and proceeds derived and to be derived from the
Property or arising from the use or enjoyment of any portion thereof or from any
Lease, including but not limited to liquidated damages following default under
any such Lease, all proceeds payable under any policy of insurance covering loss
of rents resulting from untenantability caused by damage to any part of the
Property, all of Mortgagor's rights to recover monetary amounts from any tenant
in bankruptcy including, without limitation, rights of recovery for use and
occupancy and damage claims arising out of Lease defaults, including rejections,
under any applicable Debtor Relief Law (hereinafter defined), together with any
sums of money that may now or at any time hereafter be or become due and payable
to Mortgagor by virtue of any and all royalties, overriding royalties, bonuses,
delay rentals and any other amount of any kind or character arising under any
and all present and all future oil, gas, mineral and mining leases covering the
Property or any part thereof, and all proceeds and other amounts paid or owing
to Mortgagor under or pursuant to any and all contracts and bonds relating to
the construction or renovation of the Property.

     Section 3.2.  Covenants, Representations and Warranties Concerning Leases
                   -----------------------------------------------------------
and Rents.  Mortgagor covenants, represents and warrants that:  (a) Mortgagor
---------
has good title to, and is the owner of the entire landlord's interest in, the
Leases and Rents hereby assigned and has authority to assign them; (b) to the
best of Mortgagor's knowledge after due inquiry, all Leases are valid and
enforceable, and in full force and effect, and are unmodified except as stated
therein; (c) except as expressly disclosed to Mortgagee in writing, neither
Mortgagor nor, to the best of Mortgagor's knowledge after due inquiry, any
tenant in the Property is in default under its Lease (and to the best of
Mortgagor's knowledge no event has occurred which with the passage of time or
notice or both would result in a default under its Lease) or is the subject of
any bankruptcy, insolvency or similar proceeding; (d) unless otherwise stated in
a Permitted Encumbrance, no Rents or Leases  have been or will be assigned,
mortgaged, pledged or otherwise encumbered and no other person has or will
acquire any right, title or interest in such Rents or Leases; (e) to the best of
Mortgagor's knowledge after due inquiry, no Rents have been waived, released,
discounted, set off or compromised; (f) except as stated in the Leases,
Mortgagor has not received any funds or deposits from any tenant for which
credit has not already been made on account of accrued Rents; (g) Mortgagor
shall perform all of its obligations under the Leases and enforce the tenants'
obligations under the Leases to the extent enforcement is prudent under the
circumstances; (h) Mortgagor will not without the prior written consent of
Mortgagee, enter into any Lease after the date hereof, or waive, release,
discount, set off, compromise, reduce or defer any Rent, receive or collect
Rents more than one (1) month in advance, grant any rent-free period to any
tenant, reduce any Lease term or waive, release or otherwise modify any other
material obligation under any Lease, renew or extend any Lease except in
accordance with a right of the tenant thereto in such Lease, approve or consent
to an assignment of a Lease or a subletting of any part of the premises covered
by a Lease, or settle or compromise

PAGE 24
<PAGE>

any claim against a tenant under a Lease in bankruptcy or otherwise; (i)
Mortgagor will not, except in good faith where the tenant is in material default
thereunder, terminate or consent to the cancellation or surrender of any Lease
having an unexpired term of more than one year unless promptly after the
cancellation or surrender a new Lease of such premises is made with a new tenant
having a credit standing, in Mortgagee's judgment, at least equivalent to that
of the tenant whose Lease was cancelled, on substantially the same terms as the
terminated or cancelled Lease; (j) Mortgagor will not execute any Lease except
in accordance with the Loan Documents and for actual occupancy by the tenant
thereunder; (k) Mortgagor shall give prompt notice to Mortgagee, as soon as
Mortgagor first obtains notice, of any claim, or the commencement of any action,
by any tenant or subtenant under or with respect to a Lease regarding any
claimed damage, default, diminution of or offset against Rent, cancellation of
the Lease, or constructive eviction, excluding, however, notices of default
under residential Leases, and Mortgagor shall defend, at Mortgagor's expense,
any proceeding pertaining to any Lease, including, if Mortgagee so requests, any
such proceeding to which Mortgagee is a party; (l) Mortgagor shall as often as
requested by Mortgagee, within ten (10) days of each request, deliver to
Mortgagee a complete rent roll of the Property in such detail as Mortgagee may
require and financial statements of the tenants, subtenants and guarantors under
the Leases to the extent available to Mortgagor, and deliver to such of the
tenants and others obligated under the Leases specified by Mortgagee written
notice of the assignment in Section 3.1 hereof in form and content satisfactory
to Mortgagee; (m) promptly upon request by Mortgagee, Mortgagor shall deliver to
Mortgagee executed originals of all Leases and copies of all records relating
thereto; (n) there shall be no merger of the leasehold estates, created by the
Leases, with the fee estate of the Land without the prior written consent of
Mortgagee; and (o) Mortgagee may at any time and from time to time by specific
written instrument intended for the purpose, unilaterally subordinate the lien
of this Mortgage to any Lease, without joinder or consent of, or notice to,
Mortgagor, any tenant or any other person, and notice is hereby given to each
tenant under a Lease of such right to subordinate. No such subordination shall
constitute a subordination to any lien or other encumbrance, whenever arising,
or improve the right of any junior lienholder; and nothing herein shall be
construed as subordinating this Mortgage to any Lease.

     Section 3.3.  Estoppel Certificates; Subordination, Non-Disturbance and
                   ---------------------------------------------------------
Attornment Agreements.  All new Leases shall require the tenant to execute and
---------------------
deliver to Mortgagee an estoppel certificate and a subordination, non-
disturbance and attornment agreement in form and substance acceptable to
Mortgagee within ten (10) days after notice from the Mortgagee.

     Section 3.4.  No Liability of Mortgagee.  Mortgagee's acceptance of this
                   -------------------------
assignment shall not be deemed to constitute Mortgagee a "mortgagee in
possession," nor obligate Mortgagee to appear in or defend any proceeding
relating to any Lease or to the Property, or to take any action hereunder,
expend any money, incur any expenses, or perform any obligation or liability
under any Lease, or assume any obligation for any deposit delivered to Mortgagor
by any tenant and not as such delivered to and accepted by Mortgagee.  Mortgagee
shall not be liable for any injury or damage to person or property in or about
the Property, unless caused solely by Mortgagee's gross negligence or wilful
misconduct, or for Mortgagee's failure to collect or to exercise diligence in
collecting Rents, but shall be accountable only for Rents that it shall actually
receive.  Neither the assignment of Leases and Rents nor enforcement of
Mortgagee's rights regarding Leases and Rents (including collection of Rents)
nor possession of the Property by Mortgagee nor Mortgagee's consent to or
approval of any Lease (nor all of the same), shall render Mortgagee liable on
any

PAGE 25
<PAGE>

obligation under or with respect to any Lease or constitute affirmation of,
or any subordination to, any Lease, occupancy, use or option.

If Mortgagee seeks or obtains any judicial relief regarding Rents or Leases, the
same shall in no way prevent the concurrent or subsequent employment of any
other appropriate rights or remedies nor shall same constitute an election of
judicial relief for any foreclosure or any other purpose.  Mortgagee neither has
nor assumes any obligations as lessor or landlord with respect to any Lease.
The rights of Mortgagee under this Article 3 shall be cumulative of all other
rights of Mortgagee under the Loan Documents or otherwise.

                              ARTICLE 4 - Default
                                          -------

     Section 4.1.  Events of Default.  The occurrence of any one of the
                   -----------------
following shall be a default under this Mortgage ("default"):
                                                   -------

     (a)  Failure to Pay Indebtedness.  Any of the secured indebtedness is not
          ---------------------------
paid when due, regardless of how such amount may have become due.

     (b)  Nonperformance of Covenants.  Any covenant, agreement or condition
          ---------------------------
herein or in any other Loan Document (other than covenants otherwise addressed
in another paragraph of this Section, such as covenants to pay the secured
indebtedness) is not fully and timely performed, observed or kept, and such
failure is not cured within the applicable grace or cure period provided for in
Section 4.2 hereof.

     (c)  Representations.  Any statement, representation or warranty in any of
          ---------------
the Loan Documents, or in any financial statement or any other writing
heretofore or hereafter delivered to Mortgagee in connection with the secured
indebtedness is false, misleading or erroneous in any material respect on the
date hereof or on the date as of which such statement, representation or
warranty is made.

     (d)  Bankruptcy or Insolvency.  The owner of the Property or any person
          ------------------------
liable for any of the secured indebtedness (or any general partner of such owner
or other person):

          (i)  (A) Executes an assignment for the benefit of creditors, or takes
any action in furtherance thereof; or (B) admits in writing its inability to
pay, or fails to pay, its debts generally as they become due; or (C) as a
debtor, files a petition, case, proceeding or other action pursuant to, or
voluntarily seeks the benefit or benefits of, Title 11 of the United States Code
as now or hereafter in effect or any other law, domestic or foreign, as now or
hereafter in effect relating to bankruptcy, insolvency, liquidation,
receivership, reorganization, arrangement, composition, extension or adjustment
of debts, or similar laws affecting the rights of creditors (Title 11 of the
United States Code and such other laws being herein called "Debtor Relief
                                                            -------------
Laws"), or takes any action in furtherance thereof; or (D) seeks the appointment
----
of a receiver, trustee, custodian or liquidator of the Property or any part
thereof or of any significant portion of its other property; or

          (ii) Suffers the filing of a petition, case, proceeding or other
action against it as a debtor under any Debtor Relief Law or seeking appointment
of a receiver, trustee, custodian or

PAGE 26
<PAGE>

liquidator of the Property or any part thereof or of any significant portion of
its other property, and (A) admits, acquiesces in or fails to contest diligently
the material allegations thereof, or (B) the petition, case, proceeding or other
action results in entry of any order for relief or order granting relief sought
against it, or (C) in a proceeding under the Federal Bankruptcy Code, the case
is converted from one chapter to another, or (D) fails to have the petition,
case, proceeding or other action permanently dismissed or discharged on or
before the earlier of trial thereon or sixty (60) days next following the date
of its filing; or

          (iii)  Conceals, removes, or permits to be concealed or removed, any
part of its property, with intent to hinder, delay or defraud its creditors or
any of them, or makes or suffers a transfer of any of its property which may be
fraudulent under any bankruptcy, fraudulent conveyance or similar law; or makes
any transfer of its property to or for the benefit of a creditor at a time when
other creditors similarly situated have not been paid; or suffers or permits,
while insolvent, any creditor to obtain a lien (other than as described in
subparagraph (iv) below) upon any of its property through legal proceedings
which are not vacated and such lien discharged prior to enforcement thereof and
in any event within sixty (60) days from the date thereof; or

          (iv)   Fails to have discharged within a period of thirty (30) days
any attachment, sequestration, or similar writ levied upon any of its property;
or

          (v)    Fails to pay immediately, or immediately post a satisfactory
bond against, any final money judgment against it.

     (e)  Transfer of the Property.  There occurs any sale, lease, conveyance,
          ------------------------
assignment, pledge, encumbrance, or transfer of all or any part of the Property
or any interest therein, voluntarily or involuntarily, whether by operation of
law or otherwise, except: (i) sales or transfers of items of the Accessories
which have become obsolete or worn beyond practical use and which have been
replaced by adequate substitutes, owned by Mortgagor, having a value equal to or
greater than the replaced items when new; and (ii) the grant, in the ordinary
course of business, of a leasehold interest in a part of the Improvements to a
tenant for occupancy, not containing a right or option to purchase and not in
contravention of any provision of this Mortgage or of any other Loan Document.
Mortgagee may, in its sole discretion, waive a default under this paragraph, but
it shall have no obligation to do so, and any waiver may be conditioned upon
such one or more of the following (if any) which Mortgagee may require: the
grantee's integrity, reputation, character, creditworthiness and management
ability being satisfactory to Mortgagee in its sole judgment and such grantee's
executing, prior to such sale or transfer, a written assumption agreement
containing such terms as Mortgagee may require, a principal paydown on the Note,
an increase in the rate of interest payable under the Note, a transfer fee, a
modification of the term of the Note, and any other modification of the Loan
Documents which Mortgagee may require.

     (f)  Transfer of Ownership of Mortgagor.  There occurs any sale, pledge,
          ----------------------------------
encumbrance, assignment or transfer, voluntarily or involuntarily, whether by
operation of law or otherwise, of any interest in Mortgagor or any other entity
liable for any of the secured indebtedness, without the prior written consent of
Mortgagee (including, without limitation, the withdrawal from or admission into
Mortgagor or any such other entity of any member).

PAGE 27
<PAGE>

     (g)  Grant of Easement, Etc.  Without the prior written consent of
          -----------------------
Mortgagee, Mortgagor grants any easement or dedication, files any plat,
condominium declaration, or restriction, or otherwise encumbers the Property, or
seeks or permits any zoning reclassification or variance, unless such action is
expressly permitted by the Loan Documents or does not affect the Property.

     (h)  Abandonment.  The owner of the Property abandons any of the Property.
          -----------

     (i)  Default Under Other Lien.  A default or event of default occurs under
          ------------------------
any lien, security interest or assignment covering the Property or any part
thereof (whether or not Mortgagee has consented, and without hereby implying
Mortgagee's consent, to any such lien, security interest or assignment not
created hereunder) and such default or event of default is not cured within the
time (if any) permitted in such lien, security interest or assignment, or the
holder of any such lien, security interest or assignment declares a default or
institutes foreclosure or other proceedings for the enforcement of its remedies
thereunder.

     (j)  Destruction.  Subject to Subparagraph (g) of Section 2.1, the Property
          -----------
is so demolished, destroyed or damaged that, in the reasonable opinion of
Mortgagee, it cannot be restored or rebuilt with available funds to a profitable
condition within a reasonable period of time and in any event prior to the final
maturity date of the Note.

     (k)  Condemnation.  Subject to Subparagraph (g) of Section 2.1, (i) any
          ------------
governmental authority shall require, or commence any proceeding for, the
demolition of any building or structure comprising a material portion of the
Premises (which for these purposes, shall mean more than ten percent (10%) of
the Land and Improvements), or (ii) there is commenced any proceeding to condemn
or otherwise take pursuant to the power of eminent domain, or a contract for
sale or a conveyance in lieu of such a taking is executed which provides for the
transfer of, a material portion of the Premises, including but not limited to
the taking (or transfer in lieu thereof) of any portion which would result in
the blockage or substantial impairment of access or utility service to the
Improvements or which would cause the Premises to fail to comply with any Legal
Requirement.

     (l)  Liquidation, Etc.  There occurs a liquidation, termination,
          -----------------
dissolution, merger, consolidation or failure, for a period of thirty (30) days
after written notice thereof to Mortgagor, to maintain good standing in the
State of Illinois and/or the state of incorporation or organization, if
different of Mortgagor, any owner of the Property or any person obligated to pay
any part of the secured indebtedness.

     (m)  Material, Adverse Change.  In Mortgagee's reasonable opinion, the
          ------------------------
prospect of payment of all or any part of the secured indebtedness has been
impaired because of a material, adverse change in the financial condition,
results of operations, business or properties of any owner of the Property or
any person liable for any of the secured indebtedness, or of any general partner
thereof (if such owner or other person is a partnership).

     (n)  Enforceability; Priority.  Any Loan Document shall for any reason
          ------------------------
without Mortgagee's specific written consent cease to be in full force and
effect, or shall be declared null and void or unenforceable in whole or in part,
or the validity or enforceability thereof, in whole or in part, shall be
challenged or denied by any party thereto other than Mortgagee; or the liens,

PAGE 28
<PAGE>

interests, mortgages or security interests of Mortgagee in any of the Property
become unenforceable in whole or in part, or cease to be of the priority herein
required, or the validity or enforceability thereof, in whole or in part, shall
be challenged or denied by Mortgagor or any person obligated to pay any part of
the secured indebtedness.

     (o)  Other Loan Documents.  A default or Event of Default occurs under any
          --------------------
Loan Document, other than an Event of Default under this Mortgage.

     (p)  Major Lease.  A default or Event of Default occurs under the Major
          -----------
Lease and remains uncured beyond any grace or cure period provided therein.

     Section 4.2  Notice and Cure. Mortgagee agrees, by its acceptance of this
                  ---------------
Mortgage, that notwithstanding anything to the contrary contained herein or in
any of the other Loan Documents, upon the occurrence of any default of the type
described in Subparagraphs (a), (b), (m), (n) or (o) of Section 4.1 of this
Mortgage, Mortgagee will not accelerate the maturity of the Note or the secured
indebtedness and will not exercise any of its other rights and remedies
hereunder or under the other Loan Documents until and unless Mortgagee has first
given notice of such default to Mortgagor, in the manner prescribed in Section
6.13 of this Mortgage, and Mortgagor has failed to cure such default within the
following periods of time:

     (a)  If such default is a default of the type described in Subparagraph
(a), (m), (n) or (o) of Section 4.1 of this Mortgage, Mortgagor shall have a
period of ten (10) days from and after the effective date of such notice within
which to cure such default; or

     (b)  If such default is a default of the type described in Subparagraph (b)
of Section 4.1 of this Mortgage, Mortgagor shall have a period of thirty (30)
days from and after the effective date of such notice within which to cure such
default.

     The occurrence of a default, and the failure to cure the same within any
applicable cure period if the opportunity to cure such default is afforded to
Mortgagor hereunder, shall constitute an "Event of Default" under this Mortgage.
                                          ----------------

     After the occurrence of three (3) such defaults in any consecutive twelve
(12) month period, and the giving of notice thereof by Mortgagee, Mortgagee
shall not be obligated to give to Mortgagor any further notice of default or
opportunity to cure the same. The agreements set forth in this Section 4.2 do
not and shall not be deemed to prevent or prohibit Mortgagee from withholding
any advances of the secured indebtedness, following the occurrence of a default,
until and unless such default shall have been cured.

     If Mortgagee shall fail to give such notice and right to cure to Mortgagor
as provided herein, the sole and exclusive remedy of Mortgagor for such failure
shall be to seek appropriate equitable relief to enforce the agreement to give
such notice and right to cure and to have any acceleration of the maturity of
the Note and the secured indebtedness postponed or revoked and foreclosure or
other proceedings in connection therewith delayed or terminated pending or upon
the curing of such default in the manner and during the period of time permitted
by such agreement, and Mortgagor shall have no right to damages or any other
type of relief not herein specifically set

PAGE 29
<PAGE>

out against Mortgagee, all of which damages or other relief are hereby waived by
Mortgagor. Nothing herein or in any of the other Loan Documents shall operate or
be construed to add on or make cumulative any cure or grace periods specified in
any of the Loan Documents.

                             ARTICLE 5 - Remedies
                                         --------

     Section 5.1.  Certain Remedies.  If an Event of Default shall occur,
                   ----------------
Mortgagee may (but shall have no obligation to) exercise any one or more of the
following remedies, without notice (unless notice is required by applicable
statute):

     (a)  Acceleration.  Mortgagee may at any time and from time to time declare
          ------------
any or all of the secured indebtedness immediately due and payable and such
secured indebtedness shall thereupon be immediately due and payable, without
presentment, demand, protest, notice of protest, notice of acceleration or of
intention to accelerate or any other notice or declaration of any kind, all of
which are hereby expressly waived by Mortgagor. Without limitation of the
foregoing, upon the occurrence of a default described in clauses (A), (C) or (D)
of subparagraph (i) of paragraph (d) of Section 4.1, hereof, all of the secured
indebtedness shall thereupon be immediately due and payable, without
presentment, demand, protest, notice of protest, declaration or notice of
acceleration or intention to accelerate, or any other notice, declaration or act
of any kind, all of which are hereby expressly waived by Mortgagor.

     (b)  Enforcement of Assignment of Rents.  In addition to the rights of
          ----------------------------------
Mortgagee under Article 3 hereof, prior or subsequent to taking possession of
any portion of the Property or taking any action with respect to such
possession, Mortgagee may: (1) collect and/or sue for the Rents in Mortgagee's
own name, give receipts and releases therefor, and after deducting all expenses
of collection, including attorneys' fees and expenses, apply the net proceeds
thereof to the secured indebtedness in such manner and order as Mortgagee may
elect and/or to the operation and management of the Property, including the
payment of management, brokerage and attorney's fees and expenses; and (2)
require Mortgagor to transfer all security deposits and records thereof to
Mortgagee together with original counterparts of the Leases.

     (c)  Foreclosure.  Mortgagor may foreclose the lien of this Mortgage and
          -----------
obtain possession of the Collateral, by any lawful procedures.

     (d)  Uniform Commercial Code.  Without limitation of Mortgagee's rights of
          -----------------------
enforcement with respect to the Collateral or any part thereof in accordance
with the procedures for foreclosure of real estate, Mortgagee may exercise its
rights of enforcement with respect to the Collateral or any part thereof under
the Uniform Commercial Code as adopted in the State of Illinois, as amended (or
under the Uniform Commercial Code in force in any other state to the extent the
same is applicable law) and in conjunction with, in addition to or in
substitution for those rights and remedies: (1)  Mortgagee may enter upon
Mortgagor's premises to take possession of, assemble and collect the Collateral
or, to the extent and for those items of the Collateral permitted under
applicable law, to render it unusable; (2) Mortgagee may require Mortgagor to
assemble the Collateral and make it available at a place Mortgagee designates
which is mutually convenient to allow Mortgagee to take possession or dispose of
the Collateral; (3) written notice mailed to Mortgagor as provided herein at
least five (5) days prior to the date of public sale of the Collateral

PAGE 30
<PAGE>

or prior to the date after which private sale of the Collateral will be made
shall constitute reasonable notice; (4) any sale made pursuant to the provisions
of this paragraph shall be deemed to have been a public sale conducted in a
commercially reasonable manner if held contemporaneously with and upon the same
notice as required for the sale of the Property under applicable law; (5) in the
event of a foreclosure sale, the Collateral and the other Property may, at the
option of Mortgagee, be sold as a whole; (6) it shall not be necessary that
Mortgagee take possession of the Collateral or any part thereof prior to the
time that any sale pursuant to the provisions of this Section is conducted and
it shall not be necessary that the Collateral or any part thereof be present at
the location of such sale; (7) with respect to application of proceeds of
disposition of the Collateral under Section 5.2 hereof, the costs and expenses
incident to disposition shall include the reasonable expenses of retaking,
holding, preparing for sale or lease, selling, leasing and the like and the
reasonable attorneys' fees and legal expenses incurred by Mortgagee; (8) any and
all statements of fact or other recitals made in any bill of sale or assignment
or other instrument evidencing any foreclosure sale hereunder as to nonpayment
of the secured indebtedness or as to the occurrence of any Event of Default, or
as to Mortgagee having declared all of such indebtedness to be due and payable,
or as to notice of time, place and terms of sale and of the properties to be
sold having been duly given, or as to any other act or thing having been duly
done by Mortgagee, shall be taken as prima facie evidence of the truth of the
facts so stated and recited; and (9) Mortgagee may appoint or delegate any one
or more persons as agent to perform any act or acts necessary or incident to any
sale held by Mortgagee, including the sending of notices and the conduct of the
sale, but in the name and on behalf of Mortgagee.

     (e)  Lawsuits.  Subject to the terms of Section 10 of the Note, Mortgagee
          --------
may proceed by a suit or suits in equity or at law, whether for collection of
the indebtedness secured hereby, the specific performance of any covenant or
agreement herein contained or for foreclosure hereunder or for the sale of the
Property under the judgment or decree of any court or courts of competent
jurisdiction.

     (f)  Entry on Property. Mortgagee is authorized, prior or subsequent to the
          -----------------
institution of any foreclosure proceedings, to the fullest extent permitted by
applicable law, to enter upon the Property, or any part thereof, and to take
possession of the Property and all books and records relating thereto, and to
exercise without interference from Mortgagor any and all rights which Mortgagor
has with respect to the management, possession, operation, protection or
preservation of the Property. Mortgagee shall not be deemed to have taken
possession of the Property or any part thereof except upon the exercise of its
right to do so, and then only to the extent evidenced by its demand and overt
act specifically for such purpose. All costs, expenses and liabilities of every
character incurred by Mortgagee in managing, operating, maintaining, protecting
or preserving the Property shall constitute a demand obligation of Mortgagor
(which obligation Mortgagor hereby promises to pay) to Mortgagee pursuant to
this Mortgage. If necessary to obtain the possession provided for above,
Mortgagee may invoke any and all legal remedies to dispossess Mortgagor. In
connection with any action taken by Mortgagee pursuant to this Section,
Mortgagee shall not be liable for any loss sustained by Mortgagor resulting from
any failure to let the Property or any part thereof, or from any act or omission
of Mortgagee in managing the Property unless such loss is caused by the willful
misconduct and bad faith of Mortgagee, nor shall Mortgagee be obligated to
perform or discharge any obligation, duty or liability of Mortgagor arising
under any lease or other agreement relating to the Property or arising under any
Permitted Encumbrance or otherwise

PAGE 31
<PAGE>

arising. Mortgagor hereby assents to, ratifies and confirms any and all actions
of Mortgagee with respect to the Property taken under this Section.

     (g)  Receiver.  Mortgagee shall as a matter of right be entitled to the
          --------
appointment of a receiver or receivers for all or any part of the Property,
whether such receivership be incident to a proposed sale (or sales) of such
property or otherwise, and without regard to the value of the Property or the
solvency of any person or persons liable for the payment of the indebtedness
secured hereby, and Mortgagor does hereby irrevocably consent to the appointment
of such receiver or receivers, waives notice of such appointment, of any request
therefor or hearing in connection therewith, and any and all defenses to such
appointment, agrees not to oppose any application therefor by Mortgagee, and
agrees that such appointment shall in no manner impair, prejudice or otherwise
affect the rights of Mortgagee to application of Rents as provided in this
Mortgage. Nothing herein is to be construed to deprive Mortgagee of any other
right, remedy or privilege it may have under the law to have a receiver
appointed. Any money advanced by Mortgagee in connection with any such
receivership shall be a demand obligation (which obligation Mortgagor hereby
promises to pay) owing by Mortgagor to Mortgagee pursuant to this Mortgage.

     (h)  Termination of Commitment to Lend.  Mortgagee may terminate any
          ---------------------------------
commitment or obligation to lend or disburse funds under any Loan Document.

     (i)  Other Rights and Remedies.  Mortgagee may exercise any and all other
          -------------------------
rights and remedies which Mortgagee may have under the Loan Documents, or at law
or in equity or otherwise.

     Section 5.2.  Proceeds of Foreclosure.  The proceeds of any sale held in
                   -----------------------
foreclosure of the liens and interests evidenced hereby shall be applied:
FIRST, to the payment of all necessary costs and expenses incident to such
-----
foreclosure sale, including but not limited to all reasonable and actual
attorneys' fees and legal expenses, advertising costs, auctioneer's fees, costs
of title rundowns and lien searches, inspection fees, appraisal costs, fees for
professional services, environmental assessment and remediation fees, all court
costs and charges of every character, and to the payment of the other secured
indebtedness, including specifically without limitation the principal, accrued
interest and attorneys' fees due and unpaid on the Note and the amounts due and
unpaid and owed to Mortgagee under this Mortgage, the order and manner of
application to the items in this clause FIRST to be in Mortgagee's sole
                                        -----
discretion; and SECOND, the remainder, if any there shall be, shall be paid to
                ------
Mortgagor, or to Mortgagor's heirs, devisees, representatives, successors or
assigns, or such other persons (including the holder or beneficiary of any
inferior lien) as may be entitled thereto by law; provided, however, that if
Mortgagee is uncertain which person or persons are so entitled, Mortgagee may
interplead such remainder in any court of competent jurisdiction, and the amount
of any attorneys' fees, court costs and expenses incurred in such action shall
be a part of the secured indebtedness and shall be reimbursable (without
limitation) from such remainder.

     Section 5.3.  Mortgagee as Purchaser.  Mortgagee shall have the right to
                   ----------------------
become the purchaser at any public sale, and Mortgagee shall have the right to
credit upon the amount of Mortgagee's successful bid, to the extent necessary to
satisfy such bid, all or any part of the secured indebtedness in such manner and
order as Mortgagee may elect.

PAGE 32
<PAGE>

     Section 5.4.  Remedies Cumulative.  All rights and remedies provided for
                   -------------------
herein and in any other Loan Document are cumulative of each other and of any
and all other rights and remedies existing at law or in equity, and Mortgagee
shall, in addition to the rights and remedies provided herein or in any other
Loan Document, be entitled to avail itself of all such other rights and remedies
as may now or hereafter exist at law or in equity for the collection of the
secured indebtedness and the enforcement of the covenants herein and the
foreclosure of the liens and interests evidenced hereby, and the resort to any
right or remedy provided for hereunder or under any such other Loan Document or
provided for by law or in equity shall not prevent the concurrent or subsequent
employment of any other appropriate right or rights or remedy or remedies.

     Section 5.5.  Mortgagee's Discretion as to Security.  Mortgagee may resort
                   -------------------------------------
to any security given by this Mortgage or to any other security now existing or
hereafter given to secure the payment of the secured indebtedness, in whole or
in part, and in such portions and in such order as may seem best to Mortgagee in
its sole and uncontrolled discretion, and any such action shall not in any way
be considered as a waiver of any of the rights, benefits, liens or interests
evidenced by this Mortgage.

     Section 5.6.  Mortgagor's Waiver of Certain Rights.  To the full extent
                   ------------------------------------
Mortgagor may do so, Mortgagor agrees that Mortgagor will not at any time insist
upon, plead, claim or take the benefit or advantage of any law now or hereafter
in force providing for any appraisement, valuation, stay, extension or statutory
right of redemption, and Mortgagor, for Mortgagor, Mortgagor's heirs, devisees,
representatives, successors and assigns, and for any and all persons ever
claiming any interest in the Property, to the extent permitted by applicable
law, hereby waives and releases all rights of valuation, appraisement, stay of
execution, notice of intention to mature or declare due the whole of the secured
indebtedness, notice of election to mature or declare due the whole of the
secured indebtedness and all rights to a marshaling of assets of Mortgagor,
including the Property, or to a sale in inverse order of alienation in the event
of foreclosure of the liens and/or security interests hereby created, or
statutory right of redemption. Mortgagor shall not have or assert any right
under any statute or rule of law pertaining to the marshaling of assets, sale in
inverse order of alienation, the exemption of homestead, the administration of
estates of decedents, or other matters whatever to defeat, reduce or affect the
right of Mortgagee under the terms of this Mortgage to a sale of the Property
for the collection of the secured indebtedness without any prior or different
resort for collection, or the right of Mortgagee under the terms of this
Mortgage to the payment of the secured indebtedness out of the proceeds of sale
of the Property in preference to every other claimant whatever. Mortgagor waives
any right or remedy which Mortgagor may have or be able to assert pursuant to
any provision of Illinois law, pertaining to the rights and remedies of
sureties. If any law referred to in this Section and now in force, of which
Mortgagor or Mortgagor's heirs, devisees, representatives, successors or assigns
or any other persons claiming any interest in the Property might take advantage
despite this Section, shall hereafter be repealed or cease to be in force, such
law shall not thereafter be deemed to preclude the application of this Section.

     Section 5.7.  Delivery of Possession After Foreclosure.  In the event there
                   ----------------------------------------
is a foreclosure sale hereunder and at the time of such sale, Mortgagor or
Mortgagor's heirs, devisees, representatives or successors as owners of the
Property are occupying or using the Property, or any part thereof, each and all
shall immediately become the tenant of the purchaser at such sale, which tenancy
shall be a tenancy from day to day, terminable at the will of landlord, at a
reasonable rental

PAGE 33
<PAGE>

per day based upon the value of the property occupied, such rental to be due
daily to the purchaser; and to the extent permitted by applicable law, the
purchaser at such sale shall, notwithstanding any language herein apparently to
the contrary, have the sole option to demand immediate possession following the
sale or to permit the occupants to remain as tenants at will. After such
foreclosure, any Leases to tenants or subtenants that are subject to this
Mortgage (either by their date, their express terms, or by agreement of the
tenant or subtenant) shall, at the sole option of Mortgagee or any purchaser at
such sale, either (i) continue in full force and effect, and the tenant(s) or
subtenant(s) thereunder will, upon request, attorn to and acknowledge in writing
to the purchaser or purchasers at such sale or sales as landlord thereunder, or
(ii) upon notice to such effect from Mortgagee or any purchaser or purchasers,
terminate within thirty (30) days from the date of sale. In the event the tenant
fails to surrender possession of the Property upon demand, the purchaser shall
be entitled to institute and maintain a summary action for possession of the
Property (such as an action for unlawful detainer) in any court having
jurisdiction.

                           ARTICLE 6 - Miscellaneous
                                       -------------

     Section 6.1.  Scope of Mortgage.  This Mortgage is a mortgage of real
                   -----------------
property, a security agreement, an assignment of rents and leases, a financing
statement and a collateral assignment of personal property, and also covers
proceeds and fixtures.

     Section 6.2.  Effective as a Financing Statement.  This Mortgage shall be
                   ----------------------------------
effective as a financing statement filed as a fixture filing with respect to all
fixtures included within the Property and is to be filed for record in the real
estate records of each county where any part of the Property (including said
fixtures) is situated. This Mortgage shall also be effective as a financing
statement covering minerals or the like (including oil and gas) and accounts,
subject to Subsection (5) of Section 9-103 of the Uniform Commercial Code as
adopted in the State of Illinois, as amended, and similar provisions (if any) of
the Uniform Commercial Code as enacted in any other state where the Property is
situated, resulting from the sale thereof at the wellhead or minehead of the
wells or mines located on the Property and is to be filed for record in the real
estate records of each county where any part of the Property is situated. This
Mortgage shall also be effective as a financing statement covering any other
Property and may be filed in any other appropriate filing or recording office.
The mailing address of Mortgagor and the Mortgagee are set forth in the preamble
of this Mortgage and the address of Mortgagee from which information concerning
the security interests hereunder may be obtained is the address of Mortgagee set
forth at the end of this Mortgage. A carbon, photographic or other reproduction
of this Mortgage or of any financing statement relating to this Mortgage shall
be sufficient as a financing statement for any of the purposes referred to in
this Section.

     Section 6.3.  Notice to Account Debtors.  In addition to the rights granted
                   -------------------------
elsewhere in this Mortgage, Mortgagee may at any time notify the account debtors
or obligors of any accounts, chattel paper, negotiable instruments or other
evidences of indebtedness included in the Collateral to pay Mortgagee directly.

     Section 6.4.  Waiver by Mortgagee.  Mortgagee may at any time and from time
                   -------------------
to time by a specific writing intended for the purpose: (a) waive compliance by
Mortgagor with any covenant herein made by Mortgagor to the extent and in the
manner specified in such writing; (b) consent to

PAGE 34
<PAGE>

Mortgagor's doing any act which hereunder Mortgagor is prohibited from doing, or
to Mortgagor's failing to do any act which hereunder Mortgagor is required to
do, to the extent and in the manner specified in such writing; (c) release any
part of the Property or any interest therein from the lien and security interest
of this Mortgage, or (d) release any party liable, either directly or
indirectly, for the secured indebtedness or for any covenant herein or in any
other Loan Document, without impairing or releasing the liability of any other
party. No such act shall in any way affect the rights or powers of Mortgagee
hereunder except to the extent specifically agreed to by Mortgagee in such
writing.

     Section 6.5.  No Impairment of Security.  The lien, interest and other
                   -------------------------
security rights of Mortgagee hereunder or under any other Loan Document shall
not be impaired by any indulgence, moratorium or release granted by Mortgagee
including, but not limited to, any renewal, extension or modification which
Mortgagee may grant with respect to any secured indebtedness, or any surrender,
compromise, release, renewal, extension, exchange or substitution which
Mortgagee may grant in respect of the Property, or any part thereof or any
interest therein, or any release or indulgence granted to any endorser,
guarantor or surety of any secured indebtedness. The taking of additional
security by Mortgagee shall not release or impair the lien, interest or other
security rights of Mortgagee hereunder or affect the liability of Mortgagor or
of any endorser, guarantor or surety, or improve the right of any junior
lienholder in the Property (without implying hereby Mortgagee's consent to any
junior lien).

     Section 6.6.  Acts Not Constituting Waiver by Mortgagee.  Mortgagee may
                   -----------------------------------------
waive any default or Event of Default without waiving any other prior or
subsequent default. Mortgagee may remedy any default without waiving the default
remedied. Neither failure by Mortgagee to exercise, nor delay by Mortgagee in
exercising, nor discontinuance of the exercise of any right, power or remedy
(including but not limited to the right to accelerate the maturity of the
secured indebtedness or any part thereof) upon or after any default or Event of
Default shall be construed as a waiver of such default or Event of Default or as
a waiver of the right to exercise any such right, power or remedy at a later
date. No single or partial exercise by Mortgagee of any right, power or remedy
hereunder shall exhaust the same or shall preclude any other or further exercise
thereof, and every such right, power or remedy hereunder may be exercised at any
time and from time to time. No modification or waiver of any provision hereof
nor consent to any departure by Mortgagor therefrom shall in any event be
effective unless the same shall be in writing and signed by Mortgagee and then
such waiver or consent shall be effective only in the specific instance, for the
purpose for which given and to the extent therein specified. No notice to nor
demand on Mortgagor in any case shall of itself entitle Mortgagor to any other
or further notice or demand in similar or other circumstances. Remittances in
payment of any part of the secured indebtedness other than in the required
amount in immediately available U.S. funds shall not, regardless of any receipt
or credit issued therefor, constitute payment until the required amount is
actually received by Mortgagee in immediately available U. S. funds and shall be
made and accepted subject to the condition that any check or draft may be
handled for collection in accordance with the practice of the collecting bank or
banks. Acceptance by Mortgagee of any payment in an amount less than the amount
then due on any secured indebtedness shall be deemed an acceptance on account
only and shall not in any way excuse the existence of a default hereunder.

PAGE 35
<PAGE>

     Section 6.7.  Mortgagor's Successors.  If the ownership of the Property or
                   ----------------------
any part thereof becomes vested in a person other than Mortgagor, Mortgagee may,
without notice to Mortgagor, deal with such successor or successors in interest
with reference to this Mortgage and to the indebtedness secured hereby in the
same manner as with Mortgagor, without in any way vitiating or discharging
Mortgagor's liability hereunder or for the payment of the indebtedness or
performance of the obligations secured hereby. No transfer of the Property, no
forbearance on the part of Mortgagee, and no extension of the time for the
payment of the indebtedness secured hereby given by Mortgagee shall operate to
release, discharge, modify, change or affect, in whole or in part, the liability
of Mortgagor hereunder for the payment of the indebtedness or performance of the
obligations secured hereby or the liability of any other person hereunder for
the payment of the indebtedness secured hereby. Each Mortgagor agrees that it
shall be bound by any modification of this Mortgage or any of the other Loan
Documents made by Mortgagee and any subsequent owner of the Property, with or
without notice to such Mortgagor, and no such modifications shall impair the
obligations of such Mortgagor under this Mortgage or any other Loan Document.
Nothing in this Section or elsewhere in this Mortgage shall be construed to
imply Mortgagee's consent to any transfer of the Property.

     Section 6.8.  Place of Payment; Forum.  All secured indebtedness which may
                   -----------------------
be owing hereunder at any time by Mortgagor shall be payable at the place
designated in the Note (or if no such designation is made, at the address of
Mortgagee indicated at the end of this Mortgage). Mortgagor hereby irrevocably
submits generally and unconditionally for itself and in respect of its property
to the non-exclusive jurisdiction of any Illinois state court, or any United
States federal court, sitting in the city or county in which the secured
indebtedness is payable, and to the non-exclusive jurisdiction of any state or
United States federal court sitting in the state in which any of the Property is
located, over any suit, action or proceeding arising out of or relating to this
Mortgage or the secured indebtedness. Mortgagor hereby agrees and consents that,
in addition to any methods of service of process provided for under applicable
law, all service of process in any such suit, action or proceeding in any
Illinois state court, or any United States federal court, sitting in the city or
county in which the secured indebtedness is payable may be made by certified or
registered mail, return receipt requested, directed to Mortgagor at its address
stated in this Mortgage, or at a subsequent address of Mortgagor of which
Mortgagee received actual notice from Mortgagor in accordance with this
Mortgage, and service so made shall be complete five (5) days after the same
shall have been so mailed.

     Section 6.9.  Subrogation to Existing Liens; Vendor's Lien.  To the extent
                   --------------------------------------------
that proceeds of the Note are used to pay indebtedness secured by any
outstanding lien, interest, charge or prior encumbrance against the Property,
such proceeds have been advanced by Mortgagee at Mortgagor's request, and
Mortgagee shall be subrogated to any and all rights, interests and liens owned
by any owner or holder of such outstanding liens, interests, charges or
encumbrances, however remote, irrespective of whether said liens, security
interests, charges or encumbrances are released, and all of the same are
recognized as valid and subsisting and are renewed and continued and merged
herein to secure the secured indebtedness, but the terms and provisions of this
Mortgage shall govern and control the manner and terms of enforcement of the
liens, security interests, charges and encumbrances to which Mortgagee is
subrogated hereunder. It is expressly understood that, in consideration of the
payment of such indebtedness by Mortgagee, Mortgagor hereby waives and releases
all demands and causes of action for offsets and payments in connection with the
said

PAGE 36
<PAGE>

indebtedness. If all or any portion of the proceeds of the loan evidenced by the
Note or of any other secured indebtedness has been advanced for the purpose of
paying the purchase price for all or a part of the Property, no vendor's lien is
waived; and Mortgagee shall have, and is hereby granted, a vendor's lien on the
Property as cumulative additional security for the secured indebtedness.
Mortgagee may foreclose under this Mortgage or under the vendor's lien without
waiving the other or may foreclose under both.

     Section 6.10.  Application of Payments to Certain Indebtedness.  If any
                    -----------------------------------------------
part of the secured indebtedness cannot be lawfully secured by this Mortgage or
if any part of the Property cannot be lawfully subject to the lien and interest
hereof to the full extent of such indebtedness, then all payments made shall be
applied on said indebtedness first in discharge of that portion thereof which is
not secured by this Mortgage.

     Section 6.11.  Nature of Loan:  Compliance with Usury Laws.  The loan
                    -------------------------------------------
evidenced by the Note is being made solely for the purpose of carrying on or
acquiring a business or commercial enterprise. It is the intent of Mortgagor and
Mortgagee and all other parties to the Loan Documents to conform to and contract
in strict compliance with applicable usury law from time to time in effect. All
agreements between Mortgagee and Mortgagor (or any other party liable with
respect to any indebtedness under the Loan Documents) are hereby limited by the
provisions of this Section which shall override and control all such agreements,
whether now existing or hereafter arising. In no way, nor in any event or
contingency (including but not limited to prepayment, default, demand for
payment, or acceleration of the maturity of any obligation), shall the interest
taken, reserved, contracted for, charged, chargeable, or received under this
Mortgage, the Note or any other Loan Document or otherwise, exceed the maximum
nonusurious amount permitted by applicable law (the "Maximum Amount"). If, from
                                                     --------------
any possible construction of any document, interest would otherwise be payable
in excess of the Maximum Amount, any such construction shall be subject to the
provisions of this Section and such document shall ipso facto be automatically
reformed and the interest payable shall be automatically reduced to the Maximum
Amount, without the necessity of execution of any amendment or new document. If
Mortgagee shall ever receive anything of value which is characterized as
interest under applicable law and which would apart from this provision be in
excess of the Maximum Amount, an amount equal to the amount which would have
been excessive interest shall, without penalty, be applied to the reduction of
the principal amount owing on the secured indebtedness in the inverse order of
its maturity and not to the payment of interest, or refunded to Mortgagor or the
other payor thereof if and to the extent such amount which would have been
excessive exceeds such unpaid principal. The right to accelerate maturity of the
Note or any other secured indebtedness does not include the right to accelerate
any interest which has not otherwise accrued on the date of such acceleration,
and Mortgagee does not intend to charge or receive any unearned interest in the
event of acceleration. All interest paid or agreed to be paid to Mortgagee
shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread throughout the full stated term (including any renewal or
extension) of such indebtedness so that the amount of interest on account of
such indebtedness does not exceed the Maximum Amount. As used in this Section,
the term "applicable law" shall mean the laws of the State of Illinois or the
          --------------
federal laws of the United States applicable to this transaction, whichever laws
allow the greater interest, as such laws now exist or may be changed or amended
or come into effect in the future.

PAGE 37
<PAGE>

     Section 6.12.  Cancellation of Mortgage.  If all of the secured
                    ------------------------
indebtedness be paid as the same becomes due and payable and all of the
covenants, warranties, undertakings and agreements made in this Mortgage are
kept and performed, and all obligations, if any, of Mortgagee for further
advances have been terminated, then, and in that event only, all rights under
this Mortgage shall terminate (except to the extent expressly provided herein
with respect to indemnifications, representations and warranties and other
rights which are to continue following the release hereof) and the Property
shall become wholly clear of the liens, security interests, conveyances and
assignments evidenced hereby, and this Mortgage shall be cancelled by Mortgagee
in due form at Mortgagor's cost. Without limitation, all provisions herein for
indemnity of Mortgagee shall survive discharge of the secured indebtedness and
any foreclosure, release or termination of this Mortgage.

     Section 6.13.  Notices.  All notices, requests, consents, demands and other
                    -------
communications required or which any party desires to give hereunder or under
any other Loan Document shall be in writing and, unless otherwise specifically
provided in such other Loan Document, shall be deemed sufficiently given or
furnished if delivered by personal delivery, by courier, or by registered or
certified United States mail, postage prepaid, addressed to the party to whom
directed at the addresses specified in this Mortgage (unless changed by similar
notice in writing given by the particular party whose address is to be changed)
or by telegram, telex, or facsimile. Any such notice or communication shall be
deemed to have been given either at the time of personal delivery or, in the
case of courier or mail, as of the date of first attempted delivery at the
address and in the manner provided herein, or, in the case of telex, when
transmitted (answerback confirmed), or in the case of facsimile, upon receipt.
Notwithstanding the foregoing, no notice of change of address shall be effective
except upon receipt. This Section shall not be construed in any way to affect or
impair any waiver of notice or demand provided in any Loan Document or to
require giving of notice or demand to or upon any person in any situation or for
any reason.

     Section 6.14.  Invalidity of Certain Provisions.  A determination that any
                    --------------------------------
provision of this Mortgage is unenforceable or invalid shall not affect the
enforceability or validity of any other provision and the determination that the
application of any provision of this Mortgage to any person or circumstance is
illegal or unenforceable shall not affect the enforceability or validity of such
provision as it may apply to other persons or circumstances.

     Section 6.15.  Gender; Titles; Construction; Control Over Other Documents.
                    ----------------------------------------------------------
Within this Mortgage, words of any gender shall be held and construed to include
any other gender, and words in the singular number shall be held and construed
to include the plural, unless the context otherwise requires. Titles appearing
at the beginning of any subdivisions hereof are for convenience only, do not
constitute any part of such subdivisions, and shall be disregarded in construing
the language contained in such subdivisions. The use of the words "herein,"
                                                                   ------
"hereof," "hereunder" and other similar compounds of the word "here" shall refer
-------    ---------                                           ----
to this entire Mortgage and not to any particular Article, Section, paragraph or
provision.  The term "person" and words importing persons as used in this
                      ------
Mortgage shall include firms, associations, partnerships (including limited
partnerships), joint ventures, trusts, corporations, limited liability companies
and other legal entities, including public or governmental bodies, agencies or
instrumentalities, as well as natural persons. In the event of a conflict
between the terms of this Mortgage and the terms of any of the other Loan
Documents, the terms of this Mortgage shall control.

PAGE 38
<PAGE>

     Section 6.16.  Reporting Compliance.  Mortgagor agrees to comply with any
                    --------------------
and all reporting requirements applicable to the transaction evidenced by the
Note and secured by this Mortgage which are set forth in any law, statute,
ordinance, rule, regulation, order or determination of any governmental
authority, including but not limited to The International Investment Survey Act
of 1976, The Agricultural Foreign Investment Disclosure Act of 1978, The Foreign
Investment in Real Property Tax Act of 1980 and the Tax Reform Act of 1984 and
further agrees upon request of Mortgagee to furnish Mortgagee with evidence of
such compliance.

     Section 6.17.  Mortgagee's Consent.  Except where otherwise expressly
                    -------------------
provided herein, in any instance hereunder where the approval, consent or the
exercise of judgment of Mortgagee is required or requested, (a) the granting or
denial of such approval or consent and the exercise of such judgment shall be
within the sole discretion of Mortgagee, and Mortgagee shall not, for any reason
or to any extent, be required to grant such approval or consent or exercise such
judgment in any particular manner, regardless of the reasonableness of either
the request or Mortgagee's judgment, and (b) no approval or consent of Mortgagee
shall be deemed to have been given except by a specific writing intended for the
purpose and executed by an authorized representative of Mortgagee.

     Section 6.18.  Mortgagor.  Unless the context clearly indicates otherwise,
                    ---------
as used in this Mortgage, "Mortgagor" means the mortgagors named on the first
                           ---------
page hereof or any of them.  The obligations of Mortgagor hereunder shall be
joint and several. If any Mortgagor, or any signatory who signs on behalf of any
Mortgagor, is a corporation, partnership or other legal entity, Mortgagor and
any such signatory, and the person or persons signing for it, represent and
warrant to Mortgagee that this instrument is executed, acknowledged and
delivered by Mortgagor's duly authorized representatives. If Mortgagor is an
individual, no power of attorney granted by Mortgagor herein shall terminate on
Mortgagor's disability.

     Section 6.19.  Execution; Recording.  This Mortgage has been executed in
                    --------------------
several counterparts, all of which are identical, and all of which counterparts
together shall constitute one and the same instrument. The date or dates
reflected in the acknowledgments hereto indicate the date or dates of actual
execution of this Mortgage, but such execution is as of the date shown on the
first page hereof, and for purposes of identification and reference the date of
this Mortgage shall be deemed to be the date reflected on the first page hereof.
Mortgagor will cause this Mortgage and all amendments and supplements thereto
and substitutions therefor and all financing statements and continuation
statements relating thereto to be recorded, filed, re-recorded and refiled in
such manner and in such places as Mortgagee shall reasonably request and will
pay all such recording, filing, re-recording and refiling taxes, fees and other
charges.

     Section 6.20.  Successors and Assigns.  The terms, provisions, covenants
                    ----------------------
and conditions hereof shall be binding upon Mortgagor, and the heirs, devisees,
representatives, successors and assigns of Mortgagor, and shall inure to the
benefit of Mortgagee and shall constitute covenants running with the Land. All
references in this Mortgage to Mortgagor shall be deemed to include all such
heirs, devisees, representatives, successors and assigns of Mortgagor.

PAGE 39
<PAGE>

     Section 6.21.  Modification or Termination.  The Loan Documents may only be
                    ---------------------------
modified or terminated by a written instrument or instruments intended for that
purpose and executed by the party against which enforcement of the modification
or termination is asserted.  Any alleged modification or termination which is
not so documented shall not be effective as to any party.

     Section 6.22.  No Partnership, Etc..  The relationship between Mortgagee
                    --------------------
and Mortgagor is solely that of lender and borrower. Mortgagee has no fiduciary
or other special relationship with Mortgagor. Nothing contained in the Loan
Documents is intended to create any partnership, joint venture, association or
special relationship between Mortgagor and Mortgagee or in any way make
Mortgagee a co-principal with Mortgagor with reference to the Property. All
agreed contractual duties between Mortgagee and Mortgagor are set forth herein
and in the other Loan Documents and any additional implied covenants or duties
are hereby disclaimed. Any inferences to the contrary of any of the foregoing
are hereby expressly negated.

     Section 6.23.  Applicable Law.  THIS MORTGAGE, AND ITS VALIDITY,
                    --------------
ENFORCEMENT AND INTERPRETATION, SHALL BE GOVERNED BY ILLINOIS LAW (WITHOUT
REGARD TO ANY CONFLICT OF LAWS PRINCIPLES) AND APPLICABLE UNITED STATES FEDERAL
LAW.

     Section 6.24.  Execution Under Seal.  Mortgagor agrees that this instrument
                    --------------------
is executed under seal.  The designation ("SEAL") on this instrument shall be as
effective as the affixing of the applicable corporate seal physically to this
instrument.

     Section 6.25.  Entire Agreement.  The Loan Documents constitute the entire
                    ----------------
understanding and agreement between Mortgagor and Mortgagee with respect to the
transactions arising in connection with the indebtedness secured hereby and
supersede all prior written or oral understandings and agreements between
Mortgagor and Mortgagee with respect to the matters addressed in the Loan
Documents. Mortgagor hereby acknowledges that, except as incorporated in writing
in the Loan Documents, there are not, and were not, and no persons are or were
authorized by Mortgagee to make, any representations, understandings,
stipulations, agreements or promises, oral or written, with respect to the
matters addressed in the Loan Documents.

     THE WRITTEN LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE
     --------------------------------------------------------------------
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
----------------------------------------------------------------------------
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
-----------------------------------------

     THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.
     ------------------------------------------------

                        [SIGNATURES BEGIN ON NEXT PAGE]

PAGE 40
<PAGE>

     IN WITNESS WHEREOF, Mortgagor has executed this instrument under seal as of
the date first written on page 1 hereof.

                              MORTGAGOR:

                              WELLS OPERATING PARTNERSHIP, L.P.,
                              a Delaware limited partnership

                              By:  Wells Real Estate Investment Trust, Inc.,
                                   a Maryland corporation,
                                   General Partner

                                    By: /s/ Leo F Wells
                                       --------------------------
                                    Name: Leo F. Wells, III
                                         ------------------------
                                    Title: President
                                          -----------------------

                                                 (CORPORATE SEAL)

                              The address and federal tax
                              identification number of Mortgagor are:

                              6200 The Corners Parkway, Suite 250
                              Norcross, Georgia  30092

                              Federal Tax No.  58-2368838

STATE OF GEORGIA
COUNTY OF GWINNETT

     I, the undersigned, a Notary Public in and for said County, in the State
aforesaid, DO HEREBY CERTIFY Leo F. Wells, III of WELLS REAL ESTATE INVESTMENT
TRUST, INC., a Maryland corporation, which is the General Partner of Wells
Operating Partnership, L.P., a Delaware limited partnership ("Mortgagor") and
who is personally known to me to be the same person whose name is subscribed to
the foregoing instrument, appeared before me this day in person, and
acknowledged that (s)he signed, sealed and delivered the said instrument on
behalf of Mortgagor, with full authority to do so, as the free and voluntary act
of Mortgagor, for the uses and purposes therein set forth, including the release
and waiver of the right of homestead.

     Given under my hand and official seal, this 18/th/ day of February, 2000.

                                    /s/ Judith Ann Miller
                                    ----------------------------------
                                    Notary Public
                [SEAL]              My commission expires: 4-21-2003

PAGE 41
<PAGE>

                                  EXHIBIT "A"
                                  -----------

                               LEGAL DESCRIPTION

PARCEL 1:

Lot 3 in CHANCELLORY BUSINESS PARK RESUBDIVISION NO. 4, being a resubdivision in
Section 4, Township 40 North, Range 11 East of the Third Principal Meridian,
according to the Plat thereof recorded August 23, 1990 as Document Number R90-
109454, in DuPage County, Illinois.

PARCEL 2:

Non-Exclusive Easement for Ingress and Egress over the northerly 15 feet of Lot
2 in CHANCELLORY BUSINESS PARK RESUBDIVISION NO. 5, being a resubdivision in
Section 4, Township 40 North, Range 11 East of the Third Principal Meridian,
according to the Plat thereof recorded July 21, 1991 as Document Number R91-
091695, in DuPage County, Illinois.

PARCEL 3:

Non-Exclusive Easement for Underground Storm Sewers over portions of Lot 2 in
CHANCELLORY BUSINESS PARK RESUBDIVISION NO. 5, being a resubdivision in Section
4, Township 40 North, Range 11 East of the Third Principal Meridian, according
to the Plat thereof recorded July 21, 1991 as Document Number 91-091695, in
DuPage County, Illinois, created by Easement Agreement dated December 17, 1991
and recorded December 20, 1991 as Document Number R91-171523.

<PAGE>

                                  EXHIBIT "B"
                                  -----------

                                 Encumbrances

1.   General taxes for the year 1999 and subsequent years, which constitute a
     lien, but which are not yet due and payable.

2.   Declaration of Easements, Restrictions and Covenants made April 27, 1984 by
     LaSalle National Bank, as Trustee under a Trust Agreement dated July 20,
     1979 and known as Trust Number 101444, recorded July 30, 1984 as Document
     R84-59903, as amended from time to time, and the terms and provisions
     thereof.

3.   Plat of Chancellory Business Park Resubdivision No. 4, recorded August 23,
     1990 as Document Number R90-109454, discloses the following:

     (a)  Easement for public utilities over the easterly 25 feet of Parcel 1;

     (b)  Easement for ingress and egress over the south 15 feet and 15 feet
          along the most west easterly line of Parcel 1; and

     (c)  35 feet building line along the easterly line of the land.

4.   Terms, conditions and provisions of the document creating the easements
     described in Exhibit "A", together with the rights of the adjoining owners
     in and to the concurrent use of said easement.

5.   Water main as per plans as delineated on survey by Jacob & Hefner
     Associates, P.C., dated August 14, 1998, Order No. B640, and revised June
     2, 1999.

6.   Illinois Department of Transportation Floodway Limits as shown on the plat
     of Chancellory Business Park Resubdivision No. 5, recorded as Document
     Number R91-91695 (affects underlying portions of Parcel 3 as delineated on
     said plat).<PAGE>

                                                                          Page 1

[LOGO]

                                                                   Exhibit 10.20
              STRATEGIC ALLIANCE PLUS AGREEMENT WITH SCIQUEST.COM

================================================================================
Sec. Item                     Terms

1    Strategic Alliance       SciQuest.com ("SciQuest") provides comprehensive
     Overview                 electronic marketplace services for buyers and
                              sellers of scientific and laboratory products.
                              SciQuest is forming a Strategic Alliance
                              ("Strategic Alliance" or "Alliance") with certain
                              qualifying suppliers of scientific products
                              ("Partners" or "Alliance Plus Partners"). Partners
                              receive significant benefits not available to non-
                              Alliance suppliers including but not limited to:
                              preferred positioning in buyers' search results,
                              reduced commission fees, certain e-marketing
                              services and other such services as described in
                              this Strategic Alliance Agreement. Partners that
                              enter into a Strategic Alliance Plus Agreement no
                              later than October 20, 1999 with respect to
                              becoming an Alliance Plus Partner will receive
                              warrants to purchase equity ownership in SciQuest
                              as defined herein.

2    Strategic Alliance       Partnership in the Strategic Alliance will be
     Partnership              limited to those suppliers who have annualized
     Qualifications           global revenues derived from products that will be
                              made available for sale in SciQuest's electronic
                              marketplace of approximately $50 million based on
                              the supplier's most recent calendar quarter's
                              revenues, or hold a first or second market share
                              position in at least one product category, as such
                              product category is defined by SciQuest. SciQuest
                              reserves the right to determine which companies
                              shall be invited to participate in the Strategic
                              Alliance.

3    Definition of            "Electronic Marketplace Services" means providing
     Electronic               one or more of the following services:
     Marketplace
     Services                      (i)   electronic selling and marketing
                                   (ii)  electronic order processing, billing
                                         and collection
                                   (iii) electronic buyer and supplier customer
                                         service
                                   (iv)  electronic product data conversion,
                                         management and distribution
                                   (v)   buyer and supplier systems integration
                                   (vi)  purchasing reports and electronic data
                                         mining
                                   (vii) supplier-specific electronic commerce
                                         storefronts

                              where the transaction occurs over the internet
                              using a browser, or using an extranet or intranet,
                              or by using any system in which the particular
                              electronic marketplace service is transmitted via
                              electronic means, and does not include traditional
                              order processing services (mail, voice telephone,
                              facsimile).

4    Nature of                A. Sole Provider.  Subject to the termination and
     Preferred                conversion provisions of section 16 below, the
     Relationship             Alliance Plus Partner agrees to and does hereby
                              appoint SciQuest as its sole third party provider
                              of Electronic Marketplace Services (defined below)
                              for the Term; provided however that:

                                   (i)   orders received directly by the Partner
                                         from customers or distributors through
                                         regular e-mail or electronic data
                                         interchange,
                                   (ii)  orders received by Partner directly
                                         from a customer or distributor where
                                         the order is transmitted by traditional
                                         order processing (mail, facsimile or
                                         voice telephone); and
                                   (iii) operation and order processing by the
                                         Partner using its own electronic
                                         commerce web site not enabled by
                                         SciQuest

                              shall not be considered Electronic Marketplace
                              Services for purposes of this section.

                              B. Protection of Partner-Customer Existing
                              Relationships. If a customer of Partner requests
<PAGE>

                                                                          Page 2

================================================================================
Sec. Item                     Terms

                              in writing that Partner make use of an Electronic
                              Marketplace Service other than SciQuest, then the
                              following provisions apply:

                                   (i)   Protection of Partner existing
                              relationships: (a) if on the effective date of
                              this Agreement, to the extent that Partner has an
                              existing relationship with a third party
                              Electronic Marketplace Service provider other than
                              SciQuest, Partner may continue to provide product
                              data and information to such provider, and to
                              permit such provider to derive revenue from
                              Partner product data and information which acts
                              shall not be a breach of this Agreement; and (b)
                              Partner may, in its discretion, request SciQuest
                              to provide Electronic Marketplace Services to
                              coordinate with its existing Electronic
                              Marketplace Service providers in order to
                              eliminate Partner's need to interact with multiple
                              Electronic Marketplace Service providers. The
                              foregoing notwithstanding, during the Term
                              described on Exhibit B, the Partner shall not
                              expand its relationship with such third party
                              Electronic Marketplace Service provider with
                              respect to additional customers, or provide
                              product data and information in the future that is
                              not provided as of the effective date of this
                              Agreement with respect to the additional
                              customers.

                                          (ii)  Protection of Partner new
                              customer Electronic Marketplace Services: Partner
                              shall use its commercially reasonable efforts to
                              encourage the customer to use SciQuest Electronic
                              Marketplace Services. If the customer does not
                              elect to use SciQuest Electronic Marketplace
                              Services to directly place orders and otherwise
                              transact electronic business with Partner and
                              Partner can demonstrate that its inability to work
                              with the customer's other Electronic Marketplace
                              Service provider will result in a material adverse
                              affect on the business relationship with its
                              customer, then the parties agree to negotiate in
                              good faith to find a solution reasonably
                              acceptable to Partner. Partner shall not enter
                              into any agreements of any kind with the
                              customer's alternative Electronic Marketplace
                              Service provider that would permit the alternative
                              Electronic Marketplace Service provider to derive
                              revenue from the use of Partner product data or
                              information.

                              C.  Migration to SciQuest. Partner shall make best
                              commercial efforts to migrate to the SciQuest
                              Electronic Marketplace Services as follows:

                                   (i)   Non-cancelable written agreement. If
                                         --------------------------------
                              the Partner has an existing written agreement with
                              another third party provider of Electronic
                              Marketplace Services that conflicts with the
                              Partner's obligations under section 4., and if the
                              agreement with the other provider is for a term
                              and is non-cancelable except upon a breach, then:
                              (a) the Partner shall advise SciQuest in writing
                              of the non-cancelable agreement including the
                              general terms of the relationship between the
                              parties; and (b) the Partner may continue to
                              perform the agreement.

                                   (ii)  Migration generally. The Partner shall
                                         -------------------
                              take all reasonable acts to cause a migration to
                              SciQuest's Electronic Marketplace Services as soon
                              as the Partner is reasonably able to do so under
                              the circumstances.

                                   (iii) No adverse effect. SciQuest is
                                         -----------------
                              committed to facilitate transactions between the
                              Partner and its customers and to increase
                              efficiency for each party; therefore, in no event
                              shall Partner be required to migrate to SciQuest's
                              Electronic Marketplace Services where such
                              migration will have a material adverse affect on
                              its relationship with a customer.

5    Partner's own            Partner shall use its best efforts to begin using
     purchases                the SciQuest Electronic Marketplace Services in
                              accordance with the guidelines set forth in
                              Exhibit E at the earliest practicable time and to
                              the fullest extent possible; however, Partner may
                              continue to purchase products using existing
                              methods to conform to current manufacturing,
                              quality control and/or regulatory standards and/or
                              Partner's contracts with suppliers.
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6    Foreign Markets          SciQuest currently provides Electronic Marketplace
                              Services in the United States (the "Territory").
                              SciQuest intends, directly and through
                              subsidiaries to be formed, to expand its services
                              to other geographic areas of the world outside the
                              Territory (hereafter the "Foreign Market").

                                   (i)   SciQuest shall keep Partner reasonably
                              apprised of its plans to expand directly and
                              indirectly into Foreign Markets.

                                   (ii)  To the extent that Partner is using
                              Electronic Marketplace Services in a particular
                              Foreign Market as of the date of this Agreement
                              other than through SciQuest or its subsidiary,
                              Partner shall inform SciQuest in writing and
                              SciQuest may, within one hundred twenty days of
                              being so advised, propose to Partner that it or
                              its subsidiary assume the provision of such
                              services. To the extent not (a) in conflict with
                              Partner's contractual obligations to any third
                              party, (b) violative of any of the laws of the US
                              or the relevant Foreign Market and (c) having
                              adverse tax consequences to Partner, when
                              SciQuest's services become available, Partner
                              shall contract with SciQuest or its subsidiary on
                              business terms no less favorable than those on
                              which Partner is presently using Electronic
                              Marketplace Services to provide SciQuest's
                              Electronic Marketplace Services or, at the
                              election of Partner, to provide Electronic
                              Marketplace Services of SciQuest's subsidiary. If
                              the Partner and SciQuest are unable to reach an
                              agreement, Partner shall not enter an agreement
                              with the foreign Electronic Marketplace Services
                              that would prevent SciQuest from providing
                              Electronic Marketplace Services to Partner in the
                              Foreign Market in the future.

                                   (iii) To the extent that Partner decides in
                              the future to use Electronic Marketplace Services
                              in a particular Foreign Market in which SciQuest
                              or its subsidiary does not offer Electronic
                              Marketplace Services and to the extent not in
                              conflict with Partner's contractual obligations to
                              any third party, Partner shall offer to SciQuest
                              or its pertinent subsidiary the opportunity to
                              establish the Electronic Marketplace Services for
                              Partner in the particular Foreign Market. If
                              Partner and SciQuest (or a subsidiary of
                              SciQuest), acting in good faith cannot reach
                              agreement on the terms of the provision of such
                              services within a reasonable period of time, or if
                              Partner's contractual obligations with third
                              parties preclude Partner from using SciQuest as
                              the provider in the particular Foreign Market,
                              then Partner may use Electronic Marketplace
                              Services provided by itself or by another and such
                              will not be a breach of this Agreement; provided
                              however, that Partner shall not enter into an
                              agreement with another Electronic Marketplace
                              Service provider on terms more favorable than the
                              Partner offered to SciQuest.

                                   (iv)  To the extent that Partner decides in
                              the future to use Electronic Marketplace Services
                              in a particular Foreign Market in which SciQuest
                              or its subsidiary offers Electronic Marketplace
                              Services and to the extent not (a) in material
                              conflict with Partner's business plans or
                              contractual obligations to any third party, (b)
                              violative of any of the laws of the US or the
                              relevant Foreign Market and (c) having adverse tax
                              consequences to Partner, Partner and SciQuest
                              shall negotiate mutually agreeable terms to use
                              SciQuest's Electronic Marketplace Services or, at
                              the election of Partner, to use Electronic
                              Marketplace Services of SciQuest's subsidiary.

7    Equity Incentives        SciQuest agrees to issue a warrant (the "Warrant")
                              to Alliance Plus Partners that enter into a
                              Strategic Alliance Agreement with SciQuest on or
                              before October 20, 1999. Alliance Plus Partners
                              will be issued warrants to acquire shares of
                              SciQuest common stock ("Warrant Shares") based on
                              Revenue Potential as described in Exhibit A.
                              Subject to Exhibit A each Alliance Plus Partner
                              will be issued Warrant Shares based on its pro-
                              rata contribution to Revenue Potential among all
                              Alliance Plus suppliers entering into a Strategic
                              Alliance Plus Agreement on or before October 20,
                              1999. Warrants that have been earned shall be
                              issued on the earlier of the business day
                              following the closing of the initial public
                              offering of the
<PAGE>

                                                                          Page 4

================================================================================
Sec. Item                     Terms

                              Company's common stock ("IPO") or December 31,
                              1999 (the "Issuance Date"). Warrants shall vest as
                              follows: 25% as of the eighteen month anniversary
                              of the Issuance Date, 25% as of the second annual
                              anniversary of the Issuance Date, 25% as of the
                              third annual anniversary of the Issuance Date, and
                              25% as of the fourth annual anniversary of the
                              Issuance Date. Warrants shall terminate
                              automatically upon termination of the Strategic
                              Alliance Agreement, and in any event, shall
                              terminate ten (10) years from issuance. The
                              exercise price and other terms of the Warrant
                              shall be as set forth in Exhibit A. This section
                              shall be subject to the terms of the Warrant
                              issued by SciQuest to Partner.

8    Commissions              Partners agree to pay SciQuest a
                              commission/discount on all sales (excluding
                              shipping, handling, taxes and other special fees)
                              ordered through the SciQuest electronic channel
                              and any SciQuest enabled Partner storefront per
                              Exhibit B. SciQuest shall not earn commissions on
                              sales by Partner described in section 4.A.(i)-
                              (iii).

9    Preferred                SciQuest agrees to provide Partners with preferred
     Positioning in           positioning in search results as described in
     Buyer's Search           Exhibit C such that Partners' products are
     Results                  differentiated from non-Partners' products on
                              search results pages.

10   E-commerce               At the request of a Partner and as part of its
     Storefront               service, SciQuest shall provide Partners a co-
                              branded e-commerce storefront so that customers
                              are able to conduct electronic commerce directly
                              with the Partner. Such sales shall be considered
                              to have been provided through SciQuest, because
                              SciQuest will be providing the Electronic
                              Marketplace Services through which the order will
                              traverse. 'The e-commerce storefront for Alliance
                              Plus Partners will be developed and maintained
                              free of charge by SciQuest. As part of the
                              Electronic Marketplace Services provided to
                              Partner, SciQuest shall provide Partner the full
                              range of electronic catalog e-commerce
                              functionality and services currently available on
                              its public and private web sites, which includes
                              the provision of a reasonable number of customer
                              specific pricing storefronts, and a reasonable
                              frequency and number of updates of customer
                              specific pricing for no additional fee.'

11   SciQuest Core            SciQuest's core services are those as described
     Services                 in Exhibit D.

12   Board of                 Alliance Plus Partners shall have the opportunity
     Governors                to participate in the election of 4 of 7 members
                              of the Alliance Board of Governors. The purpose of
                              the Alliance Board of Governors is to advise
                              SciQuest senior management and to recommend
                              additional value added services for development,
                              and changes to policies and procedures of benefit
                              to the Partners and customers.

13   Partner                  Partner agrees to promote SciQuest's Electronic
     Co-marketing             Marketplace Services so as to maximize positive
     Support                  publicity and accelerate buyer adoption of the
                              SciQuest electronic marketplace. This includes,
                              but is not limited to, mutually agreed co-
                              marketing, co-selling and advertising programs, an
                              exclusive and prominent SciQuest logo on the
                              Partner's web site, inclusion of the SciQuest logo
                              on Partner's other marketing materials and direct
                              mail announcements to Partner's customer list. In
                              addition, the Partner agrees to enable SciQuest to
                              initiate mutually agreed upon co-marketing
                              programs utilizing the Partner's current customer
                              mailing list, and electronic mail list, if
                              available.

14   Product Pricing          Partner agrees to establish competitive pricing
                              and sales terms through SciQuest such that
                              customers of products of the Partner will not be
                              disadvantaged by purchasing through
<PAGE>

                                                                          Page 5

================================================================================
Sec. Item                     Terms

                              SciQuest as opposed to purchasing directly through
                              the Alliance Partner's web site, through any
                              permitted means of Electronic Marketplace
                              Services, or through traditional purchasing
                              channels. This covenant of competitive pricing
                              extends to all customers, including by example and
                              not limitation, customers with negotiated price
                              agreements (i.e. the customer who has privately
                              negotiated pricing or terms with the Partner shall
                              not be disadvantaged by buying through SciQuest).
                              Upon SciQuest's reasonable prior written request,
                              but no more often than annually, Partner shall
                              provide certification of its compliance with this
                              provision.

15   Payment Terms            SciQuest agrees to pay the Partner as follows: Net
                              30 days for purchases of Partner products. At
                              Partner's option, Partner may provide a prompt
                              payment discount. Partner may charge twelve
                              percent (12%) simple interest on payments not made
                              within 30 days that are not reasonably in dispute
                              by SciQuest.

16   Term and                 A.  Term. The term of the Strategic Alliance shall
     Termination              be that as described in Exhibit B.

                              B.  Partner conversion to non-exclusive
                              arrangement. Partner may convert this Agreement to
                              a non-exclusive arrangement pursuant to the
                              Addendum or at any time after eighteen (18) months
                              have elapsed from the first date that SciQuest
                              provides Electronic Marketplace Services to or for
                              the benefit of the Partner (the "Preferred
                              Provider Period"). If the Partner seeks to convert
                              this Agreement to a non-exclusive Agreement under
                              this paragraph, it shall provide written notice of
                              such election not less than 120 days prior to the
                              date upon which it commences use of another
                              Electronic Marketplace Service (in the absence of
                              which all of the terms of this agreement shall
                              remain in effect through the remainder of the
                              term). If Partner makes the election to a non
                              exclusive arrangement under this paragraph, then
                              Partner may at any time after eighteen (18) months
                              from the effective date of such election,
                              terminate this entire Agreement without cause,
                              upon not less than 120 days prior written notice
                              to SciQuest.

                              C.  Upon a conversion under section 16.B. or the
                              Addendum, all warrants that have not vested or
                              that remain un-exercised on the effective date of
                              the notice of conversion shall automatically
                              terminate and be of no further force, and
                              Partner's commission rate shall convert to the
                              rate charged as provided in Exhibit B. In such
                              event, all other provisions of this Agreement
                              except for section 4. Shall continue in force
                              during the remainder of the term of this Agreement
                              following such conversion, and Partner shall
                              continue to offer its goods and services through
                              SciQuest with the same or substantially similar
                              pricing, functionality, system integration,
                              product data information, customer service,
                              fulfillment service and other operational service
                              levels so as not to disadvantage SciQuest in
                              respect to the Partner's other Electronic
                              Marketplace Service providers.

                              D.  Renewal. This agreement shall renew per
                              Exhibit B unless written notice is given to the
                              other party not less than 120 days before the
                              anniversary date.

                              E.  Termination for cause. Either party may
                              terminate this Agreement for cause upon thirty
                              (30) days written notice to the other party.
                              "Cause" shall mean any of the following:

                                   (i).  Failure by the non-terminating party to
                              timely fulfill any obligation of that party as
                              contained in this Agreement, unless the non-
                              terminating party shall correct, within the notice
                              period and to the reasonable satisfaction of the
                              terminating party, the action or omission
                              constituting the cause, in which event the notice
                              of termination shall be without effect.

                                   (ii). Filing by the non-terminating party or
                              any other person or entity in any forum of notice
                              of bankruptcy of the non-terminating party.
<PAGE>

                                                                          Page 6

================================================================================
Sec. Item                     Terms

                                   (iii).  Reorganization of the non-terminating
                              party for the benefit of creditors or other
                              similar proceeding or action.

                                   (iv).   Admission in writing of insolvency by
                              the non-terminating party.

                                   (v).    Transfer of ownership of 50% or more
                              of the outstanding voting equity in the non-
                              terminating party to any direct competitor of the
                              terminating party.

                              F.  Effect of Breach by Partner. If, after
                              consideration of any applicable notice and cure
                              period, the Partner is in breach of this Agreement
                              the Partner shall forfeit all Warrants, whether
                              vested or not, and shall be liable (subject to the
                              provisions of section 27) for the damages suffered
                              by SciQuest as a result of such breach.

                              G.  If substantially all of Partner's assets (or
                              majority control of its voting stock) are acquired
                              by a third party in an arm's length transaction,
                              the acquiror may terminate this Agreement without
                              cause at any time after expiration of the
                              Preferred Provider Period, upon not less than 120
                              days prior written notice to SciQuest. In the
                              event that an acquiror makes the election to
                              terminate under this paragraph, all unexpired
                              and/or unexercised warrants shall automatically
                              terminate and be of no further force or effect as
                              of the effective date of such notice.

                              H.  Upon termination or expiration of this
                              Agreement, SciQuest shall remove all Partner
                              product data and other Partner information from
                              its web sites, and upon reasonable request, shall
                              return Partner specific information to Partner.

17   Product Data             Partner shall promptly provide SciQuest with all
                              available rich product data for products
                              designated by Partner (in no event less than
                              product data available on its own web site), in no
                              event later than 30 days after the date of
                              execution of this Agreement. Partner shall also
                              promptly provide to SciQuest all updated and
                              current changes and modifications in Partner's
                              rich product data. Rich product data includes, by
                              example and not limitation, textual and image
                              data, pricing and all other information reasonably
                              related to such products that is available to
                              Partner. With respect to new product
                              introductions, the terms of section 19 apply.
                              SciQuest agrees to not make available Partner
                              specific product data to other parties (unless
                              required by law or valid subpoena).

18   Purchaser Data           A.  Full and complete data and information related
                              to sales of Partner's designated products bought
                              through SciQuest Electronic Marketplace Services
                              shall be provided by SciQuest to Partner at the
                              point of sale during the Term; provided however,
                              that SciQuest may redact information from
                              customers that is subject to a non-disclosure
                              obligation or for which the customer has requested
                              such information not be disclosed. SciQuest will
                              provide Partner with demographic, transactional,
                              and trend information in detail and summary
                              formats concerning customers and purchasers
                              ordering the Partner's products through SciQuest
                              to the same level and quality of information as
                              Partner presently receives from its own channel
                              and from other channels. With respect to new
                              product introductions, the terms of section 19
                              apply. SciQuest agrees to not make available
                              Partner specific purchaser data to other parties
                              (unless required by law or valid subpoena).

19   New product              Partner shall decide the manner and means of new
     introductions            product introductions; provided however, that if
                              Partner determines to offer a new product via any
                              electronic channel or Electronic Marketplace
                              Service (including on its own website), Partner
                              shall promptly provide SciQuest at the earliest
                              time possible all rich product data (as set forth
                              in section 17 above) relating to the new product
                              offering, and Partner shall insure that SciQuest
                              is not disadvantaged in
<PAGE>

                                                                          Page 7

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Sec. Item                     Terms

                              respect of the timing, nature or content of such
                              product introduction via an Electronic Marketplace
                              Service.

20   Sales Force              Partner agrees that it will treat sales through
     Incentive                SciQuest equal to direct sales for the purpose of
     Alignment                calculating commissions for its sales force and
                              will not institute sales commission schedules for
                              its direct sales force, or other management
                              incentive programs that discourage or in any
                              manner provide disincentives to its direct sales
                              force, other personnel or management from fully
                              supporting and promoting the Strategic Alliance.

21   Implementation           To provide a smooth and expeditious implementation
                              of the SciQuest Electronic Marketplace Services,
                              SciQuest agrees to provide Partner with an
                              Implementation Consultant ("IC") over a mutually
                              agreed time period. The IC will establish a team-
                              based structure comprising representatives from
                              Partner and SciQuest. The Partner will appoint a
                              project leader to facilitate implementation.
                              During the implementation phase of this agreement,
                              the Board of Governors and SciQuest will mutually
                              agree within a commercially reasonable period not
                              to exceed 120 days of the execution of this
                              agreement on objective, definable performance
                              criteria for SciQuest, including by way of
                              example, system up-time, order processing
                              response, integration with electronic data
                              interchange processes, system performance and
                              speed, and other objective criteria, determined to
                              the parties mutual reasonable satisfaction. These
                              criteria shall be used to determine whether
                              SciQuest is performing as required by this
                              Agreement. If the parties cannot agree on
                              objective and commercially reasonable performance
                              criteria for SciQuest, either party may request
                              that an independent third party electronic
                              commerce expert be appointed. If the parties
                              cannot agree on the expert, each party shall
                              select a representative who is not an employee of
                              the party, and the two representatives shall then
                              appoint the expert. The parties shall pay the
                              reasonable costs, expenses and fees of the expert
                              equally. The determination by the expert of the
                              objective, commercially reasonable performance
                              criteria shall be final.

22   Ordering &               A.   SciQuest has established contracts with all
     Shipping                 major carriers at advantageous rates. Under these
                              arrangements, suppliers would normally ship
                              SciQuest orders to buyers using these SciQuest's
                              designated carriers and charging the SciQuest
                              carrier's account number. SciQuest will, however,
                              allow Partner to use its own shipping carriers.

                              B.   SciQuest will order products from the Partner
                              using a method and format agreed on by both
                              parties. No purchase order will be binding on the
                              Partner until the Partner accepts the order. By
                              accepting an order, the Partner agrees to ship the
                              products and comply with the terms of the order.

                              C.   The Partner will ship the products directly
                              to the customer or to the location designated by
                              SciQuest. Product title and risk of loss will pass
                              to SciQuest FOB shipping point. SciQuest will
                              provide the Partner with an order number
                              ("SciQuest Order Number"), shipping carrier data
                              and all other necessary order information
                              ("Shipping Information").

                              D.   Upon shipment, the Partner will notify
                              SciQuest promptly of the SciQuest Order Number and
                              its bill of lading number or carrier tracking
                              number.

                              E.   The Partner will be solely responsible for
                              obtaining and maintaining all licenses, permits
                              and other approvals required to sell and ship the
                              products, unless SciQuest is otherwise required by
                              law to obtain or maintain such licenses, permits
                              and/or approvals.

                              F.   When applicable, the Partner will include
                              with the products: Material Safety Data Sheets (as
                              required by 29 CFR 1910.1200), the Partner's
                              standard warnings about product use and all other
                              information required by law. The Partner will pack
                              and ship products only
<PAGE>

                                                                          Page 8

================================================================================
Sec. Item                     Terms

                              to authorized purchasers and end-users at
                              authorized locations according to all applicable
                              laws and regulations.

                              G.   Refunds and Returns. All product refunds and
                              returns will be governed by the Partner's existing
                              policies and procedures, which the Partner will
                              provide to SciQuest. The Partner will refund to
                              SciQuest any payments for authorized returned
                              products less any reasonable restocking fees
                              within thirty (30) days after receiving the
                              returned products.

                              H.   Insurance. The Partner will maintain adequate
                              product liability and general liability business
                              insurance, will maintain the insurance throughout
                              the term of this Agreement and Partner shall use
                              its best efforts to include SciQuest on its
                              blanket vendor insurance coverage.

23   Electronic               SciQuest considers its electronic commerce system
     Marketplace              to be a mission critical application, and takes
     Performance              commercially reasonable efforts to maintain
                              maximum system up-time, up-to-date database
                              indexes, disaster recovery, battery backup,
                              redundant servers, and proper load balancing, and
                              to maintain, in light of currently available and
                              in-use technology, the highest quality performing
                              system that can reasonably be provided.

24   Computer Security        SciQuest agrees to use its best commercial efforts
                              in light of reasonably available technology to
                              maintain the data and information provided by the
                              Partner secure from unauthorized access; provided
                              however, that the Partner acknowledges that
                              despite such best efforts, no data made available
                              on a public network can be secured from all
                              unauthorized access. SciQuest agrees to notify the
                              Partner if it becomes aware of any material
                              unauthorized access to the Partner's data, to
                              cooperate with the Partner in recovery of such
                              information, and to itself take reasonable
                              measures to recover the materials that were
                              accessed without authority. If an unauthorized
                              access is discovered, SciQuest agrees to take
                              prompt actions to protect the system in light of
                              reasonably available technology, to minimize the
                              possibility of such event occurring in the future.

                              Further, SciQuest adheres to a very strict
                              security policy and procedures both internally and
                              externally. Some of these policies include regular
                              scans and reviews of both our internal and
                              external systems for possible breaches in
                              security. SciQuest also regularly reviews reports
                              from CERT (Computer Emergency Response Team) and
                              other sources. From a web perspective, SciQuest
                              uses encryption via SSL (Secure Socket Layer) to
                              provide our customers with a secure connection.

25   Confidentiality;         A.   The parties may disclose to each other
     No employee                   information that is confidential and
     Raid                          proprietary, which may include by way of
                                   example and not limitation: ideas, concepts,
                                   accounting information, customer lists,
                                   supplier lists, data, research knowledge,
                                   compositions, marketing plans, trademark
                                   information, financial information,
                                   competitive analysis, customer
                                   communications, information obtained from
                                   other persons under agreements to keep such
                                   information confidential, trade secrets as
                                   defined under applicable law, and other
                                   internal secret and proprietary information
                                   (the "Proprietary Information"). Proprietary
                                   Information shall not include: (i)
                                   information in the possession of the
                                   recipient before the date of this Agreement
                                   (and recipient shall bear the burden of
                                   proving this fact); (ii) information that
                                   comes into the possession of recipient from a
                                   source other than the other party, even if
                                   the same information was previously
                                   transmitted, or is subsequently transmitted;
                                   (iii) information that is or has become
                                   publicly available in a manner other than by
                                   a breach of this Agreement or by a
                                   misappropriation of trade secret within the
                                   meaning of the Uniform Trade Secrets Act.

                              B.   The recipient of Proprietary Information will
                                   take all reasonable precautions necessary to
                                   ensure the confidentiality of the Proprietary
                                   Information, including, without limitation,
<PAGE>

                                                                          Page 9

================================================================================
Sec. Item                     Terms

                                   taking at least the following actions: (i)
                                   Permitting access to the Proprietary
                                   Information only to employees who have a need
                                   to know of or use the Proprietary
                                   Information; (ii) Maintaining Proprietary
                                   Information in a secured location when the
                                   same is not in use; (iii) Implementing
                                   guidelines for employee's use and access to
                                   the Proprietary Information that protect the
                                   Proprietary Information from being disclosed,
                                   intentionally, or inadvertently, to any
                                   person who is not under an express or implied
                                   contractual obligation not to disclose or
                                   disseminate the information; (iv) Copying
                                   Proprietary Information only when reasonably
                                   necessary, and when making electronic
                                   reproductions (including incorporation into
                                   memos or other internal documents),
                                   maintaining reasonable electronic security
                                   over access to such electronically or other
                                   mechanically stored documents that contain,
                                   refer or relate to the Proprietary
                                   Information; and (v) Implementing such other
                                   practices as may be reasonably requested by
                                   SciQuest or Partner, or which may reasonably
                                   be required to comply with the terms of this
                                   Agreement.

                              C.   The recipient of Proprietary Information will
                                   only use such information for purposes of
                                   performing this Agreement, and for no other
                                   purpose. In addition, SciQuest agrees that it
                                   will not distribute or in any manner share
                                   Partner specific data, except as authorized
                                   by Partner in writing.

                              D.   Neither party will solicit or hire the
                                   other's employees while they are employed
                                   with a party, without first notifying the
                                   other party in writing of their desire to
                                   hire such employee, and negotiating with the
                                   party to determine the conditions under which
                                   such employee may be hired.

26   Intellectual             Neither party shall have any right, title or
     Property Rights          interest in the other's services or data as a
                              result of this Agreement, except as expressly
                              provided herein. Neither party shall use the
                              other's trademarks or service marks except as
                              provided for in this Agreement or as otherwise
                              expressly agreed to in writing, which consent
                              shall not be unreasonably withheld if such use is
                              reasonably necessary to carry out the purposes of
                              this Agreement. Each party retains all of its
                              intellectual property rights which are not hereby
                              assigned, transferred, or licensed to the other
                              unless otherwise expressly set forth in writing in
                              this Agreement or in a later agreement signed by
                              both parties. During the term of this Agreement,
                              Partner grants SciQuest a royalty-free, non-
                              exclusive, worldwide, limited license to use,
                              copy, reproduce and distribute material from the
                              product data, the Partner's name, logo and
                              stylized form, and other applicable trademarks or
                              service marks relating to its products
                              (collectively, "Marks"). This license will be used
                              only for the marketing, promotion or sale of
                              products through the Electronic Marketplace,
                              according to any written specifications provided
                              by Partner and mutually agreed on by both parties.
                              Partner represents and warrants that: (i) it owns
                              the entire right, title and interest in and to all
                              its product data or has obtained sufficient rights
                              to grant the licenses described above, and (ii) no
                              product data infringes or will infringe any
                              intellectual or proprietary rights of any third
                              party, including any copyright, patent, trade
                              secret or trademark rights. SciQuest will retain
                              all copyrights and other proprietary rights to all
                              aspects of the Electronic Marketplace.

27   Representations          A.   Each party represents and warrants to the
     and Warranties           other that: (i) the person signing below has
                              actual authority to bind their principal in this
                              transaction; and (ii) the execution and
                              performance of this Agreement does not violate or
                              cause a default in any agreement to which the
                              party so signing is bound. EXCEPT FOR THE EXPRESS
                              WARRANTIES SET OUT IN THIS AGREEMENT, NEITHER
                              PARTY MAKES ANY OTHER WARRANTY OF ANY KIND, AND
                              EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES TO THE
                              FULLEST EXTENT PERMITTED BY LAW, INCLUDING WITHOUT
                              LIMITATION THE IMPLIED WARRANTIES OF
                              MERCHANTABILITY OR FITNESS FOR A PARTICULAR
                              PURPOSE.
<PAGE>

                                                                         Page 10

================================================================================
Sec. Item                     Terms

                              B.   Partner and SciQuest warrant that they have
                              evaluated and taken reasonable steps to ensure
                              that their computer operating systems' hardware
                              and software for information processing (i.e. in
                              SciQuest's case, its Electronic Marketplace
                              Services), manufacturing, sales and distribution
                              systems, communications, buildings and plant
                              facilities, support services, and other critical
                              applications (the "Systems") are Year 2000
                              Compliant. Partner warrants that Partner's
                              products are Year 2000 Compliant.

                                   (i).  In this Agreement, "Year 2000
                              Compliant" means that the Systems or products can
                              accurately process, provide and/or receive date
                              data between the 20th and 21st centuries,
                              including the years 1999 and 2000, and leap year
                              calculations. The Partner warrants that it has
                              contacted its critical partners and service
                              providers regarding their Year 2000 readiness and
                              that it has received assurances from them that its
                              business operations will not be substantially
                              affected by their failure to be Year 2000 ready.
                                   (ii). The parties agree to provide each other
                              with their current Year 2000 compliance plan or
                              readiness statement upon reasonable request.

                              C.   The Partner warrants that: (i) SciQuest will
                              receive free and clear title to the products; (ii)
                              the products are free of security interests and
                              other liens and encumbrances, (iii) (a) the sale
                              by SciQuest of the Partner's products for their
                              intended purpose, and (b) the use by SciQuest of
                              product information and data provided by Partner
                              in accordance with the terms of this Agreement,
                              will not violate any copyright, patent, trade
                              secret, trademark or other proprietary right of
                              any third party recognized in the Territory (or in
                              the Foreign Market if applicable); and (iv) that
                              the sales information in respect of SKU numbers
                              for products identified in Appendix A to Exhibit A
                              are true and correct.

                              D.   The Partner acknowledges that SciQuest will
                              offer the products to Customers and agrees that
                              all warranties for the products will be passed
                              through to Customers.

28   Limitation of            A.   Except in the case of a claim of Indemnity
     Remedy                   under section 29, neither party shall be liable to
                              the other for any economic, consequential,
                              indirect, incidental, special or exemplary loss or
                              damage, whether arising under tort, contract or
                              any other legal theory, and regardless of whether
                              a party foresaw such damages.

                              B.   Except for a claim for unpaid invoices for
                              purchased products or for unpaid commissions, both
                              parties aggregate and total liability hereunder
                              shall be limited to proved pecuniary loss not to
                              exceed the total amount of commissions earned by
                              SciQuest with respect to such partner in the
                              preceding 12-month period, provided however that
                              this limitation shall not apply to a proven claim
                              that the other party engaged in gross negligence
                              or intentional misconduct.

                              C.   In the case of a claim for defective product
                              where the receiving party did not engage in misuse
                              or negligent handling or storage, the aggrieved
                              party's sole remedy shall be repair or replacement
                              of the product. If the product was defective upon
                              receipt, or if the shipment was not conforming to
                              the order and the entire lot is rejected, the
                              party shipping the goods shall be liable for all
                              shipping costs.

29   Indemnity and            Except for damages, injury or expense suffered as
     Insurance                a result of a party's own negligent or intentional
                              act or omission, each party (the "Indemnifying
                              Party") agrees to defend, indemnify and hold
                              harmless the other party, and its agents,
                              employees, officers, directors and other persons
                              acting on its behalf (the "Indemnified Party")
                              from all damages, losses, expenses (including
                              attorneys' fees) or other claims of a third-party
                              that arise from or are related to any violation of
                              Federal or State laws by the indemnifying party
                              and any breach of warranty set forth in section
                              27; provided that in the case of a claim of breach
                              of section 27.A(i), the party
<PAGE>

                                                                         Page 11

================================================================================
Sec. Item                     Terms

                              claimed to be in default shall have a reasonable
                              opportunity to cure the breach by obtaining a
                              license, removing the objectionable material, or
                              otherwise curing the infringement prior to being
                              obligated to provide indemnification. Both parties
                              agree to maintain in force reasonable commercial
                              general liability insurance, including coverage
                              for business risk and contract liability, which
                              would cover anticipated claims under this
                              provision, and upon request, will cooperate in
                              recognizing the other party as an additional
                              insured, if the transaction or matter reasonably
                              requires such confirmation. SciQuest agrees to use
                              its best efforts to include Partner on its blanket
                              vendor insurance coverage.

30   Publicity                The parties shall make press releases or other
                              statements to the public concerning the nature of
                              this relationship with the consent of the other
                              party, which consent shall not be unreasonably
                              withheld. All links, disclosures and
                              representations concerning the nature of this
                              relationship, whether presented in a press release
                              or on a website or otherwise, shall be approved by
                              the parties before dissemination or public
                              display, except that SciQuest shall be permitted
                              to disclose such information as may be required to
                              be disclosed in its registration statement filed
                              in connection with its initial public offering.

31   Most Favored             If, prior to the earlier of the date Partner makes
     Terms                    an election to become non-exclusive, or the end of
                              the Term, and provided Partner is not then in
                              default, SciQuest enters into a written agreement
                              with a person or company other than a party that
                              became an Alliance Plus Partner under this
                              Agreement under the same program as offered herein
                              and with a similar revenue potential, and if such
                              agreement contains in the aggregate more favorable
                              terms and conditions than this Agreement, then the
                              net effect of the more favorable terms and
                              conditions of the subsequent Agreement shall be
                              automatically incorporated herein. SciQuest shall
                              provide reasonable notice to the Partner
                              concerning any execution of an agreement that
                              would trigger the provisions of this section.

32   Miscellaneous and        A.   This Agreement shall be binding upon and
     Legal                    inure to the benefit of the parties hereto and
                              their respective successors and assigns.

                              B.   This Agreement, including the Exhibits
                              attached hereto, and together with the Warrant and
                              Addendum are the final, complete, entire and
                              exclusive statement of the agreement between the
                              parties concerning the subject matter hereof and
                              may not be amended except by the written agreement
                              of the parties. In the event of any conflict
                              between this Agreement and any Exhibit, this
                              Agreement shall control. In the event of any
                              conflict between this Agreement and the Warrant or
                              the Addendum, the Warrant/Addendum shall control.

                              C.   No waiver of any right or consent to any
                              breach hereunder shall be effective unless made in
                              writing and signed by the party claimed to have
                              waived or consented. No waiver of any right or
                              consent to any breach shall constitute a waiver of
                              any other right or consent to any other breach.

                              D.   The validity of this Agreement, the
                              construction of its terms, and the interpretation
                              of the rights and duties of the parties hereto
                              shall be governed by and construed in accordance
                              with the substantive laws of the State of Delaware
                              and without reference to laws relating to
                              conflicts of law. Disputes involving money damages
                              shall be arbitrated under American Arbitration
                              Association Rules for Commercial Arbitration, in
                              Raleigh, North Carolina. A claim for equitable
                              relief shall not be limited to arbitration, and
                              may be brought by either party against the other
                              only in the defendant's forum state where it's
                              principal place of business is located.

                              E.   The captions of clauses throughout this
                              Agreement are for convenience only and are not
                              material with respect to interpretation of this
                              Agreement.
<PAGE>

                                                                         Page 12

================================================================================
Sec. Item                     Terms

                              F.   Any notice required or allowed under this
                              Agreement shall be deemed properly given upon
                              actual delivery, if delivery is by hand, upon
                              receipt by the transmitting party of confirmation
                              or answer back, if delivery is by telex, telegram,
                              facsimile, or electronic mail, or upon delivery
                              into the regular mail, postage prepaid by
                              registered or certified return receipt-requested
                              to the parties at the following addresses:

                              If to SciQuest:
                              P.O. Box 121156 Research Triangle Park, NC 27709
                              ATTENTION: Chief Financial Officer
                              FAX:       919.659.2195

                              If to the Alliance Plus Partner:
                              ___________________________
                              ATTENTION: ____________________
                              FAX:  (___) ___-____

                              or at such other address as the parties may
                              designate by notice given pursuant to this clause.

                              G.   This Agreement may be executed in duplicate
                              original counterparts, and facsimile signatures
                              shall be deemed originals. If any portion of this
                              Agreement is held to be unenforceable, said
                              portion shall be severed from this Agreement, the
                              remainder of which shall continue in effect.

                              H.   Notwithstanding the use of the term
                              "partner", the parties do not intend to establish
                              a partnership, and the relationship of the parties
                              is that of independent contractors, and no agency,
                              employment, joint venture/partnership, or any
                              other fiduciary relationship is created by this
                              Agreement.

                              I.   The sections of this Agreement that address
                              confidentiality, warranties, and indemnification
                              and other provisions to the extent the context
                              requires, shall survive termination or expiration
                              of this Agreement.

                              J.   In no event shall either party be liable to
                              the other party (except for the payment of money
                              which obligation is not subject to this section)
                              for any delay or failure to perform hereunder,
                              which delay or failure to perform is due to acts
                              of God, acts of the public enemy, acts of the
                              United States of America, or any State, territory
                              or political subdivision thereof or of the
                              District of Columbia, acts of other governments,
                              fires, storms, floods, epidemics, quarantine
                              restrictions, work stoppages, strikes, failures or
                              delays in transportation or communication,
                              failures or substitutions of equipment, accidents
                              and similar occurrences. Notwithstanding the
                              foregoing, in every case the delay or failure to
                              perform must be without the material fault or
                              negligence of the non-performing party.

     WHEREFORE the parties intending to create a binding agreement, set their
     hands and seals:

ALLIANCE PLUS PARTNER                        SCIQUEST.COM, INC.

<PAGE>

                                                                         Page 13

     ________________________________(SEAL)  _____________________________(SEAL)

     By: __________________________          By: __________________________

     Date: __ / __ / ___                     Date: __ / __ / ___
<PAGE>

                                                                         Page 14

                                   EXHIBIT A
                               EQUITY INCENTIVES
                          FOR ALLIANCE PLUS PARTNERS

A.   SciQuest has established a total available pool of Warrant Shares in the
     amount of up to 20% of the total outstanding capital stock of SciQuest (on
     a fully diluted basis) existing as of October 20, 1999 (the "Warrant
     Pool").

B.   Warrants shall be earned as follows:

     1.   If the Total Revenue Potential (defined below) is less than
          $500,000,000, no warrants shall be earned. If the Total Revenue
          Potential is equal to or greater than $500,000,000 but less than
          $1,400,000,000, then the size of the Warrant Pool shall be calculated
          by multiplying the Total Revenue Potential divided by $100,000,000
          times 1.4286%. If the Total Revenue Potential is equal to or greater
          than $1,400,000,000, then the size of the Warrant Pool shall be 20%.
          The number of Warrants earned by a particular Partner shall be
          calculated, in all cases, by multiplying (i) the percentage of the
          Total Revenue Potential such Partner's Revenue Potential represents by
          (ii) the total number of Warrants available in the Warrant Pool. In no
          event shall the entire Warrant Pool exceed 20% of the total
          outstanding capital stock of SciQuest (on a fully diluted basis).

     2.   The aggregate total annualized Revenue Potential from all Partners
          that are committed prior to October 20, 1999 (the "Total Revenue
          Potential") shall be determined as soon as reasonably possible after
          October 20, 1999.

     3.   In this Exhibit, "Revenue Potential", with respect to any particular
          Partner, means the annualized total global revenue derived from sales
          of products that are predominantly sold by the Partner in the United
          States direct to the customer (i.e. not using traditional distribution
          channels) and which are to be made available for sale on the SciQuest
          e-channel, based upon the most recent fiscal quarter of such Partner,
          calculated as though the Partner in question was using the SciQuest
          system for 100% of its order processing for those products. For
          example, if Partner A designates 1000 SKU's for sale on the SciQuest
          system, which products resulted in world-wide sales of $12.5 million
          in the most recently completed fiscal quarter, then such Partner's
          Revenue Potential shall be $50 million. Any product whose unit price
          exceeds $30,000 shall not be eligible for inclusion in the Revenue
          Potential for a Partner. A list of the SKU's of such products shall be
          attached and incorporated as an Appendix to this Exhibit.

     Example 1: Ten (10) Partners having a Total Revenue Potential of
     $1,200,000,000 execute the Agreement before October 20, 1999. Assume that
     10,000,000 shares of SciQuest's capital stock are outstanding. Using the
     above formula, the calculation would be: $1,200,000,000/$100,000,000 x
     1.4286% 17.1432%, or a Warrant Pool of 1,714,320 shares.

     Example 2: Fifteen (15) Partners having a Total Revenue Potential of
     $2,450,000,000 execute the Agreement before October 20, 1999. Assume that
     10,000,000 shares of SciQuest's capital stock are outstanding. The Warrant
     Pool would equal 20% of the total outstanding capital stock of SciQuest, or
     2,000,000 shares.

C.   Warrants that have been earned shall be issued on the earlier of the
     business day following the closing of the initial public offering of the
     Company's common stock ("IPO") or December 31, 1999.

D.   Warrants shall vest as follows: 25% as of the eighteen month anniversary of
     the Issuance Date, 25% as of the second annual anniversary of the Issuance
     Date, 25% as of the third annual anniversary of the Issuance Date, and 25%
     as of the fourth annual anniversary of the Issuance Date. Warrants may be
     exercised only to the extent that such Warrant is vested. If a Partner
     converts its relationship with the Company to a non-exclusive relationship
     pursuant to the terms of the Agreement for any reason or otherwise breaches
     this agreement, then upon such conversion or breach, all unexercised
     warrants, whether vested or unvested, held by such Partner shall
     immediately terminate and be of no further force or effect. The exercise
     price of the Warrants shall be equal to $.01 per share.
<PAGE>

                                                                         Page 15

E.   If requested by the Company's underwriters in connection with the Company's
     IPO, any Partner receiving Warrants agrees to enter into a lockup agreement
     identical to that entered into by the Company's directors, officers and
     shareholders.

F.   SciQuest (or its designated professionals) shall be entitled, upon
     reasonable advance written notice, to inspect the books and records of
     Partner to determine the accuracy of the determination of the Revenue
     Potential in this Exhibit.  Partner shall maintain books and records in
     accordance with good accounting practices and provide all information
     reasonably requested  by SciQuest to perform the audit.  If a dispute
     arises concerning the calculation of the Revenue Potential, the provisions
     of the Alliance Agreement concerning dispute resolution shall be
     applicable.
<PAGE>

                                                                         Page 16

                                   EXHIBIT B
                             COMMISSIONS and TERM

1.  SciQuest Commission/Discount Rate/*/

<TABLE>
               ------------------------------------------------------------------------------------
               Year                         1        2        3        4         5        Term
               <S>                          <C>      <C>      <C>      <C>       <C>      <C>
               Alliance Plus Partner        [++]     [++]     [++]     [++]      [++]     5 years
               ------------------------------------------------------------------------------------
</TABLE>

/*/ Applies to those products on the listing of SKU numbers set forth on the
appendix to Exhibit A and for SKUs subsequently added for new standard catalog
items but does not apply to Auction Sales, to LabDeals, and to other products
that are dynamically configured or custom priced products for which separate
Electronic Marketplace Services may be utilized.

2.  Strategic Alliance Term

 .   For Alliance Plus Partners - right to renew for another 5 years after the
    initial Term [++++++] SciQuest Commission

3.  Effect of Non-Exclusivity Election on Commission/Discount Rate

 .   The SciQuest Commission/Discount rate shall increase by [++++++] per the
    schedule in Section 1 above, however, the maximum Commission/Discount Rate:
    (i) shall not exceed [++++++] in the eighteen month period immediately after
    the conversion to non-exclusive; and (ii) thereafter shall not exceed
    [++++++] during the remainder of the Term.
<PAGE>

                                                                         Page 17

                                   EXHIBIT C
                PREFERRED POSITIONING IN BUYERS' SEARCH RESULTS

SciQuest agrees to provide Partners with preferred positioning in search results
such that Partners' products are differentiated from other suppliers' products
on search results pages.

Criteria for determining preferred positioning include the supplier's status
(Partner/non-Partner) and the supplier's market share position within a product
category based upon independent market research information.

     SciQuest Public Sites

Priority preferred positioning will be given to suppliers in the following order
provided that each is one of the top three market share leaders in a product
category:

1. Alliance Plus Partners
2. Other Suppliers

Note: The date of execution of the Strategic Alliance Agreement between the
Partner and SciQuest will determine the prioritization within the Alliance Plus
group.

In the future, SciQuest will use customer preference to order search results
with respect to each product within each product category to determine preferred
positioning for Partner's products, subject to review by the Board of Governors.
Further, SciQuest will not include a price per unit comparison as a default
design and any changes to this particular design aspect will be subject to a
review by the Board of Governors.

     SciQuest Private Sites

In those instances where SciQuest has provided certain customers with a private
site, SciQuest will deliver the site with the Preferred Positioning described
above as the default. However, the private site customer reserves the right to
determine supplier positioning on search results pages.

SciQuest will, however, make commercially reasonable efforts to include Partner
products on such private sites.
<PAGE>

                                                                         Page 18

                                   EXHIBIT D
                     SCIQUEST CORE SERVICES FOR CUSTOMERS

SciQuest is building an electronic marketplace rich in information content that
will be the dominant electronic commerce channel for scientists and purchasers
of scientific and laboratory products. Our goal is to create the best purchase
experience for the customer. SciQuest offers extensive electronic marketplace
services for customers.  The following charts provide examples of current and
planned system functions, but do not constitute guaranteed functionality.  All
Electronic Marketplace Services shall be determined in the discretion of
SciQuest subject to its obligations in the Alliance Agreement:

Pre-purchasing environment
--------------------------------------------------------------------------------

 .  Provide e-catalog rendering of listed product information (e.g., cXML, OBI,
   BizTalk, CBL, EDI, etc.) to provide consistent customer presentation.

 .  Incorporate product information into proprietary taxonomy from Cold Spring
   Harbor Laboratory with UN/SPSC coding to facilitate efficient, accurate
   product selection.

 .  Provide advanced, extremely fast search capability by supplier name, brand
   name, product name, category, text based product description, or part number
   to improve the customer satisfaction in electronic product location.

 .  Utilize an integrated "shopping cart" that inputs all necessary information
   automatically onto a buyer's electronic purchase order to reduce purchase
   time and eliminate transcription errors.

 .  Display product availability and the estimated time for delivery (if this
   functionality is available from supplier) to provide the customer with
   improved inventory management capabilities.

 .  Offer different payment options: procurement card, credit card, or purchase
   order to meet customers payment preferences.

 .  List past purchases and favorite products which provides the ability to
   seamlessly select products for re-purchase.

 .  Identify market leaders within a product category.

 .  "Ask Joe" rapid response technical support manned by personnel including
   staff Ph.D. to assist in product and protocol identification and
   implementation.

 .  Provide links for in-depth product descriptions and documentation (e.g., MSDS
   sheets, protocols, and references) to improve the customer's product
   selection process.
--------------------------------------------------------------------------------

Purchasing transaction
--------------------------------------------------------------------------------
 .  Order taking (SKU, volume, unit price, delivery date, location, terms, etc.).

 .  Reporting product availability (link to suppliers' inventory control system
   where available).

 .  Credit checking.

 .  Centralized order processing through a single site.

 .  Order acknowledgment and tracking.

 .  Consolidated billing.

 .  Returns.

 .  Customer service (non-technical) provided by SciQuest Customer Care to
   address purchasing procedure questions, order expediting, and to facilitate
   communication with supplier
--------------------------------------------------------------------------------
<PAGE>

                                                                         Page 19

Post-purchasing environment
--------------------------------------------------------------------------------
 .  Send periodic targeted information about Alliance Partners' products based on
   purchase history.

 .  Share testimonials from buyers about products to assist customers in keeping
   abreast of product offerings and associated performance.

 .  Provide links for in-depth product descriptions and documentation (e.g., MSDS
   sheets, protocols, and references) to improve customers product use
   experience.

 .  Utilize purchase data from SciQuest Auctions to recommend complementary
   accessories and consumables.
--------------------------------------------------------------------------------
<PAGE>

                                                                         Page 20

                     SCIQUEST CORE SERVICES FOR SUPPLIERS

SciQuest provides comprehensive electronic marketplace services for its Alliance
Partners to cost effectively market and sell their products to customers. These
services provide significant benefits to the Alliance Partner in terms of higher
brand visibility, increased sales, improved operating efficiency, and enhanced
customer satisfaction.  The following charts provide examples of current and
planned system functions, but do not constitute guaranteed functionality.  All
Electronic Marketplace Services shall be determined in the discretion of
SciQuest subject to its obligations in the Alliance Agreement:

Pre-purchasing environment
--------------------------------------------------------------------------------
 .  Provide a "state of the art" e-commerce storefront for product search,
   selection, and ordering.

 .  Provide preferential display of Alliance Partner products in search results.

 .  Provide co-marketing programs to accelerate new product adoption such as
   announcements when predecessor products are selected, e-mail to targeted
   users, new product announcements in content sections of the SciQuest site,
   prominent placement in the SciQuest Featured Products section, and joint
   marketing programs with complementary product suppliers.

 .  Access to SciQuest Auctions and SciQuest LabDeals sites for efficient
   inventory management by offering a channel for used, excess and obsolete
   product inventory.

 .  E-catalog data manipulation and warehousing services including an on-line
   content maintenance system and publishing platform to distribute data to
   Partner's sales channels.

 .  Classification of products using proprietary taxonomy from Cold Spring Harbor
   Laboratory with UN/SPSC coding to ensure accurate product identification in
   customer search environments.

 .  Data sorting and categorization using proprietary, advanced, extremely fast
   search capability by supplier name, brand name, product name, category,
   description or part number. Search engine allows truncated, partial matching,
   and wild card matching product identification by the customer.

 .  Seamless integration of product selection and order generation to eliminate
   transcription errors and improve customer satisfaction.

 .  Payment options to meet customer purchasing preferences.

 .  Purchase history and favorite product designations to provide the ability to
   select products for re-purchase using a single mouse click to increase
   customer retention and increase customer order size.

 .  Provide links for in-depth product descriptions and documentation (e.g., MSDS
   sheets, protocols) assuring customer receives current product information.
--------------------------------------------------------------------------------
<PAGE>

                                                                         Page 21
Purchasing transaction
--------------------------------------------------------------------------------
 .  Process customer orders (SKU, volume, unit price, delivery date, location,
   terms, etc.).

 .  Integrate with order entry and inventory management systems to provide the
   customer with product availability (NOT quantity on hand) and the estimated
   time for delivery if available from supplier.

 .  Eliminate Credit risk.

 .  Transmit orders electronically.

 .  Assume order acknowledgment and tracking responsibility and communication
   with customer.

 .  Assume credit card transaction costs.

 .  Manage the integration of the Alliance Partner into the SciQuest system by
   utilizing a SciQuest Integration Consultant.

 .  SciQuest Supplier Care provides support for purchasing procedure and business
   integration.

 .  Provide customer transaction data (no disintermediation).

 .  Automatic integration with ERP/ORMS legacy software vendors (e.g., Ariba,
   Oracle SAP, PeopleSoft, Lawson, AMS, A.G. Edwards, CommerceOne, etc.).
--------------------------------------------------------------------------------

Post-purchasing environment
--------------------------------------------------------------------------------
 .  Distribute periodic statements detailing purchase information including sales
   demographics, transactions, and trends in detail and summary formats for
   customers and purchasers.

 .  Communicate feedback from buyers about Alliance Partners' products.

 .  Provide appropriate technical data to the buyer to support product use.
--------------------------------------------------------------------------------
<PAGE>

                                                                         Page 22

                                   EXHIBIT E
                           PREFERRED RELATIONSHIP -
                            BUYING THROUGH SCIQUEST

Partner agrees to make its best and commercially feasible efforts to purchase
laboratory and scientific products used in its businesses through SciQuest in
accordance with the following guidelines:

1.  SciQuest will provide the Partner with functionality equal to that offered
to its best customers including, but not limited to:

    . private intranet site
    . access to the entire SciQuest offering
    . robust measurement and metrics package
    . supplier diversity reports
    . customer-specific pricing based on pre-negotiated pricing between Partner
      and its contracted suppliers
    . user defined search results order
    . system upgrades provided at no cost to Partner

2.  SciQuest agrees to not charge the Partner for developing its private site or
for its use of the procurement solution.

3.  Partner agrees to make its best efforts to use SciQuest's procurement system
unless a) the supplier of choice for the Partner is not available through
SciQuest, and SciQuest is unable or refuses after written notice of such
situation, to provide the supplier's products through its channel; or b)
SciQuest's pricing to Partner is higher than offered by another vendor in a
bona-fide arm's length transaction under similar circumstances, and SciQuest is
unable or refuses after written notice of such situation, to reduce its prices
to meet competition.

4.  Partner agrees to pay SciQuest invoices Net 30 days.

5.  SciQuest will provide an Implementation Consultant to assist in defining
requirements and implement the procurement solution including end user training.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]